KUALA LUMPUR (June 21): Genting Bhd (KL:GENTING) hopes its 20% associate TauRx Pharmaceuticals Ltd’s treatment to combat Alzheimer's disease will receive approval soon from the authorities, including the US Food and Drug Administration (FDA), which had reportedly delayed its decision on the drug twice.

Genting chairman and chief executive Tan Sri Lim Kok Thay said it is part of the group’s commitment to introduce the drug to those who need it at an affordable price.

“We will definitely try to make it more cost-effective and more affordable to as many people as possible,” Lim said at a press conference on Thursday after unveiling Genting’s investment plans worth RM4.94 billion in energy ventures.

Meanwhile, Genting president and chief operating officer Datuk Seri Tan Kong Han said the process of acquiring approval for the drug approval is moving fast.

“We are quite ahead with MHRA (the Medicines and Healthcare products Regulatory Agency in the UK). With the FDA — which is [currently waiting] for their feedback. So the process is ongoing,” Tan said.

In March, the FDA delayed its decision on Eli Lilly’s early-stage Alzheimer’s drug. This marked the second delay by the FDA after it declined to grant accelerated approval for the medicine a year ago, Reuters reported.

Also in March, Singapore-based TauRx said new data showed that its trial drug to combat Alzheimer's disease has “sustained benefits” across the disease spectrum from early to moderate dementia.

After the news, Genting’s shares climbed to RM5.20, its highest in four years. The share price rally also came after Maybank Investment Bank Research said its target price for Genting could be revised upward to RM9.40 under the blue sky scenario, where TauRx’s drug is approved and the pharmaceutical company is valued at US$15 billion (RM70.23 billion).

Meanwhile, trading in Genting's shares was suspended from 4.20pm on Thursday pending the announcement. Its trading will resume at 9am Fridayits filing with Bursa Malaysia showed.

Genting was last traded at RM4.69, down one sen or 0.21%, giving the group a market capitalisation of RM18.18 billion.

Read also:
Uncertainties persist amid optimism over Genting's Alzheimer's drug trial result
Genting's 20%-owned TauRx says new data on Alzheimer's drug show sustained benefits
Genting-backed TauRx to seek regulatory approval for Alzheimer's drug