KUALA LUMPUR (Oct 7): Genting Bhd's share price jumped as much as 18 sen or 4% to RM4.69 on Friday morning (Oct 7), after the company's 20.33%-owned associate TauRx Pharmaceuticals Ltd said a day ago it plans to submit its Alzheimer’s drug for regulatory approvals in the US and Canada next year.

At 11.23am, Genting had pared its gains at RM4.50, with about 12.25 million securities traded. At RM4.50, Genting had a market capitalisation of RM17.41 billion.

Maybank Investment Bank Research in a note on Friday maintained its “buy” call on the stock, with a target price (TP) of RM5.25, pending TauRx's analyst briefing on the same day.

The research house said if TauRx is worth US$15 billion (RM69.75 billion), then Genting shares could be worth much more at RM8.57 each.

“According to TauRx, hydromethylthionine mesylate (HMTM) is effective, safe and cheaper than its competitors.

“HMTM’s slowing of cognitive and functional decline is about three times greater over 18 months as compared to placebos or untreated patients. 

“In our view, this is significant as no drug has slowed down Alzheimer’s markedly before, let alone cure better than its competitors.

“We also understand that TauRx told its shareholders in a meeting that HMTM is more effective than Eisai-Biogen’s ‘aducanumab’ and ‘lecanemab’, and Eli Lilly’s ‘donanemab’," it added.

PublicInvest Research, meanwhile, maintained its “outperform” call on Genting, with an unchanged TP at RM5.70, saying this is a positive milestone for eventual commercialisation of the drug in late 2023.

Genting has invested US$111.8 million in TauRx.

The group narrowed its net loss for the first half ended June 30, 2022 to RM259.2 million, from RM895.3 million a year earlier, as revenue jumped to RM9.9 billion from RM5.2 billion.