Singapore Developer of Alzheimer's Drug Plans U.S. IPO

KUALA LUMPUR, Malaysia—A Singaporean company focused on developing treatments for Alzheimer's disease has invited banks to pitch for a mandate to advise it on a potential public offering after results come in from late-stage clinical drug trials, expected in the middle of 2016.

The owners of TauRx Pharmaceuticals Ltd., which counts Singapore state investment company Temasek and Southeast Asia's largest casino operator, Genting, as investors, are looking at listing on the Nasdaq Stock Market as early as 2017 in a deal that could value the company at about $15 billion, according to people familiar with the matter.

A spokesperson for TauRx said the company was holding exploratory discussions with a number of investment banks. The talks have focused primarily on identifying likely options available to the group, one of which could be an IPO in 2017, the spokesperson said, adding that no decision would be made until the results of its Alzheimer's drug trials were available. The company didn't say how much it was seeking to raise in a possible IPO.

Development of Alzheimer's treatments has proven difficult. Between 2002 and 2012, 99.6% of clinical trials of drugs aimed at curing and preventing the memory-robbing disorder have failed or have been discontinued, according to a study by scientists at the Cleveland Clinic Lou Ruvo Center for Brain Health and the Touro University Nevada College of Osteopathic Medicine. This compares with a failure rate of 81% for cancer drugs.

Founded in 2002, TauRx specializes in developing therapies and diagnostics for neurodegenerative diseases of the central nervous system. TauRx's researchers are working on cutting down the clumping of a protein called tau—which forms twisted fibers known as tangles inside the brain cells of Alzheimer's patients. Research elsewhere has targeted a different protein, beta amyloid, which forms sticky plaques in the brains of sufferers.

Proceeds from the IPO will be used in part to fund the continued development of the tau-protein focused treatment, the people familiar with the matter said.

An IPO would provide an avenue for shareholders to exit their investment in TauRx. The firm has raised $350 million to date from the likes of Temasek, the Development Bank of Singapore and the Dundee Corp. of Canada, according to its official website. Genting, a Malaysian casino-to-plantations conglomerate, is the largest shareholder with a total exposure of $120 million.

(END) Dow Jones Newswires

December 31, 2015 02:55 ET (07:55 GMT)

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