Cennerv Pharma withdraws IPO plans

Singapore

WEAK demand for its shares has forced drug development firm Cennerv Pharmaceuticals to withdraw its application for an initial public offering (IPO), the company said last week.

The Singapore-based firm had lodged a draft prospectus for a listing on the Catalist board of the Singapore Exchange on March 6.

Chief executive officer Anil Ratty told shareholders in a statement: "The grave step of withdrawing the offer document was taken after much consideration, particularly after taking into account all the possible options.

"The insufficient demand for placement shares at a suitable price meant that this IPO at a low price in the Singapore capital market would have adversely affected all future fundraising in the market, a very critical step envisaged for ongoing growth in the post IPO period."

Dr Ratty told The Business Times on Wednesday that he is still eyeing an IPO, but in other markets.

Cennerv has been struggling with its IPO since September last year, when it first lodged a draft prospectus for a listing. It re-lodged its prospectus again in March with updated financials.

Cennerv is developing products to treat disorders such as insomnia, dementia, schizophrenia and autism.

Its two leading drugs are Phase 2 candidates, with one to treat insomnia and the other to regulate mood, cognition and behaviour.

Phase 2 trials test whether a drug is effective for the problem it is meant to treat. Typically, only about a third of Phase 2 drugs will eventually make it to Phase 3.

The firm's other three products are in the pre-clinical phase. Cennerv has yet to monetise any of its drug candidates.