SINGAPORE (Sept 21): Cennerv Pharmaceuticals on Wednesday lodged its preliminary prospectus ahead of its planned initial public offering (IPO) on the SGX Catalist board.

Cennerv is a Singapore-based pharmaceutical developer specialising in treatments for central nervous system (CNS) disorders with a focus on depression, insomnia, dementia, schizophrenia and autism.

The company intends to use a portion of its proceeds from the exercise to acquire a further 13 million units of Gemeni Therapeutics LLC, a US-based drug development company, for US$200,000 ($272, 700).

Details of the impending IPO, including the total number of shares to be offered under the placement and the issue price, have yet to be announced.

The company had earlier agreed to acquire 2 million units of Gemeni for US$20,000 in Feb this year.

Upon the acquisition of all 15 million units of Gemeni, Cennerv will own a 60% stake in the company, through which it intends to develop non-CNS assets in the US to diversify its current pipeline of CNS drug candidates.

According to the Cennerv’s preliminary offer document, its business model is to identify promising compounds that have shown efficacy in humans suffering from CNS disorders, or in relevant animal models of these particular disorders, from robust patent positions.

Cennerv intends to develop these compounds through to human Phase 2 clinical trials to prove efficacy in patients, before seeking to license out to bigger, more resource-rich pharma partners with the aim of bringing the compounds to the global markets.

As the company is in the midst of engaging in the development of its drug candidates, it has yet to monetise these drug candidates and therefore has no revenue generated from its loss-making financial periods spanning FY15 to 1Q18. 

Cennerv says that it however expects to eventually generate revenue from the eventual sale of drugs or licensing agreements, where it may earn upfront and milestone fees or market royalties.

“As our current portfolio of five drug candidates are at various stages of development, we believe that our drug candidates offer potential upfront licensing revenue when we sign such agreements for our more advanced drug candidates and our pre-clinical drug candidates may provide subsequent growth opportunities after further research and development,” said Cennerv in its product highlights sheet for its preliminary offer document.

Cennerv’s sole controlling shareholder is its chairman, Anil Kumar Ratty, who also has deemed interest Cennerv held his 50.2%-owned company Chakra Biotech, and his wife Sawarn Kaur D/O Hari Singh.