(Updated)

Kok Thay says Genting Bhd's medical R&D investments 'pose higher risks than other investments'

Tan Sri Lim Kok Thay (Photo by Sam Fong/The Edge)

Tan Sri Lim Kok Thay (Photo by Sam Fong/The Edge)

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KUALA LUMPUR (April 8): Genting Bhd chairman and chief executive Tan Sri Lim Kok Thay said the casino and hotel operator's investments in research and development (R&D) within the medical space "pose higher risks than other investments" as the results and success rates are uncertain and the gestation period for any breakthrough discovery can be potentially long.

In Genting Bhd's latest annual report, Lim, however, said despite the higher risks from such R&D investments, Genting Bhd is committed to finding new solutions to improve the health of mankind and the community.

Genting Bhd's website indicates that companies within Genting Group's life sciences and biotechnology division include Celularity Inc, TauRx Pharmaceuticals Inc, DNAe Group Holdings Ltd and Cortechs.ai.

Genting Group comprises Genting Bhd and listed companies Genting Malaysia Bhd, Genting Plantations Bhd and Genting Singapore Ltd as well as its wholly-owned unlisted subsidiaries Genting Energy Ltd and Resorts World Las Vegas LLC, Genting Bhd said.

In Genting Bhd's annual report, Lim elaborated on, among others, that Celularity, a clinical-stage biotechnology company in the US, in January 2021 entered into a definitive merger agreement with Nasdaq-listed GX Acquisition Corp.

"The business combination is expected to be completed in the second quarter of 2021, whereupon GX Acquisition Corp will be renamed Celularity Inc and the shares of the combined company will be listed on Nasdaq," he said.

At Bursa Malaysia's 12.30pm break today, Genting Bhd's share price settled down seven sen or 1.33% at RM5.19 for a market value of about RM19.98 billion.

Genting Bhd has 3.85 billion issued shares, according to the company's latest quarterly financial report.