SINGAPORE biotech startups are struggling through a sharp drop in funding as investors seek greater certainty of returns.

Biotech startups often go through years of research and development before they show commercial potential. As valuations everywhere shrink and returns appear more distant, however, investors are now paying much closer attention to proof of viability.

“It has been a very tough situation over the last couple of years,” Dr Carl Firth, chief executive of US-listed, immunology-focused biopharmaceutical company Aslan Pharmaceuticals, told The Business Times. “There have been droughts before, but never anything as long as this – 2022 was one of the worst years on record for biotech.”