The biopharma scene in Singapore is vibrant, but few make it to SGX
More listings will keep the Republic’s capital markets robust, develop an ecosystem and strengthen its regional hub status
In this series, The Business Times delves into the state of Singapore’s biotech scene, exploring a key challenge: converting its world-class research and development (R&D) output into commercial victories.
Our first story looks at why few home-grown firms are listing on the Singapore Exchange (SGX). Upcoming stories will examine foreign investor interest, macroeconomic headwinds and the future direction of the sector.
[SINGAPORE] After more than two decades of strategic investment, Singapore has cultivated a vibrant biotech startup scene, underpinned by a well-established R&D ecosystem.
The city-state is now home to more than 70 such companies – a sevenfold increase since 2012, according to Dr Clarice Chen, director of healthcare and biomedical at Enterprise Singapore. However, as they scale, not many opt to raise capital by listing on the Singapore Exchange (SGX).
Last month, home-grown cancer diagnostics startup Mirxes announced that it would join the Hang Seng Composite Index, after its Hong Kong initial public offering (IPO) and debut in May. The company previously said it opted for the HKEX over the SGX because of the former’s better valuation and savvier investor pool.
Gary Wan, co-head of capital markets at Drew & Napier, said biopharma companies’ interest in listing on the SGX is “currently somewhat modest” compared to those in other industries. By his count, there are approximately 30 healthcare-sector listed companies on the local bourse, and “only a portion” of these are biopharma companies.
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Similarly, Ooi Chee Keong, head of capital markets at Forvis Mazars in Singapore, noted fewer than 20 biotech companies listed on the SGX.
In comparison, more than 250 companies are included in the Nasdaq Biotechnology Index alone, and somewhere between 60 and over 70 biotech companies are listed on the HKEX.
“In 2024 alone, 19 biopharma companies successfully listed on Nasdaq and two on HKEX, while the SGX recorded none,” said Ooi.
In Singapore, the biomedical sciences industry includes biopharmaceutical and medical technology sectors. The biopharmaceutical sector comprises pharmaceutical and biotech companies – the latter refers to those involved in drug development.
Knowing their worth
A key reason for the dearth of SGX listings is the less-than-favourable valuations.
Citing the case of Cennerv Pharmaceuticals, Wan noted that the Singapore-based biotech company “tried to list twice on the SGX in 2018 and 2019, but was forced to withdraw its IPO due to insufficient demand for placement shares at a suitable price”.
Contributing to this is a lack of understanding and familiarity.
“I think the setback is that it’s more difficult to understand than, say, a retail business or a manufacturing business,” said Terence Wong, chief executive officer of fund manager Azure Capital. “They are more intuitive, whereas biopharma needs education.”
Ooi added that biopharma companies are “characterised by long, high-risk R&D phases and a binary success model that hinges on clinical trial outcomes and regulatory approvals”. “This requires an investor base with a high risk tolerance and deep sector expertise, which is not always prevalent in a generalist market.”
Mike Carusi, general partner at Lightstone Ventures, said: “The metric is whether or not we get more money out than we put in.
“I think people often look at the end game as commercialisation, sales, revenues.”
But this is not the model for many biopharmaceutical firms. Singapore companies may thus prefer acquisitions to IPOs, he said.
In a market where investors struggle to understand them and specialist analysts are lacking, capital-intensive biopharmaceutical companies may choose to look elsewhere for higher valuations and better liquidity, that are present in, say, Nasdaq or HKEX.
Ooi noted that Nasdaq and HKEX have created dedicated ecosystems that support biopharma listings, with value chains, “from specialised investment banks and lawyers to research analysts and media, that creates a virtuous cycle attracting more companies”.
Wan said that, beyond cultivating a specialised investor base following reforms that allow pre-revenue and pre-profit biotech companies to list on the HKEX under Chapter 18A, Hong Kong marketed the framework to global investors.
He noted that this resulted in a surge of biopharma listings from mainland China on HKEX.
Though Singapore has also lowered certain IPO requirements for life sciences companies, the sector-specific push has generally been less aggressive, he said.
Nanyang Biologics, a home-grown biotech firm, is considering an IPO to raise future capital. But while it will not rule out listing on the SGX, investors familiar with the nuances of the biotech industry are often found on foreign markets, said founder and chairman Roland Ong.
“The kind of investor that might understand us could be in the US or in the Western world, could be China, because they have longer-term views on the potential of medical or drug businesses.”
There is also a relative scarcity of specialist biotech analysts. Ooi said that with more biopharma companies and biopharma-focused investors comes more analyst coverage and stronger institutional participation, which generally also contributes to better valuations.
SGX-listed biopharma players also lack a strong track record. While there may be the rare exception, Azure Capital’s Wong said: “I struggle to think of one that made money.”
iX Biopharma, listed in 2015, has seen its market price decline over 95 per cent from its listing price; Biolidics, listed in 2018, now trades at a price that reflects a drop of more than 90 per cent from its IPO level.
“The market has yet to reward these companies, highlighting structural and ecosystem gaps that make it difficult for early-stage life sciences firms to sustain or grow shareholder value post-listing,” Ooi noted.
Their weak performance on the SGX can create a negative loop, he added. Potential new issuers and investors would be hesitant, in turn suppressing valuations and liquidity for the sector.
A nudge in the right direction will help
Despite the challenges, the sector in Singapore is growing. Government support measures – for R&D and talent – have been beneficial for the ecosystem. The question is what can help these companies list on the SGX and perform well.
Forvis Mazars’ Ooi suggested that the SGX’s existing life sciences framework could be expanded, to provide clearer guidance for pre-revenue biotech valuations, disclosure standards and governance practices, tailored to the industry’s unique R&D cycles.
Drew & Napier’s Wan noted a growing interest by biopharma companies, local and foreign, in listing on the SGX. China Medical Systems, a pharmaceutical company focusing on speciality therapeutic fields, recently completed its secondary listing on the SGX in July 2025.
This process could be worth promoting, he added, to attract more established pharmaceutical companies already listed on recognised exchanges and who are seeking to broaden their investor base.
Analysts also said the SGX could suit players trying to appeal to regional investors and consumer markets.
“For example, a company focused on diagnostics or treatments for diseases prevalent in South-east Asia might find a strong strategic fit and investor recognition on the SGX,” said Ooi.
Wan added: “Biopharma companies may find Singapore appealing for its regional operational advantages and growing ecosystem support, especially if a large part of its target market is in South-east Asia.”
And while recently announced measures to rejuvenate the stock market are broad-based, the biopharma players could also stand to benefit, experts agreed.
Wong noted that the SGX saw a handful of IPOs in 2024, but already has over 30 companies in its IPO pipeline, following the announcement of revitalisation measures.
“I suspect, with more money in the markets, with more liquidity, investors will tend to like variety… and then they will be more risk taking,” he said, adding that these “more adventurous” investments could be in biopharma companies.
Ooi’s view is that for more IPOs to materialise, it “demands the deliberate cultivation of a specialised ecosystem”.
Making a comparison to the tech sector, he noted: “Success didn’t come from just welcoming startups, but from building a deep bench of specialist analysts, investors and bankers who understood the high-growth, high-risk model.”
A similarly dedicated financial community centred around life sciences will be necessary too.
Given that lack of familiarity is a key barrier, investor education will also be important, said Wong.
In 2001, the first attempt to launch a real estate investment trust (Reit) listing on the SGX failed because of insufficient investor demand, he recalled.
“So we started to educate investors,” he said, adding: “From 2004, 2005, more and more Reits started to sprout up, and then we later became the Reit capital of Asia.”
A few notable successes would also help to build confidence, experts said.
Local firms are able to secure funding through other means, and IPOs are not the only yardstick for the companies’ or the sectors’ success.
But having more such exit options will encourage more early-stage investment; and strengthen the ecosystem for research, funding and commercialisation.
“From a strategic national perspective, attracting more biopharma listings could strengthen Singapore’s position as a regional biomedical hub, create more high-value jobs, provide economic stimulus and spur growth in related sectors,” Ooi summed up.
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