NSG BioLabs bags US$14.5 million funding; inks tie-ups with Merck, EnterpriseSG
The funds will go towards new facilities and co-working sites, likely around the Biopolis and one-north area
BIOTECH co-working provider NSG BioLabs secured a US$14.5 million funding round led by private equity player Celadon Partners, it announced on Tuesday (May 7). Temasek-backed biotech investor ClavystBio also joined in the round.
The funds will be used to establish more facilities and co-working laboratory sites. Currently, NSG BioLabs has three Biosafety Level 2 laboratory and office sites, which allow for work with chemicals and agents with moderate potential hazard to personnel and the environment.
“We are looking to expand to more sites in Singapore,” Daphne Teo, chief executive and founder of NSG BioLabs, told The Business Times.
Of the three sites, the first reached full occupancy within a year of its launch in November 2019. The second site is now almost fully occupied, and the third site launched in January.
The new sites will likely be around the Biopolis and one-north area, with overseas expansion currently not on the cards. At the moment, NSG BioLabs is focused on Singapore, said Teo.
With ClavystBio now an investor, there is hope that it sends some portfolio companies to use NSG BioLabs for its office and lab space. The co-working space provider claims that its startup tenants have raised about US$400 million in funding so far.
“This investment reinforces ClavystBio’s mission to accelerate breakthrough science into health impact through venture building and strategic partnerships,” said Khoo Shih, chief executive of ClavystBio.
Partnerships
Aside from the funding, NSG BioLabs also inked partnerships with government agency Enterprise Singapore (EnterpriseSG) and science and technology company Merck. The partnership with EnterpriseSG is a renewal of NSG BioLabs’ participation in the Startup SG Accelerator programme, which provides funding and non-financial support for startups.
Under its partnership with EnterpriseSG, NSG BioLabs has hosted events in its sites for biotech startups to network with pharma companies. With the renewed partnership, both parties will work to build out the precision medicine sector in Singapore.
Precision medicine, which tailors medication according to the patient’s genes, lifestyle and environment, has been primarily researched in the west, which caters to mostly Caucasian genes. NSG BioLabs and EnterpriseSG are looking to tap the genomics data recently collected in Singapore to build precision medicine startups catering to Asian genes.
Dr Clarice Chen, director of healthcare and biomedical, EnterpriseSG, said: “EnterpriseSG will continue to work with industry partners like NSG BioLabs to drive the development of new deep-tech innovations such as artificial intelligence-enabled platforms and targeted therapies by providing patient capital, infrastructure and expertise. This will strengthen Singapore’s edge in precision medicine and revolutionise healthcare delivery.”
NSG Biolabs’ partnership with Merck will enable its startup tenants to purchase reagents at a preferential price, so they pay less for essential ingredients for their research. Startups, being small, typically lack the scale that would give them access to preferential pricing from pharma companies.
Merck will also provide consultations for startups on scaling up and getting insights into what big pharma is looking for, which is key for getting noticed by pharma companies. This represents another exit strategy for biotech startups, with their research licensed or acquired by big pharma companies.
“Getting preferential discounts and getting noticed by big pharma is a big thing for biotech startups,” said Teo.
