Biopharma scene is vibrant, but few make it to the SGX

After over two decades of strategic investment, is Singapore's biopharma scene finally gaining momentum? With home-grown startup Mirxes announcing its inclusion in the Hang Seng Composite Index (HSCI) following its listing in the Hong Kong Exchanges and Clearing (HKEX) instead of the Singapore Exchange (SGX), experts believe that the strategic decision, like those of many others, points to a key issue — less-than-favourable valuations on the SGX.

In a recent interview with The Business Times, our Partner and Head of Capital Markets, Ooi Chee Keong, drew comparisons to other markets including Nasdaq and HKEX where dedicated ecosystems have been built overtime to support biopharma listings, in turn creating a virtuous cycle that attracts more companies.

For more initial public offerings (IPOs) in the biopharma sector to materialise in Singapore, he highlighted, "Success didn't come from just welcoming start-ups, but from building a deep bench of specialist analysts, investors and bankers who understood the high-growth, high-risk model."

However, despite the current landscape, Chee Keong said that there are still companies who may still decide to list on the SGX depending on their target audience and strategic goals. "For example, a company focused on diagnostics or treatments for diseases prevalent in South-east Asia might find a stronger strategic fit and investor recognition on the SGX," he added.

Delve into his insights on the outlook of the market on The Business Times.

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