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Singapore strengthens its position as vantage point into Asia
The Singapore Economic Development Board (EDB) brought in S$932 million of investments in fixed assets and S$245 million in total business spending for the biomedical sciences industry. This strong wave of investments points to an expanding base of manufacturing and research activities for the biotechnology, pharmaceutical, medical technology and healthcare sectors in Singapore.
Investments in 2007 are expected to contribute more than 1,700 jobs when fully realized. Over the next few years, biomedical sciences announcements and expansions will contribute more than 5,000 positions for engineers, scientists, technicians and corporate executives across manufacturing and R&D facilities.
Speaking at the opening of Biomedical Asia 2008, Ms Aw Kah Peng, Assistant Managing Director, EDB, said, “The biomedical sciences sector is a key pillar of the Singapore economy. It is also important because it has the potential to address our population’s current and future healthcare needs. In 2007, we sustained a strong performance in manufacturing, R&D and investments. On the home front, local companies and researchers made significant progress in their research. Moving forward, we will continue to build up capabilities in translational and clinical research in partnership with industry. These capabilities will complement Singapore's foundation in good science and support the development of new treatments and products for unmet healthcare needs.”
She added, “The growth of Asia presents exciting new opportunities for the biomedical sciences industry. As a microcosm of Asia, Singapore offers a window into its future and is uniquely positioned to support the industry’s efforts to access the expanding Asian market.”
Singapore’s competitive edge in manufacturing will be enhanced as it further develops its capabilities in biologics and medical devices. In R&D, pharmaceutical and biotechnology companies are validating Singapore’s position as a location of choice for research and innovation by expanding their research facilities and operations here. There is also a growing base of medical technology R&D as companies leverage on the established biomedical and physical sciences research infrastructure here. Singapore-based companies and scientists are making rapid progress in all areas of research.
Singapore continues to draw leading scientists and invest in research infrastructure to build on an established foundation. It is also making headway in translational and clinical research (TCR). Over the past year, key research and training institutes as well as the first TCR flagship programme in gastric cancer were established. The government has committed over S$300 million in new research facilities . TCR will be a key launch-pad for the next phase of the sector’s growth, as we work with the industry to develop new solutions for the Asian market.
Industry overview
Since the year 2000, when the biomedical sciences initiative was launched, manufacturing output has expanded fourfold from S$6.3 billion to S$24 billion in 2007 at a Compounded Annual Growth Rate (CAGR) of 21%. Value-Added also increased by more than threefold from S$3.8 billion in 2000 to exceed S$13 billion in 2007. Employment doubled from 5,880 to more than 11,500 over the same period.
Key growth drivers
- Biologics manufacturing
Singapore is extending into biologics manufacturing, which is anticipated to be a key growth driver for the global biopharmaceutical industry. Within the past two years, Genentech, GlaxoSmithKline (GSK), Lonza and Novartis announced five major biologics investments totalling over US$1.5 billion.
- Medical technology manufacturing
Singapore continues to build global leadership positions in the fastest growing segments of medical technology. Leading industry players have established their key global manufacturing site in Singapore: Affymetrix’s new gene chip manufacturing plant will contribute to more than 40% of their global microarray production, while Bio-Rad Laboratories opened its largest manufacturing site for thermal cyclers in the world. In addition, West Pharmaceutical, a leader in closure systems and syringe components, has invested S$45 million in expanding its Singapore facility.
- Expanding R&D Base
The strong growth in the biomedical sciences R&D base validated Singapore’s strengths as a location of choice for research and innovation. Global leaders Lilly, Novartis and Pfizer increased their research investments and expanded their facilities, while Japanese pharmaceutical leader, Takeda, acquired and expanded Paradigm Therapeutics’ research operations. Correspondingly, the number of private-sector researchers continued to grow and has doubled to more than 1,000 since the year 2000.
In medical technology R&D, leading companies have integrated product design with supply chain and extended into applications development to leverage on Singapore’s strong engineering expertise and capabilities. They include Hill-Rom’s Asia-Pacific Innovation Centre that will customise products for the region and PerkinElmer’s R&D Centre of Excellence that serves as a global R&D base for selected scientific and research instruments. In the new A*STAR-NUS Clinical Imaging Research Centre, Siemens will be introducing new bio-imaging technologies and building up capabilities in radiochemistry.
- Emergence of Asia
Asia’s expanding market opportunities and talent pool are major pull factors for investors and Singapore is a strategic location that serves as a base for companies’ expansion into Asia. In 2007, Merck moved its regional headquarters to Singapore to develop and oversee its growth plans for Asia. Eisai will be providing strategic oversight for clinical trials in Asia Pacific and the Middle East from its regional clinical research and coordination centre in Singapore, while Qiagen set up its Asia Pacific service solutions centre in Singapore to plug the gap in its global network of service solutions centre.
In addition, training institutes have been established to nurture the emerging talent pool in Asia. In March this year, NUS launched the Singapore Academy for GxP Excellence (SAGE) that will work closely with the industry’s representatives and government agencies to deliver world class training programmes and promote best practices. This is one of the first industry-wide training initiative in the region and will complement company specific regional training centres in Singapore.
Equity investments for sustained growth
In line with EDB’s objectives of developing a vibrant and sustainable BMS industry, Bio*One continues to nurture promising local companies and attract innovative growth companies to establish operations in Singapore, alongside the multinational corporations. In 2007, Bio*One committed more than S$90 million in over 15 projects, comprising new and follow-on investments, almost all of which have linkages or activities in Singapore.
Bio*One’s investments in Codexis led to the US company setting up its first Asia-Pacific facility to conduct biocatalysis research in Singapore and better serve the growing Asian biopharmaceutical manufacturing markets. Bio*One is also expanding its medical technology portfolio, investing in companies that complement Singapore’s strengths in precision engineering and complex manufacturing. Having made Singapore its worldwide manufacturing site, US-based Fluidigm expanded a Product Development Center to develop a new sophisticated analytical instrument system. Bio*One and QIAGEN of Germany set up Dx Assays, a molecular diagnostics company focusing on infectious and genetic diseases. In addition, Bio*One seeded Innoheart, a local preclinical Contract Research Organization (CRO) that provides evaluation of medical devices. With Bio*One’s investments in Alexza Pharmaceuticals, the US company will establish a manufacturing headquarters in Singapore for precision manufacturing and procurement that are critical to the commercial launch of their drug device products.
Bio*One’s quest to grow Singapore-based companies and commercialize indigenous technology has borne early fruits : S*BIO has advanced the first “developed in Singapore” anti-cancer compound into Phase I clinical trials in Singapore and USA, and will progress a second novel compound into clinical development this year. Merlion Pharmaceuticals has also advanced its novel antibiotic, Finafloxacin, into Phase I clinical trials.
Homegrown innovation making headway
In addition to S*Bio’s and Merlion’s promising results in drug discovery, Singapore-based researchers are making a significant impact in the sector with their work.
In basic research, a Singapore team of scientists made an important discovery that could lead to a cure for Alzheimer’s disease, an illness that plagues the ageing population in the developed world. Assoc Prof Xiao Zhi Cheng, Singapore General Hospital and Institute of Molecular and Cell Biology and Dr Gavin Dawe, National University of Singapore, led a team of scientists who found that as brain cells regenerate, they produce plaque as a by-product, which disrupts vital brain functions, thereby leading to Alzheimer’s disease. The team identified two types of protein molecules in the brain that control the production of the plaque. These proteins could potentially give pharmaceutical companies two new targets to work on, when exploring the development of a vaccine or cure. The team published their findings in the Nature Cell Biology journal and has patented their discovery.
In addition, a new technology was developed that could evolve into a mobile lab to trace and contain a possible outbreak of epidemic or biohazard. Mr Gooi Boon Chong from Nanyang Polytechnic successfully developed a prototype of a portable bioanalyzer with an integrated microelectromechanical systems (MEMS) reactor that can detect human DNA target and bacteria plasmid (E.coli) at the early-phase proof of concept stage. The technology will be commercialised with the help of DNAlysis Biosystem, one of the technology start-ups in Singapore.
Developments in translational and clinical research
In 2007, Singapore laid the grounds to drive translational and clinical research as part of the second phase of the biomedical sciences initiative. Key research institutes were established over the past year, and they include the Duke-NUS Medical Graduate School, Singapore Institute of Clinical Sciences, Institute of Medical Biology, Ludwig Institute for Cancer Research, Cancer Centre of Excellence and the Centre for Translational Medicine.
In 2007, the Biomedical Sciences International Advisory Council endorsed the setting up of two Investigational Medicine Units and an Academic Clinical Research Organisation (ACRO) to facilitate early-phase and late-phase clinical trials respectively. This would complement A*STAR’s new Experimental Therapeutics Centre (ETC) that undertakes early stage studies of drug candidates discovered in Singapore.
On the human capital front, A*STAR and MOH have established grants and awards to support and nurture clinician-scientists. These include the Singapore Translational Research (STaR) Investigatorship and Clinician Scientist Awards . The Translational and Clinical Research (TCR) Flagship Programme is another key initiative that will establish Singapore as a leader in strategic disease-oriented areas by building on programmes in Singapore and facilitating collaboration with top overseas research institutions and industry. Last year, the inaugural TCR grant was given to the Singapore Gastric Cancer Consortium (SGCC). TCR Flagship Programmes will be rolled out for infectious, neurosciences and eye diseases this year.
Looking ahead
We are rapidly building critical mass in biologics manufacturing and expect to maintain this momentum. Singapore’s position as a key global manufacturing site for medical technology companies is also reinforced. In R&D, we aim to further expand the industry R&D base, and increase the number of companies undertaking the discovery and development of new drugs and medical devices in Singapore.
In recognition of Singapore’s strong medical foundation and excellent reputation for healthcare standards, Bio*One has expanded its focus areas to include services and healthcare delivery, in addition to its existing focus on therapeutics and medical technology.
Moving forward, Singapore will build on the strong R&D base to strengthen its capabilities in translational and clinical research to bring discoveries from the bench to the bedside and the marketplace, and ultimately improve human healthcare for Singapore. This presents new opportunities for companies to partner Singapore in developing novel solutions for the expanding Asian market and beyond.
About the Singapore Economic Development Board
The Economic Development Board (EDB) is the lead government agency responsible for planning and executing economic strategies to enhance Singapore’s position as a global hub for business and investment. We are the one-stop agency that facilitates and supports local and foreign investors in both the manufacturing and services sectors as they seek more value-creating operations, higher sustainable returns and new business opportunities.
Singapore commands global leadership positions in many areas. EDB is expanding and extending existing industry clusters, as well as exploring new growth areas to create good jobs and secure Singapore’s future competitiveness. Our emphasis is on capital-intensive, knowledge-intensive and innovation-intensive activities. EDB is constantly identifying new business areas to develop both in terms of new technologies as well as new consumer demands, such as our 'clean and green' focus - environmental technologies, urban solutions and clean energy, lifestyle, healthcare and wellness. EDB is also expanding our geographical reach, such as Middle East, in addition to North America, Europe, Japan, China, India and ASEAN.
For more information on how EDB can help in your business and investment, please visit www.sedb.com
About Bio*One Capital Pte Ltd
Bio*One Capital is a leading, dedicated biomedical sciences investment management company in Asia with a worldwide presence. Bio*One Capital’s investments are focused on promising global biomedical companies where Bio*One Capital can play a value adding role in bridging and supporting companies' growth strategies in Asia through their operations in Singapore. A part of the Singapore Economic Development Board, Bio*One Capital oversees a portfolio of over 50 companies in the US, Europe, Singapore and Asia.
For more information, please visit http://www.bio1capital.com
For media queries, please contact:
EDB
Mr Loh Zhi Wei
Senior Officer
Communications
DID: 65-6832 6806
Mobile: 65-9231 5017
Email: zhi_wei_loh@edb.gov.sg
Bio*One Capital
Ms Paige Koh
Manager
Investments
DID: 65-6395 7749
Mobile: 65-90404775
Email: paige_koh@bio1capital.com
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