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SINGAPORE: In line with the government's push to build up the biomedical sector in Singapore, there has been a spurt in biotech firms here over the years.
A leading expert in the field said Singapore has the right infrastructure for a budding biotech industry, but there is a need for more venture capital to help boost growth in the sector.
The biotech industry is one where you may not see a single cent of profit for up to 15 to 25 years.
While some venture capitalists may not mind the long wait, analysts said it takes more than just deep pockets to stay the course.
Glen Giovannetti, global biotechnology leader at Ernst & Young, said: "Much of what the venture capitalist actually brings to the equation is not just money. They certainly bring capital. But they also bring in experience and network connections, and connections to big pharmacological companies and all those elements."
Industry watchers also said more can be done to attract investments into Singapore's biotech sector.
"There is not a long history or a history on the Singapore Exchange, for example, of companies without profits listing. If you look at the experience in US and San Diego, Nasdaq has really enabled the biotech industry – the fact that VCs (venture capitalists) have a predictable path to exit their investments because there is a stock market that is receptive to technology companies that aren't yet profitable," said Mr Giovannetti.
He also argued for greater latitude towards biotech entrepreneurs.
Mr Giovannetti said: "It's not seen as a failure that you've been in one or two ventures where the science didn't work out. That's not a managerial failure. Might be the science (that) didn't work out.
"But if a skilled entrepreneur has gone through that experience in San Diego – he or she is seen as being more valuable – not less and more attractive to a VC."
There are now 20 dedicated biotech firms in Singapore.
- CNA/so
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