Singapore biopharma industry makes significant strides

Healthcare facilities in Singapore are widely regarded as among some of the best in the world. Moreover, Singapore is ranked fourth in the world for innovation in the biopharma industry, according to a recent report from the Information Technology & Innovation Foundation (ITIF) based in Washington, D.C. In the report, titled, “How National Policies Impact Global Biopharma Innovation: A Worldwide Ranking.” The ITIF found that five countries (U.S., Switzerland, Taiwan, Singapore, and Sweden) have enacted long term policies that have helped them become leading life-science innovators globally. The report also states, “Singapore’s aggressive push into life sciences has resulted in eight of the top ten global pharmaceutical firms locating their (Asian) regional headquarters there.”

The reason that Singapore has been able to achieve such a high ranking is largely due to the enormous amount of government investment over the years in life-sciences research, coupled with low pharmaceutical price controls. Similar to that of most governments in the developed world, Singapore has long held healthcare objectives of providing an efficient and world-class healthcare system. But perhaps where Singapore has a slightly different approach is the importance which the government attaches to the incorporation of new technology into care delivery. This is closely connected with the other goal held by the government of making the country a major hub for the pharmaceutical and biotech industries.

According to "Affordable Excellence – The Singapore Healthcare Story” by William A. Haseltine, Singapore ranks sixth in the world in healthcare outcomes. This position is well ahead of many developed countries, including notably the United States, where basic healthcare can still extend beyond the reach of too many.

Government funding helps establish pharma hub in Singapore

The impetus provided by the government has helped to build a solid infrastructure for international companies wishing to set up operations in the country. According to the Singapore Economic Development Board, there are seven research institutes and five research consortia in Singapore. They are involved in fields ranging from clinical sciences and genomics, to bioengineering, molecular/cell biology, medical biology, bio-imaging, and immunology. In the field of biomedical science alone, over 50 companies are carrying out research in Singapore.

A host of special incentives, predominantly but not exclusively tax-related, have been provided by the government for research activities. These include the Translational & Clinical Research Flagship Programme for researchers to develop healthcare solutions for patients, and the Competitive Research Programme that provides funding for a wide range of research ideas.

The list of biopharmaceutical companies with manufacturing facilities in Singapore reads like a roster of the world’s leading pharma firms, and includes Abbott, GlaxoSmithKline, Lonza, MSD, Novartis, Pfizer, and Sanofi-Aventis.

Each of these manufacturing facilities has received validation from international regulators such as the U.S. Food and Drug Administration, the European Medicines Agency, and the Japan Pharmaceuticals and Medical Devices Agency.

Bio and pharma industries major contributors to Singapore’s economy

According to data released by the Ministry of Trade and Industry, biomedical manufacturing contributed just under $30 billion to the nation state’s GDP in 2014. Of this, pharmaceuticals accounted for nearly $17 billion, and medical technology contributed about $11 billion. This sector employs over 18,000 workers, most of whom are highly skilled and technically qualified.

In April 2016, the Singapore Economic Development Board’s Monthly Manufacturing Performance data revealed that without the contribution from the biomedical manufacturing sector, the country’s output would have contracted by 0.1% yoy in April 2016. Thanks to biomedical manufacturing, which saw output expand by 14.6% in April 2016, total national output rose by 2.9% yoy. Pharmaceuticals expanded by 17.7%, while the medical technology segment, which enjoyed strong export demand, grew by 5.4%, for combined growth of 18.6% compared to the same period a year ago.

Going forward: look out for some promising start-ups

Singapore continues to take steps to build on its existing strengths in this sector. Recently, EDBI, the corporate investment arm of the Singapore Economic Development Board partnered with Royal Philips to jointly invest in companies specialising in digital health.

This tie-up will help startups break into the Asian healthcare market using Singapore as a base. At the time of launching this initiative, EDBI said that it had been supporting the biomedical sciences sector for the last 25 years.

Singapore’s biopharma sector has already carved out an important place for itself in the region. The coming years should see further expansion as a result of the strong ecosystem that exists for this industry within the country.

(By Ravinder Kapur)

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