What is biotechnology? Biotechnology Guide for Investors

What is the biotechnology sector?

Biotechnology is now a major driver of medical innovation, supported by advances in genomics, molecular biology, cell engineering and data-led research.

Today, biotech is helping to drive breakthroughs across areas such as cancer, immune-related diseases, metabolic disorders, neurological conditions and rare genetic illnesses.

The sector also covers a wide range of business models — from drug developers and research tools providers to contract research organisations (CROs), contract development and manufacturing organization (CDMOs) and AI-enabled platforms — each with its own earnings profile and valuation drivers.

A rapidly growing market to reach US$5.7 trillion by 2034

The global biotechnology industry continues to enjoy strong long term growth tailwinds.

Precedence Research estimates that the global biotech market could grow from about US$1.77 trillion in 2025 to US$5.71 trillion by 2034, implying annual growth of around 11.8 percent.

At the same time, IQVIA expects global medicine spending to reach about US$2.4 trillion by 2029, supported by rising demand for biologics and specialty therapies.

The biggest spending increases are likely to come from areas such as oncology, diabetes and obesity, immunology, and neurology. While the US remains the centre of innovation, demand growth is increasingly coming from Asia Pacific and Latin America.

Forecast of global medicine spending by region/country in 2029 (US$)

As treatments become more complex and costly, healthcare data and analytics platforms are also becoming more important in supporting adoption, reimbursement, and real-world evidence.

In the near term, biotech performance can still be affected by interest rates, funding conditions, and the broader macro environment, especially for earlier stage companies.

But over the longer term, the outlook remains supported by rising demand for biologics and specialty medicines, an ageing population, ongoing scientific advances, and the shift towards more value-based healthcare.

In our view, the companies best placed to benefit are those with strong science, disciplined execution, and resilient supply chains.

Asia-Pacific and Singapore: An emerging biotech innovation hub

Asia-Pacific is emerging as an important biotechnology growth region, supported by ageing populations, rising chronic disease burdens, and increasing healthcare investment.

Population aged 65+ years in the 12 Asian markets is expected to grow 4.7% annually until 2029

Within this landscape, Singapore stands out for its long-term commitment to research and development, strong intellectual property protection, trusted biomanufacturing capabilities, and well-developed translational research ecosystem.

Who are the major Singapore players in the biotechnology sector?

The rise of companies such as Mirxes, Hummingbird Bioscience, Nuevocor, Respiree, UltraGreen.ai, Tessa Therapeutics, Tychan and Engine Biosciences also shows how Singapore is evolving beyond a manufacturing base into a more innovation-led biotech hub with global ambitions.

UltraGreen.ai is an example of how a Singapore-based company can grow into a global medtech player.

Now listed on the SGX Mainboard, the company supplies indocyanine green, or ICG, a dye that helps surgeons visualise blood flow more clearly during operations. It also provides imaging systems used in operating rooms.
UltraGreen says it has a significant share of the global ICG market and has installed more than 1,000 imaging systems worldwide.

Its PerfusionWorks software adds another layer by helping to turn what surgeons see on screen into clearer measurements, which can support better decision-making during surgery.

UltraGreen.ai is an example of how a Singapore-based company can grow into a global medtech player.

Now listed on the SGX Mainboard, the company supplies indocyanine green, or ICG, a dye that helps surgeons visualise blood flow more clearly during operations. It also provides imaging systems used in operating rooms.

UltraGreen says it has a significant share of the global ICG market and has installed more than 1,000 imaging systems worldwide.

Its PerfusionWorks software adds another layer by helping to turn what surgeons see on screen into clearer measurements, which can support better decision-making during surgery.

By combining dye sales with equipment and software, the company also has the potential to generate more recurring income as hospitals continue using its platform.

iX Biopharma focuses on peptide-based drugs using proprietary oral thin-film delivery technology, offering a platform approach to improving bioavailability and patient compliance. 

Hyphens Pharma International operates across generic and specialty pharmaceutical distribution and manufacturing, providing stable cash-flow exposure to healthcare consumption. 

AJJ Medtech Holdings supplies medical devices and integrated diagnostic and imaging solutions, benefiting from hospital capital-expenditure and digitalisation trends. 

ISEC Healthcare represents a hybrid model combining healthcare services with medtech-enabled delivery, reflecting the increasing convergence between care provision and technology.

Hummingbird Bioscience reflects Singapore’s growing role in advanced therapeutic discovery. What began as a local biotech focused on antibody design has developed into a globally integrated therapeutics company targeting disease pathways that were once considered difficult to treat.

Its platform has already attracted partnerships with major pharmaceutical companies such as Merck and Amgen, highlighting the commercial potential of Singapore-origin science.

In 2024, Hummingbird also spun off its antibody-drug conjugate platform into Callio Therapeutics, which raised US$187 million in Series A funding. This was one of the largest early-stage fundraisings for a Singapore-linked biotech, and a strong sign of continued global investor interest.

Respiree is an example of how Singapore’s strengths in medtech and digital health are coming together. An A*STAR spin-off, the company combines wearable sensors, software and AI to support continuous cardio-respiratory monitoring.

Its FDA-cleared and CE-marked devices are already being piloted with hospitals in Singapore and overseas, helping to improve chronic disease management, detect deterioration earlier, and support more efficient clinical workflows.

This is especially relevant in Asia, where ageing populations and healthcare workforce constraints are creating growing demand for solutions that can support care delivery more effectively.

Nuevocor highlights Singapore’s growing presence in next-generation genetic medicines. The company focuses on inherited heart muscle diseases and uses its PrOSIA mechanobiology platform to develop gene-based therapies for conditions such as LMNA-related dilated cardiomyopathy.

With its lead programmes moving towards early clinical development in major markets, Nuevocor also shows that Singapore’s biotech ecosystem is increasingly able to support science-intensive and capital-heavy therapeutic platforms that require deep translational research and engagement with global regulators.

Tessa Therapeutics is one of Singapore’s leading cell therapy companies, focused on next generation T-cell treatments for cancer.

Its approach aims to improve the persistence, precision and effectiveness of engineered T-cells, helping to address some of the limitations seen in earlier cell therapies.

Tessa has already advanced several programmes into clinical development and raised substantial private funding along the way, reflecting both the scientific potential and the capital-intensive nature of the cell therapy space.

Its progress also highlights Singapore’s ability to support more complex therapeutic platforms that require advanced manufacturing and deep scientific capabilities.

Tychan is another example of a platform-driven biotech, focused on fully human monoclonal antibodies for infectious diseases. Its strength lies in speed — using a proprietary platform to identify, optimise and move antibody candidates into early clinical testing quickly.

This positions Tychan well in infectious disease preparedness, where the ability to respond rapidly can be just as important as developing any single product.

Engine Biosciences reflects the growing overlap between AI, computational biology and lab-based validation within Singapore’s biotech ecosystem.

Rather than focusing only on improving existing molecules, the company uses its platform to identify previously overlooked biological targets, especially in cancer and other complex diseases.

This fits with the broader shift towards data-driven drug discovery, while also drawing on Singapore’s strengths in biomedical research, data science and high-performance computing.

Biotech valuation framework

Biotech valuations can vary widely depending on where a company is in its growth journey.

For early-stage companies, investors often focus on the future potential of the pipeline, the strength of the platform, and comparisons with similar deals or companies.

Total global biotech venture financing deal volume and deal value (1Q2021 to 3Q2025)

For clinical stage biotechs, valuations tend to move based on trial results, regulatory progress, competition, and how  quickly a product could reach the market.

Once a biotech company has commercialised its products, it is usually valued more like a specialty pharmaceutical business, using metrics such as earnings, sales, cash flow, and operating profit.

For adjacent sectors such as life science tools, CROs, CDMOs, and medtech, investors often pay closer attention to recurring revenue, utilisation levels, and the strength of the installed customer base.

This is why using the right valuation framework for each business model is important when assessing share price moves and long-term investment potential.

Key risks and challenges

Biotechnology comes with real risks, including failed clinical trials, regulatory delays, manufacturing challenges, and intense competition.

For more established products, revenue can also come under pressure from biosimilars and generics. At the same time, funding conditions can affect how quickly new innovation moves forward, especially for earlier stage companies.

This is why investors need to be selective. In our view, it is important to diversify, track key milestones closely, and understand where each company sits in its development and commercialisation journey.

Learn more about the biotechnology sector by downloading our guide for investors here. 

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