Prof Raj Thampuran, Managing Director, Agency for Science, Technology and Research;

 

Mr Phillip Lim, Chief Executive Officer, Exploit Technologies Private Limited; 

 

Distinguished Guests;

 

Ladies and Gentlemen.

 

Good morning. First, thank you for inviting me and I am delighted to be here for the official opening of the Diagnostics Development or DxD Hub.  The launch of the DxD Hub is a significant milestone in our efforts to develop Singapore as a regional hub for medical technology (MedTech).

 

 

The global demand for MedTech products remains strong and the growth is promising.  Global MedTech sales are expected to see steady growth of five per cent per annum to reach a size of S$600 billion by 2020 .  Asia will feature prominently in this global trend. Asia’s healthcare expenditure is projected to grow at two to three times the global average , and that is keeping in tandem with demographic and economic trends.  Consequently, MedTech companies are increasingly looking to Asia as a major source of growth.  Asia’s MedTech revenues accounted for 25 per cent of the global market in 2013, and its CAGR is about nine per cent.

 

The strong potential of the MedTech market is also reflected in the growth of the sector in Singapore.  Between 2009 and 2013, manufacturing output of the MedTech industry in Singapore grew by 50 per cent to reach S$5.1 billion.  Jobs grew by 24 per cent to reach 10,400.

 

Today, Singapore is home to more than 30 global MedTech companies, many of whom have established commercial-scale plants to produce medical devices for both regional and global markets.  Global leaders such as BD, Hill-Rom and Essilor have set up manufacturing, R&D and HQ operations in Singapore.  These MNCs have added significant depth, breadth and value to Singapore’s MedTech ecosystem, more than doubling their number of jobs over the past 15 years.  At the same time, local medical devices companies such as Cadi Scientific and Veredus Laboratories have tapped on innovation-driven growth in the MedTech sector, to become major regional players.  I am pleased to note that Veredus’ revenues, for example, are expected to increase at more than 25 per cent annually.

 

In parallel with the increased private sector activity, our public institutions such as A*STAR, NUS, NTU and the Academic Medical Centres have been building up the national portfolio of intellectual property (IP) in molecular and protein biomarker research.  This valuable source of IP could provide a key competitive advantage for Singapore-based companies to create unique diagnostic products and capture a slice of the global MedTech market.

 

 

The impetus for the launch of the DxD Hub comes from the strong prospects for the sector’s growth, globally and particularly in Asia. The Hub is a national-level effort that brings together companies, clinicians, regulatory experts, and innovators to accelerate the transformation of technologies into clinically-validated diagnostic solutions.  To enable successful commercialisation, the Hub will adopt a holistic approach in developing solutions that are ready for market adoption. This hub, in essence, epitomises what we see to be growing across many other areas in Singapore. We bring our search capabilities and products to private sector operations, together with industry players, in order to see how we can take these products and concepts to the market, as efficiently as possible.

 

First, the Hub will nurture partnerships among start-ups, SMEs and MNCs to jointly develop and commercialise products.  This will be especially helpful to smaller companies, like SMEs and start-ups, as they can then focus resources on their key competencies while tapping on the complementary expertise of other industry players in the Hub to develop diagnostic solutions.  For example, AITbiotech, a local SME, is working closely with the Hub to co-develop immuno and molecular diagnostic tests for an early detection, non-invasive assay for high-risk patients.

 

Second, the Hub will partner clinicians and hospitals to clinically validate diagnostic products developed by the companies and entrepreneurs in the Hub.  This is a key differentiating advantage, as it will help companies address regulatory compliance requirements, and reduce the barriers to successful market entry.

Last, I am pleased to announce that the Government has put in a place a clear framework agreement for IP sharing among public research organisations participating in the Hub, which will ease companies’ access to public sector IP.  This will help accelerate deal flow and enable companies to focus on the development of the product itself, rather than on IP agreement negotiations.

 

 

The Hub will have a tangible impact on healthcare and the economy. Collaborations with the clinical community will leverage the efforts of Singapore’s leading clinicians and medical consortia in areas such as oncology, ophthalmology, cardiology, and infectious diseases, as well as provide access to Asian patient cohorts.  This will support the development of cost-effective diagnostic solutions for diseases endemic to Asia, and tailored to the Asian phenotype. 

 

One start-up that was spun-out of A*STAR, MiRXES, is off to a good start towards achieving this goal.  MiRXES will be working with the DxD Hub to develop an early blood-based diagnostic platform that detects various cancers including gastric cancer and breast cancer.  For gastric cancer, Asia accounts for almost two thirds of new cases in males and more than half of new cases in females.  MiRXES will be working with partners within the DxD Hub, such as the Singapore Gastric Cancer Consortium, to deliver lab research to clinicians and doctors, helping them to better diagnose cancer and to reduce mortality.

 

Another example is Gencurix, a 30-man South Korean biopharmaceutical venture company which will be working closely with the DxD Hub to develop an in-vitro diagnostic kit for the prognosis and prediction of early stage breast cancer.  In the process, close to 30 high-value jobs for Singaporeans will be created, together with business opportunities such as logistics and design ergonomics for local companies in the supply chain.

 

 

I want to conclude by emphasising that the DxD Hub is a timely addition to Singapore’s MedTech landscape and well-positioned to catalyse our efforts in this sector.  I want to congratulate all our agencies, including A*STAR, SPRING, EDB, the tertiary institutions and the clinical community, who have been driving the development of the DxD Hub.  I look forward to the strong collaboration of all public and private sector partners to make the DxD Hub a regional and global nerve centre for diagnostic innovation.  I wish you all the best in this important endeavour.

Thank you.