Singapore biotech company Mirxes has achieved a historic milestone by becoming Southeast Asia's first billion-dollar biotechnology startup, following its successful initial public offering on the Hong Kong Stock Exchange on May 23. The company raised HK$1.09 billion ($181 million) through the offering of 46.62 million shares at HK$23.30 each, valuing the entire company at HK$6.4 billion initially and reaching a market capitalization of HK$8.29 billion ($1.06 billion) as shares traded around HK$30, up 28% from the listing price.
Breakthrough Cancer Detection Technology
Mirxes has developed groundbreaking microRNA-based cancer detection technology, with its flagship product GastroClear representing a significant advancement in early cancer screening. GastroClear became the world's first molecular blood test approved for early detection of gastric cancer in high-risk populations in 2019, developed in collaboration with the Singapore Gastric Cancer Consortium.
The test demonstrates superior performance with 87% accuracy, surpassing any other blood-based tests for gastric cancer detection. Priced at less than $150 at public hospitals in Singapore and around $250 in private clinics, GastroClear offers a more affordable and less invasive alternative to traditional endoscopy procedures, which can cost between $400 and $3,000. Patients who test positive are recommended to undergo endoscopy for more specific diagnostic confirmation.
Company Growth and Global Expansion
Founded in 2014 as a spin-off from Singapore's A*Star research agency, Mirxes has experienced remarkable growth under the leadership of CEO Dr. Zhou Lihan, a naturalized Singaporean who arrived as a 15-year-old PRC scholar. The company has expanded from a three-person startup to a 350-strong organization with operations across China, Japan, Malaysia, the Philippines, and the United States.
The company has established strategic partnerships with global pharmaceutical giants including Johnson & Johnson and Pfizer, demonstrating the commercial viability and scientific credibility of its technology platform. Beyond cancer detection, Mirxes also developed Singapore's first Covid-19 polymerase chain reaction test kit, the Fortitude Kit, in collaboration with A*Star in 2020.
Strategic Hong Kong Listing Decision
Mirxes chose to list in Hong Kong rather than Singapore due to strategic market considerations. Dr. Zhou explained that gastric cancer is "a very Asian disease," with China alone accounting for half of all stomach cancer cases worldwide. The Hong Kong platform provides crucial access to mainland China, representing the largest market for stomach cancer testing and offering the scale and speed necessary for clinical trials to accelerate research and development efforts.
The Hong Kong Stock Exchange's Chapter 18A regulations, introduced in 2018, allow yet-to-be-profitable biotech firms to list on the main board, recognizing their growth potential. Since implementation, more than 70 such firms have launched IPOs in Hong Kong, gaining access to much-needed funding for developing cutting-edge technologies and innovations.
Financial Performance and Investment Plans
Despite achieving unicorn status, Mirxes continues to operate at a loss as it invests heavily in research and development. The company reported net losses of $56.64 million in 2022, $69.23 million in 2023, and $92.33 million in 2024. Revenue for 2024 was $20 million, representing a 16% decrease from 2023 levels.
The IPO proceeds will support multiple strategic initiatives, including advancing cancer screening solutions like GastroClear and other pioneering projects. The company plans to expand its research and development capabilities, enhance its product pipeline, and improve profitability. Specific funding will be allocated to promote awareness and adoption of GastroClear in China and Southeast Asia, while supporting ongoing research into colorectal and multi-cancer detection tests.
Cornerstone Investment and Market Validation
The IPO attracted significant institutional support, with Beijing Xunrui Enterprise Management Partnership agreeing to subscribe to $50 million worth of shares and Evergreen Gate, a Fosun International subsidiary, committing $7.92 million. These cornerstone investors are expected to hold 19.29 million shares, representing 41.37% of the IPO, demonstrating strong institutional confidence in the company's prospects.
The offering was managed by prominent financial institutions including China International Capital Corp and CCB International Capital, underscoring the high stakes and market expectations surrounding the listing. Dr. Zhou emphasized that the public listing enhances global credibility, noting that transparency and full disclosure add crucial trust in the healthcare business.
Industry Impact and Future Outlook
Mirxes' successful IPO represents a significant milestone for Singapore's biotechnology sector, which began formal development 25 years ago with government initiatives to establish the Republic as a regional biomedical hub. Dr. Zhou acknowledged that the listing "would not have been possible without the Singapore Government's strong support and consistent investment in life sciences over the years."
The achievement demonstrates the maturation of Singapore's biotech ecosystem, with Dr. Zhou noting that while established biotech hubs like Boston and San Francisco developed over 50 years, Singapore's 20-year journey is reaching a point where more companies should follow Mirxes' path to public markets. The success validates Singapore's technological capabilities and positions the country's biotech sector for continued growth and international recognition.
