Singapore Institute of Advanced Medicine exploring new business areas, optimistic for 2025

SINGAPORE – Beleaguered cancer-treatment firm Singapore Institute of Advanced Medicine has plans in place to make 2025 a better year than the troubled 12 months it just endured.

The firm, which listed here in early 2024, aims to be included on more insurance panels to help spread word of its services and make new technologies available to patients.

It also wants to explore new business areas, such as working with research centres and taking part in drug trials, to create other revenue streams.

The turnaround strategy comes after an auditors’ report on Dec 9 cited material uncertainties that cast doubt on the firm’s ability to stay afloat.

The healthcare group had reported on Oct 30 that it racked up losses after tax of $37.4 million for the 12 months to June 30, 2024, from continuing operations. Current liabilities exceeded current assets by $7.9 million as at the same date.

The company responded by announcing on Dec 12 that it had set up a strategic review committee to look into improving its performance.

The Catalist-listed company said in a Dec 26 Singapore Exchange (SGX) filing that there was no guarantee that it could generate “significant” revenue or profitability. There was also no assurance that even if it was profitable, it could sustain that profitability.

The company was founded in 2011 and focuses on diagnosing and treating various diseases and health conditions, including cancer.

Founder and chief executive Djeng Shih Kien told the company’s annual general meeting (AGM) on Dec 27: “Using cutting-edge and new technologies requires education and adoption by doctors, which has been slower than expected.

“Our performance has not met your expectations, nor mine, and I understand your frustration and disappointment.”

He noted that Singapore has about 17,000 new cancer cases every year, with about 60 per cent needing radiation therapy.

A further 10 per cent to 15 per cent of this group will be suitable for proton therapy. The firm provides this treatment, but it has yet to see the expected number of patients.

Dr Djeng said a key issue is that the centre and its doctors have not been empanelled by insurance providers.

“Many insurance companies have rejected our empanelment application outright, but our perseverance over many, many months has finally shown some result with two insurance companies,” he said.

“We will continue our efforts to be empanelled by the other insurance providers.”

He told The Straits Times on the sidelines of the AGM: “We are all disappointed by the slow uptake (of the company’s services)... Unfortunately, we did face reality, and it is slower than what we have expected.”

But he said he was still confident in the firm, because healthcare remains essential to everyone. He also hopes that when the other two proton therapy centres in Singapore get busy, there will be a spillover effect.

There are three centres offering proton beam therapy for cancer treatment here – Mount Elizabeth Novena, the National Cancer Centre Singapore and the Singapore Institute of Advanced Medicine’s facility in Biopolis.

Singapore Institute of Advanced Medicine chairman Vernon Khoo said: “I think the business over time will definitely improve, as people become more aware of our presence and what we can offer.

“But how quickly it will improve is something which will be dependent on empanelment and a lot of other issues.

“Like all businesses, we need the increase in patients and revenue to hopefully come earlier rather than later.”

He noted that there is always demand in the healthcare business, but the company faces the disadvantage of being a standalone centre rather than being part of a hospital group.

He hopes that when the public gains more awareness of the firm, people will be confident in coming forward for treatment.

“With the learning process that we had from the bad results last year, we are quite confident that we can at least improve this year for sure.”

Other ways that the company will move forward is in working with more medical referral and concierge service providers, while forging more partnerships with healthcare providers. It has already signed medical service agreements with Raffles Hospital.

It will also provide services to leading research and technology companies, such as the National Cancer Centre Singapore, and is in discussions with other companies on drug trials.

“This will provide a long-term and secure stream of revenue for our company,” Dr Djeng said.

The company also intends to introduce new services like treating non-melanoma skin cancers that do not require surgery, while exploring new technologies that can treat various cancers in the future.

When asked if the company regrets its initial public offering (IPO) in February, Mr Khoo said: “Whether we regret or don’t regret listing is irrelevant... What’s more important is where we go from here, trying to make sure that the business does well.

“We should work harder and reflect on the experiences that we have had over the last year, improve on them... rather than regretting.”

Its IPO raised $26.2 million, the highest among the four listings on the SGX in 2024.

The company’s shares closed flat at 5.5 cents on Dec 27, a far cry from its listing price of 23 cents.