SINGAPORE – Singapore-listed medical technology company UltraGreen.ai’s shares have more than halved since its listing nine months ago, testing SGX’s push to attract a greater variety of IPOs and underscoring the need for investors to understand the specialised risks before buying into unfamiliar businesses.
The counter last traded at 68.5 US cents on Aug 31, less than half its value when it commenced trading on the Singapore Exchange (SGX) mainboard at US$1.45 on Dec 3, 2025.
UltraGreen.ai is SGX’s largest non-real estate investment trust (REIT) listing in eight years. It’s US$400 million initial public offering (IPO) was also seen as a key step in the bourse’s efforts to draw a greater variety of companies, beyond banks and REITs.
Against this backdrop, UltraGreen.ai’s share-price plunge could be an early test of SGX’s push to attract firms in the “new economy”, comprising technology, biotechnology and healthcare companies.
It also puts the market’s disclosure regime and companies’ investor relations under scrutiny: Are existing requirements sufficient for less familiar and fast-evolving sectors, or do such companies need to provide investors with clearer and more frequent explanations of their unique risks?
Responding to queries from The Straits Times, an SGX spokesperson said that while it does not comment on individual stocks, it is important not to extrapolate the performance of any single company to an entire sector.
“Building a vibrant new-economy sector and ecosystem is a long-term effort that requires many elements to come together, including research coverage, active investor participation, as well as regular and transparent investor engagement and education.”
UltraGreen.ai develops a fluorescent dye called indocyanine green (ICG) that is used by surgeons to monitor blood flow, tissue structures and tumours under near-infrared light.
ICG is most highly sought after for gastrointestinal, oncological and gallbladder surgeries.
The company has regulatory approvals to sell ICG in 46 countries, with the Americas making up 75 per cent of its total revenue amounting to US$87.2 million, according to its results for the first-half of 2026 ended June 30.
UltraGreen.ai reportedly also controls about 83 per cent of the US market for ICG.
ICG technology, however, is not patented in the US, which means that other companies can still obtain approval to legally manufacture and market generic versions. To gain approval, these products must demonstrate that they meet the reference standard set by UltraGreen.ai under US Food and Drug Administration (FDA) regulations.
The market therefore saw Zydus Lifesciences’ FDA approval for an ICG product in August as a significant threat to UltraGreen.ai’s US dominance, and shares of the company plunged.
Zydus now has a 180-day exclusivity period during which the FDA will not approve any other generic applications for an ICG product.
However, if Zydus does not commercially market its ICG product within 75 days of receiving its FDA approval on Aug 4, its 180-day exclusivity period would be completely forfeited.
The regulatory framework is intended to promote competition and address market failures in the pharmaceutical industry, where a sole manufacturer may otherwise wield significant control over prices and supply.
UltraGreen.ai, for example, has raised the prices of its ICG product three times since 2023.
Necessary hurdle
While new-economy sectors such as biotechnology and medical technology are expected to drive SGX’s future growth, investors are still learning how their business models work and what determines their growth and risks, analysts noted.
Specialised biotech and medtech companies can be particularly complex, requiring investors to consider a wide range of scientific, clinical and commercial factors.
“While this learning curve may weigh on investors in the short term, it is a necessary hurdle to cross if the Singapore market wishes to diversify beyond banks and REITs,” said Amova Asset Management senior equity analyst Kathy Ng.
To help investors have a better understanding of their business, listed new economy companies should also improve their communication and disclosure to shareholders.
Ng noted that management could have addressed the potential US competition arising from the recent FDA approval more proactively, rather than leaving investors to learn about it through research reports and the media.
For example, its first-half earnings report, released on Aug 12, was a “timely opportunity” to address these concerns and “control the narrative by framing the competitive landscape, communicating potential implications of generic entry, and setting appropriate investor expectations around this risk.”
If UltraGreen.ai had done so earlier, its share price reaction may not have been so adverse, Ng said.
In a statement to calm the market on Aug 24, UltraGreen.ai’s chief executive Ravinder Sajwan said that the Zydus development has yet to pose a major concern to the business.
“FDA approval is an important regulatory milestone, but does not, in itself, indicate commercial launch, customer adoption or market penetration.”
He added that UltraGreen.ai would calibrate its commercial response according to how new competitors enter the market, including their pricing, distribution strategies and value propositions to customers.
Responding to queries from ST, Sajwan said that the company will continually review its investor engagement, and will look for appropriate opportunities to provide further context on its markets, competitive positioning and progress against its business strategy.
Risks “adequately disclosed”
While news of UltraGreen.ai’s potential new competitor may have come as a rude surprise to investors, the company had already outlined some of the risks involved in its November 2025 IPO prospectus.
Hashim Osman Bin Jamsheed, a research analyst at Phillip Securities Research, said UltraGreen.ai had adequately disclosed the risks to its business, with the share price decline showing that investors are now factoring the impact of those risks into the company’s value.
Notably, it had identified the lack of independent patent protection for its ICG product as a considerable risk to its business and operations. It also acknowledged that the marketing exclusivity for ICG had already expired, allowing multiple generic manufacturers to enter the market.
“If other companies decide to manufacture and/or market such products in competition with us, our sales and our growth prospects may decline, which could have a material adverse effect on our business, financial condition, results of operations and cash flows,” it said.
It added that none of its key competitors’ ICG products are subject to independent patent protection as well and new entrants face significant barriers to entry, including a lengthy regulatory approval process, as they are required to obtain relevant authorisations and regulatory approvals.
The prospectus also added that the company does not expect the lack of independent patent protection for its ICG product to have negative implications on its competitive advantage in key markets.
It also highlighted the risk stemming from ICG being its flagship product and key revenue contributor, with the company’s future growth dependent on its ability to increase penetration and expand the product’s applications.
In addition, a significant proportion of its revenue hinges on pharmaceutical wholesalers in the US. Any significant decrease in revenue from any such wholesaler could adversely affect its business, cash flows and financial condition, it noted.
Will UltraGreen.ai’s share price recover?
Ng said UltraGreen.ai’s share price appears to have already factored in the worst-case scenario in the short term.
Over the longer term, however, much will depend on how quickly its competitors can bring their products to market, increase supply and gain market share, as well as how UltraGreen.ai responds.
Sajwan told ST that important considerations for surgical products include product quality and safety, clinical experience, familiarity with product, and confidence in the supplier.
Changes in hospital practice may also require clinical evaluation, formulary review, procurement approval, staff education, and confirmation that established imaging workflows continue to perform consistently, he said.
This means that regulatory approval or a lower headline price will not necessarily prompt hospitals to switch suppliers immediately or on a large scale.
UltraGreen.ai’s longstanding relationships with hospitals and doctors will therefore be a key advantage, Ng said.
UltraGreen.ai management’s commitment to share buybacks during this period of “weakness” is also testament to the company’s fundamentally strong underlying business, said Phillip Securities’ Hashim, and should help to cushion further downslide in the share price.
On Aug 24, the company announced that it had purchased 1 million shares from the open market for over US$712,000. As at Aug 26, it now owns 2.8 million treasury shares translating to 0.3 per cent of the company’s total issued shares.
