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State of Medicon Valley 2016 STATE OF MEDICON VALLEY 2016 An Analysis of Life Science in Greater Copenhagen PREFACE Life science in Denmark and Sweden has developed in different directions over the past decade. Danish life science exports doubled in seven years, and last year they were nearly 50% greater than Swedish. The number of employees has risen, and thanks to a well-developed system with industrial foundations, the large companies’ headquarters and major shareholders are still in Denmark. At the same time in Sweden, more large companies are now foreign-owned, the largest headquarters have left the country and more important operations have either shrunken in scale or closed down, and the number of employees in the sector has diminished. But there are signs of a change for the better in the university city Lund as well as in Södertälje, Stockholm and Uppsala, visible with for example new biotechnology companies, new research facilities and new investments in the R&D of biological medicines. It is part of a new phase in the life science sector’s global transition, and it is also perceptible in Denmark as the simultaneous reports of cutbacks and the hiring of new competence. Medicon Valley Alliance is also in a transitional phase, with a new strategy that focuses more on our role as a networking organisation for the life science cluster on both sides of the Öresund. Part of our upgraded ambition is to increase knowledge about the compa- nies and research in Medicon Valley. This is the first edition of our new annual analytic report State of Medicon Valley, which offers a unique presentation of life science develop- ments in our region, on a macro- as well as a micro-scale. Measuring developments in a sector like life science is a challenge; there are no clearly defined statistical definitions for the sector, and there are also overlaps, which further increases the complexity. That makes this analysis more important than ever. The analysis reveals that Greater Copenhagen has developed into the leading Nordic regi- on for life science in the past ten years. The majority of the Danish life science companies are located in the Region, and Medicon Valley overshadows the other Nordic countries when it comes to the number of international patent applications for life science. On the STATE OF MEDICON VALLEY 2016 other side of the Strait in the Skåne region, a new beacon is being erected with the new materials research facilities ESS and MAX IV, which will become an important resource An Analysis of Life Science in Greater Copenhagen for the Region’s life science companies. There is also fertile ground for new companies in the Region’s many established and emerging science parks such as COBIS, Scion DTU, Commissioned and published by: Medicon Valley Alliance. Symbion, Medeon, Medicon Village and Ideon. This analysis has been prepared by Øresundsinstituttet and was written by Britt Andresen, Johan Wessman, Jenny Andersson, State of Medicon Valley 2016 is the first of a long-term analysis collaboration between Anna Palmehag and Thea Wiborg. Layout: Jenny Andersson. Medicon Valley Alliance and Øresundsinstituttet. The analysis will be released every year, Cover photo: Genmab and each year will bring an in-depth investigation of a new topic. Special reports are plan- ned for release throughout the year. The analysis is part of an open process, where you – the sector’s players – are welcome to contribute with your points of view and reflections. November 2016 Copenhagen and Malmö 7 November 2016 Petter Hartman CEO Medicon Valley Alliance PHOTO: BAVARIAN NORDIC BAVARIAN PHOTO: TABLE OF CONTENTS 1. SUMMARY ..................................................................................................................... 6 2. LIFE SCIENCE IN SWEDEN AND DENMARK ............................................................... 10 3. LIFE SCIENCE IN MEDICON VALLEY ........................................................................... 24 4. THE BEACONS OF MEDICON VALLEY ......................................................................... 32 5. NEW COMPANIES IN MEDICON VALLEY ..................................................................... 46 6. BENCHMARK OF RESEARCH QUALITY ......................................................................... 52 7. ATTRACTING AND KEEPING TALENT ............................................................................ 64 8. ANALYSIS .................................................................................................................... 72 9. APPENDIX ................................................................................................................... 88 - STATISTICS AND METHODOLOGY ................................................................................... 89 - INTERVIEW LIST............................................................................................................... 92 - LARGER MEETINGS AND CONFERENCES ..................................................................... 93 - REPORTS AND FACTS ..................................................................................................... 94 - ORGANISATIONS .............................................................................................................. 96 - REFERENCE LIST ............................................................................................................ 98 PHOTO: BAVARIAN NORDIC BAVARIAN PHOTO: SUMMARY 35 700 NEWS ØRESUND PHOTO: was the number of employees at life science companies in Medicon Valley in LUNDBECK PHOTO: 2014. That is equal to 53% of the total number of employees in the life science industry in Denmark and Sweden. The number of employees has increased by 4% since 2008. Novo Nordisk was Medicon Valley’s tallest beacon with its almost 40 000 employees in December of 2015. In the same year, plans 124 500 employees in were made for several billion-crown invest- the health care sector ments in new facilities. Recently however, the company announced that it was no The health care sector in the Greater longer hiring, later cutting 1 000 jobs, 500 of Copenhagen Region employs 124 500 which were in Denmark. people, some 85 000 of whom are in Eastern Denmark. That means that TRANSITION TIME close to 160 000 people in the region work within life science and health FOR MEDICON VALLEY care. In addition to those are resear- chers at the region’s universities. 50% In the past 10-15 years, Medicon Valley has grown to be the Danish life science exports are nearly 50% strongest Nordic life science cluster. There have been succes- greater than Swedish. Danish pharmaceu- ses for the four big pharmaceutical companies Novo Nordisk, tical exports and health technology will H. Lundbeck, Ferring and LEO Pharma, and there is a new surpass agricultural exports in a few years. wave of biotech companies that emerged around the turn of the millennium. During the financial crisis, pharma companies continued to grow with Novo Nordisk at the forefront, and the – The conditions, with high tax rates and over- biotech wave temporarily lost its power. PHOTO: NEWS ØRESUND PHOTO: head costs are miserable. No-one would start Medicon Valley is now in a period of transition. Novo Nordisk a pharmaceutical company in Denmark today, is confronting more price pressure in the USA with staff cut- says Kåre Schultz, CEO of Lundbeck and chair- backs, while last year the company also decided to make a number of billion-crown investments. H. Lundbeck is rising from man of the Danish government’s life science a dip with a renewed patent portfolio. LEO Pharma is letting off growth team. See interview on page 78. 400 and hiring 200 to adjust competence to the new biological medicines, and the company is investing in an innovation lab in the USA where the interface between pharmaceuticals and 22 billion Swedish crowns are apps for medicine use are being developed. On the shore of the Öresund, next to Copenhagen’s international airport in Kastrup, being invested in ESS and MAX IV 2x Ferring Pharmaceuticals is setting its roots around the Öresund Medicon Valley is on top in with a billion-crown investment in the new research facility faci- Medicon Valley is getting a new beacon – the two facilities Denmark and Sweden, submit- lity Soundport. The region’s science parks continue to grow and for materials research MAX IV and ESS in Lund, with ESS’ ting the greatest number the new biotech companies have also picked up growth again. data management centre in Copenhagen. The facilities of patent applications to EPO And the regions new beacon is rising in Lund: the materials will improve the balance within Medicon Valley; Zealand and with more than two times as research facilities MAX IV and European Spallation Source, ESS. dominates industrially, but Lund is growing into a centre many patent applications than for the natural sciences. Stockholm-Uppsala region. STATE OF MEDICON VALLEY • November 2016 7 SUMMARY SUMMARY Things are going well for Danish life science. Not so making cutbacks. Cost-consciousness has definitely research in the natural sciences as main purpose. with ESS’ data management centre in Copenhagen. for Swedish life science. That has been the general reached the life science sector. Zealand is significantly larger than Skåne if the Interestingly, there are Danish investments in both picture of life science in the two countries for the past One area that is often unduly neglected is municipalities around Copenhagen are included. research facilities that are clearly linked to the pos- ten years. Novo
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