STATE OF MEDICON VALLEY 2017 An Analysis of Life Science in Greater Copenhagen PREFACE Danish-Swedish Medicon Valley continues to reinforce its position as Scandinavia’s leading life science region. The life science sector in the Greater Copenhagen region has demonstrated a strong ability to get through crises, as well as a capacity for renewal. In this year’s edition of State of Medicon Valley, we show how sector drift is also becoming discernible in the regions’ science parks, and the possibilities that materialise when biology and IT meet in new domains like e-health. The life science sector is important for the region, and for Denmark and Sweden on the whole. It generates exports, new jobs, and substantial tax revenue. MVA’s analysis shows that the tax contribution for the Danish life science sector is 15,4 billion DKK for 2015. The corresponding figure for the Swedish life science sector is 11,6 billion SEK. Despite problems with pricing pressure and increased competition in the USA, we see that Novo Nordisk is continuing to grow on its home turf as well, as are Lundbeck and Ferring. The influx of new companies at Copenhagen Bio Science Park, COBIS, is stronger than ever, and the new companies are following the new trend: they are small, virtual and technology-oriented. On the Swedish side of the Öresund Strait in Lund, Medicon Village is growing so rapidly that a new building is being constructed. Owner foundations such as Novo Nordisk Foundation, Lundbeck Foundation and LEO Foundation are demonstrating solid responsibility for the sector with large donations to life science research, as well as investments in new biotech companies. Looking at the countries comparatively, we see that Danish life science is continuing STATE OF MEDICON VALLEY 2017 to grow in terms of exports, as well as the number of employees, whilst Swedish life science exports are losing momentum after an upswing in 2015. An Analysis of Life Science in Greater Copenhagen Denmark and Sweden are currently competing with one another and a number of other countries as they vie for the appointment as the new host nation for the European Medicines Agency, EMA. Competition between the two countries instead of collaboration, Commissioned and published by: Medicon Valley Alliance. is unfortunate and can negatively impact the chances of EMA being placed in Scandi- This analysis has been prepared by Øresundsinstituttet and was navia. The situation illustrates that work still needs to be done to strengthen relations written by Jenny Andersson, Britt Andresen (chief analyst), and improve willingness to communication between Sweden and Denmark. A stronger Anna Palmehag and Johan Wessman. collaboration between the countries is absolutely vital for reinforcing the life science Project manager: Jenny Andersson. industry’s competitive power in Scandinavia in general, and in Medicon Valley specifically. Translation: Justina Bartoli. Cover photo: Novo Nordisk. State of Medicon Valley 2017 is part of an ongoing analytic collaboration between Medi- con Valley Alliance and Øresundsinstituttet that commenced last year. This annual report November 2017 is also supplemented by an interim report, where the focus is life science research at the universities and research centres in the Öresund Region/the Greater Copenhagen region. Copenhagen and Malmö 10 November 2017 Petter Hartman CEO Medicon Valley Alliance PHOTO: NOVO NORDISK NOVO PHOTO: TABLE OF CONTENTS 1. SUMMARY ..................................................................................................................... 6 2. TAX CONTRIBUTION .................................................................................................... 10 3. FACTS AND FIGURES ................................................................................................... 16 4. BIOTECH IN FOCUS ...................................................................................................... 28 5. THE BEACONS OF MEDICON VALLEY ........................................................................ 46 6. IN-HOME MEDICAL CARE ........................................................................................... 58 7. RESEARCH IN MEDICON VALLEY .............................................................................. 68 8. ANALYSIS ................................................................................................................... 80 9. APPENDIX ................................................................................................................... 90 - STATISTICS AND METHODOLOGY ................................................................................... 91 - INTERVIEW LIST............................................................................................................... 96 - LARGER MEETINGS AND CONFERENCES ..................................................................... 97 - REPORTS AND FACTS ..................................................................................................... 98 - ORGANISATIONS ............................................................................................................. 100 - REFERENCE LIST ........................................................................................................... 102 PHOTO: NOVO NORDISK NOVO PHOTO: SUMMARY 41 300 NEWS ØRESUND PHOTO: was the number of employees at life PHOTO: GENMAB PHOTO: science companies in Medicon Valley in 2015. That is equal to 58% of the total number of employees in the life science industry in Denmark and Sweden. The number of employees has increased by 3.6% under 2015. It’s been a good year for Copenhagen Bio Science Park, COBIS. Forty new companies have moved in, 126 200 employees in and at the end of October the tenant Orphazyme THE SUCCESSES CONTINUE made it known that it had sent an intention to float the health care sector announcement to inform that they plan to offer IN MEDICON VALLEY shares on Nasdaq Copenhagen later this year. The health care sector in the Greater Copenhagen Region employs 126 200, It can be hard to adjust to a lower speed when you’ve been some 85 300 of whom are in Eastern going fast. In its strong years, the life science industry in Denmark. That means that close to the Danish-Swedish Medicon Valley counted new jobs in the 167 500 people in the region work thousands. Now that the sector giant Novo Nordisk has had within life science and health care. In 6.3% problems in the USA and the biotech sector has matured, addition to those are researchers at Danish life science exports continued their the new jobs are in the hundreds. The important thing is that the region’s universities. growth trend through 2016 with a growth new jobs – and new companies – are still being created. Bio- rate of 6.3%, while Swedish life science tech companies are in the midst of a new boom, but this time exports dropped 2.7%. it’s all about virtual companies with few employees. The science park COBIS in Copenhagen has had a record number of new companies as tenants, but they are small in terms of – Biotech is closely associated with risks. Since the number of employees. The same goes for Medicon Villa- the turn of the millennium, anything risky has had ge in Lund, which can boast 19 listed companies. a hard time on the stock market. Slowly however, The interest in the life science sector is greater than it has PHOTO: NASDAQ COPENHAGEN NASDAQ PHOTO: we have been able to see how biotech companies been for a long time. That is apparent in a variety of ways. that were listed in Denmark around the start of At Copenhagen Bio Science Park, COBIS, the influx of new the millennium, such as Bavarian Nordic, No- companies is record-high, says CEO Morten Mølgaard Jensen. vozymes and Genmab, have done increasingly In the past year, there have been 40 new companies. But they better, says Carsten Borring, Head of Listing and are small, virtual companies, and the majority of them are not Capital Markets at Nasdaq Copenhagen. strictly biotech companies; often, they have more of a technolo- gy company character. Sector drift is increasingly noticeable. Of the companies at COBIS, the one that has attracted 15,4 bil. DKK the most attention is Orphazyme, since it announced its IPO The tax contribution for the Danish plans and a planned new share issuance of 600 million DKK in life science sector is 15,4 billion GENMAB PHOTO: October. In Lund, Medicon Village can count 19 listed compa- +410% nies on its fifth anniversary. In 2016, 15 companies at Medicon DKK in 2015. Village brought in a total of one billion SEK in new issues. The interest in investing in stock is strong among private citizens in Sweden, and there are many business angels. As a result, 11,6 bil. SEK Genmab’s share price many Danish companies are looking to the north and listing The tax contribution for the Swedish development in the their shares on Nasdaq or Aktietorget in Stockholm. life science sector is 11,6 billion past three years SEK in 2015. STATE OF MEDICON VALLEY • November 2017 7 SUMMARY SUMMARY The Swedish interest in the stock market has a and one-third in Sweden. The Novo Nordisk Founda- in Copenhagen. With regard to EMA, Sweden the dominant life science region in Scandinavia. long history. A favourable savings method in terms tion is a very important player in the region. The foun- chose to run a campaign of its own in competition The Danish life science sector’s leading position of tax called the Allemansfond (every-man’s fund) dation is a main shareholder in the successful Danish with the Danish