Denmark and Sweden Shine as Bright Spots in Europe's Pharmaceutical Industry
Denmark and Sweden are rare bright spots for Europe's pharmaceutical industry.
Danish pharmaceutical company Novo Nordisk, based in Copenhagen, has recently become the second biggest business in Europe, thanks to strong sales of its obesity drugs.
The pharmaceutical sector in Denmark has grown by more than double in the past decade, reaching €19 billion and accounting for a fifth of the country's total exports.
In Sweden, pharmaceutical exports have also grown by two-thirds in the same period.
This growth is attributed to a combination of government funding for research, a nurturing cluster of universities and hospitals, and the help of bigger companies in the field.
Novo Nordisk, which is controlled by the Novo Nordisk Foundation, a not-for-profit structure with philanthropic goals, is a prime example of the success of this model.
The company's success has created a vibrant scientific research hub, and its profits are reinvested into research projects.
The government also plays a significant role, with both Denmark and Sweden dedicating over 3% of their GDP to research and innovation, putting them among the top in the world for R&D investment on a per capita basis.
This has helped to create a strong biotech ecosystem, with a high number of early-stage biotechs in Sweden and a large number of medicines being researched in Europe, ahead of larger countries like the Netherlands and Italy.
Sweden's pharmaceutical industry has suffered a significant loss with the relocation of AstraZeneca's research headquarters to the UK.
However, the Swedish government has taken steps to preserve the pharmaceutical ecosystem and support start-ups, such as Anocca who is developing advanced technology to modify the genetic code of immune cells to target tumors.
The notoriously high quality of life in Sweden can also help attract foreign talent, with 70% of hires being foreign.
Sweden's strength as an IT hub has also benefitted the industry, with Anocca employing a growing number of software developers.
However, the success of developing a drug and launching it on the market is a challenging and costly process that takes 10 to 20 years and can cost a billion euros in research and investment.
Despite this, Sweden and Denmark are currently riding the pharma wave and with the latest wave of new biotechs getting off the ground, their position in the quality and number of cited papers could change.
However, as any veteran biotech investor knows, plenty of much-hyped experimental drugs have turned out to be duds.
The pharmaceutical sector in Denmark has grown by more than double in the past decade, reaching €19 billion and accounting for a fifth of the country's total exports.
In Sweden, pharmaceutical exports have also grown by two-thirds in the same period.
This growth is attributed to a combination of government funding for research, a nurturing cluster of universities and hospitals, and the help of bigger companies in the field.
Novo Nordisk, which is controlled by the Novo Nordisk Foundation, a not-for-profit structure with philanthropic goals, is a prime example of the success of this model.
The company's success has created a vibrant scientific research hub, and its profits are reinvested into research projects.
The government also plays a significant role, with both Denmark and Sweden dedicating over 3% of their GDP to research and innovation, putting them among the top in the world for R&D investment on a per capita basis.
This has helped to create a strong biotech ecosystem, with a high number of early-stage biotechs in Sweden and a large number of medicines being researched in Europe, ahead of larger countries like the Netherlands and Italy.
Sweden's pharmaceutical industry has suffered a significant loss with the relocation of AstraZeneca's research headquarters to the UK.
However, the Swedish government has taken steps to preserve the pharmaceutical ecosystem and support start-ups, such as Anocca who is developing advanced technology to modify the genetic code of immune cells to target tumors.
The notoriously high quality of life in Sweden can also help attract foreign talent, with 70% of hires being foreign.
Sweden's strength as an IT hub has also benefitted the industry, with Anocca employing a growing number of software developers.
However, the success of developing a drug and launching it on the market is a challenging and costly process that takes 10 to 20 years and can cost a billion euros in research and investment.
Despite this, Sweden and Denmark are currently riding the pharma wave and with the latest wave of new biotechs getting off the ground, their position in the quality and number of cited papers could change.
However, as any veteran biotech investor knows, plenty of much-hyped experimental drugs have turned out to be duds.
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