The Thriving Biotech and Pharma Ecosystem in the Nordic Region: Evolution, Current Landscape, and Future Outlook

The Nordic region, comprising Denmark, Finland, Iceland, Norway, and Sweden, has emerged as a powerhouse in the global biotech and pharmaceutical industry. Defined by innovation, research excellence, and a supportive ecosystem, this region has undergone significant evolution in recent years. From humble beginnings, the Nordics' biotech and pharma sector has grown into a dynamic hub for research, development, and commercialization. In this article, I dive into the evolution of the sector, its current state, and its promising outlook for the future.?

Evolution of the Nordic biotech and pharma sector

The rise of the biotech and pharmaceutical industry in the Nordic region can be traced back to the late 20th century when universities and research institutions started nurturing innovation. Collaborative efforts between academia and industry played a pivotal role in facilitating knowledge transfer and talent development, which laid the foundation for growth.

Over the past two decades, the Nordic countries have collectively invested in research and development, resulting in a surge of startups and spin-offs in the biotech and pharma space. According to the Nordic Life Science Database, there are currently over 1,000 life science companies in the region, in various stages of development, from early-stage startups to well-established enterprises.

Current landscape of the Nordic biotech and pharma ecosystem

The Nordic region excels in biotech R&D due to several factors. Notably, the government's substantial investment in research and development, averaging around 3% of GDP (Worldbank Group), has laid a robust foundation for innovation. The presence of a highly educated and skilled workforce, with a strong science and technology focus, further bolsters the biotech sector. Finally, a supportive regulatory environment facilitates the introduction of new products to the market.

The biotech and pharma ecosystem in the Nordic region can be characterized by several key factors and I have selected them based on my previous article - 10 success criteria that characterize a successful biotech ecosystem.?

1. Strong research and development (R&D)

As far as patents go, the Nordic region has a strong track record. In 2022, the Nordic countries filed a total of 420 European patents in the biotech sector compared to Germany (770), GB (283) and the US (2756) based on the EPO statistics.

The following are some of the most notable biotech patents that have been filed in the Nordic region in recent years:

• Lundbeck : In 2020, Lundbeck filed a patent for a new treatment for Alzheimer's disease. The treatment is based on a novel mechanism of action and has the potential to be a major breakthrough in the treatment of Alzheimer's.
• 诺和诺德 : In 2021, Novo Nordisk filed a patent for a new treatment for type 1 diabetes. The treatment is based on a new way of delivering insulin and has the potential to make insulin therapy more effective, and easier to manage for people with type 1 diabetes.
• 阿斯利康 : In 2022, AstraZeneca filed a patent for a new treatment for cancer. The treatment is based on a novel immunotherapy approach and has the potential to be a major breakthrough in the treatment of cancer.

The Nordic region is well-positioned to continue being a leader in biotech R&D in the following years.

1. Collaboration and networking?

Collaboration among academic institutions, research organizations, biotech companies, and government bodies is crucial for the development of the biotech sector. The Nordic countries have a strong track record of collaboration in this area, which has helped make them a global leader in biotech innovation.

A 2020 report by the Nordic Innovation Fund found that the Nordic countries had the highest level of collaboration between biotech companies and academic institutions in Europe. The report also found that the Nordic countries were home to a number of successful biotech clusters, such as the Medicon Valley in Denmark and Sweden. Here is a great article from Labiotech.eu about this unique cluster: "Medicon Valley: how the initiative shaped biotech ecosystems in Denmark and Sweden"

Here are examples of successful collaborations in the Nordic biotech sector:

• The Novo Nordisk Foundation Center for Biosustainability ( DTU Biosustain ): This center is a collaboration between Novo Nordisk, the Technical University of Denmark, and the University of Copenhagen. The center is focused on developing new bio-based technologies for the production of sustainable chemicals and materials.
• The AstraZeneca BioVentureHub : The hub provides emerging companies and academic groups a unique opportunity to co-locate and interact with AstraZeneca experts, and with each other, to advance life science, health care and the wellbeing of patients.
• The Nordic Network for Early-Stage Clinical Trials in Biomarkers: This network is a collaboration between Nordic hospitals, research institutes, and biotech companies. The network is focused on facilitating early-stage clinical trials in biomarkers.

1. Investment and funding?

The Nordic countries have attracted significant investment in the biotech and pharma sectors. In 2022 alone, the region received over €800 million in venture capital funding for life science startups, according to BIO-Europe Nordic. Denmark ranks as one of Europe's most rapidly expanding countries in the biotech investment landscape. Venture capital funding in the nation's biotech startups skyrocketed in just one year, reaching $434 million in 2021—an increase of over 100%. Over the past five years, this growth rate has surged by nearly 12 times, making Denmark the second-fastest growing European country in this sector, trailing only behind the Netherlands (Dealroom).

Boasting a cumulative market valuation exceeding $7 billion, the life sciences industries in Sweden and Denmark have flourished in recent years, with the creation of over a thousand new healthcare firms. This growth is largely attributed to Medicon Valley, a transnational cluster encompassing areas of eastern Denmark and southern Sweden. Attracting investments surpassing DKK 45 billion (approximately $6.64 billion), the cluster is the headquarters for Danish global corporation Novo Nordisk, which operates the largest insulin production facility in the world. A pioneer in diabetes care, the company received U.S. FDA approval earlier this year for its diabetes medication Rybelsus as a primary treatment for reducing blood sugar levels (Labiotech.eu).

As mentioned before, the Nordic governments invest heavily in research and development, with the average spending in the region being around 3% of GDP. This investment has helped create a strong foundation for innovation in the biotech sector.

1. Strong regulatory environment:?

The Nordics have a well-established regulatory framework that supports the development and commercialization of pharmaceutical products while ensuring patient safety, and ethical considerations.

The regulatory environment for the biotech sector in the Nordic region is generally considered to be supportive of innovation. The Nordic countries have adopted a risk-based approach to regulation, which means that regulatory requirements are tailored to the specific risks posed by a particular biotech product or service. This approach allows for a more efficient and streamlined regulatory process, that can help speed up the development and commercialization of new biotech products.

The Nordic countries have also made a commitment to harmonize their regulatory requirements with those of other European countries. This harmonization effort is intended to create a single market for biotech products in Europe, which will make it easier for Nordic biotech companies to access new markets.

1. Skilled workforce?

The skilled workforce for the biotech sector in the Nordic region has evolved significantly over the past few years. This evolution has been driven by a number of factors, including the following:

The Nordic countries have some of the highest levels of investment in education and research in the world. In 2021, the Nordic countries spent an average of 5.5% of GDP on education and research, compared to the OECD average of 4.7%. The Nordic countries have been successful in attracting international talent to the biotech sector. In 2021, over 20% of the workforce in the Nordic biotech sector was foreign-born.

As a result of these factors, the skilled workforce for the biotech sector in the Nordic region is now one of the strongest in the world. The region is home to a number of world-leading universities and research institutions, and there is a strong culture of innovation and entrepreneurship. This has made the Nordic region a magnet for biotech talent from all over the world.

1. Enablers - incubators, accelerators, and the existing ecosystem

The Nordics are also home to a number of world-leading biotech and pharma companies, such as Novo Nordisk, AstraZeneca, and Lundbeck. These companies are investing heavily in research and development, and are playing a leading role in the development of new treatments for diseases such as diabetes, cancer, and Alzheimer's.

Nordic countries also have many incubators and accelerators that have a significant impact on the biotech landscape. Here are a few of the most notable ones:

Medion Valley Biotech Incubator: This incubator is located in Lund, Sweden, and it is one of the largest biotech incubators in Europe. It has helped launch over 200 biotech companies and provides its members with access to funding, mentorship, and office space.

ShareLab : ShareLab is the premier Scandinavian biotech lab incubator in Oslo for academics, start-ups, and industry, helping build the next generation of Scandinavian biotech startups.

The AstraZeneca BioVentureHub : This hub provides emerging companies and academic groups a unique opportunity to co-locate and interact with AstraZeneca experts, and with each other, to advance life science, health care and the wellbeing of patients.

BioStock Incubator: This incubator, located in Stockholm, Sweden, focuses on early-stage biotech companies. It provides its members with access to funding, mentorship, and office space.

Accelerace : This accelerator, located in Copenhagen, Denmark, focuses on late-stage biotech companies, providing members with access to mentorship, funding, and help with commercialization.

HealthCap Incubator: This incubator, located in Helsinki, Finland, focuses on early-stage healthcare companies, offering its members help with funding, mentorship, and office space.

These are just a few of the many incubators and accelerators in the Nordic countries that are supporting the development of the biotech sector. These organizations are providing early-stage biotech companies with the resources they need to grow and succeed.

Promising outlook and future trends

The Nordic biotech and pharma sector's trajectory remains positive, with multiple trends pointing towards a promising future:

• Advanced therapies: The region is poised to lead in the development of advanced therapies, such as gene and cell therapies, and precision medicine. This aligns with the global shift towards personalized healthcare.
• Digital health integration: The Nordics' expertise in technology and digitalization will likely be integrated into healthcare solutions, leading to improved patient outcomes and streamlined processes.
• Sustainability and green initiatives: The region's commitment to sustainability should extend to the biotech and pharma sectors, fostering the development of eco-friendly production methods and reducing the industry's carbon footprint.
• Increased international collaboration: Nordic companies are likely to forge stronger collaborations with international partners, facilitating knowledge exchange and market access.
• Talent retention and attraction: Efforts to retain local talent and attract international expertise will contribute to a skilled workforce that continues to drive innovation.

Conclusion

The Nordic region's biotech and pharmaceutical ecosystem has evolved from its academic roots into a thriving hub of innovation, investment, and collaboration. With a strong foundation in research excellence, a supportive regulatory environment, and a focus on advanced therapies, the Nordics are poised to maintain their position as a global leader in the life sciences. As the sector continues to evolve, international partnerships, digital integration, and sustainability will shape its trajectory, ensuring a bright future for the Nordic biotech and pharma ecosystem.