Market Information
Europe

Biotechnology Sector Profile: Denmark

May 2002

David Scott Horup
Business Development Officer
The Canadian Embassy
Kristen Bernikows Gade 1
1105 Copenhagen K, Denmark
Tel.: (011-45) 33-48-3258
Fax: (011-45) 33-48-3221
E-mail: david.horup@dfait-maeci.gc.ca
Internet: http://www.canada.dk 

Market Overview

Denmark, a small country of 5.2 million-which promises tremendous buying power-is located north of Germany and borders on Sweden. As one of Europe's wealthiest and most dynamic markets, Denmark is a trading nation that relies heavily on international trade. One of the main economic drivers of the country is its life sciences industry, which not only generates major export revenues but is also a major source of employment in production, and research and development (R&D). Denmark has strong capabilities in several niche areas, including diabetes, genetics/cloning, enzymes, CNS disorders, and, in terms of medical devices, hearing aids and medical disposables.

Opportunities

Biotechnology in Denmark is predominantly (but not exclusively) associated with the "Medicon Valley." This impressive life sciences cluster, situated in Greater Copenhagen on the Danish side and in Skaane on the Swedish side, represents one of Europe's largest pharmaceutical, medical devices and biotechnology clusters. (One of the world's largest bridges between Denmark and Sweden has served to consolidate the transborder synergies of this regional cluster.)

Medicon Valley is the largest pharmaceutical and biotechnology growth centre in Scandinavia and one of the strongest in Europe. Approximately 60% of Scandinavia's biotechnology/pharmaceutical industry is located in the Medicon Valley. The region is home to a significant number of pharmaceutical and biotechnology companies (including Astra Zeneca, Novo Nordisk and Lundbeck), 26 university hospitals and 12 universities, of which Lund University is the largest and most diverse in northern Europe.

More than 30,000 people work in the medical industry in Medicon Valley, including 4,000 researchers with advanced academic degrees. There are also more than 135,000 students in the region.

In recent years, the number of new biotechnology companies in Denmark has increased significantly, with the addition of both local companies and subsidiaries of foreign biotechnology companies.

In addition to the Medicon Valley focus, there are currently two other rapidly growing, albeit smaller, concentrations of biotechnology in Denmark. A Canadian company, MDS Proteomics, is located in the City of Odense and focuses on proteomics. MDS has located its European R&D centre here and has installed an impressive array of Linux servers. The second fast-growing biotechnology cluster in Denmark is in the city of Aalborg, where the university has spun off several promising biotechnology firms. Denmark has been highly successful in attracting foreign biotechnology investors. The latest example is BioGene, which will be building a major European R&D centre just north of Copenhagen.

Danish biotechnology companies, producers and distributors alike, are generally very keen on exploring partnering opportunities with Canadian companies, since Canada's biotechnology accomplishments are well known in Denmark. A prime venue for partnering with Danish biotechnology companies is the BioScandinavia partnering event, which is held annually in Copenhagen each November. In 2002, it will take place November 14-15. The Embassy highly recommends this event to Canadian companies that are seeking business and strategic partners. (See Information Sources.)

Market Access Considerations

Market access is not an issue in Denmark, since neither tariff barriers nor investment restrictions exist. The Medicon Valley Web site contains information on clinical research procedures and registration legislation. Furthermore, Copenhagen Capacity (the Greater Copenhagen Investment Board), Region Skaane (Southern Sweden's Investment Board) and Medicon Valley are exceedingly helpful in facilitating partnership arrangements and in assisting foreign suppliers.

In addition to local venture-capital financing operations such as the Danish Growth Fund (state-financed) and BankInvest, several large European venture-capital funds now have offices in Denmark.

Major Competition

There is significant foreign focus on the Danish market, and major competition in the biotechnology and pharmaceutical sectors stems from the United States, the United Kingdom, Germany, France and Italy. One should also note that Denmark's domestic biotechnology and pharmaceutical industries are not insignificant, and, in most product areas, competition is strong.

Other Useful Information Sources/Web Sites

Canadian Embassy in Denmark: http://www.canada.dk 

Medicon Valley (local company profiles, regulatory information, business information): http://www.mediconvalley.com 

Copenhagen Capacity (Greater Copenhagen Investment Board-focusing on Biotechnology): http://www.copcap.com 

Invest in Denmark (Denmark's investment organization with biotechnology as a focus area): http://www.investindk.dk 

Region Skaane (Southern Sweden Investment Agency): http://www.invest.skane.se 

Danish Ministry of Health (with some publications in English): http://www.sum.dk 

Danish Association of Diagnostics Suppliers: http://www.dadif.dk 

BioScandinavia Trade Show and Conference: http://www.ebdgroup.com 

For detailed market reports about this sector, please visit http://www.infoexport.gc.ca