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(1)

5 Mars kl. 8.30-10.00

Jenni Nordborg

Göran Andersson

Anna Sandström

Den svenska

Life Science industrin

1998-2012

(2)

Life Sciences…

evolutionary and iterative

innovation processes…

(3)

Take home messages…

• Research and export intensive industry…

• A few large companies are downsizing but

some segments are growing…

• Fewer SMEs…

• Increasing foreign ownership…

• New business models… and new

opportunities

(4)

Medical technology

• Collaboration with healthcare systems necessary for

innovation – throughout the innovation process and

product life cycle

• Emerging markets booming – stagnation in mature

markets

• Consolidation leading to oligopolistic markets

• Systems delivery

• SMEs increasingly partners, suppliers or acquired…

• Adjusting products to specific markets

(5)

Pharmaceuticals

Trends…

• Emerging markets booming – stagnation in mature

markets

• Patents expires – at unprecedented pace

• Generics (Biosimilars) – gaining ground

• Big Pharma downsizing – drastic reduction in employment

• M&A – Big Pharma mergers and acquisitions of SMEs

• Radical innovation – radical risks

• Unmet medical needs – e.g. pain, cancer, CNS

• New targets, new technologies – new opportunities

• Cost containment procedures

(6)

Pharmaceuticals

Reducing the risks…

• Orphan drugs

• Reformulation & New indications & Combinatory

medicine

• Downsizing in-house R&D

• Partnering; Big Pharma, SME, academia etc.

• Open platforms

• Personalised/stratified medicine using companion

diagnostics

(7)

Highest proportion of

R&D investments

[10%] * in relation to

employment

Highest proportion

of PhDs [18%] *

…and highest firm

participation in FP7**

Highest R&D

personnel proportion

[8%] in relation to

employment *

High value added

products

High exports in

relation to

employment

[7,7 % ]

The employment is

one third of

automotive and

less than one

fourth of ICT **

Characteristics

[proportion of Swedish industry]

* Pharmaceuticals compared to ‘automotive’ and ‘computers, electronics and optics’

(8)

-550

-70

-37

222

-88

125

29

-77

-203

-133

-239

39

-198

-24

48

-25

Development of employment

Total number of employees in 2012: 40 764

0

5 000

10 000

15 000

20 000

25 000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of employees

25 000

20 000

15 000

10 000

5 000

0

Relative change in

employment since 2009

[%]

In total: -5.2 percent in employment (-2 242 employees) since 2009

Assistive products for persons with disability

Information and communication tools

Radiation and imaging devices

Electromechanical medical devices

Anaesthetic and respiratory devices

Implantable devices - active and non-active

Healthcare facility products and single-use products

Agro-, environmental and food related biotechnology

Biotech production

Biotech tools and supplies

CRO

Biotech medical technology

In vitro diagnostics

Drug discovery, development, delivery and production

Absolute

change in

employment

since 2009

-4.1

38.9

-7.8

7.9

4.9

-3.0

-6.0

-19.7

-22.5

1.8

-18.7

-3.0

3.9

-0.4

-1563

-118

1998 2000 2002 2004 2006 2008 2010 2012

-20,1

AstraZeneca

(9)

AstraTech (US)

Dynamics

in recent

years…

AstraTech – Dentsply (US)

Q-Med – Galderma (CH)

St Jude Medical (US) – Malaysia

Phadia – Thermo Fisher Scientific (US)

Atos Medical (LU)

Cellartis – Cellectics (FR)

Sectra Mamea – Philips (US)

Duocort

Premacure AB

Gambro – Baxter (US)

Becton Dickinson (US) – Indien, Singapore

and Mexiko

Carmel Pharma (US) – Spanien

Cochlear (AU)

CLOSING OR DOWNSIZING IN SWEDEN:

NEW OWNER:

GROWING OR INVESTING:

Bactiguard (SE)

Elos Medtech (SE)

Elekta (SE)

St Jude Uppsala

Fresenius (DE)

Two companies in the Getinge group (SE)

– Kina och Polen

Nobel Biocare (CH)

– CH, US, CA

Octapharma (CH)

Mölnlycke (SE)

Recipharm (SE)

Cepheid AB (US)

Hemocue AB (US)

Vitrolife (SE)

Maquet (SE)

)

Carmel Pharma – Becton Dickinson (US)

(10)

41.8%

4.3%

2.6%

2.9%

7.6%

2.8%

1.8%

10.7%

8.4%

2.1%

5.8%

3.5%

2.7%

2.9 %

(11)

Exploratory R&D

Incremental

product

development

Consultancy

Manufacturing

No export

Some export

Significant export

Drug discovery, development, delivery and production

In vitro diagnostics

Biotech medical technology

CRO

Biotech tools and supplies

Biotech production

Agro-, environmental and food related biotechnology

Healthcare facility products and single-use products

Implantable devices - active and non-active

Anaesthetic and respiratory devices

Electromechanical medical devices

Radiation and imaging devices

(12)

Number of companies or corporate

groups with more than 250 employees in

Sweden each year 1998-2012

0

5

10

15

20

25

(13)

The development for each of the corporate

groups with > 250 employees in 2012 years

2007-2012

6232

1960

1867

1046

1008

964

775

714

680

677

534

487

491

407

393

362

350

308

296

293

253

0

2000

4000

6000

8000

10000

AstraZeneca

GE Healthcare Grp

Getinge Grp

Gambro

Fresenius Kabi

Dentsply

McNeil

St. Jude Medical

Recipharm Grp

Octapharma

Pfizer

Phadia

Apotek Produktion & Laboratorier AB

Nobel Biocare

Swedish Orphan Biovitrum

Q-Med

Mölnlycke Health Care

Hemocue

Cambrex

Attends Healthcare

Elekta group

(14)

Large companies and corporate groups

and the entire life science industry

Exploratory R&D Incremental product development Consultancy Manufacturing

No export Some export Significant export

Drug discovery, development, delivery and production In vitro diagnostics Biotech medical technology CRO

Biotech tools and supplies Biotech production

Agro-, environmental and food related biotechnology Healthcare facility products and single-use products Implantable devices - active and non-active Anaesthetic and respiratory devices

Electromechanical medical devices Radiation and imaging devices

Information and communication tools Assistive products for persons with disability

Exploratory R&D Incremental product development Consultancy Manufacturing

No export Some export Significant export Drug discovery, development, delivery and production In vitro diagnostics

Biotech medical technology CRO Biotech tools and supplies Biotech production

Agro-, environmental and food related biotechnology Healthcare facility products and single-use products Implantable devices - active and non-active Anaesthetic and respiratory devices Electromechanical medical devices Radiation and imaging devices Information and communication tools Assistive products for persons with disability

Malmö Helsingborg Lund Stockholm Solna Göteborg Mölndal Uppsala Danderyd Sundbyberg Drug discovery, development, delivery and production

In vitro diagnostics Biotech medical technology CRO

Biotech tools and supplies Biotech production

Agro-, environmental and food related biotechnology Healthcare facility products and single-use products Implantable devices - active and non-active Anaesthetic and respiratory devices Electromechanical medical devices Radiation and imaging devices Information and communication tools Assistive products for persons with disability

(15)

SME: Number of…

companies…

… and employees

0

100

200

300

400

500

600

700

800

50-250

10-49

1-9 employees

Number of companies

0

100

200

300

400

500

600

700

800

50-250

10-49

1-9 employees

Number of companies

(16)

Summary of results

• Decline in total – but some segments are growing

• A few mature companies are downsizing in Sweden –

dominating the decline

• Decrease in number of companies

• Foreign ownership increasing

• High participation in FP7

• High exports and R&D intensity

• ICT content and opportunities increasing

• New business models and organisation of R&D

• New technologies and opportunities

(17)

Exploratory R&D

Incremental

product

development

Consultancy

Manufacturing

No export

Some export

Significant export

Drug discovery, development, delivery and production

In vitro diagnostics

Biotech medical technology

CRO

Biotech tools and supplies

Biotech production

Agro-, environmental and food related biotechnology

Healthcare facility products and single-use products

Implantable devices - active and non-active

Anaesthetic and respiratory devices

Electromechanical medical devices

Radiation and imaging devices

Information and communication tools

Assistive products for persons with disability

Big Pharma

Mature

Medtech

“Bioeconomy”

Manufacturing

SME

Medtech

SME Pharma:

-Discovery

-Development

-Tools…

Prerequisites for: …attractive R&I environments …new ventures

…anchoring of mature companies … knowledge development

…a collaborative climate in the ecosystem

Challenges ahead for the Swedish

Life Science industry differs…

(18)

Government research and innovation

bill 2012

MEASURE

MSEK

2013

MSEK

2014

MSEK

2015

MSEK

2016

SCIENCE FOR LIFE LABORATORY

150

150

150

200

RESEARCH ON INFECTION AND

ANTIBIOTICS [VR]

40

75

75

75

RESEARCH ON AGEING AND HEALTH

[FORTE AND VR]

50

100

100

100

PHARMACEUTICAL DEVELOPMENT [KTH]

40

40

40

50

INSTITUTE FOR SUSTAINABLE PROCESS

DEVELOPMENT AND CATALYSIS [SP]

100

40

10

-

NATIONAL SUPPORT FOR COORDINATION

OF CLINICAL STUDIES

30

40

40

50

(19)

TACK!!!

Frågor?

Alla som intervjuats, regioner och branschorganisationer

som bidragit och alla andra bollplank i processen och som

läst utkast av rapporten…

(20)

Bild 20

-3000

-2000

-1000

0

1000

2000

3000

4000

5000

6000

-1000

-500

0

500

1000

1500

2000

2500

Value added per employee

Result after financial items [MSEK]

-1000

0

1000

2000

3000

4000

5000

6000

-1000

1000

3000

5000

7000

9000

Value added per employee

Net turnover per employee [kSEK]

Value added per employee / Net turnover per employee

Value added per employee / Result after financial items

(21)

Foreign-owned

companies

61% of employees

14% of companies

Exploratory R&D Incremental product development Consultancy Manufacturing

No export Some export Significant export

Drug discovery, development, delivery and production In vitro diagnostics Biotech medical technology CRO Biotech tools and supplies Biotech production

Agro-, environmental and food related biotechnology Healthcare facility products and single-use products Implantable devices - active and non-active Anaesthetic and respiratory devices

Electromechanical medical devices Radiation and imaging devices Information and communication tools Assistive products for persons with disability

Exploratory R&D Incremental product development Consultancy Manufacturing

No export Some export Significant export

Drug discovery, development, delivery and production In vitro diagnostics Biotech medical technology CRO

Biotech tools and supplies Biotech production

Agro-, environmental and food related biotechnology Healthcare facility products and single-use products Implantable devices - active and non-active Anaesthetic and respiratory devices

Electromechanical medical devices Radiation and imaging devices

Information and communication tools Assistive products for persons with disability

0

10

20

30

40

50

60

70

80

90

100

0

20

40

60

80

100

120

(22)

Pharmaceuticals Medical technology Biotechnology

Biotech medical technology

In vitro diagnostics

CRO

Healthcare facility products and single-use products

Implantable devices - active and non-active

Anaesthetic and respiratory devices

Electromechanical medical devices

Information and communication tools

Radiation and imaging devices

Assistive products for persons with disability

0

5 000

10 000

15 000

20 000

25 000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of employees

25 000

20 000

15 000

10 000

5 000

0

(23)

Clinical trials

-60

-50

-40

-30

-20

-10

0

10

20

30

Phase 1

Phase 2

Phase 3

Phase 4

2006

2007

2008

2009

2010

2011

2012

2013

-60

-50

-40

-30

-20

-10

0

10

20

30

Phase 1

Phase 2

Phase 3

Phase 4

2006

2007

2008

2009

2010

2011

2012

2013

(24)

Trade: Medical technnology and Pharma

0

4

8

12

16

20

BS

EK

(n

ot

d

ef

la

te

d)

Export

Import

Net export

0

20

40

60

80

BS

EK (

no

t de

fla

te

d)

(25)

Development 1998-2012

Marketing & sales

R&D, consultancy and production

Life Science industry

Number of employees

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

Life Science industry (excl. marketing & sales)

Large companies > 250 employees

Small and medium sized companies

Number of employees

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

(26)

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References

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