Competitiveness

Denmark winning the Scandinavian leadership battle of Pharmaceutical development

Monday, 06 February 2012
While the Swedish pharmaceutical industry is waning, worker here are gradually moving south to Denmark where the sector there is booming and had over taken Sweden.

It had now be contented that the Pharmaceutical sector is a sector that will bring Denmark back to its best because of the design f the sector in Denmark characterised by its smaller holder schemes and various forms of funds and foundation led research.

This is not so in Sweden where there it has the tradition to rely on big money and sprawling establishments that makes shareholder to pressurise such establishment with traditionally have the tendency to harbour uncertainty. In Sweden they are forced to produce results by all means.

As Astra Zeneca recently announced the dismissal of many workers, the Danish pharmaceuticals such as Lundbeck are making impressive in route into gaps being lost by the Swedish giants. As such they are attracting Swedish medical researchers who are living on the border and crossing to the Denmark to work daily.

According to the Öresund Institute, today some 700 Swedes commute to work within the Danish biotechnology and pharmaceutical industry, which is growing fast.
Since 1998, the two big companies, Novo Nordisk and Lundbeck, have increased their workforce by 70 percent to over 15 000 people. Within the same period, the two big pharmaceutical in Sweden, Astra Zeneca and Pharmacia Upjohn, have declined by almost 20 percent to 12 000 reports radio Sweden.

The Danish success has been driven according to Jan Edling, an analyst at state innovation agency, Vinnova, by long-term and stable ownership.

There is encouragement, growth and no shareholders putting pressures on the rather smaller cap companies here.
As such research and development in Denmark is ahead of Sweden. In the current situation, the Danes have 140 products in 'Phase 1 tests, compared with about 75 in Sweden.

In Denmark, it is believed that there is stable ownership of the pharmaceuticals development because they are kept in funds and foundations which have an impact on the ownerships putting limited pressures on things like prices.

Some companies have sought other options which instead of merging with others to grow big with the aim of gaining competitive advantage and eliminate competitors, have perhaps made contract to share the risk when it comes to producing a drug in the late phase. Looking at alternative solutions instead of becoming a huge business, something Sweden always wants to be is not a common feat in Denmark and this explains their success.
By Scancomark.se Team

Live Economic Calendar Powered by Forexpros - The Leading Financial Portal