Global trends with local effects

Global trends with local effects
The Swedish Life Science
Industry 1998-2012
Anna Sandström
as@vinnova.se
DONE
IN PIPELINE
• Life Science
 Consultancies (Q3-Q4)
• Automotive
 Update Automotive
• Chemicals
 Trains, railroad
• Cleantech
 (Aircrafts etc.)
• Metals
 (Machine industry)
• ICT
….
• Maritime
• Mining and minerals
• Energy
• Pulp and paper
Uppsala
Solna
Danderyd
Stockholms stad
Stockholm
Sundbyberg
Göteborg
Göteborgs stad
Mölndal
Helsingborgs stad
Helsingborg
Malmö stad
Malmö
Maritime
Automotive
Chemicals
Lund
Life Science
ICT
Solna stad
Sollentuna kommun
Danderyds kommun
Västerås stad
Västerås stad
Solna stad
Solna stad
Stockholms stad
Sundbybergs stad
Stockholms stad
Stockholms stad
Stockholms stad
Göteborgs stad
Göteborgs stad
Mölndals stad
Göteborgs stad
Borås stad
Helsingborgs stad
Helsingborgs stad
Malmö stad
Linköpings kommun
Malmö
stad
Helsingborgs stad
Malmö stad
Lunds kommun
Energy Cleantech
Stockholms stad
Lunds kommun
Metals
Mining
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
• Small companies increasingly partners, suppliers or
acquired…
• Adjusting products to specific markets
• Cost containment procedures
Pharmaceuticals
Trends…
• Emerging markets booming – stagnation in mature markets
• Patents expires – at unprecedented pace
• Generics (Biosimilars) – gaining ground
• Big Pharma downsizing – R&D flexibility
• 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
• Steep regulatory demands & cost containment procedures
Reducing the risks….
Pharmaceuticals – reducing the risks…
• Orphan drugs
• Reformulation & New indications & Combinatory
medicine
• Big Pharma is downsizing in-house R&D
• Partnering; Big Pharma, SME, academia, PPP
• Open platforms
• Personalised/stratified medicine using companion
diagnostics
Policy responses…
The development for each of the corporate groups
with more than 250 employees in Sweden in Life
Sciences 2012, years 2007-2012
2007
0
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
2008
2000
1960
1867
1046
1008
964
775
714
680
677
534
487
491
407
393
362
350
308
296
293
253
2009
2010
4000
2011
2012
6000
8000
6232
10000
Number of companies…
50-250
800
700
10-49
1-9 employees
Number of companies
50-250
800
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
10-49
1-9 employees
Number of companies
… and employees
according to size
(excluding previously mentioned large companies 2012)
Dynamics
in recent
years…
PROFITABLE EXIT/PARTNERSHIP:
Duocort
Premacure
Index Pharmaceuticals
CLOSING OR DOWNSIZING IN SWEDEN:
St Jude Medical (US)
– Malaysia
Becton Dickinson (US) – India, Singapore
and Mexico
Carmel Pharma (US)
– Spain
Two comp. in Getinge group (SE)- CN/PL
St Jude Uppsala (US)
Nobel Biocare (CH)
– CH, US, CA
NEW OWNER:
GROWING OR INVESTING:
Gambro – Baxter (US)
Sectra Mamea – Philips (US)
Atos Medical (LU) Octapharma (CH)
Cellartis – Cellectics (FR)
AstraTech – Dentsply (US)
Q-Med – Galderma (CH)
Phadia – Thermo Fisher Scientific (US)
Carmel Pharma – Becton Dickinson (US)
Cochlear (AU)
Fresenius (DE)
Elos Medtech (SE)Maquet (SE)
)Recipharm (SE)
Dentsply (US)
Mölnlycke (SE)
Bactiguard (SE)
Elekta (SE)
Cepheid AB (US)
Hemocue AB (US)
Vitrolife (SE)
Cambio (SE)
Development of employment
Total number of employees in 2012: 40 764
25 000
25 000
20 000
20 000
15 000
15 000
10 000
10 000
5 000
5 000
Number of employees
Absolute
change in
employment
since 2009
Relative change in
employment since 2009
[%]
-37
-4.1 Assistive products for persons with disability
222
38.9 Information and communication tools
-88
-7.8 Radiation and imaging devices
125
7.9 Electromechanical medical devices
29
4.9 Anaesthetic and respiratory devices
-77
-3.0 Implantable devices - active and non-active
-550
-6.0 Healthcare facility products and single-use products -203
-70 Agro-, environmental and food related biotechnology -133
-19.7
-239
-22.5 Biotech production
39
1.8 Biotech tools and supplies
-198
-18.7 CRO
-24
-3.0 Biotech medical technology
48
3.9 In vitro diagnostics
-0.4 Drug discovery, development, delivery and production -25
001998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1998 2000 2002 2004 2006 2008 2010 2012
-20,1
-1,1
AstraZeneca
Sales and marketing
In total: -5.2 percent in employment (-2 242 employees) since 2009
Source: VINNOVA Database of Life Science companies and data from Swedish Companies Registration Office via PAR AB
-1563
-118
Skåne
Regional distribution of employment
in relation to population aged 16-64
2,1%
0,7%
0,6%
0,2% 0,3% 0,2% 0,3%
0,4%
0,0% 0,0% 0,0%
0,5%
0,4%
0,0%
0,0% 0,1% 0,0%
0,4%
0,3%
0,0%
0,1%
SKÅNE
4 835 employees in 2012, 16 % of
the Swedish Life Science industry
3
5 10
1
6
Number of
company
facilities
38
19
10
7
25
16
25
7
17
200
24 54
180
57
160
140
120
1 213
100
1 565
Number of
employees
2012
80
60
211
40
404
20
0
471
347 181
94 139
74
Drug discovery, development, delivery and production
Healthcare facility products and single-use products
In vitro diagnostics
Implantable devices - active and non-active
Biotech medical technology
Anaesthetic and respiratory devices
CRO
Electromechanical medical devices
Biotech tools and supplies
Radiation and imaging devices
Agro-, environmental and food related biotechnology
Information and communication tools
Biotech production
Assistive products for persons with disability
Employment in SKÅNE
Change in
employment
since 2009
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0
Number of employees
4
1
-1
23
-12
-30
-333
-119
-41
-8
-48
17
45
-1 004
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
- 23 percent in employment (1 506 employees) since 2009
Take home messages…
• Research and export intensive industry…
• Global consolidation… changes in strategic focus
• A few mature companies are downsizing in Sweden, dominating the decline –
but some segments are growing…
• Fewer micro- and small-sized companies…
• Increasing foreign ownership…
• High participation in FP7
• ICT content and opportunities increasing
• New business models, New technologies… and New opportunities
• Competitiveness and attractiveness of the Swedish Life Science
eco-system is continuously challenged
The industrial structure is changing…
Government initiatives 2013-2016
Initiative
MSEK
2013
MSEK
2014
MSEK
2015
MSEK
2016
SciLifeLab
150
150
150
200
Infection and antibiotics [VR]
40
75
75
75
Ageing and health [Forte + VR]
50
100
100
100
Drug discovery platform [KTH]
40
50
50
50
Small molecules, org chem. [SP]
100
40
10
-
Coordination of clinical trials
30
40
40
50
Clinical resarch fund [VR]
20
50
75
75
Health care research [VR and Forte]*
70
80
80
80
Bild 16
* …”within budget”
What next??? – some examples of issues
• Fewer or more SMEs?
• Drug discovery – who takes care of radical innovation addressing
unmet or poorly met medical needs…
• …and preventive care innovations…
• E-health – how will the three parts evolve…
• What are the disruptive technologies of today that will change the
therapies of the future…
• How to stimulate the healthcare service being a part of the
innovation processes … again…
• Trust… not only incentives…
• AND translation goes both ways… policy response???
• Public measures to support radical or incremental innovation?
• Public measures to contribute to the anchoring of mature
companies?
Bild 17
TRADE
20
SEK (billion, not deflated)
EXPORT
IMPORT
NET EXPORT
16
Medical
technnology
12
8
4
0
-4
SEK (billion, not deflated)
80
60
40
IMPORT
EXPORT
NET EXPORT
Pharma
20
0
Source: Statistics Sweden
Medtech SPIN: 26.600; 32.501; 32.502
Pharma SITC: 542; 541
Value added per employee / Net turnover per employee
Value added per employee / Result after financial items
6000
Value added per employee
Companies > 5 employees
5000
4000
3000
2000
1000
6000
0
-1000
1000
-1000
3000
5000
7000
9000
Value added per employee
5000
Net turnover per employee [kSEK]
4000
3000
2000
1000
0
-1000
-500
-1000
0
500
1000
1500
2000
2500
-2000
Bild 19
-3000
Result after financial items [MSEK]