LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...

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LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
LIFE SCIENCE ACROSS THE ØRESUND
– a survey of transregional commuters, actors, research and investments

                                        900 border commuters in
                                        Medicon Valley
                                        At least 20 Danish CEOs
                                        at companies in Skåne
                                        13 Danish companies listed
                                        in Sweden since 2014
LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
PREFACE

                                                                                                The Danish-Swedish life science cluster that spans over the Øresund, Medicon Valley, is linked together

LIFE SCIENCE ACROSS THE ØRESUND                                                                 by all of the engaged individuals who work at the universities, hospitals, research centres and all of the
                                                                                                companies in the region. As part of the Interreg-project Greater Copenhagen Life Science Analysis Initiative,
– a survey of transregional commuters, actors,                                                  Øresundsinstituttet has surveyed networks, collaborations, investments, ownership and personal contacts
                                                                                                in Medicon Valley.
research and investments
                                                                                                More than 900 people employed at companies in the life science cluster commute across the Øresund Strait,
This analysis has been prepared by Øresundsinstituttet as part of the Interreg-                 most of them from Skåne to Danish companies such as Novo Nordisk, Ferring, LEO Pharma, Lundbeck and
project Greater Copenhagen Life Science Analysis Initiative and was written by                  Genmab. The growing group of companies from Skåne – frequently small and listed in Sweden – is also hel-
Jenny Andersson, Kristoffer Dahl Sørensen, Sofi Eriksson and Johan Wessman.                     ping itself to the generous offering of skilled business leaders schooled in the large life science companies
                                                                                                across the strait in Denmark. Today, more than 20 life science companies in Skåne are headed by a Danish
Project manager for analytics: Jenny Andersson                                                  CEO. Ultimately, in and around Copenhagen is where Medicon Valley’s largest life science companies are.
Overall project manager: Johan Wessman                                                          The Danish system of large, foundation-owned companies means that power over the company remains in
                                                                                                Denmark, even if it is publicly traded, and it also means that part of the company’s profits return to research
Translation: Justina Bartoli                                                                    and new startups via the foundations that own them. In Sweden, the focus is more on going public; since
                                                                                                2014, thirteen Danish life science companies have acted on the attraction to listing in Stockholm, and twelve
Cover photo: News Øresund                                                                       of them are still listed today. More than 25 companies are active on both sides of the Øresund – and this is
                                                                                                no novel phenomenon. Already back in 1914, the then-Danish Løvens Kemiske Fabrik set up a Swedish sub-
June 2021                                                                                       sidiary in Helsingborg: Leo Läkemedel. The company has changed hands many times since then, and today
                                                                                                it’s known as McNeil, and its manufacturing and development units are still in Helsingborg.
GREATER COPENHAGEN LIFE SCIENCE ANALYSIS INITIATIVE is an EU-project aimed
at increasing knowledge about the region’s life science cluster. The focus is on the            There is nothing new about national rules and regulations making work across the strait more difficult despite
demand for labourers, future expertise needs, and more. The project has received                the proximity over the Øresund with the bridge connecting Copenhagen and Malmö and ferries shuttling
funding through the EU-programme Interreg Öresund-Kattegatt-Skagerrak and will                  between Helsingborg and Helsingør. University grants are generally not allowed to cross borders, for example,
continue until 30 June 2022. The project’s lead partner is Medicon Valley Alliance, and         although a good collaboration means bilateral flow. Over the past six years, crossing the Øresund has become
the partner is Øresundsinstituttet. Region Skåne and Region Zealand are co-funding              even more difficult for us humans. The migration crisis, crime and now the coronavirus pandemic have led to
the project.                                                                                    national decrees on border control and at times even partially closed the borders. At the same time, the border
                                                                                                region is receiving support from Brussels via the EU-programme Interreg Öresund-Kattegat-Skagerrak. Since
                                                                                                2015, Interreg has granted nearly €47mn for joint border regional development projects in the life sciences.
                                                                                                This analysis is part of one such project.

                                                                                                After more than 50 interviews with players from Medicon Valley, we can draw several conclusions:
                                               MEDICON VALLEY is the bi-national life science
                                                                                                •    Personal contacts are of great consequence for the border regional development between Sweden
                                               cluster spanning eastern Denmark and the
                                                                                                     and Denmark.
                                               Skåne region of southern Sweden. Today, the
                                               Danish-Swedish region is marketed interna-       •    The national systems still have difficulty managing a border region.
                                               tionally with the name ‘Greater Copenhagen’,     •    The trans-Øresund exchange is extensive. Medicon Valley’s Danish and Swedish parts are tightly
                                               and its increasing population has reached             interwoven by their people, capital, projects, research and affairs.
                                               more than four million residents. In Sweden,     •    There remains great potential to increase contacts across the Øresund. The Øresund is where
                                               the same geographical area is often called the
                                                                                                     Denmark’s and Sweden’s national life science strategies meet. Two neighbouring countries, both
                                               ‘Øresund Region’.
                                                                                                     successful in the life sciences, each an important trade partner for the other. The interviews in this
                                                                                                     report show that the actors who see great opportunities in expanding collaborations are very many.

                                                                                                Copenhagen and Malmö, 22 June 2021

                                                                                                Johan Wessman
                                                                                                CEO
                                                                                                Øresundsinstituttet
LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
PHOTO: NEWS ØRESUND
                                                                  TABLE OF CONTENTS

                                                                  1. Summary .................................................................. 6

                                                                  2. Commuters and the labour market .......................... 12

                                                                  3. Management ........................................................... 26

                                                                  4. Research and education .......................................... 47

                                                                    Focus: Diabetes ........................................................ 56

                                                                    Focus: Oncology ....................................................... 68

                                                                    Focus: Reproduction ................................................. 82

BioInnovation Institute                                           5. Transregional sector actors and activities ............... 90

                                                                  6. Investments and listings ....................................... 110

                                                                  7. Appendix ............................................................... 135

                                      PHOTO: LEO PHARMA   ABOUT ZEALAND AND SKÅNE
                                                          When we refer to Zealand and Skåne in this report, we are generally referring to the
                                                          following geographic classification: the Danish island Zealand, and the southern
                                                          Swedish province Skåne. There are also public and administrative geographies. On
                                                          the Danish side, the Capital Region of Denmark includes the capital city Copenhagen
                                                          and the surrounding municipalities, up to northeast Zealand and including the island
                                                          Bornholm. Region Zealand comprises the remaining parts of Zealand and islands such
                                                          as Møn, Lolland and Falster. On the Swedish side of the Øresund, the province of Skåne
                                                          is geographically equivalent to Region Skåne. Together, the three Danish and Swedish
                                                          regions comprise the Øresund Region, whose population was 4.1 million at the end of
                                                          2020, with two-thirds living on the Danish side. The Medicon Valley cluster shares the
                                                          geography of the Øresund Region. The term Greater Copenhagen is used as an inter-
                                                          national place brand for the Danish-Swedish region, and it also designates a political
                                                          collaboration that encompasses the three abovementioned regions as well as Region
                                                          Halland. The Greater Copenhagen region has a population of 4.4 million.

  LEO Pharma Open Innovation.
LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
SUMMARY                                                                                                                                                                                                                                                                           SUMMARY

                      10                                                                                                                                                           +20

                                                                                                                                                                                                                                                                                                                                              PHOTO: NEWS ØRESUND & CELLAVISION
                                              HIGHLIGHTS FROM THE REPORT

                                                                                                                                                                                   At least 20 Danish CEOs/managing di-
                                                                                                                                                                                   rectors work in large, medium-sized and
                                                                                                                                                                                   small life science companies in Skåne.
                             MORE THAN 900 BORDER COMMUTERS                                                                                                                        The number of Danish directors has
                                                                                                                                                                                   risen since 2017. Read more on page 27.                                                            Simon Østergaard, new
                                                                                                                                                                                                                                     Søren Bregenholt, new CEO of
                                                                                                                                                                                                                                     Alligator Bioscience in Lund.                    CEO of CellaVision in Lund.
                             The life science sector’s labour force moves back

                                                                                                                                    PHOTO: NEWS ØRESUND
                             and forth across the Øresund Region. A total of
                             over 900 border commuters were identified in the
                             region. At least 800 people commute from Skåne
                             to work at life science companies in Zealand. At
                                                                                                                                                                                     EXCELLENT RESEARCH IN THE REGION
                             least 100 commuters from Zealand were identified                                                                                                        Cancer, diabetes and reproduction are three research areas of excellence in Medicon Valley.
                             as working in the life science sector in Skåne.                                                                                                         World-class research is conducted in all three, and there are multiple links across the strait.
                             These figures are the result of extensive contact                                                                                                           There are around 600 researchers in CANCER RESEARCH at the hospitals in Region Skåne,
                             between Øresundsinstituttet and the companies                                                                                                           Region Hovedstaden and Region Sjælland, and there is also extensive research at the universities,
                             between 2020-2021. One often hears about highly                                                                                                         in the industry and at the Danish Cancer Society’s research institute in Copenhagen. Within cancer
                             educated workers who are active across the Øre-                                                                                                         research, it is relatively common for researchers and research groups to collaborate across the
                                                                                 Examples of life science com-   Number of border
                             sund. Novo Nordisk is the Medicon Valley company    panies in Zealand with border    commuters from
                                                                                                                                                                                     strait, but researchers call for more structural collaboration.
                             with the largest number of border commuters.                                                                                                                DIABETES RESEARCH has strong historical links to the

                                                                                                                                                                                                                                                                                                                    PHOTO: NEWS ØRESUND
                                                                                 commuters from Sweden                   Sweden
                             200 people travel from Sweden across the Øre-       Novo Nordisk A/S                             206
                                                                                                                                                                                     Øresund Region, as the predecessor to today’s Novo Nordisk
                             sund to work at the company in Denmark.                                                                                                                 was founded in Copenhagen in 1923. Today, research centres
                                                                                 Ferring Pharmaceuticals A/S                  110
                                                                                                                                                                                     on both sides of the Øresund bring together diabetes research,
                             Read more about border commuting and the            LEO Pharma A/S                                66                                                    and many of the largest players have joined forces in the Inter-
                             labour market in the sector on page 12-25           H. Lundbeck A/S                            40-45                                                    reg-collaboration DiaUnion.
                                                                                                                                                                                        REPRODUCTION RESEARCH has also traditionally been
                                                                                                                                                                                     strong in the Øresund Region, and there has long been extensive
                                                                                                                                                                                     exchange across the strait within the Interreg-project ReproU-
PHOTO: NEWS ØRESUND

                                                                       MORE FOREIGN CEOS IN ZEALAND                                                                                  nion 2.0 and its earlier iterations. Today, a unique biobank is
                                                                       Around three-fourths of the life science companies that                                                       being constructed, the aim with which is to include 5 000 couples
                                                                       are listed in Sweden and have headquarters or ma-                                                             from Denmark and Sweden and get to the bottom of involuntary
                                                                       nufacturing facilities in Skåne are headed by Swedish                                                         childlessness. Read more pages 46-89.
                                                                       CEOs. In Denmark however, around two-thirds the
                                                                       life science companies with
                                                                                                                                                          PHOTO: NEWS ØRESUND

                                                                       headquarters and listings

                                                                                                                                                                                                                                                                   €47mn
                          CORONAVIRUS PANDEMIC                         in Denmark are headed by

                                                                                                                                                                                                                                             PHOTO: NEWS ØRESUND
                                                                                                                                                                                POTENTIAL FOR MORE
                          GIVES BORDER COMMUTERS                       Danish CEOs. The share of                                                                                RESEARCH COLLABO-
                          TAX HEADACHES.                               foreign CEOs in the segment                                                                              RATION ACROSS THE
                          Working more from home due to the            is thus larger in Denmark than                                                                           ØRESUND.
                          pandemic is making it difficult for border   in Skåne. Larger, listed Danish                                                                          ”Working together is incre-
                          commuters – in the life science and other    companies such as Novozy-                                                                                dibly easy; it’s great when                                                        Between 2015-2022, the EU-programme
                          sectors – to fulfil the requirement of       mes, H. Lundbeck, Zealand                                                                                Danish and Swedish doctors                                                         Interreg Öresund-Kattegat-Skagerrak
                          working at least half of the time in their   Pharma, Orphazyme and                                                                                    and researchers get together                                                       granted just under €47mn to joint Da-
                          country of employment. This has created      Ambu for example have recruited chief executives from                                                    for a project and share data                                                       nish-Swedish development projects in the
                          extra administration and additional costs    abroad in the past five years. According to recruitment                                                  and work together – that has never been a problem, it’s                            life sciences. 18 life science projects have
                          for companies and could also mean that       experts, the differences in internationalisation between                                                 always been a lot of fun. The obstacles to collaboration                           received funding during that time, and ten
                          border commuters may be hit with back        Denmark and Skåne are related to the companies’ size,                                                    are much more structural.”                                                         of the projects are still currently active –
                          taxes. Read more on page 16.                 development stage, capital needs and more. Read more                                                     Mef Nilbert, head of research at the Danish Cancer Society                         e.g. DiaUnion. Read more on page 91.
                                                                       on page 26-40.                                                                                           in Copenhagen. Read more on page 80-81.

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LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
SUMMARY                                                                                                                                                                                                                                                        SUMMARY

                                                                                                                                                                                DENMARK’S AND SWEDEN’S LIFE SCIENCE

                                                                                                                                                          PHOTO: NEWS ØRESUND
                          THE WORD ON ØRESUND COLLABORATION

                                                                                                                                                                                STRENGTHS CONSOLIDATE AROUND THE
                          ”We have historical collaborations in the Øre-
                          sund Region, and we will definitely continue to
                          have them. The collaborations are both on the
                          commercial and on the academia fronts. I think                                                                                                        ØRESUND
                          we should open a mutual invitation and say: the
                          things that we can do better together working                                                                                                         The Øresund Region’s Medicon Valley cluster is Scandinavia’s largest life science cluster. The
                          across the Øresund are things we should pursue”,                                                                                                      region’s common research strengths are in diabetes, cancer, fertility and more, and globally le-
                          says Kim Kjøller, chairperson of the cluster orga-                                                                                                    ading companies and universities are active in those fields. Denmark and Sweden work across the
                          nisation Danish Life Science Cluster, which was                                                                                                       Øresund to build highly advanced research facilities, and Danish and Sweden investment compa-
                          founded in 2020 and represents around 500 actors
                                                                                                                                                                                nies join together to fund new ideas. Innovation and new startups take shape at universities and
                          from the sector. Read more on page 106.
                                                                                                                                                                                science parks in Medicon Valley, and more than 900 border commuters cross the Øresund for their
                                                                                                                                                                                work, bringing together Danish and Swedish expertise.

                                                                                          €35mn
PHOTO: NEWS ØRESUND

                                                                                                                                                                                Danish and Swedish companies, organisations,              • Approx. 1 700 cancer researchers
                                                                                                                                                                                labour forces, capital and research merge in the          • Approx. 1 000 diabetes researchers
                                                                                                                                                                                Øresund Region’s life science sector. This is appa-       • Approx. 150 reproductive researchers
                                                                                                                                                                                rent when research starts at Lund University and is
                                                                                          The Novo Nordisk Foundation granted                                                   developed further in Copenhagen, for example. Da-            Sector links within the cluster are apparent in
                                                                                          €35mn for the super-microscope Mi-                                                    nish and Swedish trade organisations work together        that e.g. there are employees in the sector who work
                                                                                          croMAX in Lund, which will be ready                                                   on conferences and marketing strategies. Biotech          on the opposite side of the Øresund. All the while,
                                                                                          for use in 2022. The grant is the foun-                                               companies recruit expertise from Skåne. Danish            researchers at Danish universities develop instru-
                                                                                          dation’s largest in southern Sweden                                                   companies list in Sweden with the help of Swedish         ments and software that are already in use and will
                                                                                          today. Read more on page 107.                                                         financial players. Life science companies from Skåne
                                                                                                                                                                                recruit experienced business managers who have
                                                                                                                                                                                been schooled in Denmark’s global enterprises. And
                                                                                                                                                                                research groups work across the Øresund to reach               MEDICON VALLEY EMPLOYS 50 000
                                                                                                                                                                                joint goals of finding new treatments.                         The companies in the Danish-Swedish Medicon

                          INVESTMENT CLIMATE IN PROGRESS                                                                                                                            The life science sector that spans across the
                                                                                                                                                                                Øresund is thus linked in many ways in the
                                                                                                                                                                                                                                               Valley cluster employ more than 50 000 pe-
                                                                                                                                                                                                                                               ople in the Øresund Region.

                           The investment climate in Medicon Valley is moving forward, according to a number of Danish and                                                      Danish-Swedish Medicon Valley cluster, which
                           Swedish investment companies. Funding rounds are growing larger, especially on the Danish side of                                                    employs around 50 000 people. The five chapters of
                           the Øresund, and the participation of venture firms from abroad is increasingly more frequent. Many                                                  the report in hand aim to identify strengths, links
                           of the life science companies in Medicon Valley with Danish-Swedish ownership interviewed agree                                                      and structural similarities and differences in the life
                           that the access to risk capital is generally good. Actors from the sector point out that Novo Nordisk                                                science sector in Medicon Valley, which is Scandi-
                           Foundation’s establishment of the BioInnovation Institute in Copenhagen in 2017 was an important                                                     navia’s largest life science cluster.
                           event for seed-funding in the region, and it has also benefitted Swedish life science companies. Com-                                                    One of Medicon Valley’s shared Danish-Swedish
                           panies in Skåne also highlight the need for better access                                                                                            strengths is that Zealand and Skåne both conduct
                                                                                                                                    PHOTO: NEWS ØRESUND

                           to venture capital, and companies on Danish shores                                                                                                   globally leading research in diabetes, fertility and
                           would like to see the Danish stock market become more                                                                                                cancer. Research is carried out commercially via
                           lucrative, like its Swedish counterpart. The result is                                                                                               beacon companies such as Novo Nordisk, Ferring
                                                                                                                                                                                                                                                MEDICON VALLEY is the bi-national life
                           different capital structures on either side of the Øresund:                                                                                          Pharmaceuticals and Genmab, as well as at universi-
                                                                                                                                                                                                                                                science cluster spanning eastern Denmark
                           •     71 life science companies have headquarters in                                                                                                 ties, where the researchers further boost the region’s
                                                                                                                                                                                                                                                (Region Zealand and the Capital Region of
                                 Skåne and are listed in Stockholm                                                                                                              scientific strong points. We received data for this             Denmark) and the Skåne region of southern
                           •     20 life science companies have headquarters in                                                                                                 analysis from hospitals and universities (The only              Sweden. Today, the Danish-Swedish region
                                 Zealand and are listed in Copenhagen                                                                                                           data from the University of Copenhagen concerns                 is marketed internationally with the name
                           •     13 Danish life science companies have gone public                                                                                              the Center for Basic Metabolic Research (CBMR)                  ‘Greater Copenhagen’, and its increasing po-
                                 in Stockholm since 2014; 12 of them are still li-                                                                                              and Biotech Research & Innovation Centre (BRIC),                pulation has reached four million residents.
                                 sted. Together, the companies’ IPOs raised 665mn                                                                                               and reservation is made for the possibility that some           In Sweden, the same geographical area is
                                 SEK, or €65mn.                                                                                                                                 researchers work at hospitals as well as universities           often called the Øresund Region’.
                                                                                                                                                                                regarding:

                      8                                                                   ØRESUND - ØRESUNDSINSTITUTTET GCLSAI • June 2021                                      ØRESUND - ØRESUNDSINSTITUTTET GCLSAI • June 2021                                                               9
LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
SUMMARY                                                                                                                                                                                                                                                                                                                                                               SUMMARY

be used at research facilities in Skåne in the future.                Life science companies in Skåne also benefit
Danish companies also receive advice from Swedish                 from an open and flexible labour market, however.
players on going public in Sweden to raise capital                The expertise that people who reside in Sweden can                    EXAMPLES OF PEOPLE WHO WORK IN MEDICON VALLEY
for further development.                                          acquire working at larger life science companies in                   COMMUTERS AND EXECUTIVES ACROSS THE ØRESUND
                                                                  Zealand is unique, as there are multiple large global

                                                                                                                                                               PHOTO: NOVO NORDISK

                                                                                                                                                                                                                       PHOTO: NEWS ØRESUND

                                                                                                                                                                                                                                                                               PHOTO: PRIVATE
• There are at least 900 border commuters

                                                                                                                                                                                                                                                                                                                               PHOTO: LEO PHARMA
                                                                  companies in the industry in Zealand. They function

                                                                                                                                                                                                                                                                                                                                                                               PHOTO: SCANDINAVIAN ONCOLOGY
employed in the companies in Medicon Valley,                      as an anchor of sorts for startups and other businesses
800 of whom live in Skåne and work in Zealand.                    in the region. In many cases, people from the sector
                                                                  from Skåne later bring their expertise back and thus
• There are at least 20 Danish CEOs in the life scien-            benefit other companies in e.g. Malmö and Lund.
ce cluster in Skåne.                                                  Increasing awareness among Danes in the sector
                                                                  of the career opportunities that exist on the Swedish
• 13 Danish life science companies have listed in                 side of the Øresund is a transregional challenge.                                                                                                                                                                                                                                       Maj Hedtjärn,
                                                                                                                                         Kasper Bødker                                           Britt Meelby                                             Sara Harboe,                                    Niclas Nilsson,
                                                                                                                                                                                                                                                                                                                                                          COO & Head of
Sweden since 2014, 12 of them are still listed today.             Danish-dwellers in the sector may also have higher                     Mejlvang, Country                                       Jensen, CEO Atos                                         Vice President                                  Head of Innovation
                                                                                                                                                                                                                                                                                                                                                          R&D Operations at
                                                                  expectations when it comes to e.g. salary that may                     Manager Novo                                            Medical. See p. 22.                                      ArjoHuntleigh. See                              Lab at LEO Phar-
                                                                                                                                                                                                                                                                                                                                                          Scandion Oncology.
                                                                  be difficult to honour.                                                Nordisk. See p. 14.                                                                                              p. 25.                                          ma. See p. 41.
• Denmark makes financial contributions to                                                                                                                                                                                                                                                                                                                See p. 34.
European Spallation Source, ESS, and MAX IV                           With its 25% rate, the so-called SINK-tax has                     RESEARCH AND EDUCATION
in Lund. Denmark and Sweden are host countries                    traditionally prompted Danes to accept positions

                                                                                                                                                               PHOTO: IKENNET RUONA - LUNDS U.

                                                                                                                                                                                                                                                                               PHOTO: KENNETH RUONA
                                                                                                                                                                                                                       PHOTO: NEWS ØRESUND

                                                                                                                                                                                                                                                                                                                                                                               PHOTO: LUND UNIVERSITY
                                                                                                                                                                                                                                                                                                                               PHOTO: DIRECTORS CORNER
for ESS, whose research facilities are being built in             in Skåne despite the Danish crown being stronger
Lund and the data centre for which is at Copenha-                 than its Swedish counterpart. The taxation advanta-
gen Bio Science Park (COBIS) in Copenhagen.                       ge for border commuters has become a tax trouble
                                                                  during the coronavirus pandemic, however. Official
Border commuting is important for both                            restrictions have made it difficult for many people
Sweden and Denmark                                                to fulfil the requirement of being physically present
One of the main results of this report is that there              in one’s country of employment 50% of the time.                        Erik Renström,                                          Elise Witthof,                                           Kristian Pietras,                               Carl Borrebaeck,                                Aleksander
are more than 900 border commuters at companies                   This has meant additional administration and costs                     Vice-chancellor of                                      Coordinator iCope.                                       Professor and                                   Professor and se-                               Giwercman,
in the region. Many in the sector thus live in one                for companies and employees in the life sciences                       Lund University.                                        See p. 74.                                               Coordinator LUCC.                               rial entrepreneur.                              Project Manager
                                                                                                                                         See p. 54.                                                                                                       See p. 76.                                      See p. 78.                                      ReproUnion 2.0.
country and work in the other.                                    and in other sectors, and there have been calls for
                                                                                                                                         TRANSBORDER ACTORS AND OPERATIONS                                                                                                                                                                                See p. 87.
    Trans-Øresund exchange is important, as it broa-              the tax rules for border commuters to be adjusted to
dens the recruitment base across the Øresund. Danish              accommodate for working from home in the future.

                                                                                                                                                                                                                         PHOTO: BIOINNOVATION INSTITUTE
                                                                                                                                                               PHOTO: NEWS ØRESUND

                                                                                                                                                                                                                                                                                    PHOTO: NEWS ØREUSND

                                                                                                                                                                                                                                                                                                                                                                                   PHOTO: COPENHAGEN CAPACITY
                                                                                                                                                                                                                                                                                                                                 PHOTO: INVEST IN SKÅNE
life science companies are currently finding themselves               In spite of the abovementioned challenges,
with a labour force shortage. If border commuting                 approximately 100 commuters live in Denmark and
from Skåne were to decrease, the need for labourers in            work at life science companies in Skåne, more than
the sector in Denmark would be intensified further.               20 of them in executive positions.

                                                                                                                                         Petter Hartman,  Jens Nielsen,                                                                                   Tue David Bak,                                  Ulrika Ringdahl,                                Asbjørn Over-
                                                                                                                                                                                                                                                                                                                                                          gaard Chris-
     UPCOMING ANALYSIS: SURVEY OF THE                                                                                                    CEO Medicon
                                                                                                                                         Valley Alliance.
                                                                                                                                                          CEO BII Founda-
                                                                                                                                                          tion. See p. 103.
                                                                                                                                                                                                                                                          Managing Director
                                                                                                                                                                                                                                                          Greater Copenha-
                                                                                                                                                                                                                                                                                                          Managing Director
                                                                                                                                                                                                                                                                                                          Invest in Skåne.                                tiansen, CEO
     DANISH LIFE SCIENCE SECTOR                                                                                                          See p. 108.                                                                                                      gen Committee.                                  See p. 97.                                      Copenhagen Capa-
                                                                                                                                        INVESTMENT AND LISTINGS                                                                                           See p. 97.                                                                                      city. See p. 97.
      The focus of this report is movement over the Øresund and transregi-

                                                                                                                                                               PHOTO: NEWS ØRESUND

                                                                                                                                                                                                                                                                               PHOTO: NOVO SEEDS
                                                                                                                                                                                                                       PHOTO: NEWS ØRESUND

                                                                                                                                                                                                                                                                                                                                                                                  PHOTO: PILA PHARMA-JENNY LEYMAN
                                                                                                                                                                                                                                                                                                                               PHOTO: NEWS ØRESUND
      onal commuters, actors, research and investments in the life science
      sector. Upcoming analyses in the Interreg-project Greater Copenha-
      gen Life Science Analysis Initiative will include a detailed survey of the
      life science cluster on the Danish side of Medicon Valley and more.
          An analysis of the clusters on the Swedish side by the name of
      “Life science in Skåne – A survey of companies in the sector” was
      published in the autumn of 2020. The report shows among other
      things that more than 7 500 people work in the life science sector
                                                                                                                                         Carsten Borring,                                        Fredrik Rahl,                                            Søren Møller,                                   Peter Benson,                                   Dorte X Gram,
      in Skåne; this in an increase of 1 500 employees since 2015. A total                                                               Head of Listing. &                                      Director Sedermera                                       Managing Partner                                Chairperson &                                   CEO PILA PHAR-
      of 426 life science companies were identified in Skåne.                                                                            Cap. Markets Nas-                                       Fondkommission.                                          Novo Seeds. See                                 co-founder Suns-                                MA. See p. 44 &
          The analytic work is carried out by Øresundsinstituttet, and the                                                               daq Copenhagen.                                         See p. 120.                                              p. 126.                                         tone. See p. 128.                               133.
      Interreg-project’s leading partner is Medicon Valley Alliance.                      Report on life science in Skåne                See p. 118.
                                                                                          from from November 2020.

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LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
COMMUTERS AND THE LABOUR MARKET

                              PHOTO: NOVO NORDISK
                                                    Over 900 Danish-Swedish border commuters
                                                    in Medicon Valley
                                                    Border commuters are important for the life science sector in Medicon Valley, as many of those
                                                    active in the sector gain their professional experience across the Øresund. There are over 900 bor-
                                                    der commuters in the sector, many of them in positions that require a high level of expertise. At
                                                    least 800 people from Sweden work in the sector on the Danish side. Over 100 border commuters
                                                    from Denmark commute to jobs in the sector in Skåne; commuting for work from Skåne to Zealand
                                                    is thus more common than in the opposite direction. These figures come from a survey in which
                                                    Øresundsinstituttet interviewed the majority of Skåne’s life science businesses, as well as 50 of
                                                    the larger Danish life science companies in Zealand, regarding the number of their employees who
                                                    commute across the Øresund. For example, just over 200 of Novo Nordisk’s employees commute
                                                    from Skåne to the pharma company’s office- and research facilities in Zealand. The coronavi-
                                                    rus-pandemic has created immediate challenges related to taxation, attracting employees and
                                                    more, but also new, flexible working conditions for border commuters.

                                                    More than 900 life science employees commute             and the surrounding areas to make a difference in
                                                    over the Øresund. At least 800 life science employ-      the Danish life science sector, and that the same is
                                                    ees from Sweden work in some of Denmark’s largest        true in the other direction, toward Skåne.
                                                    life science companies. Around 100 border commu-
                                                    ters from Denmark were identified as commuting
                                                    to Skåne for work in the sector.                         Many border commuters at Novo Nordisk
                                                        These results are based on contact for this report   and Ferring
                                                    between Øresundsinstituttet and the region’s busi-       One pharmaceutical company in Denmark with
                                                    nesses in 2020 and 2021. This involved asking the        many employees from Sweden is Ferring Pharma-
                                                    majority of Skåne’s life science companies questions     ceuticals A/S, which was founded in Malmö in
                                                    regarding the number of their employees who
                                                    commute across the Øresund, and 50 larger-scale

                                                                                                                900
                                                    Danish life science companies were also selected
                                                    and interviewed about the same. Over 30 Danish
                                                    life science companies supplied figures regarding
                                                    the number of their employees who commute from               More than 900 Danish-Swedish border
                                                    Sweden, and in total, around 800 people cross the            commuters were identified in Medicon
                                                    border from Sweden to work in the Danish life sci-           Valley in Øresundsinstituttet’s survey
                                                    ence sector. They are frequently people with a high          between 2020-2021.
                                                    level of expertise.
                                                        Thus, people who live in Sweden commute to               800 BORDER COMMUTERS FROM SWEDEN
                                                    e.g. the pharmaceutical companies H. Lundbeck,               At least 800 border commuters from Sweden
                                                    LEO Pharma and Novo Nordisk, the hearing aid                 were identified as working in life science
                                                    manufacturer GN Hearing, the ingredients solution            companies in Zealand; for example, ca.
                                                    company Chr. Hansen, the biotech companies                   200 commuters from Sweden work at Novo
                                                    Genmab and Zealand Pharma and the medtech                    Nordisk on the Danish side of the Øresund.
                                                    company Ambu.
                                                        It may be assumed that the number of border             100 BORDER COMMUTERS FROM DENMARK

COMMUTERS AND THE LABOUR MARKET
                                                    commuters from Sweden to Denmark would be                   At least 100 border commuters from Den-
                                                    higher if board members and consultants were                mark were identified as working in life scien-
                                                    included in the figures; in addition, commuter              ce companies in Skåne. Most of the sector’s
                                                    figures were not supplied by all of the life science        commuters travel from Sweden to Denmark.
                                                    companies asked. Examples (page 14) show that
                                                    labourers from Skåne find their way to Copenhagen

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LIFE SCIENCE ACROSS THE ØRESUND- a survey of transregional commuters, actors, research and investments - Medicon Valley ...
COMMUTERS AND THE LABOUR MARKET                                                                                                                                                                                            COMMUTERS AND THE LABOUR MARKET

OVER 900 DANISH-SWEDISH BORDER                                                                 1950. In 2002, the company was among
COMMUTERS IN MEDICON VALLEY                                                                    the first to consolidate in the then-new
                                                                                               neighbourhood Ørestad, near Copenha-                     FERRING’S NEW RESIDENCE CAN BOOST BORDER COMMUTING
Many life science companies in the Danish-Swedish Medicon                                      gen Airport, and in 2006 it opened a new                 OVER THE ØRESUND ONCE AGAIN
Valley cluster recruit employees from across the Øresund. At least                             global headquarters in Switzerland. Today,
800 people from Sweden work in the sector on the Danish side.                                  Ferring Pharmaceuticals’ International
Over 100 border commuters from Denmark commute to jobs in                                      PharmaService Center and R&D are in                      More border commuters in Medicon Valley

                                                                                                                                                                                                                                                                              PHOTO: NEWS ØRESUND
the sector in Skåne for a total of at least 900 border commuters in                                                                                     may become a reality in the years to come.
                                                                                               Ørestad and employ around 600 people,
the life science sector in the Øresund Region. Most commute from                                                                                        One major reason is that Ferring Pharma-
                                                                                               150 of whom are border commuters from
Sweden to Denmark for work in the sector.                                                                                                               ceuticals (International Pharma Science
                                                                                               Skåne. Between May and September of
                                                                                                                                                        Center) is consolidating at a new address
                                                                                               2021, Ferring Pharmaceuticals will be                    in the Copenhagen area, this time even
                                                                                Number
 Examples of life science                                                      of border
                                                                                               moving to Soundport, near Copenha-                       closer to the southern Sweden.
 companies in Zealand with                                   Number of          commu-         gen Airport. Soundport will be the new                      In the summer of 2021, the pharmaceu-
 border commuters from                                       employees         ters from       Danish headquarters and Ferring Group’s                  tical company will move from its Danish
 Sweden                                     Subsector        in Zealand          Sweden        largest R&D centre. It will be even closer               headquarters in the Ørestad district to
 Novo Nordisk A/S                              Pharma              16 800              206     to Malmö, where the company continues                    Kastrup, adjacent to Copenhagen Airport.
 Ferring Pharmaceuticals A/S                   Pharma                 580              110     to have sales- and marketing activity.                      Ferring Pharmaceuticals’ new Danish
                                                                                                   Another Danish life science company                  headquarters, which goes by the name
 LEO Pharma A/S                                Biotech              2 100               66
                                                                                               with a commuting labour force from                       Soundport, is located right on the coast of
 H. Lundbeck A/S                               Pharma               1 700           40-45                                                               the Øresund Strait, with a clear view of Mal-
                                                                                               both Sweden and Denmark is Novo
 Coloplast A/S                                Medtech               1 300               31                                                              mö, the city in which the company has its
                                                                                               Nordisk. The largest pharmaceuticals
                                                                                                                                                        historical roots. With its 37 500m2, Sound-
 Chr. Hansen A/S                               Biotech              1 800               29     company in Denmark and Scandina-                                                                         Ferring’s new Danish headquarters near Copenhagen Airport, in
                                                                                                                                                        port will be the largest R&D centre for the
 Demant A/S                                   Medtech               1 800               25     via, Novo Nordisk has 206 employees                      Ferring Group, whose global headquarters        Kastrup.
                                                                                               in Denmark who receive their mail in                     are located in Saint-Prex, Switzerland.
 AGC Biologics A/S                               CDMO                 670               22                                                                                                                         chief executive at the company’s headquarters in
                                                                                               Sweden and are thus border commuters                        Ferring Pharmaceuticals expects to recruit
 Genmab A/S                                    Biotech                210               20                                                                                                                         Switzerland today is the Swede Per Falk.
                                                                                               between Zealand and Skåne. Of these                      around 150 new employees as part of the move,
                                                                                                                                                                                                                      The company’s choice to situate the new Danish
 GN Hearing A/S                               Medtech                 630               15     206, 138 are Swedish. Moreover, the                      says Marianne Kock, CEO of Ferring Pharmaceuti-
                                                                                                                                                                                                                   headquarters Soundport near Copenhagen Airport
 Xellia Pharmaceuticals A/S                    Biotech                690               15     company has around five Danish com-                      cals in Denmark.
                                                                                                                                                                                                                   and just one stop from Malmö’s Hyllie district is justi-
 WS Audiology A/S                             Medtech               1 000               13
                                                                                               muters at its facilities in Malmö, where                    – We expect to employ more staff when we move to
                                                                                                                                                                                                                   fied by both practicality and logistics. The view of and
                                                                                               around 75 people are employed.                           our new residence in Kastrup. The new building can
                                                                                                                                                                                                                   proximity to Malmö are also a nod to the company’s
 Radiometer Medical A/S                       Medtech               1 200               13
                                                                                                   – It is absolutely crucial for us as a com-          accommodate up to around 750 employees; we are
                                                                                                                                                                                                                   history, however: it was there that the company was
 Zealand Pharma A/S                            Biotech                230               13     pany to be able to attract and retain com-               just under 600 in our current building. The new staff
                                                                                                                                                                                                                   founded by Dr Frederik Paulsen in 1950, under the
                                                                                               petent employees where we are. This is also              members might be from Denmark, Sweden or other
                                                                                                                                                                                                                   name Nordiska Hormonlaboratoriet. The research
Example of companies in Zealand with 1-9 border commuters from                                                                                          countries. What is important to us is finding the right
                                                                                               true for our Danish subsidiary, and luckily                                                                         lab and factory were built in the Limhamn district.
Sweden: Ambu A/S, Bavarian Nordic A/S, Symphogen A/S, AstraZe-                                                                                          employees with the right competences, she says.
neca A/S, Orphazyme A/S and Ferrosan Medical Devices A/S.
                                                                                               we can bring in sharp minds from Sweden.                                                                            Today, the founder’s son Frederik Paulsen Jr is
                                                                                                                                                           Marianne Kock emphasises that the broadest
                                                                                               Similarly, our subsidiary in Malmö can                                                                              chairman of the board at Ferring Pharmaceuticals,
                                                                                                                                                        possible recruitment sphere will be vital for the
                                                                                               be an attractive workplace for people who                                                                           and he is also the owner – via a foundation – of the
                                                                                Number                                                                  many new vacancies at the new Danish headquar-
                                                                                               commute in the other direction over the                                                                             Malmö-based life science companies PolyPeptide,
                                                                               of border                                                                ters, and employees who commute over the border
                                                                                                                                                                                                                   QPharma, Nordic Drugs and Svar Life Science, which
 Example of life science com-                                Number of          commu-         Øresund, says Kasper Bødker Mejlvang,                    will make all the difference, she says.
                                                                                                                                                                                                                   together employ more than 650 people in Malmö.
 panies in Skåne with border                                 employees         ters from       country manager for Novo Nordisk in                         Historically, the company has made use of
 commuters from Denmark                     Subsector          in Skåne        Denmark
                                                                                               Denmark. He himself works at Novo                        border-commuting employees. Today, more than

                                                                                                                                                                                                                                                                                PHOTO: FERRING
 Arjo Sverige AB                               Medtech                 200              14     Nordisk’s Ørestad office, which employs                  one hundred of those employed at the Internatio-
 PolyPeptide Laboratories AB                      CDMO                 280              14     just under 100 people. He adds:                          nal Pharma-Science Center and R&D in Ørestad,
                                                                                                   – Our position in Ørestad, close to                  Copenhagen are border commuters from Sweden.
 Atos Medical AB                               Medtech                 200              10
                                                                                               the Øresund Bridge, makes commuting                      Back in 2002, Ferring Pharmaceuticals consoli-
 LEO Pharma AB                                 Pharma                   25              10                                                              dated in Denmark and in doing so scaled back its
                                                                                               between work and home in Sweden both
                                                                                                                                                        operations in Malmö, although the company still has
Example of companies in Skåne with 1-9 border commuters from                                   easy and fast. Under normal circumstan-
                                                                                                                                                        sales and marketing activities there. Over the years,
Denmark: Novo Nordisk Scandinavia AB, Boston Scientific Nordic AB,                             ces, without Covid-19, it actually takes
                                                                                                                                                        being established on both sides of the Øresund has
Camurus AB, SVAR Life Science AB, Probi AB and Ascelia Pharma AB.                              less time to commute to and from Malmö                   meant that many border commuters from Denmark
                                                                                               or elsewhere in Skåne than it would                      and Sweden have worked for the company, and the
Source: Information from the companies and annual reports. Commuter numbers refer to           from say Copenhagen to our facility in                                                                              Ferring AB was founded in Malmö.
2018/2019/2020/2021. The numbers apply to border commuters from Sweden and Denmark,
which does not necessarily imply that they are Swedes or Danes. Please note that these figu-
                                                                                               Hillerød, he says.
res may have changed since they were reported. Read more about the method on page 135.             Another of Denmark’s largest pharma-
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COMMUTERS AND THE LABOUR MARKET                                                                                                                                                                                COMMUTERS AND THE LABOUR MARKET

                                                                                                                                            ceutical companies, H. Lundbeck, which has facilities       that fewer Danes are commuting to jobs in the life
                                                                                                                                            in the Copenhagen area and in Malmö, also recruits          sciences in Skåne. Other actors in the sector with
     WORKING FROM HOME DURING THE CORONAVIRUS PANDEMIC HAS                                                                                  from both sides of the Øresund. Around 40-45                whom Øresundsinstituttet has been in contact have
                                                                                                                                            employees in Skåne commute to Denmark, where                confirmed this. It could be related to the lower sala-
     LED TO TAX ISSUES FOR THOUSANDS OF BORDER COMMUTERS                                                                                    around 1500-1600 people work at the company’s               ries in Sweden, even when the special 25% tax rate
                                                                                                                                            headquarters in Valby, Copenhagen.                          with the SINK model is taken into account, accor-
     Partially closed borders in Denmark and Sweden, re-      in Sweden. The tax rate is 25%, but tax deductions                                – At Lundbeck we work to develop treatments             ding to Dorte X Gram, the Danish CEO of PILA
     commendations by authorities and employers to work       are prohibited. The Danish tax rate is markedly                               for neurological disorders by researching and               PHARMA in Malmö. She talks about her company
     from home and negative Covid tests at the border         higher.
                                                                                                                                            developing medicine for migraines, Alzheimer’s,             and more in the interview on page 44-45.
     have made it complicated to commute for work in the         For the ca 14 000 border commuters who usually
                                                                                                                                            and depression, for example. That requires highly               – Since large enterprises in Denmark offer such
     Øresund Region. According to Skånetrafiken and the       travel from Sweden to Denmark according to the
     Øresundsbron Konsortiet, commutes by train and car       most recent available statistics from 2015, working
                                                                                                                                            specialised employees with                                                       good salaries, Danes are often
     over the Øresund Bridge have decreased as a result.      from home may be an advantage, as the taxes in                                neurological expertise. For that ”Our position in                                too expensive – relative to what
     Increased working from home during the coronavirus       Sweden are lower than in Denmark. For the 1000-                               reason, we have an internatio-                                                   I’m prepared to pay at any rate,
     pandemic in 2020 and 2021 has meant tax trouble for      2000 border commuters who travel from Denmark                                 nal workplace, with some of the Ørestad, close to                                she says.
     some border commuters in the Øresund Region.             to Sweden for work however, it may become more                                top experts from around the           the Øresund Bridge,
                                                              expensive.                                                                    globe, and thus naturally we’re
     The Øresund Agreement requires that tax is paid in                                                                                     also happy that we can recruit        makes commuting Expertise creates value as
     the country of employment                                Actors in the border region criticise regulation                              employees to our offices from         between work and it moves between Denmark
     As per the Øresund agreement, border commuters           Whilst some border commuters – both in the life                               both Denmark and Sweden,                                                         and Sweden
     must pay tax in the country in which they perform        sciences and in other sectors – have worked with                              says Matias De Place, senior di- home in Sweden                                  The report Life Science in Skåne
     their work duties. For Øresund commuters to be           the restrictions and continued to commute throug-
     taxed in their country of employment, at least 50%       hout the pandemic, others have worked from home.
                                                                                                                                            rector of HR at H. Lundbeck.          both easy and fast.” from 2020 is part of the Greater
                                                                                                                                                                                                                             Copenhagen Life Science Analy-
     of their work duties must be performed in that           In March 2021, the information service Øressund-

                                                                                                                                                                                                                   PHOTO: NOVO NORDISK
                                                                                                                                                                                                                        sis Initiative, and it identified around
     country over a three-month period; otherwise, they       direkt told News Øresund that they receive around
                                                                                                                                            AstraZeneca’s closure sent more                                             100 Danes with full-time positions at
     should pay tax in their country of residence.            200 e-mails regarding the taxation issue every
                                                                                                                                            Swedes to Denmark                                                           around 30 life science companies in
         For border commuters who have elected or felt        week. The Facebook forum “I klemme mellem 2
     obligated to work from home during the pande-            lande” – stuck between two countries – has more                               One of the many Swedes in the Danish                                        Skåne. The Danish labour force finds
     mic, that has meant – and may continue to mean           than 4000 members. Among those to highlight                                   life science sector is Niclas Nilsson, head                                 its way to some of the Swedish subsi-
     – filing taxes for certain periods in their country of   the bureaucratic challenges that surround border                              of Open Innovation for Danish LEO                                           diaries of larger Danish pharmaceuti-
     residence and for other periods in their country of      commuting and tax issues during the pandemic                                  Pharma. He has noticed more Swedes                                          cal companies such as LEO Pharma,
     employment and thus submitting tax declarations          has been the network organisation Medicon Valley                              taking on employment in Denmark in                                          Novo Nordisk and H. Lundbeck –
     in both Denmark and Sweden. According to the             Alliance, which works to promote Denmark and                                  the years since he started working for                                      see table on page 14.
                                                                                                                                                                                         Kasper Bødker Mejlvang,
     Öresund Agreement however, tax shall not be paid         Sweden’s shared interests in the life science sector.                         LEO Pharma in Denmark in 2005.                                                  Larger companies in Skåne, as
                                                                                                                                                                                         Country Manager for Novo
     in both countries for the same period, and another          The Freedom of Movement Council, which works                                   – There are definitely a lot of Swedes   Nordisk in Denmark.            well as the medtech manufacturers
     Nordic agreement, the Trekk agreement, makes             on behalf of the Nordic governments, and the orga-
                                                                                                                                            in Danish life science, he says. As he                                      Arjo and Atos Medical and the
     it possible for authorities to transfer tax revenue      nisation for Danish-Swedish political collaboration
                                                                                                                                            sees it, many have come to Denmark in the past 5-10         CDMO-company PolyPeptide Laboratories – all of
     that has been paid between the Nordic countries.         Greater Copenhagen Committee have also repea-
                                                                                                                                            years, and they contribute with additional competen-        whose global headquarters are in Malmö – also take
     For Øresund commuters who live in Denmark and            tedly brought these problems to the attention of the
     work in Sweden, changes in tax liability can lead to     tax ministries in Denmark and Sweden in order to
                                                                                                                                            ces and expertise.                                          advantage of the Danish labour force, they report.
     unpleasant fiscal surprises, as many usually pay a       establish a fiscal exception for Øresund commuters                                The combination of Danish and Swedish                       Remarkably, McNeil AB in Helsingborg,
     special income tax, called SINK-tax, on their work       – to date, to no avail.                                                       colleagues in the sector has become much more               which is Skåne’s largest life science company with
                                                                                                                                            widespread, accepted – even completely normal,              around 655 employees and has historical roots
                                                                                                                                            says Niclas Nilsson. He notes that there was a              in the Danish company LEO Pharma, has no
                                                                                                                      PHOTO: NEWS ØRESUND

                                                                                                                                            particular surge in Swedish employees in the life           border commuting employees from Denmark it its
                                                                                                                                            sciences in Zealand when the Swedish-British                staff, whilst medium-sized and particularly small
                                                                                                                                            pharmaceutical company AstraZeneca dismantled               companies – for example at Medicon Village and
                                                                                                                                            their R&D activities in Lund ten years ago as part          Ideon in Lund – make use of the labour force from
                                                                                                                                            of a larger, global R&D-restructuring, and 900              Denmark.
                                                                                                                                            positions disappeared. Niclas Nilsson talks about               In addition, there are 20 life science companies
                                                                                                                                            his work in the life science sector in Denmark in           with Danish CEOs in Skåne – read more on page
                                                                                                                                            more detail in the interview on page 41-43.                 31. If board members and consultants are included
                                                                                                                                                Many of those competences then became                   in the count, the number of border commuters
                                                                                                                                            accessible for Danish life science companies on the         from Denmark linked to the life science sector in
                                                                                                                                            other side of the Øresund, for example, says Niclas         Skåne is even higher. The Danish-Swedish biotech
                                                                                                                                            Nilsson. At the same time, he has the impression            company PILA PHARMA in Malmö for example
                                                                         ØRESUND - ØRESUNDSINSTITUTTET GCLSAI • June 2021                   ØRESUND - ØRESUNDSINSTITUTTET GCLSAI • June 2021
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COMMUTERS AND THE LABOUR MARKET                                                                                                                                                                                                              COMMUTERS AND THE LABOUR MARKET

has put together an organisation that comprises                                    is the biotech company Ascelia Pharma which is
both Danish and Swedish consultants, as CEO                                        headed by the Danish CEO Magnus Corfitzen. The
Dorte X Gram recounts; read more on page 44-45.                                    company expected to double its staff in 2020 and                                     COMMUTER STATISTICS AFTER 2015 IN UNDERSUPPLY
                                                                                   in the years to follow. Today, it employs 15 people
Danish life science companies anchor                                               full-time in Hyllie, south of Malmö, where it mo-                                    2015 is the most recent year for which official statistics      After 2015, travel and commuting over the
startups in Skåne                                                                  ved last year from its previous location at Medeon                                   on border commuting over the over Øresund Strait             Øresund has been negatively impacted by three
                                                                                                                                                                        are available, as data exchange between Statistics           events: In response to the migration crisis, Sweden
Another aspect of border commuting in Medicon                                      Science Park.
                                                                                                                                                                        Denmark (DST) and Statistics Sweden (SCB) has been           introduced temporary border checks of incoming
Valley is that Swedes who have spent several years                                     – More than half of the Swedish employees at                                                                                                  travel from Denmark. In November 2019, Denmark
                                                                                                                                                                        temporarily suspended. The reason for this is that
working in the life science sector in Denmark                                      Ascelia Pharma today worked in Denmark for years;                                    Sweden’s rules regarding public access are conside-          introduced a temporary internal border inspection
return to Skåne in new positions – see page 36-40                                  that means that they have been in a global pharma                                    red more extensive than their Danish counterparts.           of those coming from Sweden to prevent criminal
for some examples. Large Danish life science com-                                  headquarters and gained experience in late-stage                                        According to the most recent statistics from              activity across the border. In March 2020, Denmark
panies thus function as so-called anchor compa-                                    drug development and commercialisation that they                                     Ørestat / the Øresund Databank, the number of                partially closed the border to Sweden to limit the
nies for life science companies in Skåne as well,                                  would not have had the opportunity to gain in                                        commuters and other gainfully employed individuals           spread of the coronavirus SARS-Cov-2. Sweden par-
which can recruit experienced personnel from                                       southern Sweden, he says.                                                            who commute over the Øresund rose by 297% in the             tially closed its borders with Denmark for the same
larger global companies.                                                               Employees in Zealand and in Skåne can differ                                     period from 2000-2015.                                       reason in December 2020. At the time of writing in
   Among those who have benefitted from that                                       somewhat, Magnus Corfitzen observes, because                                            In the year 2000, there were 3291 border commu-           the spring of 2021, Denmark and Sweden have both
                                                                                                                                                                        ters over the Øresund, and in 2015, that number had          begun to loosen travel restrictions over the Øresund.
                                                                                                                                                                        risen to 15 182 people, 14 045 of whom commuted                 Efforts are currently underway to revive statistics
                                                                                                                                                                        from Skåne to eastern Denmark, and 1137 of whom              on Øresund commuting. In the spring of 2021, Regi-
AROUND 1 300 PEOPLE WHO RESIDE ABROAD WORK IN THE LIFE SCIENCE                                                                                                          moved in the other direction.                                on Skåne and Statistics Denmark have explored the
SECTOR IN DENMARK...                                                                                                                                                       2008 was a record year: 25 689 people had an in-          possibility of using Danish data from e.g. Denmark’s
                                                                                                                                                                        come on the other side of the Øresund. The number            income register to identify the number of trans-Øre-
The number of people who reside abroad and are employed in the life science sector in Denmark rose 12%                                                                  then dropped, and in 2015 the number of commuters            sund commuters.
between 2008-2018. The majority are employed in the capital area. Foreign employment in Denmark’s life                                                                  was nearly one-third lower.                                     In 2019, the Nordic Council of Ministers and the
science sector comprises ca 2.5% of all employees.                                                                                                                         The majority (91%) commute from the Swedish               Nordic ministers of state set the goal of making
                                                                                                                                                                        to the Danish part of the region, but the number of          Scandinavia the world’s most sustainable and inte-
                                         The number of people who reside in                          The number of people who reside outside                            commuters in the other direction has grown.                  grated region by 2030.
                                         Denmark and are employed in the life                        Denmark and are employed in the life science
 Denmark                                 science sector in Denmark                                   sector in Denmark

 Area                                              2008                          2018                          2008                            2018
                                                                                                                                                                  companies’ composition varies according to size;                   country of employment

                                                                                                                                                                                                                                                                                                   PHOTO: H. LUNDBECK
 Capital Region of Denmark                        29 032                        38 028                         1 028                           1 209
                                                                                                                                                                  that is both unique and positive and should be used                rather than in their
 Region Zealand                                    7 044                         6 858                          107                             69
                                                                                                                                                                  to benefit everyone involved, he says.                             country of residence.
 Elsewhere in Denmark                              9 764                         9 887                           78                             78                   – Being able to work freely in every direction is               Working from home
 Total                                            45 840                        54 773                         1 213                          1 356               incredibly important so that the right competences                 during the pandemic
                                                                                                                                                                  can be recruited – for both Danish and Swedish                     has made it difficult
Source: Statistics Denmark. The figures do not indicate how many Swedes work in the life science sector in Denmark. It is plausible that the majority of those    companies, he says.                                                to fulfil the physical
who reside abroad are Swedes, as the majority of the commuting is to life science companies in the capital region in Zealand (Denmark). The figures refer to
seven sector codes that are used to define the life science sector: 26.60.10, 26.60.90, 32.50.00, 46:46.10, 72.11.00, 72.19.00 and CF Pharmaceutical Industry.
                                                                                                                                                                                                                                     presence requirement of
                                                                                                                                                                  Pandemic creates tax issues for border                             50% in the country of
                                                                                                                                                                  commuters                                                          employment.                 Matias De Place, Senior
                                                                                                                                                                  The coronavirus pandemic has complicated border                       As per the rules, tax    Director i HR i H. Lundbeck
... AND THEY PAY CA 265 MN DKK IN INCOME TAX                                                                                                                      commutes for work between Sweden and Den-                          must then be paid in
Income tax from people who reside abroad and are employed in the life science sector in Denmark rose                                                              mark. As a result, train- and car commutes over                    both countries – albeit not at the same time, but
82% between 2008-2018. During that same period, people in the life science sector who reside abroad paid                                                          the Øresund Bridge have dropped: -43% and                          for different periods throughout the year. Not
a total of ca. 2.6bn DKK in income tax in Denmark.                                                                                                                -27%, respectively, since 2019, according to Skå-                  declaring this might result in tax trouble cos-
                                                                                                                                                                  netrafiken and the Øresundsbron Konsortiet.                        ting thousands of crowns. This has meant extra
                                                                                                                                                                     The pandemic has thus led to problems related                   administration and expenses for many, inclu-
  Denmark                                                                                                   2008                              2018
                                                                                                                                                                  to how employees working from home should be                       ding the Malmö-based Ascelia Pharma, says the
  The total income tax from people who reside in Denmark and are                                        6.4 mn DKK                       10.3 mn DKK              taxed. The regulations are part of the Øresund                     company’s CEO Magnus Corfitzen. As he sees it,
  employed in the life science sector in Denmark
                                                                                                                                                                  Agreement, a taxation agreement between Sweden                     the situation has been suboptimal, although he
  The total income tax from people who reside outside Denmark and                                      145 mn DKK                         265 mn DKK              and Denmark. According to the agreement, border                    understands border regions will probably never be
  are employed in the life science sector in Denmark
                                                                                                                                                                  commuters must work on site in their country                       completely frictionless.
Source: Statistics Denmark. The figures refer to seven sector codes that are used to define the life science sector: 26.60.10, 26.60.90, 32.50.00, 46:46.10,      of employment at least 50% of the time over a                         To date, national authorities in Sweden and
72.11.00, 72.19.00 and CF Pharmaceutical Industry.                                                                                                                three-month period in order to be taxed in their                   Denmark have not offered exemptions related to
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COMMUTERS AND THE LABOUR MARKET                                                                                                                                                                           COMMUTERS AND THE LABOUR MARKET

taxation issues for border commuters during the              during the coronavirus pandemic. According to
pandemic, despite calls for them by the Nordic               CEO Petter Hartman, a consequence will be that
Freedom of Movement Council, the collaborative               companies will have more difficulty recruiting and                          Examples of life science companies with facilities in
Danish-Swedish organisation Greater Copenhagen               retaining employees from the opposite shores of
Committee and others.                                        the Øresund, and the efforts being made to attract                          both Skåne and Zealand
    – Politicians say that there is no double taxation,      investments and talent to the region are also suffe-
                                                                                                                                                                                                 • Lohmann & Rauscher. Global headquarters in Ger-
but in effect there is, as commuters have difficulties       ring damage.                                                                PHARMA/BIOTECH
                                                                                                                                                                                                   many and Austria, branches in Vedbæk and Lund.
getting refunds of the excess tax they have paid;               – We have to handle crisis situations better. Bor-
each of the tax authorities believes that they have          der regions get shabby treatment on a national level,                       • Novo Nordisk. Global headquarters near Copenha-
                                                                                                                                                                                                 • Swedish Labex. Headquarters in Helsingborg
done what they have to and that the other tax                and if border regions are to be motors for growth,                            gen in Bagsværd, offices in e.g. Ørestad and Malmö.
                                                                                                                                                                                                   and branches in e.g. Valby, Copenhagen.
authority is responsible for the reimbursement, says         that has to change, he says. Read more in the inter-
Magnus Corfitzen. He adds:                                                        view on page 108-109.                                  • H. Lundbeck. Global headquarters in Valby, Copen-
                                                                                                                                                                                                 • BD (Becton, Dickinson and co). Global headqu-
    – Without border commu- ”Without border                                           Britt Meelby Jensen, CEO of                          hagen, sales and marketing division in Malmö.
                                                                                                                                                                                                   arters in the USA, branches in e.g. Helsingborg
ting, we dramatically reduce                                                      the medical equipment manu-
recruitment potential in both
                                      commuting, we                               facturer Atos Medical in Malmö,                        • LEO Pharma. Global headquarters near Copen-
                                                                                                                                                                                                   and Lyngby.

Denmark and Sweden, and               dramatically reduce agrees. The company moved its                                                    hagen in Ballerup, sales and marketing division
                                                                                                                                                                                                 • Medidyne. Headquarters near Copenhagen in
the competitiveness of the
region as a whole decreases.
                                      recruitment potenti- headquarters                          from Hörby, Skåne
                                                                                  to Malmö in 2016. Among
                                                                                                                                           in Malmö.
                                                                                                                                                                                                   Nærum and branches in e.g. Ängelholm, Skåne.

The question then is whether          al in both Denmark other reasons, they wanted to                                                   • Ferring Pharmaceuticals. Global headquarters
                                                                                                                                                                                                 • European Institute of Science. Headquarters at
companies should recruit from and Sweden, and                                     facilitate access to the Danish                          in Switzerland, branches in e.g. Ørestad/Copen-
                                                                                                                                                                                                   Ideon Science Park in Lund, branch in Kastrup
elsewhere in Europe or from                                                       labour market, which they did.                           hagen and Malmö.
other parts of the world – if         the competitiveness Although she and her colleagues                                                                                                          near Copenhagen.

people can’t be in the same           of the region as a                          have been able to commute                              • RhoVac. Headquarters at Medicon Village in
                                                                                                                                                                                                 • Acarix. Headquarters in Malmö, branch in e.g.
place anyway, and we have                                                         across the Øresund during the                            Lund, branch near Copenhagen in Hørsholm.
to take transfer pricing etc          whole decreases.”                           pandemic, the difficulties of bor-
                                                                                                                                                                                                   Hellerup in the Copenhagen area.

into account anyway, even                                                         der commuting have nonetheless                         • Astellas Pharma. Global headquarters in Japan,
                                                                     PHOTO: NEWS ØRESUND

for employees whose workplace is                                           hit the Øresund Region as a whole,                              Nordic headquarters in Kastrup and a branch in        CRO/CMO/CDMO
just on the other side of the bridge.                                      she says.                                                       Malmö.
Our region has so much to offer on                                             – I find that there has been very                                                                                 • Visiopharm. Global headquarters near Copenha-
both the Danish and Swedish sides.                                         little focus on making it easier –                            MEDTECH                                                   gen in Hørsholm and a branch in e.g. Lund.
We’ve built up so much and we need                                         neither on the part of Sweden nor
to reinforce that further so it will                                       Denmark, she says, pointing out that                          • Arjo. Global headquarters in Malmö, branch            • Red Glead Discovery. Headquarters at Medicon
continue to become stronger in the                                         the Danish and Swedish rules have                               near Copenhagen in Lynge.                               Village in Lund, office at COBIS in Copenhagen.
future, says Magnus Corfitzen. He                                          been unclear. As she sees it, it is es-
believes that smoother commutes,           Magnus Corfitzen, CEO           sential that potential candidates don’t                       • Atos Medical. Global headquarters in Malmö and        • Larix. Headquarters in Herlev, branch at Medi-
less administration and authorities’       Ascelia Pharma.                 get the impression that crossing the                            e.g. manufacturing and R&D in Hörby, Skåne and          con Village in Lund.
acceptance that working from home                                          Øresund Bridge can be a nuisance.                               a branch in Roskilde.
during this or any other pandemic has no effect                 – If the Øresund Region and transborder com-                                                                                     • KLIFO. Headquarters in Glostrup in the Copenha-
on tax affairs are essential and necessary for the           muting are something we really want, then it’s also                         • Getinge. Global headquarters in Gothenburg,             gen area, branches in e.g. Medicon Village in Lund.
long-term growth of the life sciences in the region.         important that commuting is made easier – even                                branches in Malmö and e.g. Ballerup, near
Among other things, this is because promising                during a coronavirus pandemic, she says. More                                 Copenhagen.                                           • Bioneer. Headquarters near Copenhagen in
biotech companies in Skåne are sometimes depen-              details in the interview on page 22-23.                                                                                               Hørsholm, branch at Medicon Village in Lund.
dent on life science expertise from the Danish side             Novo Nordisk’s country manager in Denmark                                • Mediplast. Global headquarters in Malmö, bran-
of the region in order to grow into a commercial             Kasper Bødker Mejlvang is positive at the moment                              ch near Copenhagen in Herlev.                         OTHER
company – as is the case with Ascelia Pharma, he             when it comes to the opportunities for the labour
says – whilst competence in Skåne is, as mentio-             market and recruitment that the coronavirus pande-                          • BoneSupport. Headquarters at Ideon Science Park       • Chas. Hude. Headquarters in Copenhagen, bran-
ned earlier, broadly beneficial for the life science         mic have made visible since March of 2020.                                    in Lund, branch in e.g. Lyngby near Copenhagen.         ch at e.g. Medicon Village in Lund.
industry in Denmark.                                            – The lockdowns showed us that it’s very possible
                                                             to work from home, and in the future that will also                         • Rubin Medical. Headquarters in Malmö and a            • Høiberg. Headquarters in Copenhagen, branches
                                                                                                                                                                                                   at e.g. Medicon Village in Lund and MINC in Malmö.
Higher priority for border region challenges                 make working elsewhere in the region both easier                              branch in the Copenhagen area in Hvidovre.
Like Ascelia Pharma, the Danish-Swedish network              and more attractive. But it’s obviously important
organisation Medicon Valley Alliance is also                 that there is proper and flexible framework in place
critical of the border commuting conditions                  for employees who commute, he says.
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