[Report] The Power of Europe's Largest Bio Cluster with a 100-Year History... 'A Self-Sustaining Ecosystem for Companies'

The Heart of Denmark's Pharmaceutical and Bio Industry, Medicon Valley①

Ranked Among the World's Top 3 Bio Clusters
Rapid Growth Through Denmark-Sweden Synergy
Strongly Built Research and Investment Infrastructure

Denmark, known in Korea as the 'Land of Probiotics,' is actually one of the world's leading pharmaceutical and biotech powerhouses. Although it is a small country with a population of about 5.9 million, it is ranked first in Europe and second globally in the field of biotechnology.

At the core of this growth is the 'Medicon Valley,' regarded as one of the top three biotech clusters worldwide. According to the Medicon Valley Alliance, a coalition of institutions within Medicon Valley, there are over 1,150 life sciences-related companies in the cluster, employing approximately 65,500 people. This is the largest workforce in Europe by number of employees. Global big pharma companies such as Novo Nordisk, which recently rose to the second-largest pharmaceutical company by market capitalization thanks to the rapid growth of diabetes drug Ozempic and obesity drug Saxenda, psoriasis treatment developer LEO Pharma, and psychiatric treatment developer Lundbeck are all based here. In Korea, Samsung Bioepis also entrusts biosimilar contract manufacturing (CMO) to Fujifilm Diosynth Biotechnologies’ factory located in Hillerød near Copenhagen.

Researchers at the Contera Pharma Institute located in Copenhagen, Denmark, are conducting new drug development research.
Photo by Lee Chunhee

The most distinctive feature of Medicon Valley is that it was formed 'naturally.' Starting in the early 1900s with LEO Pharma, followed by Novo Nordisk and Lundbeck establishing themselves in the area, other pharmaceutical companies, medical device firms, and hospitals naturally gathered, creating what is now Medicon Valley. There was no intervention from the government or local authorities. Those who saw potential voluntarily came together to form the cluster.

Exterior view of Novo Nordisk headquarters located in Copenhagen, Denmark [Image source=Reuters Yonhap News]

This is quite different from countries like Korea, where the government or local authorities directly prepare land and foster clusters through active and concentrated support, such as in Incheon Songdo and Chungbuk Osong. Of course, the government or local authorities do not completely ignore cluster promotion. However, their role is limited to indirect support and participation in governance as part of the ecosystem. Anette Steenberg, CEO of the Medicon Valley Alliance, emphasized that "there is absolutely no direct support from the governments or local authorities of Denmark and Sweden," highlighting that it is a self-sustaining cluster.

Oresund Bridge connecting Copenhagen, Denmark and Malmo, Sweden [Image source=Pixabay]

Another special aspect of Medicon Valley is that it spans two countries: Denmark and Sweden. Pharmaceutical and biotech companies are located in eastern Denmark, while medical device companies are based in the southern Swedish region called Skane, and these two areas are united under the single framework of Medicon Valley, generating strong internal synergy.

Especially significant was the opening of the Øresund Bridge in 2000, connecting the two countries, and the following year, both Denmark and Sweden joined the Schengen Agreement, which eliminated border controls between EU member states. What used to take over an hour by ferry can now be crossed in 30 to 40 minutes, and it has become much easier to use Copenhagen Kastrup International Airport from Malm? and Lund in Sweden. As unemployment surged in Malm? due to the shipbuilding industry downturn, many Swedes from Malm? began commuting to Copenhagen for work, while Danes working in Copenhagen moved to Malm? to escape the exorbitant cost of living and housing prices, effectively forming a single economic zone. This exchange rapidly expanded the scope of Medicon Valley.

Status of Major Pharmaceutical and Bio Companies Established in Medicon Valley [Image provided by Medicon Valley Alliance]

Medicon Valley is more than just an industrial cluster; it forms a vibrant ecosystem with extensive industry-academia collaboration and investment. It is recognized as having a solid educational foundation capable of addressing the chronic research challenges of high-value industries. Leading universities in the region, including the University of Copenhagen in Denmark and Lund University in Sweden, which spearheaded the founding of the Medicon Valley Academy (the predecessor of the Medicon Valley Alliance), annually produce about 2,000 doctoral-level life sciences professionals. Nine universities and research institutions and 28 hospitals actively collaborate on research and development (R&D) within the cluster. Companies invest heavily in R&D, accounting for about 30% of domestic private research funding in Denmark alone.

Although biotech companies have recently faced difficulties in raising funds due to the global economic downturn, Medicon Valley has strong supporters. Venture capital funds established directly by Novo Nordisk and Lundbeck are actively investing, and venture and investment banks such as BankInvest and Sunstone Capital are also conducting aggressive seed investments.

Thomas Sager, CEO of Contera Pharma, a biotech company based in Copenhagen, said, "Medicon Valley hosts hundreds of life sciences companies and has an excellent educational environment that produces highly educated life sciences talent. In terms of investment, large pharmaceutical companies are making significant investments through industry-academia collaboration, creating a very favorable environment."