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(Last updated: 19 Jul 2007)
Trends and opportunities
The market
The Scandinavian biotechnology industry should be of great interest to Australian companies because of the high level of investment and the quality of academic research.
A snapshot of the biotechnology industry in Finland and Scandinavia, in general, shows the following:
- Finland accounts for 10 per cent of all Europe's new medical biotechnology companies
- Twenty-five per cent of late-clinical trial drugs originate from Finland, Denmark or Sweden
- Finland and Sweden top the list of R&D:GDP ratio globally
- Denmark is Europe’s number three pharmaceuticals exporter
- There are several biotechnology clusters throughout Scandinavia and collaboration is encouraged between companies, academia and institutions
- Sweden is Europe’s number four biotechnology market (behind the UK, Germany and France)
European investors remain optimistic about the fundamentals and longer-term prospects of the industry. Experts believe the European market for biotechnology products will quadruple within 10 years.
Opportunities
The European biotechnology industry offers Australian companies opportunities for forming alliances and export markets because:
- The European biotechnology market offers a critical mass and well established international networks
- The market is open for international collaborations and offers easy access to its biotechnology industry through government supported biotechnology clusters
- Companies have access to funding from public sources as well as private funds
Because of the size and scope of the European biotechnology industry, there are many large and small opportunities in many different sectors. However, some of the key opportunities are:
- Human health
- Environmental remediation
- Agricultural biotechnology
Competitive environment
Like Australia, Europe’s biotechnology industry is dominated by small-medium enterprises (SMEs).
The European market is less competitive than the USA.
As venture capital groups have raised increasing amounts of capital, the flow of private equity commitments made to European biotechnology firms has increased substantially.
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Tariffs, regulations and customs
All European Union (EU) countries are covered by a harmonised trade system. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia. Goods travelling between EU-member states are free of customs duty.
Value added tax is payable at varying levels in each member state.
Import licenses may be required and you may need an export certificate from Australia.
Certain products will need to comply with pan-European legislation for medical devices, medicines, foods and ingredients. There are also local variations in legislation, packaging and labelling that need careful consideration before shipping samples or final products.
Industry standards
Biotechnology cuts across many legislative areas, and there is no single pan-European law covering the sector. Laws and voluntary standards vary from country to country and you should seek advice from Austrade or your local partner.
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Marketing your products and services
Market entry
The methods of market entry for biotechnology companies seeking opportunities in Europe are equally applicable for Finland and Scandinavia. Those methods are:
- Supplying a European company with products or raw materials
Supplying an existing European biotechnology company is a traditional market entry strategy, and a good option to consider for companies with products that can be easily combined by those of the European companies. Pharmaceutical companies are likely to be a major end-user. You can develop relationships with these companies via:
- licensing
- sales
- contracting
- service
- Collaboration with European company/institution
Australian biotechnology companies can engage with European biotech/pharma companies and research institutions in collaborative projects, often in the development phase of new products. These relationships can take the form of:
- technology transfers
- in-licensing and out-licensing
- co-development (platform development through to product pipeline)
- co-marketin
- Investment into Europe
In order to gain access to venture capital funding or research collaborations it may be necessary to invest in Europe. This could take the form of setting up a branch of your company overseas, or acquiring a suitable European company.
- Running clinical trials in Europe
It can be advantageous to run clinical trials in Europe, rather than in the USA or Australia. Some of the benefits are:
- The Mutual Recognition Procedure means that trials conducted in one European Union (EU) country are approved in the other EU member states.
- In many European countries trials are cheaper to run than in the USA.
- Working with European scientists on a trial builds your credibility.
- As the trial process can be quicker in Europe, you can start generating revenue faster.
- Media coverage is easier to generate if you are in the market.
- A collaboration partner can help the approvals process with the European authorities.
The European Agency for the Evaluation of Medicinal Products can provide more information on clinical trials in Europe.
Trade fairs and exhibitions are also another way of entering the biotechnology market, eg. Scandinavian Biotech Arena.
Because of the need to protect intellectual capital, there is little e-commerce activity in the biotechnology sector. However, there are some networking and partner search sites, such as:
Transport
Finland is easily accessible from Norway, Sweden, Russia and Germany, with its major cities all in close proximity to other European hubs. The eastern Finnish border is also the European Union’s only common border with Russia.
Helsinki-Vantaa International Airport is the busiest of Finland’s 21 airports. It handles around 500 flights daily.
The country boasts an excellent road network and two international highways, as well as a huge network of lakes, waterways, canals and sea lanes.
Surface shipping to and from the Nordic region is by car-ferry and container ships, with the frequent daily ferry services between Helsinki and Tallinn. Despite the country’s northern location and long winter, its harbours are open all year round.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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