Norway offers an environment where biotech can prosper. In its ambitions for biotechnology, the country is building on firm foundations given its science base, its high level of GDP, and the country's long tradition of international collaboration, both with Nordic neighbours and further a field. In 2007, Norway was home to 2% of Europe's biotech companies.
Norway is ranked 11th when comparing the number of product candidates to other European countries (Ernst and Young publication: Beyond Borders report 2009). The Norwegian Bioindustry Association (NBA) recently performed a survey to map the Norwegian Clinical Development Pipeline. The aim of the survey was to map clinical trials that originate from Norwegian research. Hence, only projects of Norwegian origin are included in the report - the survey mapped 39 clinical trials (phase I - III) in 2009. In addition, the survey revealed that 22 other projects are expected to progress to clinical phase I during 2010. Compared to similar surveys in 2007 and 2008 the survey shows that the Norwegian biotech pipeline has a healthy rate of growth, in all but clinical phase III. The same number of companies are now managing 12 more project than in 2008. The Norwegian Drug development pipeline 2009 has increased to a total of 61 projects in late-pre clinical and clinical phases. 50 of these projects phases are classed as therapeutic. The majority of these therapeutic projects (52%) are focusing on cancer related conditions. The Oslo Cancer Cluster, a member and network organization for industry, organizations, research institutions, finance institutions and regional development actors, strongly represents the field of cancer R&D in Norway. There are approximately 39 biopharma companies within the Oslo Cancer Cluster, including some very innovative players.
Biotech in Norway Gets More Funds
In 2002 a new tax credit system was introduced, SkatteFUNN. In addition the government has started a number of seed funds and called for cooperation between public and private investors to provide Norwegian knowledge-based industries with long term capital. Sarsia Seed is a Norwegian Seed Capital Fund which invests in Norwegian early phase technology companies within biotechnology. The fund has a total capital of NOK333.5 million. A handful of Norwegian-based venture capital firms back life sciences companies, including Neomed Management, Teknoinvest, Sarsia Management, Selvaag Venture Capital and Sakorn Invest Management.
Public R&D spending in Norway is underpinned by the country's great wealth of natural resources and economic prosperity. Norway is the world's third largest exporter of oil and gas, the economy is currently enjoying strong growth with high oil prices, a ubiquitously strong currency, the Norwegian krone, and low unemployment level. In 2005, total R&D expenditure from public and private sources reached $5.9 billion, or about 2% of GDP. Most public spending on R&D is directed by the Research Council of Norway. In addition to funding basic research, the Council supports three major programs for nurturing biotech: Fuge - a functional genomics project; Prosbio - for research in bioprocessing; and Mabit - stimulating marine bioprospecting. While the public research sector has long had a mission to transfer knowledge to industry, it is acknowledged that private-public research links could be strengthened further. Norway understands it needs to get its national innovation system running efficiently, and a white paper on innovation was published on Dec. 5, 2008.
The 2009 national budget resulted in an increase in R&D allocations of roughly NOK1.6 billion, which translates into real growth of about 4.4% compared with 2008. The Research Council's budget for 2009 is NOK 6,408 million, which is an increase of about NOK490 million compared with 2008.
A Network for Norwegian Biotech Companies
The NBA was established in autumn 2001 and has about 120 member companies. The Association is an independent member organization with the purpose to promote the development of Norwegian biotechnological trade and research.
A Snapshot of Norwegian Drug Development Companies
- Algeta is an oncology company developing treatments for bone metastases and disseminated tumor types using alpha particle emitters. The lead product Alpharadin is targeting bone metastases which occur frequently in major cancers including hormone-refractory prostate cancer, breast, lung, kidney and thyroid, and represent an area of high unmet medical need. Alpharadin is in phase III trial for hormone refractory prostate cancer.
- A PCI Biotech-led consortium ranked 3rd of more than 300 European projects and has been awarded a Ä1.1 million grant from the EU Eurostars Program. PCI Biotech has developed a unique and patented light induced delivery of macromolecules with potential for chemotherapy, protein therapy, nanomedicine and oligonucleotide therapy.
- Photcure develops and sells pharmaceuticals and medical devices based on photodynamic technology for dermatology and oncology markets: In addition the company is developing new product and product application by having ongoing clinical trials.
- Clavis Pharma has raised NOK129 million in gross proceeds through a private placement of 10,750,000 new shares. Clavis Pharma develops new and superior pharmaceuticals by leveraging the potential of its Lipid Vector Technology (LVT). The Company's objective is to build an attractive pipeline of new drug candidates in oncology and subsequently license these out to strategic partners for further co-development and marketing.
- Lytix Biopharma is focusing on anti-microbials and cancer therapeutics. The Company develops novel antimicrobial peptide-based drugs for the treatment of resistant bacterial and fungal infections, as well as first-in-class oncology treatments.
- Biotec Pharmacon develops new pharmaceutical products for treatment of immune related diseases. The bioactive compound SBG (soluble beta-1,3/1,6-glucan) is in clinical phase III development within treatment of diabetic ulcers and prevention and treatment of oral mucositis. Biotec Pharmacon has moved all its enzyme activities into a newly established subsidiary: Biotec Marine Biochemicals. The target is to strengthen the development of the marine enzymes business.
- Algipharma is focusing on the areas of respiratory diseases, wound healing and conditions caused by bacterial biofilms. The company's vision is to be a world leading biopharmaceutical company that develops disruptive alginate technologies in order to fight diseases effectively through high-impact, innovative therapies.
- Bionor Immuno is a multidisciplinary biomedical drug development company with a well-established platform technology for the development of therapeutic and preventative vaccines for infectious diseases using a modified peptide-based approach.
- Pronova Biopharma specializes in the research, development and manufacture of marine originated omega-3 derived pharmaceutical products from marine components and natural lipids. Omacor/Lovaza is prescribed as an adjunct to diet for the treatment of elevated levels of triglycerides in humans, and it is also approved in certain markets for the secondary prevention of post-myocardial infarction. A phase III study shows that Omacor/Lovaza reduces mortality and morbidity in patients with chronic heart failure.
