Analysts predict surge in Danish biotechs

Analysts are predicting a surge in partnering activity for Danish biotechnology firms, as major pharmaceutical players look to augment their ailing pipelines and replace blockbusters that are coming off patent.

Already this year, UK drug major GlaxoSmithKline invested around $5.45 billion for a 10% stake in Copenhagen-headquartered GenMab in return for exclusive rights to its blood cancer drug candidate HuMax-CD20 as well as any other CD20-targeting antibodies the firm develops, while US drug major Schering-Plough entered a $250.0 million accord for local rights to Danish drugmaker ALK-Abello's tablet-based allergy immunotherapies (Marketletter January 1 & 8). According to industry observers, more deals could be on the way.

Anette Rye Larsen, an analyst at Copenhagen firm Gudme Raaschou, quoted by the Wall Street Journal, believes 2007 will be another good year for the Danish biotechnology industry, especially as these firms are less developed than in other countries like the USA.