It’s no secret that it’s been a challenging 12 months for the life sciences and healthcare sector. With generalist investors moving out of the public markets in 2022 after the boom of 2020 and 2021, and not yet returning in numbers, this slowdown has depressed the IPO market and fed through down to private investment, making it hard and expensive to raise growth capital.
While there is a lot of dry powder in specialist life science investors, the uncertain markets and a refocusing to ongoing support of existing portfolio companies has meant the investment ‘healthcare winter’ has been one to weather. As funding has been harder to come by, companies throughout the healthcare innovation landscape across biotech, medtech and healthtech have been looking at partnering, licensing deals and M&A as alternative routes and strategies, and big pharma and medtech companies have been evermore on the hunt for win-win deals and partnerships.
The pace of innovation is not slowing, in fact it is only increasing, and no more so than in the Nordics, which have long been a hotbed of innovation.”
Healthcare is a robust and cyclical industry, and the shoots of recovery are certainly emerging. There are expectations from many of an upward trajectory through H2 2023 and onwards into 2024. The pace of innovation is not slowing, in fact it is only increasing, and no more so than in the Nordics, which have long been a hotbed of innovation.
From when we first launched the LSX Nordic Congress in 2018 to now, the difference in the funding landscape is stark. Only a few short years ago, the limited number of specialist investment funds for growth capital in the life science sector was clear, and was why we wanted to build the event in the first place. A small number of long term pillars of the Nordic private investment landscape, backed by the Nordic foundation model, had a huge weight on their shoulders to fund the best research and technology innovations. With our long term partners at Nasdaq, we wanted to leverage our international investor network and showcase all that Nordic life sciences had to offer.
There is a sense that now is the time to be prepared and build relationships for the future as we look to another ‘healthcare summer’.”
While that mission has not changed, what has changed is the number of Nordic funds that now exist and are supporting, funding and help grow a variety of companies across the healthcare ecosystem, and the success of the leading healthcare companies across the Nordics. So, while times may be tough now, as we look forward to our upcoming Nordic Congress we see a hugely positive change from six years ago, and big opportunity for Nordic life science as the winter thaws and capital begins flowing more freely soon. There is a sense that now is the time to be prepared and build relationships for the future as we look to another ‘healthcare summer’.
We’re delighted to be returning to Copenhagen in 2023 for the 6th LSX Nordic Congress on 10-11 October. We’ve been connecting life science and healthcare industry leaders with international investment and strategic partners to further the growth, development and internationalization of Nordic life science and healthcare innovation since 2018. Our mission is to facilitate ever greater international investment into the region, as well as to foster strategic partnerships and collaborations with key international healthcare stakeholders.
As the hub of Medicon Valley, the crucible of Scandinavian life sciences, we can’t wait to welcome 500+ local and international investors, big pharma and medtech executives, CEOs of healthcare innovators and key industry leaders to Copenhagen’s Bella Centre. With Biotech Leaders, Medtech Leaders and Healthtech Leaders conferences all under one roof, alongside company showcases, executive forums, expert 1:1 partnering and hours of informal networking, we look forward to showing the world the best of Nordic life science innovation. I hope you will choose to join us.
This article was originally written by Josh Dance, Managing Director, LSX, for NLS magazine No 03 2023, out September 2023