Nordic Life Science asked Casper Breum, Managing Partner, Sound Bioventures, about his predictions for 2024, including market trends, financing opportunities for SMEs and business strategy advice.

What do you predict will be the dominant market trend within life sciences this year?

“A continued and increased focus on cost and value for money in healthcare. The investment focus will be on assets closer to the market, and it will continue to be hard for the early projects. Some large pharma will consolidate further, while most of them will focus on assets that can easily fit into the current organization.”

When it comes to opportunities to find funding or financing, what’s your outlook?

“The earlier the company is in its development, the harder it will be. There should be significant amounts of capital available for the best late stage companies. Incremental improvements and new formulations of known drugs will struggle.”

What are some of your basic criteria to invest capital in a company? What factors will you consider especially important this year?

“It is always about the right technologies and the right team to plan and execute. For investors who focus on later-stage companies, it is nice to see that there is some traction for public listing of new biotech companies on Nasdaq, which adds one potential source of future financing. Given the current macro-uncertainties, a strong syndicate will be important.”

Given the current macro-uncertainties, a strong syndicate will be important.”

What strategies can Nordic life science SMEs use to keep the lights on until funding for the sector improves?

“Be as virtual a company as possible and focus only on the most value adding activities, i.e., things that will show potential investors or acquirers how the technology can make a difference.”

It is better to get a good dataset for the lead asset than it is to achieve minimal progress for several assets.”

“It is better to get a good dataset for the lead asset than it is to achieve minimal progress for several assets.”

What new life science technologies do you believe will gain ground during 2024?

“I think there will be even further focus on longevity (a long and healthy life), and the microbiome and how that is related to possible sustainable weight loss and neurodegenerative diseases.”

What impact will the ongoing wars and conflicts and current recessions have on life science investments in the Nordic region this year?

“It will continue to be difficult to raise capital unless you have a really interesting project.”

What do you predict when it comes to M&A activity in the Nordic life science industry this year?

“Pharma companies in general have capital for M&A. Most are inclined to go for smaller bolt-on acquisitions, which sits well with the Nordic company phenotype. If that translates to an increase in Nordic M&A depends entirely on emerging clinical data, or in some cases/indications on pre-clinical evidence provided by new approaches to known problems.”

Don’t waste capital on activities that are not providing value to the lead asset or assets.”

Anything you would like to add when it comes to predicting the Nordic life science financial landscape in 2024?

“Predictions are hard, so always have a plan for the worst scenario and don’t waste capital on activities that are not providing value to the lead asset or assets.”

Photo: Ola Torkelsson