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Business

Investors avoiding Danish biotech market

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March 19th, 2014


This article is more than 10 years old.

Biotech companies complain of low stock revenue and little investor focus

Citing low stock revenue and little focus from analysts and investors, several listed biotech companies contend that Denmark is in danger of becoming a peripheral biotech market.

Over the last 18 months, no biotech companies have been listed in Denmark, compared to around 45 in the US.

Martin Bonde, the head of biotech advocate organisation Dansk Biotek, called the development worrying.

“It’s not easy to raise money in the US either, but clearly something needs to happen on the financing side of things if Denmark isn’t to become a peripheral arena within biotech,” Bonde told Børsen newspaper.

READ MORE: US Supreme Court rejects Novozymes appeal

Moving to the US
One of the issues with the Danish market is that Danes primarily tend to save via their homes and pensions, and the large Danish pension funds have poor experiences when investing in biotech firms.

“The Danish stock market is not big enough to support a spectrum of smaller, specialised investors,” Henrik Nøhr Poulsen, the investment head of the pension fund Industriens Pension, said.

“We have a few large institutional investors that invest broadly, but primarily in larger companies.”

One of the Danish biotech companies to successfully forgo the Danish market is Egalet, which left for the US in order to locate capital and a well-functioning market.

Just one year after being listed on the NASDAQ in New York, Egalet has increased its market value by over 50 percent to 1.5 billion kroner.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”