Lundbeck Foundation strategy translates early-stage research into novel therapeutics
The Lundbeck Foundation does not merely wish to inject funds into biotech start-ups, it aspires to accompany them throughout the entire value chain and help them attract foreign capital.
Bringing Discoveries to Lives. This is the title of the Lundbeck Foundation’s 2030 strategy, and it is an accurate illustration of the Foundation’s high ambitions. Christian Elling, Managing Partner of Lundbeckfonden Emerge, explains that the strategy’s aim is to double the Foundation’s worth, for instance by investing in novel life science research.
‘Emerge is part of the Lundbeck Foundation and has an extremely exciting, dynamic portfolio of Danish biotech companies. Our strategy is to spot intriguing new research and entrepreneurs at a very early stage and to support them with advice and financial investment. We want to be a link in the value chain, all the way from promising research to viable therapeutics – from the very first phase of the research to establishment of a pharmaceutical company.’
1 million Danish kroner for Danish biotech companies
Christian Elling explains that a key pillar of the Foundation’s strategy basically involves boosting Danish life science and paving the way for more market-leading companies in Denmark. The Foundation awards grants worth more than DKK 500 million to Danish basic research every year, and continually invests in establishing new Danish biotech companies. As part of its 2030 strategy, the Foundation aims to invest up to DKK 1 billion in Danish biotech companies based on Danish research. There are numerous excellent examples of Lundbeckfonden Emerge’s participation in the establishment of Danish biotech companies on the basis of fledgling research. For example, the Foundation recently raised capital internationally to secure DKK 283 million of Series A financing for biotech company Cytoki Pharma. Part of the approach was to second staff to Cytoki in the lead-up to raising the capital, to support the founder and to raise the company’s profile.
From Novo Nordisk to the Lundbeck Foundation
Cytoki Pharma is an apt example of the Lundbeck Foundation’s working methods. In 2019, Rasmus Jørgensen was a research director at Danish pharmaceutical giant Novo Nordisk. At the time, he was researching a protein, but Novo Nordisk was not interested in following up on the research. Jørgensen went out on his own and founded Cytoki Pharma. The Lundbeck Foundation invested DKK 15 million to enable the company to begin developing and researching other applications for the protein to combat inflammatory bowel disease. It is important for Christian Elling to stress that the Lundbeck Foundation does not merely invest capital in a company but, to a great extent, provides companies with advice on how to grow.
‘We are more partners and co-shareholders in the company than merely investors. Talented researchers may be world-champions in their field but might not have a robust understanding of the capital market or applied research. This is where we can get involved, pressure test and give advice on how to translate the research into viable therapeutics,’ says Christian Elling, and he goes on to explain that having a renowned investor such as the Lundbeck Foundation on board can help attract foreign venture capital investors:
‘For instance, we tell foreign investors that if they put up DKK 50 million, we will do the same. This helps the company considerably in attracting capital and helps our portfolio grow – the overall result being more and bigger investments in Danish applied research.’
Advice to biotech start-ups: join forces with “clever money”
As proven by the figures for Cytoki Pharma, once the Lundbeck Foundation gets involved, things move fast. Cytoki has attracted investors from Spanish, French and Swiss venture funds. As Christian Elling explains, this specific example supports the overarching strategy:
‘The investments also help stimulate development throughout the entire Danish life science ecosystem. We’re evolving rapidly right now, and Denmark has the potential to assert itself as one of the leading biotech and life science nations in Europe. More and more foreign investors are discovering the region – including investors from the US. This is our tenth year, and we’re certainly moving in the right direction,’ Christian Elling concludes.
His advice to all new biotech entrepreneurs and researchers with an interesting idea is to join forces with investors who can help with more than just funding. Advice, networks and capital are vital for success.
