Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Shell Company Report | false | |
Entity File Number | 001-38178 | |
Entity Registrant Name | ZEALAND PHARMA A/S | |
Entity Incorporation, State or Country Code | G7 | |
Entity Address, Address Line One | Sydmarken 11 | |
Entity Address, Postal Zip Code | 2860 Søborg | |
Entity Address, City or Town | Copenhagen | |
Entity Address, Country | DK | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
ICFR Auditor Attestation Flag | false | |
Entity Emerging Growth Company | false | |
Document Accounting Standard | International Financial Reporting Standards | |
Entity Shell Company | false | |
Entity Central Index Key | 0001674988 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Auditor Name | EY Godkendt Revisionspartnerselskab | Deloitte |
Auditor Firm ID | 1757 | 1294 |
Auditor Location | Copenhagen, Denmark | Copenhagen, Denmark |
American Depositary Shares, each representing one ordinary share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | American Depositary Shares, each representing one ordinary share, DKK | |
Trading Symbol | ZEAL | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 519,232 | |
Ordinary shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1 nominal value per shareOrdinary shares, DKK | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 43,634,142 | |
Business Contact | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | Sydmarken 11 | |
Entity Address, Postal Zip Code | 2860 Søborg | |
Entity Address, City or Town | Copenhagen | |
Entity Address, Country | DK | |
Contact Personnel Name | Emmanuel Dulac | |
City Area Code | 45 | |
Local Phone Number | 88 77 36 00 | |
Contact Personnel Fax Number | +45 88 77 38 98 |
Consolidated income statement
Consolidated income statement - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated income statement | |||
Revenue | kr 292,567 | kr 353,314 | kr 41,333 |
Cost of goods sold | (107,844) | (90,565) | 0 |
Royalty expenses | (10,970) | 0 | (415) |
Gross margin | 173,753 | 262,749 | 40,918 |
Research and development expenses | (588,453) | (604,081) | (561,423) |
Sales and marketing expenses | (375,269) | (285,256) | 0 |
Administrative expenses | (260,987) | (202,770) | (67,881) |
Operating expenses | (1,224,709) | (1,092,107) | (629,304) |
Other operating income | 759 | 36,997 | 444 |
Other operating expense | (2,173) | 0 | 0 |
Operating result | (1,052,370) | (792,361) | (587,942) |
Financial income | 41,211 | 2,022 | 14,655 |
Financial expenses | (15,781) | (49,314) | (3,390) |
Result before tax | (1,026,940) | (839,653) | (576,677) |
Income tax (expense)/benefit | 8,791 | (7,076) | 5,136 |
Net result for the year | kr (1,018,149) | kr (846,729) | kr (571,541) |
Earnings/(loss) per share - basic (DKK) | kr (23.75) | kr (22.07) | kr (16.91) |
Earnings/(loss) per share - diluted (DKK) | kr (23.75) | kr (22.07) | kr (16.91) |
Net result attributable to shareholders of Zealand Pharma A/S | kr (1,018,149) | kr (846,729) | kr (571,541) |
Consolidated statements of comp
Consolidated statements of comprehensive income - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statements of comprehensive income | |||
Net result for the year | kr (1,018,149) | kr (846,729) | kr (571,541) |
Items that will be reclassified to income statement when certain conditions are met: | |||
Exchange differences on translation of foreign operations | 5,178 | 8,977 | 0 |
Comprehensive result for the year | (1,012,972) | (837,752) | (571,541) |
Total comprehensive income attributable to shareholders of Zealand Pharma A/S | kr (1,012,972) | kr (837,752) | kr (571,541) |
Consolidated statements of fina
Consolidated statements of financial position - DKK (kr) kr in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Intangible assets | kr 53,790 | kr 57,485 |
Property, plant and equipment | 86,454 | 85,040 |
Right-of-use assets | 134,994 | 127,998 |
Other Investments | 26,907 | 32,333 |
Deposits | 12,638 | 16,650 |
Corporate tax receivable | 1,268 | 1,268 |
Deferred tax assets | 13,525 | 8,370 |
Prepaid expenses | 16,457 | 13,117 |
Total non-current assets | 346,033 | 342,261 |
Current assets | ||
Inventories | 118,436 | 65,040 |
Trade receivables | 73,025 | 46,484 |
Prepaid expenses | 64,626 | 35,156 |
Corporate tax receivable | 21,562 | 5,500 |
Other receivables | 15,802 | 9,942 |
Marketable securities | 299,042 | 297,345 |
Cash and cash equivalents (incl cash subject to liquidity covernant) | 1,129,103 | 960,221 |
Total current assets | 1,721,596 | 1,419,688 |
Total assets | 2,067,629 | 1,761,949 |
Liabilities and equity | ||
Share capital | 43,634 | 39,800 |
Treasury shares | (71,890) | (1,700) |
Share premium | 4,250,306 | 3,472,487 |
Currency translation reserve | 14,155 | 8,977 |
Retained losses | (3,308,402) | (2,290,253) |
Shareholders' equity | 927,803 | 1,229,311 |
Borrowings | 647,906 | 0 |
Deferred revenue | 14,551 | 44,587 |
Other liabilities | 18,426 | 16,744 |
Lease liabilities | 124,626 | 116,047 |
Non-current liabilities | 805,509 | 177,378 |
Trade payables | 64,558 | 70,384 |
Corporate tax payables | 0 | 30,394 |
Lease liabilities | 14,897 | 14,072 |
Deferred revenue | 53,033 | 53,182 |
Rebate and product return liabilities | 28,695 | 36,673 |
Other liabilities | 173,134 | 150,555 |
Current liabilities | 334,317 | 355,260 |
Total liabilities | 1,139,826 | 532,638 |
Total shareholders' equity and liabilities | kr 2,067,629 | kr 1,761,949 |
Consolidated statements of cash
Consolidated statements of cash flows - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statements of cash flows | |||
Net result for the year | kr (1,018,149) | kr (846,729) | kr (571,541) |
Bargain purchase | 0 | (36,395) | 0 |
Adjustments for other non-cash items | 47,615 | 143,138 | 9,207 |
Change in working capital | (166,325) | 97,818 | 10,873 |
Interest received | 0 | 895 | 5,413 |
Interest paid | (3,296) | (4,562) | (3,390) |
Deferred revenue | (30,185) | (42,881) | 139,890 |
Income tax paid/received | (41,631) | 0 | 93 |
Cash flow from operating activities | (1,211,971) | (688,716) | (409,455) |
Acquisition of Valeritas business, net of cash acquired | 0 | (167,791) | 0 |
Change in deposits | 4,012 | (3,972) | (6,250) |
Purchase of other investments and marked securities | 0 | 0 | (22,803) |
Purchase of property, plant and equipment | (22,133) | (25,044) | (21,036) |
Purchase of intangible assets | 0 | 0 | (2,480) |
Sale of property, plant and equipment | 0 | 0 | 25 |
Dividends on securities | 0 | 0 | 878 |
Cash flow from investing activities | (18,121) | (196,807) | (51,666) |
Proceeds from issuance of shares related to exercise of share based compensation | 26,070 | 41,363 | 52,468 |
Proceeds from issuance of shares | 748,975 | 791,503 | 645,145 |
Purchase of treasury shares | (28,590) | 0 | 0 |
Proceeds from borrowings | 647,906 | 0 | 0 |
Costs related to issuance of shares | (46,895) | (42,706) | (14,444) |
Lease installments | (14,715) | (29,219) | (8,689) |
Cash flow from financing activities | 1,332,751 | 760,941 | 674,480 |
Decrease/increase in cash and cash equivalents | 102,659 | (124,582) | 213,359 |
Cash and cash equivalents at beginning of period | 960,221 | 1,081,060 | 860,635 |
Exchange rate adjustments | 66,223 | 3,743 | 7,066 |
Cash and cash equivalents at end of period | kr 1,129,103 | kr 960,221 | kr 1,081,060 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - DKK (kr) kr in Thousands | Share capital. | Treasury shares | Share premium | Translation reserve | Retained losses | Total |
Equity at beginning of year at Dec. 31, 2018 | kr 30,787 | kr (1,700) | kr 1,959,177 | kr 0 | kr (871,983) | kr 1,116,281 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
Net result for the year | 0 | 0 | 0 | 0 | (571,541) | (571,541) |
Share based compensation | 0 | 0 | 14,764 | 0 | 0 | 14,764 |
Capital increases | 5,268 | 0 | 692,345 | 0 | 0 | 697,613 |
Cost related to capital increases | 0 | 0 | (14,444) | 0 | 0 | (14,444) |
Equity at end of year at Dec. 31, 2019 | 36,055 | (1,700) | 2,651,842 | 0 | (1,443,524) | 1,242,673 |
Other comprehensive income | 0 | 0 | 0 | 8,977 | 0 | 8,977 |
Net result for the year | 0 | 0 | 0 | 0 | (846,729) | (846,729) |
Share based compensation | 0 | 0 | 30,485 | 0 | 0 | 30,485 |
Capital increases | 3,745 | 0 | 832,866 | 0 | 0 | 836,611 |
Cost related to capital increases | 0 | 0 | (42,706) | 0 | 0 | (42,706) |
Equity at end of year at Dec. 31, 2020 | 39,800 | (1,700) | 3,472,487 | 8,977 | (2,290,253) | 1,229,311 |
Other comprehensive income | 0 | 0 | 0 | 5,178 | 0 | 5,178 |
Net result for the year | 0 | 0 | 0 | 0 | (1,018,149) | (1,018,149) |
Treasury shares | 0 | (70,190) | 0 | 0 | 0 | (70,190) |
Share based compensation | 0 | 0 | 53,504 | 0 | 0 | 53,504 |
Capital increases | 3,834 | 0 | 771,211 | 0 | 0 | 775,045 |
Cost related to capital increases | 0 | 0 | (46,895) | 0 | 0 | (46,896) |
Equity at end of year at Dec. 31, 2021 | kr 43,634 | kr (71,890) | kr 4,250,307 | kr 14,155 | kr (3,308,402) | kr 927,803 |
Significant accounting policies
Significant accounting policies, and significant accounting estimates and assessments | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies, and significant accounting estimates and assessments | |
Significant accounting policies, and significant accounting estimates and assessments | Note 1 – Significant accounting policies, and significant accounting estimates and assessments Significant accounting policies Basis of preparation The consolidated financial statements of Zealand have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the EU and additional requirements under the Danish Financial Statements Act (class D). The Board of Directors considered and approved the 2021 Annual Report of Zealand on March 10, 2022. The Annual Report will be submitted to the shareholders of Zealand for approval at the Annual General Meeting on April 6, 2022. The consolidated financial statements are presented on a historical cost basis, except for certain financial assets and liabilities measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and on the significance of the inputs to the fair value measurement as a whole. The inputs are described as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date ● Level 2 inputs are inputs, other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly ● Level 3 inputs are fair value measures derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The consolidated financial statements are presented in Danish kroner (DKK), which is the functional cur-rency of the Parent Company. In the narrative sections of the financial statements, comparative figures for 2020 and 2019 are shown in brackets if not indicated otherwise. Implementation of new and revised standards and interpretations Management has assessed the impact of new or amended and revised accounting standards and inter-pretations (IFRSs) issued by the IASB and IFRSs endorsed by the EU effective on or after 1 January 2021. It is assessed that application of amendments effective from 1 January 2021 has not had a material impact on the consolidated financial statements for 2021. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these amendments. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Standards and interpretations issued, but not yet applied IASB has issued a number of new and amended standards which are not yet effective. None of these new standards or amendments are expected to impact the Group. Accounting policies The accounting policies are unchanged from last year. The accounting policies for specific line items and transactions are included in the respective notes to the financial statements except for basis and princi-ples of consolidation, foreign currency translation, classification of income statement, segment reporting, classification of financial assets and the cash flow statement, which are included below. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: ● has power over the investee; ● is exposed, or has rights, to variable returns from its involvement with the investee; and ● has the ability to use its power to affect its returns. The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Principles of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and the individual subsidiaries, which are based on uniform accounting policies and account-ing periods in all Group entities. Consolidation of Group entities is performed after elimination of all intra Group transactions, balances, income and expenses. Functional currency A functional currency is determined for each Group entity.The functional currency is the currency used in the primary financial environment in which the individual Group entity operates. Foreign currency translation Transactions denominated in currencies other than the transacting entity's functional currency are trans-lated at the exchange rates on the transaction dates. Exchange differences arising between the rate on the transaction date and the rate on the payment day are recognized in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the statement of financial position date are translated by applying the exchange rates at the statement of financial position date. Differences arising between the rate at the statement of financial position date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Recognition in the consolidated financial statements On preparation of the consolidated financial statements, the income statements of entities with a func-tional currency different from DKK are translated at the average exchange rate for the period, and balance sheet items are translated at the exchange rate ruling at the reporting date. Foreign exchange differences arising on translation of the equity of foreign entities and on translation of receivables considered part of net investment are recognized directly in other comprehensive income. Foreign exchange differences arising on the translation of income statements from the average exchange rate for the period to the exchange rate ruling at the reporting date are also recognized in other compre-hensive income. Adjustments are presented under a separate translation reserve in equity. Materiality in financial reporting In preparing the Annual Report, Management seeks to improve the information value of the consolidated financial statements, the notes to the statements and other measures disclosed by presenting the infor-mation in a way that supports the understanding of the Group’s performance in the reporting period. This objective is achieved by presenting fair transactional aggregation levels at line items and other financial information, emphasizing information that is considered of material importance to the user and making relevant rather than generic descriptions throughout the Annual Report. All disclosures are made in compliance with the International Financial Reporting Standards, the Danish Financial Statements Act and other relevant regulations, ensuring a true and fair view throughout the Annual Report. Consolidated financial statements Income statement The expenses recognized in the income statement is presented as an analysis using a classification based on their function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with line of business, product candidates or geographical markets. Consequently, there is no segment reporting concerning business areas. Statement of financial position Financial assets Financial assets include receivables, marketable securities and cash. Financial assets are divided into cate-gories of which the following are relevant for the Group: 1. Financial assets at amortized cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) 2. Financial assets at fair value through the income statement, which are marketable securities catego-rized as equity instruments are held for trading and classified at fair value through profit and loss. 3. Equity investments. These investments are measured at fair value through the profit and loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the profit and loss are initially recognized at fair value, plus transaction costs. Financial liabilities Financial liabilities include borrowings, trade payables and certain other payables. Financial liabilities are divided into categories of which the following are relevant for the Group: 1. Financial liabilities at amortised cost. Borrowings: On initial recognition, borrowings are evaluated for the existence of non-closely related embedded de- rivatives, i.e. cash flows or potential cash flows whose economic characteristics and risks are not closely related to the economic characteristics and risks in the debt host contract. The cash flows attributable to such non-closely related embedded derivatives are separated and accounted for as derivative financial instruments. On initial recognition borrowings are measured at fair value which is generally equal to the proceeds received. Fair value is allocated between the debt host contract and, if applicable, an embedded deriva- tive. Transaction costs attributable to the debt host contract are deducted from the initial fair value and amortised over the term of the loan as part of the effective interest rate on the loan. Transaction costs attributable to a non-closely related embedded derivatives are expensed on initial recognition. Loan commitments are not accounted for. Lender fees and transaction costs attributable to uncondi- tional loan commitments are treated as prepaid transaction costs if the Group expect to draw down on the facility. If the Group has no specific plans for draw down on the loan commitment, the transaction costs are amortised over the commitment period. If a loan commitment is subject to meeting certain conditions, it is considered an unconditional loan commitment if the Group considers it probable that the conditions will be met. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the net result for the year. The statement shows the cash flows broken down into operating, investing and financing ac-tivities, cash and cash equivalents at the beginning and end of the year, and the impact of the calculated cash flows on cash and cash equivalents. The cash flow statement cannot be derived directly from the balance sheet and income statement. Cash flows in foreign currencies are translated into Danish kroner at the exchange rate on the transaction date. Cash flow from operating activities Cash flow from operating activities is presented indirectly and is calculated as the net operating result adjusted for depreciation and amortization, sale of royalties, non-cash operating items, changes in net working capital, financial items paid, bargain purchase gain, and income tax benefits received and paid. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Cash flow from investing activities Cash flow from investing activities includes cash flows from the sale of future royalties and milestone relating to the Sanofi license, purchase and sale of property, plant and equipment, investments and de-posits, net cashflow from acquisition of Valeritas activities, as well as transfers to and from restricted cash related to the royalty bond. Cash flow from financing activities Cash flow from financing activities includes proceeds from issuance of new ordinary shares, proceeds from issuance of shares related to exercise of sharebased compensation. and related costs, finance lease installments, loan financing and purchase of treasury shares. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Cash and cash equivalents are instruments with original maturities of 90 days or less. The Company does not have any cash equivalents for the years ended December 31, 2021, 2020 or 2019. Information on COVID-19 Our business, operations and clinical studies were, of course, impacted by the effects of COVID-19. Although our clinical studies continued without interruption during 2021, there were delays and increased total costs arising from the implications of COVID-19. However, we have not recognized any write-offs, impairments of assets, or losses to onerous contracts due to COVID-19. The COVID-19 pandemic is also having an effect on other aspects of our business, including: our third-party manufacturers, and other third parties; albeit with no material effect or impact. The COV-ID-19 pandemic may, in the long-term, affect the productivity of our staff; our ability to attract, integrate, manage and retain qualified personnel or key employees; our global supply chains and relationships with vendors and other parties; significant disruption of global financial markets; and reduced ability to secure additional funding. We continuously monitor the COVID-19 pandemic and its potential impact on our business and financials. Significant accounting estimates and judgements The preparation of the consolidated financial statements requires Management to make judgments and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accom-panying disclosures. In applying our accounting policies, Management is required to make judgements and estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recog-nized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertain- ties that may result in deviations in actual results compared with estimates. Please refer to the table below to see in which note the accounting estimates and judgements are pre- sented. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Notes including management’s estimates and judgements Estimates Judgements 2 – Going concern uncertainties X 3 – Revenue X X 7 – Employee incentive programs X 27 – Rebate and product return liabilities X X Additional description of Management's estimates and judgements made are described below and in note 2. Revenue recognition (management estimate and judgement) Revenue comprises license payments, upfront- and milestone payments, product revenue and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. When entering into licensing and development agreements, a critical judgment relates to whether the custom-er could continue development of the Intellectual Property (IP) to the stage promised by Zealand under the promise to provide R&D services. If this is not the case, the IP and the R&D services are considered a single performance obligation. Milestone payments are related to the collaborative research agreements with commercial partners and are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services. Employee incentive programs (management estimates) In accordance with IFRS 2, Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement over the vesting pe- riod. The fair value of each warrant granted during the year is estimated using the Black– Scholes option pricing model. This requires the input of subjective assumptions such as: ● The expected stock price volatility, which is based on the historical volatility of Zealand’s share price ● The selection of the risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity equal to the expected term ● The duration of the warrants, which is assumed to be until the middle of the exercise period The total fair value of the warrants is recognized in the income statement over the vesting period. An adjustment is made to reflect an expected attrition rate during the vesting period. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. Rebate and product return liabilities (management estimate and judgement) Liabilities regarding sales rebates and discounts granted to government agencies, wholesalers, retail phar- macies, managed care and other customers are recorded at the time the related revenues are recorded or when the incentives are offered. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) For both managed care rebates and the Medicare part D rebates, the key assumptions relate to the rebate percentages by each pharmacy as determined in each pharmacy's contract with the Company and forecasted number of prescriptions that will be filled by each pharmacy (referred to as payor mix). For co-pay card redemptions, the key assumptions relate to expected settlement rate for sales units remain- ing in the channel that have yet to be presented under co-pay terms. These assumptions are made based on historical actuals, which are used to estimate forecasted trends, including payor mix and settlement rates, which are used to estimate the expected settlement of managed care rebates and Medicare part D rebates, and co-pay card redemption, and the specific terms in the individual agreements. Unsettled rebates are recognized as liabilities when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognized as accruals. Please refer to note 27 for further information on sales rebates and liabilities. iXBRL reporting Zealand Pharma is required to file its annual report in the European Single Electronic Format (‘ESEF’) and The Annual Report is therefore prepared in the XHTML format that can be displayed in a standard brows-er. The primary statements in the consolidated financial statements are tagged using inline eXtensible Business Reporting Language (iXBRL). The iXBRL tags comply with the ESEF taxonomy, which is included in the ESEF Regulation and developed based on the IFRS taxonomy published by the IFRS Foundation.Where a financial statement line item is not defined in the ESEF taxonomy, an extension to the taxono- my has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions which are subtotals. The Annual Report submitted to the Danish Financial Supervisory Authority consists of the XHTML document together with certain technical files, all included in a file named 549300ITB- B1ULBL4CZ12-2021-12-31-en.zip. |
Going Concern uncertainties
Going Concern uncertainties | 12 Months Ended |
Dec. 31, 2021 | |
Going Concern Uncertainties | |
Going Concern uncertainties | Note 2 – Going Concern uncertainties The Company monitors its funding position on a monthly basis to ensure that it has access to sufficient li- quidity to meet its forecasted cash requirements. Analyses are run to reflect different scenarios including, but not limited to, cash runway, human capital resources and pipeline priorities in order to identify liquid- ity risk and enable Management and the Board of Directors to prepare for new financing transaction and/ or take relevant expense management activities to allow the Company to continue as a going concern. As of the date of these financial statements the Company, with it's current strategic plans, anticipates that the current cash position and the cash requirements per the 2022 Annual Budget will provide a positive cash runway until April 2023 but will exceed the terms of liquidity covenant as part of the Oberland Note Purchase Agreement and hence, a working capital deficit in September 2022 without additional financing and/or cost reductions. While reviewing the Company's strategic plans and priorities, Management and the Board of Directors are working on extending the cash runway by means of new additional funding for the Company, either through issuance of shares, issuance of debt instruments, establishment of royalty arrangements, divestments, expense management activities or a combination of such, and on this basis believes it is probable that sufficient resources will be obtained in due time prior to the end of September 2022 to enable the Company to continue its activities as planned well into 2023. On this basis Manage- ment has prepared the financial statements based on a going concern assumption. Since such new source of funding is not obtained of the date of these financial statements, substantial doubt regarding going concern exist, and therefore the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue | Note 3 – Revenue Accounting policies Revenue comprises milestone payments, license payments and sale of goods. Milestone and license payments Milestone payments related to the collaborative research agreements with commercial partners are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. License payments which provide the buyer with the right to use the license as it exists at the date of trans-fer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as having a single performance obligation. Revenue from Alexion (license and collaboration agreement) Revenue is recognized based on the percentage of completion of the R&D services, which is estimated based on the expenses incurred during that period compared to planned service periods and budgetted costs. Zealand applies the output based method (budget cost) when determining the timing of satisfac-tion of performance obligations as the development services are performed by an indeterminate number of acts over the development timeline. Note 3 – Revenue (continued) Product sales Product sales represent net invoice value less estimated sales rebates and product returns, which are considered to be variable consideration and include significant estimates. Sales are recognised when the control of the goods has been transferred to a third party. This is usually when title passes to the customer, either on shipment or on receipt of goods by the customer, depending on local trading terms. In markets where returns are significant, estimates of returns are accounted for at the point revenue is recognised. Revenue is not recognised in full until it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. Recognized revenue can be specified as follows for all agreements and product sales: DKK thousand 2021 2020 2019 Boehringer Ingelheim International GmbH 22,311 149,120 0 Alexion Pharmaceuticals Inc. 30,185 42,881 38,021 Protagonist Therapeutics, Inc. 25,381 0 0 Sanofi-Aventis Deutschland GmbH 30,669 0 0 Undisclosed counterpart 0 0 3,312 Total license and milestone revenue 108,546 192,001 41,333 Gross product sales 354,599 303,658 0 Sales rebates -157,016 -133,924 0 Returns and sales reductions -13,562 -8,421 0 Total net product sales 184,021 161,313 0 Total revenue 292,567 353,314 41,333 Total revenue recognized over time 30,185 42,881 38,021 Total revenue recognized at a point in time 262,382 310,433 3,312 Revenue from Boehringer Ingelheim (BI) In 2021, we recognized DKK 22.3 million (2020: DKK 149.1 million) as income from milestone payments. Revenue from Alexion In 2021, we recognized DKK 30.2 million (2020: DKK 42.9 million and 2019: DKK 38.0 million) as income from the license, research and development agreement signed in March 2019 reflecting the progress on the lead project. Under the agreement DKK 67.6 million is accounted for as deferred revenue at Decem-ber 31, 2021. In 2019, DKK 0.6 million of other revenue is recognized related to other projects with Alexion. Revenue from Protagonist Therapeutics Inc. In 2021, we recognized DKK 25.4 million as a milestone payment (2020 and 2019: DKK 0.0 million). Revenue from other agreements In 2021 and 2020, we recognized zero revenue from other agreements. In 2019, we recognized DKK 3.3 million in revenue from a license option payment from an undisclosed counterpart relating to a Material Transfer Agreement. Note 3 – Revenue (continued) Revenue from Sanofi In 2021, we recognized DKK 30.7 million as a milestone payment. No revenue was recognized in 2020 or 2019. Revenue from product sales Revenue in 2021 of DKK 184.0 million from sale of goods comprise our current two products, V-Go and Zegalogue. In 2020, we recognized DKK 161.3 million as net sales from goods sold generated from our V-Go product. The rights to the V-Go product was acquired on April 2, 2020 as part of the business combination described in note 31. Thus revenue from sale of the V-Go product recognized in 2020 solely relates to the period April 2 - December 31. Information about Geographical Areas Net revenue in Germany comprises DKK 53.0 million (2020: DKK 149.1 million) in milestone revenue and net revenue in United States comprise DKK 239.6 million (2020: DKK 204.2 million) including license revenues and sale of goods. No other country accounts for more than 10% of the net total sales. In 2021 we had 3 significant customers with revenue from sale of goods. Customer A, amounted to DKK 67.2 million (2020: DKK 60.6 million), Customer B amounted to DKK 52.8 million (2020: DKK 48.4 million) and Customer C DKK 45.0 million (2020: DKK 37.7 million).Of the Company’s non-current assets, which comprise intangible assets, property, plant and equipment, right-of-use assets and prepayments, DKK 184.8 million is located in Denmark and DKK 106.9 million in United States. Accounting treatment for the Alexion Pharmaceuticals, Inc. Agreement In March 2019, Zealand entered into a license, research and development agreement with Alexion Phar-maceuticals, Inc. (Alexion) to develop novel therapies to treat complement mediated diseases. This agree-ment provided Zealand an immediate cash injection as well as further external validation of Zealand’s peptide platform. The collaboration with Alexion is not limited to the project C3 but offers the potential to work on identi-fication of peptide inhibitors to up to three additional components of the complement cascade. Zealand will have responsibility for the C3 project and other targets up to IND and Alexion will then progress the peptides into clinical development. Under the Alexion license, research and development agreement, Zealand has received an upfront non-refundable payment of USD 25 million for the C3 program and a concurrent USD 15 million equity investment in Zealand at a premium to the market price. The agreement also provides the potential for development-related milestones of up to USD 115 million, as well as up to USD 495 million in sales-re-lated milestones and high single- to low double-digit royalty payments. The 3 additional programs will provide further non-refundable upfront payments (USD 15 million each), development and sales mile-stone and royalties. The non-refundable up-front fee was allocated to the combined license, research and development ser- vices, and is being recognized as revenue along with provision of the research and development services under the lead program. Expenses to provide the services is being recognized when incurred. Further, the premium over the market share price on the Zealand shares subscribed by Alexion, DKK 12.7 million, is attributed to the Agreement as further consideration and consequently also recognized over the period over which the R&D services are provided. Alexion has paid USD 40 million, corresponding to DKK 262.9 million that as of December 31, 2019 has affected equity by DKK 85.6 million, deferred revenue by DKK 139.9 million, and revenue by DKK 37.4 million in 2019. Hence the cash flow from operating activities was DKK 177.3 million and the cash flow from financing activities was DKK 85.6 million. In 2021 revenue of DKK 30.2 million (2020: DKK 42.9 million and 2019: DKK 38.0 million) was recognized. Milestone payments, if any, will be recognized as revenue when the relevant milestones are achieved as they relate to performance obligations already satisfied at this stage. Royalty payments, if any, will be recognized along with the underlying sales. Note 3 – Revenue (continued) Significant judgement applied (performance obligations and revenue recognition) Determination of whether the license transferred and the research and development services constitute separate performance obligations, or form part a single performance obligation comprising a combined output has a significant impact on the accounting treatment. Zealand has applied significant judgment to determine whether the promised services are distinct and concluded that Alexion cannot benefit from the license alone. It is Zealand assessment that the R&D services under this agreement requires specif-ic Zealand know-how and expertise which cannot be easily identified or sourced externally. Therefore, Alexion would not in the absence of the contractual provisions have had the practical ability to engage a third-party R&D service provider to provide the agreed R&D services. Judgments and estimates in respect of output is made when entering the agreement and is based on research and development budgets and plans. The planned service periods (output) and budget costs for the respective research and development projects are assessed on an ongoing basis. If the expected service period is changed significantly, this will require a reassessment. All Zealand’s revenue-generating transactions have been subject to such evaluation by management. As the nature of the collaboration with Alexion may affect the accounting treatment of the agreement, Zealand has considered whether the agreement takes the form of a collaborative partnership with Alexion rather than a customer-vendor agreement. After consideration of all facts and circumstances, Zealand has assessed that the agreement takes the form of a customer-vendor relationship. Accordingly, the agreement is treated under the guidelines of IFRS 15 Revenue from Contracts with Customers. As any additional programs are optional and paid for separately, they are not considered part of the initial agreement. It has been considered whether the options for additional components represent a material right and, thus, a separate performance obligation under the initial agreement to which a portion of the initial upfront payment should be allocated. Zealand has determined that the probability of exercising the option is low and in combination with the fact that the development is significantly less advanced than the lead target, we have determined that the options do not represent a material right. Accounting treatment for revenue from product sales Revenue from sale of goods is recognized at a point in time when control of the goods is transferred to the customer and recorded net of adjustments for managed care rebates, wholesale distributions fees, cash discounts, prompt pay discounts, and co-pay card redemptions, all of which are established at the time of sale. In order to prepare the consolidated financial statements, the company is required to make estimates regarding the amounts earned or to be claimed on the related product sales, including the following: ● Managed care and Medicare rebates, which are based on the estimated end user pay or mix and related contractual rebates; ● Distribution fees, prompt pay discounts and other discounts, which are recorded based on specified payment terms, and which vary by customer and other incentive programs; and ● Co-pay card redemption charges which are based on the net transaction costs of prescriptions filled via a company-subsidized card program and other incentive programs. Zealand believes rebates and co-pay card redemptions related to sales in the U.S. are complex in nature and establishing appropriate provisions requires assessment of multiple factors as well as significant judgement and estimation by management as not all conditions are known at the time of sale. The Group has concluded that it is the principal in which revenue arrangements since it controls the goods before transferring them to the customer. Note 3 – Revenue (continued) We record allowances for product returns as a reduction of revenue at the time product sales are record- ed. Several factors are considered in determining whether an allowance for product returns is required, including the customers' return rights and our historical experience with returns and the amount of prod- uct sales in the distribution channel not consumed by patients and subject to return. Management replies on historical return rates to estimate returns. In the future, as any of these factors and/or the history of product returns change, adjustments to the allowance for product returns will be reflected. Accounting for the Sanofi License Agreement All future royalties and all but up to DKK 98.4 million (USD 15 million) of future milestone payments relat-ing to the Sanofi License Agreement were sold to Royalty Pharma in September 2018. In 2021, Zealand Pharma received a milestone of DKK 30.7 million (USD 5.0 million. None in 2020 or 2019), and as of December 31, 2021, there is one milestone that remains outstanding for DKK 65.6 million (USD 10 million). Outstainding as of December 31, 2020 and 2019 were DKK 98.4 million (USD 15 million) Accounting for the Boehringer Ingelheim License Agreements In 2011, Zealand entered into a license, research and development collaboration agreement with Boehringer Ingelheim International GmbH (BI) to advance novel GLP-1/glucagon dualacting peptide receptor agonists (GGDAs) for the treatment of patients with type 2 diabetes and obesity. Under the terms of the 2011 BI License Agreement, BI paid a fixed amount per full-time employee and other costs related to all research, development and commercialization in respect of the compounds covered by the agree-ment. Zealand is eligible to receive license and milestone payments of up to EUR 386 million, of which EUR 345 million was outstanding at December 31, 2021, related to the achievement of pre-specified development, regulatory and commercial milestones for the lead product. We are also eligible to receive tiered royalties ranging from high single-digit to low double-digit percentages on BI’s sales of all products stemming from this collaboration. In addition, we retain copromotion rights in Scandinavia. In 2014, Zealand entered into a second global license, research and development collaboration agree-ment with BI (the 2014 BI License Agreement). This agreement pertained to a collaboration on a specific therapeutic peptide project from our portfolio of preclinical programs for a period of up to four No product candidates out licensed to BI are currently marketed, and accordingly we have not received any royalty payments to date under our licensing agreements with BI. Milestone payments are recognized as revenue when the relevant milestones are achieved. |
Royalty expenses
Royalty expenses | 12 Months Ended |
Dec. 31, 2021 | |
Royalty expenses | |
Royalty expenses | Note 4 - Royalty expenses Accounting policies Royalty expenses comprise contractual amounts payable to third parties that are derived from milestone payments. Royalty expense is recognized in the income statement when the related payments and mile- stone events in the corresponding collaboration agreements materialize. We have agreed to pay some of our revenue in deferred payments or royalties to third parties. At the time of the dissolution of a former joint venture with Elan Corporation, plc (Elan) and certain of its subsidiaries that were party to the joint venture agreement with us, we agreed to pay royalties to Elan - now Alkermes plc, as successor in interest to a termination agreement between us and the Elan entities - including 13% of future payments we receive in respect of lixisenatide under the Sanofi License Agreement. Note 4 - Royalty expenses (continued) In addition, we have agreed to pay a royalty of 0.5% of the total amounts we receive in connection with our SIP-modified peptides, including lixisenatide, to one of the inventors of our SIP technology, who is one of our employees. The royalty to be paid to this inventor is calculated on the basis of all the amounts we receive, including license payments, milestone payments and sales. In 2021, 2020 and 2019, the royal- ty expenses relate to mentioned inventor. |
Research, development, sales, m
Research, development, sales, marketing and administrative expenses | 12 Months Ended |
Dec. 31, 2021 | |
Research, development, sales, marketing and administrative expenses | |
Research, development, sales, marketing and administrative expenses | Note 5 - Research, development, sales, marketing and administrative expenses Accounting policies Research expenses comprise salaries, share-based compensation, contributions to pension schemes and other expenses, including patent expenses, as well as depreciation and amortization directly attributable to the Group’s research activities. Research expenses are recognized in the income statement as incurred. Development expenses comprise salaries, share-based compensation, contributions to pension schemes and other expenses, including depreciation and amortization, directly attributable to the Group’s devel-opment activities. Development expenses are recognized in the income statement as incurred, except where the capitalization criteria are met. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associat-ed undertakings. Research and development expenses A development project involves a single product candidate undergoing a large number of tests to demonstrate its safety profile and its effect on human beings, prior to obtaining the necessary final approval for the product from the appropriate authorities. The future economic benefits associated with the individual development projects are dependent on obtaining such approval. Considering the signif-icant risk and duration of the development period for biological products, Management has concluded that whether the intangible asset will generate probable future economic benefits cannot be estimated with sufficient certainty until the project has been finalized and the necessary final regulatory approval of the product has been obtained. Accordingly, Zealand has not recognized such assets at this time, and all research and development expenses are therefore recognized in the income statement when incurred. Capitalization of development costs assumes that, in the Group’s opinion, the development of the technology or the product has been completed, all necessary regulatory and public registrations and marketing approvals have been received, and expenses can be reliably measured. Furthermore, it must be established that the technology or the product can be commercialized and that the future income from the product can cover not only the production, selling and administrative expenses but also development expenses. Zealand has not capitalized any development expenses in 2021, 2020 or 2019. DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -239,512 -204,210 -178,089 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -20,636 -17,417 -4,422 Other external research and development costs -328,305 -382,454 -378,912 Total research and development costs -588,453 -604,081 -561,423 Note 5 - Research, development, sales, marketing and administrative expenses (continued) Sale and Marketing expenses Sales and marketing expenses include expenses for sales personnel and expenses related to company premises in the US used for sales activities. Other significant expenses include product demonstration samples, trade show expenses, professional fees for our contracted customer support center and other consultants, insurance, facilities and information technology expenses. Overhead expenses have been allocated to sales and marketing expenses according to the number of employees in each department, based on the respective employees’ associated undertakings. DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -145,245 -130,568 0 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -92 -640 0 Other external sale and marketing costs -229,932 -154,048 0 Total Sale and Marketing expenses -375,269 -285,256 0 Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to compa-ny premises, depreciation on tangible assets and right-of-use assets, investor relations, etc. Overhead expenses have been allocated to research and development or administrative expenses according to the number of employees in each department, based on the respective employees’ associated undertakings. DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -127,630 -78,639 -40,141 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -4,390 -5,042 0 Other external administrative costs -128,967 -119,089 -27,740 Total Administrative expenses -260,987 -202,770 -67,881 |
Fees to auditors appointed at t
Fees to auditors appointed at the Annual General Meeting | 12 Months Ended |
Dec. 31, 2021 | |
Fees to auditors appointed at the Annual General Meeting | |
Fees to auditors appointed at the Annual General Meeting | Note 6 - Fees to auditors appointed at the Annual General Meeting DKK thousand 2021 2020 2019 Audit 7,879 5,941 1,847 Audit-related services and other assurance engagements 721 1,002 1,731 Other 0 0 12 Total fees 8,600 6,943 3,590 The fee for audit-related services and other assurance engagements and other services provided to the Group by EY Godkendt Revisionspartnerselskab in 2021 and 2020 consisted of Audit of Annual Report, Audit of 20-F SEC filing, including SOX 404b attestation procedures, quarterly reviews, other auditor’s reports on various statements for public authorities, and other accounting advisory services. (Deloitte Statsautoriseret Revisionspartnerselskab in 2019). |
Information on staff and remune
Information on staff and remuneration | 12 Months Ended |
Dec. 31, 2021 | |
Information on staff and remuneration | |
Information on staff and remuneration | Note 7 - Information on staff and remuneration Accounting policies The value of services received as consideration for granted warrants is measured at the fair value of the warrant. The fair value of equity settled share-based compensation is determined at the grant date and is recognized in the income statement as employee benefit expense over the period in which the warrants vest. The offsetting entry to this is recognized under equity. An estimate is made of the number of war- rants expected to vest. Subsequently, an adjustment is made for changes in the estimate of the number of warrants, which will vest, so the total expense is equal to fair value of the actual number of warrants which vest. The fair value of warrants granted is estimated using the Black–Scholes pricing model and Monte Carlo model in programs with value caps whereas the average share price prior to grant is used for RSU and PSUs. DKK thousand 2021 2020 2019 Total staff costs can be specified as follows: Wages and salaries 410,007 337,295 175,104 Share-based compensation 53,737 30,485 14,764 Pension schemes (defined contribution plans) 23,993 16,716 13,430 Other payroll and staff-related costs 54,541 37,241 14,932 Total staff costs 542,278 421,737 218,230 The amount is charged as: Research and development expenses 239,512 204,210 178,089 Sale and marketing expenses 145,245 130,568 0 Administrative expenses 127,630 78,639 40,141 Cost of goods sold 20,954 3,713 0 Inventory 8,937 4,607 0 Total staff costs 542,278 421,737 218,230 Average number of employees 346 297 173 Note 7 - Information on staff and remuneration (continued) 2021 2020 2019 Base Committee Total Base Committee Total Base Committee Total DKK thousand board fees fees fees board fees fees fees board fees fees fees Remuneration to the Board of Directors Martin Nicklasson 999 208 1,207 750 100 850 750 100 850 Kirsten Drejer 446 208 653 500 0 500 467 0 467 Alain Munoz 308 415 723 400 50 450 400 50 450 Michael Owen 308 415 723 400 50 450 400 50 450 Bernadette Mary Connaughton 308 346 653 400 33 433 267 0 267 Jeffrey Berkowitz 308 346 653 400 50 450 267 33 300 Leonard Kruimer Jens 308 553 861 400 150 550 267 100 367 Peter Stenvang 1 308 0 308 400 0 400 400 0 400 Gertrud Koefoed Rasmussen 1,2 67 0 67 267 0 267 0 0 0 Frederik Barfoed Beck 1 308 0 308 267 0 267 0 0 0 Iben Louise Gjelstrup 1 308 0 308 267 0 267 0 0 0 Hanne Heidenheim Bak² 0 0 0 133 0 133 400 0 400 Rosemary Crane 0 0 0 0 0 0 133 17 150 Catherine Moukheibir 0 0 0 0 0 0 133 50 183 Anneline Nansen 3 33 0 33 0 0 0 0 0 0 Total 4,009 2,491 6,497 4,584 433 5,017 3,884 400 4,284 1 Employee-elected board members; the table only includes remuneration for board work. 2 Hanne Heidenheim Bak resigned from the board in 2020 and Gertrud Koefod Rasmussen resigned from the Board in 2021. 3 Anneline Nansen joined the Board in 2021. Note 7 - Information on staff and remuneration (continued) The disclosed remuneration for board members excludes minor mandatory social security costs paid by the company. It also excludes reimbursed expenses incurred in connection with board meetings, such as travel and accomodation. Other Share based Pension short term compensation Severance DKK thousand Base salary Bonus contribution benefits expenses payments Total 2021 Remuneration to the Executive Management Emmanuel Dulac 1 5,099 3,059 1,020 243 12,182 0 21,603 Adam Sinding Steensberg² 3,056 1,193 611 286 4,829 0 9,975 Matthew Donald Dallas 3 2,878 1,182 37 48 4,086 0 8,232 Total 11,033 5,434 1,668 577 21,097 0 39,810 Total Other Corporate Management 5 9,022 3,429 497 564 8,319 2,772 24,602 Total 20,055 8,863 2,165 1,141 29,416 2,772 64,412 2020 Remuneration to the Executive Management Emmanuel Dulac 1 4,950 3,267 990 699 2,534 0 12,440 Adam Sinding Steensberg² 2,967 1,266 593 282 2,281 0 7,389 Matthew Donald Dallas 3 2,721 1,191 36 15 1,707 0 5,670 Total 10,638 5,724 1,619 996 6,522 0 25,499 Total Other Corporate Management 5 6,386 2,739 313 286 3,423 0 13,147 Total 17,024 8,463 1,932 1,282 9,945 0 38,646 2019 Remuneration to the Executive Management Emmanuel Dulac 1 3,100 9,072 620 855 832 0 14,479 Adam Sinding Steensberg² 2,807 1,032 505 269 2,304 0 6,917 Matthew Donald Dallas 3 588 534 0 5 82 0 1,209 Britt Meelby Jensen 1,745 419 175 60 0 0 2,399 Mats Blom 655 248 66 61 1,677 0 2,707 Total 8,895 11,305 1,366 1,250 4,895 0 27,711 Total other Corporate Management 5 6,559 2,580 389 46 1,972 0 11,546 Total 15,454 13,885 1,755 1,296 6,867 0 39,257 ¹ Emmanuel Dulac was appointed as CEO at April 25, 2019. ² Former Interim CEO Adam Sinding Steensberg was appointed EVP, R&D and CMO at April 25, 2019. ³ Matthew Donald Dallas was appointed CFO at October 10, 2019. ⁴ ⁵ Note 7 - Information on staff and remuneration (continued) In order to motivate and retain key employees, management and board of directors and encourage the Total share-based costs split on share-based type 2021 2020 2019 PSUs 14,765 900 500 RSUs 23,701 1,100 0 Warrants 15,271 28,485 14,264 Total 53,737 30,485 14,764 Total share-based costs split on cost type 2021 2020 2019 Cost of goods sold 521 0 0 Research and development expenses 22,158 14,005 12,191 Sale and Marketing expenses 2,259 6,045 0 Administrative expenses 27,972 10,435 2,573 Inventory 827 0 0 Total 53,737 30,485 14,764 PSU programs The number of performance share units granted in 2021 are 282,852 of which 185,162 were granted on May 12 and 97,090 on May 27. The value is determined based on the Company's share price on Nasdaq Copenhagen A/S on the day of the grant. The programs granted in 2021 are initially valued at DKK 51.7 million (2020: DKK 3.2 million). The PSU's vest linear or gradually over 3 years. Movement table of PSU granted shares below: No of PSUs 2021 2020 2019 Number of shares At January 1 19,765 19,765 0 Granted during the year 282,852 0 22,915 Vested during the year 0 0 0 Forfeited during the year -30,856 0 -3,150 At December 31 271,761 19,765 19,765 RSU programs The number of restricted share units granted in the period April 29 to December 7, 2021, totals 507,461. The value is determined based on the Company's share price on Nasdaq Copenhagen A/S on the day of the grant. The programs granted in 2021 are initially valued at DKK 92.2 million (2020: DKK 6.1 million). The RSU's vest linear or gradually over 3 years. Note 7 - Information on staff and remuneration (continued) Movement table of RSU granted shares below: No of RSUs 2021 2020 2019 Number of shares At January 1 27,466 0 0 Granted during the year 507,461 27,466 0 Vested during the year -163 0 0 Forfeited during the year -74,675 0 0 At December 31 460,089 27,466 0 Employee warrant programs Incentive programs have been offered in 2005, 2007 and in the 2009-2020 period. No new warrant pro- grams were issued in 2021. The employee incentive programs of Warrant programs existing during the period 2020 2015 Maximum years of options granted 10 years 5 years Method of settlement equity- settled equity- settled 2021 Outstanding at the beginning of the period 63,217 1,908,920 Granted during the period 0 0 Forfeited during the period 0 -214,348 Exercised during the period 0 -233,595 Expired during the period 0 -47,000 Outstanding at the end of the period 63,217 1,413,977 Exercisable at the end of the period 21,073 529,596 Warrants outstanding at the end of the period Range of exercise prices 216.8 90 - 224.4 Weighted-average remaining contractual life 8.7 3.8 Number held by Executive Management 0 353,409 Note 7 - Information on staff and remuneration (continued) The employee incentive programs of Warrant programs existing during the period 2020 2015 2010 Maximum years of options granted 10 years 10 years 5 years Method of settlement equity- settled equity- settled 2020 Outstanding at the beginning of the period 0 1,647,788 42,359 Granted during the period 63,217 631,288 0 Forfeited during the period 0 -53,747 0 Exercised during the period 0 -276,409 -42,359 Expired during the period 0 -40,000 0 Outstanding at the end of the period 63,217 1,908,920 0 Exercisable at the end of the period 0 301,529 0 Warrants outstanding at the end of the period Range of exercise prices 216.8 90.0 - 224.4 101.2 - 127.1 Weighted-average remaining contractual life 9.7 4.9 0 Number held by Executive Management 0 373,409 0 Warrants exercised during the period 2021 2020 Weighted-average share price at the date of exercise 186.1 234.7 Weighted-average exercise price for warrants expired during the period 142.5 101.2 Weighted-average exercise price for warrants forfeited during the period 206.2 169.2 Weighted-average exercise price for warrants outstanding at period end 159.6 158.5 Determination of fair value of the warrants granted during the period The exercise price is determined by the closing price of Zealand’s shares on Nasdaq Copenhagen on the day prior to the grant date. For warrants granted before April 19, 2018, the exercise price was determined by the closing price of Zealand’s shares on Nasdaq Copenhagen on the day prior to the grant date plus 10%. Warrants granted prior to April 15, 2020 expire automatically after five years. Warrants vest either after 3 years of service, with 1/ 36 3 3 3 Warrants may be exercised four times a year during a four-week period starting from the date of the pub- lication of Zealand’s Annual Report or interim reports. Dividend is not expected. For warrants granted before January 1, 2019, the volatility rate used is based on the 5-year historical vola-tility of the Zealand share price. For warrants granted after January 1, 2019, the volatility rate used is based on a historical volatility of the Zealand share price calculated as the vesting period of 3 years plus 50% of the exercise period (2020: 7 years, 2019: 2 years). The fair value of the warrants compensation granted in 2020 was determined using the Black-Scholes and Monte Carlo model using the following inputs as at day of grant and using average fair market value for RSUs and PSUs: Note 7 - Information on staff and remuneration (continued) Grant year 2021 2021 2020 2020 2019 2019 Type PSUs RSUs RSUs Warrants PSU Warrants Term 36 months 36 months 36 months Up to 78 months 36 months Up to 48 months Weighted average 216.8 127.0 share price (DKK) — — — to 224.4 — to 220.0 Share price at 185.9 131.2 216.8 — 138.6 — grant date (DKK) 191.6 207.6 224.4 Exercise price (DKK) 0 0 0 224.1 0 127.0 to 220.0 Volatility (%) N/A N/A N/A 44.68 N/A 41.9 to 46.45 to 43.5 Risk-free interest rate (%) N/A N/A N/A -0.31 N/A -0.45 to -0.41 to -0.63 - Exercise period to-from N/A N/A N/A Apr'21 N/A Jun'20 to Apr'30 to Dec'24 No granted 282,852 507,461 21,602 631,288 22,915 641,029 Cost price (DKK) 185.9 - 131.2 - 216.8 48.4 138.6 41.9 191.6 207.6 to 224.4 to 95.4 to 69.5 |
Other operating income and expe
Other operating income and expenses | 12 Months Ended |
Dec. 31, 2021 | |
Other operating income and expenses | |
Other operating items, net | Note 8 – Other operating income and expenses Accounting policies Other operating income and expenses comprises gains from sale of intangible assets, research funding from business partners and government grants and bargain purchase gain. Research funding is recognized in the period when the research activities have been performed and gov- ernment grants are recognized periodically when the work supported by the grant has been reported. Bargain purchase are recognized when the purchase price allocation is finalized.Government grants are recognized when a final and firm right to the grant has been obtained. Government grants are included in Other operating income, as the grants are considered to be cost refunds. DKK thousand 2021 2020 2019 Government grants 759 602 444 Gain from Bargain Purchase, cf. note 31 0 36,395 0 Total other operating income 759 36,997 444 Loss on retirement of fixed assets -2,173 0 0 Total other operating expenses -2,173 0 0 Zealand Pharma received government grants in the periods 2021, 2020 and 2019. A bargain purchase gain of DKK 36 million was recognized in 2020 as part of the acquistion explained in note 31 . |
Financial income
Financial income | 12 Months Ended |
Dec. 31, 2021 | |
Financial income | |
Financial income | Note 9 - Financial income Accounting policies Financial income includes interest from trade receivables, as well as realized and unrealized exchange rate adjustments, fair value adjustments of other investments and marketable securities and dividends from marketable securities. Interest income is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2021 2020 2019 Interest income from financial assets measured at amortized costs 44 895 5,413 Fair value adjustments of marketable securities, cf. note 22 1,852 0 837 Fair value adjustments of other investments, cf. note 16 0 936 2,009 Exchange rate adjustments (primarily on USD deposits) 39,315 0 5,518 Dividend, marketable securities 0 191 878 Total financial income 41,211 2,022 14,655 |
Financial expenses
Financial expenses | 12 Months Ended |
Dec. 31, 2021 | |
Financial expenses | |
Financial expenses | Note 10 - Financial expenses Accounting policies Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjust-ments, interest on lease obligations and fair value adjustments of securities. Interest expense is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2021 2020 2019 Interest expenses -4,091 -2,895 -3,205 Fair value adjustments of marketable securities, cf. note 22 0 -2,103 0 Fair value adjustments of other investments, cf. note 16 -8,217 0 0 Other financial expenses -3,473 -4,829 -185 Exchange rate adjustments (primarily on USD deposits) 0 -39,487 0 Total financial expenses -15,781 -49,314 -3,390 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2021 | |
Income tax | |
Income tax | Note 11 - Income tax Accounting policies Income tax on results for the year, which comprises current tax and changes in deferred tax, is recog-nized in the income statement, whereas the portion attributable to entries in equity is recognized directly in equity. Current tax liabilities and current tax receivables are recognized in the statement of financial position as tax calculated on the taxable income for the year adjusted for tax on previous years’ taxable income and taxes paid on account/prepaid. Deferred tax is measured according to the statement of financial position liability method in respect of temporary differences between the carrying amount and the tax base of assets and liabilities. Note 11 - Income tax (continued) Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recog-nized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidi-aries except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the ben-efits of the temporary differences and they are expected to be reversed in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and phar-maceutical industry is subject to considerable risks and uncertainties. Zealand Pharma Group has so far reported significant losses and, consequently, has unused tax losses. Management has concluded that deferred tax assets should not be recognized at December 31, 2021 (none recognized in 2020 or 2019),except for the US entities, which are profitable and therefore recog-nize deferred tax on the balance sheet. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is set-tled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the statement of financial position date. Deferred tax from business combinations is initially recognized at fair value. Income tax receivables are recognized in accordance with the Danish tax credit scheme ‘Skattekreditord- ningen’. Companies covered by the tax credit scheme may obtain payment of the tax base of losses origi-nating from research and development expenses of up to DKK 25 million (tax value of DKK 5.5 million). DKK thousand 2021 2020 2019 Net result for the year before tax -1,026,940 -839,653 -576,677 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) -225,927 184,724 126,869 Adjustment for foreign tax rates 461 -769 0 Adjustment for non-deductible expenses 888 1,927 -947 Adjustment for non-taxable income 0 -6,844 964 Adjustment for warrants 11,573 2,387 8,664 Adjustment for R&D extra deduction -14,379 -8,811 1,676 Adjustment to prior year -12,602 931 0 Change in tax assets (not recognized) 231,196 -180,621 -132,090 Total income tax expense/benefit -8,790 -7,076 5,136 Note 11 - Income tax (continued) The above specifications related to warrants have been gathered in one line in 2021 and therefore the comparative numbers have been adjusted accordingly. DKK thousand 2021 2020 2019 Specification of deferred tax assets: Tax losses carried forward (available indefinitely) 2,231,049 1,281,505 681,531 Research and development expenses 842,775 732,389 460,007 Intangible assets 51,154 40,373 35,849 Non-current assets 89,414 66,419 51,677 Liabilities 126,174 188,787 139,890 Other 55,075 58,483 70,306 Total temporary differences 3,395,641 2,365,956 1,439,260 Calculated potential deferred tax asset at local tax rate 749,198 514,239 316,637 Deferred tax asset not expected to be utilized -735,673 -505,869 -316,637 Recognized deferred tax asset 13,525 8,370 0 Under Danish tax legislation, Zealand is eligible to receive DKK 5.5 million in 2021 (DKK 5.5 million in 2020 and 2019) in tax return based on qualifying research and development expenses. |
Basic and diluted earnings per
Basic and diluted earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted earnings per share | |
Basic and diluted earnings per share | Note 12 - Basic and diluted earnings per share Accounting policies Basic result per share Basic result per share is calculated as the net result for the period that is allocated to the parent compa- ny's ordinary shares, divided by the weighted average number of ordinary shares outstanding deducted the treasury shares held by the company, cf. note 24. Diluted result per share Diluted result per share is calculated as the net result for the period that is allocated to the parent com- pany's ordinary shares, divided by the weighted average number of ordinary shares outstanding deducted the treasury shares, and adjusted by the dilutive effect of potential ordinary shares held by the company, cf. note 24. Note 12 - Basic and diluted earnings per share (continued) The result and weighted average number of ordinary shares used in the calculation of basic and diluted result per share, deducted treasury shares, are as follows: DKK thousand 2021 2020 2019 Net result for the year -1,018,149 -846,729 -571,541 Net result used in the calculation of basic and diluted earnings/losses per share -1,018,149 -846,729 -571,541 Weighted average number of ordinary shares 43,192,383 38,433,923 33,866,709 Weighted average number of treasury shares -322,988 -64,223 -64,223 Weighted average number of ordinary shares used in the calculation of basic earnings per share 42,869,395 38,369,700 33,802,486 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 42,869,395 38,369,700 33,802,486 Basic earnings/loss per share (DKK) -23.75 -22.07 -16.91 Diluted earnings/loss per share (DKK) -23.75 -22.07 -16.91 The following potential ordinary shares are anti-dilutive at December 31, 2021 (anti-dilutive at December 31, 2020 and dilutive December 31, 2019) and are therefore not included in the weighted average number of ordinary shares for the purpose of diluted earnings per share: DKK thousand 2021 2020 2019 Outstanding warrants under the 2010 employee incentive program 0 0 42,359 Outstanding warrants under the 2015 employee incentive programs 1,413,977 1,908,920 1,647,788 Outstanding Restricted Share Units (RSUs) under the LTIP programs 460,089 27,466 0 Outstanding Performance Share Units (PSUs) under the LTIP program 271,761 19,765 19,765 Outstanding warrants under the 2020 employee incentive program 63,217 63,217 0 Total outstanding warrants 2,209,044 2,019,368 1,709,912 - out of which these are dilutive 0 0 0 - out of which these are anti-dilutive 2,209,044 2,019,368 1,709,912 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Intangible assets | Note 13 – Intangible assets Accounting policies Separately acquired licenses, rights and patents are initially measured at cost. Licenses, rights and patents acquired in connection with the purchase of a legal entity where substantially all of the fair value of the gross assets acquired is concentrated in a single asset are considered an asset acquisition and initially recognized at cost at the acquisition date. The cost accumulation model has been applied for accounting for contingent considerations, whereby all further consideration is added when incurred, to the cost of the asset initially recorded. Note 13 – Intangible assets (continued) The acquired intangibles have a finite useful life and are subsequently carried at cost less accumulated amortizations using the straight-line method over the estimated useful life and impairment losses. The amortization periods are as follows: License, rights and patents: Amortization period will be determined once these IP rights are available for use Intellectual property: 10 years Physician relationship: 8 years Amortizations will recognized in the income statement as Research & Development expenses when the intangibles are available for use based on the determined useful life. Useful lifetime is assessed continu- ously for all new acquired assets. If circumstances or changes in Zealand's operations indicate that the carrying amount of the intangibles may not be recoverable, Management will review the intangibles for impairment. Refer to note 17. At December 31, 2021, licenses, rights and patents comprise a right that will be included in a future devel- opment project originating from the acquisition of Encycle Therapeutics in October 2019. The useful life will be determined when the intangible asset is in the location and condition necessary for it to be capa- ble of operating in the manner intended by management, which is when the amortizations will begin. The right has been measured based on the overall cost of the transaction less the fair value of the cash balance and trade payables also acquired. The fair value of the contingent considerations related to En- cycle Therapeutics was assessed to be zero as per the acquisition date due to Zealand applying the cost accumulation model for accounting for contingent considerations, whereby all further consideration is added when incurred, to the cost of the asset initially recorded. Note 13 – Intangible assets (continued) Physician relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 Licenses rights Intellectual Physician DKK thousand and patents property relationship Cost at January 1, 2021 2,530 13,692 60,576 Additions 0 0 0 Currency translation 0 0 5,037 Cost at December 31, 2021 2,530 13,692 65,613 Amortization at January 1, 2021 0 13,692 5,621 Amortization for the year 0 0 7,859 Currency translation 0 0 873 Amortization at December 31, 2021 0 13,692 14,353 Carrying amount at December 31, 2021 2,530 0 51,260 Amortization and impairment for the financial year has been charged as: Research and development expenses 0 0 0 Sale and marketing expenses 0 0 7,859 Administrative expenses 0 0 0 Total 0 0 7,859 Remaining amortization period - - 6.25 years Cost at January 1, 2020 2,480 0 0 Additions due to business combinations, cf. note 31 0 13,692 68,459 Additions 0 0 0 Currency translations 50 0 -7,883 Cost at December 31, 2020 2,530 13,692 60,576 Amortization and impairment at January 1, 2020 0 0 0 Amortization for the year 0 957 5,901 Impairment, cf. note 17 0 12,735 0 Currency translation 0 0 -280 Amortization and impairment at December 31, 2020 0 13,692 5,621 Carrying amount at December 31, 2020 2,530 0 54,955 Amortization for the financial year has been charged as: Sale and marketing expenses 0 13,692 5,901 Total 0 13,692 5,901 Remaining amortization period - - 7.25 years |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | |
Property, plant and equipment | Note 14 – Property, plant and equipment Accounting policies Plant and machinery, other fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation. Cost comprises acquisition price and costs directly related to acquisition until the time when the Group starts using the asset. Tangible assets under construction are recorded as work in progress until construction has been com-pleted and use of asset commenced. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight-line method over the expected useful lives of the assets. The depreciation periods are as follows: Buildings 5 - 13 years Plant and machinery 5 - 10 years Other fixtures and fittings, tools and equipment 3 – 5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses, Sale and marketing expenses and Administrative expenses. The fair value of property, plant and equipment is assessed equivalent to the carrying amounts. At the end of each reporting period, the Group reviews the carrying amount of property, plant and equip-ment as well as non-current asset investments to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). If it is not possible to estimate the re-coverable amount of an individual asset, the Group estimates the recoverable amount of the cash-gener-ating unit to which the asset belongs. If a reasonable and consistent basis of allocation can be identified, assets are also allocated to cash-generating units, or allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. The recoverable amount is the higher of fair value less costs of disposal and value in use. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Note 14 – Property, plant and equipment (continued) No impairments to property. plant and equipment have been recognized for 2021, 2020 or 2019 Plant and Other fixtures Building Assets under DKK thousand machinery and fittings improvements construction Cost at January 1, 2021 85,898 15,279 34,104 3,023 Transfer 949 664 0 -1,613 Additions 7,118 1,444 2,449 11,122 Retirements -3,169 -1,630 -84 -419 Currency translation 1 78 131 -1 Cost at December 31, 2021 90,797 15,835 36,600 12,112 Accumulated depreciation at January 1, 2021 43,987 6,942 2,335 0 Transfer 0 0 0 0 Depreciation for the year 11,558 3,461 3,128 0 Retirements -1,330 -1,203 -73 0 Currency translation 1 40 44 0 Accumulated depreciation at December 31, 2021 54,216 9,240 5,434 0 Carrying amount at December 31, 2021 36,581 6,595 31,166 12,112 Depreciation for the financial year has been charged as: Research and development expenses -7,151 -121 0 0 Sale and marketing expenses -3,621 -2,568 -2,715 0 Administrative expenses -786 -680 -413 0 Total -11,558 -3,461 -3,128 0 Cost at January 1, 2020 57,153 12,501 13,773 14,001 Transfer 0 0 13,796 -13,796 Addition from business combinations 33,875 2,572 1,707 2,984 Additions 8,479 1,566 14,889 109 Retirements -5,935 -985 -9,856 0 Currency translation -7,674 -375 -205 -275 Cost at December 31, 2020 85,898 15,279 34,104 3,023 Accumulated depreciation at January 1, 2020 43,696 4,164 9,860 0 Transfer 0 0 0 0 Depreciation for the year 4,974 2,301 2,301 0 Retirements -4,304 -985 -9,804 0 Currency translation -379 1,462 -22 0 Accumulated depreciation at December 31, 2020 43,987 6,942 2,335 0 Carrying amount at December 31, 2020 41,911 8,337 31,769 3,023 Depreciation for the financial year has been charged as: Research and development expenses -4,128 -1,378 -1,910 0 Sale and marketing expenses -846 -282 -391 0 Administrative expenses 0 -640 0 0 Total -4,974 -2,301 -2,301 0 |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use assets and lease liabilities | |
Right-of-use assets and lease liabilities | Note 15 – Right-of-use assets and lease liabilities Accounting policies Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components according to the specific pricing of the services in the agreements. Lease terms are negotiated on an individual basis and contain a wide range of different terms and condi-tions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments less any lease incentives receivable ● variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date Lease payments to be made under reasonably certain extension options are also included in the meas-urement of the liability. Short-term and low value leases are also recognized as right-of-use assets. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the Group's incremental borrow-ing rate is used, being the rate that the group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to the income statement over the lease period to ensure a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability ● any lease payments made at or before the commencement date less any lease incentives received ● any initial direct costs and restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Note 15 – Right-of-use assets and lease liabilities (continued) Amounts recognized in the statement of financial position The statement of financial position shows the following amounts relating to right-of-use assets: Other Fixtures DKK thousand Office Buildings and fittings As at January 1, 2021 126,821 1,177 Additions 18,677 1,512 Depreciation expense -13,177 -1,066 Currency translation 1,050 0 As at December 31, 2021 133,371 1,623 As at January 1, 2020 84,148 1,484 Additions due to business combination, cf. note 31 14,299 0 Additions 42,725 581 Retirements -6,035 -144 Reversal of depreciations 6,035 0 Depreciation expense -12,779 -744 Currency translation -1,572 0 As at December 31, 2020 126,821 1,177 The Group leases office buildings, equipment and vehicles. The rental contract for the HQ office building has been made for a minimum period of 13 years (terminable by the landlord after 15 years ). Management has assessed the lease period to be 13 years . The rental contract for the US office site has been made for a minimum period of 16 years . Equipment and vehicles are leased over a period of 3 - 4 years with no extension option. Variable lease payments are considered immaterial in 2021 and 2020. Note 15 – Right-of-use assets and lease liabilities (continued) Set out below are the carrying amounts of lease liabilities and the movements during the period: 2021 2020 As at January 1 130,119 85,760 Additions due to business combinations, cf. note 31 0 14,046 Additions 20,189 43,151 Accretion of interest 2,953 2,763 Payments -14,715 -14,098 Currency translation 977 -1,503 As at December 31 139,523 130,119 Current 14,897 14,072 Non-current 124,626 116,047 The following are the amounts recognized in income statement: Depreciation expense of right-of-use assets -14,243 -13,524 Interest expense on lease liabilities -2,953 -2,763 Total amount recognized in profit and loss -17,196 -16,287 Cashflow -14,715 -14,098 Total cash outflow for leases -14,715 -14,098 Depreciation for the financial year has been charged as: Research and development expenses -11,732 -10,001 Sale and marketing expenses 0 0 Administrative expenses -2,511 -3,523 Total -14,243 -13,524 |
Other investments
Other investments | 12 Months Ended |
Dec. 31, 2021 | |
Other investments | |
Other investments | Note 16 – Other investments Accounting policies Other investments are measured on initial recognition at cost, and subsequently at fair value. Changes in fair value are recognized in the income statement under financial items. The Group’s other investments consist of an investment in Beta Bionics, Inc., the developer of iLet™, a fully integrated dual-hormone pump (bionic pancreas) for autonomous diabetes care. The investment in Beta Bionics, Inc. is measured at fair value through profit and loss. This investment represents 1.6% (2020: 1.6%) ownership of Beta Bionics, Inc., and is measured at a fair value of DKK 26.9 million as of De- cember 31, 2021 (DKK 32.3 million as of December 31, 2020). In determining fair value, Zealand considered the impact of any recent share capital issuances by Beta Bi-onics as an indicator of the fair value of the shares. In particular, Beta Bionics undertook a capital offering in June 2019 and subsequent infliction points was used as the basis for determining fair value. Measure- ment is considered a level 3 measurement. Note 16 – Other investments (continued) The following have been recognized as financial items: DKK thousand 2021 2020 2019 Other investments at January 1 32,333 35,557 32,582 Fair value adjustments -8,217 69 2,193 Currency adjustments 2,791 -3,293 782 Other investments at December 31 26,907 32,333 35,557 |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2021 | |
Impairment | |
Impairment | Note 17 – Impairment Accounting policies Assets with indefinite useful lives are annually tested for impairment and whenever there is an impairment indication, whereas assets with finite useful lifetime are assessed for impairment indicators at the end of each reporting period. If such impairment indicators exists, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected costs to sell and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cash flows, discounted by using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or its cash-generating unit is lower than the carrying amount, an impairment charge is recognized in respect of the asset. The impairment loss is recognized in the income statement. In addition, for goodwill and other intangible assets with indefinite useful lives, impairment tests are performed at each balance sheet date, regardless of whether there are any indications of impair- ment. For acquisitions, the first impairment test is performed before the end of the year of acquisition. Key assumptions in the impairment test The impairment assessment for 2020 identified a need for impairment on the V-Go related Intellectual property of DKK 12.7 million. The impairment loss was primarily related to Management’s decision to allo- cate resources to support future product launches while limiting the investment in the V-Go product. Management has reassessed for 2021 whether indicators that the impairment loss recognized in 2020 may no longer exist or may have decreased. No such indicators were identified in 2021. Through the assessment of impairment indicators regarding the V-Go intellectual property, Management identified impairment indicators and an impairment test was performed by calculating recoverable amount of the V-Go intellectual property. The recoverable amount was determined based on a value in use calculation using cash flow and projections for subsequent years up to and including 2030, equivalent to the expected useful life of the intangible asset. The expected future net cash flows are determined based on budgets and business plans approved by Management Board. From 2031 onwards, a perpetual cash flow decreasing by the terminal growth rate of -50% is used. The pre-tax discount rate applied to the cash flow projections was 13 %. The analysis showed a need of an impairment of DKK 12.7 million regarding the V-Go Intellectual property. The amount is recognized as sales and marketing expenses in the income statement. Due to the full im- pairment of the V-Go related intellectual property in 2020, no additional sensitivity analysis is performed. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | Note 18 – Inventories Accounting policies Raw materials, work in progress and finished goods are measured at the lower of cost and net realizable value. Cost is determined on a first in, first out basis and comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to complete the sale. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalized but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognized in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. We review our inventory for excess or obsolescence and write down inventory that has no alterna- tive uses to its net realizable. Economic conditions, customer demand and changes in purchasing and distribution can affect the carrying value of inventory. As circumstances warrant, we record provisions for potentially obsolete or slow-moving inventory and lower of cost or net realizable value inventory adjustments. In some instances, these adjustments can have a material effect on the financial results of an annual or interim period. In order to determine such adjustments, we evaluate the age, inventory turns, future sales forecasts and the estimated fair value of inventory. DKK thousand 2021 2020 Raw materials 35,816 14,398 Work in process 29,588 13,723 Finished goods 53,032 36,919 Total 118,436 65,040 Direct costs 85,270 48,224 Indirect production costs 33,166 16,816 Write downs recognized on inventories were reflected in the cost of goods sold. They were comprised as follows: DKK thousand 2021 2020 Accumulated write downs, January 1 -6,948 0 Addition from business combination, cf. note 31 0 -11,294 Write downs in the reporting period -10,766 486 Utilization of write downs 12,641 3,860 Reversal of write downs 0 0 Exchange differences -119 0 Accumulated write downs, December 31 -5,192 -6,948 Cost of goods sold Cost of goods sold includes raw materials, labor costs, manufacturing overhead expenses and reserves for anticipated scrap and inventory obsolescence. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivables | |
Trade receivables | Note 19 - Trade receivables Accounting policies On initial recognition, receivables are measured at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amor- tized cost. Trade receivables are written down for expected credit losses. The Group applies the simplified approach in IFRS 9 to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables and contract assets. A write-down is recognized in sales and marketing expenses. There are no material overdue receivables and the write-down for expected credit losses is not material. At December 31, 2021 and 2020, Zealand had no trade receivables related to milestone payments. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid expenses | |
Prepaid expenses | Note 20 - Prepaid expenses Accounting policies Prepaid expenses comprise amounts paid in respect of goods or services to be received in subsequent financial periods. Clinical trials, which are outsourced to Clinical Research Organizations (“CROs”), take several years to complete. As such, Management is required to make estimates based on the progress and costs incurred to-date for the ongoing trials. Judgements are made in determining the amount of costs to be expensed during the period, or recognized as prepayments or accruals on the statement of financial position. Other receivables are measured at amortized cost less impairment. Prepayments include expenditures related to future financial periods and are measured at nominal value. The increase in Prepaid expenses of DKK 32.8 million from 2020 to 2021 is primarily related to higher insurance costs for coverage of Management and Board members and timing of invoices received from the Contract Research Organizations (CRO's). |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Other receivables. | |
Other receivables | Note 21 - Other receivables Accounting policies Other receivables are measured on initial recognition at cost and subsequently at amortized cost. DKK thousand 2021 2020 VAT 10,682 3,887 Other 5,120 6,055 Total other receivables 15,802 9,942 |
Marketable securities
Marketable securities | 12 Months Ended |
Dec. 31, 2021 | |
Marketable securities | |
Marketable securities | Note 22 - Marketable securities Accounting policies The Group’s Marketable securities portfolio comprises an equity investment in a bond portfolio. The investment is categorized as equity instruments classified at fair value through profit or loss. Refer to note 30, Financial risks. A net fair value adjustment of DKK 1.9 million from marketable securities have been recognized in finan- cial income in 2021 (2020: DKK -2.1 million in financial expenses, and 2019: DKK 0.8 million in financial income). |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents.. | |
Cash and cash equivalents | Note 23 - Cash and cash equivalents Accounting policies Cash is measured on initial recognition at cost. DKK thousand 2021 2020 DKK 11,336 286,222 USD 1,098,160 568,444 EUR 19,607 105,555 Total cash and cash equivalents 1,129,103 960,221 Cash includes proceeds from draw down on “Oberland”, USD 100 million. As discussed in note 25, the loan is subject to a liquidity covenant under which the Group must hold at least USD 100 million until cer-tain conditions are met. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2021 | |
Share capital | |
Share capital | Note 24 - Share capital Accounting policies Consideration paid for the acquisition of treasury shares transactions is recognized directly in equity with- in treasury shares reserve. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the original cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. No, of shares (thousand) 2021 2020 January 1 39,800 36,055 Increase due to issue of new shares 3,834 3,745 December 31 43,634 39,800 The share capital solely consists of one class of ordinary shares all issued of DKK 1 each and all shares rank equally. The shares are negotiable instruments with no restrictions on their transferability. All shares have been fully paid. At the annual general meeting on April 2, 2020 Zealand was authorized to increase the nominal share capital by nominally DKK 9,013,665 during the period until April 2, 2025. At December 31, 2021 nominally DKK 1,986,547 of the authorization remains. On February 1, 2021 a total of 3,600,841 new shares have been subscribed through a private and direct shares issue with a net proceeds of DKK 745.4 million. In the period 19 March, 2021 to 10 December, 2021, a total of 233.595 new shares have been issued due to exercise of warrant programs with a net proceeds of DKK 26.1 million. The expenses related to share issues amounts to DKK 46.9 million. On June 22, 2020 a total of 2,684,461 new shares have been subscribed through a private and direct shares issue with a net proceeds pf DKK 655.0 million. On March 26, a total of 741,816 new shares have been subscribed through a private share issue to US based investors with a net proceeds of DKK 136.5 million. The cost of share issues amounts to DKK 42.7 million. Expenses directly related to capital increases are recognized in equity. At December 31, 2021,there were 418,247 treasury shares (2020: 64,223), equivalent to 1.0% (2020: 0.2%)of the share capital and corresponding to a market value of DKK 60.7 million (2020: DKK 14.1 million). The treasury shares are allocated to performance shares units (PSUs) and restricted stock units (RSUs). Rules on changing the Articles of Association All resolutions put to the vote of shareholders at general meetings are subject to adoption by a simple majority of votes, unless the Danish Companies Act 'Selskabsloven' or our Articles of Association pre- scribe other requirements. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Borrowings | Note 25 – Borrowings Accounting policies For accounting policy we refer to note 1. On December 30, 2021, the Group entered into a loan agreement with Oberland. The agreement com- prises of three tranches of which the first tranche of USD 100 million was drawn down on December 31, 2021. Tranche 2 can be drawn down subject to obtaining FDA marketing approval for Glepaglutid where-as tranche 3 can be draw down only upon Oberland’s explicit acceptance. Loan terms Loan amount, tranche 1: 100 MUSD Loan amount, tranche 2: 50 MUSD to be drawn no later than December 31, 2023 Loan amount tranche 3: 50 MUSD to be drawn down no later than June 30, 2023 Maturity date: December 31, 2028 Repayment profile: Repayment at maturity: Base Interest: Higher of 12 months US Libor and 3 months Libor / [leverage formula] with a floor of 0.25% Credit spread: 6% p.a., fixed over the term of the contract Revenue participation payments: Draw down on tranche 1: 2.67% of consolidated revenue, not exceeding 75 MUSD and Draw down on tranche 1 & 2: 4% of consolidated revenue, not exceeding 75 MUSD Repayment amount at maturity: An amount resulting in an investor IRR of 9.75% p.a. including interest payments and royalty payments Lender option to require repayment of the debt: Change of control eventSale of certain assets – proceeds from sale to be used to repay the loan, however, no more than up to 75% of the out-standing amount Zealand option to prepay the debt: Throughout the term of the loan Early repayment amount: Before January 1, 2023: An amount equal to 120.0% of the principal amount of the Notes issued From January 1, 2023 until January 1,2024: An amount equal to 135.0% of the principal amount of the Notes issued From January 1, 2024 until January 1,2026: An amount equal to 150.0% of the principal amount of the Notes issued From January 1, 2026 until January 1,2027: An amount equal to the greater of 150.0% of the principal amount of the Notes issued and the amount (greater than zero) that would generate an internal rate of return to the Purchasers equal to 12.0% on the aggregate purchase price paid for the Notes From January 1, 2027 until December 31,2028: An amount equal to the greater of (i) 150.0% of the principal amount of the Notes issued and (ii) the amount (greater than zero) that would generate an internal rate of return to the Purchasers equal to 11.0% on the aggregate purchase price paid for the Notes Liquidity covenant The loan is subject to certain covenants including a requirement to retain cash balances in the amount of at least USD 100 million (DKK 656 million) until trailing 6 months total net revenue excluding sales from V-Go, Alexion Licensed Products and Sanofi Licensed Products exceeds USD 50 million. After deduction of transaction costs, DKK 8.2 million, the carrying amount is DKK 647.9 million. Note 25 – Borrowings (continued) Accounting Accessment Due to the fact that the lenders are entitled to a fixed return of 9.75% p.a., the debt host contract is con-sidered to be a fixed rate loan with variable cash flows. Management has assessed the contract for non closely related embedded derivatives and has concluded that the prepayment option is not closely related to the debt host contract due to the fact that the repay-ment amount could differ with more than an insignificant amount from the debts amortised cost. The revenue based payments are not separated from the debt host contract and assessed separately due to the fact that they will mainly affect the timing of the cash flows and not the total IRR. They could to a limited extent impact the prepayment premium. The interest rate clause comprises an element which could potentially result in leverage. The interest rate clauses are non-closely related and not separated as embedded derivatives due to the fact that they will mainly affect the timing of the cash flows and not the total IRR. Interest rate movements could to a limited extent impact the prepayment premium. Fair value measurement Due to the significant premium, the prepayment options will have value for Zealand only if Zealand’s credit quality increases significantly (refer to Note 2). The likelihood of instances which would entitle the lender to require repayment and which would have economic value to the lender is currently consid- ered very low. Based on the above, the fair value of the prepayment options on inception is considered insignificant. Fair value is determined primarily based on unobservable data (level 3). The most significant input is: 1. Development in future credit rating 2. US Libor forward interest rates As of the balance sheet date December 31, 2021, no reasonably possible alternative assumption regarding the development in these two inputs will lead to any significant fair value of the prepayment options. The credit spread in the loan corresponds to a rating of CCC. An increase of the Group’s credit quality to a rating between B and BB by the end of 2025 would establish an economic break-even point for exer- cise of the prepayment options. After 2025, the prepayment options would, in virtually all instances not become economically attractive to exercise. The assessment is based on the 31 December 2021 US Libor yield curve and observable credit spreads for traded debt instrument. The Group has up until now not held complex financial instruments measured at fair value and has currently no processes for determining fair value of such instruments. Therefore, third party valuation specialists have been engaged to determine fair value of the prepayment option as of 31 December 2021. Due to the fact that the loan agreement has been entered into in December 2021, fair value of the loan as of 31 December 2021 is considered to equal its nominal amount of USD 100 million equal to DKK 656 million. It is considered a level 2 measurement (recent transation). Collateral provided The Group has provided floating charge collateral with all assets which can be collaterised including shares in subsidiaries. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenue | |
Deferred revenue | Note 26 – Deferred revenue Accounting policies We refer to accounting policy description in Note 3 Revenue. The Group has recognized the following liabilities related to contracts with customers. DKK thousand 2021 2020 Deferred revenues at January 1 Customer 97,769 139,890 Customer payment received, cf. note 3.Revenue 0 0 recognized during the year -30,185 -42,881 Total deferred revenue 67,584 97,769 Non-current deferred revenue 14,551 44,587 Current deferred revenue 53,033 53,182 Total deferred revenue 67,584 97,769 Deferred revenue occurred in connection with the agreement with Alexion Pharmaceuticals, Inc. as dis- closed in Note 3. An up-front payment of DKK 177.3 million was received of which DKK 30.2 million has been recognized during DKK 2021 (2020: DKK 42.9 million and 2019: DKK 37.4 million) Management expects that approx. DKK 53 million of the up-front payment received will be recognized as revenue during 2022. The remaining payment is expected to be recognized during 2023 according to the progress of the development project. |
Rebate and product return liabi
Rebate and product return liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Rebate and product return liabilities | |
Rebate and product return liabilities | Note 27 – Rebate and product return liabilities Accounting policies Product sale rebate liabilities and product return liabilities are amounts payable or credited to a customer,usually based on the quantity or value of product sales to the customer for specific products in a certain period. Product sales rebates, which relate to product sales that occur over a period of time, are normally issued retrospectively. At the time product sales are invoiced, rebates and deductions that the Group ex- pects to pay, are estimated. These rebates typically arise from sales contracts with government agencies, wholesalers, retail pharmacies, Managed Care and other customers, which are recorded at the time the related revenues are recorded or when the incentives are offered, cf. note 3. Sale Provision rebates return 2021 2020 DKK thousand liabilities liabilities total total Provision at the beginning of the year 36,434 239 36,673 0 Addition due to acquisition, cf. note 31 0 0 0 6,969 Additions for the year 155,910 2,124 158,033 137,321 Utilization during the period -167,045 1,555 -168,600 -103,766 Reversal of accruals from from previous years 0 0 0 -1,184 Currency translation adjustments 2,544 45 2,589 -2,668 End of the year 27,843 852 28,695 36,673 Sale rebate liabilities are calculated based on historical experience and the specific terms in the individual agreements. Unsettled rebates are recognized as accruals when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognized as other liabilities. Note 27 – Rebate and product return liabilities (continued) Please refer to note 1 and note 3 for further information on sale rebates related liabilities and manage- ments estimates and judgements. Zealand Pharma issues credit notes for expired goods as a part of normal business. Where there is histor- ical experience or a reasonably accurate estimate of expected future returns can otherwise be made, an accrual for estimated product returns is recorded. The accrual is measured at gross sales value. |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other liabilities.. | |
Other liabilities | Note 28 - Other liabilities Accounting policies Financial liabilities are recognized initially at fair value less transaction costs. In subsequent periods, finan- cial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method. DKK thousand 2021 2020 Employee benefits 84,800 101,028 Royalty payable to third party 5,860 5,732 Development project costs 18,736 28,267 Other payables 82,164 32,272 Total other liabilities 191,560 167,299 Current 173,134 150,555 Non-current 18,426 16,744 |
Contingent assets and liabiliti
Contingent assets and liabilities, other contractual obligations and collateral provided | 12 Months Ended |
Dec. 31, 2021 | |
Contingent assets and liabilities, other contractual obligations and collateral provided | |
Contingent assets and liabilities, other contractual obligations and collateral provided | Note 29 - Contingent assets and liabilities, other contractual obligations and collateral provided Accounting policies Contingent assets and liabilities are disclosed, unless the possibility of an inflow or outflow of resources embodying economic benefits is virtually certain. Contingent assets include potential future milestone payments. Contingent liabilities and other contrac-tual obligations include contractual obligations related to agreements in development projects such as contract research organizations (CROs), milestone payments and lease commitments. Contingent Assets At December 31, 2021, Zealand is still eligible for a payment from Sanofi of up to USD 10.0 million, of which USD 10.0 million is expected in 2022. However, it is Management’s opinion that the amount of any payment cannot be determined on a sufficiently reliable basis, and therefore have not recognized an asset in the statement of financial position of the Group. Contingent liabilities and Contractual obligations At December 31, 2021, total contractual obligations related to agreements for development projects, including CROs, amounted to DKK 317.4 million (DKK 184.4 million for 2022 and DKK 133.0 million for the years 2023 up to and including 2025). Zealand may be required to pay future development, regulatory and commercial milestones related to the acquisition of Encycle Therapeutics. Refer to note 13. Collateral provided The Group has provided floating charge collateral with all assets which can be collaterised including shares in subsidiaries. |
Financial risks
Financial risks | 12 Months Ended |
Dec. 31, 2021 | |
Financial risks | |
Financial risks | Note 30 - Financial risks Zealand is exposed to various financial risks, including foreign exchange rate risk, interest rate risk, credit risk and liquidity risk. The objective of Zealand’s financial management policy is to reduce the Group’s sensitivity to fluctuations in exchange rates, interest rates, credit rating and liquidity. Zealand’s financial management policy has been endorsed by Zealand’s Audit Committee and ultimately approved by Zealand’s Board of Directors. Capital structure Zealand aims to have an adequate capital structure in relation to the underlying operating results and research and development projects, so that it is always possible to provide sufficient capital to support operations and long-term growth targets. We refer to Note 2. Exchange rate risk Most of Zealand’s financial transactions are in DKK, USD and EUR. Due to Denmark’s long-standing fixed exchange rate policy vis-à-vis the EUR, Zealand has evaluated that there is no material transaction exposure or exchange rate risk regarding transactions in EUR. Zealand’s milestone payments have been agreed in foreign currencies, namely USD and EUR. However, as milestone payments are unpredictable in terms of timing, the payments are not included in the basic exchange rate risk evaluation. Currency exposures regarding our US activities are managed by having revenue and expenses in the same currency. As Zealand conducts clinical trials and toxicology studies around the world, Zealand will be exposed to exchange rate risks associated with the denominated currency, which is primarily USD based on volume and fluctuations against DKK. To date, Zealand’s policy has been to manage the transaction and transla-tion risk associated with the USD passively, placing the revenue received from milestone payments in USD in a USD account for future payment of Zealand’s expenses denominated in USD, covering payments for the next 12-24 months and thus matching Zealand’s assets with its liabilities. As of December 31, 2021, Zealand holds DKK 862.9 million (2020: DKK 568.4 million) of its cash in USD. Additionally, Zealand has a financial debt of DKK 656.1 million denominated in USD. Interest rate risk Zealand has a policy of avoiding financial instruments that expose the Group to any unintended financial risks. During 2021, all cash has been held in current bank accounts in USD, EUR and DKK. Interest rates on bank deposits in DKK and EUR have been negative since 2018, while USD accounts have generated a low level of interest income. During 2021 and 2020, Zealand has invested in low-risk marketable securities. The Group’s marketable securities portfolio comprises bonds in Danish kroner. The average weighted duration of the bond portfo- lio on the statement of financial position date was 3 years in both years. Note 30 - Financial risks (continued) As of December 31, 2021, Zealand has borrowings amounting to DKK 656.1 million (2020: DKK 0 million)and Lease liabilities amounting to DKK 139.5 million (2020: DKK 130.1 million). As discussed in note 25 borrowings bears a fixed interest rate. Credit risk Zealand is exposed to credit risk in respect of receivables, bank balances and bonds. The maximum credit risk corresponds to the carrying amount. Management believes that credit risk is limited, as the counter-parties to the trade receivables are large global pharmaceutical companies and wholesalers. Cash and bonds are not deemed to be subject to credit risk, as the counterparties are banks with invest-ment-grade ratings (i.e. BBB- or higher from Standard & Poor’s). Liquidity risk The purpose of Zealand’s cash management is to ensure that the Group has sufficient and flexible finan-cial resources at its disposal at all times. Refer to Note 2. Zealand’s short-term liquidity is managed and monitored by means of the Company’s quarterly budget revisions to balance the demand for liquidity and maximize the Company’s interest income by matching its free cash in fixed-rate, fixed-term bank deposits and bonds with its expected future cash burn. Sensitivity analysis The table shows the effect on profit/loss and equity of reasonably likely changes in the financial variables in the statement of financial position. 2021 2020 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 20,675 +/-10% 58,124 The decline in currency exposure is primarily related to reduced net cash balance from borrowings de- nominated in USD. Contractual maturity (liquidity risk) A breakdown of the Group’s aggregate liquidity risk on financial assets and liabilities is given below. The following table details the Group’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The table has been prepared using the undiscounted cash flows for financial liabilities, based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that the specific timing of interest or principal flows is dependent on future events, the table has been prepared based on Management’s best estimate of such timing at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay. Note 30 - Financial risks (continued) With the exception of leasing and borrowings, there are no interest cash-flows to be included in the table below for the existing financial liabilities as they are not interest-bearing financial liabilities. DKK thousand <12 months 1-5 Years >5 Years Total Borrowings 50,954 252,042 736,410 1,039,406 Trade payables 64,558 0 0 64,558 Leasing 14,608 62,558 75,415 152,581 Other liabilities 173,134 0 18,426 191,560 Total financial liabilities at December 31, 2021 303,254 314,600 830,251 1,448,105 Trade payables 71,442 0 0 71,442 Leasing 14,072 53,039 76,354 146,465 Other liabilities 150,555 16,744 0 167,299 Total financial liabilities at December 31, 2020 236,069 69,783 76,354 382,209 All cash flows are non-discounted and include all liabilities under contracts but not contractual obliga- tions related to payments under agreements for development projects, including CROs, as disclosed in note 29, as their maturity dates are uncertain. The expected future cash flows from borrowing repayments in USD are estimated based on USD Forward Libor rates as of 31 December 2021 and the Group’s revenue forecast and translated into DKK at the USD/DKK forward rates applicable as of 31 December 2021. DKK thousand 2021 2020 Categories of financial instruments Deposits 12,638 16,650 Trade receivables 73,025 46,484 Other receivables 15,802 9,942 Cash and cash equivalents 1,129,103 960,221 Financial assets at amortized costs 1,230,568 1,033,297 Marketable securities 299,042 297,345 Other investments 26,907 32,333 Financial assets measured at fair value through profit or loss 325,949 329,678 Borrowings 647,906 0 Lease liabilities 139,523 130,119 Trade payables 64,558 70,384 Other liabilities 191,560 167,299 Financial liabilities measured at amortized cost 1,043,547 367,802 The fair value of marketable securities is based on Level 1 in the fair value hierarchy. The fair value of other investments is based on level 3 in the fair value hierarchy. Refer to note 16. There were no transfers between levels 1,2 and 3 for recurring fair value measurement during the period ended December 31, 2021 or 2020. The carrying amount of financial assets and financial liabilities approximated the fair value. Note 30 - Financial risks (continued) Capital Management Zealand’s goal is to maintain a strong capital base to maintain investor, creditor and market confidence, and a continuous advancement of Zealand’s product pipeline and business in general. Zealand is primarily financed through capital increases,long-term borrowings and partnership collaboration income. The Group had, as of December 31, 2021, a cash position of DKK 1,129 The cash position supports the advancement of our product pipeline and operations and the objective is to maintain a cash position which secures financing of development costs over the next 12 to 15 months,refer to Note 2. The adequacy of our available funds will depend on many factors, including progress in our research and development programs, the magnitude of those programs, our commitments to existing and new clinical collaborators, our ability to establish commercial and licensing arrangements, our capital expenditures, market developments, and any future acquisitions. Accordingly, we may require additional funds and may attempt to raise additional funds through equity or debt financings, collabora- tive agreements with partners, or from other sources. To strengthen the cash position, the Group entered into a USD 100 million Loan agreement with Oberland in December 2021. Under the loan agreement, the Group has to maintain a cash position of at least USD 100 million (DKK 656 million) until trailing 6 months net sales excluding sales from V-Go, Alexion Licensed Products and Sanofi Licensed Products exceeds USD 50 million. Refer to note 25 for discussion of the terms of the loan. The Board of Directors monitors the share and capital structure to ensure that Zealand’s capital resources support the strategic goals. There was no change in the group’s approach to capital management pro- cedures in 2021 besides the issuance of borrowings as described in Note 25. Neither Zealand Pharma A/S nor any of its subsidiaries are subject to externally imposed capital requirements other than the liquidity covenant related to the borrowing agreement. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business combinations | |
Business combinations | Note 31 – Business combinations Accounting policy Business combinations are accounted for using the acquisition method of accounting. At the date of the acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The consideration transferred is measured at fair value at the date of acquisition and the excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill. In circumstances where the consideration transferred is less than the fair value of net iden-tifiable assets of the business acquired, the difference is recognized directly in the consolidated income statement as a bargain purchase. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive loss as an administrative expense. Business combinations require management making an assessment of the fair value of the net assets ac-quired as well as an assessment regarding whether control exists. Management judgement is particularly involved in the recognition and measurement of the following items at fair value: ● intellectual property: this may include patents, licenses, trademarks and similar rights for currently mar-keted products, and also the rights and scientific knowledge associated with projects that are currently in research or development phases, and requires the projection of estimated future cash inflows and outflows and relevant risks, the terminal value of these assets, discount rates and weighted average costs of capital, Note 31 – Business combinations (continued) ● working capital items such as trade receivables, inventory (raw materials, work in process, parts and finished goods), prepaid expenses, trade payables, and fixed assets ● Guarantees, warranties, indemnities, rights, claims, counterclaims etc. set off against third parties relating to the acquired assets or assumed liabilities, including rights under vendors' and manufacturers' warranties, indemnities, guaranties and avoidance claims and causes of action under any applicable Law, employee liabilities and other contingencies In all cases, management makes an assessment based on the underlying economic substance of the items concerned, and not only on the contractual terms, in order to fairly present these items. In making these assessments, management relies to a significant extent on the work of valuation experts. However, the assessments are highly subjective and sensitive to the assumptions used. In accordance with IFRS 3, if a business combination indicates a bargain gain all applied assumptions will be reassessed by Management before recognition. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive loss. Customer relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 Acquisition of medical technology business from Valeritas, Inc. On April 2, 2020 (or “the acquisition date”) Zealand acquired substantially all of the medical technology business from Valeritas Holdings, Inc. (or “Valeritas”) pursuant to the terms of the stalking horse asset purchase agreement previously entered into with Valeritas and following approval by the U.S. Bankruptcy Court for the District of Delaware on March 20, 2020. Valeritas was a U.S. based commercial-stage company whose activities comprised development, pro-duction and sale of wearable disposable insulin pumps and has therefore been acquired to accelerate Zealand’s plans for establishing U.S. operations to support the anticipated launch of the auto-injector and pre-filled syringe for severe hypoglycemia. The acquisition comprises all medical technology business related tangible and intangible assets that pursuant to the Bankruptcy Code was transferred to Zealand free and clear of all claims, liabilities and en-cumbrances including the Valeritas workforce. Additionally, the acquisition includes most of the working capital assets and selected liabilities. Under IFRS 3, Business Combinations, the acquisition has been accounted for as a business combination using the acquisition method. The consolidated financial statements include the results of Valeritas for the from the acquisition date. Note 31 – Business combinations (continued) The consideration transferred was DKK 167.7 million (USD 24.5 million), and the fair values of the identifia- ble assets and liabilities of Valeritas as at the date of acquisition were: Fair value recognized on DKK thousand acquisition Assets Physician Relationship 68,459 V-Go IP 13,692 Property, plant and equipment 41,138 Right-of-use assets 14,299 Inventories 55,796 Trade receivables 50,603 Other assets 10,132 Cash and cash equivalents 66 Liabilities Deferred tax liability -11,880 Trade payables -4,050 Lease liabilities -14,046 Other liabilities -19,792 Total identifiable net assets at fair value 204,417 Bargain purchase recognized -36,692 Purchase consideration transferred 167,725 Analysis of cash flows on acquisition: Net cash acquired (included in cash flows from investing activities) 66 Cash paid -167,725 Net cash flow on acquisition -167,659 The fair value attributable to intangible assets (DKK 82.2 million as of the acquisition date) consists of the value arising from the existing Valeritas physician network and relationships, valued at DKK 68.5 million which is based on the estimated cost it would require to establish similar network and relationships, or a so-called with/without valuation method, and intellectual property related to the V-Go technology, valued at DKK 13.7 million using an excess earnings model. (Subsequently impaired. Refer to note 17) The valuations are determined using cash flow projections from financial budget approved by Corporate Management covering a 10 - - The calculation of the fair value of intangible assets is most sensitive to the revenue and gross margin growths.Revenue and gross margin: Revenue and gross margin are based on historical trends. The reve-nue growth applied in the calculation is between 1-20% in the 10-year budget period with the first years having the highest revenue growth in percentage.Operating costs: Operating costs are based on histori-cal trends and industry knowledge. Operating costs over the 10-year budget period has been adjusted to incorporate the allocation related to shared efforts of future product launches. Trade receivables have been measured at the contractual amount expected to be received which ap-proximates the fair value of DKK 50.6 million. The amounts have not been discounted, as maturity on receivables is generally very short and the discounted effect therefore immaterial. Note 31 – Business combinations (continued) The acquisition resulted in a bargain purchase gain of DKK 36.7 million which was recognized within other operating income in the consolidated income statement. The gain arose as the fair value of the net assets acquired (DKK 204.4 million) exceeded the fair value of the purchase consideration (DKK 167.7 million). The gain is primarily attributable to the Company purchasing the medical technology business of Valeritas out of bankruptcy. Valeritas encountered operational and financial difficulties in late 2019 and filed for Bankruptcy in February 2020.Specifically,the fair value of the tangible and financial assets acquired (DKK 147.5 million), such as inventories, trade receivables, and property, plant and equipment, represents a significant component of the purchase price prior to consideration of the fair value of the identified intangible assets. Acquisition-related costs of DKK 7.1 million have been expensed and are included in administrative expenses in profit or loss and are part of operating cash flows in the statement of cash flows have all been incurred in the three months period ended March 31, 2020.Adjustments may be applied to the various net asset categories when full alignment to Zealand accounting policies is finalized. Consequently, adjustments may be applied for a period of up to twelve months from the acquisition date in accordance with IFRS 3. The Valeritas business acquisition has contributed with net revenues of approximately DKK 161.3 million in net revenue and profit and loss of approximately DKK -278.8 million to the Group for the period ending December 31, 2020 since the acquisition on April 2, 2020. If the acquisition had occurred on 1 January 2020, the consolidated pro forma revenue and operating result of Zealand Pharma Group for the period ended 31 December 2020 would have been approximately DKK 395.8 million and DKK -868.9 million, respectively. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2021 | |
Related parties | |
Related parties | Note 32 - Related parties Zealand has no related parties with controlling interest. Zealand’s other related parties comprise the Company’s Board of Directors and Corporate Management. Remuneration to the Board of Directors and Corporate Management is disclosed in note 7. No further transactions with related parties were conducted during the year. Ownership The following shareholders are registered in Zealand Pharma’s register of shareholders as owning mini-mum 5% of the voting rights or minimum share capital equals vote ● Van Herk Investments, Rotterdam, Netherlands ● Credit Suisse Bank, Zürich, Switzerland ● SMALLCAP World Fund, Los Angeles, USA (shares) ● The Capital Group Companies, Los Angeles, USA (votes) |
Adjustments for non-cash items
Adjustments for non-cash items | 12 Months Ended |
Dec. 31, 2021 | |
Adjustments for non-cash items | |
Adjustments for non-cash items | Note 33 - Adjustments for non-cash items DKK thousand 2021 2020 2019 Depreciation, amortization and impairment 40,249 42,692 13,682 Share-based compensation expenses 53,504 30,485 14,763 Income tax -1,190 9,865 -5,385 Financial income -1,896 -1,127 -9,306 Financial expenses 16,674 3,511 3,390 Net loss on sale of fixed assets 2,697 0 0 Fair value adjustments 6,520 0 0 Exchange rate adjustments -68,943 57,712 -7,937 Total adjustments 47,615 143,138 9,207 |
Change in working capital
Change in working capital | 12 Months Ended |
Dec. 31, 2021 | |
Change in working capital | |
Change in working capital | Note 34 - Change in working capital DKK thousand 2021 2020 2019 (Increase)/decrease in receivables -64,494 -7,716 -21,059 (Increase)/decrease in Inventory -52,772 -14,404 0 Increase/(decrease) in payables and other liabilities -49,059 119,938 17,061 Adjustment for non-cash investing activities 0 0 -7,932 Cash outflow for investment in Beta Bionics 0 0 22,803 Change in working capital -166,325 97,818 10,873 |
Reconciliation of borrowings
Reconciliation of borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Reconciliation of borrowings | |
Reconciliation of borrowings | Note 35 – Reconciliation of borrowings DKK thousand 2021 2020 2019 As at January 1 0 0 0 Additions -656,120 0 0 Transaction costs 8,214 0 0 As at December 31 -647,906 0 0 |
Significant events after the ba
Significant events after the balance sheet date | 12 Months Ended |
Dec. 31, 2021 | |
Significant events after the balance sheet date | |
Significant events after the balance sheet date | Note 36 - Significant events after the balance sheet date No significant events have occurred after the end of the reporting period. |
Approval of the annual report
Approval of the annual report | 12 Months Ended |
Dec. 31, 2021 | |
Approval of the annual report | |
Approval of the annual report | Note 37 - Approval of the annual report The Annual Report has been approved by the Board of Directors and Executive Management and author-ized for issue on March 10, 2022. |
Significant accounting polici_2
Significant accounting policies, and significant accounting estimates and assessments (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies, and significant accounting estimates and assessments | |
Basis of consolidation | Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: ● has power over the investee; ● is exposed, or has rights, to variable returns from its involvement with the investee; and ● has the ability to use its power to affect its returns. The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. |
Principles of consolidation | Principles of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and the individual subsidiaries, which are based on uniform accounting policies and account-ing periods in all Group entities. Consolidation of Group entities is performed after elimination of all intra Group transactions, balances, income and expenses. Functional currency A functional currency is determined for each Group entity.The functional currency is the currency used in the primary financial environment in which the individual Group entity operates. |
Foreign currency translation | Foreign currency translation Transactions denominated in currencies other than the transacting entity's functional currency are trans-lated at the exchange rates on the transaction dates. Exchange differences arising between the rate on the transaction date and the rate on the payment day are recognized in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the statement of financial position date are translated by applying the exchange rates at the statement of financial position date. Differences arising between the rate at the statement of financial position date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Recognition in the consolidated financial statements On preparation of the consolidated financial statements, the income statements of entities with a func-tional currency different from DKK are translated at the average exchange rate for the period, and balance sheet items are translated at the exchange rate ruling at the reporting date. Foreign exchange differences arising on translation of the equity of foreign entities and on translation of receivables considered part of net investment are recognized directly in other comprehensive income. Foreign exchange differences arising on the translation of income statements from the average exchange rate for the period to the exchange rate ruling at the reporting date are also recognized in other compre-hensive income. Adjustments are presented under a separate translation reserve in equity. Materiality in financial reporting In preparing the Annual Report, Management seeks to improve the information value of the consolidated financial statements, the notes to the statements and other measures disclosed by presenting the infor-mation in a way that supports the understanding of the Group’s performance in the reporting period. This objective is achieved by presenting fair transactional aggregation levels at line items and other financial information, emphasizing information that is considered of material importance to the user and making relevant rather than generic descriptions throughout the Annual Report. All disclosures are made in compliance with the International Financial Reporting Standards, the Danish Financial Statements Act and other relevant regulations, ensuring a true and fair view throughout the Annual Report. |
Consolidated financial statements | Consolidated financial statements Income statement The expenses recognized in the income statement is presented as an analysis using a classification based on their function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with line of business, product candidates or geographical markets. Consequently, there is no segment reporting concerning business areas. Statement of financial position Financial assets Financial assets include receivables, marketable securities and cash. Financial assets are divided into cate-gories of which the following are relevant for the Group: 1. Financial assets at amortized cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) 2. Financial assets at fair value through the income statement, which are marketable securities catego-rized as equity instruments are held for trading and classified at fair value through profit and loss. 3. Equity investments. These investments are measured at fair value through the profit and loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the profit and loss are initially recognized at fair value, plus transaction costs. Financial liabilities Financial liabilities include borrowings, trade payables and certain other payables. Financial liabilities are divided into categories of which the following are relevant for the Group: 1. Financial liabilities at amortised cost. Borrowings: On initial recognition, borrowings are evaluated for the existence of non-closely related embedded de- rivatives, i.e. cash flows or potential cash flows whose economic characteristics and risks are not closely related to the economic characteristics and risks in the debt host contract. The cash flows attributable to such non-closely related embedded derivatives are separated and accounted for as derivative financial instruments. On initial recognition borrowings are measured at fair value which is generally equal to the proceeds received. Fair value is allocated between the debt host contract and, if applicable, an embedded deriva- tive. Transaction costs attributable to the debt host contract are deducted from the initial fair value and amortised over the term of the loan as part of the effective interest rate on the loan. Transaction costs attributable to a non-closely related embedded derivatives are expensed on initial recognition. Loan commitments are not accounted for. Lender fees and transaction costs attributable to uncondi- tional loan commitments are treated as prepaid transaction costs if the Group expect to draw down on the facility. If the Group has no specific plans for draw down on the loan commitment, the transaction costs are amortised over the commitment period. If a loan commitment is subject to meeting certain conditions, it is considered an unconditional loan commitment if the Group considers it probable that the conditions will be met. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the net result for the year. The statement shows the cash flows broken down into operating, investing and financing ac-tivities, cash and cash equivalents at the beginning and end of the year, and the impact of the calculated cash flows on cash and cash equivalents. The cash flow statement cannot be derived directly from the balance sheet and income statement. Cash flows in foreign currencies are translated into Danish kroner at the exchange rate on the transaction date. Cash flow from operating activities Cash flow from operating activities is presented indirectly and is calculated as the net operating result adjusted for depreciation and amortization, sale of royalties, non-cash operating items, changes in net working capital, financial items paid, bargain purchase gain, and income tax benefits received and paid. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Cash flow from investing activities Cash flow from investing activities includes cash flows from the sale of future royalties and milestone relating to the Sanofi license, purchase and sale of property, plant and equipment, investments and de-posits, net cashflow from acquisition of Valeritas activities, as well as transfers to and from restricted cash related to the royalty bond. Cash flow from financing activities Cash flow from financing activities includes proceeds from issuance of new ordinary shares, proceeds from issuance of shares related to exercise of sharebased compensation. and related costs, finance lease installments, loan financing and purchase of treasury shares. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Cash and cash equivalents are instruments with original maturities of 90 days or less. The Company does not have any cash equivalents for the years ended December 31, 2021, 2020 or 2019. Information on COVID-19 Our business, operations and clinical studies were, of course, impacted by the effects of COVID-19. Although our clinical studies continued without interruption during 2021, there were delays and increased total costs arising from the implications of COVID-19. However, we have not recognized any write-offs, impairments of assets, or losses to onerous contracts due to COVID-19. The COVID-19 pandemic is also having an effect on other aspects of our business, including: our third-party manufacturers, and other third parties; albeit with no material effect or impact. The COV-ID-19 pandemic may, in the long-term, affect the productivity of our staff; our ability to attract, integrate, manage and retain qualified personnel or key employees; our global supply chains and relationships with vendors and other parties; significant disruption of global financial markets; and reduced ability to secure additional funding. We continuously monitor the COVID-19 pandemic and its potential impact on our business and financials. |
Significant accounting estimates and judgements | Significant accounting estimates and judgements The preparation of the consolidated financial statements requires Management to make judgments and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accom-panying disclosures. In applying our accounting policies, Management is required to make judgements and estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recog-nized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertain- ties that may result in deviations in actual results compared with estimates. Please refer to the table below to see in which note the accounting estimates and judgements are pre- sented. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) Notes including management’s estimates and judgements Estimates Judgements 2 – Going concern uncertainties X 3 – Revenue X X 7 – Employee incentive programs X 27 – Rebate and product return liabilities X X Additional description of Management's estimates and judgements made are described below and in note 2. |
Revenue recognition (management estimate and judgement) | Revenue recognition (management estimate and judgement) Revenue comprises license payments, upfront- and milestone payments, product revenue and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. When entering into licensing and development agreements, a critical judgment relates to whether the custom-er could continue development of the Intellectual Property (IP) to the stage promised by Zealand under the promise to provide R&D services. If this is not the case, the IP and the R&D services are considered a single performance obligation. Milestone payments are related to the collaborative research agreements with commercial partners and are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services. |
Employee incentive programs (management estimates) | Employee incentive programs (management estimates) In accordance with IFRS 2, Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement over the vesting pe- riod. The fair value of each warrant granted during the year is estimated using the Black– Scholes option pricing model. This requires the input of subjective assumptions such as: ● The expected stock price volatility, which is based on the historical volatility of Zealand’s share price ● The selection of the risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity equal to the expected term ● The duration of the warrants, which is assumed to be until the middle of the exercise period The total fair value of the warrants is recognized in the income statement over the vesting period. An adjustment is made to reflect an expected attrition rate during the vesting period. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. |
Rebate and product return liabilities (management estimate and judgement) | Rebate and product return liabilities (management estimate and judgement) Liabilities regarding sales rebates and discounts granted to government agencies, wholesalers, retail phar- macies, managed care and other customers are recorded at the time the related revenues are recorded or when the incentives are offered. Note 1 – Significant accounting policies, and significant accounting estimates and assessments (continued) For both managed care rebates and the Medicare part D rebates, the key assumptions relate to the rebate percentages by each pharmacy as determined in each pharmacy's contract with the Company and forecasted number of prescriptions that will be filled by each pharmacy (referred to as payor mix). For co-pay card redemptions, the key assumptions relate to expected settlement rate for sales units remain- ing in the channel that have yet to be presented under co-pay terms. These assumptions are made based on historical actuals, which are used to estimate forecasted trends, including payor mix and settlement rates, which are used to estimate the expected settlement of managed care rebates and Medicare part D rebates, and co-pay card redemption, and the specific terms in the individual agreements. Unsettled rebates are recognized as liabilities when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognized as accruals. Please refer to note 27 for further information on sales rebates and liabilities. |
Business Combinations (management estimates and judgements) | Business combinations are accounted for using the acquisition method of accounting. At the date of the acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The consideration transferred is measured at fair value at the date of acquisition and the excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill. In circumstances where the consideration transferred is less than the fair value of net iden-tifiable assets of the business acquired, the difference is recognized directly in the consolidated income statement as a bargain purchase. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive loss as an administrative expense. Business combinations require management making an assessment of the fair value of the net assets ac-quired as well as an assessment regarding whether control exists. Management judgement is particularly involved in the recognition and measurement of the following items at fair value: ● intellectual property: this may include patents, licenses, trademarks and similar rights for currently mar-keted products, and also the rights and scientific knowledge associated with projects that are currently in research or development phases, and requires the projection of estimated future cash inflows and outflows and relevant risks, the terminal value of these assets, discount rates and weighted average costs of capital, Note 31 – Business combinations (continued) ● working capital items such as trade receivables, inventory (raw materials, work in process, parts and finished goods), prepaid expenses, trade payables, and fixed assets ● Guarantees, warranties, indemnities, rights, claims, counterclaims etc. set off against third parties relating to the acquired assets or assumed liabilities, including rights under vendors' and manufacturers' warranties, indemnities, guaranties and avoidance claims and causes of action under any applicable Law, employee liabilities and other contingencies In all cases, management makes an assessment based on the underlying economic substance of the items concerned, and not only on the contractual terms, in order to fairly present these items. In making these assessments, management relies to a significant extent on the work of valuation experts. However, the assessments are highly subjective and sensitive to the assumptions used. In accordance with IFRS 3, if a business combination indicates a bargain gain all applied assumptions will be reassessed by Management before recognition. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive loss. Customer relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 |
Royalty expenses | Royalty expenses comprise contractual amounts payable to third parties that are derived from milestone payments. Royalty expense is recognized in the income statement when the related payments and mile- stone events in the corresponding collaboration agreements materialize. |
Research, development, sales, marketing and administrative expenses | Research expenses comprise salaries, share-based compensation, contributions to pension schemes and other expenses, including patent expenses, as well as depreciation and amortization directly attributable to the Group’s research activities. Research expenses are recognized in the income statement as incurred. Development expenses comprise salaries, share-based compensation, contributions to pension schemes and other expenses, including depreciation and amortization, directly attributable to the Group’s devel-opment activities. Development expenses are recognized in the income statement as incurred, except where the capitalization criteria are met. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associat-ed undertakings. |
Other operating items, net | Other operating income and expenses comprises gains from sale of intangible assets, research funding from business partners and government grants and bargain purchase gain. Research funding is recognized in the period when the research activities have been performed and gov- ernment grants are recognized periodically when the work supported by the grant has been reported. Bargain purchase are recognized when the purchase price allocation is finalized.Government grants are recognized when a final and firm right to the grant has been obtained. Government grants are included in Other operating income, as the grants are considered to be cost refunds. |
Financial income | Financial income includes interest from trade receivables, as well as realized and unrealized exchange rate adjustments, fair value adjustments of other investments and marketable securities and dividends from marketable securities. Interest income is recognized in the income statement in accordance with the effective interest rate method. |
Financial expenses | Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjust-ments, interest on lease obligations and fair value adjustments of securities. Interest expense is recognized in the income statement in accordance with the effective interest rate method. |
Income tax | Income tax on results for the year, which comprises current tax and changes in deferred tax, is recog-nized in the income statement, whereas the portion attributable to entries in equity is recognized directly in equity. Current tax liabilities and current tax receivables are recognized in the statement of financial position as tax calculated on the taxable income for the year adjusted for tax on previous years’ taxable income and taxes paid on account/prepaid. Deferred tax is measured according to the statement of financial position liability method in respect of temporary differences between the carrying amount and the tax base of assets and liabilities. Note 11 - Income tax (continued) Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recog-nized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidi-aries except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the ben-efits of the temporary differences and they are expected to be reversed in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and phar-maceutical industry is subject to considerable risks and uncertainties. Zealand Pharma Group has so far reported significant losses and, consequently, has unused tax losses. Management has concluded that deferred tax assets should not be recognized at December 31, 2021 (none recognized in 2020 or 2019),except for the US entities, which are profitable and therefore recog-nize deferred tax on the balance sheet. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is set-tled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the statement of financial position date. Deferred tax from business combinations is initially recognized at fair value. Income tax receivables are recognized in accordance with the Danish tax credit scheme ‘Skattekreditord- ningen’. Companies covered by the tax credit scheme may obtain payment of the tax base of losses origi-nating from research and development expenses of up to DKK 25 million (tax value of DKK 5.5 million). |
Basic and diluted earnings per share | Basic result per share Basic result per share is calculated as the net result for the period that is allocated to the parent compa- ny's ordinary shares, divided by the weighted average number of ordinary shares outstanding deducted the treasury shares held by the company, cf. note 24. Diluted result per share Diluted result per share is calculated as the net result for the period that is allocated to the parent com- pany's ordinary shares, divided by the weighted average number of ordinary shares outstanding deducted the treasury shares, and adjusted by the dilutive effect of potential ordinary shares held by the company, cf. note 24. |
Impairment | Assets with indefinite useful lives are annually tested for impairment and whenever there is an impairment indication, whereas assets with finite useful lifetime are assessed for impairment indicators at the end of each reporting period. If such impairment indicators exists, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected costs to sell and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cash flows, discounted by using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or its cash-generating unit is lower than the carrying amount, an impairment charge is recognized in respect of the asset. The impairment loss is recognized in the income statement. In addition, for goodwill and other intangible assets with indefinite useful lives, impairment tests are performed at each balance sheet date, regardless of whether there are any indications of impair- ment. For acquisitions, the first impairment test is performed before the end of the year of acquisition. |
Intangible assets | Separately acquired licenses, rights and patents are initially measured at cost. Licenses, rights and patents acquired in connection with the purchase of a legal entity where substantially all of the fair value of the gross assets acquired is concentrated in a single asset are considered an asset acquisition and initially recognized at cost at the acquisition date. The cost accumulation model has been applied for accounting for contingent considerations, whereby all further consideration is added when incurred, to the cost of the asset initially recorded. |
Property, plant and equipment | Plant and machinery, other fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation. Cost comprises acquisition price and costs directly related to acquisition until the time when the Group starts using the asset. Tangible assets under construction are recorded as work in progress until construction has been com-pleted and use of asset commenced. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight-line method over the expected useful lives of the assets. The depreciation periods are as follows: Buildings 5 - 13 years Plant and machinery 5 - 10 years Other fixtures and fittings, tools and equipment 3 – 5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses, Sale and marketing expenses and Administrative expenses. The fair value of property, plant and equipment is assessed equivalent to the carrying amounts. At the end of each reporting period, the Group reviews the carrying amount of property, plant and equip-ment as well as non-current asset investments to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). If it is not possible to estimate the re-coverable amount of an individual asset, the Group estimates the recoverable amount of the cash-gener-ating unit to which the asset belongs. If a reasonable and consistent basis of allocation can be identified, assets are also allocated to cash-generating units, or allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. The recoverable amount is the higher of fair value less costs of disposal and value in use. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Note 14 – Property, plant and equipment (continued) No impairments to property. plant and equipment have been recognized for 2021, 2020 or 2019 |
Right-of-use assets and lease liabilities | Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components according to the specific pricing of the services in the agreements. Lease terms are negotiated on an individual basis and contain a wide range of different terms and condi-tions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments less any lease incentives receivable ● variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date Lease payments to be made under reasonably certain extension options are also included in the meas-urement of the liability. Short-term and low value leases are also recognized as right-of-use assets. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the Group's incremental borrow-ing rate is used, being the rate that the group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to the income statement over the lease period to ensure a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability ● any lease payments made at or before the commencement date less any lease incentives received ● any initial direct costs and restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. |
Inventories | Raw materials, work in progress and finished goods are measured at the lower of cost and net realizable value. Cost is determined on a first in, first out basis and comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to complete the sale. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalized but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognized in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. |
Other investments | Other investments are measured on initial recognition at cost, and subsequently at fair value. Changes in fair value are recognized in the income statement under financial items. |
Trade receivables | On initial recognition, receivables are measured at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amor- tized cost. Trade receivables are written down for expected credit losses. The Group applies the simplified approach in IFRS 9 to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables and contract assets. A write-down is recognized in sales and marketing expenses. |
Prepaid expenses | Prepaid expenses comprise amounts paid in respect of goods or services to be received in subsequent financial periods. Clinical trials, which are outsourced to Clinical Research Organizations (“CROs”), take several years to complete. As such, Management is required to make estimates based on the progress and costs incurred to-date for the ongoing trials. Judgements are made in determining the amount of costs to be expensed during the period, or recognized as prepayments or accruals on the statement of financial position. Other receivables are measured at amortized cost less impairment. Prepayments include expenditures related to future financial periods and are measured at nominal value. |
Other receivables | Other receivables are measured on initial recognition at cost and subsequently at amortized cost. |
Marketable securities | The Group’s Marketable securities portfolio comprises an equity investment in a bond portfolio. The investment is categorized as equity instruments classified at fair value through profit or loss. Refer to note 30, Financial risks. |
Cash and cash equivalents | Cash is measured on initial recognition at cost. |
Share capital | Consideration paid for the acquisition of treasury shares transactions is recognized directly in equity with- in treasury shares reserve. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the original cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. |
Other liabilities | Financial liabilities are recognized initially at fair value less transaction costs. In subsequent periods, finan- cial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method. |
Contingent assets, liabilities and other contractual obligations | Contingent assets and liabilities are disclosed, unless the possibility of an inflow or outflow of resources embodying economic benefits is virtually certain. |
Business overview (Tables)
Business overview (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business overview | |
Schedule of Ownership and Voting rights in Subsidiaries | Company summary Domicile Owner-ship Voting rights Zealand Pharma A/S subsidiaries ZP Holding SPV K/S Denmark 100 % 100 % ZP General Partner 1 ApS Denmark 100 % 100 % Zealand Pharma US Inc. United States 100 % 100 % Encycle Therapeutics Inc. Canada 100 % 100 % ZP SPV 3 K/S Denmark 100 % 100 % ZP General Partner 3 ApS Denmark 100 % 100 % ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S Denmark 100 % 100 % ZP General Partner 2 ApS Denmark 100 % 100 % Zealand Pharma US Inc. subsidiary Zealand Pharma California US, LLC. United States 100 % 100 % |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Schedule of revenue recognition | DKK thousand 2021 2020 2019 Boehringer Ingelheim International GmbH 22,311 149,120 0 Alexion Pharmaceuticals Inc. 30,185 42,881 38,021 Protagonist Therapeutics, Inc. 25,381 0 0 Sanofi-Aventis Deutschland GmbH 30,669 0 0 Undisclosed counterpart 0 0 3,312 Total license and milestone revenue 108,546 192,001 41,333 Gross product sales 354,599 303,658 0 Sales rebates -157,016 -133,924 0 Returns and sales reductions -13,562 -8,421 0 Total net product sales 184,021 161,313 0 Total revenue 292,567 353,314 41,333 Total revenue recognized over time 30,185 42,881 38,021 Total revenue recognized at a point in time 262,382 310,433 3,312 |
Research, development, sales,_2
Research, development, sales, marketing and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Research and development costs | |
Disclosure of attribution of expenses by nature to their function [line items] | |
Summary of research, development, sales, marketing and administrative expenses | DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -239,512 -204,210 -178,089 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -20,636 -17,417 -4,422 Other external research and development costs -328,305 -382,454 -378,912 Total research and development costs -588,453 -604,081 -561,423 |
Sale and marketing expenses. | |
Disclosure of attribution of expenses by nature to their function [line items] | |
Summary of research, development, sales, marketing and administrative expenses | DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -145,245 -130,568 0 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -92 -640 0 Other external sale and marketing costs -229,932 -154,048 0 Total Sale and Marketing expenses -375,269 -285,256 0 |
Administrative expenses. | |
Disclosure of attribution of expenses by nature to their function [line items] | |
Summary of research, development, sales, marketing and administrative expenses | DKK thousand 2021 2020 2019 Staff costs, cf. note 7 -127,630 -78,639 -40,141 Depreciation and impairment losses, property, plant and equipment and right-of-use assets, cf. note 13-15 -4,390 -5,042 0 Other external administrative costs -128,967 -119,089 -27,740 Total Administrative expenses -260,987 -202,770 -67,881 |
Fees to auditors appointed at_2
Fees to auditors appointed at the Annual General Meeting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fees to auditors appointed at the Annual General Meeting | |
Summary of fees to auditors appointed at the Annual General Meeting | DKK thousand 2021 2020 2019 Audit 7,879 5,941 1,847 Audit-related services and other assurance engagements 721 1,002 1,731 Other 0 0 12 Total fees 8,600 6,943 3,590 |
Information on staff and remu_2
Information on staff and remuneration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Information on staff and remuneration | |
Schedule of staff salaries | DKK thousand 2021 2020 2019 Total staff costs can be specified as follows: Wages and salaries 410,007 337,295 175,104 Share-based compensation 53,737 30,485 14,764 Pension schemes (defined contribution plans) 23,993 16,716 13,430 Other payroll and staff-related costs 54,541 37,241 14,932 Total staff costs 542,278 421,737 218,230 The amount is charged as: Research and development expenses 239,512 204,210 178,089 Sale and marketing expenses 145,245 130,568 0 Administrative expenses 127,630 78,639 40,141 Cost of goods sold 20,954 3,713 0 Inventory 8,937 4,607 0 Total staff costs 542,278 421,737 218,230 Average number of employees 346 297 173 |
Schedule of components of staff salaries and remuneration | 2021 2020 2019 Base Committee Total Base Committee Total Base Committee Total DKK thousand board fees fees fees board fees fees fees board fees fees fees Remuneration to the Board of Directors Martin Nicklasson 999 208 1,207 750 100 850 750 100 850 Kirsten Drejer 446 208 653 500 0 500 467 0 467 Alain Munoz 308 415 723 400 50 450 400 50 450 Michael Owen 308 415 723 400 50 450 400 50 450 Bernadette Mary Connaughton 308 346 653 400 33 433 267 0 267 Jeffrey Berkowitz 308 346 653 400 50 450 267 33 300 Leonard Kruimer Jens 308 553 861 400 150 550 267 100 367 Peter Stenvang 1 308 0 308 400 0 400 400 0 400 Gertrud Koefoed Rasmussen 1,2 67 0 67 267 0 267 0 0 0 Frederik Barfoed Beck 1 308 0 308 267 0 267 0 0 0 Iben Louise Gjelstrup 1 308 0 308 267 0 267 0 0 0 Hanne Heidenheim Bak² 0 0 0 133 0 133 400 0 400 Rosemary Crane 0 0 0 0 0 0 133 17 150 Catherine Moukheibir 0 0 0 0 0 0 133 50 183 Anneline Nansen 3 33 0 33 0 0 0 0 0 0 Total 4,009 2,491 6,497 4,584 433 5,017 3,884 400 4,284 1 Employee-elected board members; the table only includes remuneration for board work. 2 Hanne Heidenheim Bak resigned from the board in 2020 and Gertrud Koefod Rasmussen resigned from the Board in 2021. 3 Anneline Nansen joined the Board in 2021. Other Share based Pension short term compensation Severance DKK thousand Base salary Bonus contribution benefits expenses payments Total 2021 Remuneration to the Executive Management Emmanuel Dulac 1 5,099 3,059 1,020 243 12,182 0 21,603 Adam Sinding Steensberg² 3,056 1,193 611 286 4,829 0 9,975 Matthew Donald Dallas 3 2,878 1,182 37 48 4,086 0 8,232 Total 11,033 5,434 1,668 577 21,097 0 39,810 Total Other Corporate Management 5 9,022 3,429 497 564 8,319 2,772 24,602 Total 20,055 8,863 2,165 1,141 29,416 2,772 64,412 2020 Remuneration to the Executive Management Emmanuel Dulac 1 4,950 3,267 990 699 2,534 0 12,440 Adam Sinding Steensberg² 2,967 1,266 593 282 2,281 0 7,389 Matthew Donald Dallas 3 2,721 1,191 36 15 1,707 0 5,670 Total 10,638 5,724 1,619 996 6,522 0 25,499 Total Other Corporate Management 5 6,386 2,739 313 286 3,423 0 13,147 Total 17,024 8,463 1,932 1,282 9,945 0 38,646 2019 Remuneration to the Executive Management Emmanuel Dulac 1 3,100 9,072 620 855 832 0 14,479 Adam Sinding Steensberg² 2,807 1,032 505 269 2,304 0 6,917 Matthew Donald Dallas 3 588 534 0 5 82 0 1,209 Britt Meelby Jensen 1,745 419 175 60 0 0 2,399 Mats Blom 655 248 66 61 1,677 0 2,707 Total 8,895 11,305 1,366 1,250 4,895 0 27,711 Total other Corporate Management 5 6,559 2,580 389 46 1,972 0 11,546 Total 15,454 13,885 1,755 1,296 6,867 0 39,257 ¹ Emmanuel Dulac was appointed as CEO at April 25, 2019. ² Former Interim CEO Adam Sinding Steensberg was appointed EVP, R&D and CMO at April 25, 2019. ³ Matthew Donald Dallas was appointed CFO at October 10, 2019. ⁴ ⁵ |
Schedule of number of share warrants and exercise price | The employee incentive programs of Warrant programs existing during the period 2020 2015 Maximum years of options granted 10 years 5 years Method of settlement equity- settled equity- settled 2021 Outstanding at the beginning of the period 63,217 1,908,920 Granted during the period 0 0 Forfeited during the period 0 -214,348 Exercised during the period 0 -233,595 Expired during the period 0 -47,000 Outstanding at the end of the period 63,217 1,413,977 Exercisable at the end of the period 21,073 529,596 Warrants outstanding at the end of the period Range of exercise prices 216.8 90 - 224.4 Weighted-average remaining contractual life 8.7 3.8 Number held by Executive Management 0 353,409 Note 7 - Information on staff and remuneration (continued) The employee incentive programs of Warrant programs existing during the period 2020 2015 2010 Maximum years of options granted 10 years 10 years 5 years Method of settlement equity- settled equity- settled 2020 Outstanding at the beginning of the period 0 1,647,788 42,359 Granted during the period 63,217 631,288 0 Forfeited during the period 0 -53,747 0 Exercised during the period 0 -276,409 -42,359 Expired during the period 0 -40,000 0 Outstanding at the end of the period 63,217 1,908,920 0 Exercisable at the end of the period 0 301,529 0 Warrants outstanding at the end of the period Range of exercise prices 216.8 90.0 - 224.4 101.2 - 127.1 Weighted-average remaining contractual life 9.7 4.9 0 Number held by Executive Management 0 373,409 0 Warrants exercised during the period 2021 2020 Weighted-average share price at the date of exercise 186.1 234.7 Weighted-average exercise price for warrants expired during the period 142.5 101.2 Weighted-average exercise price for warrants forfeited during the period 206.2 169.2 Weighted-average exercise price for warrants outstanding at period end 159.6 158.5 Grant year 2021 2021 2020 2020 2019 2019 Type PSUs RSUs RSUs Warrants PSU Warrants Term 36 months 36 months 36 months Up to 78 months 36 months Up to 48 months Weighted average 216.8 127.0 share price (DKK) — — — to 224.4 — to 220.0 Share price at 185.9 131.2 216.8 — 138.6 — grant date (DKK) 191.6 207.6 224.4 Exercise price (DKK) 0 0 0 224.1 0 127.0 to 220.0 Volatility (%) N/A N/A N/A 44.68 N/A 41.9 to 46.45 to 43.5 Risk-free interest rate (%) N/A N/A N/A -0.31 N/A -0.45 to -0.41 to -0.63 - Exercise period to-from N/A N/A N/A Apr'21 N/A Jun'20 to Apr'30 to Dec'24 No granted 282,852 507,461 21,602 631,288 22,915 641,029 Cost price (DKK) 185.9 - 131.2 - 216.8 48.4 138.6 41.9 191.6 207.6 to 224.4 to 95.4 to 69.5 |
Schedule of value of warrants recognized in the income statement | Total share-based costs split on share-based type 2021 2020 2019 PSUs 14,765 900 500 RSUs 23,701 1,100 0 Warrants 15,271 28,485 14,264 Total 53,737 30,485 14,764 Total share-based costs split on cost type 2021 2020 2019 Cost of goods sold 521 0 0 Research and development expenses 22,158 14,005 12,191 Sale and Marketing expenses 2,259 6,045 0 Administrative expenses 27,972 10,435 2,573 Inventory 827 0 0 Total 53,737 30,485 14,764 PSU programs The number of performance share units granted in 2021 are 282,852 of which 185,162 were granted on May 12 and 97,090 on May 27. The value is determined based on the Company's share price on Nasdaq Copenhagen A/S on the day of the grant. The programs granted in 2021 are initially valued at DKK 51.7 million (2020: DKK 3.2 million). The PSU's vest linear or gradually over 3 years. Movement table of PSU granted shares below: No of PSUs 2021 2020 2019 Number of shares At January 1 19,765 19,765 0 Granted during the year 282,852 0 22,915 Vested during the year 0 0 0 Forfeited during the year -30,856 0 -3,150 At December 31 271,761 19,765 19,765 |
Schedule of number of shares units granted | No of PSUs 2021 2020 2019 Number of shares At January 1 19,765 19,765 0 Granted during the year 282,852 0 22,915 Vested during the year 0 0 0 Forfeited during the year -30,856 0 -3,150 At December 31 271,761 19,765 19,765 No of RSUs 2021 2020 2019 Number of shares At January 1 27,466 0 0 Granted during the year 507,461 27,466 0 Vested during the year -163 0 0 Forfeited during the year -74,675 0 0 At December 31 460,089 27,466 0 |
Other operating income and ex_2
Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other operating income and expenses | |
Schedule of other operating income | DKK thousand 2021 2020 2019 Government grants 759 602 444 Gain from Bargain Purchase, cf. note 31 0 36,395 0 Total other operating income 759 36,997 444 Loss on retirement of fixed assets -2,173 0 0 Total other operating expenses -2,173 0 0 |
Financial income (Tables)
Financial income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial income | |
Schedule of financial income | DKK thousand 2021 2020 2019 Interest income from financial assets measured at amortized costs 44 895 5,413 Fair value adjustments of marketable securities, cf. note 22 1,852 0 837 Fair value adjustments of other investments, cf. note 16 0 936 2,009 Exchange rate adjustments (primarily on USD deposits) 39,315 0 5,518 Dividend, marketable securities 0 191 878 Total financial income 41,211 2,022 14,655 |
Financial expenses (Tables)
Financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial expenses | |
Schedule of financial expenses | DKK thousand 2021 2020 2019 Interest expenses -4,091 -2,895 -3,205 Fair value adjustments of marketable securities, cf. note 22 0 -2,103 0 Fair value adjustments of other investments, cf. note 16 -8,217 0 0 Other financial expenses -3,473 -4,829 -185 Exchange rate adjustments (primarily on USD deposits) 0 -39,487 0 Total financial expenses -15,781 -49,314 -3,390 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income tax | |
Schedule of income tax receivables | DKK thousand 2021 2020 2019 Net result for the year before tax -1,026,940 -839,653 -576,677 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) -225,927 184,724 126,869 Adjustment for foreign tax rates 461 -769 0 Adjustment for non-deductible expenses 888 1,927 -947 Adjustment for non-taxable income 0 -6,844 964 Adjustment for warrants 11,573 2,387 8,664 Adjustment for R&D extra deduction -14,379 -8,811 1,676 Adjustment to prior year -12,602 931 0 Change in tax assets (not recognized) 231,196 -180,621 -132,090 Total income tax expense/benefit -8,790 -7,076 5,136 Note 11 - Income tax (continued) The above specifications related to warrants have been gathered in one line in 2021 and therefore the comparative numbers have been adjusted accordingly. DKK thousand 2021 2020 2019 Specification of deferred tax assets: Tax losses carried forward (available indefinitely) 2,231,049 1,281,505 681,531 Research and development expenses 842,775 732,389 460,007 Intangible assets 51,154 40,373 35,849 Non-current assets 89,414 66,419 51,677 Liabilities 126,174 188,787 139,890 Other 55,075 58,483 70,306 Total temporary differences 3,395,641 2,365,956 1,439,260 Calculated potential deferred tax asset at local tax rate 749,198 514,239 316,637 Deferred tax asset not expected to be utilized -735,673 -505,869 -316,637 Recognized deferred tax asset 13,525 8,370 0 |
Basic and diluted earnings pe_2
Basic and diluted earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted earnings per share | |
Schedule of basic and diluted earnings/loss per share | DKK thousand 2021 2020 2019 Net result for the year -1,018,149 -846,729 -571,541 Net result used in the calculation of basic and diluted earnings/losses per share -1,018,149 -846,729 -571,541 Weighted average number of ordinary shares 43,192,383 38,433,923 33,866,709 Weighted average number of treasury shares -322,988 -64,223 -64,223 Weighted average number of ordinary shares used in the calculation of basic earnings per share 42,869,395 38,369,700 33,802,486 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 42,869,395 38,369,700 33,802,486 Basic earnings/loss per share (DKK) -23.75 -22.07 -16.91 Diluted earnings/loss per share (DKK) -23.75 -22.07 -16.91 |
Schedule of potential ordinary shares are antidilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted earnings/loss per share | DKK thousand 2021 2020 2019 Outstanding warrants under the 2010 employee incentive program 0 0 42,359 Outstanding warrants under the 2015 employee incentive programs 1,413,977 1,908,920 1,647,788 Outstanding Restricted Share Units (RSUs) under the LTIP programs 460,089 27,466 0 Outstanding Performance Share Units (PSUs) under the LTIP program 271,761 19,765 19,765 Outstanding warrants under the 2020 employee incentive program 63,217 63,217 0 Total outstanding warrants 2,209,044 2,019,368 1,709,912 - out of which these are dilutive 0 0 0 - out of which these are anti-dilutive 2,209,044 2,019,368 1,709,912 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Summary of amortization periods of intangible assets | License, rights and patents: Amortization period will be determined once these IP rights are available for use Intellectual property: 10 years Physician relationship: 8 years |
Summary of intangible assets | Licenses rights Intellectual Physician DKK thousand and patents property relationship Cost at January 1, 2021 2,530 13,692 60,576 Additions 0 0 0 Currency translation 0 0 5,037 Cost at December 31, 2021 2,530 13,692 65,613 Amortization at January 1, 2021 0 13,692 5,621 Amortization for the year 0 0 7,859 Currency translation 0 0 873 Amortization at December 31, 2021 0 13,692 14,353 Carrying amount at December 31, 2021 2,530 0 51,260 Amortization and impairment for the financial year has been charged as: Research and development expenses 0 0 0 Sale and marketing expenses 0 0 7,859 Administrative expenses 0 0 0 Total 0 0 7,859 Remaining amortization period - - 6.25 years Cost at January 1, 2020 2,480 0 0 Additions due to business combinations, cf. note 31 0 13,692 68,459 Additions 0 0 0 Currency translations 50 0 -7,883 Cost at December 31, 2020 2,530 13,692 60,576 Amortization and impairment at January 1, 2020 0 0 0 Amortization for the year 0 957 5,901 Impairment, cf. note 17 0 12,735 0 Currency translation 0 0 -280 Amortization and impairment at December 31, 2020 0 13,692 5,621 Carrying amount at December 31, 2020 2,530 0 54,955 Amortization for the financial year has been charged as: Sale and marketing expenses 0 13,692 5,901 Total 0 13,692 5,901 Remaining amortization period - - 7.25 years |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Plant and Other fixtures Building Assets under DKK thousand machinery and fittings improvements construction Cost at January 1, 2021 85,898 15,279 34,104 3,023 Transfer 949 664 0 -1,613 Additions 7,118 1,444 2,449 11,122 Retirements -3,169 -1,630 -84 -419 Currency translation 1 78 131 -1 Cost at December 31, 2021 90,797 15,835 36,600 12,112 Accumulated depreciation at January 1, 2021 43,987 6,942 2,335 0 Transfer 0 0 0 0 Depreciation for the year 11,558 3,461 3,128 0 Retirements -1,330 -1,203 -73 0 Currency translation 1 40 44 0 Accumulated depreciation at December 31, 2021 54,216 9,240 5,434 0 Carrying amount at December 31, 2021 36,581 6,595 31,166 12,112 Depreciation for the financial year has been charged as: Research and development expenses -7,151 -121 0 0 Sale and marketing expenses -3,621 -2,568 -2,715 0 Administrative expenses -786 -680 -413 0 Total -11,558 -3,461 -3,128 0 Cost at January 1, 2020 57,153 12,501 13,773 14,001 Transfer 0 0 13,796 -13,796 Addition from business combinations 33,875 2,572 1,707 2,984 Additions 8,479 1,566 14,889 109 Retirements -5,935 -985 -9,856 0 Currency translation -7,674 -375 -205 -275 Cost at December 31, 2020 85,898 15,279 34,104 3,023 Accumulated depreciation at January 1, 2020 43,696 4,164 9,860 0 Transfer 0 0 0 0 Depreciation for the year 4,974 2,301 2,301 0 Retirements -4,304 -985 -9,804 0 Currency translation -379 1,462 -22 0 Accumulated depreciation at December 31, 2020 43,987 6,942 2,335 0 Carrying amount at December 31, 2020 41,911 8,337 31,769 3,023 Depreciation for the financial year has been charged as: Research and development expenses -4,128 -1,378 -1,910 0 Sale and marketing expenses -846 -282 -391 0 Administrative expenses 0 -640 0 0 Total -4,974 -2,301 -2,301 0 |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use assets and lease liabilities | |
Summary of amounts recognized in the statement of financial position | The statement of financial position shows the following amounts relating to right-of-use assets: Other Fixtures DKK thousand Office Buildings and fittings As at January 1, 2021 126,821 1,177 Additions 18,677 1,512 Depreciation expense -13,177 -1,066 Currency translation 1,050 0 As at December 31, 2021 133,371 1,623 As at January 1, 2020 84,148 1,484 Additions due to business combination, cf. note 31 14,299 0 Additions 42,725 581 Retirements -6,035 -144 Reversal of depreciations 6,035 0 Depreciation expense -12,779 -744 Currency translation -1,572 0 As at December 31, 2020 126,821 1,177 Note 15 – Right-of-use assets and lease liabilities (continued) Set out below are the carrying amounts of lease liabilities and the movements during the period: 2021 2020 As at January 1 130,119 85,760 Additions due to business combinations, cf. note 31 0 14,046 Additions 20,189 43,151 Accretion of interest 2,953 2,763 Payments -14,715 -14,098 Currency translation 977 -1,503 As at December 31 139,523 130,119 Current 14,897 14,072 Non-current 124,626 116,047 The following are the amounts recognized in income statement: Depreciation expense of right-of-use assets -14,243 -13,524 Interest expense on lease liabilities -2,953 -2,763 Total amount recognized in profit and loss -17,196 -16,287 Cashflow -14,715 -14,098 Total cash outflow for leases -14,715 -14,098 Depreciation for the financial year has been charged as: Research and development expenses -11,732 -10,001 Sale and marketing expenses 0 0 Administrative expenses -2,511 -3,523 Total -14,243 -13,524 |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other investments | |
Summary of other investments | DKK thousand 2021 2020 2019 Other investments at January 1 32,333 35,557 32,582 Fair value adjustments -8,217 69 2,193 Currency adjustments 2,791 -3,293 782 Other investments at December 31 26,907 32,333 35,557 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of inventories | We review our inventory for excess or obsolescence and write down inventory that has no alterna- tive uses to its net realizable. Economic conditions, customer demand and changes in purchasing and distribution can affect the carrying value of inventory. As circumstances warrant, we record provisions for potentially obsolete or slow-moving inventory and lower of cost or net realizable value inventory adjustments. In some instances, these adjustments can have a material effect on the financial results of an annual or interim period. In order to determine such adjustments, we evaluate the age, inventory turns, future sales forecasts and the estimated fair value of inventory. DKK thousand 2021 2020 Raw materials 35,816 14,398 Work in process 29,588 13,723 Finished goods 53,032 36,919 Total 118,436 65,040 Direct costs 85,270 48,224 Indirect production costs 33,166 16,816 |
Summary of write downs recognized on inventories | DKK thousand 2021 2020 Accumulated write downs, January 1 -6,948 0 Addition from business combination, cf. note 31 0 -11,294 Write downs in the reporting period -10,766 486 Utilization of write downs 12,641 3,860 Reversal of write downs 0 0 Exchange differences -119 0 Accumulated write downs, December 31 -5,192 -6,948 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other receivables. | |
Schedule of other receivables | DKK thousand 2021 2020 VAT 10,682 3,887 Other 5,120 6,055 Total other receivables 15,802 9,942 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents.. | |
Schedule of cash and cash equivalents | DKK thousand 2021 2020 DKK 11,336 286,222 USD 1,098,160 568,444 EUR 19,607 105,555 Total cash and cash equivalents 1,129,103 960,221 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share capital | |
Summary of share reconciliation | Consideration paid for the acquisition of treasury shares transactions is recognized directly in equity with- in treasury shares reserve. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the original cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. No, of shares (thousand) 2021 2020 January 1 39,800 36,055 Increase due to issue of new shares 3,834 3,745 December 31 43,634 39,800 The share capital solely consists of one class of ordinary shares all issued of DKK 1 each and all shares rank equally. The shares are negotiable instruments with no restrictions on their transferability. All shares have been fully paid. At the annual general meeting on April 2, 2020 Zealand was authorized to increase the nominal share capital by nominally DKK 9,013,665 during the period until April 2, 2025. At December 31, 2021 nominally DKK 1,986,547 of the authorization remains. On February 1, 2021 a total of 3,600,841 new shares have been subscribed through a private and direct shares issue with a net proceeds of DKK 745.4 million. In the period 19 March, 2021 to 10 December, 2021, a total of 233.595 new shares have been issued due to exercise of warrant programs with a net proceeds of DKK 26.1 million. The expenses related to share issues amounts to DKK 46.9 million. On June 22, 2020 a total of 2,684,461 new shares have been subscribed through a private and direct shares issue with a net proceeds pf DKK 655.0 million. On March 26, a total of 741,816 new shares have been subscribed through a private share issue to US based investors with a net proceeds of DKK 136.5 million. The cost of share issues amounts to DKK 42.7 million. Expenses directly related to capital increases are recognized in equity. At December 31, 2021,there were 418,247 treasury shares (2020: 64,223), equivalent to 1.0% (2020: 0.2%)of the share capital and corresponding to a market value of DKK 60.7 million (2020: DKK 14.1 million). The treasury shares are allocated to performance shares units (PSUs) and restricted stock units (RSUs). |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Summary of loan terms and repayments | Loan amount, tranche 1: 100 MUSD Loan amount, tranche 2: 50 MUSD to be drawn no later than December 31, 2023 Loan amount tranche 3: 50 MUSD to be drawn down no later than June 30, 2023 Maturity date: December 31, 2028 Repayment profile: Repayment at maturity: Base Interest: Higher of 12 months US Libor and 3 months Libor / [leverage formula] with a floor of 0.25% Credit spread: 6% p.a., fixed over the term of the contract Revenue participation payments: Draw down on tranche 1: 2.67% of consolidated revenue, not exceeding 75 MUSD and Draw down on tranche 1 & 2: 4% of consolidated revenue, not exceeding 75 MUSD Repayment amount at maturity: An amount resulting in an investor IRR of 9.75% p.a. including interest payments and royalty payments Lender option to require repayment of the debt: Change of control eventSale of certain assets – proceeds from sale to be used to repay the loan, however, no more than up to 75% of the out-standing amount Zealand option to prepay the debt: Throughout the term of the loan Early repayment amount: Before January 1, 2023: An amount equal to 120.0% of the principal amount of the Notes issued From January 1, 2023 until January 1,2024: An amount equal to 135.0% of the principal amount of the Notes issued From January 1, 2024 until January 1,2026: An amount equal to 150.0% of the principal amount of the Notes issued From January 1, 2026 until January 1,2027: An amount equal to the greater of 150.0% of the principal amount of the Notes issued and the amount (greater than zero) that would generate an internal rate of return to the Purchasers equal to 12.0% on the aggregate purchase price paid for the Notes From January 1, 2027 until December 31,2028: An amount equal to the greater of (i) 150.0% of the principal amount of the Notes issued and (ii) the amount (greater than zero) that would generate an internal rate of return to the Purchasers equal to 11.0% on the aggregate purchase price paid for the Notes |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenue | |
Summary of liabilities related to contracts with customers | DKK thousand 2021 2020 Deferred revenues at January 1 Customer 97,769 139,890 Customer payment received, cf. note 3.Revenue 0 0 recognized during the year -30,185 -42,881 Total deferred revenue 67,584 97,769 Non-current deferred revenue 14,551 44,587 Current deferred revenue 53,033 53,182 Total deferred revenue 67,584 97,769 |
Rebate and product return lia_2
Rebate and product return liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Rebate and product return liabilities | |
Rebate and product return liabilities | Sale Provision rebates return 2021 2020 DKK thousand liabilities liabilities total total Provision at the beginning of the year 36,434 239 36,673 0 Addition due to acquisition, cf. note 31 0 0 0 6,969 Additions for the year 155,910 2,124 158,033 137,321 Utilization during the period -167,045 1,555 -168,600 -103,766 Reversal of accruals from from previous years 0 0 0 -1,184 Currency translation adjustments 2,544 45 2,589 -2,668 End of the year 27,843 852 28,695 36,673 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other liabilities.. | |
Schedule of other liabilities | DKK thousand 2021 2020 Employee benefits 84,800 101,028 Royalty payable to third party 5,860 5,732 Development project costs 18,736 28,267 Other payables 82,164 32,272 Total other liabilities 191,560 167,299 Current 173,134 150,555 Non-current 18,426 16,744 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business combinations | |
Schedule of fair values of the identifiable assets and liabilities of valeritas | Fair value recognized on DKK thousand acquisition Assets Physician Relationship 68,459 V-Go IP 13,692 Property, plant and equipment 41,138 Right-of-use assets 14,299 Inventories 55,796 Trade receivables 50,603 Other assets 10,132 Cash and cash equivalents 66 Liabilities Deferred tax liability -11,880 Trade payables -4,050 Lease liabilities -14,046 Other liabilities -19,792 Total identifiable net assets at fair value 204,417 Bargain purchase recognized -36,692 Purchase consideration transferred 167,725 Analysis of cash flows on acquisition: Net cash acquired (included in cash flows from investing activities) 66 Cash paid -167,725 Net cash flow on acquisition -167,659 |
Financial risks (Tables)
Financial risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial risks | |
Schedule of effect on profit/loss and equity of reasonably likely change in financial variable | 2021 2020 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 20,675 +/-10% 58,124 The decline in currency exposure is primarily related to reduced net cash balance from borrowings de- nominated in USD. |
Schedule of contractual maturity | DKK thousand <12 months 1-5 Years >5 Years Total Borrowings 50,954 252,042 736,410 1,039,406 Trade payables 64,558 0 0 64,558 Leasing 14,608 62,558 75,415 152,581 Other liabilities 173,134 0 18,426 191,560 Total financial liabilities at December 31, 2021 303,254 314,600 830,251 1,448,105 Trade payables 71,442 0 0 71,442 Leasing 14,072 53,039 76,354 146,465 Other liabilities 150,555 16,744 0 167,299 Total financial liabilities at December 31, 2020 236,069 69,783 76,354 382,209 |
Schedule of financial instrument carried at fair value | DKK thousand 2021 2020 Categories of financial instruments Deposits 12,638 16,650 Trade receivables 73,025 46,484 Other receivables 15,802 9,942 Cash and cash equivalents 1,129,103 960,221 Financial assets at amortized costs 1,230,568 1,033,297 Marketable securities 299,042 297,345 Other investments 26,907 32,333 Financial assets measured at fair value through profit or loss 325,949 329,678 Borrowings 647,906 0 Lease liabilities 139,523 130,119 Trade payables 64,558 70,384 Other liabilities 191,560 167,299 Financial liabilities measured at amortized cost 1,043,547 367,802 |
Adjustments for non-cash items
Adjustments for non-cash items (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Adjustments for non-cash items | |
Schedule of adjustments for non-cash items | DKK thousand 2021 2020 2019 Depreciation, amortization and impairment 40,249 42,692 13,682 Share-based compensation expenses 53,504 30,485 14,763 Income tax -1,190 9,865 -5,385 Financial income -1,896 -1,127 -9,306 Financial expenses 16,674 3,511 3,390 Net loss on sale of fixed assets 2,697 0 0 Fair value adjustments 6,520 0 0 Exchange rate adjustments -68,943 57,712 -7,937 Total adjustments 47,615 143,138 9,207 |
Change in working capital (Tabl
Change in working capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Change in working capital | |
Schedule of change in working capital | DKK thousand 2021 2020 2019 (Increase)/decrease in receivables -64,494 -7,716 -21,059 (Increase)/decrease in Inventory -52,772 -14,404 0 Increase/(decrease) in payables and other liabilities -49,059 119,938 17,061 Adjustment for non-cash investing activities 0 0 -7,932 Cash outflow for investment in Beta Bionics 0 0 22,803 Change in working capital -166,325 97,818 10,873 |
Reconciliation of borrowings (T
Reconciliation of borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reconciliation of borrowings | |
Summary of reconciliation of borrowings | DKK thousand 2021 2020 2019 As at January 1 0 0 0 Additions -656,120 0 0 Transaction costs 8,214 0 0 As at December 31 -647,906 0 0 |
Business overview (Details)
Business overview (Details) | 12 Months Ended |
Dec. 31, 2021productitem | |
Overview of Business | |
Products advanced into clinical development | 10 |
Products which have reached market | product | 2 |
Products in late development stage | 3 |
ZP Holding SPV K/S | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
ZP General Partner 1 ApS | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
Zealand Pharma US Inc. | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
Encycle Therapeutics Inc. | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
ZP SPV 3 K/S | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
ZP General Partner 3 ApS | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
ZP SPV 1 K/S | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
ZP General Partner 2 ApS | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
Zealand Pharma California US, LLC. | |
Overview of Business | |
Ownership interest in subsidiaries (in percentage) | 100.00% |
Voting rights held in subsidiaries (in percentage) | 100.00% |
Revenue (Details)
Revenue (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2019USD ($) | Sep. 30, 2018DKK (kr) | Sep. 30, 2018USD ($) | Dec. 31, 2021DKK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2020DKK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2019DKK (kr) | Dec. 31, 2019USD ($) | Dec. 31, 2014 | Dec. 31, 2018DKK (kr) | |
Revenue: | ||||||||||||
Share premium. | kr 4,250,306,000 | kr 3,472,487,000 | ||||||||||
License and milestone revenue | 108,546,000 | 192,001,000 | kr 41,333,000 | |||||||||
Total revenue from sale of goods | 184,021,000 | 161,313,000 | 0 | |||||||||
Total revenue | 292,567,000 | 353,314,000 | 41,333,000 | |||||||||
Equity | 927,803,000 | 1,229,311,000 | 1,242,673,000 | kr 1,116,281,000 | ||||||||
Cash flows from (used in) financing activities | 1,332,751,000 | 760,941,000 | 674,480,000 | |||||||||
Cash flows from (used in) operating activities | (1,211,971,000) | (688,716,000) | (409,455,000) | |||||||||
Gross sales | 354,599,000 | 303,658,000 | 0 | |||||||||
Sales rebates | (157,016,000) | (133,924,000) | 0 | |||||||||
Returns and Sales Reductions | (13,562,000) | (8,421,000) | 0 | |||||||||
Cost of goods sold | 107,844,000 | 90,565,000 | 0 | |||||||||
Sales and marketing expenses | 375,269,000 | 285,256,000 | 0 | |||||||||
Non-current assets | 346,033,000 | 342,261,000 | ||||||||||
Customer A | ||||||||||||
Revenue: | ||||||||||||
Total revenue from sale of goods | 67,200,000 | 60,600,000 | ||||||||||
Customer B | ||||||||||||
Revenue: | ||||||||||||
Total revenue from sale of goods | 52,800,000 | 48,400,000 | ||||||||||
Customer C | ||||||||||||
Revenue: | ||||||||||||
Total revenue from sale of goods | 45,000,000 | 37,700,000 | ||||||||||
Germany | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | 53,000,000 | 149,100,000 | ||||||||||
Denmark | ||||||||||||
Revenue: | ||||||||||||
Non-current assets | 184,800,000 | |||||||||||
US | ||||||||||||
Revenue: | ||||||||||||
Total revenue | 239,600,000 | 204,200,000 | ||||||||||
Non-current assets | 106,900,000 | |||||||||||
V-Go | ||||||||||||
Revenue: | ||||||||||||
Total revenue from sale of goods | 161,300,000 | |||||||||||
Total revenue recognized over time | ||||||||||||
Revenue: | ||||||||||||
Royalty revenue | 30,185,000 | 42,881,000 | 38,021,000 | |||||||||
Total revenue recognized at a point in time | ||||||||||||
Revenue: | ||||||||||||
Royalty revenue | 262,382,000 | 310,433,000 | 3,312,000 | |||||||||
Boehringer Ingelheim | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | 22,311,000 | 149,120,000 | 0 | |||||||||
Term | 4 years 6 months | |||||||||||
Boehringer Ingelheim | Advance novel glucagon | ||||||||||||
Revenue: | ||||||||||||
Maximum amount of milestone payments to be received | € | € 386 | |||||||||||
Outstanding milestone payments | € | € 345 | |||||||||||
Alexion | ||||||||||||
Revenue: | ||||||||||||
Equity investment from counterparty | $ | $ 15 | |||||||||||
Share premium. | 12,700,000 | |||||||||||
Consideration received | 262,900,000 | $ 40 | ||||||||||
License and milestone revenue | 25 | 30,185,000 | 42,881,000 | 38,021,000 | ||||||||
Total revenue | 30,200,000 | 42,900,000 | 37,400,000 | |||||||||
Other revenue | 600,000 | |||||||||||
Deferred income other than contract liabilities | 67,600,000 | |||||||||||
Alexion | Research and development agreement | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | kr 30,200,000 | 42,900,000 | 38,000,000 | |||||||||
Alexion | Development milestone | ||||||||||||
Revenue: | ||||||||||||
Potential milestone receivable | $ | 115 | |||||||||||
Alexion | Sales milestone | ||||||||||||
Revenue: | ||||||||||||
Potential milestone receivable | $ | 495 | |||||||||||
Alexion | Development and sales milestone and royalties | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | $ | $ 15 | |||||||||||
Alexion | Alexion deferred | ||||||||||||
Revenue: | ||||||||||||
Total revenue | 37,400,000 | |||||||||||
Equity | 85,600,000 | |||||||||||
Cash flows from (used in) financing activities | 85,600,000 | |||||||||||
Cash flows from (used in) operating activities | 177,300,000 | |||||||||||
Deferred income other than contract liabilities | 139,900,000 | |||||||||||
Inventor or SIP Technology | ||||||||||||
Revenue: | ||||||||||||
Royalty payable (as a percent) | 0.50% | 0.50% | 0.50% | |||||||||
Undisclosed counterpart | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | kr 0 | 0 | 3,312,000 | |||||||||
Protagonist Therapeutics | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | 25,381,000 | 0 | 0 | |||||||||
Sanofi | ||||||||||||
Revenue: | ||||||||||||
License and milestone revenue | kr 30,669,000 | 0 | 0 | |||||||||
Total revenue | 0 | 0 | ||||||||||
Royalty payable (as a percent) | 13.00% | 13.00% | 13.00% | |||||||||
Potential milestone payment from Sanofi | kr 98,400,000 | $ 15 | ||||||||||
Outstanding milestone payments | kr 65,600,000 | $ 10 | kr 98,400,000 | $ 15 | kr 98,400,000 | $ 15 |
Revenue - Sales gross-to-net re
Revenue - Sales gross-to-net reconciliation (Details) kr in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021DKK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2020DKK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2019DKK (kr) | Dec. 31, 2019USD ($) | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Gross sales | kr 354,599 | kr 303,658 | kr 0 | |||
Returns and Sales Reductions | (13,562) | (8,421) | 0 | |||
Net sales | 184,021 | 161,313 | 0 | |||
Sanofi | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Milestone payment received | 30,700 | $ 5 | ||||
Outstanding milestone payments | kr 65,600 | $ 10 | 98,400 | $ 15 | kr 98,400 | $ 15 |
V-Go | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Net sales | kr 161,300 |
Royalty expenses (Details)
Royalty expenses (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Sanofi | |
Other operating income | |
Royalty payable (as percent) | 13.00% |
Inventor or SIP Technology | |
Other operating income | |
Royalty payable (as percent) | 0.50% |
Research, development, sales,_3
Research, development, sales, marketing and administrative expenses - Research and development expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Research and development costs | |||
Staff costs | kr (542,278) | kr (421,737) | kr (218,230) |
Total research and development costs | (588,453) | (604,081) | (561,423) |
Research and development costs | |||
Research and development costs | |||
Staff costs | (239,512) | (204,210) | (178,089) |
Depreciation and impairment losses, property, plant and equipment and right-of-use assets | (20,636) | (17,417) | (4,422) |
Other external costs | (328,305) | (382,454) | (378,912) |
Total research and development costs | kr (588,453) | kr (604,081) | kr (561,423) |
Research, development, sales,_4
Research, development, sales, marketing and administrative expenses - Sale and Marketing expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sale and Marketing expenses | |||
Staff costs | kr (542,278) | kr (421,737) | kr (218,230) |
Total Sale and Marketing expenses | (375,269) | (285,256) | 0 |
Sale and marketing expenses. | |||
Sale and Marketing expenses | |||
Staff costs | (145,245) | (130,568) | 0 |
Depreciation and impairment losses, property, plant and equipment and right-of-use assets | (92) | (640) | 0 |
Other external costs | (229,932) | (154,048) | 0 |
Total Sale and Marketing expenses | kr (375,269) | kr (285,256) | kr 0 |
Research, development, sales,_5
Research, development, sales, marketing and administrative expenses - Administrative expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Administrative expenses | |||
Staff costs | kr (542,278) | kr (421,737) | kr (218,230) |
Total Administrative expenses | (260,987) | (202,770) | (67,881) |
Administrative expenses. | |||
Administrative expenses | |||
Staff costs | (127,630) | (78,639) | (40,141) |
Depreciation and impairment losses, property, plant and equipment and right-of-use assets | (4,390) | (5,042) | 0 |
Other external costs | (128,967) | (119,089) | (27,740) |
Total Administrative expenses | kr (260,987) | kr (202,770) | kr (67,881) |
Fees to auditors appointed at_3
Fees to auditors appointed at the Annual General Meeting (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fees to auditors appointed at the Annual General Meeting | |||
Audit | kr 7,879 | kr 5,941 | kr 1,847 |
Audit-related services and other assurance engagements | 721 | 1,002 | 1,731 |
Other | 0 | 0 | 12 |
Total fees | kr 8,600 | kr 6,943 | kr 3,590 |
Information on staff and remu_3
Information on staff and remuneration (Details) | 12 Months Ended | ||
Dec. 31, 2021DKK (kr)employee | Dec. 31, 2020DKK (kr)employee | Dec. 31, 2019DKK (kr)employee | |
Total staff costs can be specified as follows: | |||
Wages and salaries | kr 410,007,000 | kr 337,295,000 | kr 175,104,000 |
Share-based compensation | 53,737,000 | 30,485,000 | 14,764,000 |
Pension schemes (defined contribution plans) | 23,993,000 | 16,716,000 | 13,430,000 |
Other payroll and staff-related costs | 54,541,000 | 37,241,000 | 14,932,000 |
Total staff costs | 542,278,000 | 421,737,000 | 218,230,000 |
The amount is charged as: | |||
Research and development expenses | 239,512,000 | 204,210,000 | 178,089,000 |
Sale and marketing expenses | 145,245,000 | 130,568,000 | 0 |
Administrative expenses | 127,630,000 | 78,639,000 | 40,141,000 |
Cost of goods sold | 20,954,000 | 3,713,000 | 0 |
Inventory | 8,937,000 | 4,607,000 | 0 |
Total staff costs | kr 542,278,000 | kr 421,737,000 | kr 218,230,000 |
Average number of employees | employee | 346 | 297 | 173 |
Remuneration to the Board of Directors | |||
Base board fee | kr 4,009,000 | kr 4,584,000 | kr 3,884,000 |
Committee fees | 2,491,000 | 433,000 | 400,000 |
Total fees | 6,497,000 | 5,017,000 | 4,284,000 |
Martin Nicklasson | |||
Remuneration to the Board of Directors | |||
Base board fee | 999,000 | 750,000 | 750,000 |
Committee fees | 208,000 | 100,000 | 100,000 |
Total fees | 1,207,000 | 850,000 | 850,000 |
Kirsten Drejer | |||
Remuneration to the Board of Directors | |||
Base board fee | 446,000 | 500,000 | 467,000 |
Committee fees | 208,000 | 0 | 0 |
Total fees | 653,000 | 500,000 | 467,000 |
Alain Munoz | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 400,000 |
Committee fees | 415,000 | 50,000 | 50,000 |
Total fees | 723,000 | 450,000 | 450,000 |
Michael Owen | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 400,000 |
Committee fees | 415,000 | 50,000 | 50,000 |
Total fees | 723,000 | 450,000 | 450,000 |
Bernadette Mary Connaughton | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 267,000 |
Committee fees | 346,000 | 33,000 | 0 |
Total fees | 653,000 | 433,000 | 267,000 |
Jeffrey Berkowitz | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 267,000 |
Committee fees | 346,000 | 50,000 | 33,000 |
Total fees | 653,000 | 450,000 | 300,000 |
Leonard Kruimer Jens | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 267,000 |
Committee fees | 553,000 | 150,000 | 100,000 |
Total fees | 861,000 | 550,000 | 367,000 |
Peter Stenvang | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 400,000 | 400,000 |
Committee fees | 0 | 0 | 0 |
Total fees | 308,000 | 400,000 | 400,000 |
Gertrud Koefoed Rasmussen | |||
Remuneration to the Board of Directors | |||
Base board fee | 67,000 | 267,000 | 0 |
Committee fees | 0 | 0 | 0 |
Total fees | 67,000 | 267,000 | 0 |
Frederik Barfoed Back | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 267,000 | 0 |
Committee fees | 0 | 0 | 0 |
Total fees | 308,000 | 267,000 | 0 |
Iben Louise Gjelstrup | |||
Remuneration to the Board of Directors | |||
Base board fee | 308,000 | 267,000 | 0 |
Committee fees | 0 | 0 | 0 |
Total fees | 308,000 | 267,000 | 0 |
Hanne Heidenheim Bak | |||
Remuneration to the Board of Directors | |||
Base board fee | 0 | 133,000 | 400,000 |
Committee fees | 0 | 0 | 0 |
Total fees | 0 | 133,000 | 400,000 |
Rosemary Crane | |||
Remuneration to the Board of Directors | |||
Base board fee | 0 | 0 | 133,000 |
Committee fees | 0 | 0 | 17,000 |
Total fees | 0 | 0 | 150,000 |
Catherine Moukheibir | |||
Remuneration to the Board of Directors | |||
Base board fee | 0 | 0 | 133,000 |
Committee fees | 0 | 0 | 50,000 |
Total fees | 0 | 0 | 183,000 |
Anneline Nansen | |||
Remuneration to the Board of Directors | |||
Base board fee | 33,000 | 0 | 0 |
Committee fees | 0 | 0 | 0 |
Total fees | kr 33,000 | kr 0 | kr 0 |
Information on staff and remu_4
Information on staff and remuneration - Remuneration to the Executive Management (Details) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021DKK (kr) | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | |
Disclosure of transactions between related parties | |||
Base salary | kr 20,055 | kr 17,024 | kr 15,454 |
Bonus | 8,863 | 8,463 | 13,885 |
Pension contribution | 2,165 | 1,932 | 1,755 |
Other short term benefits | 1,141 | 1,282 | 1,296 |
Share based compensation expenses | 29,416 | 9,945 | 6,867 |
Severance payment | 2,772 | 0 | 0 |
Total | kr 64,412 | kr 38,646 | kr 39,257 |
Other Corporate Management, members | 3 | 3 | 3 |
Executive management | |||
Disclosure of transactions between related parties | |||
Base salary | kr 11,033 | kr 10,638 | kr 8,895 |
Bonus | 5,434 | 5,724 | 11,305 |
Pension contribution | 1,668 | 1,619 | 1,366 |
Other short term benefits | 577 | 996 | 1,250 |
Share based compensation expenses | 21,097 | 6,522 | 4,895 |
Severance payment | 0 | 0 | 0 |
Total | 39,810 | 25,499 | 27,711 |
EVP, R&D and CMO | |||
Disclosure of transactions between related parties | |||
Base salary | 3,056 | 2,967 | 2,807 |
Bonus | 1,193 | 1,266 | 1,032 |
Pension contribution | 611 | 593 | 505 |
Other short term benefits | 286 | 282 | 269 |
Share based compensation expenses | 4,829 | 2,281 | 2,304 |
Severance payment | 0 | 0 | 0 |
Total | 9,975 | 7,389 | 6,917 |
Former CFO (resigned 2/28/2019) | |||
Disclosure of transactions between related parties | |||
Base salary | 1,745 | ||
Bonus | 419 | ||
Pension contribution | 175 | ||
Other short term benefits | 60 | ||
Share based compensation expenses | 0 | ||
Severance payment | 0 | ||
Total | 2,399 | ||
Former CFO (resigned 3/28/2019) | |||
Disclosure of transactions between related parties | |||
Base salary | 655 | ||
Bonus | 248 | ||
Pension contribution | 66 | ||
Other short term benefits | 61 | ||
Share based compensation expenses | 1,677 | ||
Severance payment | 0 | ||
Total | 2,707 | ||
Chief Executive Officer | |||
Disclosure of transactions between related parties | |||
Base salary | 5,099 | 4,950 | 3,100 |
Bonus | 3,059 | 3,267 | 9,072 |
Pension contribution | 1,020 | 990 | 620 |
Other short term benefits | 243 | 699 | 855 |
Share based compensation expenses | 12,182 | 2,534 | 832 |
Severance payment | 0 | 0 | 0 |
Total | 21,603 | 12,440 | 14,479 |
Chief Financial Officer | |||
Disclosure of transactions between related parties | |||
Base salary | 2,878 | 2,721 | 588 |
Bonus | 1,182 | 1,191 | 534 |
Pension contribution | 37 | 36 | 0 |
Other short term benefits | 48 | 15 | 5 |
Share based compensation expenses | 4,086 | 1,707 | 82 |
Severance payment | 0 | 0 | 0 |
Total | 8,232 | 5,670 | 1,209 |
Other Corporate Management | |||
Disclosure of transactions between related parties | |||
Base salary | 9,022 | 6,386 | 6,559 |
Bonus | 3,429 | 2,739 | 2,580 |
Pension contribution | 497 | 313 | 389 |
Other short term benefits | 564 | 286 | 46 |
Share based compensation expenses | 8,319 | 3,423 | 1,972 |
Severance payment | 2,772 | 0 | 0 |
Total | kr 24,602 | kr 13,147 | kr 11,546 |
Information on staff and remu_5
Information on staff and remuneration - Total share-based costs split on share-based type (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Information on staff and remuneration | |||
Total | kr 53,737 | kr 30,485 | kr 14,764 |
PSUs | |||
Disclosure of Information on staff and remuneration | |||
Total | 14,765 | 900 | 500 |
RSUs | |||
Disclosure of Information on staff and remuneration | |||
Total | 23,701 | 1,100 | 0 |
Warrants | |||
Disclosure of Information on staff and remuneration | |||
Total | kr 15,271 | kr 28,485 | kr 14,264 |
Information on staff and remu_6
Information on staff and remuneration - Total share-based costs split on cost type (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | kr 53,737 | kr 30,485 | kr 14,764 |
Cost of goods sold | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | 521 | 0 | 0 |
Research and development costs | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | 22,158 | 14,005 | 12,191 |
Sale and marketing expenses. | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | 2,259 | 6,045 | 0 |
Administrative expenses. | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | 27,972 | 10,435 | 2,573 |
Inventory | |||
Disclosure of attribution of expenses by nature to their function [line items] | |||
Total share-based costs | kr 827 | kr 0 | kr 0 |
Information on staff and remu_7
Information on staff and remuneration - RSU & PSU programs (Details) | May 27, 2021DKK (kr) | May 12, 2021DKK (kr) | Dec. 31, 2021DKK (kr)EquityInstruments | Dec. 31, 2021DKK (kr)EquityInstruments | Dec. 31, 2020DKK (kr)EquityInstruments | Dec. 31, 2019DKK (kr)EquityInstruments |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Balance at the beginning | EquityInstruments | 2,019,368 | 1,709,912 | ||||
Balance at the end | EquityInstruments | 2,209,044 | 2,209,044 | 2,019,368 | 1,709,912 | ||
RSU programs | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of units granted | 507,461 | 507,461 | 27,466 | 0 | ||
Initial value of program granted | kr 92,200,000 | kr 92,200,000 | kr 6,100,000 | |||
Balance at the beginning | 27,466 | 0 | 0 | |||
Granted during the year | 507,461 | 507,461 | 27,466 | 0 | ||
Vested during the year | (163) | 0 | 0 | |||
Forfeited during the year | (74,675) | 0 | 0 | |||
Balance at the end | 460,089 | 460,089 | 27,466 | 0 | ||
Vesting period | 3 years | |||||
PSU programs | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of units granted | 97,090 | 185,162 | 282,852 | 0 | 22,915 | |
Initial value of program granted | kr 51,700,000 | kr 51,700,000 | kr 3,200,000 | |||
Balance at the beginning | 19,765 | 19,765 | 0 | |||
Granted during the year | 97,090 | 185,162 | 282,852 | 0 | 22,915 | |
Vested during the year | 0 | 0 | 0 | |||
Forfeited during the year | (30,856) | 0 | (3,150) | |||
Balance at the end | 271,761 | 271,761 | 19,765 | 19,765 | ||
Vesting period | 3 years |
Information on staff and remu_8
Information on staff and remuneration - Employee warrant programs (Details) | 12 Months Ended | |
Dec. 31, 2021DKK (kr)EquityInstrumentskr / shares | Dec. 31, 2020DKK (kr)EquityInstrumentskr / shares | |
Disclosure of Information on staff and remuneration | ||
Balance at the beginning | EquityInstruments | 2,019,368 | 1,709,912 |
Balance at the end | EquityInstruments | 2,209,044 | 2,019,368 |
Weighted-average share price at the date of exercise | kr / shares | kr 186.1 | kr 234.7 |
Weighted-average exercise price for expired during the period | kr / shares | 142.5 | 101.2 |
Weighted-average exercise price for forfeited during the period | kr / shares | 206.2 | 169.2 |
Weighted-average exercise price for outstanding during the period | kr / shares | kr 159.6 | kr 158.5 |
10 year employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Maximum years of options granted (In years) | 10 years | 10 years |
Balance at the beginning | 63,217 | 0 |
Number of units granted | 0 | 63,217 |
Number of warrants, forfeited during the period | 0 | 0 |
Number of warrants, exercised during the period | 0 | 0 |
Number of warrants, expired during the period | 0 | 0 |
Balance at the end | 63,217 | 63,217 |
Number of warrants, exercisable at the end of the period | 21,073 | 0 |
Warrants, Exercise price | kr / shares | kr 216.8 | kr 216.8 |
Weighted-average remaining contractual life | 8 years 8 months 12 days | 9 years 8 months 12 days |
2010 employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Maximum years of options granted (In years) | 5 years | |
Balance at the beginning | 0 | 42,359 |
Number of units granted | 0 | |
Number of warrants, forfeited during the period | 0 | |
Number of warrants, exercised during the period | (42,359) | |
Number of warrants, expired during the period | 0 | |
Balance at the end | 0 | |
Number of warrants, exercisable at the end of the period | 0 | |
Weighted-average remaining contractual life | 0 years | |
2010 employee warrant incentive program | Minimum | ||
Disclosure of Information on staff and remuneration | ||
Warrants, Exercise price | kr / shares | kr 101.2 | |
2010 employee warrant incentive program | Maximum | ||
Disclosure of Information on staff and remuneration | ||
Warrants, Exercise price | kr / shares | kr 127.1 | |
2015 employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Maximum years of options granted (In years) | 5 years | 10 years |
Balance at the beginning | 1,908,920 | 1,647,788 |
Number of units granted | 0 | 631,288 |
Number of warrants, forfeited during the period | (214,348) | (53,747) |
Number of warrants, exercised during the period | (233,595) | (276,409) |
Number of warrants, expired during the period | (47,000) | (40,000) |
Balance at the end | 1,413,977 | 1,908,920 |
Number of warrants, exercisable at the end of the period | 529,596 | 301,529 |
Weighted-average remaining contractual life | 3 years 9 months 18 days | 4 years 10 months 24 days |
2015 employee warrant incentive program | Minimum | ||
Disclosure of Information on staff and remuneration | ||
Warrants, Exercise price | kr / shares | kr 90 | kr 90 |
2015 employee warrant incentive program | Maximum | ||
Disclosure of Information on staff and remuneration | ||
Warrants, Exercise price | kr / shares | kr 224.4 | kr 224.4 |
Executive management | 10 year employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Balance at the beginning | 0 | |
Balance at the end | 0 | 0 |
Executive management | 2010 employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Balance at the beginning | 0 | |
Balance at the end | 0 | |
Executive management | 2015 employee warrant incentive program | ||
Disclosure of Information on staff and remuneration | ||
Balance at the beginning | 373,409 | |
Balance at the end | 353,409 | 373,409 |
Information on staff and remu_9
Information on staff and remuneration - Determination of fair value of the warrants granted (Details) - item | Apr. 15, 2020 | Apr. 19, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Information on staff and remuneration | ||||||
Spread on closing price of shares on Nasdaq Copenhagen (as a percent) | 10.00% | |||||
Expiration period of warrants | 5 years | 10 years | ||||
Vested period of warrants | 3 years | |||||
Percentage of warrants vesting per month from the date of grant | 0.028% | |||||
Percentage of warrants vesting after one year from the date of grant | 0.33% | |||||
Percentage of warrants vesting after two year from the date of grant | 0.33% | |||||
Percentage of warrants vesting after three year from the date of grant | 0.33% | |||||
Frequency of exercises of warrants | 4 | |||||
Period for calculating the volatility rate | 5 years | |||||
Vesting period for calculating the volatility rate | 3 years | |||||
Percentage of exercise period for calculating the volatility | 50.00% | |||||
Exercise period for calculating the volatility | 7 years | 2 years |
Information on staff and rem_10
Information on staff and remuneration - Fair Value of the warrants Compensation (Details) | 12 Months Ended | |||||
Dec. 31, 2021DKK (kr)kr / shares | Dec. 31, 2021DKK (kr)$ / shares | Dec. 31, 2020DKK (kr)kr / shares | Dec. 31, 2020DKK (kr)$ / shares | Dec. 31, 2019DKK (kr)kr / shares | Dec. 31, 2019DKK (kr)$ / shares | |
RSUs | ||||||
Disclosure of Information on staff and remuneration | ||||||
Term (months) | 36 months | 36 months | 36 months | 36 months | ||
Share price at grant date | (per share) | kr 207.6 | $ 131.2 | kr 224.4 | $ 216.8 | ||
Granted during the year | kr | 507,461 | 507,461 | 21,602 | 21,602 | ||
RSUs | Minimum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Options, Exercise price | kr 0 | kr 0 | ||||
Cost price | 131.2 | 216.8 | ||||
RSUs | Maximum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Cost price | kr 207.6 | kr 224.4 | ||||
PSUs | ||||||
Disclosure of Information on staff and remuneration | ||||||
Term (months) | 36 months | 36 months | 36 months | 36 months | ||
Share price at grant date | (per share) | kr 191.6 | $ 185.9 | $ 138.6 | |||
Granted during the year | kr | 282,852 | 282,852 | 22,915 | 22,915 | ||
Cost price | kr 138.6 | |||||
PSUs | Minimum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Options, Exercise price | kr 0 | kr 0 | ||||
Cost price | 185.9 | |||||
PSUs | Maximum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Cost price | kr 191.6 | |||||
Warrants | ||||||
Disclosure of Information on staff and remuneration | ||||||
Term (months) | Up to 78 months | Up to 78 months | Up to 48 months | Up to 48 months | ||
Granted during the year | kr | 631,288 | 631,288 | 641,029 | 641,029 | ||
Warrants | Minimum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Weighted average share price | kr 216.8 | kr 127 | ||||
Options, Exercise price | kr 224.1 | kr 127 | ||||
Volatility | 44.68% | 44.68% | 41.90% | 41.90% | ||
Risk-free interest rate | (0.31%) | (0.31%) | (0.45%) | (0.45%) | ||
Cost price | kr 48.4 | kr 41.9 | ||||
Warrants | Maximum | ||||||
Disclosure of Information on staff and remuneration | ||||||
Weighted average share price | kr 224.4 | 220 | ||||
Options, Exercise price | kr 220 | |||||
Volatility | 46.45% | 46.45% | 43.50% | 43.50% | ||
Risk-free interest rate | (0.41%) | (0.41%) | (0.63%) | (0.63%) | ||
Cost price | kr 95.4 | kr 69.5 |
Other operating income and ex_3
Other operating income and expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other operating income and expenses | |||
Government grants | kr 759 | kr 602 | kr 444 |
Gain from Bargain Purchase, cf, note 31 | 0 | 36,395 | 0 |
Loss on retirement of fixed assets | (2,173) | 0 | 0 |
Total other operating income | 759 | 36,997 | 444 |
Total other operating expenses | kr (2,173) | kr 0 | kr 0 |
Financial income (Details)
Financial income (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial income | |||
Interest income from financial assets measured at amortized costs | kr 44 | kr 895 | kr 5,413 |
Fair value adjustments of marketable securities, cf. note 22 | 1,852 | 0 | 837 |
Fair value adjustments of other investments, cf. note 16 | 0 | 936 | 2,009 |
Exchange rate adjustments (primarily on USD deposits) | 39,315 | 0 | 5,518 |
Dividend, Marketable securities | 0 | 191 | 878 |
Total financial income | kr 41,211 | kr 2,022 | kr 14,655 |
Financial expenses (Details)
Financial expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial expenses | |||
Interest expenses | kr (4,091) | kr (2,895) | kr (3,205) |
Fair value adjustments of marketable securities, cf. note 21 | 0 | (2,103) | 0 |
Fair value adjustments of other investments, cf. note 16 | (8,217) | 0 | 0 |
Other financial expenses | (3,473) | (4,829) | (185) |
Exchange rate adjustments (primarily on USD deposits) | 0 | (39,487) | 0 |
Total financial expenses | kr (15,781) | kr (49,314) | kr (3,390) |
Income tax (Details)
Income tax (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax | |||
Skattekreditordningen R&D tax credit, maximum | kr 25 | ||
Tax value of research and development expenses | kr 5.5 | kr 5.5 | kr 5.5 |
Income tax - Reconciliation of
Income tax - Reconciliation of income tax (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax | |||
Net result for the year before tax | kr (1,026,940) | kr (839,653) | kr (576,677) |
Corporate tax rate in Denmark | 22.00% | 22.00% | 22.00% |
Expected tax benefit/(expenses) | kr (225,927) | kr 184,724 | kr 126,869 |
Adjustment for foreign tax rates | 461 | (769) | 0 |
Adjustment for non-deductible expenses | 888 | 1,927 | (947) |
Adjustment for non-taxable income | 0 | (6,844) | 964 |
Adjustment for warrants | 11,573 | 2,387 | 8,664 |
Adjustment for R&D extra deduction | (14,379) | (8,811) | 1,676 |
Adjustment to prior year | (12,602) | 931 | 0 |
Change in tax assets (not recognized) | 231,196 | (180,621) | (132,090) |
Total income tax expense/benefit | kr 8,791 | kr (7,076) | kr 5,136 |
Income tax - Specification of d
Income tax - Specification of deferred tax assets (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Specification of deferred tax assets: | |||
Tax losses carried forward (available indefinitely) | kr 2,231,049 | kr 1,281,505 | kr 681,531 |
Research and development expenses | 842,775 | 732,389 | 460,007 |
Intangible assets | 51,154 | 40,373 | 35,849 |
Non-current assets | 89,414 | 66,419 | 51,677 |
Liabilities | 126,174 | 188,787 | 139,890 |
Other | 55,075 | 58,483 | 70,306 |
Total temporary differences | 3,395,641 | 2,365,956 | 1,439,260 |
Calculated potential deferred tax asset at local tax rate | 749,198 | 514,239 | 316,637 |
Deferred tax asset not expected to be utilized | (735,673) | (505,869) | (316,637) |
Recognized deferred tax asset | kr 13,525 | kr 8,370 | kr 0 |
Basic and diluted earnings pe_3
Basic and diluted earnings per share (Details) kr / shares in Units, kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021DKK (kr)EquityInstrumentskr / sharesshares | Dec. 31, 2020DKK (kr)EquityInstrumentskr / sharesshares | Dec. 31, 2019DKK (kr)EquityInstrumentskr / sharesshares | |
Basic and diluted result per share | |||
Net result for the year | kr | kr (1,018,149) | kr (846,729) | kr (571,541) |
et result used in the calculation of basic and diluted earnings/losses per share | kr | kr (1,018,149) | kr (846,729) | kr (571,541) |
Weighted average number of ordinary shares | shares | 43,192,383 | 38,433,923 | 33,866,709 |
Weighted average number of treasury shares | shares | (322,988) | (64,223) | (64,223) |
Weighted average number of ordinary shares used in the calculation of basic earnings per share | shares | 42,869,395 | 38,369,700 | 33,802,486 |
Weighted average number of ordinary shares used in the calculation of diluted earnings per share | shares | 42,869,395 | 38,369,700 | 33,802,486 |
Basic earnings/loss per share (DKK) | kr / shares | kr (23.75) | kr (22.07) | kr (16.91) |
Diluted earnings/loss per share (DKK) | kr / shares | kr (23.75) | kr (22.07) | kr (16.91) |
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 2,209,044 | 2,019,368 | 1,709,912 |
Out of which these are dilutive | shares | 0 | 0 | 0 |
Out of which these are anti-dilutive | shares | 2,209,044 | 2,019,368 | 1,709,912 |
2010 employee incentive program | |||
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 0 | 0 | 42,359 |
2015 employee incentive programs | |||
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 1,413,977 | 1,908,920 | 1,647,788 |
Outstanding Restricted Share Units (RSUs) under the LTIP programs | |||
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 460,089 | 27,466 | 0 |
Outstanding Performance Share Units (PSUs) under the LTIP program | |||
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 271,761 | 19,765 | 19,765 |
Outstanding warrants under the 2020 employee incentive program | |||
Potential ordinary shares excluded or included due to anti-dilutive effect | |||
Total outstanding warrants | EquityInstruments | 63,217 | 63,217 | 0 |
Intangible assets - Amortizatio
Intangible assets - Amortization periods of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Intellectual Property | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization period | 10 years |
Physician relationship | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization period | 8 years |
Intangible assets - Changes (De
Intangible assets - Changes (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | kr (57,485) | |
Balance at the end | kr (53,790) | kr (57,485) |
Remaining amortization period | 6 years 3 months | 7 years 3 months |
Licenses, rights and patents | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | kr (2,530) | |
Balance at the end | (2,530) | kr (2,530) |
Amortization and impairment for the financial year | 0 | |
Licenses, rights and patents | Research and development expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Licenses, rights and patents | Administrative expense. | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Licenses, rights and patents | Sale and marketing expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | 0 |
Licenses, rights and patents | Carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (2,530) | (2,480) |
Additions due to business combinations | 0 | |
Additions | 0 | 0 |
Currency translation | 0 | 50 |
Balance at the end | (2,530) | (2,530) |
Licenses, rights and patents | Accumulated depreciation amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 0 | 0 |
Amortization for the year | 0 | 0 |
Impairment, cf note 17 | 0 | |
Currency translation | 0 | 0 |
Balance at the end | 0 | 0 |
Amortization and impairment for the financial year | 0 | |
Intellectual Property | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 0 | |
Balance at the end | 0 | 0 |
Amortization and impairment for the financial year | 0 | |
Intellectual Property | Research and development expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Intellectual Property | Administrative expense. | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Intellectual Property | Sale and marketing expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | 13,692 |
Intellectual Property | Carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (13,692) | 0 |
Additions due to business combinations | 13,692 | |
Additions | 0 | 0 |
Currency translation | 0 | 0 |
Balance at the end | (13,692) | (13,692) |
Intellectual Property | Accumulated depreciation amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 13,692 | 0 |
Amortization for the year | 0 | 957 |
Impairment, cf note 17 | (12,735) | |
Currency translation | 0 | 0 |
Balance at the end | 13,692 | 13,692 |
Amortization and impairment for the financial year | 13,692 | |
Physician relationship | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (54,955) | |
Balance at the end | (51,260) | (54,955) |
Amortization and impairment for the financial year | 7,859 | |
Physician relationship | Research and development expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Physician relationship | Administrative expense. | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 0 | |
Physician relationship | Sale and marketing expenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Amortization and impairment for the financial year | 7,859 | 5,901 |
Physician relationship | Carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (60,576) | 0 |
Additions due to business combinations | 68,459 | |
Additions | 0 | 0 |
Currency translation | 5,037 | (7,883) |
Balance at the end | (65,613) | (60,576) |
Physician relationship | Accumulated depreciation amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 5,621 | 0 |
Amortization for the year | 7,859 | 5,901 |
Impairment, cf note 17 | 0 | |
Currency translation | 873 | (280) |
Balance at the end | kr 14,353 | 5,621 |
Amortization and impairment for the financial year | kr 5,901 |
Property, plant and equipment_2
Property, plant and equipment (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | |||
Impairment loss | kr 0 | kr 0 | kr 0 |
Changes in property, plant and equipment | |||
Beginning of period | 85,040 | ||
End of period | kr 86,454 | 85,040 | |
Buildings | Minimum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 5 years | ||
Buildings | Maximum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 13 years | ||
Plant and machinery | |||
Changes in property, plant and equipment | |||
Beginning of period | kr 41,911 | ||
Depreciation for the year | 11,558 | 4,974 | |
End of period | 36,581 | 41,911 | |
Depreciation for the financial year has been charged as: | |||
Research and development expenses | (7,151) | (4,128) | |
Sale and marketing expenses | (3,621) | (846) | |
Administrative expenses | (786) | 0 | |
Total | kr (11,558) | (4,974) | |
Plant and machinery | Minimum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 5 years | ||
Plant and machinery | Maximum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 10 years | ||
Plant and machinery | Carrying amount | |||
Changes in property, plant and equipment | |||
Beginning of period | kr 85,898 | 57,153 | |
Transfer | 949 | 0 | |
Addition from business combinations | 33,875 | ||
Additions | 7,118 | 8,479 | |
Retirement | (3,169) | (5,935) | |
Currency translation | 1 | (7,674) | |
End of period | 90,797 | 85,898 | 57,153 |
Plant and machinery | Accumulated depreciation | |||
Changes in property, plant and equipment | |||
Beginning of period | (43,987) | (43,696) | |
Transfer | 0 | 0 | |
Depreciation for the year | 11,558 | 4,974 | |
Retirement | 1,330 | 4,304 | |
Currency translation | 1 | (379) | |
End of period | (54,216) | (43,987) | (43,696) |
Depreciation for the financial year has been charged as: | |||
Total | kr (11,558) | (4,974) | |
Other fixtures and fittings, tools and equipment | Minimum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 3 years | ||
Other fixtures and fittings, tools and equipment | Maximum | |||
Property, plant and equipment | |||
Useful lives of asset (in years) | 5 years | ||
Office fixtures and fittings | |||
Changes in property, plant and equipment | |||
Beginning of period | kr 8,337 | ||
Depreciation for the year | 3,461 | 2,301 | |
End of period | 6,595 | 8,337 | |
Depreciation for the financial year has been charged as: | |||
Research and development expenses | (121) | (1,378) | |
Sale and marketing expenses | (2,568) | (282) | |
Administrative expenses | (680) | (640) | |
Total | (3,461) | (2,301) | |
Office fixtures and fittings | Carrying amount | |||
Changes in property, plant and equipment | |||
Beginning of period | 15,279 | 12,501 | |
Transfer | 664 | 0 | |
Addition from business combinations | 2,572 | ||
Additions | 1,444 | 1,566 | |
Retirement | (1,630) | (985) | |
Currency translation | 78 | (375) | |
End of period | 15,835 | 15,279 | 12,501 |
Office fixtures and fittings | Accumulated depreciation | |||
Changes in property, plant and equipment | |||
Beginning of period | (6,942) | (4,164) | |
Transfer | 0 | 0 | |
Depreciation for the year | 3,461 | 2,301 | |
Retirement | 1,203 | 985 | |
Currency translation | 40 | 1,462 | |
End of period | (9,240) | (6,942) | (4,164) |
Depreciation for the financial year has been charged as: | |||
Total | (3,461) | (2,301) | |
Building improvements | |||
Changes in property, plant and equipment | |||
Beginning of period | 31,769 | ||
Depreciation for the year | 3,128 | 2,301 | |
End of period | 31,166 | 31,769 | |
Depreciation for the financial year has been charged as: | |||
Research and development expenses | 0 | (1,910) | |
Sale and marketing expenses | (2,715) | (391) | |
Administrative expenses | (413) | 0 | |
Total | (3,128) | (2,301) | |
Building improvements | Carrying amount | |||
Changes in property, plant and equipment | |||
Beginning of period | 34,104 | 13,773 | |
Transfer | 0 | 13,796 | |
Addition from business combinations | 1,707 | ||
Additions | 2,449 | 14,889 | |
Retirement | (84) | (9,856) | |
Currency translation | 131 | (205) | |
End of period | 36,600 | 34,104 | 13,773 |
Building improvements | Accumulated depreciation | |||
Changes in property, plant and equipment | |||
Beginning of period | (2,335) | (9,860) | |
Transfer | 0 | 0 | |
Depreciation for the year | 3,128 | 2,301 | |
Retirement | 73 | 9,804 | |
Currency translation | 44 | (22) | |
End of period | (5,434) | (2,335) | (9,860) |
Depreciation for the financial year has been charged as: | |||
Total | (3,128) | (2,301) | |
Assets under construction | |||
Changes in property, plant and equipment | |||
Beginning of period | 3,023 | ||
Depreciation for the year | 0 | 0 | |
End of period | 12,112 | 3,023 | |
Depreciation for the financial year has been charged as: | |||
Research and development expenses | 0 | 0 | |
Sale and marketing expenses | 0 | 0 | |
Administrative expenses | 0 | 0 | |
Total | 0 | 0 | |
Assets under construction | Carrying amount | |||
Changes in property, plant and equipment | |||
Beginning of period | 3,023 | 14,001 | |
Transfer | (1,613) | (13,796) | |
Addition from business combinations | 2,984 | ||
Additions | 11,122 | 109 | |
Retirement | (419) | 0 | |
Currency translation | (1) | (275) | |
End of period | 12,112 | 3,023 | 14,001 |
Assets under construction | Accumulated depreciation | |||
Changes in property, plant and equipment | |||
Beginning of period | 0 | 0 | |
Transfer | 0 | 0 | |
Depreciation for the year | 0 | 0 | |
Retirement | 0 | 0 | |
Currency translation | 0 | 0 | |
End of period | 0 | 0 | kr 0 |
Depreciation for the financial year has been charged as: | |||
Total | kr 0 | kr 0 |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Minimum period for rental contract | 13 years |
Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Minimum period for rental contract | 16 years |
Buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Terminable period for rental contract | 15 years |
Equipment and vehicles | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Extension option | false |
Equipment and vehicles | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Minimum period for rental contract | 3 years |
Equipment and vehicles | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Minimum period for rental contract | 4 years |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities - Amounts recognized in the statement of financial position (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Right of use assets and lease liabilities | ||
Right of use assets, beginning balance | kr 127,998 | |
Depreciation expense | (14,243) | kr (13,524) |
Right of use assets, ending balance | 134,994 | 127,998 |
Lease liabilities, beginning balance | 130,119 | 85,760 |
Additions due to business combinations, cf note 31 | 0 | 14,046 |
Additions | 20,189 | 43,151 |
Accretion of interest | 2,953 | 2,763 |
Payments | (14,715) | (14,098) |
Currency translation | 977 | (1,503) |
Lease liabilities, ending balance | 139,523 | 130,119 |
Current | 14,897 | 14,072 |
Non-current | 124,626 | 116,047 |
The following are the amounts recognized in income statement: | ||
Depreciation expense of right-of-use assets | 14,243 | 13,524 |
Interest expense on lease liabilities | (2,953) | (2,763) |
Total amount recognized in profit and loss | (17,196) | (16,287) |
Cashflow | (14,715) | (14,098) |
Depreciation for the financial year has been charged as: | ||
Research and development expenses | (11,732) | (10,001) |
Sale and marketing expenses | 0 | 0 |
Administrative expenses | (2,511) | (3,523) |
Total | (14,243) | (13,524) |
Buildings | ||
Right of use assets and lease liabilities | ||
Right of use assets, beginning balance | 126,821 | 84,148 |
Additions due to business combination, cf note 31 | 14,299 | |
Additions | 18,677 | 42,725 |
Retirements | (6,035) | |
Reversal of depreciations | 6,035 | |
Depreciation expense | (13,177) | (12,779) |
Currency translation | 1,050 | (1,572) |
Right of use assets, ending balance | 133,371 | 126,821 |
The following are the amounts recognized in income statement: | ||
Depreciation expense of right-of-use assets | 13,177 | 12,779 |
Depreciation for the financial year has been charged as: | ||
Total | (13,177) | (12,779) |
Office fixtures and fittings | ||
Right of use assets and lease liabilities | ||
Right of use assets, beginning balance | 1,177 | 1,484 |
Additions due to business combination, cf note 31 | 0 | |
Additions | 1,512 | 581 |
Retirements | (144) | |
Reversal of depreciations | 0 | |
Depreciation expense | (1,066) | (744) |
Currency translation | 0 | 0 |
Right of use assets, ending balance | 1,623 | 1,177 |
The following are the amounts recognized in income statement: | ||
Depreciation expense of right-of-use assets | 1,066 | 744 |
Depreciation for the financial year has been charged as: | ||
Total | kr (1,066) | kr (744) |
Other investments - Summary of
Other investments - Summary of other investments (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other investments | |||
Other investments at the beginning | kr 32,333 | kr 35,557 | kr 32,582 |
Fair value adjustments | (8,217) | 69 | 2,193 |
Currency adjustments | 2,791 | (3,293) | 782 |
Other investments at the end | kr 26,907 | kr 32,333 | kr 35,557 |
Other investments - Additional
Other investments - Additional Information (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other investments | ||
Ownership interest, beta (as a percent) | 1.60% | 1.60% |
Fair value of other investments | kr 26.9 | kr 32.3 |
Impairment (Details)
Impairment (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | kr 0 | kr 0 | kr 0 |
V-Go | Intellectual Property | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss | kr 12,700 | kr 12,700 | |
Terminal growth rate | 50.00% | ||
Pre-tax discount rate | 13.00% |
Inventories (Details)
Inventories (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | ||
Raw materials | kr 35,816 | kr 14,398 |
Work in progress | 29,588 | 13,723 |
Finished goods | 53,032 | 36,919 |
Total | 118,436 | 65,040 |
Direct costs | 85,270 | 48,224 |
Indirect production costs | kr 33,166 | kr 16,816 |
Inventories - Write downs recog
Inventories - Write downs recognized on inventories (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | ||
Accumulated write downs, January 1 | kr (6,948) | kr 0 |
Addition from business combination, cf. 31 | 0 | (11,294) |
Write downs in the reporting period | (10,766) | (486) |
Utilization of write downs | 12,641 | 3,860 |
Reversal of write downs | 0 | 0 |
Exchange differences | (119) | 0 |
Accumulated write downs, December 31 | kr (5,192) | kr (6,948) |
Trade receivables (Details)
Trade receivables (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade receivables | ||
Overdue trade receivables | kr 0 | |
Trade Receivables Related To Milestone Payments | kr 0 | kr 0 |
Prepaid expenses (Details)
Prepaid expenses (Details) kr in Millions | Dec. 31, 2021DKK (kr) |
Prepaid expenses | |
Prepaid expense | kr 32.8 |
Other receivables (Details)
Other receivables (Details) - DKK (kr) kr in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other receivables. | ||
VAT | kr 10,682 | kr 3,887 |
Other | 5,120 | 6,055 |
Total other receivables | kr 15,802 | kr 9,942 |
Marketable securities (Details)
Marketable securities (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Marketable securities | |||
Net fair value adjustment from marketable securities | kr 1,900 | kr (2,100) | kr 800 |
Finance income | 41,211 | 2,022 | 14,655 |
Financial expenses paid | kr 15,781 | kr 49,314 | kr 3,390 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) kr in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021DKK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | |
Cash and cash equivalents | ||||||
Total cash and cash equivalents | kr 1,129,103 | kr 960,221 | kr 1,081,060 | kr 860,635 | ||
Proceeds from loans | $ | $ 100 | |||||
Minimum cash balance to be retained | $ | $ 100 | |||||
DKK | ||||||
Cash and cash equivalents | ||||||
Total cash and cash equivalents | 11,336 | 286,222 | ||||
USD | ||||||
Cash and cash equivalents | ||||||
Total cash and cash equivalents | 1,098,160 | 568,444 | ||||
EUR | ||||||
Cash and cash equivalents | ||||||
Total cash and cash equivalents | kr 19,607 | kr 105,555 |
Share capital - (Details)
Share capital - (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share reconciliation | ||
Balance at the beginning | 39,800 | 36,055 |
Increase due to issue of new shares | 3,834 | 3,745 |
Balance at the end | 43,634 | 39,800 |
Share capital - Additional info
Share capital - Additional information (Details) | Feb. 01, 2021DKK (kr)shares | Jun. 22, 2020DKK (kr)shares | Apr. 02, 2020DKK (kr) | Mar. 26, 2020DKK (kr)shares | Dec. 31, 2021DKK (kr)EquityInstrumentsshares | Dec. 31, 2021DKK (kr)EquityInstrumentsshares | Dec. 31, 2020DKK (kr)EquityInstrumentsshares | Dec. 31, 2019DKK (kr)EquityInstruments |
Share capital | ||||||||
Increase in authorized share capital | kr 9,013,665 | |||||||
Remaining authorized share capital | kr 1,986,547 | kr 1,986,547 | ||||||
Number of shares issued | shares | 3,600,841 | 2,684,461 | 741,816 | 233.595 | ||||
Proceeds from issuance of shares | kr 745,400,000 | kr 655,000,000 | kr 136,500,000 | 748,975,000 | kr 791,503,000 | kr 645,145,000 | ||
Issuance costs | kr 42,700,000 | kr 46,896,000 | kr 42,706,000 | kr 14,444,000 | ||||
Number of treasury shares | shares | 418,247 | 418,247 | 64,223 | |||||
Treasury shares held (as a percent) | 1.00% | 0.20% | ||||||
Fair value of treasury shares | kr 60,700,000 | kr 60,700,000 | kr 14,100,000 | |||||
Total outstanding warrants | EquityInstruments | 2,209,044 | 2,209,044 | 2,019,368 | 1,709,912 | ||||
Proceeds from exercise of warrants | kr 26,100,000 |
Borrowings - Loan terms (Detail
Borrowings - Loan terms (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)item | |
Disclosure of detailed information about borrowings [line items] | |
Proceeds from loans | $ 100 |
Loan | |
Disclosure of detailed information about borrowings [line items] | |
Number of tranches | item | 3 |
Loan | Tranche 1 | |
Disclosure of detailed information about borrowings [line items] | |
Proceeds from loans | $ 100 |
Amount to be drawn | 100 |
Loan | Tranche 2 | |
Disclosure of detailed information about borrowings [line items] | |
Amount to be drawn | 50 |
Loan | Tranche 3 | |
Disclosure of detailed information about borrowings [line items] | |
Amount to be drawn | $ 50 |
Borrowings - Repayment profile
Borrowings - Repayment profile (Details) kr in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021DKK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | |
Disclosure of detailed information about borrowings [line items] | ||||
Revenue | kr | kr 292,567 | kr 353,314 | kr 41,333 | |
Loan | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Credit spread fixed over term of contract | 6.00% | 6.00% | ||
Percentage of consolidated revenue | 2.67% | 2.67% | ||
Internal rate of return | 9.75% | 9.75% | ||
Maximum percentage of outstanding amount that can be repaid from proceeds | 75.00% | 75.00% | ||
Loan | Tranche 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Revenue | $ 75 | |||
Loan | Tranche 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Percentage of consolidated revenue | 4.00% | 4.00% | ||
Revenue | $ 75 | |||
Libor | Loan | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Floor rate | 0.25% | 0.25% |
Borrowings - Early repayment am
Borrowings - Early repayment amount (Details) - Loan | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | |
Internal rate of return | 9.75% |
Before January 1, 2023 | |
Disclosure of detailed information about borrowings [line items] | |
Early repayment amount based on percentage of principal amount of notes issued | 120.00% |
From January 1, 2023 until January 1,2024 | |
Disclosure of detailed information about borrowings [line items] | |
Early repayment amount based on percentage of principal amount of notes issued | 135.00% |
From January 1, 2024 until January 1,2026 | |
Disclosure of detailed information about borrowings [line items] | |
Early repayment amount based on percentage of principal amount of notes issued | 150.00% |
From January 1, 2026 until January 1,2027 | |
Disclosure of detailed information about borrowings [line items] | |
Early repayment amount based on percentage of principal amount of notes issued | 150.00% |
Internal rate of return | 12.00% |
From January 1, 2027 until December 31,2028 | |
Disclosure of detailed information about borrowings [line items] | |
Early repayment amount based on percentage of principal amount of notes issued | 150.00% |
Internal rate of return | 11.00% |
Borrowings - Liquidity covenant
Borrowings - Liquidity covenant (Details) - 12 months ended Dec. 31, 2021 kr in Millions, $ in Millions | USD ($) | DKK (kr) |
Disclosure of detailed information about borrowings [line items] | ||
Minimum cash balance to be retained | $ 100 | |
"Oberland" | 100 | |
Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Minimum cash balance to be retained | $ 100 | kr 656 |
Term to maintain minimum cash balance | 6 months | |
Net revenue covenant | $ 50 | |
Transaction costs | kr | 8.2 | |
"Oberland" | kr | kr 647.9 |
Borrowings (Details)
Borrowings (Details) - Loan kr in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021DKK (kr) |
Disclosure of detailed information about borrowings [line items] | ||
Internal rate of return | 9.75% | 9.75% |
Nominal amount | $ 100 | kr 656 |
Deferred revenue (Details)
Deferred revenue (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred revenue | |||
Deferred revenues at January 1 | kr 97,769 | kr 139,890 | |
Customer payment received, cf. note 3 | 0 | 0 | |
Revenue recognized during the year | (30,185) | (42,881) | |
Total deferred revenue | 67,584 | 97,769 | kr 139,890 |
Non-current deferred revenue | 14,551 | 44,587 | |
Current deferred revenue | 53,033 | 53,182 | |
Contract liabilities at end of period | 67,584 | 97,769 | 139,890 |
Upfront non refundable payment recognized | 292,567 | 353,314 | 41,333 |
Expected | |||
Deferred revenue | |||
Milestone payments Recognized for the period | 53,000 | ||
Alexion | |||
Deferred revenue | |||
Upfront non-refundable payment received | 177,300 | ||
Upfront non refundable payment recognized | kr 30,200 | kr 42,900 | kr 37,400 |
Rebate and product return lia_3
Rebate and product return liabilities (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Provision at the beginning of the year | kr 36,673 | kr 0 |
Addition due to acquisition cf note 29 | 0 | 6,969 |
Adjustments for the year | 158,033 | 137,321 |
Utilization during the period | (168,600) | (103,766) |
Reversal of provisions from previous years | 0 | (1,184) |
Currency translation adjustments | 2,589 | (2,668) |
Provision at year-end | 28,695 | 36,673 |
Sale rebates liabilities | ||
Disclosure of other provisions [line items] | ||
Provision at the beginning of the year | 36,434 | |
Addition due to acquisition cf note 29 | 0 | |
Adjustments for the year | 155,910 | |
Utilization during the period | (167,045) | |
Reversal of provisions from previous years | 0 | |
Currency translation adjustments | 2,544 | |
Provision at year-end | 27,843 | 36,434 |
Provision return liabilities | ||
Disclosure of other provisions [line items] | ||
Provision at the beginning of the year | 239 | |
Addition due to acquisition cf note 29 | 0 | |
Adjustments for the year | 2,124 | |
Utilization during the period | (1,555) | |
Reversal of provisions from previous years | 0 | |
Currency translation adjustments | 45 | |
Provision at year-end | kr 852 | kr 239 |
Other liabilities (Details)
Other liabilities (Details) - DKK (kr) kr in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other liabilities.. | ||
Employee benefits | kr 84,800 | kr 101,028 |
Royalty payable to third party | 5,860 | 5,732 |
Development project costs | 18,736 | 28,267 |
Other payables | 82,164 | 32,272 |
Total other liabilities | 191,560 | 167,299 |
Current | 173,134 | 150,555 |
Non-current | kr 18,426 | kr 16,744 |
Contingent assets and liabili_2
Contingent assets and liabilities, other contractual obligations and collateral provided (Details) - Dec. 31, 2021 kr in Millions, $ in Millions | USD ($) | DKK (kr) |
Contractual obligations: | ||
Contractual obligations | kr 317.4 | |
With in 1 year | ||
Contractual obligations: | ||
Contractual obligations | 184.4 | |
Later than two year but not later than three years | ||
Contractual obligations: | ||
Contractual obligations | kr 133 | |
Sanofi | ||
Contractual obligations: | ||
Estimated effect of potential milestone | $ | $ 10 | |
Sanofi | With in 1 year | ||
Contractual obligations: | ||
Estimated effect of potential milestone | $ | $ 10 |
Financial risks (Details)
Financial risks (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial risks | |||
Cash | kr 862,900 | kr 568,400 | |
Average weighted duration of the bond portfolio | 3 years | 3 years | |
Leasing | kr 139,523 | kr 130,119 | kr 85,760 |
USD. | |||
Financial risks | |||
Cash | 656,100 | ||
Effect | kr 20,675 | kr 58,124 | |
Percentage of reasonably possible increase | 10.00% | 10.00% | |
Percentage of reasonably possible decrease | 10.00% | 10.00% | |
Interest rate | |||
Financial risks | |||
Cash | kr 656,100 | kr 0 | |
Leasing | kr 139,500 | kr 130,100 |
Financial risks - Contractual m
Financial risks - Contractual maturity (Liquidity risk) (Details) - DKK (kr) kr in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual maturity (Liquidity risk) | |||
Trade payables | kr 64,558 | kr 70,384 | |
Leasing | 139,523 | 130,119 | kr 85,760 |
Other liabilities | 173,134 | 150,555 | |
Liquidity risk | |||
Contractual maturity (Liquidity risk) | |||
Borrowings | 1,039,406 | ||
Trade payables | 64,558 | 71,442 | |
Leasing | 152,581 | 146,465 | |
Other liabilities | 191,560 | 167,299 | |
Total financial liabilities | 1,448,105 | 382,209 | |
Liquidity risk | Less than 12 months | |||
Contractual maturity (Liquidity risk) | |||
Borrowings | 50,954 | ||
Trade payables | 64,558 | 71,442 | |
Leasing | 14,608 | 14,072 | |
Other liabilities | 173,134 | 150,555 | |
Total financial liabilities | 303,254 | 236,069 | |
Liquidity risk | 1 to 5 years | |||
Contractual maturity (Liquidity risk) | |||
Borrowings | 252,042 | ||
Trade payables | 0 | 0 | |
Leasing | 62,558 | 53,039 | |
Other liabilities | 0 | 16,744 | |
Total financial liabilities | 314,600 | 69,783 | |
Liquidity risk | After 5 years | |||
Contractual maturity (Liquidity risk) | |||
Borrowings | 736,410 | ||
Trade payables | 0 | 0 | |
Leasing | 75,415 | 76,354 | |
Other liabilities | 18,426 | 0 | |
Total financial liabilities | kr 830,251 | kr 76,354 |
Financial risks - Fair value me
Financial risks - Fair value measurement of financial instruments (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Categories of financial instruments | ||
Financial assets at amortized cost | kr 1,230,568 | kr 1,033,297 |
Financial assets measured at fair value through profit or loss | 325,949 | 329,678 |
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 1,043,547 | 367,802 |
Transfer out of level 1 to level 2, Assets | 0 | 0 |
Transfer out of level 2 to level 1, Assets | 0 | 0 |
Transfer out of level 1 to level 2, Liabilities | 0 | 0 |
Transfer out of level 2 to level 1, Liabilities | 0 | 0 |
Transfer into Level 3, Assets | 0 | 0 |
Transfer into Level 3, Liabilities | 0 | 0 |
Transfer out of level 3, Assets | 0 | 0 |
Transfer out of level 3, Liabilities | 0 | 0 |
Borrowing | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 647,906 | 0 |
Lease liabilities. | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 139,523 | 130,119 |
Trade payables. | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 64,558 | 70,384 |
Other liabilities. | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 191,560 | 167,299 |
Deposits | ||
Categories of financial instruments | ||
Financial assets at amortized cost | 12,638 | 16,650 |
Trade receivables. | ||
Categories of financial instruments | ||
Financial assets at amortized cost | 73,025 | 46,484 |
Other receivables | ||
Categories of financial instruments | ||
Financial assets at amortized cost | 15,802 | 9,942 |
Cash and cash equivalents. | ||
Categories of financial instruments | ||
Financial assets at amortized cost | 1,129,103 | 960,221 |
Marketable securities. | ||
Categories of financial instruments | ||
Financial assets measured at fair value through profit or loss | 299,042 | 297,345 |
Other investments. | ||
Categories of financial instruments | ||
Financial assets measured at fair value through profit or loss | kr 26,907 | kr 32,333 |
Financial risks - Capital Manag
Financial risks - Capital Management (Details) kr in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021DKK (kr) | Dec. 31, 2021USD ($) | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Cash and cash equivalents | kr | kr 1,129,103 | kr 960,221 | kr 1,081,060 | kr 860,635 | ||
Proceeds from loans | $ 100 | |||||
Minimum cash balance to be retained | $ 100 | |||||
6 Months | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Minimum cash balance to be retained | 656,000 | $ 100 | ||||
Minimum | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Cash and cash equivalents | kr | kr 473,000 | |||||
Maximum | 6 Months | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Proceeds from loans | $ 50 |
Business combinations (Details)
Business combinations (Details) kr in Thousands, $ in Millions | Apr. 02, 2020DKK (kr) | Apr. 02, 2020USD ($) | Mar. 31, 2020DKK (kr) | Dec. 31, 2021DKK (kr) | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) |
Disclosure of detailed information about business combination [line items] | ||||||
Intangible assets other than goodwill | kr 53,790 | kr 57,485 | ||||
Bargain purchase | kr 0 | 36,395 | kr 0 | |||
Intellectual Property | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Amortization period | 10 years | |||||
Intangible assets other than goodwill | kr 0 | 0 | ||||
Physician relationship | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Amortization period | 8 years | |||||
Intangible assets other than goodwill | kr 51,260 | kr 54,955 | ||||
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Consideration transferred, acquisition-date fair value | kr 167,725 | |||||
Acquisition-related costs | $ | $ 24.5 | |||||
Unallocated intangible assets | 82,200 | |||||
Intangible assets other than goodwill | kr 68,500 | |||||
Cash flows of projections period | 10 years | 10 years | ||||
Growth rate | 13.00% | |||||
Discount rate | 50.00% | |||||
Budget period for revenue growth | 10 years | 10 years | ||||
Budget period for operating costs | 10 years | 10 years | ||||
Trade receivables | kr 50,603 | |||||
Bargain purchase | 36,692 | |||||
Net assets at fair value | 204,417 | |||||
Fair value of the tangible and financial assets acquired | 147,500 | |||||
Acquisition-related costs | kr 7,100 | |||||
Acquisition contributed with net revenues | 161,300 | |||||
Profit (loss) of acquiree | kr (278,800) | |||||
Pro forma revenue | 395,800 | |||||
Pro forma operating result | kr (868,900) | |||||
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Minimum | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Growth rate for revenue | 1.00% | |||||
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Maximum | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Growth rate for revenue | 20.00% | |||||
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Intellectual Property | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Intangible assets other than goodwill | kr 13,700 |
Business combinations - Identif
Business combinations - Identifiable assets and liabilities (Details) - DKK (kr) kr in Thousands | Apr. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Bargain purchase recognized | kr 0 | kr (36,395) | kr 0 | |
Net cash flow on acquisition | kr 0 | kr (167,791) | kr 0 | |
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Physician Relationship | kr 68,459 | |||
V-Go IP | 13,692 | |||
Property, plant and equipment | 41,138 | |||
Right-of-use assets | 14,299 | |||
Inventories | 55,796 | |||
Trade receivables | 50,603 | |||
Other assets | 10,132 | |||
Cash and cash equivalents | 66 | |||
Deferred tax liability | (11,880) | |||
Trade payables | (4,050) | |||
Lease liabilities | (14,046) | |||
Other liabilities | (19,792) | |||
Total identifiable net assets at fair value | 204,417 | |||
Bargain purchase recognized | (36,692) | |||
Purchase consideration transferred | 167,725 | |||
Net cash acquired (included in cash flows from investing activities) | 66 | |||
Net cash acquired (included in cash flows from investing activities) | 66 | |||
Cash paid | (167,725) | |||
Net cash flow on acquisition | kr 167,659 |
Related parties (Details)
Related parties (Details) | Dec. 31, 2021Voteitem |
Disclosure of transactions between related parties | |
Number of related parties with controlling interest | item | 0 |
Van Herk Investments, Rotterdam, Netherlands | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Credit Suisse Bank, Zrich, Switzerland | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
SMALLCAP World Fund, inc, Los Angeles, USA | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
The Capital Group Companies, Los Angeles, USA | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Adjustments for non-cash item_2
Adjustments for non-cash items (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustments for non-cash items | |||
Depreciation, amortization and impairment | kr 40,249 | kr 42,692 | kr 13,682 |
Share-based compensation expenses | 53,504 | 30,485 | 14,763 |
Income tax | (1,190) | 9,865 | (5,385) |
Financial income | (1,896) | (1,127) | (9,306) |
Financial expenses | 16,674 | 3,511 | 3,390 |
Net loss on sale of fixed assets | 2,697 | 0 | 0 |
Fair value adjustments | 6,520 | 0 | 0 |
Exchange rate adjustments | (68,943) | 57,712 | (7,937) |
Total adjustments | kr 47,615 | kr 143,138 | kr 9,207 |
Change in working capital (Deta
Change in working capital (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in working capital | |||
(Increase)/decrease in receivables | kr (64,494) | kr (7,716) | kr (21,059) |
(Increase)/decrease in Inventory | (52,772) | (14,404) | 0 |
Increase/(decrease) in payables and other liabilities | (49,059) | 119,938 | 17,061 |
Adjustment for non-cash investing activities | 0 | 0 | (7,932) |
Cash outflow for investment in Beta Bionics | 0 | 0 | 22,803 |
Change in working capital | kr (166,325) | kr 97,818 | kr 10,873 |
Reconciliation of borrowings (D
Reconciliation of borrowings (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of borrowings | |||
Balance at the beginning | kr 0 | kr 0 | kr 0 |
Additions | (656,120) | 0 | 0 |
Payments for debt issue costs | 8,214 | 0 | 0 |
Balance at the end | kr (647,906) | kr 0 | kr 0 |