Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | OBSV |
Entity Registrant Name | OBSEVA SA |
Entity Central Index Key | 0001685316 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity File Number | 001-37993 |
Entity Address, Address Line One | Chemin des Aulx, 12 |
Entity Address, Address Line Two | 1228 Plan-les-Ouates |
Entity Address, City or Town | Geneva |
Entity Address, State or Province | Switzerland |
Entity Common Stock, Shares Outstanding | 48,567,605 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 69,370 | $ 138,640 |
Other receivables | 1,044 | 885 |
Prepaid expenses | 4,359 | 5,715 |
Total current assets | 74,773 | 145,240 |
Non-current assets | ||
Right-of-use assets | 2,042 | |
Furniture, fixtures and equipment | 245 | 319 |
Intangible assets | 26,608 | 21,608 |
Other long-term assets | 275 | 273 |
Total non-current assets | 29,170 | 22,200 |
Total assets | 103,943 | 167,440 |
Current liabilities | ||
Other payables and current liabilities | 8,432 | 2,766 |
Accrued expenses | 10,418 | 14,163 |
Current lease liabilities | 618 | |
Total current liabilities | 19,468 | 16,929 |
Non-current liabilities | ||
Non-current lease liabilities | 1,541 | |
Non-current borrowings | 24,917 | |
Post-employment obligations | 7,946 | 3,547 |
Other long-term liabilities | 1,116 | 48 |
Total non-current liabilities | 35,520 | 3,595 |
Shareholders’ equity | ||
Share capital | 3,499 | 3,420 |
Share premium | 320,955 | 314,565 |
Reserves | 21,912 | 12,858 |
Accumulated losses | (297,411) | (183,927) |
Total shareholders’ equity | 48,955 | 146,916 |
Total liabilities and shareholders’ equity | $ 103,943 | $ 167,440 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Comprehensive Income [Abstract] | |||
Operating income other than revenue | $ 16 | $ 15 | $ 16 |
OPERATING EXPENSES | |||
Research and development expenses | (88,053) | (62,872) | (54,912) |
General and administrative expenses | (19,058) | (14,297) | (12,568) |
Total operating expenses | (107,111) | (77,169) | (67,480) |
OPERATING LOSS | (107,095) | (77,154) | (67,464) |
Finance income | 854 | 393 | 590 |
Finance expense | (2,482) | (1) | |
NET LOSS BEFORE TAX | (108,723) | (76,761) | (66,875) |
Income tax (expense) / benefit | (67) | 45 | (51) |
NET LOSS FOR THE YEAR | $ (108,790) | $ (76,716) | $ (66,926) |
Net loss per share | |||
Basic | $ (2.49) | $ (1.91) | $ (2.25) |
Diluted | $ (2.49) | $ (1.91) | $ (2.25) |
Items that will not be reclassified to profit and loss | |||
Remeasurements on post-employment benefit plans | $ (4,694) | $ (544) | $ (142) |
Items that may be reclassified to profit or loss | |||
TOTAL OTHER COMPREHENSIVE LOSS | (4,694) | (544) | (142) |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | $ (113,484) | $ (77,260) | $ (67,068) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Statement Of Cash Flows [Abstract] | |||
NET LOSS BEFORE TAX FOR THE YEAR | $ (108,723) | $ (76,761) | $ (66,875) |
Adjustments for: | |||
Depreciation expense | 737 | 109 | 70 |
Post-employment (benefit) / cost | (477) | (96) | 7 |
Share-based compensation expense | 11,884 | 9,152 | 8,856 |
Income tax paid | (80) | (11) | |
Finance expense / (income), net | 1,628 | (359) | (589) |
Decrease / (increase) in other receivables | 193 | (96) | |
Decrease / (increase) in prepaid expenses, deferred costs and other long term-assets | 1,356 | (4,225) | 721 |
Increase / (decrease) in other payables and current liabilities | 5,499 | (16) | 399 |
(Decrease) / increase in accrued expenses and other long-term liabilities | (2,628) | 8,362 | 1,696 |
NET CASH FLOWS USED IN OPERATING ACTIVITIES | (90,611) | (63,941) | (55,715) |
Cash used for rental deposits | (83) | (96) | |
Payments for plant and equipment | (46) | (188) | (189) |
Acquisition of a license | (5,000) | (5,000) | |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (5,046) | (271) | (5,285) |
Proceeds from issuance of shares | 3,206 | 97,861 | 156,786 |
Payment of share issuance costs | (119) | (6,881) | (11,042) |
Proceeds from exercise of stock-options | 193 | 672 | |
Proceeds from issuance of debt, net of issuance costs | 24,736 | ||
Principal elements of lease payments | (571) | ||
Interest paid | (818) | (1) | |
NET CASH FLOWS FROM FINANCING ACTIVITIES | 26,627 | 91,652 | 145,743 |
Net (decrease) / increase in cash and cash equivalents | (69,030) | 27,440 | 84,743 |
Cash and cash equivalents as at January 1, | 138,640 | 110,841 | 25,508 |
Effects of exchange rate changes on cash and cash equivalents | (240) | 359 | 590 |
Cash and cash equivalents as at December 31, | $ 69,370 | $ 138,640 | $ 110,841 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Share capital [Member] | Share premium [Member] | Share-based payments reserve [Member] | Foreign currency translation reserve [Member] | Total reserves [Member] | Accumulated losses [Member] |
Beginning Balance at Dec. 31, 2016 | $ 36,041 | $ 1,740 | $ 71,966 | $ 2,423 | $ (489) | $ 1,934 | $ (39,599) |
Loss for the year | (66,926) | 0 | 0 | 0 | 0 | 0 | (66,926) |
Other comprehensive loss | (142) | 0 | 0 | 0 | 0 | 0 | (142) |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | (67,068) | 0 | 0 | 0 | 0 | 0 | (67,068) |
Issuance of shares - IPO | 96,750 | 496 | 96,254 | 0 | 0 | 0 | 0 |
Issuance of shares - PIPE | 60,000 | 592 | 59,408 | 0 | 0 | 0 | 0 |
Issuance of shares - EIP 2013 | 36 | 36 | 3,671 | (3,671) | 0 | (3,671) | 0 |
Share issuance costs | (11,964) | 0 | (11,964) | 0 | 0 | 0 | 0 |
Share-based remuneration | 8,856 | 0 | 0 | 8,856 | 0 | 8,856 | 0 |
Ending Balance at Dec. 31, 2017 | 122,651 | 2,864 | 219,335 | 7,608 | (489) | 7,119 | (106,667) |
Loss for the year | (76,716) | 0 | 0 | 0 | 0 | 0 | (76,716) |
Other comprehensive loss | (544) | 0 | 0 | 0 | 0 | 0 | (544) |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | (77,260) | 0 | 0 | 0 | 0 | 0 | (77,260) |
Issuance of shares - EIP 2013 | 27 | 27 | 2,947 | (2,947) | 0 | (2,947) | 0 |
Issuance of shares - June 2018 offering | 77,823 | 392 | 77,431 | 0 | 0 | 0 | 0 |
Issuance of shares - ATM program | 20,011 | 130 | 19,881 | 0 | 0 | 0 | 0 |
Share issuance costs | (6,160) | 0 | (6,160) | 0 | 0 | 0 | 0 |
Exercise of stock-options - EIP 2017 | 672 | 7 | 1,131 | (466) | 0 | (466) | 0 |
Share-based remuneration | 9,152 | 0 | 0 | 9,152 | 0 | 9,152 | 0 |
Ending Balance at Dec. 31, 2018 | 146,916 | 3,420 | 314,565 | 13,347 | (489) | 12,858 | (183,927) |
Loss for the year | (108,790) | 0 | 0 | 0 | 0 | 0 | (108,790) |
Other comprehensive loss | (4,694) | 0 | 0 | 0 | 0 | 0 | (4,694) |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | (113,484) | 0 | 0 | 0 | 0 | 0 | (113,484) |
Issuance of shares - EIP 2013 | 21 | 21 | 2,696 | (2,696) | 0 | (2,696) | 0 |
Issuance of shares - ATM program | 3,554 | 56 | 3,498 | 0 | 0 | 0 | 0 |
Share issuance costs | (130) | 0 | (130) | 0 | 0 | 0 | 0 |
Exercise of stock-options - EIP 2017 | 194 | 2 | 326 | (134) | 0 | (134) | 0 |
Share-based remuneration | 11,884 | 0 | 0 | 11,884 | 0 | 11,884 | 0 |
Ending Balance at Dec. 31, 2019 | $ 48,955 | $ 3,499 | $ 320,955 | $ 22,401 | $ (489) | $ 21,912 | $ (297,411) |
General information
General information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of General Information About Financial Statements [Abstract] | |
General information | 1. General information ObsEva SA (the “Company”) was founded on November 14, 2012, and its address is 12 Chemin des Aulx, 1228 Plan-les-Ouates, Geneva, Switzerland. The terms “ObsEva” or “the Group” refer to ObsEva SA together with its subsidiaries included in the scope of consolidation (note 2.2). The Group is focused on the development and commercialization of novel therapeutics for serious conditions that compromise women’s reproductive health and pregnancy. The Group has a portfolio of three mid- to late-stage development in-licensed compounds (linzagolix, OBE022 and nolasiban) being developed in four indications. The Group has no currently marketed products. These consolidated financial statements are presented in dollars of the United States (USD), rounded to the nearest thousand, except share and per share data, and have been prepared on the basis of the accounting principles described in note 2. These consolidated financial statements were authorized for issue by the Company’s Board of Directors (the “Board of Directors”) on March 5, 2020. |
Accounting principles applied i
Accounting principles applied in the preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Accounting Policy [Abstract] | |
Accounting principles applied in the preparation of the consolidated financial statements | 2. Accounting principles applied in the preparation of the consolidated financial statements 2.1 Basis of preparation These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements are based on a historical cost basis. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2.5. Due to rounding, numbers presented throughout these consolidated financial statements may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. 2.2 Scope of consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Company currently consolidates the financial operations of its two fully-owned subsidiaries, ObsEva Ireland Ltd, which is registered in Cork, Ireland and organized under the laws of Ireland, and ObsEva USA Inc., which is registered and organized under the laws of Delaware, USA. ObsEva Ireland Ltd had no operations and no results of operations to report as of December 31, 2019 and 2018. 2.3 Standards and interpretations published by the IASB The IASB and the International Financing Reporting Standards Interpretations Committee have recently issued new standards and interpretations to be applied to the Group’s consolidated financial statements. IFRS 16 - Leases On January 1, 2019, the Group adopted IFRS 16 Leases Leases and Related Interpretations In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review (there were no onerous contracts as at January 1, 2019); • accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases; • excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application; and • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and Interpretation 4 Determining whether an Arrangement contains a Lease The following table presents the reconciliation between the non-cancellable operating lease commitments reported as of December 31, 2018 and the lease liabilities recognized on January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 4.9%. (in USD ’000) Total Operating lease commitments disclosed as at December 31, 2018 3,074 Discounted using the Group’s incremental borrowing rate at the date of initial application 2,772 (Less): short-term and low-value leases recognized on a straight-line basis as expense (37 ) (Less): adjustments relating to changes in the index or rate affecting variable payments (28 ) Lease liability recognized as at January 1, 2019 2,707 Of which are: Current lease liabilities 577 Non-current lease liabilities 2,130 Right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet as at December 31, 2018. Right-of-use assets mainly relate to office buildings. The adoption of IFRS 16 Leases No other new standards and amendments applied by the Group in 2019 had a material impact on its consolidated financial statements. In addition, there are no new standards and amendments published but not yet effective that are expected to have a material impact on the consolidated financial statements of the Group. 2.4 Significant accounting policies Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. Current assets Other receivables and other current receivables or prepaid expenses are carried at their nominal value. Individual receivables that are known to be uncollectible are written off by reducing the carrying amount directly. The Group considers that there is evidence of impairment if any of the following indicators are present: • significant financial difficulties of the debtor; • probability that the debtor will enter bankruptcy or financial reorganization; and • default or delinquency in payments (more than 30 days overdue). The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all receivables. Furniture, fixtures and equipment Furniture, fixtures and equipment are carried at cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated using the straight-line method, on the basis of the following useful lives: • furniture 5 years • hardware 3 years • leasehold improvement duration of lease Furniture, fixtures and equipment are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, on an individual basis. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Leases From January 1, 2019, the Group has changed its accounting policy for leases where the Group is a lessee, as explained in note 2.3. The Group leases various office buildings and equipment, which are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. 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 (including in-substance 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, • amounts expected to be payable by the Group under residual value guarantees, • the exercise price of a purchase option if the Group is reasonably certain to exercise that option, • lease payments to be made under reasonably certain extension options, and • payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. 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 lessee’s incremental borrowing rate is used, being the rate that the individual lessee 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. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce 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. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise small items of office furniture and equipment. Until December 31, 2018, leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor were classified as operating leases, and payments made are charged to the statement of comprehensive loss on a straight-line basis. The Group did not have any finance leases. Intangible assets Separately acquired patents, licenses and other intangible assets are recorded at historical cost and subsequently measured at cost less accumulated amortization and any impairment losses. The acquisition of certain intangible assets, mainly licenses, may involve additional payments contingent on the occurrence of specific events or milestones. Unless the Group already has a present obligation to make the payment at a future date, the initial measurement of the intangible asset does not include such contingent payments. Instead, such payments are subsequently capitalized as intangible assets when the contingency or milestone occurs. Estimated useful life is the lower of legal duration and economic useful life, which does not exceed 20 years. The estimated useful life of the intangible assets is annually reviewed, and if necessary, the future amortization charge is accelerated. For licenses, the amortization starts when the assets become available for use, generally once proper regulatory and marketing approval are obtained. Intangible assets are subject to impairment testing annually, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Post-employment benefits Group companies operate two pension schemes. All employees of ObsEva SA participate in a retirement defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary, using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in the consolidated statement of comprehensive loss. During 2017, ObsEva USA, Inc established a 401K, defined contribution plan, for the employees of the company. A defined contribution plan is a pension plan under which the amounts paid by the employer are fixed in advance. The plan assets are held by a third party custodian. ObsEva USA, Inc. contributions to the defined contribution plan are charged to the income statement as incurred. The Group has no further obligation once the contributions have been paid. Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings that are due within 12 months after the end of the reporting period are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability until more than 12 months after the reporting period. Equity Incremental costs directly attributable to the issuance of common shares and options are recognized as a deduction from equity, net of any tax effects. Research and development Research expenses are charged to the consolidated statement of comprehensive loss as incurred. Development expenses are capitalized as intangible assets when it is probable that future economic benefits will flow to the Group, and the following criteria are fulfilled: • it is technically feasible to complete the intangible asset so that it will be available for use or sale; • management intends to complete the intangible asset and use or sell it; • there is an ability to use or sell the intangible asset; • the asset will generate probable future economic benefits and demonstrate the existence of a market; • adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and • the expenditure attributable to the intangible asset during its development can be reliably measured. In the opinion of management, due to uncertainties inherent in the development of the Group’s product candidates, the criteria for development costs to be recognized as an asset as defined by IAS 38 Intangible Assets Foreign currencies Functional and presentation currency Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which each Group’s entity operates (the “functional currencies”). The functional and presentation currencies of the Company is the US dollar (USD), which is also the functional currency of ObsEva USA, Inc. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of comprehensive loss, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of comprehensive loss on a net basis within other income or other expenses. Share-based compensation The Group operates two equity incentive plans. A share-based, equity-settled, plan was formally set-up by the Group in 2013 (the “2013 EIP”). Participants eligible for awards under the 2013 EIP are executives, directors, employees, agents and consultants. The fair value of the shares granted under the 2013 EIP is determined at each grant date by using either an option pricing method that uses a Black-Scholes model or a hybrid method, as appropriate, both based on a combination of the discounted cash flow method, under the income approach, and the backsolve method. A share-based, equity-settled, plan was formally set-up by the Group in 2017 (the “2017 EIP”). Participants eligible for awards under this plan are executives, directors, employees, agents and consultants. The fair value of the stock-options granted under the 2017 EIP is determined at each grant date by using a Black-Scholes model. When the equity instruments granted do not vest until the counterparty completes a specified period of services, the Group accounts for those services as they are rendered by the counterparty, during the vesting period, with a corresponding increase in equity. Deferred income taxes Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit and loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Segment information The Group operates in one segment, which is the research and development of innovative women’s reproductive, health and pregnancy therapeutics. The marketing and commercialization of such therapeutics depend, in large part, on the success of the development phase. The Chief Executive Officer of the Company (Chief Operating Decision Maker) reviews the consolidated statement of operations of the Group on an aggregated basis and manages the operations of the Group as a single operating segment. The Group currently generates no revenue from the sales of therapeutics products. The Group’s activities are not affected by any significant seasonal effect. The geographical analysis of non-current assets is as follows: As at December 31, in USD ‘000 2019 2018 Switzerland 28,391 21,954 USA 779 246 Total non-current assets 29,170 22,200 The geographical analysis of operating expenses is as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Switzerland 102,492 73,050 63,956 USA 4,619 4,119 3,524 Total operating expenses 107,111 77,169 67,480 2.5 Critical accounting estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will not necessarily equal to related actual outcome. The following areas involve a higher degree of judgement or complexity or are areas where assumptions and estimates can have a significant impact on the consolidated financial statements: • Post-employment obligations: the actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty (note 11); • Leases: the calculation of right of use assets and lease liabilities involves making assumptions about lessee’s incremental borrowing rate and renewal options, which are subject to judgment (note 9); • Share-based compensation: the determination of the fair value of the equity instruments granted involves the use of certain assumptions subject to judgement (note 20); • Commencement of depreciation and amortization: the depreciation and amortization starts when the assets are available for use in the manner intended by management, which requires judgement (notes 7 and 8); • Research and development costs: the Group recognizes expenditure incurred in carrying out its research and development activities until it becomes probable that future economic benefits will flow to the Group, which results in recognizing such costs as intangible assets, involving a certain degree of judgement (note 15); • Deferred taxes: the recognition of deferred tax assets requires assessment of whether it is probable that sufficient future taxable profit will be available against which the deferred tax assets can be utilized (note 18); • Impairment of assets: as part of impairment tests, the recoverable amounts of tested assets have been determined based on fair value calculations requiring the use of certain assumptions, subject to judgement (note 8). |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2019 | |
Financial Risks Management [Abstract] | |
Financial risk management | 3. Financial risk management 3.1 Financial risk factors The Group’s activities expose it to a variety of financial risks such as foreign exchange risk, credit risk, interest rate risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Financial risk management is carried out by the Group`s finance department subject to and pursuing policies approved by the Board of Directors. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Swiss franc (CHF), Euro (EUR) and British Pound (GBP). Foreign exchange risk arises from future commercial transactions (e.g. costs for clinical services) and recognized assets and liabilities. Management has set up a policy to manage the foreign exchange risk against their functional currency. To manage its foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, the Group’s finance department maintains foreign currency cash balances to cover anticipated future requirements. The sensitivity of profit or loss to changes in the exchange rates in the reported periods are as follows: EUR positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 1,248 1,248 -5 % (1,248 ) (1,248 ) 2018 +5 % 770 770 -5 % (770 ) (770 ) GBP positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 139 139 -5 % (139 ) (139 ) 2018 +5 % 110 110 -5 % (110 ) (110 ) CHF positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 884 884 -5 % (884 ) (884 ) 2018 +5 % 607 607 -5 % (607 ) (607 ) Credit risk Cash and cash equivalents are deposited with top tier banks and institutions with a short-term rating of “A-1” or “P-1” with Standard & Poor’s and Moody’s, respectively. The maximum credit risk exposure the Group faces in connection with its financial assets, being cash and cash equivalents and other receivables, is the carrying amounts of these balances as shown in the consolidated balance sheet. Interest rate risk Interest rate risks arise from changes in interest rates that may have a negative impact on the Group’s financial position and results. Fluctuations in interest rates lead to changes in interest expense on floating-rate liabilities and thus affect the financial result. The financial liabilities subject to interest rate risk are exclusively floating-rate debt instruments denominated in USD, carried at amortized cost. The Group does not hold hedging instruments to manage the interest rate risk. The below table shows sensitivity to changes in market interest rates for the Group’s debt instruments. Impact on loss before taxes in USD ‘000 2019 2018 Interest rates - increase by 100 basis points (47 ) — Interest rates - decrease by 100 basis points — — 3.2 Capital and liquidity management The Group’s principal source of liquidity is the cash reserves which are obtained through the issuance of new shares and debt instruments. The Group’s policy is to invest these funds in low risk investments including interest bearing deposits. The ability of the Group to maintain adequate cash reserves to sustain its activities in the medium term is subject to risk as it is highly dependent on the Group’s ability to raise further funds from the sale of new shares. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to ensure the financing of successful research and development activities so that future profits can be generated and to maintain sufficient financial resources to mitigate against risks and unforeseen events. The Group is also subject to capital maintenance requirements under Swiss law. To ensure that statutory capital requirements are met, the Group monitors capital periodically. A reconciliation of the net debt position is shown in the table below. (in USD ’000) Borrowings Lease liabilities Total liabilities from financing activities Cash and cash equivalents Total Net debt as at January 1, 2018 — — — 110,841 110,841 Cash flows — — — 27,440 27,440 Foreign exchange adjustments — — — 359 359 Net debt as at December 31, 2018 — — — 138,640 138,640 Recognized on adoption of IFRS 16 — (2,707 ) (2,707 ) — (2,707 ) — (2,707 ) (2,707 ) 138,640 135,933 Cash flows (24,736 ) 690 (24,047 ) (69,030 ) (93,077 ) Interest expense (368 ) (119 ) (486 ) — (486 ) Foreign exchange adjustments — (23 ) (23 ) (240 ) (263 ) Net debt as at December 31, 2019 (25,104 ) (2,159 ) (27,263 ) 69,370 42,107 In addition, the maturity profile of the Group’s financial liabilities is presented in the table below. (in USD ’000) Carrying amount Total undiscounted cash flows up to 1 year 1 to 5 years Maturities more than 5 years Trade and other payables (7,873 ) (7,873 ) (7,873 ) — — Borrowings (25,104 ) (34,852 ) (2,206 ) (32,646 ) — Lease liabilities (2,159 ) (2,336 ) (709 ) (1,627 ) — Total as at December 31, 2019 (35,136 ) (45,061 ) (10,788 ) (34,273 ) — As at December 31, 2018, all financial liabilities had a contract maturity within one year. 3.3 Fair value estimation and financial instruments The carrying value less impairment provision of receivables and payables approximate their fair values due to their short-term nature. All financial assets and liabilities, respectively, are held at their amortized cost. The Group’s financial assets consist of cash and cash equivalents and other receivables which are classified as financial assets at amortized cost according to IFRS 9. The Group’s financial liabilities consist of debt instruments, other payables and accruals which are classified as liabilities at amortized cost according to IFRS 9. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As at December 31, in USD ‘000 2019 2018 Bank deposits 69,370 138,640 Interest bearing deposits — — Total cash and cash equivalents 69,370 138,640 Split by currency: 2019 2018 CHF 14 % 5 % USD 73 % 89 % EUR 12 % 5 % GBP 1 % 1 % |
Receivables and payables
Receivables and payables | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications Of Assets Liabilities And Equities [Abstract] | |
Receivables and payables | 5. Receivables and payables As at December 31, 2019 and 2018, other receivables consist mainly of reimbursements to be received from third parties, including VAT, insurance premiums and shared-costs of research and development studies, and other payables and other current liabilities include mainly costs of clinical services. All receivables and payables are due from and to third parties and carried at amortized cost. All payables have a contract maturity within one year. |
Prepaid and accrued expenses
Prepaid and accrued expenses | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Deferred Costs [Abstract] | |
Prepaid and accrued expenses | 6. Prepaid and accrued expenses As at December 31, 2019 and 2018, prepaid expenses mainly consist of advance or milestone payments made as part of our ongoing clinical trials. As at December 31, 2019 and 2018, accrued expenses consisted of the following: As at December 31, in USD ‘000 2019 2018 Accrued research and development expenses 7,244 10,734 Accrued compensation-related expenses 1,882 2,364 Accrued other expenses 1,292 1,065 Total accrued expenses 10,418 14,163 |
Furniture, fixtures and equipme
Furniture, fixtures and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Furniture, fixtures and equipment | 7. Furniture, fixtures and equipment in USD ‘000 2019 2018 Net book value as at January 1 319 323 Additions 46 105 Depreciation charge (120 ) (109 ) Currency translation effects — — Net book value as at December 31 245 319 Total cost 653 600 Accumulated depreciation (408 ) (281 ) Furniture, fixtures and equipment assets mainly consist of office furniture and leasehold improvements. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Intangible Assets [Abstract] | |
Intangible assets | 8. Intangible assets in USD ‘000 2019 2018 Net book value as at January 1 21,608 21,608 Additions 5,000 — Amortization charge — — Currency translation effects — — Net book value as at December 31 26,608 21,608 Total cost 26,608 21,608 Accumulated amortization — — As at December 31, 2019, the Group holds a number of licenses to operate several biopharmaceutical product candidates, the value of which is recorded at USD 26.6 million (2018: USD 21.6 million). Merck Serono licenses On August 28, 2013, the Group in-licensed nolasiban for USD 4.9 million from Ares Trading S.A., an affiliate of Merck Serono (“Merck Serono”). In June 2015, the Group acquired the in-license for OBE022 from Merck Serono for an amount of USD 2.4 million. Kissei license On November 19, 2015, the Group entered into an exclusive in-license and supply agreement with Kissei Pharmaceutical Co., Ltd. (“Kissei”) to acquire the product candidate linzagolix (formerly OBE2109) for which Kissei successfully completed a Phase 2 trial in Japan. This in-license agreement grants the Group an exclusive license to use, develop and commercialize the product candidate worldwide excluding certain Asian countries. This in-license was acquired for an upfront cash consideration of USD 10 million, with additional contingent payments upon occurrence of certain milestones (note 21). On April 25, 2017, the Group announced the initiation of its Phase 3 clinical program for linzagolix in uterine fibroids and related activation of sites and start of recruitment. This event triggered the recognition and payment of a USD 5.0 million milestone to Kissei during the second quarter of 2017, that was accounted for as an intangible asset. Similarly, on May 9, 2019, the Group announced the initiation of its Phase 3 clinical program for linzagolix in endometriosis, which includes the EDELWEISS 2 and EDELWEISS 3 clinical trials. On July 19, 2019, the Group randomized the first patient as part of the EDELWEISS 2 trial, resulting in a milestone payment of USD 5 million to Kissei, accounted for as an intangible asset. The Group has concluded that the Merck Serono licenses and the Kissei license acquisitions do not qualify as business combinations per IFRS 3, as the Group did not acquire processes that are capable of producing outputs given the in-licensed compounds are very early-stage. Amortization and impairment The licenses are currently not amortized as no regulatory and marketing approvals were obtained. The Group's intangible assets are subject to a multi-phase clinical trials process, and as of December 31, 2019, the Group does not expect to receive regulatory and marketing approvals and potentially start the commercialization of pharmaceutical products until another few years, if at all. In accordance with IAS 38, the licenses have been reviewed for impairment by assessing the fair value less costs of disposal (“FVLCOD”). The valuation is considered to be Level 3 in the fair value hierarchy due to unobservable inputs used in the valuation. No impairment was identified. The key assumptions used in the valuation model (income approach) to determine the FVLCOD of the licenses are as follows: • Expected research and development costs; • Probabilities of achieving development milestones based on industry standards; • Reported disease prevalence; • Expected market share; • Commercialization expectations; • Drug reimbursement, costs of goods and marketing expenses; and • Expected patent life. The valuation model covers a 20-year period due to the length of the development cycle for assets of this nature. A discount factor of 15%, based on the assumed cost of capital for the Group, has been used over the forecast period. Based on sensitivity analysis performed, including changes in discount rates and peak sales assumptions, no reasonably possible change in assumption would cause the carrying value of the licenses to exceed their recoverable amount. The Group has also collectively reviewed its licenses for impairment on the basis of the market capitalization for the entire Group as at December 31, 2019 less the value of its tangible assets as well as cash and cash equivalents. This analysis resulted in a headroom exceeding USD 110.0 million. The valuation is considered to be Level 1 in the fair value hierarchy and further supported the Group’s conclusion that no impairment was identified as of December 31, 2019 and 2018. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lease Liabilities [Abstract] | |
Leases | 9. Leases The consolidated financial statements show the following amounts relating to leases: Right-of-use assets in USD ‘000 2019 Net book value as at January 1* 2,658 Additions — Depreciation charge (616 ) Currency translation effects — Net book value as at December 31 2,042 Total cost 2,658 Accumulated depreciation (616 ) *Value recognized upon transition to IFRS 16. See note 2.3 Rights-of-use assets mainly relate to office buildings. The expense relating to short-term and low-value leases is not material. The total cash outflow for leases in 2019 was USD 0.7 million. Lease liabilities As at in USD ‘000 December 31, 2019 January 1, 2019* Current 618 577 Non-current 1,541 2,130 Total lease liabilities 2,159 2,707 *Value recognized upon transition to IFRS 16. See note 2.3 The lease liabilities have been measured based on the Group’s weighted average incremental borrowing rate of 4.9%. The maturity of the lease liabilities is provided in note 3.2. |
Other long-term assets and liab
Other long-term assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Long Term Assets [Abstract] | |
Other long-term assets and liabilities | 10. Other long-term assets and liabilities The Group’s other long-term assets mainly consist of security rental deposits for the Group’s offices. The Group’s other long-term liabilities consist of various provisions. |
Post-employment benefits
Post-employment benefits | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Defined Benefit Plans [Abstract] | |
Post-employment benefits | 11. Post-employment benefits In accordance with the mandatory Swiss pension fund law, all employees of the Company participate in a retirement defined benefit plan. Swiss based pension plans are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (the “LPP”), which stipulates that pension plans are to be managed by independent, legally autonomous units. Under the terms of the pension plan, participants are insured against the financial consequences of old age, disability and death. The various insurance benefits are governed by regulations, with the LPP specifying the minimum benefits that are to be provided. The employer and employees pay contributions to the pension plan. In the event the pension plan’s statutory funding falls below a certain level, various measures can be taken to increase funding above such level, such as increasing the current contribution, lowering the interest rate on the retirement account balances or reducing the additional prospective benefits. The employer can also make additional restructuring contributions. Since the risks of death and disability are fully reinsured by an insurance group, the savings plan must be qualified as a defined benefit plan. As required by IAS 19 Employee Benefits The investment risk is borne by the insurer and the reinsurer respectively, and the investment decision is taken by the board of trustees of the collective insurance. In 2018, the pension fund changed the pension conversion rates, which has been considered as an amendment of the pension plan. In 2019, the contributions levels for certain employees was changed, which also has been considered as a plan amendment. in USD ‘000 2019 2018 Change in defined benefit obligation Defined benefit obligation at January 1, (14,502 ) (12,230 ) Current service cost (1,269 ) (1,046 ) Interest cost (140 ) (101 ) Net benefits paid (4,071 ) (888 ) Currency translation effects (536 ) 137 Remeasurements: Impact of plan amendment 527 172 Effect of changes in demographic assumptions 366 — Effect of changes in financial assumptions (3,037 ) 96 Effect in experience assumptions (2,043 ) (642 ) Defined benefit obligation at December 31, (24,705 ) (14,502 ) in USD ‘000 2019 2018 Change in plan assets Fair value of plan assets at January 1, 10,955 9,131 Interest income 115 80 Employer contributions 622 479 Employee contributions 622 479 Net benefits paid 4,071 888 Currency translation effects 354 (104 ) Remeasurements: return on plan assets (excluding interest income) 20 2 Fair value of plan assets at December 31, 16,759 10,955 Year ended December 31, in USD ‘000 2019 2018 Components of defined benefit cost Current service cost 1,269 1,046 Interest expense on defined benefit obligation 140 101 Interest income on plan assets (115 ) (80 ) Employee contributions (622 ) (479 ) Impact of plan amendment (527 ) (172 ) Total included in staff costs (note 16) 145 416 Year ended December 31, in USD ‘000 2019 2018 Remeasurements recognized in other comprehensive loss Effect of changes in demographic assumptions 366 — Effect of changes in financial assumptions (3,037 ) 96 Effect in experience assumptions (2,043 ) (642 ) Return on plan assets (excluding interest income) 20 2 Total remeasurements recognized as other comprehensive loss (4,694 ) (544 ) Cumulative amount of remeasurements immediately recognized in other comprehensive loss (8,819 ) (4,125 ) As at December 31, in USD ‘000 2019 2018 Amounts recognized in the statement of financial position Defined benefit obligation (24,705 ) (14,502 ) Fair value of plan assets 16,759 10,955 Net liability (7,946 ) (3,547 ) in USD ‘000 2019 2018 Change in defined benefit liability Net defined benefit liability at January 1, (3,547 ) (3,099 ) Defined benefit cost included in statement of comprehensive loss (145 ) (416 ) Total remeasurements included in other comprehensive loss (4,694 ) (544 ) Employer contributions 622 479 Currency translation effects (182 ) 33 Net defined benefit liability at December 31, (7,946 ) (3,547 ) As of the date of preparation of these consolidated financial statements, the annual report for 2019 of the pension fund has not yet been issued, and therefore the detailed structures and assets held at December 31, 2019, are not currently available for presentation. The detailed structures and assets held at December 31, 2018, are as follows: Plan assets As at December 31, 2018 Cash 3.0 % Bonds 59.0 % Shares 12.9 % Real estate 17.1 % Mortgages 8.0 % Alternative investments — Total 100.0 % The principal actuarial assumptions used were as follows: 2019 2018 Discount rate 0.20% 0.85% Salary increase (including inflation) 1.00% 1.00% Rate of pension increases 0.25% 0.25% Post-employment mortality table LPP 2015 G LPP 2015 G Sensitivity analysis illustrates the sensitivity of the Group defined benefit obligation at December 31, 2019 by varying the discount rate and the salary increase rate by plus / minus 50 basis points: in USD ‘000 Discount rate Discount rate Salary increase Salary increase Rate of pension increase Rate of pension increase Sensitivity analysis plus 50bps minus 50bps plus 50bps minus 50bps plus 25bps minus 25bps Discount rate 0.70 % (0.30 )% 0.20 % 0.20 % 0.20 % 0.20 % Salary increase 1.00 % 1.00 % 1.50 % 0.50 % 1.00 % 1.00 % Rate of pension increases 0.25 % 0.25 % 0.25 % 0.25 % 0.50 % 0.00 % Defined benefit obligation (22,399 ) (27,416 ) (24,754 ) (24,658 ) (25,426 ) (24,022 ) Average duration of the defined benefit obligation 2019 2018 Duration in years 20.2 18.9 The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. Expected contributions by the employer to be paid to the post-employment benefit plans during the annual period beginning after the end of the reporting period amount to approximately USD 730,000. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | 12. Borrowings In August 2019, the Company entered into a loan and security agreement, or the credit facility, with Oxford Finance LLC for a term loan of up to USD 75.0 million, subject to funding in three tranches. The Company received gross proceeds of USD 25.0 million, net of transaction costs of USD 0.3 million, from the first tranche of the credit facility upon entering into the agreement and intends to use the funds for its various clinical trials programs. The second tranche of USD 25.0 million was available to be drawn at the Company’s option between December 1, 2019 and January 31, 2020 upon positive results in the Phase 3 IMPLANT 4 clinical trial of nolasiban. Since the primary endpoint of the IMPLANT 4 clinical trial was not successfully met, the Company was not eligible to draw the second tranche. The third tranche of USD 25.0 million may be drawn at the Company’s option between August 1, 2020 and September 30, 2020 upon positive results in the Phase 3 PRIMROSE 1 and PRIMROSE 2 clinical trials of linzagolix. The credit facility is presented in the balance sheet as follows: As at December 31, in USD ‘000 2019 2018 Face value of Oxford loan 25,000 — Transaction costs (264 ) — 24,736 — Interest expense 1,067 — Interest paid (699 ) — Total borrowings 25,104 — Of which are: Current 187 — Non-current 24,917 — The credit facility is secured by substantially all of the Company’s assets, including cash and cash equivalents as well as the Company’s intellectual property and licenses. Each tranche bears interest at a floating interest rate of thirty day U.S. LIBOR, plus 6.25%, or a minimum of 8.68% per year in total. The Company is required to make monthly interest-only payments on each tranche through the amortization start date on August 1, 2022. The credit facility will mature on August 1, 2024, at which date a final fee payment of 6.75% of each funded tranche will be due, resulting in an effective interest rate of 10.32% per year. The credit facility contains customary conditions to borrowings and events of default and contains various negative covenants limiting the Company’s ability to, among other things, transfer or sell certain assets, allow changes in business, ownership or business locations, consummate mergers or acquisitions, incur additional indebtedness, create liens, pay dividends or make other distributions and make investments. As of December 31, 2019, the Company was in compliance with its covenants. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Shareholders' equity | 13. Shareholders’ equity in USD ‘000 Number of common shares Share capital Share premium Total January 1, 2018 36,342,945 2,864 219,335 222,199 Issuance of shares - EIP 2013 347,509 27 2,947 2,974 Issuance of shares - June 2018 offering 5,056,721 392 77,431 77,823 Issuance 1,600,851 130 19,881 20,011 Share issuance costs — — (6,160 ) (6,160 ) Exercise of stock-options - EIP 2017 95,885 7 1,131 1,138 December 31, 2018 43,443,911 3,420 314,565 317,985 in USD ‘000 Number of common shares Share capital Share premium Total January 1, 2019 43,443,911 3,420 314,565 317,985 Issuance of shares - EIP 2013 261,984 21 2,696 2,717 Issuance 691,133 56 3,498 3,554 Share issuance costs — — (130 ) (130 ) Exercise of stock-options - EIP 2017 26,420 2 326 328 December 31, 2019 44,423,448 3,499 320,955 324,454 Share capital and share premium As at December 31, 2019, the total outstanding share capital of USD 3.5 million, fully paid, consists of 44,423,448 common shares, excluding 168,641 non-vested shares and 3,975,516 treasury shares. As at December 31, 2018, the total outstanding share capital of USD 3.4 million, fully paid, consisted of 43,443,911 common shares, excluding 430,625 non-vested shares and 1,602,601 treasury shares. In March 2018, the Company issued 3,499,990 common shares at par value of 1/13 of a Swiss franc per share. The shares were subscribed by the Company and are held as treasury shares, hence the operation did not impact the share capital. Share issuance costs of USD 11 thousand related to the operation were recorded as a deduction in equity. In May 2018, the Company sold 1,600,851 treasury shares at a price of USD 12.50 per share, from its “at the market” (ATM) program, generating gross proceeds of USD 20.0 million. Directly related share issuance costs of USD 0.6 million were recorded as a deduction in equity. In June 2018, the Company completed an underwritten public offering of 4,750,000 common shares at a price of USD 15.39 per share, with an option to issue to an additional 712,500 common shares (the “follow-on offering”). The gross proceeds of USD 73.1 million resulting from this transaction have been recorded in equity net of directly related share issuance costs of USD 5.3 million. Subsequent to the initial closing of the follow-on offering, on July 19, 2018, the Company sold an additional 306,721 common shares for total gross proceeds of USD 4.7 million (USD 15.39 per share). These shares were sold pursuant to the 30-day option granted in connection with the follow-on offering to purchase up to an additional 712,500 common shares. Directly related share issuance costs amounted to USD 0.3 million. In July 2019, the Company issued 3,064,048 common shares at par value of 1/13 of a Swiss franc per share. The shares were fully subscribed for by the Group, and are held as treasury shares, hence the operation did not impact the share capital. During the year ended December 31, 2019, the Company sold a total of 691,133 treasury shares at an average price of USD 5.14 per share, as part of its ATM program initiated in May 2018. These multiple daily transactions generated total gross proceeds of USD 3.6 million. Directly related share issuance costs of USD 0.1 million were recorded as a deduction in equity. Equity incentive plans In 2019, the Company issued 261,984 common shares (2018: 347,509) under its 2013 EIP (see note 20). All shares issued under the 2013 EIP have a nominal value of 1/13 of a Swiss franc, translated into USD using historical rates at the issuance date. Authorized share capital The authorized share capital that is not outstanding is as follows: As at December 31, Number of shares 2019 2018 Authorized share capital 19,681,753 15,565,620 |
Revenue and other operating inc
Revenue and other operating income | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Revenue And Other Income Abstract | |
Revenue and other operating income | 14. Revenue and other operating income The Group currently derives no revenue from sales of its biopharmaceutical product candidates. Operating income other than revenue mainly relates to compensation received from the Swiss tax authorities as the Company acts as collecting agent of the withholding tax on salaries. |
Operating expenses by nature
Operating expenses by nature | 12 Months Ended |
Dec. 31, 2019 | |
Expense By Nature [Abstract] | |
Operating expenses by nature | 15. Operating expenses by nature Year ended December 31, in USD ‘000 2019 2018 2017 External research and development costs 70,531 49,480 43,268 Staff costs (note 16) 24,556 19,537 17,999 Professional fees 7,072 3,871 2,862 Rents 21 827 592 Travel expenses 1,398 1,044 1,073 Patent registration costs 882 1,002 426 Depreciation 737 109 70 Other 1,914 1,299 1,190 Total operating expenses by nature 107,111 77,169 67,480 Due to the difficulty in assessing when research and development projects would generate revenue, the Group expenses all research and development costs on the consolidated statement of comprehensive loss. In 2019, research and development expenses amounted to USD 88.1 million (2018: USD 62.9 million, 2017: USD 54.9 million). The depreciation expense has been allocated as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Research and development expenses 429 63 44 General and administrative expenses 308 46 26 Total depreciation 737 109 70 |
Staff costs
Staff costs | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Staffing Costs [Abstract] | |
Staffing costs | 16. Staff costs Year ended December 31, in USD ‘000 2019 2018 2017 Wages and salaries 10,403 9,023 7,715 Social charges 2,124 946 993 Post-employment benefits expense 145 416 435 Share-based payments 11,884 9,152 8,856 Total staff costs 24,556 19,537 17,999 The Group employed on average 48.5 full-time equivalents (“FTE”) in 2019, compared to 39.6 FTE in 2018 and 32.3 FTE in 2017, and 50.1 FTE as at December 31, 2019 compared to 43.2 FTE as at December 31, 2018 and 37.7 FTE as at December 31, 2017. For the year ended December 31, 2019, the post-employment benefits line includes a gain of USD 527 thousand relating to the plan amendment enacted in 2019 (2018: 172 thousand, 2017: nil). |
Finance income and expense
Finance income and expense | 12 Months Ended |
Dec. 31, 2019 | |
Analysis Of Income And Expense [Abstract] | |
Finance income and expense | 17. Finance income and expense Our finance income and expense primarily consist of foreign exchange gain and loss as well as interest expense associated with our lease liabilities and debt instruments. Year ended December 31, 2019 2018 2017 (in thousands) Foreign exchange (loss) / gain $ (442 ) $ 393 $ 589 Interest expense (1,186 ) — — Finance result, net $ (1,628 ) $ 393 $ 589 |
Income taxes and deferred taxes
Income taxes and deferred taxes | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Income Tax [Abstract] | |
Income taxes and deferred taxes | 18. Income taxes and deferred taxes The Group is subject to income taxes in Switzerland, Ireland and the United States. The Company is subject in Switzerland to a municipal and cantonal income tax rate of 22.6% and to a federal tax rate of 8.5% on its profits after tax. It is entitled to carry forward any loss incurred for a period of seven years and can offset such losses carried forward against future taxes. In 2015, the Company was granted by the State Council of the Canton of Geneva an exemption of income and capital tax at municipal and cantonal levels for the period from 2013 until 2022. Because of this exemption, and the fact that the Company has incurred net losses since its inception, no income tax expense at the municipal, cantonal or federal levels was recorded in the Company for the years ended December 31, 2019 and 2018. Additionally, due to the uncertainty as to whether it will be able to use its net loss carryforwards for tax purposes in the future, no deferred taxes have been recognized on the balance sheet of the Company as of December 31, 2019 and December 31, 2018. On May 19, 2019, the Canton of Geneva approved the implementation of the national proposal of the tax law named “Federal Act on Tax Reform and AHV Financing” (TRAF). This new tax law results in the abolition of special tax status companies at cantonal level (privileged taxation as holding company, mixed company and domiciliary company), and introduces a range of tax measures including the reduction of corporate income tax rate and capital tax base. As a result of this reform, the Company will be subject to a municipal and cantonal income tax rate of 14.0%, effective on January 1, 2020, while keeping the benefit of the exemption granted in 2013. Since the Company has incurred recurring losses since inception, it does not expect a significant impact resulting from the implementation of the TRAF. The following table details the tax losses carry forwards of the Company and their respective expiring dates. Expiring tax losses As at December 31, in USD ‘000 2019 2018 2020 2,950 2,896 2021 11,687 11,473 2022 16,394 16,093 2023 28,879 28,349 2024 59,103 58,019 2025 68,662 67,403 2026 99,915 — Total unrecorded tax losses carry forwards 287,590 184,233 The Company’s Irish subsidiary has no activity, and, therefore, no income tax expense was recorded in such entity for the years ended December 31, 2019 and 2018. The Company’s U.S. subsidiary, ObsEva USA Inc., is a service organization for the Group and is therefore subject to taxes on the revenues generated from its services to the Group that are charged based upon the U.S. subsidiary’s cost plus arrangement with the Group. The profits of the U.S. subsidiary for the year ended December 31, 2019 and 2018 were subject to a total U.S. income tax rate of 27.3% based on both the U.S. federal and Massachusetts state tax rates. The income tax for the year ended December 31, 2019 and 2018 were USD 67 thousand and USD (45) thousand, respectively. Additionally, since ObsEva USA Inc. is totally dependent on ObsEva SA for revenue, there is uncertainty as to whether ObsEva USA Inc. will be able to use a deferred tax asset for tax purposes in the future, therefore, no deferred taxes have been recognized on the balance sheet of the Group as of December 31, 2019 and December 31, 2018. The following elements explain the difference between the income tax expense at the applicable Group tax rate and the effective income tax expense: Year ended December 31, 2019 in USD ‘000 ObsEva SA ObsEva USA Total Group Net loss before tax (107,120 ) (1,603 ) (108,723 ) Statutory tax rate (blended at Group level) 7.8 % 27.3 % 8.1 % Income tax credit at statutory tax rates (8,355 ) (438 ) (8,793 ) Tax impact of permanent differences 770 76 846 Temporary differences not recognized as deferred tax assets — 448 448 Adjustments for current tax of prior periods — — — Tax on losses not recognized as deferred tax assets 7,586 (19 ) 7,567 Effective income tax expense — 67 67 Effective tax rate 0.0 % (4.2 )% (0.1 )% Year ended December 31, 2018 in USD ‘000 ObsEva SA ObsEva USA Total Group Net loss before tax (75,616 ) (1,145 ) (76,761 ) Statutory tax rate (blended at Group level) 7.8 % 27.3 % 8.1 % Income tax credit at statutory tax rates (5,898 ) (313 ) (6,211 ) Tax impact of permanent differences 602 76 678 Temporary differences not recognized as deferred tax assets — 251 251 Adjustments for current tax of prior periods — (59 ) (59 ) Tax on losses not recognized as deferred tax assets 5,296 — 5,296 Effective income tax credit — (45 ) (45 ) Effective tax rate 0.0 % 3.9 % 0.1 % |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss per share | 19. Loss per share As of December 31, 2019, 2018 and 2017, the Company has one category of shares, which are common shares, since the Company’s non-voting shares and series A and series B preferred shares were converted into common shares upon the closing of the IPO on January 25, 2017. The basic loss per share is calculated by dividing the loss of the period attributable to the ordinary shares by the weighted average number of ordinary shares (common and non-voting) outstanding during the period as follows: Year ended December 31, 2019 Common shares Net loss attributable to shareholders (in USD ‘000) (108,790) Weighted average number of shares outstanding 43,674,746 Basic and diluted loss per share (in USD) (2.49) Year ended December 31, 2018 Common shares Net loss attributable to shareholders (in USD ‘000) (76,716) Weighted average number of shares outstanding 40,172,498 Basic and diluted loss per share (in USD) (1.91) Year ended December 31, 2017 Common shares Net loss attributable to shareholders (in USD ‘000) (66,926) Weighted average number of shares outstanding 29,799,047 Basic and diluted loss per share (in USD) (2.25) For the year ended December 31, 2019, 168,641 non-vested shares and 4,626,385 shares issuable upon the exercise of stock-options, which would have an anti-dilutive impact on the calculation of the diluted earnings per share, were excluded from the calculation. For the year ended December 31, 2018, 430,625 non-vested shares and 3,028,275 shares issuable upon the exercise of stock-options were excluded. For the year ended December 31, 2017, 778,134 non-vested shares and 1,866,740 shares issuable upon the exercise of stock-options were excluded. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |
Share-based compensation | 20. Share-based compensation The total expenses arising from share-based payment transactions recognized during the period as part of staff costs were as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Employee 2013 EIP 1,006 2,242 5,497 Employee 2017 EIP 10,878 6,910 3,359 Total share-based compensation 11,884 9,152 8,856 Employee equity incentive plan 2013 The Company established the 2013 EIP for employees, executives, directors and consultants (the “Beneficiaries”) of the Group . Upon enrollment in the 2013 EIP, Beneficiaries were granted a certain number of shares which they were entitled to acquire at a pre-determined price of 1/13 of a Swiss franc. The pre-determined price was generally paid by the Beneficiaries at the grant date and recognized as a pre-payment until the vesting period elapses resulting in the shares issuance being accounted for. The shares generally fully vest over a four-year vesting period, with 25% of the shares underlying the grant vesting after one year, and 1/48 th The Group has no present obligation to repurchase or settle the shares in cash. 2019 2018 2017 Number of shares issued under the 2013 EIP 261,984 347,509 454,548 Expense arising from the 2013 EIP (in USD ’000) 1,006 2,242 5,497 The fair value of the shares was calculated using a combination of the discounted cash flow method, under the income approach, and the backsolve method. The income approach estimates value based on the expectation of future cash flows that the Company will generate, such as cash earnings, costs savings, tax deduction and the proceeds from disposition. These future cash flows were discounted to their present values using a discount rate derived based on an analysis of the cost of capital of comparable publicly traded companies in similar lines of business, as of each valuation date, and was adjusted to reflect the risks inherent in the Company’s cash flows. The backsolve method, a form of the market approach to valuation, derives the implied enterprise equity value and the fair value of the non-voting share from a recent and contemporaneous transaction involving the Company’s own securities, using the following assumptions: rights and preferences of the different categories of shares, probability of various liquidity event scenarios, expected timing of a liquidity event, volatility and expected value in a liquidity event. The Group has stopped granting equity instruments under the 2013 EIP in 2016. Employee equity incentive plan 2017 The Company established in 2017 the 2017 EIP for Beneficiaries of the Group, under which 1,683,303 and 1,317,420 stock-options were granted during the year ended December 31, 2019 and 2018, respectively. The stock-options vest under a 3-year or 4-year vesting schedule, have a 10-year expiration term and have an exercise price equivalent to the share price at grant date. Certain grants also include non-market performance vesting conditions, common to all employees, regularly assessed to determine the numbers of awards expected to vest. Movements in the number of stock-options outstanding under the 2017 EIP were as follows: 2019 2018 Average exercise price (USD) Number of options Average exercise price (USD) Number of options At January 1, 11.39 3,028,275 9.19 1,866,740 Granted 8.89 1,683,303 13.98 1,317,420 Forfeited/Expired 10.94 (58,773 ) 6.98 (60,000 ) Exercised 7.32 (26,420 ) 7.01 (95,885 ) At December 31, 10.51 4,626,385 11.39 3,028,275 The weighted average share price at the date of exercise of options exercised during the years ended December 31, 2019 and 2018 was USD 11.64 and USD 13.04, respectively. The outstanding stock-options have the following range of exercise prices and remaining contractual life: As at December 31, Range of exercise prices 2019 2018 USD 15.00 to USD 17.99 361,500 361,500 USD 12.00 to USD 14.99 1,276,240 1,109,370 USD 9.00 to USD 11.99 1,458,595 1,185,905 USD 6.00 to USD 8.99 1,530,050 371,500 Total outstanding options 4,626,385 3,028,275 out of which are exercisable 1,312,557 447,538 Weighted-average remaining contractual life (in years) 8.8 9.2 The weighted average fair value of the stock-options granted during the years ended December 31, 2019 and 2018, determined using a Black-Scholes model was USD 6.45 and USD 10.36, respectively. The significant inputs to the model were: 2019 2018 Weighted average share price at grant date USD 8.89 USD 13.98 Weighted average exercise price USD 8.89 USD 13.98 Weighted average 10-year volatility 65 % 65 % Dividend yield 0 % 0 % Weighted average 10-year risk free rate 1.88 % 3.06 % Since the Company has a short track record as a public company, expected volatility has been determined based on the historical trend of an appropriate sample of public companies operating in the biotech and pharmaceutical industry. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Commitments and contingencies | 21. Commitments and contingencies Operating lease commitments The Group leases arrangements mostly relate to buildings offices for its headquarters in Geneva, Switzerland and its subsidiary’s lease in Boston, Massachusetts, USA. From January 1, 2019, the Group has applied IFRS 16 Leases As at December 31, in USD ‘000 2019 2018 Within 1 year — 705 Later than 1 year and no later than 5 years — 2,369 Later than 5 years — — Total — 3,074 Contingencies As a result of the licenses granted to the Group, the following contingencies are to be noted: Kissei license Under the terms of the license and supply agreement, the Group would be obligated to make milestone payments upon the achievement of specified regulatory milestones with respect to linzagolix. The total of all potential undiscounted future payments that the Group could be required to make under this arrangement ranges between USD 0 and USD 188 million, of which USD 10 million have already been paid. Pursuant to the Kissei license and supply agreement, the Group has agreed to exclusively purchase the active pharmaceutical ingredient for linzagolix from Kissei. During the development stage, the Group is obligated to pay Kissei a specified supply price. Following the first commercial sale of licensed product, the Group is obligated to pay Kissei a royalty payment in the low twenty percent range as a percentage of net sales, which includes payment for Kissei’s supply of the active pharmaceutical ingredient until the latest of the date that the valid claim of a patent for the product has expired, the expiration of our regulatory exclusivity period or 15 years from the first commercial sale of such product on a country-by-country and product-by-product basis. Merck Serono licenses Under the terms of the two license agreements with Merck Serono for OBE022 and nolasiban, the Group would be obligated to pay Merck Serono a high-single digit and a mid-single digit royalty, respectively, of net sales generated by the Group, its affiliates or sub-licensees of any product containing the in-licensed compounds. |
Related parties transactions
Related parties transactions | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related parties transactions | 22. Related parties transactions As of December 31, 2019, the Group’s related parties include key management (Board of Directors and Executive Committee) and members of their immediate families. The following transactions were carried out with related parties: • Key management remuneration The Board of Directors is composed of eight members, whereas the Executive Committee is composed of five members (2018:seven). The following table sets forth the total remuneration recorded for members of the Board of Directors and Executive Committee: Year ended December 31, in USD ‘000 2019 2018 Short-term employee benefits (including base and variable cash remuneration) 4,181 4,150 Post-employment benefits 186 117 Share-based payments 8,485 6,125 Total 12,852 10,392 • Other transactions with related parties There were no other significant transactions with related parties during the years presented. |
Going concern
Going concern | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Going Concern [Abstract] | |
Going concern | 23. Going concern The Group fulfills its obligations by the use of its cash reserves. The Group has incurred recurring losses since inception, including net losses of USD 108.8 million for the year ended December 31, 2019. As of December 31, 2019, the Group had accumulated losses of USD 328.0 million, out of which USD 30.6 million were offset with share premium. The Group expects to continue to generate operating losses in the foreseeable future, and that it will be able to meet all of its obligations as they fall due for at least 12 months from the date these financial statements are issued, hence, the audited consolidated financial statements have been prepared on a going concern basis. However, the future viability of the Group beyond that point is dependent on its ability to raise additional capital to finance its future operations. The Group will seek additional funding through public or private financings, debt financing or collaboration agreements. The inability to obtain funding, as and when needed, would have a negative impact on the Group’s financial condition and ability to pursue its business strategies. If the Group is unable to obtain funding, the Group could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Group may be unable to continue operations. Although management intends to pursue plans to obtain additional funding to finance its operations, there is no assurance that the Group will be successful in obtaining sufficient funding on terms acceptable to the Group to fund continuing operations, if at all, which could have material adverse effect on the Group’s business, results of operations and financial conditions. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Nonadjusting Events After Reporting Period [Abstract] | |
Events after the reporting period | 24. Events after the reporting period ATM proceeds From January 1, 2020 until February 28, 2020, the Group sold an additional 1,731,922 treasury shares at an average price of USD 3.65 per share, as part of its ATM program. Total gross proceeds amounted to USD 6.3 million. There were no other material events after the balance sheet date. |
Accounting principles applied_2
Accounting principles applied in the preparation of the consolidated financial statements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Accounting Policy [Abstract] | |
Basis of preparation | 2.1 Basis of preparation These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements are based on a historical cost basis. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2.5. Due to rounding, numbers presented throughout these consolidated financial statements may not add up precisely to the totals provided. All ratios and variances are calculated using the underlying amount rather than the presented rounded amount. |
Scope of consolidation | 2.2 Scope of consolidation Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Company currently consolidates the financial operations of its two fully-owned subsidiaries, ObsEva Ireland Ltd, which is registered in Cork, Ireland and organized under the laws of Ireland, and ObsEva USA Inc., which is registered and organized under the laws of Delaware, USA. ObsEva Ireland Ltd had no operations and no results of operations to report as of December 31, 2019 and 2018. |
Description Of Accounting Policy For Standards And Interpretations Explanatory | 2.3 Standards and interpretations published by the IASB The IASB and the International Financing Reporting Standards Interpretations Committee have recently issued new standards and interpretations to be applied to the Group’s consolidated financial statements. |
Leases | IFRS 16 - Leases On January 1, 2019, the Group adopted IFRS 16 Leases Leases and Related Interpretations In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review (there were no onerous contracts as at January 1, 2019); • accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases; • excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application; and • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and Interpretation 4 Determining whether an Arrangement contains a Lease The following table presents the reconciliation between the non-cancellable operating lease commitments reported as of December 31, 2018 and the lease liabilities recognized on January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 4.9%. (in USD ’000) Total Operating lease commitments disclosed as at December 31, 2018 3,074 Discounted using the Group’s incremental borrowing rate at the date of initial application 2,772 (Less): short-term and low-value leases recognized on a straight-line basis as expense (37 ) (Less): adjustments relating to changes in the index or rate affecting variable payments (28 ) Lease liability recognized as at January 1, 2019 2,707 Of which are: Current lease liabilities 577 Non-current lease liabilities 2,130 Right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet as at December 31, 2018. Right-of-use assets mainly relate to office buildings. The adoption of IFRS 16 Leases No other new standards and amendments applied by the Group in 2019 had a material impact on its consolidated financial statements. In addition, there are no new standards and amendments published but not yet effective that are expected to have a material impact on the consolidated financial statements of the Group. Leases From January 1, 2019, the Group has changed its accounting policy for leases where the Group is a lessee, as explained in note 2.3. The Group leases various office buildings and equipment, which are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. 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 (including in-substance 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, • amounts expected to be payable by the Group under residual value guarantees, • the exercise price of a purchase option if the Group is reasonably certain to exercise that option, • lease payments to be made under reasonably certain extension options, and • payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. 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 lessee’s incremental borrowing rate is used, being the rate that the individual lessee 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. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce 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. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise small items of office furniture and equipment. Until December 31, 2018, leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor were classified as operating leases, and payments made are charged to the statement of comprehensive loss on a straight-line basis. The Group did not have any finance leases. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. |
Current assets | Current assets Other receivables and other current receivables or prepaid expenses are carried at their nominal value. Individual receivables that are known to be uncollectible are written off by reducing the carrying amount directly. The Group considers that there is evidence of impairment if any of the following indicators are present: • significant financial difficulties of the debtor; • probability that the debtor will enter bankruptcy or financial reorganization; and • default or delinquency in payments (more than 30 days overdue). The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all receivables. |
Plant and Equipment | Furniture, fixtures and equipment Furniture, fixtures and equipment are carried at cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated using the straight-line method, on the basis of the following useful lives: • furniture 5 years • hardware 3 years • leasehold improvement duration of lease Furniture, fixtures and equipment are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, on an individual basis. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. |
Intangible assets | Intangible assets Separately acquired patents, licenses and other intangible assets are recorded at historical cost and subsequently measured at cost less accumulated amortization and any impairment losses. The acquisition of certain intangible assets, mainly licenses, may involve additional payments contingent on the occurrence of specific events or milestones. Unless the Group already has a present obligation to make the payment at a future date, the initial measurement of the intangible asset does not include such contingent payments. Instead, such payments are subsequently capitalized as intangible assets when the contingency or milestone occurs. Estimated useful life is the lower of legal duration and economic useful life, which does not exceed 20 years. The estimated useful life of the intangible assets is annually reviewed, and if necessary, the future amortization charge is accelerated. For licenses, the amortization starts when the assets become available for use, generally once proper regulatory and marketing approval are obtained. Intangible assets are subject to impairment testing annually, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Post-employment benefits | Post-employment benefits Group companies operate two pension schemes. All employees of ObsEva SA participate in a retirement defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary, using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in the consolidated statement of comprehensive loss. During 2017, ObsEva USA, Inc established a 401K, defined contribution plan, for the employees of the company. A defined contribution plan is a pension plan under which the amounts paid by the employer are fixed in advance. The plan assets are held by a third party custodian. ObsEva USA, Inc. contributions to the defined contribution plan are charged to the income statement as incurred. The Group has no further obligation once the contributions have been paid. |
Borrowings | Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings that are due within 12 months after the end of the reporting period are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability until more than 12 months after the reporting period. |
Equity | Equity Incremental costs directly attributable to the issuance of common shares and options are recognized as a deduction from equity, net of any tax effects. |
Research and development | Research and development Research expenses are charged to the consolidated statement of comprehensive loss as incurred. Development expenses are capitalized as intangible assets when it is probable that future economic benefits will flow to the Group, and the following criteria are fulfilled: • it is technically feasible to complete the intangible asset so that it will be available for use or sale; • management intends to complete the intangible asset and use or sell it; • there is an ability to use or sell the intangible asset; • the asset will generate probable future economic benefits and demonstrate the existence of a market; • adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and • the expenditure attributable to the intangible asset during its development can be reliably measured. In the opinion of management, due to uncertainties inherent in the development of the Group’s product candidates, the criteria for development costs to be recognized as an asset as defined by IAS 38 Intangible Assets |
Foreign currencies | Foreign currencies Functional and presentation currency Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which each Group’s entity operates (the “functional currencies”). The functional and presentation currencies of the Company is the US dollar (USD), which is also the functional currency of ObsEva USA, Inc. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of comprehensive loss, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of comprehensive loss on a net basis within other income or other expenses. |
Share-based compensation | Share-based compensation The Group operates two equity incentive plans. A share-based, equity-settled, plan was formally set-up by the Group in 2013 (the “2013 EIP”). Participants eligible for awards under the 2013 EIP are executives, directors, employees, agents and consultants. The fair value of the shares granted under the 2013 EIP is determined at each grant date by using either an option pricing method that uses a Black-Scholes model or a hybrid method, as appropriate, both based on a combination of the discounted cash flow method, under the income approach, and the backsolve method. A share-based, equity-settled, plan was formally set-up by the Group in 2017 (the “2017 EIP”). Participants eligible for awards under this plan are executives, directors, employees, agents and consultants. The fair value of the stock-options granted under the 2017 EIP is determined at each grant date by using a Black-Scholes model. When the equity instruments granted do not vest until the counterparty completes a specified period of services, the Group accounts for those services as they are rendered by the counterparty, during the vesting period, with a corresponding increase in equity. |
Deferred income taxes | Deferred income taxes Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit and loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. |
Segment information | Segment information The Group operates in one segment, which is the research and development of innovative women’s reproductive, health and pregnancy therapeutics. The marketing and commercialization of such therapeutics depend, in large part, on the success of the development phase. The Chief Executive Officer of the Company (Chief Operating Decision Maker) reviews the consolidated statement of operations of the Group on an aggregated basis and manages the operations of the Group as a single operating segment. The Group currently generates no revenue from the sales of therapeutics products. The Group’s activities are not affected by any significant seasonal effect. The geographical analysis of non-current assets is as follows: As at December 31, in USD ‘000 2019 2018 Switzerland 28,391 21,954 USA 779 246 Total non-current assets 29,170 22,200 The geographical analysis of operating expenses is as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Switzerland 102,492 73,050 63,956 USA 4,619 4,119 3,524 Total operating expenses 107,111 77,169 67,480 |
Critical accounting estimates and judgments | 2.5 Critical accounting estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will not necessarily equal to related actual outcome. The following areas involve a higher degree of judgement or complexity or are areas where assumptions and estimates can have a significant impact on the consolidated financial statements: • Post-employment obligations: the actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty (note 11); • Leases: the calculation of right of use assets and lease liabilities involves making assumptions about lessee’s incremental borrowing rate and renewal options, which are subject to judgment (note 9); • Share-based compensation: the determination of the fair value of the equity instruments granted involves the use of certain assumptions subject to judgement (note 20); • Commencement of depreciation and amortization: the depreciation and amortization starts when the assets are available for use in the manner intended by management, which requires judgement (notes 7 and 8); • Research and development costs: the Group recognizes expenditure incurred in carrying out its research and development activities until it becomes probable that future economic benefits will flow to the Group, which results in recognizing such costs as intangible assets, involving a certain degree of judgement (note 15); • Deferred taxes: the recognition of deferred tax assets requires assessment of whether it is probable that sufficient future taxable profit will be available against which the deferred tax assets can be utilized (note 18); • Impairment of assets: as part of impairment tests, the recoverable amounts of tested assets have been determined based on fair value calculations requiring the use of certain assumptions, subject to judgement (note 8). |
Accounting principles applied_3
Accounting principles applied in the preparation of the consolidated financial statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Accounting Policy [Abstract] | |
Schedule of Reconciliation between the Non-cancellable Operating Lease | The following table presents the reconciliation between the non-cancellable operating lease commitments reported as of December 31, 2018 and the lease liabilities recognized on January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 4.9%. (in USD ’000) Total Operating lease commitments disclosed as at December 31, 2018 3,074 Discounted using the Group’s incremental borrowing rate at the date of initial application 2,772 (Less): short-term and low-value leases recognized on a straight-line basis as expense (37 ) (Less): adjustments relating to changes in the index or rate affecting variable payments (28 ) Lease liability recognized as at January 1, 2019 2,707 Of which are: Current lease liabilities 577 Non-current lease liabilities 2,130 |
Summary of Useful Lives of Furniture Fixtures and Equipment | Furniture, fixtures and equipment are carried at cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated using the straight-line method, on the basis of the following useful lives: • furniture 5 years • hardware 3 years • leasehold improvement duration of lease |
Summary of Geographical Analysis of Assets | The geographical analysis of non-current assets is as follows: As at December 31, in USD ‘000 2019 2018 Switzerland 28,391 21,954 USA 779 246 Total non-current assets 29,170 22,200 |
Summary of Geographical Analysis of Operating Expenses | The geographical analysis of operating expenses is as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Switzerland 102,492 73,050 63,956 USA 4,619 4,119 3,524 Total operating expenses 107,111 77,169 67,480 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Risks Management [Abstract] | |
Schedule of Sensitivity of Profit or Loss to Changes in Exchange Rates | The sensitivity of profit or loss to changes in the exchange rates in the reported periods are as follows: EUR positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 1,248 1,248 -5 % (1,248 ) (1,248 ) 2018 +5 % 770 770 -5 % (770 ) (770 ) GBP positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 139 139 -5 % (139 ) (139 ) 2018 +5 % 110 110 -5 % (110 ) (110 ) CHF positions Increase /decrease exchange rate vs USD Effect on profit before tax (in USD ‘000) Effect on shareholders’ equity (in USD ‘000) 2019 +5 % 884 884 -5 % (884 ) (884 ) 2018 +5 % 607 607 -5 % (607 ) (607 ) |
Schedule of Sensitivity to Changes in Market Interest Rates | The below table shows sensitivity to changes in market interest rates for the Group’s debt instruments. Impact on loss before taxes in USD ‘000 2019 2018 Interest rates - increase by 100 basis points (47 ) — Interest rates - decrease by 100 basis points — — |
Schedule of Reconciliation of Net Debt Position | A reconciliation of the net debt position is shown in the table below. (in USD ’000) Borrowings Lease liabilities Total liabilities from financing activities Cash and cash equivalents Total Net debt as at January 1, 2018 — — — 110,841 110,841 Cash flows — — — 27,440 27,440 Foreign exchange adjustments — — — 359 359 Net debt as at December 31, 2018 — — — 138,640 138,640 Recognized on adoption of IFRS 16 — (2,707 ) (2,707 ) — (2,707 ) — (2,707 ) (2,707 ) 138,640 135,933 Cash flows (24,736 ) 690 (24,047 ) (69,030 ) (93,077 ) Interest expense (368 ) (119 ) (486 ) — (486 ) Foreign exchange adjustments — (23 ) (23 ) (240 ) (263 ) Net debt as at December 31, 2019 (25,104 ) (2,159 ) (27,263 ) 69,370 42,107 |
Summary of Maturity Profile of Financial Liabilities | In addition, the maturity profile of the Group’s financial liabilities is presented in the table below. (in USD ’000) Carrying amount Total undiscounted cash flows up to 1 year 1 to 5 years Maturities more than 5 years Trade and other payables (7,873 ) (7,873 ) (7,873 ) — — Borrowings (25,104 ) (34,852 ) (2,206 ) (32,646 ) — Lease liabilities (2,159 ) (2,336 ) (709 ) (1,627 ) — Total as at December 31, 2019 (35,136 ) (45,061 ) (10,788 ) (34,273 ) — |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As at December 31, in USD ‘000 2019 2018 Bank deposits 69,370 138,640 Interest bearing deposits — — Total cash and cash equivalents 69,370 138,640 |
Schedule of Percentage of Bank Held Cash and Cash Equivalents Split by Currency | Split by currency: 2019 2018 CHF 14 % 5 % USD 73 % 89 % EUR 12 % 5 % GBP 1 % 1 % |
Prepaid and accrued expenses (T
Prepaid and accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Default Root [Abstract] | |
Summary of Accrued Expenses | As at December 31, 2019 and 2018, accrued expenses consisted of the following: As at December 31, in USD ‘000 2019 2018 Accrued research and development expenses 7,244 10,734 Accrued compensation-related expenses 1,882 2,364 Accrued other expenses 1,292 1,065 Total accrued expenses 10,418 14,163 |
Furniture, fixtures and equip_2
Furniture, fixtures and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Schedule of Furniture, Fixtures and Equipment | in USD ‘000 2019 2018 Net book value as at January 1 319 323 Additions 46 105 Depreciation charge (120 ) (109 ) Currency translation effects — — Net book value as at December 31 245 319 Total cost 653 600 Accumulated depreciation (408 ) (281 ) |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Intangible Assets [Abstract] | |
Schedule of Detailed Information of Intangible Assets | in USD ‘000 2019 2018 Net book value as at January 1 21,608 21,608 Additions 5,000 — Amortization charge — — Currency translation effects — — Net book value as at December 31 26,608 21,608 Total cost 26,608 21,608 Accumulated amortization — — |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Liabilities [Abstract] | |
Summary of Right-of-Use Assets Related to Lease Shown in Consolidated Financial Statements | Right-of-use assets in USD ‘000 2019 Net book value as at January 1* 2,658 Additions — Depreciation charge (616 ) Currency translation effects — Net book value as at December 31 2,042 Total cost 2,658 Accumulated depreciation (616 ) *Value recognized upon transition to IFRS 16. See note 2.3 |
Summary of Lease Liabilities Related to Lease Shown in Consolidated Financial Statements | Lease liabilities As at in USD ‘000 December 31, 2019 January 1, 2019* Current 618 577 Non-current 1,541 2,130 Total lease liabilities 2,159 2,707 *Value recognized upon transition to IFRS 16. See note 2.3 |
Post-employment benefits (Table
Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Defined Benefit Plans [Abstract] | |
Schedule of Defined Benefit Plans | in USD ‘000 2019 2018 Change in defined benefit obligation Defined benefit obligation at January 1, (14,502 ) (12,230 ) Current service cost (1,269 ) (1,046 ) Interest cost (140 ) (101 ) Net benefits paid (4,071 ) (888 ) Currency translation effects (536 ) 137 Remeasurements: Impact of plan amendment 527 172 Effect of changes in demographic assumptions 366 — Effect of changes in financial assumptions (3,037 ) 96 Effect in experience assumptions (2,043 ) (642 ) Defined benefit obligation at December 31, (24,705 ) (14,502 ) |
Schedule of Fair Value of Plan Assets | in USD ‘000 2019 2018 Change in plan assets Fair value of plan assets at January 1, 10,955 9,131 Interest income 115 80 Employer contributions 622 479 Employee contributions 622 479 Net benefits paid 4,071 888 Currency translation effects 354 (104 ) Remeasurements: return on plan assets (excluding interest income) 20 2 Fair value of plan assets at December 31, 16,759 10,955 |
Summary of Components of Defined Benefit Cost | Year ended December 31, in USD ‘000 2019 2018 Components of defined benefit cost Current service cost 1,269 1,046 Interest expense on defined benefit obligation 140 101 Interest income on plan assets (115 ) (80 ) Employee contributions (622 ) (479 ) Impact of plan amendment (527 ) (172 ) Total included in staff costs (note 16) 145 416 |
Summary of Remeasurement Components Recognized in Other Comprehensive Loss | Year ended December 31, in USD ‘000 2019 2018 Remeasurements recognized in other comprehensive loss Effect of changes in demographic assumptions 366 — Effect of changes in financial assumptions (3,037 ) 96 Effect in experience assumptions (2,043 ) (642 ) Return on plan assets (excluding interest income) 20 2 Total remeasurements recognized as other comprehensive loss (4,694 ) (544 ) Cumulative amount of remeasurements immediately recognized in other comprehensive loss (8,819 ) (4,125 ) |
Summary of Amounts Recognized in Statement of Financial Position | As at December 31, in USD ‘000 2019 2018 Amounts recognized in the statement of financial position Defined benefit obligation (24,705 ) (14,502 ) Fair value of plan assets 16,759 10,955 Net liability (7,946 ) (3,547 ) |
Summary of Net Defined Benefit Liability | in USD ‘000 2019 2018 Change in defined benefit liability Net defined benefit liability at January 1, (3,547 ) (3,099 ) Defined benefit cost included in statement of comprehensive loss (145 ) (416 ) Total remeasurements included in other comprehensive loss (4,694 ) (544 ) Employer contributions 622 479 Currency translation effects (182 ) 33 Net defined benefit liability at December 31, (7,946 ) (3,547 ) |
Summary of Percentage of Assets Amount Contributed to Fair Value of Plan Assets | The detailed structures and assets held at December 31, 2018, are as follows: Plan assets As at December 31, 2018 Cash 3.0 % Bonds 59.0 % Shares 12.9 % Real estate 17.1 % Mortgages 8.0 % Alternative investments — Total 100.0 % |
Summary of Principal Actuarial Assumptions | The principal actuarial assumptions used were as follows: 2019 2018 Discount rate 0.20% 0.85% Salary increase (including inflation) 1.00% 1.00% Rate of pension increases 0.25% 0.25% Post-employment mortality table LPP 2015 G LPP 2015 G |
Summary of Sensitivity Analysis of Group Defined Obligation | Sensitivity analysis illustrates the sensitivity of the Group defined benefit obligation at December 31, 2019 by varying the discount rate and the salary increase rate by plus / minus 50 basis points: in USD ‘000 Discount rate Discount rate Salary increase Salary increase Rate of pension increase Rate of pension increase Sensitivity analysis plus 50bps minus 50bps plus 50bps minus 50bps plus 25bps minus 25bps Discount rate 0.70 % (0.30 )% 0.20 % 0.20 % 0.20 % 0.20 % Salary increase 1.00 % 1.00 % 1.50 % 0.50 % 1.00 % 1.00 % Rate of pension increases 0.25 % 0.25 % 0.25 % 0.25 % 0.50 % 0.00 % Defined benefit obligation (22,399 ) (27,416 ) (24,754 ) (24,658 ) (25,426 ) (24,022 ) Average duration of the defined benefit obligation 2019 2018 Duration in years 20.2 18.9 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Summary of Credit Facility | The credit facility is presented in the balance sheet as follows: As at December 31, in USD ‘000 2019 2018 Face value of Oxford loan 25,000 — Transaction costs (264 ) — 24,736 — Interest expense 1,067 — Interest paid (699 ) — Total borrowings 25,104 — Of which are: Current 187 — Non-current 24,917 — |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Summary of Shareholders' Equity | in USD ‘000 Number of common shares Share capital Share premium Total January 1, 2018 36,342,945 2,864 219,335 222,199 Issuance of shares - EIP 2013 347,509 27 2,947 2,974 Issuance of shares - June 2018 offering 5,056,721 392 77,431 77,823 Issuance 1,600,851 130 19,881 20,011 Share issuance costs — — (6,160 ) (6,160 ) Exercise of stock-options - EIP 2017 95,885 7 1,131 1,138 December 31, 2018 43,443,911 3,420 314,565 317,985 in USD ‘000 Number of common shares Share capital Share premium Total January 1, 2019 43,443,911 3,420 314,565 317,985 Issuance of shares - EIP 2013 261,984 21 2,696 2,717 Issuance 691,133 56 3,498 3,554 Share issuance costs — — (130 ) (130 ) Exercise of stock-options - EIP 2017 26,420 2 326 328 December 31, 2019 44,423,448 3,499 320,955 324,454 |
Summary of Authorized Share Capital | The authorized share capital that is not outstanding is as follows: As at December 31, Number of shares 2019 2018 Authorized share capital 19,681,753 15,565,620 |
Operating expenses by nature (T
Operating expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expense By Nature [Abstract] | |
Schedule of Operating Expenses by Nature | Year ended December 31, in USD ‘000 2019 2018 2017 External research and development costs 70,531 49,480 43,268 Staff costs (note 16) 24,556 19,537 17,999 Professional fees 7,072 3,871 2,862 Rents 21 827 592 Travel expenses 1,398 1,044 1,073 Patent registration costs 882 1,002 426 Depreciation 737 109 70 Other 1,914 1,299 1,190 Total operating expenses by nature 107,111 77,169 67,480 |
Summary of Depreciation Expense | The depreciation expense has been allocated as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Research and development expenses 429 63 44 General and administrative expenses 308 46 26 Total depreciation 737 109 70 |
Staff costs (Tables)
Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Staffing Costs [Abstract] | |
Summary of Staff Costs | Year ended December 31, in USD ‘000 2019 2018 2017 Wages and salaries 10,403 9,023 7,715 Social charges 2,124 946 993 Post-employment benefits expense 145 416 435 Share-based payments 11,884 9,152 8,856 Total staff costs 24,556 19,537 17,999 |
Finance income and expense (Tab
Finance income and expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis Of Income And Expense [Abstract] | |
Finance Income And Expense Consisting Of Foreign Exchange Gain And Loss And interest expense Associated With Lease Liabilities And Debt Instruments Explanatory | Our finance income and expense primarily consist of foreign exchange gain and loss as well as interest expense associated with our lease liabilities and debt instruments. Year ended December 31, 2019 2018 2017 (in thousands) Foreign exchange (loss) / gain $ (442 ) $ 393 $ 589 Interest expense (1,186 ) — — Finance result, net $ (1,628 ) $ 393 $ 589 |
Income taxes and deferred tax_2
Income taxes and deferred taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Income Tax [Abstract] | |
Schedule of Unrecorded Tax Losses Carry Forwards | The following table details the tax losses carry forwards of the Company and their respective expiring dates. Expiring tax losses As at December 31, in USD ‘000 2019 2018 2020 2,950 2,896 2021 11,687 11,473 2022 16,394 16,093 2023 28,879 28,349 2024 59,103 58,019 2025 68,662 67,403 2026 99,915 — Total unrecorded tax losses carry forwards 287,590 184,233 |
Summary of Difference Between Income Tax Expense at Applicable Group Tax Rate and Effective Income Tax Expense | The following elements explain the difference between the income tax expense at the applicable Group tax rate and the effective income tax expense: Year ended December 31, 2019 in USD ‘000 ObsEva SA ObsEva USA Total Group Net loss before tax (107,120 ) (1,603 ) (108,723 ) Statutory tax rate (blended at Group level) 7.8 % 27.3 % 8.1 % Income tax credit at statutory tax rates (8,355 ) (438 ) (8,793 ) Tax impact of permanent differences 770 76 846 Temporary differences not recognized as deferred tax assets — 448 448 Adjustments for current tax of prior periods — — — Tax on losses not recognized as deferred tax assets 7,586 (19 ) 7,567 Effective income tax expense — 67 67 Effective tax rate 0.0 % (4.2 )% (0.1 )% Year ended December 31, 2018 in USD ‘000 ObsEva SA ObsEva USA Total Group Net loss before tax (75,616 ) (1,145 ) (76,761 ) Statutory tax rate (blended at Group level) 7.8 % 27.3 % 8.1 % Income tax credit at statutory tax rates (5,898 ) (313 ) (6,211 ) Tax impact of permanent differences 602 76 678 Temporary differences not recognized as deferred tax assets — 251 251 Adjustments for current tax of prior periods — (59 ) (59 ) Tax on losses not recognized as deferred tax assets 5,296 — 5,296 Effective income tax credit — (45 ) (45 ) Effective tax rate 0.0 % 3.9 % 0.1 % |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss per Share | The basic loss per share is calculated by dividing the loss of the period attributable to the ordinary shares by the weighted average number of ordinary shares (common and non-voting) outstanding during the period as follows: Year ended December 31, 2019 Common shares Net loss attributable to shareholders (in USD ‘000) (108,790) Weighted average number of shares outstanding 43,674,746 Basic and diluted loss per share (in USD) (2.49) Year ended December 31, 2018 Common shares Net loss attributable to shareholders (in USD ‘000) (76,716) Weighted average number of shares outstanding 40,172,498 Basic and diluted loss per share (in USD) (1.91) Year ended December 31, 2017 Common shares Net loss attributable to shareholders (in USD ‘000) (66,926) Weighted average number of shares outstanding 29,799,047 Basic and diluted loss per share (in USD) (2.25) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |
Schedule of Recognized Share-based Payment Expenses | The total expenses arising from share-based payment transactions recognized during the period as part of staff costs were as follows: Year ended December 31, in USD ‘000 2019 2018 2017 Employee 2013 EIP 1,006 2,242 5,497 Employee 2017 EIP 10,878 6,910 3,359 Total share-based compensation 11,884 9,152 8,856 |
Schedule of Vesting of Shares | The Group has no present obligation to repurchase or settle the shares in cash. 2019 2018 2017 Number of shares issued under the 2013 EIP 261,984 347,509 454,548 Expense arising from the 2013 EIP (in USD ’000) 1,006 2,242 5,497 |
Movements in Number of Stock-options Outstanding Under 2017 EIP | Movements in the number of stock-options outstanding under the 2017 EIP were as follows: 2019 2018 Average exercise price (USD) Number of options Average exercise price (USD) Number of options At January 1, 11.39 3,028,275 9.19 1,866,740 Granted 8.89 1,683,303 13.98 1,317,420 Forfeited/Expired 10.94 (58,773 ) 6.98 (60,000 ) Exercised 7.32 (26,420 ) 7.01 (95,885 ) At December 31, 10.51 4,626,385 11.39 3,028,275 |
Range of Exercise Prices and Expiry Dates Outstanding Stock-options | The weighted average share price at the date of exercise of options exercised during the years ended December 31, 2019 and 2018 was USD 11.64 and USD 13.04, respectively. The outstanding stock-options have the following range of exercise prices and remaining contractual life: As at December 31, Range of exercise prices 2019 2018 USD 15.00 to USD 17.99 361,500 361,500 USD 12.00 to USD 14.99 1,276,240 1,109,370 USD 9.00 to USD 11.99 1,458,595 1,185,905 USD 6.00 to USD 8.99 1,530,050 371,500 Total outstanding options 4,626,385 3,028,275 out of which are exercisable 1,312,557 447,538 Weighted-average remaining contractual life (in years) 8.8 9.2 |
Significant Inputs to Model to Determine Weighted Average Fair Value of Stock-options Granted | The weighted average fair value of the stock-options granted during the years ended December 31, 2019 and 2018, determined using a Black-Scholes model was USD 6.45 and USD 10.36, respectively. The significant inputs to the model were: 2019 2018 Weighted average share price at grant date USD 8.89 USD 13.98 Weighted average exercise price USD 8.89 USD 13.98 Weighted average 10-year volatility 65 % 65 % Dividend yield 0 % 0 % Weighted average 10-year risk free rate 1.88 % 3.06 % |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Schedule of Operating Lease Commitments | Operating lease commitments The Group leases arrangements mostly relate to buildings offices for its headquarters in Geneva, Switzerland and its subsidiary’s lease in Boston, Massachusetts, USA. From January 1, 2019, the Group has applied IFRS 16 Leases As at December 31, in USD ‘000 2019 2018 Within 1 year — 705 Later than 1 year and no later than 5 years — 2,369 Later than 5 years — — Total — 3,074 |
Related parties transactions (T
Related parties transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Summary of Total Remuneration Recorded for Members of the Board of Directors and Executive Committee | The following table sets forth the total remuneration recorded for members of the Board of Directors and Executive Committee: Year ended December 31, in USD ‘000 2019 2018 Short-term employee benefits (including base and variable cash remuneration) 4,181 4,150 Post-employment benefits 186 117 Share-based payments 8,485 6,125 Total 12,852 10,392 |
General Information - Additiona
General Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of General Information About Financial Statements [Abstract] | |
Name of reporting entity | ObsEva SA |
Date of foundation of entity | Nov. 14, 2012 |
Country of incorporation | Geneva, Switzerland |
Details about operations of the entity | The Group is focused on the development and commercialization of novel therapeutics for serious conditions that compromise women’s reproductive health and pregnancy. The Group has a portfolio of three mid- to late-stage development in-licensed compounds (linzagolix, OBE022 and nolasiban) being developed in four indications. The Group has no currently marketed products. |
Accounting Principles Applied_4
Accounting Principles Applied in the Preparation of the Consolidated Financial Statements - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure of voluntary change in accounting policy [Line Items] | ||
Weighted average lessee’s incremental borrowing rate | 4.90% | 4.90% |
Top of range [Member] | ||
Disclosure of voluntary change in accounting policy [Line Items] | ||
Estimated useful life of intangible assets | 20 years |
Accounting Principles Applied_5
Accounting Principles Applied in the Preparation of the Consolidated Financial Statements - Summary of Reconciliation Between Non-cancellable Operating Lease Commitments and Lease Liabilities Recognized (Detail) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Non Cancellable Operating Lease Commitments [Abstract] | |||
Operating lease commitments disclosed as at December 31, 2018 | $ 3,074 | ||
Discounted using the Group’s incremental borrowing rate at the date of initial application | $ 2,772 | ||
(Less): short-term and low-value leases recognized on a straight-line basis as expense | (37) | ||
(Less): adjustments relating to changes in the index or rate affecting variable payments | (28) | ||
Lease liability recognized | 2,707 | $ 2,159 | |
Of which are: | |||
Current lease liabilities | 577 | 618 | |
Non-current lease liabilities | $ 2,130 | $ 1,541 |
Accounting Principles Applied_6
Accounting Principles Applied in the Preparation of the Consolidated Financial Statements - Summary of Useful Lives of Furniture Fixtures and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of furniture, fixtures and equipment | 5 years |
Hardware [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of furniture, fixtures and equipment | 3 years |
Leasehold improvement [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Useful lives of furniture, fixtures and equipment | duration of lease |
Accounting Principles Applied_7
Accounting Principles Applied in the Preparation of the Consolidated Financial Statements - Summary of Geographical Analysis of Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Geographical Areas [Line Items] | ||
Total non-current assets | $ 29,170 | $ 22,200 |
Switzerland [Member] | ||
Disclosure Of Geographical Areas [Line Items] | ||
Total non-current assets | 28,391 | 21,954 |
USA [Member] | ||
Disclosure Of Geographical Areas [Line Items] | ||
Total non-current assets | $ 779 | $ 246 |
Accounting Principles Applied_8
Accounting Principles Applied in the Preparation of the Consolidated Financial Statements - Summary of Geographical Analysis of Operating Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Geographical Areas [Line Items] | |||
Total operating expenses | $ 107,111 | $ 77,169 | $ 67,480 |
Switzerland [Member] | |||
Disclosure Of Geographical Areas [Line Items] | |||
Total operating expenses | 102,492 | 73,050 | 63,956 |
USA [Member] | |||
Disclosure Of Geographical Areas [Line Items] | |||
Total operating expenses | $ 4,619 | $ 4,119 | $ 3,524 |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Sensitivity of Profit or Loss to Changes in Exchange Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EUR [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Increase exchange rate vs USD | 5.00% | 5.00% |
Increase effect on profit before tax | $ 1,248 | $ 770 |
Increase effect on shareholders' equity | $ 1,248 | $ 770 |
Decrease exchange rate vs USD | (5.00%) | (5.00%) |
Decrease effect on profit before tax | $ (1,248) | $ (770) |
Decrease effect on shareholders' equity | $ (1,248) | $ (770) |
GBP [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Increase exchange rate vs USD | 5.00% | 5.00% |
Increase effect on profit before tax | $ 139 | $ 110 |
Increase effect on shareholders' equity | $ 139 | $ 110 |
Decrease exchange rate vs USD | (5.00%) | (5.00%) |
Decrease effect on profit before tax | $ (139) | $ (110) |
Decrease effect on shareholders' equity | $ (139) | $ (110) |
CHF [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Increase exchange rate vs USD | 5.00% | 5.00% |
Increase effect on profit before tax | $ 884 | $ 607 |
Increase effect on shareholders' equity | $ 884 | $ 607 |
Decrease exchange rate vs USD | (5.00%) | (5.00%) |
Decrease effect on profit before tax | $ (884) | $ (607) |
Decrease effect on shareholders' equity | $ (884) | $ (607) |
Financial Risk Management - S_2
Financial Risk Management - Schedule of Sensitivity to Changes in Market Interest Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Rate Risk 100 Basis Point Increase [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Impact on loss before taxes | $ (47) | $ 0 |
Interest Rate Risk 100 Basis Point Decrease [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Impact on loss before taxes | $ 0 | $ 0 |
Financial Risk Management - S_3
Financial Risk Management - Schedule of Sensitivity to Changes in Market Interest Rates (Parenthetical) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Interest Rate Risk 100 Basis Point Increase [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Interest rate increase (decrease) | 1.00% | 1.00% |
Interest Rate Risk 100 Basis Point Decrease [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Interest rate increase (decrease) | (1.00%) | (1.00%) |
Financial Risk Management - S_4
Financial Risk Management - Schedule of Reconciliation of Net Debt Position (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Financial Risk Management [Line Items] | ||
Net debt as at the beginning of the period | $ 138,640 | $ 110,841 |
Cash flows | (93,077) | 27,440 |
Foreign exchange adjustments | (263) | 359 |
Net debt as at the end of the period | 42,107 | 138,640 |
Recognized on adoption of IFRS 16 | (2,707) | |
Net debt after adoption of IFRS 16 | 135,933 | |
Interest expense | (486) | |
Borrowings [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Net debt as at the beginning of the period | 0 | 0 |
Cash flows | (24,736) | 0 |
Foreign exchange adjustments | 0 | 0 |
Net debt as at the end of the period | (25,104) | 0 |
Recognized on adoption of IFRS 16 | 0 | |
Net debt after adoption of IFRS 16 | 0 | |
Interest expense | (368) | |
Lease Liabilities [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Net debt as at the beginning of the period | 0 | 0 |
Cash flows | 690 | 0 |
Foreign exchange adjustments | (23) | 0 |
Net debt as at the end of the period | (2,159) | 0 |
Recognized on adoption of IFRS 16 | (2,707) | |
Net debt after adoption of IFRS 16 | (2,707) | |
Interest expense | (119) | |
Liabilities from Financing Activities [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Net debt as at the beginning of the period | 0 | 0 |
Cash flows | (24,047) | 0 |
Foreign exchange adjustments | (23) | 0 |
Net debt as at the end of the period | (27,263) | 0 |
Recognized on adoption of IFRS 16 | (2,707) | |
Net debt after adoption of IFRS 16 | (2,707) | |
Interest expense | (486) | |
Cash and Cash Equivalents [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Net debt as at the beginning of the period | 138,640 | 110,841 |
Cash flows | (69,030) | 27,440 |
Foreign exchange adjustments | (240) | 359 |
Net debt as at the end of the period | 69,370 | $ 138,640 |
Recognized on adoption of IFRS 16 | 0 | |
Net debt after adoption of IFRS 16 | 138,640 | |
Interest expense | $ 0 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Maturity Profile of Financial Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure Of Financial Risk Management [Line Items] | ||
Trade and other payables | $ (7,873) | |
Borrowings | (25,104) | |
Lease liabilities | (2,159) | $ (2,707) |
Total as at December 31, 2019 | (35,136) | |
Trade and other payables, total undiscounted cash flows | (7,873) | |
Borrowings, total undiscounted cash flows | (34,852) | |
Lease liabilities, total undiscounted cash flows | (2,336) | |
Total undiscounted cash flows, as at December 31, 2019 | (45,061) | |
Up to 1 year [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Trade and other payables | (7,873) | |
Borrowings | (2,206) | |
Lease liabilities | (709) | |
Total as at December 31, 2019 | (10,788) | |
1 to 5 years [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Trade and other payables | 0 | |
Borrowings | (32,646) | |
Lease liabilities | (1,627) | |
Total as at December 31, 2019 | (34,273) | |
Maturities more than 5 years [Member] | ||
Disclosure Of Financial Risk Management [Line Items] | ||
Trade and other payables | 0 | |
Borrowings | 0 | |
Lease liabilities | 0 | |
Total as at December 31, 2019 | $ 0 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risks Management [Abstract] | |
Contract maturity of financial liabilities | 1 year |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Abstract] | |||||
Bank deposits | $ 69,370 | $ 138,640 | |||
Total cash and cash equivalents | $ 69,370 | $ 138,640 | $ 110,841 | $ 110,841 | $ 25,508 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Schedule of Percentage of Bank Held Cash and Cash Equivalents Split by Currency (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CHF [Member] | ||
Disclosure of cash and cash equivalents [Line Items] | ||
Percentage of bank held cash and cash equivalents | 14.00% | 5.00% |
USD [Member] | ||
Disclosure of cash and cash equivalents [Line Items] | ||
Percentage of bank held cash and cash equivalents | 73.00% | 89.00% |
EUR [Member] | ||
Disclosure of cash and cash equivalents [Line Items] | ||
Percentage of bank held cash and cash equivalents | 12.00% | 5.00% |
GBP [Member] | ||
Disclosure of cash and cash equivalents [Line Items] | ||
Percentage of bank held cash and cash equivalents | 1.00% | 1.00% |
Receivables and Payables - Addi
Receivables and Payables - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Within 1 year [Member] | |
Disclosure of receivables and payables [line items] | |
Contractual maturity of payables | 1 year |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Accrued Expenses [Abstract] | ||
Accrued research and development expenses | $ 7,244 | $ 10,734 |
Accrued compensation-related expenses | 1,882 | 2,364 |
Accrued other expenses | 1,292 | 1,065 |
Total accrued expenses | $ 10,418 | $ 14,163 |
Furniture, Fixtures and Equip_3
Furniture, Fixtures and Equipment - Schedule of Furniture, Fixtures and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Furniture, fixtures and equipment | $ 319 | $ 323 |
Additions | 46 | 105 |
Depreciation charge | (120) | (109) |
Furniture, fixtures and equipment | 245 | 319 |
Total cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Furniture, fixtures and equipment | 600 | |
Furniture, fixtures and equipment | 653 | 600 |
Accumulated depreciation and amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Furniture, fixtures and equipment | (281) | |
Furniture, fixtures and equipment | $ (408) | $ (281) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | May 09, 2019 | Apr. 25, 2017 | Nov. 19, 2015 | Aug. 28, 2013 | Jun. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2017 |
Disclosure of detailed information about intangible assets [Line Items] | |||||||||
Headroom amount | $ 110,000,000 | ||||||||
Intangible assets | 26,608,000 | $ 21,608,000 | $ 21,608,000 | ||||||
Purchase of intangible assets | 5,000,000 | $ 5,000,000 | |||||||
Additions | $ 5,000,000 | $ 0 | |||||||
Length of development cycle for intangible assets | 20 years | ||||||||
Discount factor based on assumed cost of capital | 15.00% | ||||||||
Merck Serono Licenses [Member] | |||||||||
Disclosure of detailed information about intangible assets [Line Items] | |||||||||
Purchase of intangible assets | $ 4,900,000 | ||||||||
Additions | $ 2,400,000 | ||||||||
Kissei License [Member] | |||||||||
Disclosure of detailed information about intangible assets [Line Items] | |||||||||
Upfront cash consideration to acquire in-license | $ 10,000,000 | ||||||||
Recognition and payment of milestone amount | $ 5,000,000 | $ 5,000,000 | |||||||
Impairment loss | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Net book value as at the beginning of the year | $ 21,608 | $ 21,608 |
Additions | 5,000 | 0 |
Amortization charge | 0 | 0 |
Currency translation effects | 0 | 0 |
Net book value as at the end of the year | 26,608 | 21,608 |
Total cost [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Net book value as at the beginning of the year | 21,608 | |
Net book value as at the end of the year | 26,608 | 21,608 |
Accumulated depreciation and amortization [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Net book value as at the beginning of the year | 0 | |
Net book value as at the end of the year | $ 0 | $ 0 |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets Related to Lease Shown in Consolidated Financial Statements (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Right-of-use Asset | $ 2,042 |
IFRS 16 [Member] | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Right-of-use Asset | 2,658 |
Depreciation charge | (616) |
Right-of-use Asset | 2,042 |
Total cost [Member] | IFRS 16 [Member] | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Right-of-use Asset | 2,658 |
Accumulated depreciation and amortization [Member] | IFRS 16 [Member] | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | |
Right-of-use Asset | $ (616) |
Leases - Additional information
Leases - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure Of Quantitative Information About Rightofuse Assets [Abstract] | ||
Cash outflow for leases | $ 0.7 | |
Weighted average lessee’s incremental borrowing rate | 4.90% | 4.90% |
Leases - Summary of Lease Liabi
Leases - Summary of Lease Liabilities Related to Lease Shown in Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Lease Liabilities [Abstract] | ||
Current lease liabilities | $ 618 | $ 577 |
Non-current lease liabilities | 1,541 | 2,130 |
Total lease liabilities | $ 2,159 | $ 2,707 |
Post- Employment Benefits - Sch
Post- Employment Benefits - Schedule of Defined Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in defined benefit obligation | ||
Defined benefit obligation beginning balance | $ (3,547) | $ (3,099) |
Current service cost | 1,269 | 1,046 |
Interest cost | 140 | 101 |
Currency translation effects | (182) | 33 |
Remeasurements: | ||
Impact of plan amendment | (527) | (172) |
Effect of changes in demographic assumptions | (366) | 0 |
Effect of changes in financial assumptions | 3,037 | (96) |
Effect in experience assumptions | 2,043 | 642 |
Defined benefit obligation ending balance | (7,946) | (3,547) |
Present value of defined benefit obligation [Member] | ||
Change in defined benefit obligation | ||
Defined benefit obligation beginning balance | (14,502) | (12,230) |
Current service cost | (1,269) | (1,046) |
Interest cost | (140) | (101) |
Net benefits paid | (4,071) | (888) |
Currency translation effects | (536) | 137 |
Remeasurements: | ||
Impact of plan amendment | 527 | 172 |
Effect of changes in demographic assumptions | 366 | 0 |
Effect of changes in financial assumptions | (3,037) | 96 |
Effect in experience assumptions | (2,043) | (642) |
Defined benefit obligation ending balance | $ (24,705) | $ (14,502) |
Post- Employment Benefits - S_2
Post- Employment Benefits - Schedule of Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets | ||
Fair value of plan assets, beginning balance | $ 3,547 | $ 3,099 |
Interest income | 115 | 80 |
Employer contributions | 622 | 479 |
Employee contributions | 622 | 479 |
Currency translation effects | 182 | (33) |
Remeasurements: return on plan assets (excluding interest income) | 20 | 2 |
Fair value of plan assets, ending balance | 7,946 | 3,547 |
Plan assets [Member] | ||
Change in plan assets | ||
Fair value of plan assets, beginning balance | 10,955 | 9,131 |
Interest income | 115 | 80 |
Employer contributions | 622 | 479 |
Employee contributions | 622 | 479 |
Net benefits paid | 4,071 | 888 |
Currency translation effects | 354 | (104) |
Remeasurements: return on plan assets (excluding interest income) | 20 | 2 |
Fair value of plan assets, ending balance | $ 16,759 | $ 10,955 |
Post- Employment Benefits - Sum
Post- Employment Benefits - Summary of Components of Defined Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of defined benefit cost | ||
Current service cost | $ 1,269 | $ 1,046 |
Interest cost | 140 | 101 |
Interest income on plan assets | (115) | (80) |
Employee contributions | (622) | (479) |
Impact of plan amendment | (527) | (172) |
Total included in staff costs | $ 145 | $ 416 |
Post- Employment Benefits - S_3
Post- Employment Benefits - Summary of Remeasurement Components Recognized in Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Remeasurements recognized in other comprehensive loss | ||
Effect of changes in demographic assumptions | $ 366 | $ 0 |
Effect of changes in financial assumptions | (3,037) | 96 |
Effect in experience assumptions | (2,043) | (642) |
Return on plan assets (excluding interest income) | 20 | 2 |
Total remeasurements recognized as other comprehensive loss | (4,694) | (544) |
Cumulative amount of remeasurements immediately recognized in other comprehensive loss | $ (8,819) | $ (4,125) |
Post- Employment Benefits - S_4
Post- Employment Benefits - Summary of Amounts Recognized in Statement of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts recognized in the statement of financial position | ||
Defined benefit obligation | $ (24,705) | $ (14,502) |
Fair value of plan assets | 16,759 | 10,955 |
Net liability | $ (7,946) | $ (3,547) |
Post- Employment Benefits - S_5
Post- Employment Benefits - Summary of Net Defined Benefit Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in defined benefit obligation | ||
Defined benefit obligation beginning balance | $ (3,547) | $ (3,099) |
Defined benefit cost included in statement of comprehensive loss | (145) | (416) |
Total remeasurements included in other comprehensive loss | (4,694) | (544) |
Employer contributions | 622 | 479 |
Currency translation effects | (182) | 33 |
Defined benefit obligation ending balance | $ (7,946) | $ (3,547) |
Post- Employment Benefits - S_6
Post- Employment Benefits - Summary of Percentage of Assets Amount Contributed to Fair Value of Plan Assets (Detail) | Dec. 31, 2018 |
Percentage Of Assets Amount Contributed To Fair Value Of Plan Assets [Abstract] | |
Cash | 3.00% |
Bonds | 59.00% |
Shares | 12.90% |
Real estate | 17.10% |
Mortgages | 8.00% |
Alternative investments | 0.00% |
Total | 100.00% |
Post- Employment Benefits - S_7
Post- Employment Benefits - Summary of Principal Actuarial Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Defined Benefit Plans [Abstract] | ||
Discount rate | 0.20% | 0.85% |
Salary increase (including inflation) | 1.00% | 1.00% |
Rate of pension increases | 0.25% | 0.25% |
Post-employment mortality table | LPP 2015 G | LPP 2015 G |
Post-Employment Benefits - Summ
Post-Employment Benefits - Summary of Sensitivity Analysis of Group Defined Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Discount rate | 0.20% | 0.85% |
Salary increase | 1.00% | 1.00% |
Rate of pension increases | 0.25% | 0.25% |
Average duration of the defined benefit obligation | 20 years 2 months 12 days | 18 years 10 months 24 days |
Discount rate plus 50bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | plus 50bps | |
Discount rate | 0.70% | |
Salary increase | 1.00% | |
Rate of pension increases | 0.25% | |
Defined benefit obligation | $ (22,399) | |
Discount rate minus 50bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | minus 50bps | |
Discount rate, adjustment | (0.30%) | |
Salary increase | 1.00% | |
Rate of pension increases | 0.25% | |
Defined benefit obligation | $ (27,416) | |
Salary increase plus 50bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | plus 50bps | |
Discount rate | 0.20% | |
Salary increase | 1.50% | |
Rate of pension increases | 0.25% | |
Defined benefit obligation | $ (24,754) | |
Salary increase minus 50bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | minus 50bps | |
Discount rate | 0.20% | |
Salary increase | 0.50% | |
Rate of pension increases | 0.25% | |
Defined benefit obligation | $ (24,658) | |
Rate of pension increase plus 25bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | plus 25bps | |
Discount rate | 0.20% | |
Salary increase | 1.00% | |
Rate of pension increases | 0.50% | |
Defined benefit obligation | $ (25,426) | |
Rate of pension increase minus 25 bps [Member] | ||
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items] | ||
Sensitivity analysis | minus 25bps | |
Discount rate | 0.20% | |
Salary increase | 1.00% | |
Rate of pension increases | 0.00% | |
Defined benefit obligation | $ (24,022) |
Post-employment Benefits - Addi
Post-employment Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Defined Benefit Plans [Line Items] | ||
Expected contributions paid by employer under post-employment benefit plans | $ 622,000 | $ 479,000 |
Post-employment benefit plans [Member] | ||
Disclosure Of Defined Benefit Plans [Line Items] | ||
Expected contributions paid by employer under post-employment benefit plans | $ 730,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | Aug. 07, 2019 | Aug. 31, 2019USD ($)Tranche |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate basis | thirty day U.S. LIBOR, plus 6.25% | |
Borrowings, interest rate | 10.32% | |
Borrowings, maturity | August 1, 2024 | |
Final fee payment | 6.75% | |
Floating interest rate [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, adjustment to interest rate basis | 6.25% | |
Bottom of range [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Borrowings, interest rate | 8.68% | |
Loan and Security Agreement with Oxford Finance LLC [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Maximum borrowing capacity of term loan | $ 75,000,000 | |
Number of tranches | Tranche | 3 | |
Transaction costs | $ 300,000 | |
Loan and Security Agreement with Oxford Finance LLC [Member] | Tranche one [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Gross proceeds | 25,000,000 | |
Loan and Security Agreement with Oxford Finance LLC [Member] | Tranche two [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Loan to be drawn | 25,000,000 | |
Loan and Security Agreement with Oxford Finance LLC [Member] | Tranche three [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Loan to be drawn | $ 25,000,000 |
Borrowings - Summary of Credit
Borrowings - Summary of Credit Facility (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Total borrowings | $ 25,104 | |
Non-current borrowings | 24,917 | |
Borrowings [Member] | ||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||
Face value of Oxford loan | 25,000 | $ 0 |
Transaction costs | (264) | 0 |
Loan, net of transaction costs | 24,736 | 0 |
Interest expense | 1,067 | 0 |
Interest paid | (699) | 0 |
Total borrowings | 25,104 | 0 |
Current | 187 | 0 |
Non-current borrowings | $ 24,917 | $ 0 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Shareholders' Equity (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [Line Items] | ||||
Issuance of shares - EIP 2013, value | $ 21 | $ 27 | $ 36 | |
Issuance of shares - June 2018 offering, value | 77,823 | |||
Issuance of shares - ATM program, value | 3,554 | 20,011 | ||
Share issuance costs | $ (11) | (130) | (6,160) | (11,964) |
Exercise of stock-options - EIP 2017, value | 194 | 672 | ||
Share capital [Member] | ||||
Disclosure of classes of share capital [Line Items] | ||||
Equity, beginning balance | 3,420 | 2,864 | ||
Issuance of shares - EIP 2013, value | 21 | 27 | 36 | |
Issuance of shares - June 2018 offering, value | 392 | |||
Issuance of shares - ATM program, value | 56 | 130 | ||
Share issuance costs | 0 | 0 | 0 | |
Exercise of stock-options - EIP 2017, value | 2 | 7 | ||
Equity, ending balance | 3,499 | 3,420 | 2,864 | |
Share premium [Member] | ||||
Disclosure of classes of share capital [Line Items] | ||||
Equity, beginning balance | 314,565 | 219,335 | ||
Issuance of shares - EIP 2013, value | 2,696 | 2,947 | 3,671 | |
Issuance of shares - June 2018 offering, value | 77,431 | |||
Issuance of shares - ATM program, value | 3,498 | 19,881 | ||
Share issuance costs | (130) | (6,160) | (11,964) | |
Exercise of stock-options - EIP 2017, value | 326 | 1,131 | ||
Equity, ending balance | 320,955 | 314,565 | 219,335 | |
Total [Member] | ||||
Disclosure of classes of share capital [Line Items] | ||||
Equity, beginning balance | 317,985 | 222,199 | ||
Issuance of shares - EIP 2013, value | 2,717 | 2,974 | ||
Issuance of shares - June 2018 offering, value | 77,823 | |||
Issuance of shares - ATM program, value | 3,554 | 20,011 | ||
Share issuance costs | (130) | (6,160) | ||
Exercise of stock-options - EIP 2017, value | 328 | 1,138 | ||
Equity, ending balance | $ 324,454 | $ 317,985 | $ 222,199 | |
Common shares [Member] | ||||
Disclosure of classes of share capital [Line Items] | ||||
Beginning balance | 43,443,911 | 36,342,945 | ||
Issuance of shares - EIP 2013 | 261,984 | 347,509 | ||
Issuance of shares - June 2018 offering | 5,056,721 | |||
Issuance of shares - ATM program | 691,133 | 1,600,851 | ||
Exercise of stock-options - EIP 2017 | 26,420 | 95,885 | ||
Ending balance | 44,423,448 | 43,443,911 | 36,342,945 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 19, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | May 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jul. 31, 2019SFr / sharesshares | Mar. 31, 2018SFr / sharesshares |
Disclosure of classes of share capital [Line Items] | |||||||||
Share capital | $ 3,499 | $ 3,420 | |||||||
Issuance Of Issuance Of Non Vested Non Voting Shares Fully Paid | shares | 168,641 | 430,625 | |||||||
Nominal value per share of non-voting shares | $ / shares | $ 0.0769 | ||||||||
Issuance of shares | shares | 3,064,048 | 3,499,990 | |||||||
Par value per share | SFr / shares | SFr 0.0769 | SFr 0.0769 | |||||||
Share issue related cost | $ 11 | $ 130 | $ 6,160 | $ 11,964 | |||||
2013 Equity Incentive Plan [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Nominal value per share of non-voting shares | $ / shares | $ 0.0769 | ||||||||
Issuance of shares | shares | 261,984 | 347,509 | |||||||
Treasury Shares [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 3,975,516 | 1,602,601 | |||||||
Common shares [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Share capital | $ 3,500 | $ 3,400 | |||||||
Number of shares issued and fully paid | shares | 44,423,448 | 43,443,911 | 36,342,945 | ||||||
IPO [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 306,721 | ||||||||
Share issue related cost | $ 300 | ||||||||
Share price | $ / shares | $ 15.39 | ||||||||
Proceeds from issue of common shares | $ 4,700 | ||||||||
IPO [Member] | Underwritten public offering [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 4,750,000 | ||||||||
Share issue related cost | $ 5,300 | ||||||||
Share price | $ / shares | $ 15.39 | ||||||||
Proceeds from issue of common shares | $ 73,100 | ||||||||
IPO [Member] | Follow-on offering [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 712,500 | 712,500 | |||||||
IPO [Member] | Treasury Shares [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 1,600,851 | ||||||||
Share issue related cost | $ 600 | ||||||||
Share price | $ / shares | $ 12.50 | ||||||||
Proceeds from sale of treasury shares | $ 20,000 | ||||||||
ATM [Member] | Treasury Shares [Member] | |||||||||
Disclosure of classes of share capital [Line Items] | |||||||||
Number of shares issued | shares | 691,133 | ||||||||
Share issue related cost | $ 100 | ||||||||
Share price | $ / shares | $ 5.14 | ||||||||
Proceeds from sale of treasury shares | $ 3,600 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Authorized Share Capital (Detail) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Authorized Share Capital [Abstract] | ||
Authorized share capital | 19,681,753 | 15,565,620 |
Revenue and Other Operating I_2
Revenue and Other Operating Income - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue and other income [Abstract] | |
Revenue | $ 0 |
Operating Expenses by Nature -
Operating Expenses by Nature - Schedule of Operating Expenses by Nature (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expense By Nature [Abstract] | |||
External research and development costs | $ 70,531 | $ 49,480 | $ 43,268 |
Staff costs (note 16) | 24,556 | 19,537 | 17,999 |
Professional fees | 7,072 | 3,871 | 2,862 |
Rents | 21 | 827 | 592 |
Travel expenses | 1,398 | 1,044 | 1,073 |
Patent registration costs | 882 | 1,002 | 426 |
Depreciation | 737 | 109 | 70 |
Other | 1,914 | 1,299 | 1,190 |
Total operating expenses by nature | $ 107,111 | $ 77,169 | $ 67,480 |
Operating Expenses by Nature _2
Operating Expenses by Nature - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expense By Nature [Abstract] | |||
Research and development expense | $ 88,053 | $ 62,872 | $ 54,912 |
Operating Expenses by Nature _3
Operating Expenses by Nature - Summary of Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Depreciation Expense [Line Items] | |||
Total depreciation | $ 737 | $ 109 | $ 70 |
Research and development expenses [Member] | |||
Disclosure Of Depreciation Expense [Line Items] | |||
Total depreciation | 429 | 63 | 44 |
General and administrative expenses [Member] | |||
Disclosure Of Depreciation Expense [Line Items] | |||
Total depreciation | $ 308 | $ 46 | $ 26 |
Staff Costs - Summary of Staff
Staff Costs - Summary of Staff Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Defined Benefit Plans [Abstract] | |||
Wages and salaries | $ 10,403 | $ 9,023 | $ 7,715 |
Social charges | 2,124 | 946 | 993 |
Post-employment benefits expense | 145 | 416 | 435 |
Share-based payments | 11,884 | 9,152 | 8,856 |
Total staff costs | $ 24,556 | $ 19,537 | $ 17,999 |
Staff Costs - Additional Inform
Staff Costs - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Employee | Dec. 31, 2018USD ($)Employee | Dec. 31, 2017Employee | |
Analysis Of Income And Expense [Abstract] | |||
Average employed on full-time equivalents | 48.5 | 39.6 | 32.3 |
Employed on full-time equivalents | 50.1 | 43.2 | 37.7 |
Gain on post-employment benefits | $ | $ 527 | $ 172 |
Finance Income and Expense - Sc
Finance Income and Expense - Schedule of Finance Income and Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis Of Income And Expense [Abstract] | |||
Foreign exchange (loss) / gain | $ (442) | $ 393 | $ 589 |
Interest expense | (1,186) | ||
Finance result, net | $ (1,628) | $ 393 | $ 589 |
Income Taxes and Deferred Tax_3
Income Taxes and Deferred Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Income Tax [Abstract] | |||
Statutory tax rate (blended at Group level) | 8.10% | 8.10% | |
Municipal and cantonal income tax rate | 14.00% | (0.10%) | 0.10% |
ObsEva Ireland Ltd [Member] | |||
Disclosure of Income Tax [Abstract] | |||
Current tax expense (income) | $ 0 | $ 0 | |
ObsEva USA Inc [Member] | |||
Disclosure of Income Tax [Abstract] | |||
Statutory tax rate (blended at Group level) | 27.30% | 27.30% | |
Current tax expense (income) | $ 67,000 | $ (45,000) | |
Deferred taxes | $ 0 | $ 0 | |
Municipal and cantonal income tax rate | (4.20%) | 3.90% | |
Switzerland [Member] | |||
Disclosure of Income Tax [Abstract] | |||
Tax loss carryforward period | 7 years | ||
Current tax expense (income) | $ 0 | $ 0 | |
Deferred taxes | $ 0 | $ 0 | |
Switzerland [Member] | Municipal and Cantonal Tax Rate [Member] | |||
Disclosure of Income Tax [Abstract] | |||
Statutory tax rate (blended at Group level) | 22.60% | ||
Switzerland [Member] | Federal Tax Rate [Member] | |||
Disclosure of Income Tax [Abstract] | |||
Statutory tax rate (blended at Group level) | 8.50% |
Income Taxes and Deferred Tax_4
Income Taxes and Deferred Taxes - Schedule of Unrecorded Tax Losses Carry Forwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | $ 287,590 | $ 184,233 |
2020 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 2,950 | 2,896 |
2021 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 11,687 | 11,473 |
2022 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 16,394 | 16,093 |
2023 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 28,879 | 28,349 |
2024 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 59,103 | 58,019 |
2025 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | 68,662 | $ 67,403 |
2026 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total unrecorded tax losses carry forwards | $ 99,915 |
Income Taxes and Deferred Tax_5
Income Taxes and Deferred Taxes - Summary of Difference Between Income Tax Expense at Applicable Group Tax Rate and Effective Income Tax Expense (Detail) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Income Tax [Line Items] | |||||
Net loss before tax | $ (108,723) | $ (76,761) | $ (66,875) | $ (66,875) | |
Statutory tax rate (blended at Group level) | 8.10% | 8.10% | |||
Income tax credit at statutory tax rates | $ (8,793) | $ (6,211) | |||
Tax impact of permanent differences | 846 | 678 | |||
Temporary differences not recognized as deferred tax assets | 448 | 251 | |||
Adjustments for current tax of prior periods | (59) | ||||
Tax on losses not recognized as deferred tax assets | 7,567 | 5,296 | |||
Effective income tax (credit) expense. | $ 67 | $ (45) | $ 51 | ||
Effective tax rate | 14.00% | (0.10%) | 0.10% | ||
ObsEva SA Member] | |||||
Disclosure Of Income Tax [Line Items] | |||||
Net loss before tax | $ (107,120) | $ (75,616) | |||
Statutory tax rate (blended at Group level) | 7.80% | 7.80% | |||
Income tax credit at statutory tax rates | $ (8,355) | $ (5,898) | |||
Tax impact of permanent differences | 770 | 602 | |||
Tax on losses not recognized as deferred tax assets | $ 7,586 | $ 5,296 | |||
Effective tax rate | 0.00% | 0.00% | |||
ObsEva USA Inc [Member] | |||||
Disclosure Of Income Tax [Line Items] | |||||
Net loss before tax | $ (1,603) | $ (1,145) | |||
Statutory tax rate (blended at Group level) | 27.30% | 27.30% | |||
Income tax credit at statutory tax rates | $ (438) | $ (313) | |||
Tax impact of permanent differences | 76 | 76 | |||
Temporary differences not recognized as deferred tax assets | 448 | 251 | |||
Adjustments for current tax of prior periods | (59) | ||||
Tax on losses not recognized as deferred tax assets | (19) | ||||
Effective income tax (credit) expense. | $ 67 | $ (45) | |||
Effective tax rate | (4.20%) | 3.90% |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
IPO closing date | Jan. 25, 2017 | ||
Anti-dilutive non-vested securities excluded from calculation of diluted earnings per share | 168,641 | 430,625 | 778,134 |
Anti-dilutive impact of share options on calculation of the diluted earnings per share excluded from calculation | 4,626,385 | 3,028,275 | 1,866,740 |
Loss Per Share - Schedule of Ba
Loss Per Share - Schedule of Basic and Diluted Loss per Share (Detail) - Common shares [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Line Items] | |||
Net loss attributable to shareholders | $ (108,790) | $ (76,716) | $ (66,926) |
Weighted average number of shares outstanding | 43,674,746 | 40,172,498 | 29,799,047 |
Basic and diluted loss per share | $ (2.49) | $ (1.91) | $ (2.25) |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Recognized Share-based Payment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Total share-based compensation | $ 11,884 | $ 9,152 | $ 8,856 |
Employee 2013 EIP [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Total share-based compensation | 1,006 | 2,242 | 5,497 |
Employee 2017 EIP [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Total share-based compensation | $ 10,878 | $ 6,910 | $ 3,359 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Employee 2013 EIP [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Description of method of settlement for share-based payment arrangement | Upon enrollment in the 2013 EIP, Beneficiaries were granted a certain number of shares which they were entitled to acquire at a pre-determined price of 1/13 of a Swiss franc. The pre-determined price was generally paid by the Beneficiaries at the grant date and recognized as a pre-payment until the vesting period elapses resulting in the shares issuance being accounted for. | |
Description of vesting requirements for share-based payment arrangement | The shares generally fully vest over a four-year vesting period, with 25% of the shares underlying the grant vesting after one year, and 1/48th of the shares underlying the grant vesting each month over a further period of three years. | |
Obligation to repurchase or settle shares | $ 0 | |
Employee 2017 EIP [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Description of vesting requirements for share-based payment arrangement | The stock-options vest under a 3-year or 4-year vesting schedule, have a 10-year expiration term and have an exercise price equivalent to the share price at grant date. | |
Number of stock option, granted | shares | 1,683,303 | 1,317,420 |
Weighted average share price at date of exercise of options exercised | $ 11.64 | $ 13.04 |
Employee 2017 EIP [Member] | Black-Scholes Model [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Description of option pricing model, share options granted | Black-Scholes model | Black-Scholes model |
weighted average fair value of the stock-options granted | $ 6.45 | $ 10.36 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Vesting of Shares (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based payments | $ 11,884 | $ 9,152 | $ 8,856 |
Employee 2013 EIP [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Number of shares issued under the 2013 EIP | 261,984 | 347,509 | 454,548 |
Share-based payments | $ 1,006 | $ 2,242 | $ 5,497 |
Share-based Compensation - Move
Share-based Compensation - Movements in Number of Stock-options Outstanding Under 2017 EIP (Detail) - Employee 2017 EIP [Member] | 12 Months Ended | |
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
At January 1, | shares | 3,028,275 | 1,866,740 |
Granted | shares | 1,683,303 | 1,317,420 |
Forfeited/Expired | shares | (58,773) | (60,000) |
Exercised | shares | (26,420) | (95,885) |
At December 31, | shares | 4,626,385 | 3,028,275 |
At January 1, average exercise price | $ | $ 11.39 | $ 9.19 |
Granted, average exercise price | $ | 8.89 | 13.98 |
Forfeited/Expired, average exercise price | $ | 10.94 | 6.98 |
Exercised, average exercise price | $ | 7.32 | 7.01 |
At December 31, average exercise price | $ | $ 10.51 | $ 11.39 |
Share-based Compensation - Rang
Share-based Compensation - Range of Exercise Prices and Expiry Dates Outstanding Stock-options (Detail) - Employee 2017 EIP [Member] | Dec. 31, 2019USD ($)sharesYear | Dec. 31, 2018sharesYear | Dec. 31, 2017shares |
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Total outstanding options | shares | 4,626,385 | 3,028,275 | 1,866,740 |
Total outstanding options out of which are exercisable | shares | 1,312,557 | 447,538 | |
Weighted-average remaining contractual life (in years) | Year | 8.8 | 9.2 | |
15.00 to 17.99 [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Total outstanding options | shares | 361,500 | 361,500 | |
15.00 to 17.99 [Member] | Bottom of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 15 | ||
15.00 to 17.99 [Member] | Top of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 17.99 | ||
12.00 to 14.99 [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Total outstanding options | shares | 1,276,240 | 1,109,370 | |
12.00 to 14.99 [Member] | Bottom of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 12 | ||
12.00 to 14.99 [Member] | Top of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 14.99 | ||
9.00 to 11.99 [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Total outstanding options | shares | 1,458,595 | 1,185,905 | |
9.00 to 11.99 [Member] | Bottom of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 9 | ||
9.00 to 11.99 [Member] | Top of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 11.99 | ||
6.00 to 8.99 [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Total outstanding options | shares | 1,530,050 | 371,500 | |
6.00 to 8.99 [Member] | Bottom of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 6 | ||
6.00 to 8.99 [Member] | Top of range [Member] | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Range of exercise prices | $ 8.99 |
Share-based Compensation - Sign
Share-based Compensation - Significant Inputs to Model to Determine Weighted Average Fair Value of Stock-options Granted (Detail) - Employee 2017 EIP [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Weighted average share price at grant date | $ 8.89 | $ 13.98 |
Weighted average exercise price | $ 8.89 | $ 13.98 |
Weighted average 10-year volatility | 65.00% | 65.00% |
Dividend yield | 0.00% | 0.00% |
Weighted average 10-year risk free rate | 1.88% | 3.06% |
Share-based Compensation - Si_2
Share-based Compensation - Significant Inputs to Model to Determine Weighted Average Fair Value of Stock-options Granted (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | ||
Weighted average volatility period | 10 years | 10 years |
Weighted average risk free period | 10 years | 10 years |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Operating Lease Commitments (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of Commitments and Contingencies [Line Items] | |
Total operating lease commitments | $ 3,074 |
Within 1 year [Member] | |
Disclosure of Commitments and Contingencies [Line Items] | |
Total operating lease commitments | 705 |
Later than 1 year and not later than 5 years [Member] | |
Disclosure of Commitments and Contingencies [Line Items] | |
Total operating lease commitments | $ 2,369 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of Commitments and Contingencies [Line Items] | |
License and supply agreement, undiscounted amount paid | $ 10 |
Royalty expiration period from the date of first commercial sale | 15 years |
Bottom of range [Member] | |
Disclosure of Commitments and Contingencies [Line Items] | |
License and supply agreement, potential undiscounted future payments | $ 0 |
Royalty payment as a percentage of net sales | 20.00% |
Top of range [Member] | |
Disclosure of Commitments and Contingencies [Line Items] | |
License and supply agreement, potential undiscounted future payments | $ 188 |
Related Parties Transactions -
Related Parties Transactions - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019DirectorMember | Dec. 31, 2018Member | |
Disclosure of transactions between related parties [Line Items] | ||
Number of directors | Director | 8 | |
Numbers of executive committee members | Member | 5 | 7 |
Other Related Parties [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Description of other significant transactions with related parties | There were no other significant transactions with related parties during the years presented. |
Related Parties Transactions _2
Related Parties Transactions - Summary of Total Remuneration Recorded for Members of the Board of Directors and Executive Committee (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Transactions Between Related Parties [Abstract] | ||
Short-term employee benefits (including base and variable cash remuneration) | $ 4,181 | $ 4,150 |
Post-employment benefits | 186 | 117 |
Share-based payments | 8,485 | 6,125 |
Total | $ 12,852 | $ 10,392 |
Going concern - Additional Info
Going concern - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Going Concern [Abstract] | |||
Net loss | $ 108,790 | $ 76,716 | $ 66,926 |
Accumulated losses | 328,000 | ||
Share premium offset from accumulated losses | $ 30,600 |
Events After the Reporting Pe_2
Events After the Reporting Period - Additional Information (Details) - Treasury Shares [Member] - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 12 Months Ended | |
Feb. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | |||
Number of shares issued | 3,975,516 | 1,602,601 | |
ATM [Member] | |||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | |||
Number of shares issued | 691,133 | ||
Share price | $ 5.14 | ||
Proceeds from sale of treasury shares | $ 3.6 | ||
ATM [Member] | Potential Ordinary Share Transactions [Member] | |||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | |||
Number of shares issued | 1,731,922 | ||
Share price | $ 3.65 | ||
Proceeds from sale of treasury shares | $ 6.3 |