Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Period End Date | Dec. 31, 2019 |
Entity Registrant Name | Genmab A/S |
Document Annual Report | true |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Shell Company Report | false |
Document Transition Report | false |
Entity Central Index Key | 0001434265 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Ordinary shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 65,074,502 |
ADS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 27,931,230 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement | |||
Revenue | kr 5,366 | kr 3,025 | kr 2,365 |
Research and development expenses | (2,386) | (1,431) | (874) |
General and administrative expenses | (342) | (214) | (147) |
Operating expenses | (2,728) | (1,645) | (1,021) |
Operating result | 2,638 | 1,380 | 1,344 |
Finance income | 228 | 243 | 72 |
Finance expenses | (7) | (11) | (352) |
Net result before tax | 2,859 | 1,612 | 1,064 |
Corporate tax | (693) | (140) | 40 |
Net result | kr 2,166 | kr 1,472 | kr 1,104 |
Basic net result per share | kr 34.40 | kr 24.03 | kr 18.14 |
Diluted net result per share | kr 34.03 | kr 23.73 | kr 17.77 |
Statement of Comprehensive Income | |||
Net result | kr 2,166 | kr 1,472 | kr 1,104 |
Amounts which may be re-classified to the income statement: | |||
Adjustment of foreign currency fluctuations on subsidiaries | 6 | 10 | (17) |
Fair value adjustments of cash flow hedges: | |||
Fair value adjustments during the period | 16 | ||
Fair value adjustments reclassified to the income statement to financial income | (20) | ||
Total comprehensive income | kr 2,172 | kr 1,482 | kr 1,083 |
Consolidated Balance Sheets
Consolidated Balance Sheets - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Intangible assets | kr 470 | kr 470 |
Property, plant and equipment | 237 | 162 |
Right-of-use assets | 177 | |
Receivables | 11 | 10 |
Deferred tax assets | 139 | 386 |
Other investments | 149 | |
Total non-current assets | 1,183 | 1,028 |
Receivables | 2,990 | 1,327 |
Marketable securities | 7,419 | 5,573 |
Cash and cash equivalents | 3,552 | 533 |
Total current assets | 13,961 | 7,433 |
Total assets | 15,144 | 8,461 |
SHAREHOLDERS’ EQUITY AND LIABILITIES | ||
Share capital | 65.1 | 61 |
Share premium | 11,755 | 8,059 |
Other reserves | 98 | 92 |
Retained Earnings | 2,130 | (198) |
Total shareholders' equity | 14,048 | 8,014 |
Provisions | 2 | 1 |
Lease liabilities | 155 | |
Other payables | 1 | 2 |
Total non-current liabilities | 158 | 3 |
Provisions | 2 | 1 |
Corporate tax payable | 73 | 128 |
Lease liabilities | 26 | |
Other payables | 839 | 316 |
Total current liabilities | 938 | 444 |
Total liabilities | 1,096 | 447 |
Total shareholders' equity and liabilities | kr 15,144 | kr 8,461 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net result before tax | kr 2,859 | kr 1,612 | kr 1,064 |
Reversal of financial items, net | (221) | (232) | 280 |
Adjustment for non-cash transactions | 291 | 179 | 146 |
Change in working capital | (1,218) | (634) | 240 |
Cash generated by operating activities before financial items | 1,711 | 925 | 1,730 |
Interest received | 111 | 44 | 43 |
Interest elements of lease payments | (7) | ||
Interest paid | (13) | (3) | |
Corporate taxes (paid)/received | (476) | 46 | (181) |
Net cash generated by operating activities | 1,326 | 1,015 | 1,589 |
Cash flows from investing activities: | |||
Investment in intangible assets | (32) | (406) | |
Investment in tangible assets | (79) | (72) | (89) |
Marketable securities bought | (5,812) | (3,521) | (3,425) |
Marketable securities sold | 3,940 | 2,221 | 2,846 |
Net cash used in investing activities | (1,983) | (1,778) | (668) |
Cash flows from financing activities: | |||
Warrants exercised | 65 | 75 | 215 |
Shares issued for cash | 3,873 | ||
Costs related to issuance of shares | (238) | ||
Principal elements of lease payments | (31) | ||
Purchase of treasury shares | (146) | ||
Payment of withholding taxes on behalf of employees on net settled RSUs | (9) | ||
Net cash from financing activities | 3,660 | (71) | 215 |
Changes in cash and cash equivalents | 3,003 | (834) | 1,136 |
Cash and cash equivalents at the beginning of the period | 533 | 1,348 | 307 |
Exchange rate adjustments | 16 | 19 | (95) |
Cash and cash equivalents at the end of the period | 3,552 | 533 | 1,348 |
Cash and cash equivalents include: | |||
Bank deposits and petty cash | 2,884 | kr 533 | kr 1,348 |
Short-term marketable securities | kr 668 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - DKK (kr) | Share capital | Share premium | Translation reserves | Cash flow hedges | Retained Earnings/ (Accumulated Deficit) | Total |
Balance at beginning of period at Dec. 31, 2016 | kr 60,000,000 | kr 7,770,000,000 | kr 99,000,000 | kr 4,000,000 | kr (3,107,000,000) | kr 4,826,000,000 |
Number of shares, at beginning of period at Dec. 31, 2016 | 60,350,056 | |||||
Net result | 1,104,000,000 | kr 1,104,000,000 | ||||
Other comprehensive income | (17,000,000) | (4,000,000) | (21,000,000) | |||
Total comprehensive income | (17,000,000) | kr (4,000,000) | 1,104,000,000 | 1,083,000,000 | ||
Transactions with owners: | ||||||
Exercise of warrants | 1,000,000 | 214,000,000 | 215,000,000 | |||
Purchase of treasury shares | 0 | |||||
Share-based compensation expenses | 76,000,000 | 76,000,000 | ||||
Tax on items recognized directly in equity | 72,000,000 | 72,000,000 | ||||
Balance at end of period at Dec. 31, 2017 | 61,000,000 | 7,984,000,000 | 82,000,000 | (1,855,000,000) | kr 6,272,000,000 | |
Number of shares, at end of period at Dec. 31, 2017 | 61,185,674 | |||||
Change in accounting policy: Adoption of IFRS 15 | Change in accounting policy: Adoption of IFRS 15 | 151,000,000 | kr 151,000,000 | ||||
Balance at beginning of period at Dec. 31, 2017 | 61,000,000 | 7,984,000,000 | 82,000,000 | (1,855,000,000) | kr 6,272,000,000 | |
Number of shares, at beginning of period at Dec. 31, 2017 | 61,185,674 | |||||
Net result | 1,472,000,000 | kr 1,472,000,000 | ||||
Other comprehensive income | 10,000,000 | 10,000,000 | ||||
Total comprehensive income | 10,000,000 | 1,472,000,000 | 1,482,000,000 | |||
Transactions with owners: | ||||||
Exercise of warrants | 75,000,000 | 75,000,000 | ||||
Purchase of treasury shares | (146,000,000) | (146,000,000) | ||||
Share-based compensation expenses | 91,000,000 | 91,000,000 | ||||
Tax on items recognized directly in equity | 89,000,000 | 89,000,000 | ||||
Balance at end of period at Dec. 31, 2018 | 61,000,000 | 8,059,000,000 | 92,000,000 | (198,000,000) | kr 8,014,000,000 | |
Number of shares, at end of period at Dec. 31, 2018 | 61,497,571 | |||||
Adjusted total equity at January 1, 2018 | 61,000,000 | 7,984,000,000 | 82,000,000 | (1,704,000,000) | kr 6,423,000,000 | |
Net result | 2,166,000,000 | 2,166,000,000 | ||||
Other comprehensive income | 6,000,000 | 6,000,000 | ||||
Total comprehensive income | 6,000,000 | 2,166,000,000 | 2,172,000,000 | |||
Transactions with owners: | ||||||
Exercise of warrants | 1,000,000 | 64,000,000 | 65,000,000 | |||
Shares issued for cash | 3,000,000 | 3,870,000,000 | 3,873,000,000 | |||
Expenses related to capital increases | (238,000,000) | (238,000,000) | ||||
Purchase of treasury shares | 0 | |||||
Share-based compensation expenses | 147,000,000 | 147,000,000 | ||||
Net settlement of RSUs | (9,000,000) | (9,000,000) | ||||
Tax on items recognized directly in equity | 24,000,000 | 24,000,000 | ||||
Balance at end of period at Dec. 31, 2019 | kr 65,000,000 | kr 11,755,000,000 | kr 98,000,000 | kr 2,130,000,000 | kr 14,048,000,000 | |
Number of shares, at end of period at Dec. 31, 2019 | 65,074,502 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | SECTION 1—BASIS OF PRESENTATION 1.1 —Nature of the Business and Accounting Policies Genmab A/S is a publicly traded, international biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer and other diseases. Founded in 1999, the company has two approved antibodies, a broad clinical and pre-clinical product pipeline and proprietary next generation antibody technologies. The financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). Except as outlined in note 1.2, the financial statements have been prepared using the same accounting policies as 2018. These consolidated financial statements were approved by our Board of Directors on March 26, 2020. Section 2—Results for the Year 2.1 Revenue 2.2 Information about Geographical Areas 2.3 Staff Costs 2.4 Corporate and Deferred Tax 2.5 Result per Share Section 3—Operating Assets and Liabilities 3.1 Intangible Assets 3.2 Property, Plant and Equipment 3.3 Leases 3.4 Other Investments 3.5 Receivables 3.6 Provisions 3.7 Other Payables Section 4—Capital Structure, Financial Risk and Related Items 4.3 Financial Assets and Liabilities 4.4 Marketable Securities 4.5 Financial Income and Expenses Section 5—Other Disclosures 5.3 Contingent Assets, Contingent Liabilities and Subsequent Events Materiality The group’s annual report is based on the concept of materiality and the group focuses on information that is considered material and relevant to the users of the consolidated financial statements. The consolidated financial statements consist of a large number of transactions. These transactions are aggregated into classes according to their nature or function and presented in classes of similar items in the consolidated financial statements as required by IFRS and Danish disclosure requirements for listed companies. If items are individually immaterial, they are aggregated with other items of similar nature in the financial statements or in the notes. The disclosure requirements are substantial in IFRS. The group provides these specific required disclosures unless the information is considered immaterial to the economic decision-making of the readers of the financial statements or not applicable. Consolidated Financial Statements The consolidated financial statements include Genmab A/S (the parent company) and subsidiaries over which the parent company has control. The parent controls a subsidiary when the parent is exposed to, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power to direct the activities of the subsidiary. A company overview is included in note 5.3. The group’s consolidated financial statements have been prepared on the basis of the financial statements of the parent company and subsidiaries—prepared under the group’s accounting policies— by combining similar accounting items on a line-by-line basis. On consolidation, intercompany income and expenses, intercompany receivables and payables, and unrealized gains and losses on transactions between the consolidated companies are eliminated. The recorded value of the equity interests in the consolidated subsidiaries is eliminated with the proportionate share of the subsidiaries’ equity. Subsidiaries are consolidated from the date when control is transferred to the group. The income statements for subsidiaries with a different functional currency than the group presentation currency are translated into the group’s presentation currency at the year’s weighted average exchange rate, and the balance sheets are translated at the exchange rate in effect at the balance sheet date. Exchange rate differences arising from the translation of foreign subsidiaries shareholders’ equity at the beginning of the year and exchange rate differences arising as a result of foreign subsidiaries’ income statements being translated at average exchange rates are recorded in translation reserves in shareholders’ equity. Functional and Presentation Currency The financial statements have been prepared in Danish Kroner (DKK), which is the functional and presentation currency of the parent company. Foreign Currency Transactions in foreign currencies are translated at the exchange rates in effect at the date of the transaction. Exchange rate gains and losses arising between the transaction date and the settlement date are recognized in the income statement as financial items. Unsettled monetary assets and liabilities in foreign currencies are translated at the exchange rates in effect at the balance sheet date. Exchange rate gains and losses arising between the transaction date and the balance sheet date are recognized in the income statement as financial items. Classification of Operating Expenses in the Income Statement Research and Development Expense Research and development expenses primarily include salaries, benefits and other employee related costs of our research and development staff, license costs, manufacturing costs, pre-clinical costs, clinical trials, contractors and outside service fees, amortization of licenses and rights, and depreciation and impairment of intangible assets and property, plant and equipment, to the extent that such costs are related to the group’s research and development activities. Please see note 3.1 for a more detailed description on the treatment of Genmab’s research and development expenses. General and Administrative Expense General and administrative expenses relate to the management and administration of the group. This includes salaries, benefits and other headcount costs related to management and support functions including human resources, information technology and the finance departments. In addition, depreciation and impairment of intangible assets and property, plant and equipment, to the extent such expenses are related to administrative functions are also included. General and administrative expenses are recognized in the income statement in the period to which they relate. Statement of Cash Flow The cash flow statement is presented using the indirect method with basis in the net result before tax. Cash flow from operating activities is stated as the net result adjusted for net financial items, non-cash operating items such as depreciation, amortization, impairment losses, share-based compensation expenses, provisions, and for changes in working capital, interest paid and received, and corporate taxes paid. Working capital mainly comprises changes in receivables, provisions paid and other payables excluding the items included in cash and cash equivalents. Changes in non-current assets and liabilities are included in working capital, if related to the main revenue-producing activities of Genmab. Cash flow from investing activities is comprised of cash flow from the purchase and sale of intangible assets and property, plant and equipment and financial assets as well as purchase and sale of marketable securities. Cash flow from financing activities is comprised of cash flow from the issuance of shares, if any, and payment of long-term loans including installments on lease liabilities. Finance lease transactions are considered non-cash transactions. Cash and cash equivalents comprise cash, bank deposits, and marketable securities with a maturity of three months or less on the date of acquisition. The cash flow statement cannot be derived solely from the financial statements. Derivative Financial Instruments and Hedging Activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Genmab designates certain derivatives as either: 1. Fair value hedge (hedges of the fair value of recognized assets or liabilities or a firm commitment); or 2. Cash flow hedge (hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast transaction). At the inception of a transaction, Genmab documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. Genmab also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Movements on the hedging reserve in other comprehensive income are shown as part of the statement of shareholders’ equity. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Cash Flow Hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion and changes in time value of the derivative instrument is recognized immediately in the income statement within financial income or expenses. When forward contracts are used to hedge forecast transactions, Genmab generally designates the full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the gains or losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedge reserve within equity. Fair Value Hedge Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that is attributable to the hedged risk. Treasury Shares The total amount paid to acquire treasury shares including directly attributable costs and the proceeds from the sale of treasury shares are recognized in retained earnings. Collaboration Agreements The group has entered into various collaboration agreements, primarily in connection with the group’s research and development projects and the clinical testing of product candidates. The collaboration agreements are structured such that each party contributes its respective skills in the various phases of the development project and contain contractual terms regarding sharing of control over the relevant activities under the agreement. No joint control exists for the group’s collaborations with Janssen and Novartis as they retain final decision making authority over the relevant activities. The group’s collaboration agreements with BioNTech may become subject to joint control if product candidates under the agreements are selected for joint clinical development as this would require unanimous consent of both parties on decisions related to the relevant activities. Under these agreements, joint clinical development may be selected on a product by product basis and would result in development cost and product ownership being shared equally going forward. These agreements also include provisions which will allow the parties to opt out of joint development at key points along the development timeline. An opt out by one of the parties would result in loss of joint control by the opt out party and the other party is entitled to continue developing the product on predetermined licensing terms. During 2017 Seattle Genetics exercised its option to co-develop and co-commercialize tisotumab vedotin. All costs and profits for tisotumab vedotin will be shared on a 50:50 basis and joint control exists over the relevant activities. Accordingly, only the tisotumab vedotin collaboration with Seattle Genetics is considered a joint operation under IFRS 11, ‘‘Joint Arrangements.’’ Revenues, expenses, receivables, and payables in connection with our collaboration agreements are included in the related financial statement lines and footnotes. During December 2019, Genmab entered into a research collaboration and license agreement with CureVac AG. The strategic partnership will focus on the research and development of differentiated mRNA-based antibody products by combining CureVac’s mRNA technology and know-how with Genmab’s proprietary antibody technologies and expertise. Under the terms of the agreement Genmab will provide CureVac with a $10 million upfront payment. The companies will collaborate on research to identify an initial product candidate and CureVac will contribute a portion of the overall costs for the development of this product candidate, up to the time of an Investigational New Drug Application. Genmab would thereafter be fully responsible for the development and commercialization of the potential product, in exchange for $280 million in development, regulatory and commercial milestones and tiered royalties in the range from mid-single digits up to low-double digits to CureVac. The agreement also includes three additional options for Genmab to obtain commercial licenses to CureVac’s mRNA technology at pre-defined terms, exercisable within a five-year period. If Genmab exercises any of these options, it would fund all research and would develop and commercialize any resulting product candidates with CureVac eligible to receive between $275 million and $368 million in development, regulatory and commercial milestone payments for each product, dependent on the specific product concept. In addition, CureVac is eligible to receive tiered royalties in the range from mid-single digits up to low double digits per product. CureVac would retain an option to participate in development and/or commercialization of one of the potential additional programs under pre-defined terms and conditions. Further, Genmab made a €20 million equity investment in CureVac. Refer to note 3.4 for additional information regarding Genmab’s equity investment in CureVac. 1.2 —New Accounting Policies and Disclosures New Accounting Policies and Disclosures Genmab has, with effect from January 1, 2019, implemented the amendments to IFRS 9, IAS 19, IAS 28, IFRIC 23 and annual improvements to IFRSs 2015‑2017. The implementation of these standards has not had a material impact on the entity in the current reporting period. Genmab has, with effect from January 1, 2019, implemented IFRS 16. The impact of the adoption of the standard is described below. Effective January 1, 2019, we adopted IFRS 16 using the modified retrospective transition method. Under this method, all leases are recognized in the balance sheet as a right-of-use (“ROU”) asset with a corresponding lease liability, except for short term assets in which the lease term is 12 months or less, or low value assets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis over the lease term. In the income statement, lease costs are replaced by depreciation of the ROU asset recognized over the lease term in operating expenses, and interest expenses related to the lease liability are classified in financial items. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Genmab determines if an arrangement is a lease at inception. Genmab leases various properties and IT equipment. Rental contracts are typically made for fixed periods. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed payments, less any lease incentives. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). ROU assets are measured at cost and include 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. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less and low-value assets comprise IT equipment and small items of office furniture. On adoption of IFRS 16, the group recognized lease liabilities in relation to leases that had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 3.7%. The impact of the adoption of IFRS 16 on the financial statements as of January 1, 2019 is shown in the table and further described below: January 1, (DKK million) 2019 Operating lease commitments disclosed as at December 31, 2018 184 Discounted using the incremental borrowing rate of 3.7% (42) (Less): short-term leases recognized on a straight-line basis as expense (3) Add/(less): adjustments as a result of a different treatment of extension and termination options 66 Lease liability recognized at January 1, 2019 205 The ROU assets established at January 1, 2019 on the balance sheet was DKK 205 million. Net result decreased by DKK 4 million as a result of adopting IFRS 16 in 2019. Cash flows from operating activities increased by DKK 35 million and cash flows from financing activities decreased by DKK 31 million as a result of adopting IFRS 16 in 2019. For purposes of applying the modified retrospective approach in adoption of IFRS 16, Genmab has used the following practical expedients permitted by the standard: · applied the exemption not to recognize ROU assets and liabilities for leases with less than 12 months of lease term from January 1, 2019, and · excluded initial direct costs for the measurement of the ROU assets at the date of initial application There are no ROU assets that meet the definition of investment property. New Accounting Policies and Disclosures Effective in 2020 or Later The IASB has issued, a number of new standards and updated some existing standards, the majority of which are effective for accounting periods beginning on January 1, 2020 or later. Therefore, they are not incorporated in the consolidated financial statements. There are no standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 1.3 —Management’s Judgments and Estimates under IFRS In preparing financial statements under IFRS, certain provisions in the standards require management’s judgments, including various accounting estimates and assumptions. These affect the application of accounting policies, as well as reported amounts within the financial statements and disclosures. Determining the carrying amount of some assets and liabilities requires judgments, estimates and assumptions concerning future events that are based on historical experience and other factors, which by their very nature are associated with uncertainty and unpredictability. Accounting estimates are based on historical experience and various other factors relative to the circumstances in which they are applied. Estimates are generally made based on information available at the time. An example would include management’s estimation of deferred income tax assets. Accounting judgments are made in the process of applying Genmab’s accounting policies. These judgements are typically made based on the guidance and information available at the time of application. Examples would include management’s judgements utilized in determining revenue recognition. These estimates and judgments may prove incomplete or incorrect, and unexpected events or circumstances may arise. The Genmab group is also subject to risks and uncertainties which may lead actual results to differ from these estimates, both positively and negatively. Specific risks for the Genmab group are discussed in the relevant section of the management’s review and in the notes to the financial statements. The areas involving a high degree of judgment and estimation that are significant to the financial statements are summarized below. Refer to the identified notes for further information on the key accounting estimates and judgements utilized in the preparation of the consolidated financial statements. · Recognition of revenue – Note 2.1 · Valuation assumptions in Black-Scholes pricing model – Note 2.3 · Estimation of current and deferred income taxes – Note 2.4 · Estimated useful life of intangible assets – Note 3.1 · Capitalization of research and development costs – Note 3.1 |
RESULTS FOR THE YEAR
RESULTS FOR THE YEAR | 12 Months Ended |
Dec. 31, 2019 | |
RESULTS FOR THE YEAR | |
RESULTS FOR THE YEAR | SECTION 2 – RESULTS FOR THE YEAR 2.1 – Revenue (DKK million) 2019 2018 2017 Revenue: Royalties 3,155 1,741 1,061 Milestone payments 1,869 687 1,133 License fees — 348 90 Reimbursement income 342 249 81 Total 5,366 3,025 2,365 Revenue split by collaboration partner: Janssen (DARZALEX/Daratumumab & DuoBody) 4,983 2,390 2,214 Novartis (Arzerra/Ofatumumab) 23 338 48 Other collaboration partners 360 297 103 Total 5,366 3,025 2,365 Accounting Policies Genmab recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that Genmab determines are within the scope of IFRS 15, Genmab performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of IFRS 15, we assess the goods or services promised within each contract and identify, as a performance obligation, and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Royalties: License and collaboration agreements include sales-based royalties, including commercial milestone payments based on the level of sales. The license has been deemed to be the predominant item to which the royalties relate under our license and collaboration agreements. As a result, Genmab recognizes revenue when the related sales occur. Accounting Policies Royalties: License and collaboration agreements include sales-based royalties, including commercial milestone payments based on the level of sales. The license has been deemed to be the predominant item to which the royalties relate under our license and collaboration agreements. As a result, Genmab recognizes revenue when the related sales occur. Milestone Payments: At the inception of each arrangement that includes milestone payments, Genmab evaluates whether the achievement of milestones are considered highly probable and estimates the amount to be included in the transaction price using the most likely amount method. If it is highly probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of Genmab or the license and collaboration partner, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which Genmab recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, Genmab re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. Under all of Genmab’s existing license and collaboration agreements, milestone payments have been allocated to the license transfer performance obligation. License Fees for Intellectual Property: If the license to Genmab’s functional intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, Genmab recognizes revenues from non-refundable upfront fees allocated to the license at the point in time the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, Genmab utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. Under all of Genmab’s existing license and collaboration agreements the license to functional intellectual property has been determined to be distinct from other performance obligations identified in the agreement. Reimbursement Income for R&D Services: License and collaboration agreements include the reimbursement or cost sharing for research and development services and payment for FTEs at contractual rates. R&D services are performed and satisfied over time given that the customer simultaneously receives and consumes the benefits provided by Genmab and revenue for R&D services is recognized over time rather than a point in time. Management’s Judgments and Estimates Evaluating the criteria for revenue recognition under license and collaboration agreements requires management’s judgement to assess and determine the following: · The nature of performance obligations and whether they are distinct or should be combined with other performance obligations to determine whether the performance obligations are satisfied over time or at a point in time. · An assessment of whether the achievement of milestone payments is highly probable. · The stand-alone selling price of each performance obligation identified in the contract using key assumptions which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. 2.2 —Information about Geographical Areas The Genmab group is managed and operated as one business unit, which is reflected in the organizational structure and internal reporting. No separate lines of business or separate business entities have been identified with respect to any of the product candidates or geographical markets and no segment information is currently disclosed in the internal reporting. Accordingly, it has been concluded that it is not relevant to include segment disclosures in the financial statements as the group’s business activities are not organized on the basis of differences in related product and geographical areas. 2019 2018 2017 Non-current Non-current Non-current (DKK million) Revenue assets Revenue assets Revenue assets Denmark 5,366 387 3,025 454 2,365 105 Netherlands — 252 — 167 — 127 USA — 68 — 11 — 6 Japan — — — — — — Total 5,366 707 3,025 632 2,365 238 Accounting Policies Geographical information is presented for the Genmab group’s revenue and non-current assets. Revenue is attributed to countries on the basis of the location of the legal entity holding the contract with the counterparty and operations. Non-current assets comprise intangible assets and property, plant and equipment. 2.3 —Staff Costs (DKK million) 2019 2018 2017 Wages and salaries 489 308 230 Share-based compensation 147 91 76 Defined contribution plans 39 24 19 Other social security costs 72 23 18 Government grants (96) (86) (64) Total 651 360 279 Staff costs are included in the income statement as follows: Research and development expenses 572 324 249 General and administrative expenses 175 122 94 Government grants related to research and development expenses (96) (86) (64) Total 651 360 279 Average number of FTE 471 313 235 Number of FTE at year-end 548 377 257 Please refer to note 5.1 for additional information regarding the remuneration of the Board of Directors and Executive Management. Government grants, which are a reduction of payroll taxes in the Netherlands, amounted to DKK 96 million in 2019, 86 million in 2018 and DKK 64 million in 2017. These amounts are an offset to wages and salaries and research and development costs in the table above. The increases in 2019, 2018 and 2017 were primarily due to increased research activities in the Netherlands combined with a higher level of grants provided by the Dutch government. Accounting Policies Share-Based Compensation Expenses Genmab has granted restricted stock units (RSUs) and warrants to the Board of Directors, Executive Management and employees under various share-based compensation programs. The group applies IFRS 2, according to which the fair value of the warrants and RSUs at grant date is recognized as an expense in the income statement over the vesting period. Such compensation expenses represent calculated values of warrants and RSUs granted and do not represent actual cash expenditures. A corresponding amount is recognized in shareholders’ equity as both the warrant and RSU programs are designated as equity-settled share-based payment transactions. Government Grants The Dutch Research and Development Act ‘‘WBSO’’ provides compensation for a part of research and development wages and other costs through a reduction in payroll taxes. WBSO grant amounts are offset against wages and salaries and research and development costs. Management’s Judgments and Estimates Share-Based Compensation Expenses In accordance with IFRS 2 ‘‘Share-based Payment,’’ the fair value of the warrants and RSUs at grant date is recognized as an expense in the income statement over the vesting period, the period of delivery of work. Subsequently, the fair value is not remeasured. The fair value of each warrant granted during the year is calculated using the Black-Scholes pricing model. This pricing model requires the input of subjective assumptions such as: · The expected stock price volatility, which is based upon the historical volatility of Genmab’s stock price; · The risk-free interest rate, which is determined as the interest rate on Danish government bonds (bullet issues) with a maturity of five years; · The expected life of warrants, which is based on vesting terms, expected rate of exercise and life terms in the current warrant program. These assumptions can vary over time and can change the fair value of future warrants granted. Valuation Assumptions for Warrants Granted in 2019, 2018 and 2017 The fair value of each warrant granted during the year is calculated using the Black-Scholes pricing model with the following assumptions: Weighted Average 2019 2018 2017 Fair value per warrant on grant date 425.80 386.61 366.78 Share price 1,483.58 1,034.66 1,123.91 Exercise price 1,483.58 1,034.66 1,123.91 Expected dividend yield 0 % 0 % 0 % Expected stock price volatility 34.2 % 41.7 % 38.5 % Risk-free interest rate (0.56) % (0.01) % (0.38) % Expected life of warrants 5 years 5 years 5 years Based on a weighted average fair value per warrant of DKK 425.80 in 2019, DKK 386.61 in 2018 and DKK 366.78 in 2017, the total fair value of warrants granted amounted to DKK 131 million, 102 million and 67 million on the grant date in 2019, 2018 and 2017, respectively. The fair value of each RSU granted during the year is equal to the closing market price on the date of grant of one Genmab A/S share. Based on a weighted average fair value per RSU of DKK 1,511.70 in 2019, DKK1,033.95 in 2018 and DKK 1,128.30 in 2017 the total fair value of RSUs granted amounted to DKK 176 million, DKK 106 million and DKK 74 million on the grant date in 2019, 2018 and 2017, respectively. 2.4 —Corporate and Deferred Tax Taxation—Income Statement & Shareholders’ Equity (DKK million) 2019 2018 2017 Current tax on result 444 161 133 Adjustment to prior years — — (1) Adjustment to deferred tax 294 458 626 Adjustment to valuation allowance (45) (479) (798) Total tax for the period in the income statement 693 140 (40) A reconciliation of Genmab's effective tax rate relative to the Danish statutory tax rate is as follows: (DKK million) 2019 2018 2017 Net result before tax 2,859 1,612 1,064 Computed 22% (2018 & 2017: 22%) 629 355 234 Tax effect of: Recognition of previously unrecognized tax losses and deductible temporary differences (19) (267) (286) Non-deductible expenses/non-taxable income and other permanent differences, net 75 53 14 All other 8 (1) (2) Total tax effect 64 (215) (274) Total tax for the period in the income statement 693 140 (40) Total tax for the period in shareholders' equity (24) (89) (72) Corporate tax consists of current tax and the adjustment of deferred taxes during the year. The corporate tax expense was DKK 693 million in 2019 and DKK 140 million in 2018, compared to corporate tax income of DKK 40 million in 2017. The corporate tax expense in 2019 was due to current and deferred tax expense of DKK 722 million partially offset by the reversal of valuation allowances on deferred tax assets related to future taxable income, resulting in a discrete tax benefit of DKK 29 million. The corporate tax expense in 2018 was due to current and deferred tax expense of DKK 407 million partially offset by the reversal of valuation allowances on deferred tax assets related to future taxable income, resulting in a discrete tax benefit of DKK 268 million. The corporate tax income in 2017 was due to the partial reversal of valuation allowances on deferred tax assets related to future taxable income, resulting in a discrete tax benefit of DKK 286 million, which more than offset current and deferred tax expense of DKK 246 million. In 2019, a current tax benefit of DKK 24 million was recorded directly in shareholders’ equity, which was related to excess tax benefits for share-based instruments. In 2018, a current tax benefit of DKK 24 million and a deferred tax benefit of DKK 66 million recorded directly in shareholders’ equity, which was related to excess tax benefits for share-based instruments. In 2017, a current tax benefit of DKK 72 million was recorded directly in shareholders’ equity, which was related to excess tax benefits for share-based instruments. Taxation—Balance Sheet Significant components of the deferred tax asset are as follows: (DKK million) 2019 2018 Tax deductible losses 359 653 Share-Based Instruments 130 119 Capitalized R&D Costs — 4 Other temporary differences 1 8 490 784 Valuation allowance (351) (398) Total deferred tax assets 139 386 Genmab records a valuation allowance to reduce deferred tax assets to reflect the net amount that is more likely than not to be realized. Realization of our deferred tax assets is dependent upon the generation of future taxable income, the amount and timing of which are uncertain. The valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable; such assessment is required on a jurisdiction by jurisdiction basis. Based upon the weight of available evidence at December 31, 2019, Genmab determined that it was more likely than not that a portion of our deferred tax assets would be realizable and consequently released a portion of the valuation allowance against net deferred tax assets and during the fourth quarter of 2019 recorded a discrete tax benefit of DKK 29 million (2018: DKK 268 million). The decision to reverse a portion of the valuation allowance was made after management considered all available evidence, both positive and negative, including but not limited to our historical operating results, income or loss in recent periods, cumulative income in recent years, forecasted earnings, future taxable income, and significant risk and uncertainty related to forecasts. The release of the valuation allowance resulted in the recognition of certain deferred tax assets and a decrease to corporate tax expense. As of December 31, 2019, we had gross tax loss carry-forwards of DKK 1.6 billion for income tax purposes, as compared to DKK 2.6 billion in 2018. The reduction was driven primarily by the utilization of all remaining tax loss carry-forwards available for our parent entity, Genmab A/S. The DKK 1.6 billion in gross tax loss carry-forwards as of December 31, 2019 can be carried forward through various periods through 2038. Accounting Policies Corporate Tax Corporate tax, which consists of current tax and the adjustment of deferred taxes for the year, is recognized in the income statement, except to the extent that the tax is attributable to items which directly relate to shareholders’ equity or other comprehensive income. Current tax assets and liabilities for current and prior periods are measured at the amounts expected to be recovered from or paid to the tax authorities. Deferred Tax Deferred tax is accounted for under the liability method which requires recognition of deferred tax on all temporary differences between the carrying amount of assets and liabilities and the tax base of such assets and liabilities. This includes the tax value of tax losses carried forward. Deferred tax is calculated in accordance with the tax regulations in the individual countries and the tax rates expected to be in force at the time the deferred tax is utilized. Changes in deferred tax as a result of changes in tax rates are recognized in the income statement. Deferred tax assets resulting from temporary differences, including the tax value of losses to be carried forward, are recognized only to the extent that it is probable that future taxable profit will be available against which the differences can be utilized. Management’s Judgments and Estimates Deferred Tax Genmab recognizes deferred tax assets, including the tax base of tax loss carry-forwards, if management assesses that these tax assets can be offset against positive taxable income within a foreseeable future. This judgment is made on an ongoing basis and is based on numerous factors, including actual results, budgets, and business plans for the coming years. Realization of deferred tax assets is dependent upon a number of factors, including future taxable earnings, the timing and amount of which is highly uncertain. A significant portion of Genmab’s future taxable income will be driven by future events that are highly susceptible to factors outside the control of the group including commercial growth of DARZALEX, specific clinical outcomes, regulatory approval, advancement of our product pipeline, and others. In 2018, we fully released the remaining valuation allowance on deferred tax assets for our parent entity, Genmab A/S. Genmab intends to continue maintaining a valuation allowance against a significant portion of its deferred tax assets related to its subsidiaries until there is sufficient evidence to support the reversal of all or some additional portion of these allowances. The Company may release an additional part of its valuation allowance against its deferred tax assets related to its subsidiaries. This release would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period such release is recorded. 2.5 — Result Per Share (DKK million) 2019 2018 2017 Net result 2,166 1,472 1,104 (Shares) 2019 2018 2017 Average number of shares outstanding 63,126,771 61,383,972 60,934,308 Average number of treasury shares (163,958) (116,466) (100,000) Average number of shares excl. treasury shares 62,962,813 61,267,506 60,834,308 Average number of share-based instruments, dilution 674,030 777,491 1,259,874 Average number of shares, diluted 63,636,843 62,044,997 62,094,182 Basic net result per share 34.40 24.03 18.14 Diluted net result per share 34.03 23.73 17.77 In the calculation of the diluted net result per share for 2019, 299,573 warrants (of which 774 were vested) have been excluded as these share-based instruments are out of the money, compared to 177,369 warrants (of which 64,703 were vested) for 2018. In 2017, 43,019 warrants (of which none were vested) have been excluded as these share-based instruments are out of the money. Accounting Policies Basic Net Result Per Share Basic net result per share is calculated as the net result for the year divided by the weighted average number of outstanding ordinary shares, excluding treasury shares. Diluted Net Result Per Share Diluted net result per share is calculated as the net result for the year divided by the weighted average number of outstanding ordinary shares, excluding treasury shares adjusted for the dilutive effect of share equivalents. |
OPERATING ASSETS AND LIABILITIE
OPERATING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OPERATING ASSETS AND LIABILITIES | |
OPERATING ASSETS AND LIABILITIES | SECTION 3—OPERATING ASSETS AND LIABILITIES 3.1 —Intangible Assets Licenses, Total 2019 Rights, and Intangible (DKK million) Patents Assets Cost per January 1 798 798 Additions for the year 99 99 Disposals for the year — — Exchange rate adjustment — — Cost at December 31 897 897 Accumulated amortization and impairment per January 1 (328) (328) Amortization for the year (99) (99) Disposals for the year — — Exchange rate adjustment — — Accumulated amortization and impairment per December 31 (427) (427) Carrying amount at December 31 470 470 Licenses, Total 2018 Rights, and Intangible (DKK million) Patents Assets Cost per January 1 392 392 Additions for the year 406 406 Disposals for the year — — Exchange rate adjustment — — Cost at December 31 798 798 Accumulated amortization and impairment per January 1 (268) (268) Amortization for the year (60) (60) Disposals for the year — — Exchange rate adjustment — — Accumulated amortization and impairment per December 31 (328) (328) Carrying amount at December 31 470 470 (DKK million) 2019 2018 2017 Depreciation, amortization, and impairments are included in the income statement as follows: Research and development expenses 99 60 58 General and administrative expenses — — — Total 99 60 58 There were no impairment losses recognized in 2019 or 2018. Impairment losses of DKK 22 million related to licensed assets were recognized as part of research and development costs in 2017 as certain programs were discontinued. In December 2019, Genmab entered into a research collaboration and license agreement with CureVac AG. The strategic partnership will focus on the research and development of differentiated mRNA-based antibody products by combining CureVac’s mRNA technology and know-how with Genmab’s proprietary antibody technologies and expertise. Genmab will provide CureVac with a $10 million upfront payment and a €20 million equity investment (Refer to Note 3.4 for details on the equity investment). The companies will collaborate on research to identify an initial product candidate and CureVac will contribute a portion of the overall costs for the development of this product candidate, up to the time of an Investigational New Drug Application. Genmab would thereafter be fully responsible for the development and commercialization of the potential product, in exchange for $280 million in development, regulatory and commercial milestones and tiered royalties in the range from mid-single digits up to low-double digits to CureVac. The agreement also includes three additional options for Genmab to obtain commercial licenses to CureVac’s mRNA technology at pre-defined terms, exercisable within a five-year period. If Genmab exercises any of these options, it would fund all research and would develop and commercialize any resulting product candidates with CureVac eligible to receive between $275 million and $368 million in development, regulatory and commercial milestone payments for each product, dependent on the specific product concept. In addition, CureVac is eligible to receive tiered royalties in the range from mid-single digits up to low double digits per product. The carrying amount of the intangible asset related to the CureVac agreement was DKK 67 million as of December 31, 2019. The intangible asset is being amortized on a straight line basis through December 2026. In July 2018, Genmab entered into a research collaboration and exclusive license agreement with Immatics Biotechnologies GmbH (Immatics) to discover and develop next-generation bispecific immunotherapies to target multiple cancer indications. Genmab received an exclusive license to three proprietary targets from Immatics, with an option to license up to two additional targets at predetermined economics. Under the terms of the agreement, Genmab paid Immatics an upfront fee of $54 million and Immatics is eligible to receive up to $550 million in development, regulatory and commercial milestone payments for each product, as well as tiered royalties on net sales. The carrying amount of the intangible asset related to the Immatics agreements was DKK 274 million as of December 31, 2019 and DKK 323 million as of December 31, 2018. The intangible asset is being amortized on a straight line basis through July 2025. The group has previously acquired licenses and rights to technology at a total cost of DKK 152 million, which have been fully amortized during the period from 2000 to 2005. The licenses and rights are still in use by the group and contribute to our research and development activities. Accounting Policies Research and Development The group currently has no internally generated intangible assets from development, as the criteria for recognition of an asset are not met as described below. Licenses and Rights Licenses, rights, and patents are initially measured at cost and include the net present value of any future payments. The net present value of any future payments is recognized as a liability. Milestone payments are accounted for as an increase in the cost to acquire licenses, rights, and patents. Genmab acquires licenses and rights primarily to get access to targets and technologies identified by third parties. Depreciation Licenses, rights, and patents are amortized using the straight-line method over the estimated useful life of five to seven years. Amortization, impairment losses, and gains or losses on the disposal of intangible assets are recognized in the income statement as research and development costs, general and administrative expenses or discontinued operations, as appropriate. Impairment If circumstances or changes in Genmab’s operations indicate that the carrying amount of non-current assets in a cash-generating unit may not be recoverable, management reviews the asset for impairment. Management’s Judgments and Estimates Research and Development Internally Generated Intangible Assets According to the IAS 38, ‘‘Intangible Assets,’’ intangible assets arising from development projects should be recognized in the balance sheet. The criteria that must be met for capitalization are that: · the development project is clearly defined and identifiable and the attributable costs can be measured reliably during the development period; · the technological feasibility, adequate resources to complete and a market for the product or an internal use of the product can be documented; and · management has the intent to produce and market the product or to use it internally. Such an intangible asset should be recognized if sufficient certainty can be documented that the future income from the development project will exceed the aggregate cost of production, development, and sale and administration of the product. A development project involves a single product candidate undergoing a high number of tests to illustrate its safety profile and its effect on human beings prior to obtaining the necessary final approval of the product from the appropriate authorities. The future economic benefits associated with the individual development projects are dependent on obtaining such approval. Considering the significant risk and duration of the development period related to the development of biological products, management has concluded that the future economic benefits associated with the individual projects cannot be estimated with sufficient certainty until the project has been finalized and the necessary final regulatory approval of the product has been obtained. Accordingly, the group has not recognized such assets at this time and therefore all research and development costs are recognized in the income statement when incurred. Total research and development costs amounted to DKK 2,386 million in 2019, compared to DKK 1,431 million in 2018 and DKK 874 million in 2017. Antibody Clinical Trial Material Purchased for Use in Clinical Trials According to our accounting policies, antibody clinical trial material (antibodies) for use in clinical trials that are purchased from third parties will only be recognized in the balance sheet at cost and expensed in the income statement when consumed, if all criteria for recognition as an asset are fulfilled. During both 2019 and 2018, no antibodies purchased from third parties for use in clinical trials have been capitalized, as these antibodies do not qualify for being capitalized as inventory under either the ‘‘ Framework ’’ to IAS/IFRS or IAS 2, ‘‘ Inventories .’’ Management has concluded that the purchase of antibodies from third parties cannot be capitalized as the technical feasibility is not proven and no alternative use exists. Expenses in connection with purchase of antibodies are expensed as incurred. Estimation of Useful Life Genmab has licenses, rights, and patents that are amortized over an estimated useful life of the intangible asset. As of December 31, 2019, the carrying amount of the intangible assets was DKK 470 million (2018 – DKK 470 million). Genmab estimates the useful life of the intangible assets to be at least seven years based on the expected obsolescence of such assets. However, the actual useful life may be shorter or longer than seven years, depending on the development risk, the probability of success related to the development of a clinical drug as well as potential launch of competing products. 3.2 — Property, Plant and Equipment Total Equipment, property, 2019 Leasehold furniture and Assets under plant and (DKK million) improvements fixtures construction equipment Cost per January 1 95 217 1 313 Additions for the year 3 64 48 115 Transfers between the classes — — — — Disposals for the year — (2) — (2) Exchange rate adjustment — — — — Cost at December 31 98 279 49 426 Accumulated depreciation and impairment at January 1 (8) (143) — (151) Depreciation for the year (6) (34) — (40) Disposals for the year — — — — Exchange rate adjustment — — — — Accumulated depreciation on disposals — 2 — 2 Accumulated depreciation and impairment at December 31 (14) (175) — (189) Carrying amount at December 31 84 104 49 237 Total Equipment, property, 2018 Leasehold furniture and Assets under plant and (DKK million) improvements fixtures construction equipment Cost per January 1 11 170 68 249 Additions for the year 7 41 28 76 Transfers between the classes 83 12 (95) — Disposals for the year (6) (7) — (13) Exchange rate adjustment — 1 — 1 Cost at December 31 95 217 1 313 Accumulated depreciation and impairment at January 1 (6) (129) — (135) Depreciation for the year (8) (20) — (28) Disposals for the year 6 6 — 12 Exchange rate adjustment — — — — Accumulated depreciation and impairment at December 31 (8) (143) — (151) Carrying amount at December 31 87 74 1 162 (DKK million) 2019 2018 2017 Depreciation, amortization, and impairments are included in the income statement as follows: Research and development expenses 37 26 12 General and administrative expenses 3 2 — Total 40 28 12 Capital expenditures in 2019 and 2018 were primarily related to the expansion of our facilities in the Netherlands and the United States to support the growth in our product pipeline. Accounting Policies Property, plant and equipment is mainly comprised of leasehold improvements, assets under construction, and equipment, furniture and fixtures, which are measured at cost less accumulated depreciation, and any impairment losses. The cost is comprised of the acquisition price and direct costs related to the acquisition until the asset is ready for use. The present value of estimated liabilities related to the restoration of our offices in connection with the termination of the lease is added to the cost if the liabilities are provided for. Costs include direct costs, salary related expenses, and costs to subcontractors. Depreciation Depreciation, which is stated at cost net of any residual value, is calculated on a straight-line basis over the expected useful lives of the assets, which are as follows: Equipment, furniture and fixtures 3 - 5 years Computer equipment 3 years Leasehold improvements 5 years or the lease term, if shorter The useful lives and residual values are reviewed and adjusted if appropriate on a yearly basis. Assets under construction are not depreciated. Impairment If circumstances or changes in Genmab’s operations indicate that the carrying amount of non-current assets in a cash-generating unit may not be recoverable, management reviews the asset for impairment. The basis for the review is the recoverable amount of the assets, determined as the greater of the fair value less cost to sell or its value in use. Value in use is calculated as the net present value of future cash inflow generated from the asset. If the carrying amount of an asset is greater than the recoverable amount, the asset is written down to the recoverable amount. An impairment loss is recognized in the income statement when the impairment is identified. 3.3 —Leases The group has entered into lease agreements with respect to office space and office equipment. The leases are non-cancelable for various periods up to 2032. Amounts recognized in the balance sheet The balance sheet shows the following amounts relating to leases: December 31, December 31, (DKK million) 2019 2018 Right-of-use assets Properties 173 — Equipment 4 — Total right-of-use assets 177 — Lease liabilities Current 26 — Non-current 155 — Total lease liabilities 181 — There were no additions to the right-of-use assets in 2019. Amounts recognized in the statement of comprehensive income The statement of comprehensive income shows the following amounts relating to leases: December 31, December 31, December 31, (DKK million) 2019 2018 2017 Depreciation charge of right-of-use assets Properties 27 — — Equipment 1 — — Total depreciation charge of right-of-use assets 28 — — Interest expense 7 — — Expense relating to short-term leases 6 — — Interest expense is included in net financial items and expenses relating to short-term leases are included in operating expenses in the statement of comprehensive income. The total cash outflow for leases in 2019 was DKK 38 million. See the table below for activities for lease liabilities in 2019: December 31, Cash flows, Other December 31, (DKK million) 2018 net changes* 2019 Lease liabilities, due after 1 year 181 (38) 12 155 Lease liabilities, due within 1 year 24 — 2 26 Total lease liabilities 205 (38) 14 181 * Other changes include non-cash movements, including accrued interest expense which are presented as operating cash flows in the statement of cash flows when paid. Future minimum payments under our leases as of December 31, 2019 and December 31, 2018, are as follows: (DKK million) 2019 2018 Payment due Less than 1 year 32 31 1 to 3 years 64 65 More than 3 years but less than 5 years 27 45 More than 5 years 93 106 Total 216 247 During the second quarter of 2019, Genmab A/S’s subsidiary Genmab US, Inc., entered into a lease agreement with respect to office and laboratory space with a commencement date in March 2020 and is non-cancellable until August 2031. The total future minimum payments over the term of the lease are approximately DKK 215 million and estimated capital expenditures to fit out the space are approximately DKK 176 million of which DKK 48 million have been incurred and capitalized as of December 31, 2019. During the third quarter of 2019, Genmab A/S’s subsidiary Genmab B.V., entered into a lease agreement with respect to office and laboratory space with a commencement date in February 2022 and is non-cancellable until January 2032. The total future minimum payments over the term of the lease are approximately DKK 90 million and estimated capital expenditures to fit out the space are approximately DKK 70 million. Please refer to note 1.2 for disclosure of the impact of adoption of IFRS 16 on our consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Accounting Policies All leases are recognized in the balance sheet as a right-of-use (“ROU”) asset with a corresponding lease liability, except for short term assets in which the lease term is 12 months or less, or low value assets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis over the lease term. In the income statement, lease costs are replaced by depreciation of the ROU asset recognized over the lease term in operating expenses, and interest expenses related to the lease liability are classified in financial items. Genmab determines if an arrangement is a lease at inception. Genmab leases various properties and IT equipment. Rental contracts are typically made for fixed periods. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed payments, less any lease incentives. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). ROU assets are measured at cost and include 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. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less and low-value assets comprise IT equipment and small items of office furniture. 3.4 —Other Investments The Group’s other investments consist of a DKK 149 million (€20 million) investment in CureVac AG, the developer of mRNA technology, which was entered into on December 19, 2019. This investment is also a strategic partnership that will focus on the research and development of differentiated mRNA-based antibody products by combining CureVac’s mRNA technology and know-how with Genmab’s proprietary antibody technologies and expertise. The investment in CureVac AG is recorded at fair value through profit and loss. This investment represents 2.2% ownership of CureVac AG and is recorded at a fair value of DKK 149 million as of December 31, 2019. The payment related to this investment was made in March 2020. As of December 31, 2019, the investment was unpaid and was recorded within other payables. Please refer to note 3.7 for additional information regarding other payables. Accounting Policies Other investments are measured on initial recognition at fair value, and subsequently at fair value. Changes in fair value are recognized in the income statement under financial items. 3.5 — Receivables (DKK million) 2019 2018 Receivables related to collaboration agreements 2,849 1,266 Interest receivables 34 18 Other receivables 56 34 Prepayments 62 19 Total 3,001 1,337 Non-current receivables 11 10 Current receivables 2,990 1,327 Total 3,001 1,337 During 2019 and 2018, there were no losses related to receivables and the credit risk on receivables is considered to be limited. The provision for expected credit losses was not significant given that there have been no credit losses over the last three years and the high-quality nature (top tier life science companies) of Genmab’s customers are not likely to result in future default risk. The receivables are mainly comprised of royalties and milestones from our collaboration agreements and non-interest bearing receivables which are due less than one year from the balance sheet date. Please refer to note 4.2 for additional information about interest receivables and related credit risk. Accounting Policies Receivables are designated as financial assets measured at amortized cost and are initially measured at fair value or transaction price and subsequently measured in the balance sheet at amortized cost, which generally corresponds to nominal value less expected credit loss provision. Genmab utilizes a simplified approach to measuring expected credit losses and uses a lifetime expected loss allowance for all receivables. To measure the expected credit losses, receivables have been grouped based on credit risk characteristics and the days past due. Prepayments include expenditures related to a future financial year. Prepayments are measured at nominal value. 3.6 —Provisions (DKK million) 2019 2018 Provisions per January 1 1 1 Additions during the year 1 — Used during the year — — Released during the year — — Total at December 31 2 1 Non-current provisions 2 1 Current provisions — — Total at December 31 2 1 Provisions include contractual restoration obligations related to our lease of offices. In determining the fair value of the restoration obligation, assumptions and estimates are made in relation to discounting, the expected cost to restore the offices and the expected timing of those costs. The majority of non-current provisions are expected to be settled in 2022. Accounting Policies Provisions are recognized when the group has an existing legal or constructive obligation as a result of events occurring prior to or on the balance sheet date, and it is probable that the utilization of economic resources will be required to settle the obligation. Provisions are measured at management’s best estimate of the expenses required to settle the obligation. A provision for onerous contracts is recognized when the expected benefits to be derived by the group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. When the group has a legal obligation to restore our office lease in connection with the termination, a provision is recognized corresponding to the present value of expected future costs. The present value of a provision is calculated using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as an interest expense. 3.7 —Other Payables (DKK million) 2019 2018 Liabilities related to collaboration agreements 8 6 Staff cost liabilities 48 30 Other liabilities 715 213 Accounts payable 69 69 Total at December 31 840 318 Non-current other payables 1 2 Current other payables 839 316 Total at December 31 840 318 Accounting Policies Other payables are initially measured at fair value and subsequently measured in the balance sheet at amortized cost. The current other payables are comprised of liabilities that are due less than one year from the balance sheet date and are in general not interest bearing and settled on an ongoing basis during the financial year. Non-current payables are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the liability due to passage of time is recognized as interest expense. Staff Costs Liabilities Wages and salaries, social security contributions, paid leave and bonuses, and other employee benefits are recognized in the financial year in which the employee performs the associated work. Termination benefits are recognized as an expense, when the Genmab group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to terminate employment. The group’s pension plans are classified as defined contribution plans, and, accordingly, no pension obligations are recognized in the balance sheet. Costs relating to defined contribution plans are included in the income statement in the period in which they are accrued and outstanding contributions are included in other payables. Accounts Payable Accounts payable are measured in the balance sheet at amortized cost. Other Liabilities Other liabilities primarily includes accrued expenses related to our research and development project costs. |
CAPITAL STRUCTURE, FINANCIAL RI
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS | |
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS | SECTION 4—CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS 4.1 —Capital Management Genmab’s goal is to maintain a strong capital base so as to maintain investor, creditor and market confidence, and a continuous advancement of Genmab’s product pipeline and business in general. Genmab is primarily financed through partnership collaboration income and had, as of December 31, 2019, a cash position of DKK 10,971 million compared to DKK 6,106 million as of December 31, 2018. The cash position supports the advancement of our product pipeline and operations. The adequacy of our available funds will depend on many factors, including continued growth of DARZALEX sales, progress in our research and development programs, the magnitude of those programs, our commitments to existing and new clinical collaborators, our ability to establish commercial and licensing arrangements, our capital expenditures, market developments, and any future acquisitions. Accordingly, we may require additional funds and may attempt to raise additional funds through equity or debt financings, collaborative agreements with partners, or from other sources. The Board of Directors monitors the share and capital structure to ensure that Genmab’s capital resources support the strategic goals. There was no change in the group’s approach to capital management procedures in 2019. Neither Genmab A/S nor any of its subsidiaries are subject to externally imposed capital requirements. 4.2 —Financial Risk The financial risks of the Genmab group are managed centrally. The overall risk management guidelines have been approved by the Board of Directors and includes the group’s investment policy related to our marketable securities. The group’s risk management guidelines are established to identify and analyze the risks faced by the Genmab group, to set the appropriate risk limits and controls and to monitor the risks and adherence to limits. It is Genmab’s policy not to actively speculate in financial risks. The group’s financial risk management is directed solely against monitoring and reducing financial risks which are directly related to the group’s operations. The primary objective of Genmab’s investment activities is to preserve capital and ensure liquidity with a secondary objective of maximizing the income derived from security investments without significantly increasing risk. Therefore, our investment policy includes among other items, guidelines and ranges for which investments (all of which are shorter-term in nature) are considered to be eligible investments for Genmab and which investment parameters are to be applied, including maturity limitations and credit ratings. In addition, the policy includes specific diversification criteria and investment limits to minimize the risk of loss resulting from over concentration of assets in a specific class, issuer, currency, country, or economic sector. Currently, our marketable securities are administrated by two external investment managers. The guidelines and investment managers are reviewed regularly to reflect changes in market conditions, the group’s activities and financial position. In 2016, the investment policy was amended to increase the investment limits for individual securities and reduce the percent of the total portfolio required to have a maturity of less than one year. The changes were made as a result of the higher value of our marketable securities portfolio and reduced need for short duration securities. In addition to the capital management and financing risk mentioned in note 4.1, the group has identified the following key financial risk areas, which are mainly related to our marketable securities portfolio: · credit risk; · foreign currency risk; and · interest rate risk All our marketable securities are traded in established markets. Given the current market conditions, all future cash inflows including re-investments of proceeds from the disposal of marketable securities are invested in highly liquid and conservative investments. Please refer to note 4.4 for additional information regarding marketable securities. Credit Risk Genmab is exposed to credit risk and losses on our marketable securities, and bank deposits. The maximum credit exposure related to Genmab’s cash position was DKK 10,971 million as of December 31, 2019 compared to DKK 6,106 million as of December 31, 2018. The maximum credit exposure to Genmab’s receivables was DKK 3,001 million as of December 31, 2019 compared to DKK 1,337 million as of December 31, 2018. Marketable Securities To manage and reduce credit risks on our securities, Genmab’s policy is to ensure only securities from investment grade issuers are eligible for our portfolios. No issuer of marketable securities can be accepted if it is not assumed that the credit quality of the issuer would be at least equal to the rating shown below: Category S&P Moody's Fitch Short-term A-1 P-1 F-1 Long-term A-1 A3 A- Our current portfolio is spread over a number of different securities and is conservative with a focus on liquidity and security. As of December 31, 2019, 91% of our marketable securities had a triple A-rating from Moody’s, S&P, or Fitch compared to 90% at December 31, 2018. The total value of marketable securities including interest receivables amounted to DKK 7,453 million at the end of 2019 compared to DKK 5,591 million at the end of 2018. Bank Deposits To reduce the credit risk on our bank deposits, Genmab policy is only to invests its cash deposits with highly rated financial institutions. Currently, these financial institutions have a short-term Fitch and S&P rating of at least F‑1 and A‑1, respectively. In addition, Genmab maintains bank deposits at a level necessary to support the short-term funding requirements of the Genmab group. The total value of bank deposits including short-term marketable securities amounted to DKK 3,552 million as of December 31, 2019 compared to DKK 533 million at the end of 2018. The increase was due to higher short-term marketable securities classified as cash and cash equivalents driven by timing and working capital needs as of December 31, 2019. Receivables The credit risk related to our receivables is not significant based on the high quality nature of Genmab’s customers. As disclosed in note 2.1, Janssen is Genmab’s primary customer in which receivables are established for royalties and milestones achieved. Foreign Currency Risk Genmab’s presentation currency is the DKK; however, Genmab’s revenues and expenses are in a number of different currencies. Consequently, there is a substantial risk of exchange rate fluctuations having an impact on Genmab’s cash flows, profit (loss) and/or financial position in DKK. The majority of Genmab’s revenue is in USD. Exchange rate changes to the USD will result in changes to the translated value of future net result before tax and cash flows. Genmab’s revenue in USD was 97% of total revenue in 2019 as compared to 96% in 2018 and 96% in 2017. The foreign subsidiaries are not significantly affected by currency risks as both revenues and expenses are primarily settled in the foreign subsidiaries’ functional currencies. Assets and Liabilities in Foreign Currency The most significant cash flows of the group are DKK, EUR, USD and GBP and Genmab hedges its currency exposure by maintaining cash positions in these currencies. Our total marketable securities were invested in EUR (12%), DKK (23%), USD (64%) and GBP (1%) denominated securities as of December 31, 2019, compared to 16%, 30%, 53%, and 1%, as of December 31, 2018. Based on the amount of assets and liabilities denominated in EUR, USD and GBP as of December 31, 2019 and 2018, a 1% increase/decrease in the EUR to DKK exchange rate and a 10% increase/decrease in both USD to DKK exchange rate and GBP to DKK exchange rate will impact our net result before tax by approximately: Percentage Impact of change change in in exchange (DKK million) exchange rate* rate** 2019 EUR 1 % 10 USD 10 % 1,053 GBP 10 % — 2018 EUR 1 % 9 USD 10 % 362 GBP 10 % 5 * ** Accordingly, significant changes in exchange rates could cause our net result to fluctuate significantly as gains and losses are recognized in the income statement. Our EUR exposure is mainly related to our marketable securities, contracts and other costs denominated in EUR. Since the introduction of EUR in 1999, Denmark has committed to maintaining a central rate of 7.46 DKK to the EUR. This rate may fluctuate within a +/- 2.25% band. Should Denmark’s policy towards the EUR change, the DKK values of our EUR denominated assets and costs could be materially different compared to what is calculated and reported under the existing Danish policy towards the DKK/EUR. The USD currency exposure was mainly related to cash deposits, marketable securities, and receivables related to our collaborations with Janssen and Novartis. Significant changes in the exchange rate of USD to DKK could cause the net result to change materially as shown in the table above. In prior years, Genmab has entered into derivative contracts to hedge a portion of the associated currency exposure of royalty payments from net sales of DARZALEX by Janssen. As of December 31, 2019, there were no derivatives outstanding. The GBP currency exposure is mainly related to contracts and marketable securities denominated in GBP. Interest Rate Risk Genmab’s exposure to interest rate risk is primarily related to the marketable securities, as we currently do not have significant interest bearing debts . Marketable Securities The securities in which the group has invested bear interest rate risk, as a change in market derived interest rates may cause fluctuations in the fair value of the investments. In accordance with the objective of the investment activities, the portfolio of securities is monitored on a total return basis. To control and minimize the interest rate risk, the group maintains an investment portfolio in a variety of securities with a relatively short effective duration with both fixed and variable interest rates. As of December 31, 2019, the portfolio has an average effective duration of approximately 1.1 years (2018: 1.4 years) and no securities have an effective duration of more than 9 years (2018: 8 years), which means that a change in the interest rates of one percentage point will cause the fair value of the securities to change by approximately 1.1% (2018: 1.4%). Due to the short-term nature of the current investments and to the extent that we are able to hold the investments to maturity, we consider our current exposure to changes in fair value due to interest rate changes to be insignificant compared to the fair value of the portfolio. As of December 31, 2019, and December 31, 2018, the maturity profile of our marketable securities is as follows: (DKK million) Year of Maturity 2019 2018 2019 — 2,880 2020 3,891 1,574 2021 2,190 505 2022 493 138 2023 102 75 2024+ 743 401 Total 7,419 5,573 4.3 — Financial Assets and Liabilities Categories of Financial Assets and Liabilities Note 2019 2018 Financial assets measured at fair value through profit or loss Marketable securities 4.4 7,419 5,573 Other Investments 3.4 149 — Financial assets measured at amortized cost Receivables ex. prepayments 3.5 2,939 1,318 Cash and cash equivalents 3,552 533 Financial liabilities measured at amortized cost: Other payables 3.7 (840) (318) Lease Liabilities 3.3 (181) — Fair Value Measurement Marketable Securities All fair market values are determined by reference to external sources using unadjusted quoted prices in established markets for our marketable securities (Level 1). Other Investments The Group’s other investments consist of a DKK 149 million investment in CureVac AG, the developer of mRNA technology, which was entered into on December 19, 2019 (Level 3). Accounting Policies Classification of Categories of Financial Assets and Liabilities Genmab classifies its financial assets held into the following measurement categories: · those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and · those to be measured at amortized cost. The classification depends on the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. Genmab reclassifies debt investments when and only when its business model for managing those assets changes. Further details about the accounting policy for each of the categories are outlined in the respective notes. Fair Value Measurement The Genmab group measures financial instruments, such as marketable securities, at fair value at each balance sheet date. Management assessed that financial assets and liabilities measured at amortized costs such as bank deposits, receivables and other payables approximate their carrying amounts largely due to the short-term maturities of these instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: · In the principal market for the asset or liability, or · In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Genmab group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Genmab group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. For financial instruments that are measured in the balance sheet at fair value, IFRS 13 for financial instruments requires disclosure of fair value measurements by level of the following fair value measurement hierarchy for: · Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset and liability, either directly (that is, as prices) or indirectly (that is, derived from prices) · Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). For assets and liabilities that are recognized in the financial statements on a recurring basis, the group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Any transfers between the different levels are carried out at the end of the reporting period. There have not been any transfers between the different levels during 2019 and 2018. 4.4 — Marketable Securities (DKK million) 2019 2018 Cost at January 1 5,494 4,195 Additions for the year 5,812 3,521 Disposals for the year (3,926) (2,222) Cost at December 31 7,380 5,494 Fair value adjustment at January 1 79 (120) Fair value adjustment for the year (40) 199 Fair value adjustment at December 31 39 79 Net book value at December 31 7,419 5,573 Net book value in percentage of cost 101 % 101 % Market Average Market Average value effective Share value effective Share (DKK million) 2019 duration % 2018 duration % Kingdom of Denmark bonds and treasury bills 462 1.84 6 % 508 1.94 9 % Danish mortgage-backed securities 1,227 2.33 17 % 1,177 2.58 21 % DKK portfolio 1,689 2.20 23 % 1,685 2.39 30 % EUR portfolio European government bonds and treasury bills 873 1.33 12 % 875 1.38 16 % USD portfolio US government bonds and treasury bills 4,778 0.63 64 % 2,938 0.84 53 % GBP portfolio UK government bonds and treasury bills 79 0.55 1 % 75 0.55 1 % Total portfolio 7,419 1.07 100 % 5,573 1.39 100 % Marketable securities 7,419 5,573 Interest Income Total interest income amounted to DKK 120 million in 2019 compared to DKK 63 million in 2018. The increase was due to the combination of higher yield and level of investment in marketable securities in 2019 as compared to 2018. Fair Value Adjustment The total fair value adjustment was an expense of DKK 40 million in 2019 compared to income of DKK 199 million in 2018. Fair value adjustments were primarily driven by foreign exchange movements and the timing of maturities and purchases of marketable securities. Please refer to note 4.2 for additional information regarding the risks related to our marketable securities. Accounting Policies Marketable securities consist of investments in securities with a maturity greater than three months at the time of acquisition. Measurement of marketable securities depends on the business model for managing the asset and the cash flow characteristics of the asset. There are two measurement categories into which the group classifies its debt instruments: · Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss. · Fair value through profit and loss (FVPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit or loss and presented net within other gains/(losses) in the period in which it arises. Genmab’s portfolio is managed and evaluated on a fair value basis in accordance with its investment guidelines and the information provided internally to management. This business model does not meet the criteria for amortized cost or FVOCI and as a result marketable securities are measured at fair value through profit and loss. This classification is consistent with the prior year’s classification. Genmab invests its cash in deposits with major financial institutions, in Danish mortgage bonds, and notes issued by the Danish, European and American governments. The securities can be purchased and sold using established markets. Transactions are recognized at trade date. 4.5 — Financial Income and Expenses (DKK million) 2019 2018 2017 Financial income: Interest and other financial income 120 63 41 Realized and unrealized gains on marketable securities (fair value through the income statement), net 9 — — Realized and unrealized gains on fair value hedges, net — 2 30 Realized and unrealized exchange rate gains, net 99 178 — Total financial income 228 243 72 Financial expenses: Interest and other financial expenses 7 — 2 Realized and unrealized losses on marketable securities (fair value through the income statement), net — 11 20 Realized and unrealized exchange rate losses, net — — 330 Total financial expenses 7 11 352 Net financial items 221 232 280 Interest and other financial income on financial assets measured at amortized cost 22 8 2 Interest and other financial expenses on financial liabilities measured at amortized cost — — 3 Realized and unrealized exchange rate gains, net of DKK 99 million in 2019 and DKK 178 million in 2018 were driven by foreign exchange movements, which positively impacted our USD denominated portfolio and cash holdings. The USD strengthened against the DKK during 2019 and 2018, resulting in realized and unrealized exchange rates gains. More specifically, the USD/DKK foreign exchange rate increased from 6.5213 at December 31, 2018 to 6.6759 at December 31, 2019, and from 6.2067 at December 31, 2017 to 6.5213 at December 31, 2018. Realized and unrealized exchange rate losses, net of DKK 330 million in 2017 were driven by foreign exchange movements, which negatively impacted our USD denominated portfolio and cash holdings. The USD weakened significantly against the DKK during 2017, resulting in realized and unrealized exchange rates losses. More specifically, the USD/DKK foreign exchange rate decreased from 7.0528 at December 31, 2016 to 6.2067 at December 31, 2017. Please refer to note 4.2 for additional information on foreign currency risk. Accounting Policies Financial income and expenses include interest as well as realized and unrealized exchange rate adjustments and realized and unrealized gains and losses on marketable securities (designated as fair value through the income statement) and realized gains and losses and write-downs of other securities and equity interests (designated as available-for-sale financial assets). Interest and dividend income are shown separately from gains and losses on marketable securities and other securities and equity interests. Gains or losses relating to the ineffective portion of a cash flow hedge and changes in time value are recognized immediately in the income statement as part of the financial income or expenses. 4.6 — Share-Based Instruments Restricted Stock Unit Program Genmab A/S has established an RSU program (equity-settled share-based payment transactions) as an incentive for all the Genmab group’s employees, members of the Executive Management, and members of the Board of Directors. RSUs are granted by the Board of Directors in accordance with authorizations given to it by Genmab A/S’ shareholders and are subject to the incentive guidelines (Remuneration Principles) adopted by the general meeting. Under the terms of the RSU program, RSUs are subject to a cliff vesting period and become fully vested on the first banking day of the month following a period of three years from the date of grant. If an employee, member of Executive Management, or member of the Board of Directors ceases their employment or board membership prior to the vesting date, all RSUs that are granted, but not yet vested, shall lapse automatically. However, if an employee, a member of the Executive Management or a member of the Board of Directors ceases employment or board membership due to retirement or age limitation in Genmab A/S’ articles of association, death, serious sickness or serious injury then all RSUs that are granted but not yet vested shall remain outstanding and will be settled in accordance with their terms. In addition, for an employee or a member of the Executive Management, RSUs that are granted, but not yet vested shall remain outstanding and will be settled in accordance with their terms in instances where the employment relationship is terminated by Genmab without cause. Within 30 days of the vesting date, the holder of an RSU receives one share in Genmab A/S for each RSU. In jurisdictions in which Genmab as an employer is required to withhold tax and settle with the tax authority on behalf of the employee, Genmab withholds the number of RSUs that are equal to the monetary value of the employee’s tax obligation from the total number of RSUs that otherwise would have been issued to the employee upon vesting (“net settlement”). Genmab A/S may at its sole discretion in extraordinary circumstances choose to make cash settlement instead of delivering shares. The RSU program contains anti-dilution provisions if changes occur in Genmab’s share capital prior to the vesting date and provisions to accelerate vesting of RSUs in the event of change of control as defined in the RSU program. RSU Activity in 2019, 2018 and 2017 Number of RSUs held by former Number of Number of members of RSUs held by RSUs held by Number of the Board of the Board of the Executive RSUs held by Directors and Directors Management employees employees Total RSUs Outstanding at January 1, 2017 18,688 64,258 18,291 1,150 102,387 Granted* 7,661 19,599 38,691 – 65,951 Settled – – – – – Transferred (2,021) – (1,484) 3,505 – Cancelled – – (23) (271) (294) Outstanding at December 31, 2017 24,328 83,857 55,475 4,384 168,044 Outstanding at January 1, 2018 24,328 83,857 55,475 4,384 168,044 Granted* 5,224 18,020 79,395 – 102,639 Settled (9,425) (35,725) – (2,300) (47,450) Transferred – – (3,358) 3,358 – Cancelled – – (1,466) (2,865) (4,331) Outstanding at December 31, 2018 20,127 66,152 130,046 2,577 218,902 Outstanding at January 1, 2019 20,127 66,152 130,046 2,577 218,902 Granted* 3,708 25,793 87,168 73 116,742 Settled (2,631) (19,080) – (478) (22,189) Transferred (1,251) – (8,355) 9,606 – Cancelled – – – (5,548) (5,548) Outstanding at December 31, 2019 19,953 72,865 208,859 6,230 307,907 *RSUs held by the Board of Directors includes RSUs granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries. Please refer to note 5.1 for additional information regarding the number of RSUs held by the Executive Management and the Board of Directors. The weighted average fair value of RSUs granted was DKK 1,511.70, DKK1,033.95 and DKK 1,128.30 in 2019, 2018 and 2017, respectively. Warrant Program Genmab A/S has established warrant programs (equity-settled share-based payment transactions) as an incentive for all the Genmab group’s employees, and members of the Executive Management. Warrants are granted by the Board of Directors in accordance with authorizations given to it by Genmab A/S’ shareholders. Warrant grants to Executive Management are subject to the incentive guidelines (Remuneration Principles) adopted by the general meeting. Under the terms of the warrant programs, warrants are granted at an exercise price equal to the share price on the grant date. According to the warrant programs, the exercise price cannot be fixed at a lower price than the market price at the grant date. In connection with exercise, the warrants shall be settled with the delivery of shares in Genmab A/S. The warrant programs contain anti-dilution provisions if changes occur in Genmab’s share capital prior to the warrants being exercised. Warrants Granted From August 2004 Until April 2012 Under the August 2004 warrant program, warrants can be exercised starting from one year after the grant date. As a general rule, the warrant holder may only exercise 25% of the warrants granted per full year of employment or affiliation with Genmab after the grant date. However, the warrant holder will be entitled to continue to be able to exercise all warrants on a regular schedule in instances where the employment relationship is terminated by Genmab without cause. In case of a change of control event as defined in the warrant programs, the warrant holder will immediately be granted the right to exercise all of his/her warrants regardless of the fact that such warrants would otherwise only become fully vested at a later point in time. Warrant holders who are no longer employed by or affiliated with Genmab will, however, only be entitled to exercise such percentages as would otherwise have vested under the terms of the warrant program. Warrants Granted From April 2012 Until March 2017 Following the Annual General Meeting in April 2012, a new warrant program was adopted by the Board of Directors. Whereas warrants granted under the August 2004 warrant program will lapse on the tenth anniversary of the grant date, warrants granted under the new April 2012 warrant program will lapse at the seventh anniversary of the grant date. All other terms in the warrant programs are identical. Warrants Granted From March 2017 In March 2017, a new warrant program was adopted by the Board of Directors. Whereas warrants granted under the April 2012 warrant program vested annually over a four year period, warrants granted under the new March 2017 warrant program are subject to a cliff vesting period and become fully vested three years from the date of grant. All other terms in the warrant programs are identical. Warrant Activity in 2019, 2018 and 2017 Number of warrants held by Number of former members Number of warrants held of the Executive warrants held by the Number of Management, Weighted by the Board Executive warrants held Board of Directors Total average of Directors Management by employees and employees warrants exercise price Outstanding at January 1, 2017 129,742 877,418 644,097 539,054 2,190,311 311.52 Granted* 4,125 59,819 118,745 — 182,689 1,123.91 Exercised (31,625) (377,500) (131,709) (294,784) (835,618) 257.19 Expired — — — (8,200) (8,200) 348.20 Cancelled — — (73) (10,923) (10,996) 722.48 Transfers (10,000) — (56,765) 66,765 — — Outstanding at December 31, 2017 92,242 559,737 574,295 291,912 1,518,186 436.01 Exercisable at year end 79,380 472,119 262,414 270,458 1,084,371 233.81 Exercisable warrants in the money at year end 78,400 464,832 241,241 269,313 1,053,786 201.27 Outstanding at January 1, 2018 92,242 559,737 574,295 291,912 1,518,186 436.01 Granted* 3,161 50,464 222,882 — 276,507 1,034.66 Exercised (20,925) (130,000) (46,883) (114,089) (311,897) 241.34 Expired — — — (37,875) (37,875) 253.76 Cancelled — — (4,582) (17,129) (21,711) 940.01 Transfers — — (39,624) 39,624 — — Outstanding at December 31, 2018 74,478 480,201 706,088 162,443 1,423,210 592.14 Exercisable at year end 62,647 355,347 297,128 152,743 867,865 295.02 Exercisable warrants in the money at year end 60,688 340,775 257,115 148,701 807,279 230.43 Outstanding at January 1, 2019 74,478 480,201 706,088 162,443 1,423,210 592.14 Granted* 3,925 — 303,066 228 307,219 1,483.58 Exercised (15,750) (132,400) (56,237) (95,044) (299,431) 212.23 Expired — — — (2,000) (2,000) 129.75 Cancelled — — — (15,374) (15,374) 1,049.34 Transfers (319) — (93,944) 94,263 — — Outstanding at December 31, 2019 62,334 347,801 858,973 144,516 1,413,624 862.03 Exercisable at year end 50,227 230,233 225,855 131,933 638,248 407.89 Exercisable warrants in the money at year end 50,227 227,733 219,403 129,698 627,061 385.84 *Warrants held by the Board of Directors includes warrants granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries. Please refer to note 5.1 for additional information regarding the number of warrants held by the Executive Management and the Board of Directors. As of December 31, 2019, the 1,413,624 outstanding warrants amounted to 2% of the share capital, compared to 2% for 2018 and 2017. For exercised warrants in 2019 the weighted average share price at the exercise date amounted to DKK 1,267.92, compared to DKK 1,206.11 in 2018 and DKK 1,368.32 in 2017. Weighted Average Outstanding Warrants at December 31, 2019 Number of Weighted average Number of warrants remaining contractual warrants Exercise price Grant Date outstanding life (in years) exercisable DKK 31.75 October 14, 2011 5,950 1.79 5,950 40.41 June 22, 2011 80,205 1.48 80,205 46.74 June 2, 2010 85,000 0.42 85,000 55.85 April 6, 2011 5,500 1.27 5,500 66.60 December 9, 2010 35,500 0.94 35,500 67.50 October 14, 2010 3,250 0.79 3,250 68.65 April 21, 2010 3,325 0.31 3,325 147.50 April 17, 2013 1,500 0.30 1,500 199.00 June 12, 2013 1,000 0.45 1,000 210.00 February 10, 2014 2,750 1.11 2,750 220.40 October 15, 2014 17,750 1.79 17,750 225.30 June 12, 2014 4,625 1.45 4,625 225.90 December 6, 2013 137,059 0.93 137,059 231.50 October 10, 2013 3,665 0.78 3,665 337.40 December 15, 2014 50,986 1.96 50,986 466.20 March 26, 2015 8,100 2.24 8,100 623.50 June 11, 2015 2,575 2.45 2,575 636.50 October 7, 2015 21,000 2.77 21,000 815.50 March 17, 2016 12,449 3.21 8,390 939.50 December 10, 2015 73,162 2.94 73,162 962.00 June 7, 2018 14,564 5.44 — 1,025.00 December 10, 2018 206,097 5.94 — 1,032.00 December 15, 2017 131,444 4.96 — 1,050.00 September 21, 2018 27,082 5.73 — 1,136.00 October 6, 2016 18,450 3.77 14,089 1,145.00 December 15, 2016 83,287 3.96 62,190 1,147.50 June 6, 2019 21,343 6.43 — 1,155.00 March 29, 2019 7,959 6.25 — 1,161.00 March 1, 2019 19,830 6.17 — 1,210.00 April 10, 2018 14,881 5.28 — 1,233.00 June 9, 2016 13,763 3.44 9,903 1,334.50 October 11, 2019 62,848 6.78 — 1,402.00 March 28, 2017 8,736 4.24 — 1,408.00 June 8, 2017 5,151 4.44 — 1,424.00 February 10, 2017 1,526 4.11 774 1,427.00 March 29, 2017 8,400 4.25 — 1,432.00 October 5, 2017 17,901 4.76 — 1,615.00 December 5, 2019 195,011 6.93 — 862.03 1,413,624 4.05 638,248 Weighted Average Outstanding Warrants at December 31, 2018 Number of Weighted average Number of warrants remaining contractual warrants Exe |
OTHER DISCLOSURES
OTHER DISCLOSURES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER DISCLOSURES | |
OTHER DISCLOSURES | SECTION 5—OTHER DISCLOSURES 5.1 —Remuneration of the Board of Directors and Executive Management The total remuneration of the Board of Directors and Executive Management is as follows: (DKK million) 2019 2018 2017 Wages and salaries 42 34 39 Share-based compensation expenses 38 32 28 Defined contribution plans 1 1 1 Total 81 67 68 The remuneration packages for the Board of Directors and Executive Management are described below in further detail. The remuneration packages are denominated in DKK, EUR, or USD. The Compensation Committee performs an annual review of the remuneration packages. All incentive and variable remuneration shall be considered and adopted at the company’s annual general meeting. In accordance with Genmab’s accounting policies, described in note 2.3, share-based compensation is included in the income statement and reported in the remuneration tables in this note. Such share-based compensation expense represents a calculated fair value of instruments granted and does not represent actual cash compensation received by the board members or executives. Please refer to note 4.6 for additional information regarding Genmab’s share-based compensation programs. Remuneration to the Board of Directors Annual board base fee and fees for committee work Purpose and link to strategy: Ensure Genmab can attract qualified individuals to the Board of Directors. Opportunity: Basic board fee of DKK 400,000—Deputy Chairman receives double and Chairman receives triple; Audit and Finance Committee membership basic fee of DKK 100,000 with Chairman receiving fee of DKK 150,000 plus a fee per meeting of DKK 10,000; Compensation Committee membership basic fee of DKK 80,000 with Chairman receiving fee of DKK 120,000 plus a fee per meeting of DKK 10,000; Nominating and Corporate Governance Committee membership basic fee of DKK 70,000 with Chairman receiving fee of DKK 100,000 plus a fee per meeting of DKK 10,000; and Scientific Committee membership basic fee of DKK 100,000 with Chairman receiving fee of DKK 130,000 plus a fee per meeting of DKK 10,000. Changes compared to 2018 and 2017 : None. Share-Based Compensation Purpose and link to strategy: Share-based instruments constitute a common part of the remuneration paid to members of the Board of Directors in competing international biotech and biopharmaceutical companies. The use of share-based instruments enables Genmab to remain competitive in the international market and to be able to attract and retain qualified members of the Board of Directors on a continuous basis. Performance metrics: To ensure the Board of Directors’ independence and supervisory function, vesting of restricted stock units (RSUs) granted to members of the Board of Directors shall not be subject to fulfilment of forward-looking performance criteria. Opportunity: A new member of the Board of Directors may be granted RSUs upon election corresponding to a value (at the time of grant) of up to four (4) times the fixed annual base fee. In addition the members of the Board of Directors may be granted RSUs corresponding to a value (at the time of grant) of up to one (1) times the fixed annual base fee, for the Chairman the value shall be of up to two (2) times the fixed annual base fee and for the Deputy Chairman the value shall be of up to one point five (1.5) times the fixed annual base fee on an annual basis. The share-based compensation expense for 2019 of DKK 5 million shown below includes the amortization of the non-cash share- based compensation expense relating to warrants granted before 2014 and RSUs granted over several periods. Following an amendment of the guidelines for incentive-based remuneration of the Board of Directors and Executive Management by the general meeting in 2014, share-based compensation granted to board members may only be in the form of RSUs. Please refer to note 4.6 for additional information regarding the ‘‘Number of RSUs held’’ and ‘‘Number of warrants held’’ overviews. Changes compared to 2018 and 2017: None. Shared-based Shared-based Shared-based Base board Committee compensation Base Committee compensation Base Committee compensation (DKK million) fee fees expenses 2019 board fee fees expenses 2018 board fee fees expenses 2017 Mats Pettersson 1.2 0.2 0.8 2.2 1.2 0.3 0.9 2.4 1.2 0.3 1.0 2.5 Anders Gersel Pedersen 0.4 0.4 0.6 1.4 0.5 0.3 0.6 1.4 0.8 0.3 0.7 1.8 Pernille Erenbjerg 0.4 0.3 0.4 1.1 0.4 0.3 0.5 1.2 0.4 0.3 0.7 1.4 Paolo Paoletti 0.4 0.3 0.4 1.1 0.4 0.2 0.5 1.1 0.4 0.1 0.7 1.2 Rolf Hoffmann 0.4 0.3 0.8 1.5 0.4 0.3 0.7 1.4 0.3 0.2 0.4 0.9 Deirdre P. Connelly 0.8 0.5 0.9 2.2 0.7 0.3 0.7 1.7 0.3 0.2 0.4 0.9 Peter Storm Kristensen* 0.4 — 0.4 0.8 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Rick Hibbert** 0.1 — 0.4 0.5 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Daniel J. Bruno* 0.4 — 0.4 0.8 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Mijke Zachariasse* 0.3 — — 0.3 — — — — — — — — Burton G. Malkiel*** — — — — — — — — 0.1 — 0.9 1.0 Total 4.8 2.0 5.1 11.9 4.8 1.7 4.8 11.3 4.7 1.4 5.4 11.5 *Employee elected board member ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019 *** Stepped down from the Board of Directors at the Annual General Meeting in March 2017 Remuneration to the Executive Management Base Salary Purpose and link to strategy: Reflect the individual’s skills and experience, role and responsibilities. Performance metrics: Any increase based both on individual and company performance as well as benchmark analysis. Opportunity: Fixed. Changes compared to 2018 and 2017: Effective, January 1, 2019, base salary increased by 3% for the CEO, CFO, and 10% for the CDO in local currency, compared to 3% for the CEO and 3% for CFO, effective January 1, 2018 and 2017 and 3% for the CDO effective July 1, 2018 and 2017. Pension and other benefits Purpose and link to strategy: Provide a framework to save for retirement; provide customary benefits including car and telephone allowance; provide sign-on bonus for new Executive Management; and provide tax equalization payment for executive management. Performance metrics: None Opportunity: With respect to providing a framework to save for retirement, executive management is given a fixed amount or percentage of base salary. With respect to providing a sign-on bonus for new Executive Management, a new member of the Executive Management may receive a sign-on payment upon engagement subject to certain claw-back provisions. With respect to providing tax equalization payment for Executive Management, the CEO received €0.5 million and CFO received $0.1 million payments for tax equalization for the higher tax rate in Denmark versus their resident countries of the Netherlands and the United States. Changes compared to 2018 and 2017: CEO received a tax equalization payment in 2019 Annual Cash Bonus Purpose and link to strategy: Incentivize executives to achieve key objectives on an annual basis Performance metrics: Achievement of predetermined and well-defined annual milestones Opportunity: Maximum 60% to 100% of annual gross salaries dependent on their position. Extraordinary bonuses are awarded up to a maximum up to 15% of their annual gross salaries, based on the occurrence of certain special events or achievements. In 2019, the current Executive Management team received a total cash bonus of DKK 15 million (2018: DKK 11 million). Changes compared to 2018 and 2017: None. Share-Based Compensation Purpose and link to strategy: Incentivize executives over the longer term aligned to strategy and creation of shareholder value. Performance metrics: Linked to Genmab’s financial and strategic priorities as an incentive to increase the future value of the company but also in recognition of past contributions and accomplishments. Opportunity: As a main rule, the members of the executive management may on an annual basis be granted share-based instruments corresponding to a value (at the time of grant) of up to two (2) times the member’s annual base salary, calculated before any pension contribution and bonus payment, in the year of grant. However, in exceptional cases, international, and in particular US based, members of the executive management, may on an annual basis be granted share-based instruments corresponding to a value (at the time of grant) of up to four (4) times the member’s annual base salary, calculated before any pension contribution and bonus payment, in the year of grant. Notwithstanding the above, in no event may the value (at the time of grant) of share-based instruments granted to a member of the executive management on an annual basis exceed DKK 25 million. Annual grant of share-based instruments to members of the executive management is used primarily as an incentive to increase the future value of the company but also in recognition of past contributions and accomplishments. Furthermore, a new member of the executive management may be granted share-based instruments upon engagement or promotion. The share-based instruments granted to the members of the executive management may be in the form of restricted stock units or a combination of restricted stock units and warrants (options to subscribe for shares in the company). If members of the executive management are granted a combination of restricted stock units and warrants, the proportional value of the warrants may not exceed 25% of the total value (at the time of grant). Vesting of restricted stock units and warrants granted to members of the executive management may be subject to fulfilment of forward-looking performance criteria as determined by the board of directors. The share-based compensation expense for 2019 of DKK 33 million shown below includes the amortization of the non-cash share-based compensation expense relating to warrants & RSUs granted over several periods. In 2019, 25,793 RSUs were granted to the Executive Management, with a total fair value of DKK 42 million (2018: 50,464 warrants and 18,020 RSUs, with a fair value of DKK 37 million). Please refer to note 4.6 for additional information regarding the ‘‘Number of RSUs held’’ and ‘‘Number of warrants held’’ overviews. Changes compared to 2018 and 2017: Two changes related to Executive Management’s shared-based compensation in 2019 compared to 2018: (1) the members of the executive management may on an annual basis be granted share-based instruments corresponding to a value (at the time of grant) of up to four times the member’s annual base salary (2018: two times the member’s annual salary), and (2) the proportional value of the warrants may not exceed 25% of the total value at the time of grant (2018: 50%). None in 2017. Shareholding requirement for members of Executive Management Purpose and link to strategy: Incentivize executives over the longer term aligned to strategy and creation of shareholder value Performance metrics: None. Opportunity: Each member of the Executive Management shall be required to hold a number of Genmab A/S shares corresponding to the value of such member’s annual base salary: · The number of shares shall be fixed at commencement of the employment as, or promotion to, member of the Executive Management · May be built up over a five (5) year period from the date of employment or promotion · For current members of the Executive Management, the number of shares is finally fixed at the date of adoption of these Remuneration Principles (April 10, 2018) · The Board of Directors may diverge from this shareholding requirement The Company shall be entitled to reclaim in full or in part variable components of remuneration paid to the member of the Executive Management on the basis of data, which proved to be misstated. Warrants granted to the members of the Executive Management will be subject to an additional two (2) year lock-in period upon vesting. Changes compared to 2018 and 2017 : New requirement starting in 2018. 2019 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 7.3 1.0 3.6 8.4 14.9 35.2 David A. Eatwell 4.3 0.1 0.9 3.2 8.0 16.5 Judith Klimovsky 4.1 0.1 — 3.1 9.7 17.0 Total 15.7 1.2 4.5 14.7 32.6 68.7 2018 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 7.1 1.2 0.2 6.4 13.4 28.3 David A. Eatwell 3.9 0.2 1.4 2.1 8.1 15.7 Judith Klimovsky 3.6 0.1 0.2 2.1 5.9 11.9 Total 14.6 1.5 1.8 10.6 27.4 55.9 2017 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 6.9 1.1 0.2 6.2 12.6 27.0 David A. Eatwell 4.0 0.2 1.0 2.1 7.9 15.2 Judith Klimovsky 3.1 0.1 6.6 1.9 2.2 13.9 Total 14.0 1.4 7.8 10.2 22.7 56.1 Please refer to the section “Senior Management” in the Management section for additional information regarding the Executive Management Severance Payments: In the event Genmab terminates the service agreements with each member of the Executive Management team without cause, Genmab is obliged to pay the Executive Officer his existing salary for one or two years after the end of the one year notice period. However, in the event of termination by Genmab (unless for cause) or by a member of Executive Management as a result of a change of control of Genmab, Genmab is obliged to pay a member of the Executive Management a compensation equal to his/her existing total salary (including benefits) for up to two years in addition to the notice period. It furthermore follows from Genmab’s warrant and RSU programs, that in certain “good leaver” situations outstanding warrants and RSUs awarded under these programs will continue to vest which could potentially make the termination payments exceed two years of remuneration. In case of the termination of the service agreements of the Executive Management without cause, the total impact on our financial position is estimated to approximately DKK 46 million as of December 31, 2019, compared to DKK 42 million in 2018 and DKK 40 million in 2017. Please refer to note 5.5 for additional information regarding the potential impact in the event of change of control of Genmab. Number of Ordinary Shares Owned and Share-Based Instruments Held December 31, December 31, Market value Number of ordinary shares owned 2018 Acquired Sold Transfers 2019 (DKK million)* Board of Directors Mats Pettersson 24,800 7,207 — — 32,007 47.4 Anders Gersel Pedersen 8,000 718 — — 8,718 12.9 Pernille Erenbjerg 2,700 478 — — 3,178 4.7 Paolo Paoletti 3,337 478 (478) — 3,337 4.9 Rolf Hoffmann 1,050 — — — 1,050 1.6 Deirdre P. Connelly 2,200 — — — 2,200 3.3 Peter Storm Kristensen — 500 (300) — 200 0.3 Rick Hibbert** — — — — — — Mijke Zachariasse — — — — — — Daniel J. Bruno — — — — — — 42,087 9,381 (778) — 50,690 75.1 Executive Management Jan van de Winkel 662,400 6,084 — — 668,484 990.4 David A. Eatwell 30,825 49,436 — — 80,261 118.9 Judith Klimovsky — — — — — — 693,225 55,520 — — 748,745 1,109.3 Total 735,312 64,901 (778) — 799,435 1,184.4 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. December 31, December 31, Market value Number of ordinary shares owned 2017 Acquired Sold Transfers 2018 (DKK million)* Board of Directors Mats Pettersson 10,000 14,800 — — 24,800 26.5 Anders Gersel Pedersen 7,000 5,475 (4,475) — 8,000 8.5 Pernille Erenbjerg — 2,700 — — 2,700 2.9 Paolo Paoletti 637 2,700 — — 3,337 3.6 Rolf Hoffmann 1,050 — — — 1,050 1.1 Deirdre P. Connelly — 2,200 — — 2,200 2.3 Peter Storm Kristensen — — — — — — Rick Hibbert — — — — — — Daniel J. Bruno — — — — — — 18,687 27,875 (4,475) — 42,087 44.9 Executive Management Jan van de Winkel 640,000 22,400 — — 662,400 707.1 David A. Eatwell 17,500 13,325 — — 30,825 32.9 Judith Klimovsky — — — — — — 657,500 35,725 — — 693,225 740.0 Total 676,187 63,600 (4,475) — 735,312 784.9 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. December 31, December 31, Market value Number of ordinary shares owned 2016 Acquired Sold Transfers 2017 (DKK million)* Board of Directors Mats Pettersson 10,000 — — — 10,000 10.3 Anders Gersel Pedersen 7,000 — — — 7,000 7.2 Burton G. Malkiel 19,375 2,000 — (21,375) — — Pernille Erenbjerg — — — — — — Paolo Paoletti 637 — — — 637 0.6 Rolf Hoffmann — 1,050 — — 1,050 1.1 Deirdre P. Connelly — — — — — — Peter Storm Kristensen — — — — — — Rick Hibbert — — — — — — Daniel J. Bruno — — — — — — 37,012 3,050 — (21,375) 18,687 19.2 Executive Management Jan van de Winkel 602,500 37,500 — — 640,000 658.6 David A. Eatwell 2,500 15,000 — — 17,500 18.0 Judith Klimovsky — — — — — — 605,000 52,500 — — 657,500 676.6 Total 642,012 55,550 — (21,375) 676,187 695.8 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2018 Granted Exercised Expired Transfers 2019 granted in 2019 warrants (DKK million) Board of Directors Mats Pettersson 26,250 — (6,250) — — 20,000 — 225.90 Anders Gersel Pedersen 29,000 — (9,000) — — 20,000 — 133.16 Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen* 2,515 368 (500) — — 2,383 0.2 928.96 Rick Hibbert** 876 — — (876) — — — Mijke Zachariasse* — 351 — — 557 908 0.2 1,352.72 Daniel J. Bruno* 15,837 3,206 — — — 19,043 1.4 1,038.68 74,478 3,925 (15,750) — (319) 62,334 1.8 487.74 Executive Management Jan van de Winkel 108,068 — (42,400) — — 65,668 — 1,060.39 David A. Eatwell 335,201 — (90,000) — — 245,201 — 264.91 Judith Klimovsky 36,932 — — — — 36,932 — 1,118.99 480,201 — (132,400) — — 347,801 — 505.80 Total 554,679 3,925 (148,150) — (319) 410,135 1.8 503.05 * Each employee-elected Board Member was granted warrants as an employee of Genmab A/S or its subsidiaries. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2017 Granted Exercised Expired Transfers 2018 granted in 2018 warrants (DKK million) Board of Directors Mats Pettersson 38,750 — (12,500) — — 26,250 — 207.23 Anders Gersel Pedersen 32,750 — (3,750) — — 29,000 — 116.83 Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen 2,515 — — — — 2,515 — 663.38 Rick Hibbert* 1,451 350 (925) — — 876 0.1 998.81 Daniel J. Bruno* 16,776 2,811 (3,750) — — 15,837 1.0 922.01 92,242 3,161 (20,925) — — 74,478 1.1 348.74 Executive Management Jan van de Winkel 164,802 23,266 (80,000) — — 108,068 8.5 748.36 David A. Eatwell 373,056 12,145 (50,000) — — 335,201 4.4 215.41 Judith Klimovsky 21,879 15,053 — — — 36,932 5.5 1,118.99 559,737 50,464 (130,000) — — 480,201 18.5 404.84 Total 651,979 53,625 (150,925) — — 554,679 19.6 397.31 * Each employee-elected Board Member was granted warrants as an employee of Genmab A/S or its subsidiaries. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2016 Granted Exercised Expired Transfers 2017 granted in 2017 warrants (DKK million) Board of Directors Mats Pettersson 38,750 — — — — 38,750 — 187.96 Anders Gersel Pedersen 54,000 — (21,250) — — 32,750 — 108.80 Burton G. Malkiel 14,500 — (4,500) — (10,000) — — — Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen* 1,917 598 — — — 2,515 0.2 663.38 Rick Hibbert* 1,962 239 (750) — — 1,451 0.1 531.65 Daniel J. Bruno* 18,613 3,288 (5,125) — — 16,776 1.1 799.19 129,742 4,125 (31,625) — (10,000) 92,242 1.4 289.39 Executive Management Jan van de Winkel 392,841 24,461 (252,500) — — 164,802 8.2 455.68 David A. Eatwell 484,577 13,479 (125,000) — — 373,056 4.6 183.50 Judith Klimovsky — 21,879 — — — 21,879 8.5 1,183.65 877,418 59,819 (377,500) — - 559,737 21.3 302.73 Total 1,007,160 63,944 (409,125) — (10,000) 651,979 22.7 300.84 Fair value RSUs December 31, December 31, granted in Number of RSUs held 2018 Granted Settled Transfers 2019 2019 (DKK million) Board of Directors Mats Pettersson 3,298 495 (957) — 2,836 0.8 Anders Gersel Pedersen 2,278 247 (718) — 1,807 0.4 Pernille Erenbjerg 1,649 247 (478) — 1,418 0.4 Paolo Paoletti 1,649 247 (478) — 1,418 0.4 Rolf Hoffmann 1,899 247 — — 2,146 0.4 Deirdre P. Connelly 2,094 371 — — 2,465 0.6 Peter Storm Kristensen* 1,481 351 — — 1,832 0.6 Rick Hibbert** 1,439 — — (1,439) — — Mijke Zachariasse* — 346 — 188 534 0.6 Daniel J. Bruno* 4,340 1,157 — — 5,497 1.8 20,127 3,708 (2,631) (1,251) 19,953 6.0 Executive Management Jan van de Winkel 33,505 15,479 (11,387) — 37,597 24.9 David A. Eatwell 20,068 — (7,693) — 12,375 — Judith Klimovsky 12,579 10,314 — — 22,893 16.7 66,152 25,793 (19,080) — 72,865 41.6 Total 86,279 29,501 (21,711) (1,251) 92,818 47.6 * Each employee-elected Board Member was granted 247 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. Fair value RSUs December 31, December 31, granted in Number of RSUs held 2017 Granted Settled Transfers 2018 2018 (DKK million) Board of Directors Mats Pettersson 4,818 780 (2,300) — 3,298 0.8 Anders Gersel Pedersen 3,613 390 (1,725) — 2,278 0.4 Pernille Erenbjerg 3,959 390 (2,700) — 1,649 0.4 Paolo Paoletti 3,959 390 (2,700) — 1,649 0.4 Rolf Hoffmann 1,509 390 — — 1,899 0.4 Deirdre P. Connelly 1,509 585 — — 2,094 0.6 Peter Storm Kristensen* 1,091 390 — — 1,481 0.4 Rick Hibbert* 924 515 — — 1,439 0.5 Daniel J. Bruno* 2,946 1,394 — — 4,340 1.4 24,328 5,224 (9,425) — 20,127 5.4 Executive Management Jan van de Winkel 47,597 8,308 (22,400) — 33,505 8.5 David A. Eatwell 29,056 4,337 (13,325) — 20,068 4.4 Judith Klimovsky 7,204 5,375 — — 12,579 5.5 83,857 18,020 (35,725) — 66,152 18.5 Total 108,185 23,244 (45,150) — 86,279 23.8 * Each employee-elected Board Member was granted 390 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. Fair value RSUs December 31, December 31, granted in Number of RSUs held 2016 Granted Settled Transfers 2017 2017 (DKK million) Board of Directors Mats Pettersson 4,043 775 — — 4,818 0.8 Anders Gersel Pedersen 3,032 581 — — 3,613 0.6 Burton G. Malkiel 2,021 — — (2,021) — — Pernille Erenbjerg 3,571 388 — — 3,959 0.4 Paolo Paoletti 3,571 388 — — 3,959 0.4 Rolf Hoffmann — 1,509 — — 1,509 2.0 Deirdre P. Connelly — 1,509 — — 1,509 2.0 Peter Storm Kristensen* 508 583 — — 1,091 0.6 Rick Hibbert* 458 466 — — 924 0.5 Daniel J. Bruno* 1,484 1,462 — — 2,946 1.5 18,688 7,661 — (2,021) 24,328 8.8 Executive Management Jan van de Winkel 39,606 7,991 — — 47,597 8.2 David A. Eatwell 24,652 4,404 — — 29,056 4.5 Judith Klimovsky — 7,204 — — 7,204 8.5 64,258 19,599 — — 83,857 21.3 Total 82,946 27,260 — (2,021) 108,185 30.1 * Each employee-elected Board Member was granted 388 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. Following Genmab A/S’ Annual General Meeting on March 29, 2019, the Board of Directors is comprised of five independent directors, one non-independent director, and three employee-elected directors. Mats Pettersson, Dr. Anders Gersel Pedersen, Deirdre P. Connelly, Pernille Erenbjerg, Rolf Hoffmann and Dr. Paolo Paoletti were re-elected to the Board of Directors for a one year period. Peter Storm Kristensen, Mijke Zachariasse and Dan Bruno were elected to the Board of Directors by the employees for a three year period. Dr. Rick Hibbert stepped down from the Board of Directors. The reclassification of the employee elected board members’ shares and share-based instruments is shown in the transferred column of the tables above. The Board of Directors convened and constituted itself with Mats Pettersson as Chairman and Deirdre P. Connelly as Deputy Chairman. Other than the remuneration to the Board of Directors and the Executive Management and the transactions detailed in the tables above, no other significant transactions with the Board of Directors or the Executive Management took place during 2019. 5.2 —Related Party Disclosures Genmab’s related parties are the parent company’s Board of Directors, Executive Management, and close members of the family of these persons. Transactions with the Board of Directors and Executive Management Genmab has not granted any loans, guarantees, or other commitments to or on behalf of any of the members of the Board of Directors or Executive Management. Other than the remuneration and other transactions relating to the Board of Directors and Executive Management described in note 5.1, no other significant transactions have taken place with the Board of Directors or the Executive Management during 2019, 2018 or 2017. 5.3 —Company Overview Genmab A/S (parent company) holds investments either directly or indirectly in the following subsidiaries: Ownership and Ownership and votes votes Name Domicile 2019 2018 Genmab B.V. Utrecht, the Netherlands 100 % 100 % Genmab Holding B.V. Utrecht, the Netherlands 100 % 100 % Genmab US, Inc. New Jersey, USA 100 % 100 % Genmab K.K. Tokyo, Japan 100 % — 5.4 —Commitments Guarantees and Collaterals There were no bank guarantees as of December 31, 2019 or 2018. Other Purchase Obligations The group has entered into a number of agreements primarily related to research and development activities. These short term contractual obligations amounted to DKK 564 million as of December 31, 2019, all of which is due in less than two years (2018: DKK 787 million). We also have certain contingent commitments under our license and collaboration agreements that may become due for future payments. As of December 31, 2019, these contingent commitments amounted to approximately DKK 9,520 million in potential future development, regulatory and commercial milestone payments to third parties under license and collaboration agreements for our pre-clinical and clinical-stage development programs as compared to DKK 5,595 million as of December 31, 2018. These milestone payments generally become due and payable only upon the achievement of certain development, clinical, regulatory or commercial milestones. The events triggering such payments or obligations have not yet occurred. In addition to the above obligations, we enter into a variety of agreements and financial commitments in the normal course of business. The terms generally allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to the delivery of goods or performance of services. It is not possible to predict the maximum potential amount of future payments under these agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. 5.5 —Contingent Assets, Contingent Liabilities and Subsequent Events Contingent Assets and Liabilities License and Collaboration Agreements We are entitled to potential milestone payments and royalties on successful commercialization of products developed under license and collaboration agreements with our partners. Since the size and timing of such payments are uncertain until the milestones are reached, the agreements may qualify as contingent assets. However, it is impossible to measure the value of such contingent assets, and, accordingly, no such assets have been recognized. As part of the license and collaboration agreements that Genmab has entered into, once a product is developed and commercialized, Genmab may be required to make milestone and royalty payments. It is impossible to measure the value of such future payments, but Genmab expects to generate future income from such products which will exceed any milestone and royalty payments due, and accordingly no such liabilities have been recognized. Derivative Financial Instruments Genmab has entered into an International Swaps and Derivatives Association master agreement. The master agreement with Genmab’s financial institution counterparty also includes a credit support annex which contains provisions that require Genmab to post collateral should the value of the derivative liabilities exceed DKK 50 million (2018: DKK 50 million). As of December 31, 2019 and 2018, Genmab has not been required to post any collateral. There were no outstanding receivables related to derivative financial instruments as of December 31, 2019 or 2018. In addition, the agreement requires Genmab to maintain a cash position of DKK 258.5 million at all times or the counterparty has the right to terminate the agreement. Upon termination, the DKK 50 million (2018: DKK 50 million) threshold amount is no longer applicable and the value of the derivative liability, if any, could be due to the counterparty upon request. Legal Matter – MorphoSys Patent Infringement Complaint In April 2016, MorphoSys filed a complaint at the U.S. District Court of Delaware against Genmab and Janssen Biotech, Inc. for patent infringement based on activities relating to the manufacture, use and sale of DARZALEX in the United States, which was subsequently amended to include two additional MorphoSys patents. In addition, a further claim by Janssen and us that the three MorphoSys patents were unenforceable due to inequitable conduct by MorphoSys was included in the case. On January 25, 2019, the District Court ruled on summary judgment that the three MorphoSys patents were invalid for lack of enablement. MorphoSys had the opportunity to appeal the District Court’s decision. On January 31, 2019, MorphoSys dismissed its infringement claims against us and Janssen, and we and Janssen, in turn, dismissed our inequitable conduct claims against MorphoSys. As such, there will be no further proceedings in the case. Change of Control In the event of a change of control, change of control clauses are included in some of our collaboration, development and license agreements as well as in service agreements for certain employees. Collaboration, Development and License Agreements We have entered into collaboration, development and license agreements with external parties, which may be subject to renegotiation in case of a change of control event in Genmab A/S. However, any changes in the agreements are not expected to have significant influence on our financial position. Service Agreements with Executive Management and Employees The service agreements with each member of the Executive Management may be terminated by Genmab with no less than 12 months’ notice and by the member of the Executive Management with no less than six months’ notice. In the event of a change of control of Genmab, the termination notice due to the member of the Executive Management is extended to 24 months. In the event of termination by Genmab (unless for cause) or by a member of Executive Management as a result of a change of control of Genmab, Genmab is obliged to pay a member of Executive Management a compensation equal to his/her existing total salary (including benefits) for up to two years in addition to the notice period. In case of a change of control event and the termination of service agreements of the Executive Management, the total impact on our financial position is estimated to approximately DKK 106 million as of December 31, 2019 (2018: DKK 98 million). In addition, Genmab has entered into service agreements with 22 (2018: 26) current employees according to which Genmab may become obliged to compensate the employees in connection with a change of control of Genmab. If Genmab as a result of a change of control terminates the service agreement without cause, or changes the working conditions to the detriment of the employee, the employee shall be entitled to terminate the employment relationship without further cause with one month’s notice in which case Genmab shall pay the employee a compensation equal to one-half, one or two times the employee’s existing annual salary (including benefits). In case of the change of control event and the termination of all 22 service agreements the total impact on our financial |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION | |
Nature of Business and Accounting Policies | 1.1 —Nature of the Business and Accounting Policies Genmab A/S is a publicly traded, international biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer and other diseases. Founded in 1999, the company has two approved antibodies, a broad clinical and pre-clinical product pipeline and proprietary next generation antibody technologies. The financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). Except as outlined in note 1.2, the financial statements have been prepared using the same accounting policies as 2018. These consolidated financial statements were approved by our Board of Directors on March 26, 2020. Section 2—Results for the Year 2.1 Revenue 2.2 Information about Geographical Areas 2.3 Staff Costs 2.4 Corporate and Deferred Tax 2.5 Result per Share Section 3—Operating Assets and Liabilities 3.1 Intangible Assets 3.2 Property, Plant and Equipment 3.3 Leases 3.4 Other Investments 3.5 Receivables 3.6 Provisions 3.7 Other Payables Section 4—Capital Structure, Financial Risk and Related Items 4.3 Financial Assets and Liabilities 4.4 Marketable Securities 4.5 Financial Income and Expenses Section 5—Other Disclosures 5.3 Contingent Assets, Contingent Liabilities and Subsequent Events Materiality The group’s annual report is based on the concept of materiality and the group focuses on information that is considered material and relevant to the users of the consolidated financial statements. The consolidated financial statements consist of a large number of transactions. These transactions are aggregated into classes according to their nature or function and presented in classes of similar items in the consolidated financial statements as required by IFRS and Danish disclosure requirements for listed companies. If items are individually immaterial, they are aggregated with other items of similar nature in the financial statements or in the notes. The disclosure requirements are substantial in IFRS. The group provides these specific required disclosures unless the information is considered immaterial to the economic decision-making of the readers of the financial statements or not applicable. Consolidated Financial Statements The consolidated financial statements include Genmab A/S (the parent company) and subsidiaries over which the parent company has control. The parent controls a subsidiary when the parent is exposed to, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power to direct the activities of the subsidiary. A company overview is included in note 5.3. The group’s consolidated financial statements have been prepared on the basis of the financial statements of the parent company and subsidiaries—prepared under the group’s accounting policies— by combining similar accounting items on a line-by-line basis. On consolidation, intercompany income and expenses, intercompany receivables and payables, and unrealized gains and losses on transactions between the consolidated companies are eliminated. The recorded value of the equity interests in the consolidated subsidiaries is eliminated with the proportionate share of the subsidiaries’ equity. Subsidiaries are consolidated from the date when control is transferred to the group. The income statements for subsidiaries with a different functional currency than the group presentation currency are translated into the group’s presentation currency at the year’s weighted average exchange rate, and the balance sheets are translated at the exchange rate in effect at the balance sheet date. Exchange rate differences arising from the translation of foreign subsidiaries shareholders’ equity at the beginning of the year and exchange rate differences arising as a result of foreign subsidiaries’ income statements being translated at average exchange rates are recorded in translation reserves in shareholders’ equity. Functional and Presentation Currency The financial statements have been prepared in Danish Kroner (DKK), which is the functional and presentation currency of the parent company. Foreign Currency Transactions in foreign currencies are translated at the exchange rates in effect at the date of the transaction. Exchange rate gains and losses arising between the transaction date and the settlement date are recognized in the income statement as financial items. Unsettled monetary assets and liabilities in foreign currencies are translated at the exchange rates in effect at the balance sheet date. Exchange rate gains and losses arising between the transaction date and the balance sheet date are recognized in the income statement as financial items. Classification of Operating Expenses in the Income Statement Research and Development Expense Research and development expenses primarily include salaries, benefits and other employee related costs of our research and development staff, license costs, manufacturing costs, pre-clinical costs, clinical trials, contractors and outside service fees, amortization of licenses and rights, and depreciation and impairment of intangible assets and property, plant and equipment, to the extent that such costs are related to the group’s research and development activities. Please see note 3.1 for a more detailed description on the treatment of Genmab’s research and development expenses. General and Administrative Expense General and administrative expenses relate to the management and administration of the group. This includes salaries, benefits and other headcount costs related to management and support functions including human resources, information technology and the finance departments. In addition, depreciation and impairment of intangible assets and property, plant and equipment, to the extent such expenses are related to administrative functions are also included. General and administrative expenses are recognized in the income statement in the period to which they relate. Statement of Cash Flow The cash flow statement is presented using the indirect method with basis in the net result before tax. Cash flow from operating activities is stated as the net result adjusted for net financial items, non-cash operating items such as depreciation, amortization, impairment losses, share-based compensation expenses, provisions, and for changes in working capital, interest paid and received, and corporate taxes paid. Working capital mainly comprises changes in receivables, provisions paid and other payables excluding the items included in cash and cash equivalents. Changes in non-current assets and liabilities are included in working capital, if related to the main revenue-producing activities of Genmab. Cash flow from investing activities is comprised of cash flow from the purchase and sale of intangible assets and property, plant and equipment and financial assets as well as purchase and sale of marketable securities. Cash flow from financing activities is comprised of cash flow from the issuance of shares, if any, and payment of long-term loans including installments on lease liabilities. Finance lease transactions are considered non-cash transactions. Cash and cash equivalents comprise cash, bank deposits, and marketable securities with a maturity of three months or less on the date of acquisition. The cash flow statement cannot be derived solely from the financial statements. Derivative Financial Instruments and Hedging Activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Genmab designates certain derivatives as either: 1. Fair value hedge (hedges of the fair value of recognized assets or liabilities or a firm commitment); or 2. Cash flow hedge (hedges of a particular risk associated with a recognized asset or liability or a highly probable forecast transaction). At the inception of a transaction, Genmab documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. Genmab also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Movements on the hedging reserve in other comprehensive income are shown as part of the statement of shareholders’ equity. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Cash Flow Hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion and changes in time value of the derivative instrument is recognized immediately in the income statement within financial income or expenses. When forward contracts are used to hedge forecast transactions, Genmab generally designates the full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the gains or losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedge reserve within equity. Fair Value Hedge Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that is attributable to the hedged risk. Treasury Shares The total amount paid to acquire treasury shares including directly attributable costs and the proceeds from the sale of treasury shares are recognized in retained earnings. Collaboration Agreements The group has entered into various collaboration agreements, primarily in connection with the group’s research and development projects and the clinical testing of product candidates. The collaboration agreements are structured such that each party contributes its respective skills in the various phases of the development project and contain contractual terms regarding sharing of control over the relevant activities under the agreement. No joint control exists for the group’s collaborations with Janssen and Novartis as they retain final decision making authority over the relevant activities. The group’s collaboration agreements with BioNTech may become subject to joint control if product candidates under the agreements are selected for joint clinical development as this would require unanimous consent of both parties on decisions related to the relevant activities. Under these agreements, joint clinical development may be selected on a product by product basis and would result in development cost and product ownership being shared equally going forward. These agreements also include provisions which will allow the parties to opt out of joint development at key points along the development timeline. An opt out by one of the parties would result in loss of joint control by the opt out party and the other party is entitled to continue developing the product on predetermined licensing terms. During 2017 Seattle Genetics exercised its option to co-develop and co-commercialize tisotumab vedotin. All costs and profits for tisotumab vedotin will be shared on a 50:50 basis and joint control exists over the relevant activities. Accordingly, only the tisotumab vedotin collaboration with Seattle Genetics is considered a joint operation under IFRS 11, ‘‘Joint Arrangements.’’ Revenues, expenses, receivables, and payables in connection with our collaboration agreements are included in the related financial statement lines and footnotes. During December 2019, Genmab entered into a research collaboration and license agreement with CureVac AG. The strategic partnership will focus on the research and development of differentiated mRNA-based antibody products by combining CureVac’s mRNA technology and know-how with Genmab’s proprietary antibody technologies and expertise. Under the terms of the agreement Genmab will provide CureVac with a $10 million upfront payment. The companies will collaborate on research to identify an initial product candidate and CureVac will contribute a portion of the overall costs for the development of this product candidate, up to the time of an Investigational New Drug Application. Genmab would thereafter be fully responsible for the development and commercialization of the potential product, in exchange for $280 million in development, regulatory and commercial milestones and tiered royalties in the range from mid-single digits up to low-double digits to CureVac. The agreement also includes three additional options for Genmab to obtain commercial licenses to CureVac’s mRNA technology at pre-defined terms, exercisable within a five-year period. If Genmab exercises any of these options, it would fund all research and would develop and commercialize any resulting product candidates with CureVac eligible to receive between $275 million and $368 million in development, regulatory and commercial milestone payments for each product, dependent on the specific product concept. In addition, CureVac is eligible to receive tiered royalties in the range from mid-single digits up to low double digits per product. CureVac would retain an option to participate in development and/or commercialization of one of the potential additional programs under pre-defined terms and conditions. Further, Genmab made a €20 million equity investment in CureVac. Refer to note 3.4 for additional information regarding Genmab’s equity investment in CureVac. |
New Accounting Policies and Disclosures | 1.2 —New Accounting Policies and Disclosures New Accounting Policies and Disclosures Genmab has, with effect from January 1, 2019, implemented the amendments to IFRS 9, IAS 19, IAS 28, IFRIC 23 and annual improvements to IFRSs 2015‑2017. The implementation of these standards has not had a material impact on the entity in the current reporting period. Genmab has, with effect from January 1, 2019, implemented IFRS 16. The impact of the adoption of the standard is described below. Effective January 1, 2019, we adopted IFRS 16 using the modified retrospective transition method. Under this method, all leases are recognized in the balance sheet as a right-of-use (“ROU”) asset with a corresponding lease liability, except for short term assets in which the lease term is 12 months or less, or low value assets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis over the lease term. In the income statement, lease costs are replaced by depreciation of the ROU asset recognized over the lease term in operating expenses, and interest expenses related to the lease liability are classified in financial items. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Genmab determines if an arrangement is a lease at inception. Genmab leases various properties and IT equipment. Rental contracts are typically made for fixed periods. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of fixed payments, less any lease incentives. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). ROU assets are measured at cost and include 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. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less and low-value assets comprise IT equipment and small items of office furniture. On adoption of IFRS 16, the group recognized lease liabilities in relation to leases that had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 3.7%. The impact of the adoption of IFRS 16 on the financial statements as of January 1, 2019 is shown in the table and further described below: January 1, (DKK million) 2019 Operating lease commitments disclosed as at December 31, 2018 184 Discounted using the incremental borrowing rate of 3.7% (42) (Less): short-term leases recognized on a straight-line basis as expense (3) Add/(less): adjustments as a result of a different treatment of extension and termination options 66 Lease liability recognized at January 1, 2019 205 The ROU assets established at January 1, 2019 on the balance sheet was DKK 205 million. Net result decreased by DKK 4 million as a result of adopting IFRS 16 in 2019. Cash flows from operating activities increased by DKK 35 million and cash flows from financing activities decreased by DKK 31 million as a result of adopting IFRS 16 in 2019. For purposes of applying the modified retrospective approach in adoption of IFRS 16, Genmab has used the following practical expedients permitted by the standard: · applied the exemption not to recognize ROU assets and liabilities for leases with less than 12 months of lease term from January 1, 2019, and · excluded initial direct costs for the measurement of the ROU assets at the date of initial application There are no ROU assets that meet the definition of investment property. New Accounting Policies and Disclosures Effective in 2020 or Later The IASB has issued, a number of new standards and updated some existing standards, the majority of which are effective for accounting periods beginning on January 1, 2020 or later. Therefore, they are not incorporated in the consolidated financial statements. There are no standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. |
Management's Judgments and Estimates under IFRS | 1.3 —Management’s Judgments and Estimates under IFRS In preparing financial statements under IFRS, certain provisions in the standards require management’s judgments, including various accounting estimates and assumptions. These affect the application of accounting policies, as well as reported amounts within the financial statements and disclosures. Determining the carrying amount of some assets and liabilities requires judgments, estimates and assumptions concerning future events that are based on historical experience and other factors, which by their very nature are associated with uncertainty and unpredictability. Accounting estimates are based on historical experience and various other factors relative to the circumstances in which they are applied. Estimates are generally made based on information available at the time. An example would include management’s estimation of deferred income tax assets. Accounting judgments are made in the process of applying Genmab’s accounting policies. These judgements are typically made based on the guidance and information available at the time of application. Examples would include management’s judgements utilized in determining revenue recognition. These estimates and judgments may prove incomplete or incorrect, and unexpected events or circumstances may arise. The Genmab group is also subject to risks and uncertainties which may lead actual results to differ from these estimates, both positively and negatively. Specific risks for the Genmab group are discussed in the relevant section of the management’s review and in the notes to the financial statements. The areas involving a high degree of judgment and estimation that are significant to the financial statements are summarized below. Refer to the identified notes for further information on the key accounting estimates and judgements utilized in the preparation of the consolidated financial statements. · Recognition of revenue – Note 2.1 · Valuation assumptions in Black-Scholes pricing model – Note 2.3 · Estimation of current and deferred income taxes – Note 2.4 · Estimated useful life of intangible assets – Note 3.1 · Capitalization of research and development costs – Note 3.1 |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PRESENTATION | |
Schedule of impact of the adoption of IFRS 16 on the financial statements | January 1, (DKK million) 2019 Operating lease commitments disclosed as at December 31, 2018 184 Discounted using the incremental borrowing rate of 3.7% (42) (Less): short-term leases recognized on a straight-line basis as expense (3) Add/(less): adjustments as a result of a different treatment of extension and termination options 66 Lease liability recognized at January 1, 2019 205 |
RESULTS FOR THE YEAR (Tables)
RESULTS FOR THE YEAR (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RESULTS FOR THE YEAR | |
Schedule of disaggregates of revenue by type of payment and collaboration partner under agreements | (DKK million) 2019 2018 2017 Revenue: Royalties 3,155 1,741 1,061 Milestone payments 1,869 687 1,133 License fees — 348 90 Reimbursement income 342 249 81 Total 5,366 3,025 2,365 Revenue split by collaboration partner: Janssen (DARZALEX/Daratumumab & DuoBody) 4,983 2,390 2,214 Novartis (Arzerra/Ofatumumab) 23 338 48 Other collaboration partners 360 297 103 Total 5,366 3,025 2,365 |
Schedule of segment disclosures in the financial statements as the group’s business activities. | 2019 2018 2017 Non-current Non-current Non-current (DKK million) Revenue assets Revenue assets Revenue assets Denmark 5,366 387 3,025 454 2,365 105 Netherlands — 252 — 167 — 127 USA — 68 — 11 — 6 Japan — — — — — — Total 5,366 707 3,025 632 2,365 238 |
Schedule of staff cost | (DKK million) 2019 2018 2017 Wages and salaries 489 308 230 Share-based compensation 147 91 76 Defined contribution plans 39 24 19 Other social security costs 72 23 18 Government grants (96) (86) (64) Total 651 360 279 Staff costs are included in the income statement as follows: Research and development expenses 572 324 249 General and administrative expenses 175 122 94 Government grants related to research and development expenses (96) (86) (64) Total 651 360 279 Average number of FTE 471 313 235 Number of FTE at year-end 548 377 257 |
Fair value of each warrant granted | Weighted Average 2019 2018 2017 Fair value per warrant on grant date 425.80 386.61 366.78 Share price 1,483.58 1,034.66 1,123.91 Exercise price 1,483.58 1,034.66 1,123.91 Expected dividend yield 0 % 0 % 0 % Expected stock price volatility 34.2 % 41.7 % 38.5 % Risk-free interest rate (0.56) % (0.01) % (0.38) % Expected life of warrants 5 years 5 years 5 years |
Schedule of corporate and deferred Tax | (DKK million) 2019 2018 2017 Current tax on result 444 161 133 Adjustment to prior years — — (1) Adjustment to deferred tax 294 458 626 Adjustment to valuation allowance (45) (479) (798) Total tax for the period in the income statement 693 140 (40) |
Schedule of reconciliation of effective tax rate | (DKK million) 2019 2018 2017 Net result before tax 2,859 1,612 1,064 Computed 22% (2018 & 2017: 22%) 629 355 234 Tax effect of: Recognition of previously unrecognized tax losses and deductible temporary differences (19) (267) (286) Non-deductible expenses/non-taxable income and other permanent differences, net 75 53 14 All other 8 (1) (2) Total tax effect 64 (215) (274) Total tax for the period in the income statement 693 140 (40) Total tax for the period in shareholders' equity (24) (89) (72) |
Schedule of components of the deferred tax asset | (DKK million) 2019 2018 Tax deductible losses 359 653 Share-Based Instruments 130 119 Capitalized R&D Costs — 4 Other temporary differences 1 8 490 784 Valuation allowance (351) (398) Total deferred tax assets 139 386 |
Schedule of net result | (DKK million) 2019 2018 2017 Net result 2,166 1,472 1,104 |
Schedule of Result Per Share | (Shares) 2019 2018 2017 Average number of shares outstanding 63,126,771 61,383,972 60,934,308 Average number of treasury shares (163,958) (116,466) (100,000) Average number of shares excl. treasury shares 62,962,813 61,267,506 60,834,308 Average number of share-based instruments, dilution 674,030 777,491 1,259,874 Average number of shares, diluted 63,636,843 62,044,997 62,094,182 Basic net result per share 34.40 24.03 18.14 Diluted net result per share 34.03 23.73 17.77 |
OPERATING ASSETS AND LIABILIT_2
OPERATING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of property, plant and equipment | Total Equipment, property, 2019 Leasehold furniture and Assets under plant and (DKK million) improvements fixtures construction equipment Cost per January 1 95 217 1 313 Additions for the year 3 64 48 115 Transfers between the classes — — — — Disposals for the year — (2) — (2) Exchange rate adjustment — — — — Cost at December 31 98 279 49 426 Accumulated depreciation and impairment at January 1 (8) (143) — (151) Depreciation for the year (6) (34) — (40) Disposals for the year — — — — Exchange rate adjustment — — — — Accumulated depreciation on disposals — 2 — 2 Accumulated depreciation and impairment at December 31 (14) (175) — (189) Carrying amount at December 31 84 104 49 237 Total Equipment, property, 2018 Leasehold furniture and Assets under plant and (DKK million) improvements fixtures construction equipment Cost per January 1 11 170 68 249 Additions for the year 7 41 28 76 Transfers between the classes 83 12 (95) — Disposals for the year (6) (7) — (13) Exchange rate adjustment — 1 — 1 Cost at December 31 95 217 1 313 Accumulated depreciation and impairment at January 1 (6) (129) — (135) Depreciation for the year (8) (20) — (28) Disposals for the year 6 6 — 12 Exchange rate adjustment — — — — Accumulated depreciation and impairment at December 31 (8) (143) — (151) Carrying amount at December 31 87 74 1 162 |
Schedule of Depreciation, amortization, and impairments are included in the income statement | (DKK million) 2019 2018 2017 Depreciation, amortization, and impairments are included in the income statement as follows: Research and development expenses 37 26 12 General and administrative expenses 3 2 — Total 40 28 12 |
Summary of balance sheet amounts relating to leases | December 31, December 31, (DKK million) 2019 2018 Right-of-use assets Properties 173 — Equipment 4 — Total right-of-use assets 177 — Lease liabilities Current 26 — Non-current 155 — Total lease liabilities 181 — |
Summary of statement of comprehensive income amounts relating to leases | December 31, December 31, December 31, (DKK million) 2019 2018 2017 Depreciation charge of right-of-use assets Properties 27 — — Equipment 1 — — Total depreciation charge of right-of-use assets 28 — — Interest expense 7 — — Expense relating to short-term leases 6 — — |
Schedule of cash outflow for leases | December 31, Cash flows, Other December 31, (DKK million) 2018 net changes* 2019 Lease liabilities, due after 1 year 181 (38) 12 155 Lease liabilities, due within 1 year 24 — 2 26 Total lease liabilities 205 (38) 14 181 |
Schedule of future minimum payments under our leases | (DKK million) 2019 2018 Payment due Less than 1 year 32 31 1 to 3 years 64 65 More than 3 years but less than 5 years 27 45 More than 5 years 93 106 Total 216 247 |
Schedules of Receivables | (DKK million) 2019 2018 Receivables related to collaboration agreements 2,849 1,266 Interest receivables 34 18 Other receivables 56 34 Prepayments 62 19 Total 3,001 1,337 Non-current receivables 11 10 Current receivables 2,990 1,327 Total 3,001 1,337 |
Schedule of straight-line basis o useful lives | Equipment, furniture and fixtures 3 - 5 years Computer equipment 3 years Leasehold improvements 5 years or the lease term, if shorter |
Schedule of provisions | (DKK million) 2019 2018 Provisions per January 1 1 1 Additions during the year 1 — Used during the year — — Released during the year — — Total at December 31 2 1 Non-current provisions 2 1 Current provisions — — Total at December 31 2 1 |
Schedule of other payables | (DKK million) 2019 2018 Liabilities related to collaboration agreements 8 6 Staff cost liabilities 48 30 Other liabilities 715 213 Accounts payable 69 69 Total at December 31 840 318 Non-current other payables 1 2 Current other payables 839 316 Total at December 31 840 318 |
Intangible assets other than goodwill [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of Intangible Assets | Licenses, Total 2019 Rights, and Intangible (DKK million) Patents Assets Cost per January 1 798 798 Additions for the year 99 99 Disposals for the year — — Exchange rate adjustment — — Cost at December 31 897 897 Accumulated amortization and impairment per January 1 (328) (328) Amortization for the year (99) (99) Disposals for the year — — Exchange rate adjustment — — Accumulated amortization and impairment per December 31 (427) (427) Carrying amount at December 31 470 470 Licenses, Total 2018 Rights, and Intangible (DKK million) Patents Assets Cost per January 1 392 392 Additions for the year 406 406 Disposals for the year — — Exchange rate adjustment — — Cost at December 31 798 798 Accumulated amortization and impairment per January 1 (268) (268) Amortization for the year (60) (60) Disposals for the year — — Exchange rate adjustment — — Accumulated amortization and impairment per December 31 (328) (328) Carrying amount at December 31 470 470 |
Schedule of Depreciation, amortization, and impairments are included in the income statement | (DKK million) 2019 2018 2017 Depreciation, amortization, and impairments are included in the income statement as follows: Research and development expenses 99 60 58 General and administrative expenses — — — Total 99 60 58 |
CAPITAL STRUCTURE, FINANCIAL _2
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS | |
Schedule of impact of exchange rate on our net result before tax | Percentage Impact of change change in in exchange (DKK million) exchange rate* rate** 2019 EUR 1 % 10 USD 10 % 1,053 GBP 10 % — 2018 EUR 1 % 9 USD 10 % 362 GBP 10 % 5 |
Schedule of maturity profile of our marketable securities | (DKK million) Year of Maturity 2019 2018 2019 — 2,880 2020 3,891 1,574 2021 2,190 505 2022 493 138 2023 102 75 2024+ 743 401 Total 7,419 5,573 |
Schedule of Financial Assets and Liabilities | Categories of Financial Assets and Liabilities Note 2019 2018 Financial assets measured at fair value through profit or loss Marketable securities 4.4 7,419 5,573 Other Investments 3.4 149 — Financial assets measured at amortized cost Receivables ex. prepayments 3.5 2,939 1,318 Cash and cash equivalents 3,552 533 Financial liabilities measured at amortized cost: Other payables 3.7 (840) (318) Lease Liabilities 3.3 (181) — |
Schedule of marketable securities | (DKK million) 2019 2018 Cost at January 1 5,494 4,195 Additions for the year 5,812 3,521 Disposals for the year (3,926) (2,222) Cost at December 31 7,380 5,494 Fair value adjustment at January 1 79 (120) Fair value adjustment for the year (40) 199 Fair value adjustment at December 31 39 79 Net book value at December 31 7,419 5,573 Net book value in percentage of cost 101 % 101 % |
Schedule of portfolio of marketable securities | Market Average Market Average value effective Share value effective Share (DKK million) 2019 duration % 2018 duration % Kingdom of Denmark bonds and treasury bills 462 1.84 6 % 508 1.94 9 % Danish mortgage-backed securities 1,227 2.33 17 % 1,177 2.58 21 % DKK portfolio 1,689 2.20 23 % 1,685 2.39 30 % EUR portfolio European government bonds and treasury bills 873 1.33 12 % 875 1.38 16 % USD portfolio US government bonds and treasury bills 4,778 0.63 64 % 2,938 0.84 53 % GBP portfolio UK government bonds and treasury bills 79 0.55 1 % 75 0.55 1 % Total portfolio 7,419 1.07 100 % 5,573 1.39 100 % Marketable securities 7,419 5,573 |
Schedule of finance income and expenses | (DKK million) 2019 2018 2017 Financial income: Interest and other financial income 120 63 41 Realized and unrealized gains on marketable securities (fair value through the income statement), net 9 — — Realized and unrealized gains on fair value hedges, net — 2 30 Realized and unrealized exchange rate gains, net 99 178 — Total financial income 228 243 72 Financial expenses: Interest and other financial expenses 7 — 2 Realized and unrealized losses on marketable securities (fair value through the income statement), net — 11 20 Realized and unrealized exchange rate losses, net — — 330 Total financial expenses 7 11 352 Net financial items 221 232 280 Interest and other financial income on financial assets measured at amortized cost 22 8 2 Interest and other financial expenses on financial liabilities measured at amortized cost — — 3 |
Summary of RSUs activity | Number of RSUs held by former Number of Number of members of RSUs held by RSUs held by Number of the Board of the Board of the Executive RSUs held by Directors and Directors Management employees employees Total RSUs Outstanding at January 1, 2017 18,688 64,258 18,291 1,150 102,387 Granted* 7,661 19,599 38,691 – 65,951 Settled – – – – – Transferred (2,021) – (1,484) 3,505 – Cancelled – – (23) (271) (294) Outstanding at December 31, 2017 24,328 83,857 55,475 4,384 168,044 Outstanding at January 1, 2018 24,328 83,857 55,475 4,384 168,044 Granted* 5,224 18,020 79,395 – 102,639 Settled (9,425) (35,725) – (2,300) (47,450) Transferred – – (3,358) 3,358 – Cancelled – – (1,466) (2,865) (4,331) Outstanding at December 31, 2018 20,127 66,152 130,046 2,577 218,902 Outstanding at January 1, 2019 20,127 66,152 130,046 2,577 218,902 Granted* 3,708 25,793 87,168 73 116,742 Settled (2,631) (19,080) – (478) (22,189) Transferred (1,251) – (8,355) 9,606 – Cancelled – – – (5,548) (5,548) Outstanding at December 31, 2019 19,953 72,865 208,859 6,230 307,907 *RSUs held by the Board of Directors includes RSUs granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries. |
Summary of warrants activity | Number of warrants held by Number of former members Number of warrants held of the Executive warrants held by the Number of Management, Weighted by the Board Executive warrants held Board of Directors Total average of Directors Management by employees and employees warrants exercise price Outstanding at January 1, 2017 129,742 877,418 644,097 539,054 2,190,311 311.52 Granted* 4,125 59,819 118,745 — 182,689 1,123.91 Exercised (31,625) (377,500) (131,709) (294,784) (835,618) 257.19 Expired — — — (8,200) (8,200) 348.20 Cancelled — — (73) (10,923) (10,996) 722.48 Transfers (10,000) — (56,765) 66,765 — — Outstanding at December 31, 2017 92,242 559,737 574,295 291,912 1,518,186 436.01 Exercisable at year end 79,380 472,119 262,414 270,458 1,084,371 233.81 Exercisable warrants in the money at year end 78,400 464,832 241,241 269,313 1,053,786 201.27 Outstanding at January 1, 2018 92,242 559,737 574,295 291,912 1,518,186 436.01 Granted* 3,161 50,464 222,882 — 276,507 1,034.66 Exercised (20,925) (130,000) (46,883) (114,089) (311,897) 241.34 Expired — — — (37,875) (37,875) 253.76 Cancelled — — (4,582) (17,129) (21,711) 940.01 Transfers — — (39,624) 39,624 — — Outstanding at December 31, 2018 74,478 480,201 706,088 162,443 1,423,210 592.14 Exercisable at year end 62,647 355,347 297,128 152,743 867,865 295.02 Exercisable warrants in the money at year end 60,688 340,775 257,115 148,701 807,279 230.43 Outstanding at January 1, 2019 74,478 480,201 706,088 162,443 1,423,210 592.14 Granted* 3,925 — 303,066 228 307,219 1,483.58 Exercised (15,750) (132,400) (56,237) (95,044) (299,431) 212.23 Expired — — — (2,000) (2,000) 129.75 Cancelled — — — (15,374) (15,374) 1,049.34 Transfers (319) — (93,944) 94,263 — — Outstanding at December 31, 2019 62,334 347,801 858,973 144,516 1,413,624 862.03 Exercisable at year end 50,227 230,233 225,855 131,933 638,248 407.89 Exercisable warrants in the money at year end 50,227 227,733 219,403 129,698 627,061 385.84 *Warrants held by the Board of Directors includes warrants granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries. |
Schedule of Weighted Average Exercise Prices Of Warrants | Number of Weighted average Number of warrants remaining contractual warrants Exercise price Grant Date outstanding life (in years) exercisable DKK 31.75 October 14, 2011 5,950 1.79 5,950 40.41 June 22, 2011 80,205 1.48 80,205 46.74 June 2, 2010 85,000 0.42 85,000 55.85 April 6, 2011 5,500 1.27 5,500 66.60 December 9, 2010 35,500 0.94 35,500 67.50 October 14, 2010 3,250 0.79 3,250 68.65 April 21, 2010 3,325 0.31 3,325 147.50 April 17, 2013 1,500 0.30 1,500 199.00 June 12, 2013 1,000 0.45 1,000 210.00 February 10, 2014 2,750 1.11 2,750 220.40 October 15, 2014 17,750 1.79 17,750 225.30 June 12, 2014 4,625 1.45 4,625 225.90 December 6, 2013 137,059 0.93 137,059 231.50 October 10, 2013 3,665 0.78 3,665 337.40 December 15, 2014 50,986 1.96 50,986 466.20 March 26, 2015 8,100 2.24 8,100 623.50 June 11, 2015 2,575 2.45 2,575 636.50 October 7, 2015 21,000 2.77 21,000 815.50 March 17, 2016 12,449 3.21 8,390 939.50 December 10, 2015 73,162 2.94 73,162 962.00 June 7, 2018 14,564 5.44 — 1,025.00 December 10, 2018 206,097 5.94 — 1,032.00 December 15, 2017 131,444 4.96 — 1,050.00 September 21, 2018 27,082 5.73 — 1,136.00 October 6, 2016 18,450 3.77 14,089 1,145.00 December 15, 2016 83,287 3.96 62,190 1,147.50 June 6, 2019 21,343 6.43 — 1,155.00 March 29, 2019 7,959 6.25 — 1,161.00 March 1, 2019 19,830 6.17 — 1,210.00 April 10, 2018 14,881 5.28 — 1,233.00 June 9, 2016 13,763 3.44 9,903 1,334.50 October 11, 2019 62,848 6.78 — 1,402.00 March 28, 2017 8,736 4.24 — 1,408.00 June 8, 2017 5,151 4.44 — 1,424.00 February 10, 2017 1,526 4.11 774 1,427.00 March 29, 2017 8,400 4.25 — 1,432.00 October 5, 2017 17,901 4.76 — 1,615.00 December 5, 2019 195,011 6.93 — 862.03 1,413,624 4.05 638,248 Number of Weighted average Number of warrants remaining contractual warrants Exercise price Grant Date outstanding life (in years) exercisable DKK 31.75 October 14, 2011 7,525 2.79 7,525 40.41 June 22, 2011 85,975 2.48 85,975 45.24 April 25, 2012 1,000 0.32 1,000 46.74 June 2, 2010 85,000 1.42 85,000 55.85 April 6, 2011 8,500 2.27 8,500 66.60 December 9, 2010 37,750 1.94 37,750 67.50 October 14, 2010 3,250 1.79 3,250 68.65 April 21, 2010 5,450 1.31 5,450 79.25 October 9, 2012 5,000 0.78 5,000 80.55 December 5, 2012 111,750 0.93 111,750 98.00 January 31, 2013 1,375 1.08 1,375 129.75 October 8, 2009 5,075 0.77 5,075 147.50 April 17, 2013 7,750 1.30 7,750 174.00 June 17, 2009 25,000 0.46 25,000 199.00 June 12, 2013 1,000 1.45 1,000 210.00 February 10, 2014 3,088 2.11 3,088 220.40 October 15, 2014 33,800 2.79 33,800 225.30 June 12, 2014 7,975 2.45 7,975 225.90 December 6, 2013 175,047 1.93 175,047 231.50 October 10, 2013 7,850 1.78 7,850 234.00 April 15, 2009 6,100 0.29 6,100 337.40 December 15, 2014 90,945 2.96 90,945 466.20 March 26, 2015 11,061 3.24 6,664 623.50 June 11, 2015 6,350 3.45 3,913 636.50 October 7, 2015 24,500 3.77 16,250 815.50 March 17, 2016 14,837 4.21 6,362 939.50 December 10, 2015 80,874 3.94 57,880 962.00 June 7, 2018 14,714 6.44 — 1,025.00 December 10, 2018 210,437 6.94 — 1,032.00 December 15, 2017 133,637 5.96 — 1,050.00 September 21, 2018 33,226 6.73 — 1,136.00 October 6, 2016 19,450 4.77 9,725 1,145.00 December 15, 2016 86,660 4.96 43,675 1,210.00 April 10, 2018 14,954 6.28 — 1,233.00 June 9, 2016 14,438 4.44 6,713 1,402.00 March 28, 2017 8,736 5.24 — 1,408.00 June 8, 2017 5,224 5.44 — 1,424.00 February 10, 2017 1,606 5.11 478 1,427.00 March 29, 2017 8,400 5.25 — 1,432.00 October 5, 2017 17,901 5.76 — 592.14 1,423,210 3.76 867,865 |
Schedule of changes in share capital | Number of shares Share capital (DKK million) December 31, 2013 51,755,722 51.8 Shares issued for cash 4,600,000 4.6 Exercise of warrants 611,697 0.6 December 31, 2014 56,967,419 57.0 Exercise of warrants 2,563,844 2.6 December 31, 2015 59,531,263 59.6 Exercise of warrants 818,793 0.8 December 31, 2016 60,350,056 60.4 Exercise of warrants 835,618 0.8 December 31, 2017 61,185,674 61.2 Exercise of warrants 311,897 0.3 December 31, 2018 61,497,571 61.5 Shares issued for cash 3,277,500 3.3 Exercise of warrants 299,431 0.3 December 31, 2019 65,074,502 65.1 |
Schedule Of Treasury Shares | Number of Proportion of shares Share capital share capital Cost (DKK million) % (DKK million) Shareholding at December 31, 2016 100,000 0.10 0.2 118 Purchase of treasury shares — — — — Shareholding at December 31, 2017 100,000 0.1 0.2 118 Purchase of treasury shares 125,000 0.1 0.2 146 Shares used for funding RSU program (47,450) — (0.1) (56) Shareholding at December 31, 2018 177,550 0.2 0.3 208 Shares used for funding RSU program (13,629) — — (16) Shareholding at December 31, 2019 163,921 0.2 0.3 192 |
OTHER DISCLOSURES (Tables)
OTHER DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER DISCLOSURES | |
Summary of remuneration of the Board of Directors and Executive Management | (DKK million) 2019 2018 2017 Wages and salaries 42 34 39 Share-based compensation expenses 38 32 28 Defined contribution plans 1 1 1 Total 81 67 68 |
Schduel of Remuneration to the Board of Directors | Shared-based Shared-based Shared-based Base board Committee compensation Base Committee compensation Base Committee compensation (DKK million) fee fees expenses 2019 board fee fees expenses 2018 board fee fees expenses 2017 Mats Pettersson 1.2 0.2 0.8 2.2 1.2 0.3 0.9 2.4 1.2 0.3 1.0 2.5 Anders Gersel Pedersen 0.4 0.4 0.6 1.4 0.5 0.3 0.6 1.4 0.8 0.3 0.7 1.8 Pernille Erenbjerg 0.4 0.3 0.4 1.1 0.4 0.3 0.5 1.2 0.4 0.3 0.7 1.4 Paolo Paoletti 0.4 0.3 0.4 1.1 0.4 0.2 0.5 1.1 0.4 0.1 0.7 1.2 Rolf Hoffmann 0.4 0.3 0.8 1.5 0.4 0.3 0.7 1.4 0.3 0.2 0.4 0.9 Deirdre P. Connelly 0.8 0.5 0.9 2.2 0.7 0.3 0.7 1.7 0.3 0.2 0.4 0.9 Peter Storm Kristensen* 0.4 — 0.4 0.8 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Rick Hibbert** 0.1 — 0.4 0.5 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Daniel J. Bruno* 0.4 — 0.4 0.8 0.4 — 0.3 0.7 0.4 — 0.2 0.6 Mijke Zachariasse* 0.3 — — 0.3 — — — — — — — — Burton G. Malkiel*** — — — — — — — — 0.1 — 0.9 1.0 Total 4.8 2.0 5.1 11.9 4.8 1.7 4.8 11.3 4.7 1.4 5.4 11.5 *Employee elected board member ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019 *** Stepped down from the Board of Directors at the Annual General Meeting in March 2017 |
Schedule of executive compensation | 2019 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 7.3 1.0 3.6 8.4 14.9 35.2 David A. Eatwell 4.3 0.1 0.9 3.2 8.0 16.5 Judith Klimovsky 4.1 0.1 — 3.1 9.7 17.0 Total 15.7 1.2 4.5 14.7 32.6 68.7 2018 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 7.1 1.2 0.2 6.4 13.4 28.3 David A. Eatwell 3.9 0.2 1.4 2.1 8.1 15.7 Judith Klimovsky 3.6 0.1 0.2 2.1 5.9 11.9 Total 14.6 1.5 1.8 10.6 27.4 55.9 2017 Defined Share-Based Contribution Other Annual Cash compensation (DKK million) Base Salary Plans Benefits Bonus expenses Total Jan van de Winkel 6.9 1.1 0.2 6.2 12.6 27.0 David A. Eatwell 4.0 0.2 1.0 2.1 7.9 15.2 Judith Klimovsky 3.1 0.1 6.6 1.9 2.2 13.9 Total 14.0 1.4 7.8 10.2 22.7 56.1 |
Shareholdings by the Board of Directors and Executive Management | December 31, December 31, Market value Number of ordinary shares owned 2018 Acquired Sold Transfers 2019 (DKK million)* Board of Directors Mats Pettersson 24,800 7,207 — — 32,007 47.4 Anders Gersel Pedersen 8,000 718 — — 8,718 12.9 Pernille Erenbjerg 2,700 478 — — 3,178 4.7 Paolo Paoletti 3,337 478 (478) — 3,337 4.9 Rolf Hoffmann 1,050 — — — 1,050 1.6 Deirdre P. Connelly 2,200 — — — 2,200 3.3 Peter Storm Kristensen — 500 (300) — 200 0.3 Rick Hibbert** — — — — — — Mijke Zachariasse — — — — — — Daniel J. Bruno — — — — — — 42,087 9,381 (778) — 50,690 75.1 Executive Management Jan van de Winkel 662,400 6,084 — — 668,484 990.4 David A. Eatwell 30,825 49,436 — — 80,261 118.9 Judith Klimovsky — — — — — — 693,225 55,520 — — 748,745 1,109.3 Total 735,312 64,901 (778) — 799,435 1,184.4 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. December 31, December 31, Market value Number of ordinary shares owned 2017 Acquired Sold Transfers 2018 (DKK million)* Board of Directors Mats Pettersson 10,000 14,800 — — 24,800 26.5 Anders Gersel Pedersen 7,000 5,475 (4,475) — 8,000 8.5 Pernille Erenbjerg — 2,700 — — 2,700 2.9 Paolo Paoletti 637 2,700 — — 3,337 3.6 Rolf Hoffmann 1,050 — — — 1,050 1.1 Deirdre P. Connelly — 2,200 — — 2,200 2.3 Peter Storm Kristensen — — — — — — Rick Hibbert — — — — — — Daniel J. Bruno — — — — — — 18,687 27,875 (4,475) — 42,087 44.9 Executive Management Jan van de Winkel 640,000 22,400 — — 662,400 707.1 David A. Eatwell 17,500 13,325 — — 30,825 32.9 Judith Klimovsky — — — — — — 657,500 35,725 — — 693,225 740.0 Total 676,187 63,600 (4,475) — 735,312 784.9 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. December 31, December 31, Market value Number of ordinary shares owned 2016 Acquired Sold Transfers 2017 (DKK million)* Board of Directors Mats Pettersson 10,000 — — — 10,000 10.3 Anders Gersel Pedersen 7,000 — — — 7,000 7.2 Burton G. Malkiel 19,375 2,000 — (21,375) — — Pernille Erenbjerg — — — — — — Paolo Paoletti 637 — — — 637 0.6 Rolf Hoffmann — 1,050 — — 1,050 1.1 Deirdre P. Connelly — — — — — — Peter Storm Kristensen — — — — — — Rick Hibbert — — — — — — Daniel J. Bruno — — — — — — 37,012 3,050 — (21,375) 18,687 19.2 Executive Management Jan van de Winkel 602,500 37,500 — — 640,000 658.6 David A. Eatwell 2,500 15,000 — — 17,500 18.0 Judith Klimovsky — — — — — — 605,000 52,500 — — 657,500 676.6 Total 642,012 55,550 — (21,375) 676,187 695.8 *Market value is based on the closing price of the parent company's shares on the NASDAQ Copenhagen A/S at the balance sheet date or the last trading day prior to the balance sheet date. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2018 Granted Exercised Expired Transfers 2019 granted in 2019 warrants (DKK million) Board of Directors Mats Pettersson 26,250 — (6,250) — — 20,000 — 225.90 Anders Gersel Pedersen 29,000 — (9,000) — — 20,000 — 133.16 Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen* 2,515 368 (500) — — 2,383 0.2 928.96 Rick Hibbert** 876 — — (876) — — — Mijke Zachariasse* — 351 — — 557 908 0.2 1,352.72 Daniel J. Bruno* 15,837 3,206 — — — 19,043 1.4 1,038.68 74,478 3,925 (15,750) — (319) 62,334 1.8 487.74 Executive Management Jan van de Winkel 108,068 — (42,400) — — 65,668 — 1,060.39 David A. Eatwell 335,201 — (90,000) — — 245,201 — 264.91 Judith Klimovsky 36,932 — — — — 36,932 — 1,118.99 480,201 — (132,400) — — 347,801 — 505.80 Total 554,679 3,925 (148,150) — (319) 410,135 1.8 503.05 * Each employee-elected Board Member was granted warrants as an employee of Genmab A/S or its subsidiaries. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2017 Granted Exercised Expired Transfers 2018 granted in 2018 warrants (DKK million) Board of Directors Mats Pettersson 38,750 — (12,500) — — 26,250 — 207.23 Anders Gersel Pedersen 32,750 — (3,750) — — 29,000 — 116.83 Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen 2,515 — — — — 2,515 — 663.38 Rick Hibbert* 1,451 350 (925) — — 876 0.1 998.81 Daniel J. Bruno* 16,776 2,811 (3,750) — — 15,837 1.0 922.01 92,242 3,161 (20,925) — — 74,478 1.1 348.74 Executive Management Jan van de Winkel 164,802 23,266 (80,000) — — 108,068 8.5 748.36 David A. Eatwell 373,056 12,145 (50,000) — — 335,201 4.4 215.41 Judith Klimovsky 21,879 15,053 — — — 36,932 5.5 1,118.99 559,737 50,464 (130,000) — — 480,201 18.5 404.84 Total 651,979 53,625 (150,925) — — 554,679 19.6 397.31 * Each employee-elected Board Member was granted warrants as an employee of Genmab A/S or its subsidiaries. Weighted Black – Scholes exercise price December 31, December 31, value warrants outstanding Number of warrants held 2016 Granted Exercised Expired Transfers 2017 granted in 2017 warrants (DKK million) Board of Directors Mats Pettersson 38,750 — — — — 38,750 — 187.96 Anders Gersel Pedersen 54,000 — (21,250) — — 32,750 — 108.80 Burton G. Malkiel 14,500 — (4,500) — (10,000) — — — Pernille Erenbjerg — — — — — — — — Paolo Paoletti — — — — — — — — Rolf Hoffmann — — — — — — — — Deirdre P. Connelly — — — — — — — — Peter Storm Kristensen* 1,917 598 — — — 2,515 0.2 663.38 Rick Hibbert* 1,962 239 (750) — — 1,451 0.1 531.65 Daniel J. Bruno* 18,613 3,288 (5,125) — — 16,776 1.1 799.19 129,742 4,125 (31,625) — (10,000) 92,242 1.4 289.39 Executive Management Jan van de Winkel 392,841 24,461 (252,500) — — 164,802 8.2 455.68 David A. Eatwell 484,577 13,479 (125,000) — — 373,056 4.6 183.50 Judith Klimovsky — 21,879 — — — 21,879 8.5 1,183.65 877,418 59,819 (377,500) — - 559,737 21.3 302.73 Total 1,007,160 63,944 (409,125) — (10,000) 651,979 22.7 300.84 Fair value RSUs December 31, December 31, granted in Number of RSUs held 2018 Granted Settled Transfers 2019 2019 (DKK million) Board of Directors Mats Pettersson 3,298 495 (957) — 2,836 0.8 Anders Gersel Pedersen 2,278 247 (718) — 1,807 0.4 Pernille Erenbjerg 1,649 247 (478) — 1,418 0.4 Paolo Paoletti 1,649 247 (478) — 1,418 0.4 Rolf Hoffmann 1,899 247 — — 2,146 0.4 Deirdre P. Connelly 2,094 371 — — 2,465 0.6 Peter Storm Kristensen* 1,481 351 — — 1,832 0.6 Rick Hibbert** 1,439 — — (1,439) — — Mijke Zachariasse* — 346 — 188 534 0.6 Daniel J. Bruno* 4,340 1,157 — — 5,497 1.8 20,127 3,708 (2,631) (1,251) 19,953 6.0 Executive Management Jan van de Winkel 33,505 15,479 (11,387) — 37,597 24.9 David A. Eatwell 20,068 — (7,693) — 12,375 — Judith Klimovsky 12,579 10,314 — — 22,893 16.7 66,152 25,793 (19,080) — 72,865 41.6 Total 86,279 29,501 (21,711) (1,251) 92,818 47.6 * Each employee-elected Board Member was granted 247 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. ** Stepped down from the Board of Directors at the Annual General Meeting in March 2019. Fair value RSUs December 31, December 31, granted in Number of RSUs held 2017 Granted Settled Transfers 2018 2018 (DKK million) Board of Directors Mats Pettersson 4,818 780 (2,300) — 3,298 0.8 Anders Gersel Pedersen 3,613 390 (1,725) — 2,278 0.4 Pernille Erenbjerg 3,959 390 (2,700) — 1,649 0.4 Paolo Paoletti 3,959 390 (2,700) — 1,649 0.4 Rolf Hoffmann 1,509 390 — — 1,899 0.4 Deirdre P. Connelly 1,509 585 — — 2,094 0.6 Peter Storm Kristensen* 1,091 390 — — 1,481 0.4 Rick Hibbert* 924 515 — — 1,439 0.5 Daniel J. Bruno* 2,946 1,394 — — 4,340 1.4 24,328 5,224 (9,425) — 20,127 5.4 Executive Management Jan van de Winkel 47,597 8,308 (22,400) — 33,505 8.5 David A. Eatwell 29,056 4,337 (13,325) — 20,068 4.4 Judith Klimovsky 7,204 5,375 — — 12,579 5.5 83,857 18,020 (35,725) — 66,152 18.5 Total 108,185 23,244 (45,150) — 86,279 23.8 * Each employee-elected Board Member was granted 390 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. Fair value RSUs December 31, December 31, granted in Number of RSUs held 2016 Granted Settled Transfers 2017 2017 (DKK million) Board of Directors Mats Pettersson 4,043 775 — — 4,818 0.8 Anders Gersel Pedersen 3,032 581 — — 3,613 0.6 Burton G. Malkiel 2,021 — — (2,021) — — Pernille Erenbjerg 3,571 388 — — 3,959 0.4 Paolo Paoletti 3,571 388 — — 3,959 0.4 Rolf Hoffmann — 1,509 — — 1,509 2.0 Deirdre P. Connelly — 1,509 — — 1,509 2.0 Peter Storm Kristensen* 508 583 — — 1,091 0.6 Rick Hibbert* 458 466 — — 924 0.5 Daniel J. Bruno* 1,484 1,462 — — 2,946 1.5 18,688 7,661 — (2,021) 24,328 8.8 Executive Management Jan van de Winkel 39,606 7,991 — — 47,597 8.2 David A. Eatwell 24,652 4,404 — — 29,056 4.5 Judith Klimovsky — 7,204 — — 7,204 8.5 64,258 19,599 — — 83,857 21.3 Total 82,946 27,260 — (2,021) 108,185 30.1 * Each employee-elected Board Member was granted 388 RSUs as a member of the Board of Directors. The remaining RSUs were granted as an employee of Genmab A/S or its subsidiaries. |
Schedule of company overview | Ownership and Ownership and votes votes Name Domicile 2019 2018 Genmab B.V. Utrecht, the Netherlands 100 % 100 % Genmab Holding B.V. Utrecht, the Netherlands 100 % 100 % Genmab US, Inc. New Jersey, USA 100 % 100 % Genmab K.K. Tokyo, Japan 100 % — |
Summary of fees to auditors | (DKK million) 2019 2018 2017 PricewaterhouseCoopers Audit services 1.9 1.1 1.1 Audit-related services 2.3 0.1 0.4 Tax and VAT services 0.5 0.4 0.7 Other services 2.4 0.1 — Total 7.1 1.7 2.2 |
Summary of adjustments to cash flow statement | (DKK million) Note 2019 2018 2017 Adjustments for non-cash transactions: Depreciation, amortization and impairment 3.1, 3.2 139 88 70 Share-based compensation expenses 2.3, 4.6 147 91 76 Other 5 — — Total adjustments for non-cash transactions 291 179 146 Changes in working capital: Receivables (1,658) (768) 270 Deferred income — — (77) Other payables 440 134 47 Total changes in working capital (1,218) (634) 240 |
BASIS OF PRESENTATION - Collabo
BASIS OF PRESENTATION - Collaboration Agreements (Details) € in Millions, kr in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2017 | Dec. 31, 2019Option | Dec. 31, 2019USD ($) | Dec. 31, 2019item | Dec. 31, 2019DKK (kr) | Dec. 19, 2019DKK (kr) | |
Collaboration Agreements | |||||||
Ownership interest in joint venture | 50.00% | ||||||
Other investments | kr | kr 149 | ||||||
Minimum | |||||||
Collaboration Agreements | |||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ 275 | ||||||
Maximum | |||||||
Collaboration Agreements | |||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 368 | ||||||
CureVac | |||||||
Collaboration Agreements | |||||||
Upfront Payment | 10 | ||||||
Number of options | 3 | 3 | |||||
License exercisable term | 5 years | ||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 280 | ||||||
Other investments | € 20 | kr 149 | kr 149 | ||||
CureVac | Minimum | |||||||
Collaboration Agreements | |||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 275 | ||||||
CureVac | Maximum | |||||||
Collaboration Agreements | |||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ 368 |
BASIS OF PRESENTATION - IFRS 16
BASIS OF PRESENTATION - IFRS 16 Leasing (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Disclosure of initial application of standards or interpretations [line items] | ||||
Weighted average lessee’s incremental borrowing rate applied to the lease liabilities | 3.70% | |||
Operating lease commitments disclosed as at December 31, 2018 | kr 184 | |||
Discounted using the group’s incremental borrowing rate of 3.7% | (42) | |||
(Less): short-term leases recognized on a straight- line basis as expense | (3) | |||
Add/(less): adjustments as a result of a different treatment of extension and termination options | 66 | |||
Total lease liabilities | kr 181 | kr 205 | 205 | |
ROU assets | 177 | kr 205 | ||
Net result | 2,166 | 1,472 | kr 1,104 | |
Cash flows from operating activities | 1,326 | 1,015 | 1,589 | |
Cash flows from financing activities | kr 3,660 | kr (71) | kr 215 | |
Practical Expedient , Statement that lessee accounts for short-term leases using recognition exemption | applied the exemption not to recognize ROU assets and liabilities for leases with less than 12 months of lease term from | |||
ROU assets that meet the definition of investment property | kr 0 | |||
Increase (decrease) due to application of IFRS 16 | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Net result | 4 | |||
Cash flows from operating activities | 35 | |||
Cash flows from financing activities | kr 31 |
RESULTS FOR THE YEAR (Details)
RESULTS FOR THE YEAR (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | |||
Revenue | kr 5,366 | kr 3,025 | kr 2,365 |
Janssen (Darzalex/Daratumumab & DuoBody) | |||
Revenue | |||
Revenue | 4,983 | 2,390 | 2,214 |
Novartis (Arzaerra/Ofatumumab) | |||
Revenue | |||
Revenue | 23 | 338 | 48 |
Other collaboration partners | |||
Revenue | |||
Revenue | 360 | 297 | 103 |
Royalties | |||
Revenue | |||
Revenue | 3,155 | 1,741 | 1,061 |
Milestone payments | |||
Revenue | |||
Revenue | 1,869 | 687 | 1,133 |
License fees | |||
Revenue | |||
Revenue | 348 | 90 | |
Reimbursement income | |||
Revenue | |||
Revenue | kr 342 | kr 249 | kr 81 |
RESULTS FOR THE YEAR - Geograph
RESULTS FOR THE YEAR - Geographical Areas (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019DKK (kr)item | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | |
Disclosure of geographical areas [line items] | |||
Revenue | kr 5,366 | kr 3,025 | kr 2,365 |
Non-current assets | kr 707 | 632 | 238 |
Number of business unit | item | 1 | ||
DENMARK | |||
Disclosure of geographical areas [line items] | |||
Revenue | kr 5,366 | 3,025 | 2,365 |
Non-current assets | 387 | 454 | 105 |
NETHERLANDS | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 252 | 167 | 127 |
UNITED STATES | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | kr 68 | kr 11 | kr 6 |
RESULTS FOR THE YEAR - Staff Co
RESULTS FOR THE YEAR - Staff Costs (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESULTS FOR THE YEAR | |||
Wages and salaries | kr 489 | kr 308 | kr 230 |
Share-based compensation | 147 | 91 | 76 |
Defined contribution plans | 39 | 24 | 19 |
Other social security costs | 72 | 23 | 18 |
Government grants | (96) | (86) | (64) |
Total | 651 | 360 | 279 |
Research and development expenses | 572 | 324 | 249 |
General and administrative expenses | 175 | 122 | 94 |
Government grants related to research and development expenses | (96) | (86) | (64) |
Total | kr 651 | kr 360 | kr 279 |
Average number of FTE | 471 | 313 | 235 |
Number of FTE at year-end | 548 | 377 | 257 |
Remuneration to board of directors | kr 96 | kr 86 | kr 64 |
RESULTS FOR THE YEAR - Valuatio
RESULTS FOR THE YEAR - Valuation Assumptions for Warrants Granted (Details) - DKK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value per warrant on grant date | kr 425.80 | kr 386.61 | kr 366.78 |
Share price | 1,483.58 | 1,034.66 | 1,123.91 |
Exercise price | kr 1,483.58 | kr 1,034.66 | kr 1,123.91 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 34.20% | 41.70% | 38.50% |
Risk-free interest rate | (0.56%) | (0.01%) | (0.38%) |
Expected life of warrants | 5 years | 5 years | 5 years |
Fair value of warrants granted | kr 131 | kr 102 | kr 67 |
Fair value of RSU granted (in dollars per share) | kr 1,511.70 | kr 1,033.95 | kr 1,128.30 |
RSUs | |||
Fair value of RSU granted (in dollars per share) | kr 1,511.70 | kr 1,033.95 | kr 1,128.30 |
Fair value of RSU granted | kr 176 | kr 106 | kr 74 |
RESULTS FOR THE YEAR - Corporat
RESULTS FOR THE YEAR - Corporate and Deferred Tax (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESULTS FOR THE YEAR | |||
Current tax on result | kr 444 | kr 161 | kr 133 |
Adjustment to prior years | (1) | ||
Adjustment to deferred tax | 294 | 458 | 626 |
Adjustment to valuation allowance | (45) | (479) | (798) |
Total tax expense (income) | kr 693 | kr 140 | kr (40) |
RESULTS FOR THE YEAR - A reconc
RESULTS FOR THE YEAR - A reconciliation of Genmab's effective tax (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESULTS FOR THE YEAR | |||
Net result before tax | kr 2,859 | kr 1,612 | kr 1,064 |
Computed 22% (2018 & 2017: 22%) | 629 | 355 | 234 |
Recognition of previously unrecognized tax losses and deductible temporary differences | (19) | (267) | (286) |
Non-deductible expenses/non-taxable income and other permanent differences, net | 75 | 53 | 14 |
All other | 8 | (1) | (2) |
Total tax effect | 64 | (215) | (274) |
Total tax expense (income) | 693 | 140 | (40) |
Total tax for the period in shareholders' equity | kr (24) | kr (89) | kr (72) |
Applicable tax rate | 22.00% | 22.00% | 22.00% |
RESULTS FOR THE YEAR - Deferred
RESULTS FOR THE YEAR - Deferred tax asset (Details) - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross deferred tax asset | kr 490 | kr 784 |
Deferred tax assets | 139 | 386 |
Tax deductible losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross deferred tax asset | 359 | 653 |
Share-Based Instruments | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross deferred tax asset | 130 | 119 |
Capitalized R&D Costs | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross deferred tax asset | 4 | |
Other temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross deferred tax asset | 1 | 8 |
Valuation allowance | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | kr 351 | kr 398 |
RESULTS FOR THE YEAR - Valuat_2
RESULTS FOR THE YEAR - Valuation Assumptions for Warrants Granted Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESULTS FOR THE YEAR | |||
Corporate tax | kr (693) | kr (140) | kr 40 |
Current and deferred tax expense | 722 | 407 | 246 |
Current tax benefit recorded directly in shareholders’ equity | 24 | 24 | 72 |
Deferred tax benefit recorded directly in shareholders’ equity | 66 | ||
Discrete tax benefit | 29 | 268 | kr 286 |
Gross tax loss carry forwards | 1.6 | kr 2.6 | |
Gross tax loss carry forwards subject to expiration | kr 1.6 |
RESULTS FOR THE YEAR - Result P
RESULTS FOR THE YEAR - Result Per Share (Details) - DKK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RESULTS FOR THE YEAR | |||
Net result | kr 2,166 | kr 1,472 | kr 1,104 |
Average number of shares outstanding | 63,126,771 | 61,383,972 | 60,934,308 |
Average number of treasury shares | (163,958) | (116,466) | (100,000) |
Average number of shares excl. treasury shares | 62,962,813 | 61,267,506 | 60,834,308 |
Average number of share-based instruments, dilution | 674,030 | 777,491 | 1,259,874 |
Average number of shares, diluted | 63,636,843 | 62,044,997 | 62,094,182 |
Basic net result per share | kr 34.40 | kr 24.03 | kr 18.14 |
Diluted net result per share | kr 34.03 | kr 23.73 | kr 17.77 |
Warrants excluded from calculation of diluted net result per share | 299,573 | 177,369 | 43,019 |
Warrants vested excluded from calculation of diluted net result per share | 774 | 64,703 | 0 |
OPERATING ASSETS AND LIABILIT_3
OPERATING ASSETS AND LIABILITIES - Intangible Assets (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets | |||
Cost at beginning of period | kr 470 | ||
Cost at end of period | 470 | kr 470 | |
Impairment loss on intangibles | 0 | 0 | kr 22 |
Cost | |||
Intangible Assets | |||
Cost at beginning of period | 798 | 392 | |
Additions for the year | 99 | 406 | |
Cost at end of period | 897 | 798 | 392 |
Accumulated amortization and impairment | |||
Intangible Assets | |||
Cost at beginning of period | (328) | (268) | |
Amortization for the year | (99) | (60) | |
Cost at end of period | (427) | (328) | (268) |
Licences, Rights and Patents | |||
Intangible Assets | |||
Cost at beginning of period | 470 | ||
Cost at end of period | 470 | 470 | |
Licences, Rights and Patents | Cost | |||
Intangible Assets | |||
Cost at beginning of period | 798 | 392 | |
Additions for the year | 99 | 406 | |
Cost at end of period | 897 | 798 | 392 |
Licences, Rights and Patents | Accumulated amortization and impairment | |||
Intangible Assets | |||
Cost at beginning of period | (328) | (268) | |
Amortization for the year | (99) | (60) | |
Cost at end of period | kr (427) | kr (328) | kr (268) |
OPERATING ASSETS AND LIABILIT_4
OPERATING ASSETS AND LIABILITIES - Research collaboration and license agreement (Details) € in Millions, kr in Millions, $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019Option | Dec. 31, 2019USD ($) | Dec. 31, 2019item | Dec. 31, 2019DKK (kr) | Dec. 19, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | Jul. 31, 2018property | Jul. 31, 2018USD ($) | Jul. 31, 2018item | Dec. 31, 2017DKK (kr) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Other investments | kr | kr 149 | ||||||||||
Carrying amount of intangible asset | kr | 470 | kr 470 | |||||||||
CureVac | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Upfront Payment | $ | $ 10 | ||||||||||
Other investments | € 20 | 149 | kr 149 | ||||||||
Number of options | 3 | 3 | |||||||||
License exercisable term | 5 years | ||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | 280 | ||||||||||
Immatics | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Number of proprietary targets of license | 3 | 3 | |||||||||
Number of additional proprietary targets of license | item | 2 | ||||||||||
Upfront Payment | $ | $ 54 | ||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | $ 550 | ||||||||||
Minimum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | 275 | ||||||||||
Minimum | CureVac | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | 275 | ||||||||||
Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | 368 | ||||||||||
Maximum | CureVac | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ | $ 368 | ||||||||||
Licences, Rights and Patents | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Carrying amount of intangible asset | kr | 470 | 470 | |||||||||
Licences, Rights and Patents | CureVac | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Carrying amount of intangible asset | kr | 67 | ||||||||||
Cost | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Carrying amount of intangible asset | kr | 897 | 798 | kr 392 | ||||||||
Cost | Immatics | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Carrying amount of intangible asset | kr | 274 | 323 | |||||||||
Previously acquired licenses in use | kr | 152 | ||||||||||
Cost | Licences, Rights and Patents | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Carrying amount of intangible asset | kr | kr 897 | kr 798 | kr 392 |
OPERATING ASSETS AND LIABILIT_5
OPERATING ASSETS AND LIABILITIES - Accounting policies and management estimates (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Research and development expenses | kr 2,386 | kr 1,431 | kr 874 |
Carrying amount of intangible asset | kr 470 | 470 | |
Actual useful life of intangibles | 7 years | ||
Minimum | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful life of intangibles | 7 years | ||
Licences, Rights and Patents | |||
Disclosure of detailed information about intangible assets [line items] | |||
Carrying amount of intangible asset | kr 470 | kr 470 | |
Licences, Rights and Patents | Minimum | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful life of intangibles | 5 years | ||
Licences, Rights and Patents | Maximum | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful life of intangibles | 7 years |
OPERATING ASSETS AND LIABILIT_6
OPERATING ASSETS AND LIABILITIES - Property, Plant and Equipment (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | ||
Cost at beginning of period | kr 162 | |
Cost at end of period | 237 | kr 162 |
Cost | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 313 | 249 |
Additions for the year | 115 | 76 |
Disposals for the year | (2) | (13) |
Exchange rate adjustment | 1 | |
Cost at end of period | 426 | 313 |
Accumulated amortization and impairment | ||
Property, Plant and Equipment | ||
Cost at beginning of period | (151) | (135) |
Depreciation for the year | (40) | (28) |
Disposals for the year | 12 | |
Accumulated depreciation on disposals | 2 | |
Cost at end of period | (189) | (151) |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 87 | |
Cost at end of period | 84 | 87 |
Leasehold improvements | Cost | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 95 | 11 |
Additions for the year | 3 | 7 |
Transfers between the classes | 83 | |
Disposals for the year | (6) | |
Cost at end of period | 98 | 95 |
Leasehold improvements | Accumulated amortization and impairment | ||
Property, Plant and Equipment | ||
Cost at beginning of period | (8) | (6) |
Depreciation for the year | (6) | (8) |
Disposals for the year | 6 | |
Cost at end of period | (14) | (8) |
Equipment, furniture and fixtures | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 74 | |
Cost at end of period | 104 | 74 |
Equipment, furniture and fixtures | Cost | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 217 | 170 |
Additions for the year | 64 | 41 |
Transfers between the classes | 12 | |
Disposals for the year | (2) | (7) |
Exchange rate adjustment | 1 | |
Cost at end of period | 279 | 217 |
Equipment, furniture and fixtures | Accumulated amortization and impairment | ||
Property, Plant and Equipment | ||
Cost at beginning of period | (143) | (129) |
Depreciation for the year | (34) | (20) |
Disposals for the year | 6 | |
Accumulated depreciation on disposals | 2 | |
Cost at end of period | (175) | (143) |
Assets under construction | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 1 | |
Cost at end of period | 49 | 1 |
Assets under construction | Cost | ||
Property, Plant and Equipment | ||
Cost at beginning of period | 1 | 68 |
Additions for the year | 48 | 28 |
Transfers between the classes | (95) | |
Cost at end of period | kr 49 | kr 1 |
OPERATING ASSETS AND LIABILIT_7
OPERATING ASSETS AND LIABILITIES - Depreciation, amortization, and impairments are included in the income statement (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Research and development expenses | kr 37 | kr 26 | kr 12 |
General and administrative expenses | 3 | 2 | |
Total | 40 | 28 | 12 |
Intangible assets other than goodwill [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Research and development expenses | 99 | 60 | 58 |
Total | kr 99 | kr 60 | kr 58 |
OPERATING ASSETS AND LIABILIT_8
OPERATING ASSETS AND LIABILITIES - Depreciation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Equipment, furniture and fixtures | Minimum | |
Property, Plant and Equipment | |
Expected useful lives of assets | 3 years |
Equipment, furniture and fixtures | Maximum | |
Property, Plant and Equipment | |
Expected useful lives of assets | 5 years |
Computer equipment | |
Property, Plant and Equipment | |
Expected useful lives of assets | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment | |
Expected useful lives of assets | 5 years |
OPERATING ASSETS AND LIABILIT_9
OPERATING ASSETS AND LIABILITIES - Leases (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | kr 177 | kr 205 | |
Lease Liabilities | |||
Current | 26 | ||
Non-current | 155 | ||
Total lease liabilities | 181 | kr 205 | kr 205 |
Additions to right of use assets | 0 | ||
Depreciation charge of right-of-use assets | 28 | ||
Interest expense | 7 | ||
Expense relating to short-term leases | 6 | ||
Properties | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 173 | ||
Lease Liabilities | |||
Depreciation charge of right-of-use assets | 27 | ||
Equipment | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 4 | ||
Lease Liabilities | |||
Depreciation charge of right-of-use assets | kr 1 |
OPERATING ASSETS AND LIABILI_10
OPERATING ASSETS AND LIABILITIES - Total cash outflow for leases (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities | kr 205 | |
Cash flows, net | (38) | |
Other changes | kr 14 | |
Lease liabilities | 181 | 205 |
2019 | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities | 181 | |
Cash flows, net | (38) | |
Other changes | 12 | |
Lease liabilities | 155 | 181 |
Lease liabilities, due after 1 year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities | 24 | |
Other changes | 2 | |
Lease liabilities | kr 26 | kr 24 |
OPERATING ASSETS AND LIABILI_11
OPERATING ASSETS AND LIABILITIES - Future minimum payments under our leases (Details) - DKK (kr) kr in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis of operating lease payments [abstract] | ||||
Future minimum payments under our leases | kr 90 | kr 215 | kr 216 | kr 247 |
Estimated capital expenditures to fit out the space | kr 70 | kr 176 | ||
Capital expenditure incurred and capitalized | 48 | |||
Cash outflow for leases | 38 | |||
2019 | ||||
Disclosure of maturity analysis of operating lease payments [abstract] | ||||
Future minimum payments under our leases | 32 | 31 | ||
Cash outflow for leases | 38 | |||
1 to 3 years | ||||
Disclosure of maturity analysis of operating lease payments [abstract] | ||||
Future minimum payments under our leases | 64 | 65 | ||
More than 3 years but less than 5 years | ||||
Disclosure of maturity analysis of operating lease payments [abstract] | ||||
Future minimum payments under our leases | 27 | 45 | ||
2024+ | ||||
Disclosure of maturity analysis of operating lease payments [abstract] | ||||
Future minimum payments under our leases | kr 93 | kr 106 |
OPERATING ASSETS AND LIABILI_12
OPERATING ASSETS AND LIABILITIES - Other Investments (Details) € in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€) | Dec. 31, 2019DKK (kr) | Dec. 19, 2019DKK (kr) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Other investments | kr 149 | ||
CureVac | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Other investments | € 20 | 149 | kr 149 |
Percentage of ownership interest | 2.20% | ||
Fair value of investment | kr 149 |
OPERATING ASSETS AND LIABILI_13
OPERATING ASSETS AND LIABILITIES - Receivables (Details) - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
OPERATING ASSETS AND LIABILITIES | ||
Receivables related to collaboration agreements | kr 2,849 | kr 1,266 |
Interest receivables | 34 | 18 |
Other receivables | 56 | 34 |
Prepayments | 62 | 19 |
Total | 3,001 | 1,337 |
Non-current receivables | 11 | 10 |
Current receivables | 2,990 | 1,327 |
Losses related to receivables and the credit risk on receivables is limited | kr 0 | kr 0 |
OPERATING ASSETS AND LIABILI_14
OPERATING ASSETS AND LIABILITIES - Provisions (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ASSETS AND LIABILITIES | ||||
Provisions at beginning of period | kr 1 | |||
Additions during the year | 1 | |||
Provisions at end of period | 2 | |||
Non-current provisions | kr 2 | kr 1 | ||
Provisions at end of period | kr 2 | kr 2 | kr 1 | kr 1 |
OPERATING ASSETS AND LIABILI_15
OPERATING ASSETS AND LIABILITIES - Other Payables (Details) - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
OPERATING ASSETS AND LIABILITIES | ||
Liabilities related to collaboration agreements | kr 8 | kr 6 |
Staff cost liabilities | 48 | 30 |
Other liabilities | 715 | 213 |
Accounts payable | 69 | 69 |
Total at December 31 | 840 | 318 |
Non-current other payables | 1 | 2 |
Current other payables | 839 | kr 316 |
Pension obligations | kr 0 |
CAPITAL STRUCTURE, FINANCIAL _3
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Capital Management (Details) kr in Millions | 12 Months Ended | |
Dec. 31, 2019DKK (kr)item | Dec. 31, 2018DKK (kr) | |
Disclosure of credit risk exposure [line items] | ||
Number of External Investment Managers | item | 2 | |
Cash position from partnership collaboration income | kr | kr 10,971 | kr 6,106 |
CAPITAL STRUCTURE, FINANCIAL _4
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Financial Risk (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of credit risk exposure [line items] | |||
Percentage of marketable securities | 100.00% | 100.00% | |
EUR | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of possible increase or decrease in exchange rate | 1.00% | 1.00% | |
USD | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of possible increase or decrease in exchange rate | 10.00% | 10.00% | |
GBP | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of possible increase or decrease in exchange rate | 10.00% | 10.00% | |
Credit risk | |||
Disclosure of credit risk exposure [line items] | |||
Maximum credit exposure | kr 10,971 | kr 6,106 | |
Maximum credit exposure to receivables | 3,001 | 1,337 | |
Total value of bank deposits | kr 3,552 | kr 533 | |
Credit risk | Triple A-rating from Moody’s, S&P or Fitch | |||
Disclosure of credit risk exposure [line items] | |||
Percentage of marketable securities | 91.00% | 90.00% | |
Marketable securities including interest receivables | kr 7,453 | kr 5,591 | |
Currency risk | |||
Disclosure of credit risk exposure [line items] | |||
Revenue (as a percent) | 97.00% | 96.00% | 96.00% |
Currency risk | EUR | |||
Disclosure of credit risk exposure [line items] | |||
Marketable securities were invested (as a percent) | 12.00% | 16.00% | |
Currency risk | DKK | |||
Disclosure of credit risk exposure [line items] | |||
Marketable securities were invested (as a percent) | 23.00% | 30.00% | |
Currency risk | USD | |||
Disclosure of credit risk exposure [line items] | |||
Marketable securities were invested (as a percent) | 64.00% | 53.00% | |
Currency risk | GBP | |||
Disclosure of credit risk exposure [line items] | |||
Marketable securities were invested (as a percent) | 1.00% | 1.00% |
CAPITAL STRUCTURE, FINANCIAL _5
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Assets and Liabilities in Foreign Currency (Details) | 12 Months Ended | |
Dec. 31, 2019DKK (kr)item | Dec. 31, 2018DKK (kr) | |
Disclosure of credit risk exposure [line items] | ||
Central rate committed to maintain | 7.46 | |
Positive fluctuation in exchange rate | 2.25% | |
Negative fluctuation in exchange rate | (2.25%) | |
Outstanding derivatives | kr 0 | |
Average effective duration of portfolio | 1 year 1 month 6 days | 1 year 4 months 24 days |
Number of securities in the portfolio | item | 0 | |
Average effective duration of portfolio | 1 year 26 days | 1 year 4 months 21 days |
Percentage point will cause the change in fair value of the securities | 1 | |
Minimum | ||
Disclosure of credit risk exposure [line items] | ||
Average effective duration of portfolio | 9 years | |
Change in the interest rates | 1.10% | |
Maximum | ||
Disclosure of credit risk exposure [line items] | ||
Average effective duration of portfolio | 8 years | |
Change in the interest rates | 1.40% | |
EUR | ||
Disclosure of credit risk exposure [line items] | ||
Percentage change in exchange rate | 1.00% | 1.00% |
Impact of change in exchange rate | kr 10,000,000 | kr 9,000,000 |
USD | ||
Disclosure of credit risk exposure [line items] | ||
Percentage change in exchange rate | 10.00% | 10.00% |
Impact of change in exchange rate | kr 1,053,000,000 | kr 362,000,000 |
GBP | ||
Disclosure of credit risk exposure [line items] | ||
Percentage change in exchange rate | 10.00% | 10.00% |
Impact of change in exchange rate | kr 5,000,000 |
CAPITAL STRUCTURE, FINANCIAL _6
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Maturity profile of our marketable securities (Details) - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | kr 7,419 | kr 5,573 |
2019 | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | 2,880 | |
2020 | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | 3,891 | 1,574 |
2021 | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | 2,190 | 505 |
2022 | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | 493 | 138 |
2023 | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | 102 | 75 |
2024+ | ||
Disclosure of financial assets [line items] | ||
Ifrs Marketable Securities Current | kr 743 | kr 401 |
CAPITAL STRUCTURE, FINANCIAL _7
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Financial Assets and Liabilities (Details) - DKK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities measured at amortized cost | Other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | kr (840) | kr (318) |
Financial liabilities measured at amortized cost | Lease Liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (181) | |
Financial assets measured at fair value through profit or loss | Marketable Securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 7,419 | 5,573 |
Financial assets measured at fair value through profit or loss | Other Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 149 | |
Financial assets measured at amortized cost | Receivables ex. prepayments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 2,939 | 1,318 |
Financial assets measured at amortized cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | kr 3,552 | kr 533 |
CAPITAL STRUCTURE, FINANCIAL _8
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Financial Assets and Liabilities - Narrative (Details) € in Millions, kr in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2019DKK (kr) | Dec. 19, 2019DKK (kr) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Other investments | kr 149 | ||
CureVac | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Other investments | € 20 | kr 149 | kr 149 |
CAPITAL STRUCTURE, FINANCIAL _9
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Marketable Securities (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities | ||||
Cost at the beginning of the period | kr 8,461 | |||
Cost at the end of the period | 15,144 | kr 8,461 | ||
Fair value adjustment for the period | 40 | 199 | ||
Net book value at the end of the period | 15,144 | 8,461 | kr 15,144 | kr 8,461 |
Marketable Securities | ||||
Marketable Securities | ||||
Fair value adjustment at the beginning of the period | 79 | (120) | ||
Fair value adjustment for the period | (40) | 199 | ||
Fair value adjustment at the end of the period | 39 | 79 | ||
Net book value in percentage of cost | 101.00% | 101.00% | ||
Cost | Marketable Securities | ||||
Marketable Securities | ||||
Cost at the beginning of the period | 5,494 | 4,195 | ||
Additions for the period | 5,812 | 3,521 | ||
Disposals and maturities for the period | (3,926) | (2,222) | ||
Cost at the end of the period | 7,380 | 5,494 | ||
Net book value at the end of the period | 7,380 | 5,494 | kr 7,380 | kr 5,494 |
Net Book value | Marketable Securities | ||||
Marketable Securities | ||||
Cost at the beginning of the period | 5,573 | |||
Cost at the end of the period | 7,419 | 5,573 | ||
Net book value at the end of the period | kr 7,419 | kr 5,573 | kr 7,419 | kr 5,573 |
CAPITAL STRUCTURE, FINANCIAL_10
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Marketable securities portfolio (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities | ||
Market value | kr 7,419 | kr 5,573 |
Average effective duration | 1 year 26 days | 1 year 4 months 21 days |
Percentage of marketable securities | 100.00% | 100.00% |
Interest Income on marketable securities | kr 120 | kr 63 |
Fair value adjustment of expense or income | 40 | 199 |
DKK portfolio | ||
Marketable Securities | ||
Market value | kr 1,689 | kr 1,685 |
Average effective duration | 2 years 2 months 12 days | 2 years 4 months 21 days |
Percentage of marketable securities | 23.00% | 30.00% |
Kingdom of Denmark bonds and treasury bills | ||
Marketable Securities | ||
Market value | kr 462 | kr 508 |
Average effective duration | 1 year 10 months 2 days | 1 year 11 months 9 days |
Percentage of marketable securities | 6.00% | 9.00% |
Danish mortgage-backed securities | ||
Marketable Securities | ||
Market value | kr 1,227 | kr 1,177 |
Average effective duration | 2 years 3 months 29 days | 2 years 6 months 29 days |
Percentage of marketable securities | 17.00% | 21.00% |
European government bonds and treasury bills | ||
Marketable Securities | ||
Market value | kr 873 | kr 875 |
Average effective duration | 1 year 3 months 29 days | 1 year 4 months 17 days |
Percentage of marketable securities | 12.00% | 16.00% |
US government bonds and treasury bills | ||
Marketable Securities | ||
Market value | kr 4,778 | kr 2,938 |
Average effective duration | 7 months 17 days | 10 months 2 days |
Percentage of marketable securities | 64.00% | 53.00% |
UK government bonds and treasury bills | ||
Marketable Securities | ||
Market value | kr 79 | kr 75 |
Average effective duration | 6 months 18 days | 6 months 18 days |
Percentage of marketable securities | 1.00% | 1.00% |
CAPITAL STRUCTURE, FINANCIAL_11
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Financial Income and Expenses (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Income: | ||||
Interest and other financial income | kr 120 | kr 63 | kr 41 | |
Realized and unrealized gains on marketable securities (fair value through the income statement), net | 9 | |||
Realized and unrealized gains on fair value hedges, net | 2 | 30 | ||
Realized and unrealized exchange rate gains, net | 99 | 178 | ||
Total financial income | 228 | 243 | 72 | |
Financial expenses: | ||||
Interest and other financial expenses | (7) | (2) | ||
Realized and unrealized losses on marketable securities (fair value through the income statement), net | (11) | (20) | ||
Realized and unrealized exchange rate losses, net | (330) | |||
Total financial expenses | 7 | 11 | 352 | |
Net financial items | 221 | 232 | 280 | |
Interest and other financial income on financial assets measured at amortized cost | kr 22 | kr 8 | 2 | |
Interest and other financial expenses on financial liabilities measured at amortized cost | kr 3 | |||
Increase in exchange rate due to positive impact on our USD denominated portfolio | 6.6759% | 6.5213% | 6.2067% | |
Decrease in exchange rate due to negative impacted on our USD denominated portfolio | 6.2067% | 7.0528% |
CAPITAL STRUCTURE, FINANCIAL_12
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Restricted Stock Unit Program (Details) - RSUs | 12 Months Ended |
Dec. 31, 2019shares | |
Share-Based Instruments | |
Vesting period | 3 years |
Period from vesting date for crediting shares | 30 days |
Number of shares per RSU | 1 |
CAPITAL STRUCTURE, FINANCIAL_13
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - RSU Activity (Details) | 12 Months Ended | ||
Dec. 31, 2019EquityInstrumentskr / sharesshares | Dec. 31, 2018EquityInstrumentskr / sharesshares | Dec. 31, 2017EquityInstrumentskr / sharesshares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cancelled | shares | 15,374 | 21,711 | 10,996 |
Weighted average fair value of RSU granted | kr / shares | kr 1,511.70 | kr 1,033.95 | kr 1,128.30 |
Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cancelled | shares | 4,582 | 73 | |
Former Member Of Board Of Directors and Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cancelled | shares | 15,374 | 17,129 | 10,923 |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at beginning of period | 218,902 | 168,044 | 102,387 |
Granted | 116,742 | 102,639 | 65,951 |
Settled | shares | (22,189) | (47,450) | |
Cancelled | shares | (5,548) | (4,331) | (294) |
Outstanding at end of period | 307,907 | 218,902 | 168,044 |
RSUs | Board of Directors | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at beginning of period | 20,127 | 24,328 | 18,688 |
Granted | 3,708 | 5,224 | 7,661 |
Settled | shares | (2,631) | (9,425) | |
Transferred | shares | (1,251) | (2,021) | |
Outstanding at end of period | 19,953 | 20,127 | 24,328 |
RSUs | Executive Management | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at beginning of period | 66,152 | 83,857 | 64,258 |
Granted | 25,793 | 18,020 | 19,599 |
Settled | shares | (19,080) | (35,725) | |
Outstanding at end of period | 72,865 | 66,152 | 83,857 |
RSUs | Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at beginning of period | 130,046 | 55,475 | 18,291 |
Granted | 87,168 | 79,395 | 38,691 |
Transferred | shares | (8,355) | (3,358) | (1,484) |
Cancelled | shares | (1,466) | (23) | |
Outstanding at end of period | 208,859 | 130,046 | 55,475 |
RSUs | Former Member Of Board Of Directors and Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at beginning of period | 2,577 | 4,384 | 1,150 |
Granted | 73 | ||
Settled | shares | (478) | (2,300) | |
Transferred | shares | 9,606 | 3,358 | 3,505 |
Cancelled | shares | (5,548) | (2,865) | (271) |
Outstanding at end of period | 6,230 | 2,577 | 4,384 |
CAPITAL STRUCTURE, FINANCIAL_14
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Warrant Activity (Details) - DKK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Balance at beginning of period | 1,423,210 | 1,518,186 | 2,190,311 | ||||||
Granted | 307,219 | 276,507 | 182,689 | ||||||
Exercised | (299,431) | (311,897) | (835,618) | (818,793) | (2,563,844) | (611,697) | |||
Expired | (2,000) | (37,875) | (8,200) | ||||||
Cancelled | (15,374) | (21,711) | (10,996) | ||||||
Balance at end of period | 1,413,624 | 1,423,210 | 1,518,186 | 2,190,311 | |||||
Exercisable at year end | 638,248 | 867,865 | 1,084,371 | ||||||
Exercisable warrants in the money at year end | 627,061 | 807,279 | 1,053,786 | ||||||
Weighted average exercise price of warrants at beginning | kr 592.14 | kr 436.01 | kr 311.52 | ||||||
Weighted average exercise price of warrants granted | 1,483.58 | 1,034.66 | 1,123.91 | ||||||
Weighted average exercise price of fair market value | 1,267.92 | 1,206.11 | 1,368.32 | ||||||
Weighted average exercise price of warrants exercised | 212.23 | 241.34 | 257.19 | ||||||
Weighted average exercise price of warrants expired | 129.75 | 253.76 | 348.20 | ||||||
Weighted average exercise price of warrants cancelled | 1,049.34 | 940.01 | 722.48 | ||||||
Weighted average exercise price of warrants at ending | kr 862.03 | kr 592.14 | kr 436.01 | kr 311.52 | |||||
Weighted Average Exercise Price Of Warrants Exercisable | kr 407.89 | kr 295.02 | kr 233.81 | ||||||
Weighted Average Exercise Price Of Warrants Exercisable In Money | kr 385.84 | kr 230.43 | kr 201.27 | ||||||
Exercise of warrants | kr 65 | kr 75 | kr 215 | ||||||
Percentage of share capital attributed to exercise of warrants | 2.00% | 2.00% | |||||||
Number of warrants outstanding | 1,413,624 | 1,423,210 | 1,518,186 | 2,190,311 | 1,413,624 | 1,423,210 | 1,518,186 | ||
Warrants outstanding (as a percent) | 2.00% | 2.00% | |||||||
Weighted Average Exercise Price Of Warrants Outstanding | kr 862.03 | kr 592.14 | kr 436.01 | kr 311.52 | kr 862.03 | kr 592.14 | kr 436.01 | ||
Board of Directors | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Balance at beginning of period | 74,478 | 92,242 | 129,742 | ||||||
Granted | 3,925 | 3,161 | 4,125 | ||||||
Exercised | (15,750) | (20,925) | (31,625) | ||||||
Transfers | (319) | (10,000) | |||||||
Balance at end of period | 62,334 | 74,478 | 92,242 | 129,742 | |||||
Exercisable at year end | 50,227 | 62,647 | 79,380 | ||||||
Exercisable warrants in the money at year end | 50,227 | 60,688 | 78,400 | ||||||
Number of warrants outstanding | 62,334 | 74,478 | 92,242 | 129,742 | 62,334 | 74,478 | 92,242 | ||
Executive Management | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Balance at beginning of period | 480,201 | 559,737 | 877,418 | ||||||
Granted | 50,464 | 59,819 | |||||||
Exercised | (132,400) | (130,000) | (377,500) | ||||||
Balance at end of period | 347,801 | 480,201 | 559,737 | 877,418 | |||||
Exercisable at year end | 230,233 | 355,347 | 472,119 | ||||||
Exercisable warrants in the money at year end | 227,733 | 340,775 | 464,832 | ||||||
Number of warrants outstanding | 347,801 | 480,201 | 559,737 | 877,418 | 347,801 | 480,201 | 559,737 | ||
Employees | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Balance at beginning of period | 706,088 | 574,295 | 644,097 | ||||||
Granted | 303,066 | 222,882 | 118,745 | ||||||
Exercised | (56,237) | (46,883) | (131,709) | ||||||
Cancelled | (4,582) | (73) | |||||||
Transfers | (93,944) | (39,624) | (56,765) | ||||||
Balance at end of period | 858,973 | 706,088 | 574,295 | 644,097 | |||||
Exercisable at year end | 225,855 | 297,128 | 262,414 | ||||||
Exercisable warrants in the money at year end | 219,403 | 257,115 | 241,241 | ||||||
Number of warrants outstanding | 858,973 | 706,088 | 574,295 | 644,097 | 858,973 | 706,088 | 574,295 | ||
Former Member Of Board Of Directors and Employees | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Balance at beginning of period | 162,443 | 291,912 | 539,054 | ||||||
Granted | 228 | ||||||||
Exercised | (95,044) | (114,089) | (294,784) | ||||||
Expired | (2,000) | (37,875) | (8,200) | ||||||
Cancelled | (15,374) | (17,129) | (10,923) | ||||||
Transfers | 94,263 | 39,624 | 66,765 | ||||||
Balance at end of period | 144,516 | 162,443 | 291,912 | 539,054 | |||||
Exercisable at year end | 131,933 | 152,743 | 270,458 | ||||||
Exercisable warrants in the money at year end | 129,698 | 148,701 | 269,313 | ||||||
Number of warrants outstanding | 144,516 | 162,443 | 291,912 | 539,054 | 144,516 | 162,443 | 291,912 | ||
Warrants Granted from August 2004 until April 2012 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Percentage of share capital attributed to exercise of warrants | 25.00% | ||||||||
Warrants outstanding (as a percent) | 25.00% | ||||||||
Warrants Granted from April 2012 until March 2017 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Warrant vesting period | 4 years | ||||||||
Warrants Granted from March 2017 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Warrant vesting period | 3 years |
CAPITAL STRUCTURE, FINANCIAL_15
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Weighted Average Outstanding Warrants (Details) - kr / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of warrants outstanding | 1,413,624 | 1,423,210 | 1,518,186 | 2,190,311 |
Number of warrants exercisable | 638,248 | 867,865 | 1,084,371 | |
31.75 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 31.75 | kr 31.75 | ||
Number of warrants outstanding | 5,950 | 7,525 | ||
Weighted average remaining contractual life | 1 year 9 months 15 days | 2 years 9 months 15 days | ||
Number of warrants exercisable | 5,950 | 7,525 | ||
40.41 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 40.41 | kr 40.41 | ||
Number of warrants outstanding | 80,205 | 85,975 | ||
Weighted average remaining contractual life | 1 year 5 months 23 days | 2 years 5 months 23 days | ||
Number of warrants exercisable | 80,205 | 85,975 | ||
46.74 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 46.74 | kr 46.74 | ||
Number of warrants outstanding | 85,000 | 85,000 | ||
Weighted average remaining contractual life | 5 months 1 day | 1 year 5 months 1 day | ||
Number of warrants exercisable | 85,000 | 85,000 | ||
55.85 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 55.85 | kr 55.85 | ||
Number of warrants outstanding | 5,500 | 8,500 | ||
Weighted average remaining contractual life | 1 year 3 months 7 days | 2 years 3 months 7 days | ||
Number of warrants exercisable | 5,500 | 8,500 | ||
66.60 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 66.60 | kr 66.60 | ||
Number of warrants outstanding | 35,500 | 37,750 | ||
Weighted average remaining contractual life | 11 months 9 days | 1 year 11 months 9 days | ||
Number of warrants exercisable | 35,500 | 37,750 | ||
67.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 67.50 | kr 67.50 | ||
Number of warrants outstanding | 3,250 | 3,250 | ||
Weighted average remaining contractual life | 9 months 15 days | 1 year 9 months 15 days | ||
Number of warrants exercisable | 3,250 | 3,250 | ||
68.65 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 68.65 | kr 68.65 | ||
Number of warrants outstanding | 3,325 | 5,450 | ||
Weighted average remaining contractual life | 3 months 22 days | 1 year 3 months 22 days | ||
Number of warrants exercisable | 3,325 | 5,450 | ||
147.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 147.50 | kr 147.50 | ||
Number of warrants outstanding | 1,500 | 7,750 | ||
Weighted average remaining contractual life | 3 months 18 days | 1 year 3 months 18 days | ||
Number of warrants exercisable | 1,500 | 7,750 | ||
199.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 199 | kr 199 | ||
Number of warrants outstanding | 1,000 | 1,000 | ||
Weighted average remaining contractual life | 5 months 12 days | 1 year 5 months 12 days | ||
Number of warrants exercisable | 1,000 | 1,000 | ||
210.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 210 | kr 210 | ||
Number of warrants outstanding | 2,750 | 3,088 | ||
Weighted average remaining contractual life | 1 year 1 month 10 days | 2 years 1 month 10 days | ||
Number of warrants exercisable | 2,750 | 3,088 | ||
220.40 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 220.40 | kr 220.40 | ||
Number of warrants outstanding | 17,750 | 33,800 | ||
Weighted average remaining contractual life | 1 year 9 months 15 days | 2 years 9 months 15 days | ||
Number of warrants exercisable | 17,750 | 33,800 | ||
225.30 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 225.30 | kr 225.30 | ||
Number of warrants outstanding | 4,625 | 7,975 | ||
Weighted average remaining contractual life | 1 year 5 months 12 days | 2 years 5 months 12 days | ||
Number of warrants exercisable | 4,625 | 7,975 | ||
225.90 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 225.90 | kr 225.90 | ||
Number of warrants outstanding | 137,059 | 175,047 | ||
Weighted average remaining contractual life | 11 months 5 days | 1 year 11 months 5 days | ||
Number of warrants exercisable | 137,059 | 175,047 | ||
231.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 231.50 | kr 231.50 | ||
Number of warrants outstanding | 3,665 | 7,850 | ||
Weighted average remaining contractual life | 9 months 11 days | 1 year 9 months 11 days | ||
Number of warrants exercisable | 3,665 | 7,850 | ||
337.40 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 337.40 | kr 337.40 | ||
Number of warrants outstanding | 50,986 | 90,945 | ||
Weighted average remaining contractual life | 1 year 11 months 16 days | 2 years 11 months 16 days | ||
Number of warrants exercisable | 50,986 | 90,945 | ||
466.20 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 466.20 | kr 466.20 | ||
Number of warrants outstanding | 8,100 | 11,061 | ||
Weighted average remaining contractual life | 2 years 2 months 27 days | 3 years 2 months 27 days | ||
Number of warrants exercisable | 8,100 | 6,664 | ||
623.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 623.50 | kr 623.50 | ||
Number of warrants outstanding | 2,575 | 6,350 | ||
Weighted average remaining contractual life | 2 years 5 months 12 days | 3 years 5 months 12 days | ||
Number of warrants exercisable | 2,575 | 3,913 | ||
636.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 636.50 | kr 636.50 | ||
Number of warrants outstanding | 21,000 | 24,500 | ||
Weighted average remaining contractual life | 2 years 9 months 7 days | 3 years 9 months 7 days | ||
Number of warrants exercisable | 21,000 | 16,250 | ||
815.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 815.50 | kr 815.50 | ||
Number of warrants outstanding | 12,449 | 14,837 | ||
Weighted average remaining contractual life | 3 years 2 months 16 days | 4 years 2 months 16 days | ||
Number of warrants exercisable | 8,390 | 6,362 | ||
939.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 939.50 | kr 939.50 | ||
Number of warrants outstanding | 73,162 | 80,874 | ||
Weighted average remaining contractual life | 2 years 11 months 9 days | 3 years 11 months 9 days | ||
Number of warrants exercisable | 73,162 | 57,880 | ||
962.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 962 | kr 962 | ||
Number of warrants outstanding | 14,564 | 14,714 | ||
Weighted average remaining contractual life | 5 years 5 months 9 days | 6 years 5 months 9 days | ||
1025.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,025 | kr 1,025 | ||
Number of warrants outstanding | 206,097 | 210,437 | ||
Weighted average remaining contractual life | 5 years 11 months 9 days | 6 years 11 months 9 days | ||
1032.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,032 | kr 1,032 | ||
Number of warrants outstanding | 131,444 | 133,637 | ||
Weighted average remaining contractual life | 4 years 11 months 16 days | 5 years 11 months 16 days | ||
1050.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,050 | kr 1,050 | ||
Number of warrants outstanding | 27,082 | 33,226 | ||
Weighted average remaining contractual life | 5 years 8 months 23 days | 6 years 8 months 23 days | ||
1136.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,136 | kr 1,136 | ||
Number of warrants outstanding | 18,450 | 19,450 | ||
Weighted average remaining contractual life | 3 years 9 months 7 days | 4 years 9 months 7 days | ||
Number of warrants exercisable | 14,089 | 9,725 | ||
1145.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,145 | kr 1,145 | ||
Number of warrants outstanding | 83,287 | 86,660 | ||
Weighted average remaining contractual life | 3 years 11 months 16 days | 4 years 11 months 16 days | ||
Number of warrants exercisable | 62,190 | 43,675 | ||
1147.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,147.50 | |||
Number of warrants outstanding | 21,343 | |||
Weighted average remaining contractual life | 6 years 5 months 5 days | |||
1155.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,155 | |||
Number of warrants outstanding | 7,959 | |||
Weighted average remaining contractual life | 6 years 3 months | |||
1161.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,161 | |||
Number of warrants outstanding | 19,830 | |||
Weighted average remaining contractual life | 6 years 2 months 1 day | |||
1210.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,210 | kr 1,210 | ||
Number of warrants outstanding | 14,881 | 14,954 | ||
Weighted average remaining contractual life | 5 years 3 months 11 days | 6 years 3 months 11 days | ||
1233.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,233 | kr 1,233 | ||
Number of warrants outstanding | 13,763 | 14,438 | ||
Weighted average remaining contractual life | 3 years 5 months 9 days | 4 years 5 months 9 days | ||
Number of warrants exercisable | 9,903 | 6,713 | ||
1334.50 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,334.50 | |||
Number of warrants outstanding | 62,848 | |||
Weighted average remaining contractual life | 6 years 9 months 11 days | |||
1402.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,402 | kr 1,402 | ||
Number of warrants outstanding | 8,736 | 8,736 | ||
Weighted average remaining contractual life | 4 years 2 months 27 days | 5 years 2 months 27 days | ||
1408.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,408 | kr 1,408 | ||
Number of warrants outstanding | 5,151 | 5,224 | ||
Weighted average remaining contractual life | 4 years 5 months 9 days | 5 years 5 months 9 days | ||
1424.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,424 | kr 1,424 | ||
Number of warrants outstanding | 1,526 | 1,606 | ||
Weighted average remaining contractual life | 4 years 1 month 10 days | 5 years 1 month 10 days | ||
Number of warrants exercisable | 774 | 478 | ||
1427.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,427 | kr 1,427 | ||
Number of warrants outstanding | 8,400 | 8,400 | ||
Weighted average remaining contractual life | 4 years 3 months | 5 years 3 months | ||
1432.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,432 | kr 1,432 | ||
Number of warrants outstanding | 17,901 | 17,901 | ||
Weighted average remaining contractual life | 4 years 9 months 4 days | 5 years 9 months 4 days | ||
1615.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 1,615 | |||
Number of warrants outstanding | 195,011 | |||
Weighted average remaining contractual life | 6 years 11 months 5 days | |||
862.03 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 862.03 | |||
Number of warrants outstanding | 1,413,624 | |||
Weighted average remaining contractual life | 4 years 18 days | |||
Number of warrants exercisable | 638,248 | |||
45.24 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 45.24 | |||
Number of warrants outstanding | 1,000 | |||
Weighted average remaining contractual life | 3 months 26 days | |||
Number of warrants exercisable | 1,000 | |||
79.25 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 79.25 | |||
Number of warrants outstanding | 5,000 | |||
Weighted average remaining contractual life | 9 months 11 days | |||
Number of warrants exercisable | 5,000 | |||
80.55 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 80.55 | |||
Number of warrants outstanding | 111,750 | |||
Weighted average remaining contractual life | 11 months 5 days | |||
Number of warrants exercisable | 111,750 | |||
98.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 98 | |||
Number of warrants outstanding | 1,375 | |||
Weighted average remaining contractual life | 1 year 29 days | |||
Number of warrants exercisable | 1,375 | |||
129.75 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 129.75 | |||
Number of warrants outstanding | 5,075 | |||
Weighted average remaining contractual life | 9 months 7 days | |||
Number of warrants exercisable | 5,075 | |||
174.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 174 | |||
Number of warrants outstanding | 25,000 | |||
Weighted average remaining contractual life | 5 months 16 days | |||
Number of warrants exercisable | 25,000 | |||
234.00 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 234 | |||
Number of warrants outstanding | 6,100 | |||
Weighted average remaining contractual life | 3 months 15 days | |||
Number of warrants exercisable | 6,100 | |||
592.14 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | kr 592.14 | |||
Number of warrants outstanding | 1,423,210 | |||
Weighted average remaining contractual life | 3 years 9 months 4 days | |||
Number of warrants exercisable | 867,865 |
CAPITAL STRUCTURE, FINANCIAL_16
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Share Capital (Details) | Mar. 17, 2021DKK (kr)shares | Jul. 17, 2019DKK (kr) | Mar. 29, 2019DKK (kr)shares | Apr. 09, 2014DKK (kr)shares | Dec. 31, 2019DKK (kr)Voteitemkr / sharesshares | Mar. 17, 2016DKK (kr)shares | Dec. 31, 2014shares |
Share Capital | |||||||
Par value (in euros per share) | kr / shares | kr 1 | ||||||
Number Of Shares Authorised | shares | 65,074,502 | ||||||
Number Of Votes | Vote | 1 | ||||||
Number of shares issued | shares | 3,277,500 | 4,600,000 | |||||
Increase in authorized capital | kr | kr 2,850,000 | ||||||
Additional Increase in authorized capital | kr | 427,500 | ||||||
Remaining amount of the authorization | kr | kr 4,222,500 | ||||||
Warrants remain available for issue | item | 370,381 | ||||||
Warrants remain available for reissue | item | 7,883 | ||||||
Number of shares authorized to be repurchased | shares | 500,000 | 500,000 | |||||
Nominal value of shares repurchases | kr | kr 500,000 | kr 500,000 | |||||
Forecast | |||||||
Share Capital | |||||||
New shares issued on conversion of loan | shares | 4,000,000 | ||||||
Time limit for conversion of debt to equity | 5 years | ||||||
First authorization | |||||||
Share Capital | |||||||
Warrants issued | item | 346,337 | ||||||
Warrants reissued | item | 9,988 | ||||||
Number of shares authorized to be repurchased | shares | 500,000 | ||||||
Nominal value of shares repurchases | kr | kr 500,000 | ||||||
Share repurchased | shares | 225,000 | ||||||
Share repurchased amount | kr | kr 225,000 | ||||||
Shares available for repurchase | shares | 775,000 | ||||||
Shares available for repurchase amount | kr | kr 775,000 | ||||||
Second authorization | |||||||
Share Capital | |||||||
Warrants issued | item | 283,282 | ||||||
Warrants reissued | item | 76 | ||||||
Number of shares authorized to be repurchased | shares | 500,000 | ||||||
Nominal value of shares repurchases | kr | kr 500,000 | ||||||
Maximum | |||||||
Share Capital | |||||||
Number Of Shares Authorised | shares | 7,500,000 | ||||||
Number of shares issued | shares | 2,000,000 | ||||||
Warrants authorized to issue | shares | 500,000 | 500,000 | |||||
Capital increases in cash | kr | kr 500,000 | kr 500,000 | |||||
Maximum | Forecast | |||||||
Share Capital | |||||||
Maximum amount of loans against bonds or other financial instruments | kr | kr 3,000,000,000 | ||||||
Value of convertible loans | kr | kr 4,000,000 |
CAPITAL STRUCTURE, FINANCIAL_17
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Changes in Share Capital (Details) kr / shares in Units, kr in Millions, $ in Millions | Jul. 23, 2019USD ($)shares | Jul. 23, 2019DKK (kr)shares | Jul. 22, 2019USD ($)shares | Jul. 22, 2019DKK (kr)shares | Dec. 31, 2019DKK (kr)kr / sharesshares | Dec. 31, 2018DKK (kr)kr / sharesshares | Dec. 31, 2017DKK (kr)kr / sharesshares | Dec. 31, 2016DKK (kr)kr / sharesshares | Dec. 31, 2015DKK (kr)kr / sharesshares | Dec. 31, 2014DKK (kr)kr / sharesshares | Jan. 24, 2014shares |
Share Capital | |||||||||||
Shares authorized | 65,074,502 | ||||||||||
Nominal amount | kr / shares | kr 1 | ||||||||||
Number of shares | |||||||||||
Number of shares, at beginning of period | 61,497,571 | 61,185,674 | 60,350,056 | 59,531,263 | 56,967,419 | 51,755,722 | |||||
Shares issued (in shares) | 3,277,500 | 4,600,000 | |||||||||
Exercise of warrants | 299,431 | 311,897 | 835,618 | 818,793 | 2,563,844 | 611,697 | |||||
Number of shares, at end of period | 65,074,502 | 61,497,571 | 61,185,674 | 60,350,056 | 59,531,263 | 56,967,419 | |||||
Share capital | |||||||||||
Share capital, at beginning of period | kr | kr 61 | kr 61.2 | kr 60.4 | kr 59.6 | kr 57 | kr 51.8 | |||||
Shares issued for cash | kr | 3.3 | 4.6 | |||||||||
Exersise of warrants | kr | 0.3 | 0.3 | 0.8 | 0.8 | 2.6 | 0.6 | |||||
Share capital, at end of period | kr | kr 65.1 | kr 61 | kr 61.2 | kr 60.4 | kr 59.6 | kr 57 | |||||
Gross proceeds from the issuance of new shares | $ 582 | kr 3,873 | $ 506 | kr 3,368 | |||||||
Increase in share capital of ordinary shares | 2,850,000 | 2,850,000 | |||||||||
Number of shares issued | 3,277,500 | 4,600,000 | |||||||||
Minimum | |||||||||||
Share capital | |||||||||||
Exercise price warrants granted | kr / shares | kr 31.75 | kr 40.41 | kr 31.75 | kr 31.75 | kr 26.75 | kr 26.75 | |||||
Maximum | |||||||||||
Share capital | |||||||||||
Exercise price warrants granted | kr / shares | kr 1,424 | kr 1,233 | kr 1,233 | kr 636.50 | kr 364 | kr 234 | |||||
American Depository Receipt [Member] | |||||||||||
Share capital | |||||||||||
Increase in share capital of ordinary shares | 28,500,000 | 28,500,000 | |||||||||
Private placement | |||||||||||
Number of shares | |||||||||||
Shares issued (in shares) | 4,600,000 | ||||||||||
Share capital | |||||||||||
Number of shares issued | 4,600,000 | ||||||||||
Underwriters option | |||||||||||
Share capital | |||||||||||
Increase in share capital of ordinary shares | 427,500 | 427,500 | |||||||||
Underwriters option | American Depository Receipt [Member] | |||||||||||
Share capital | |||||||||||
Increase in share capital of ordinary shares | 3,277,500 | 3,277,500 | 4,275,000 | 4,275,000 |
CAPITAL STRUCTURE, FINANCIAL_18
CAPITAL STRUCTURE, FINANCIAL RISK AND RELATED ITEMS - Treasury Shares (Details) | 12 Months Ended | |||
Dec. 31, 2019DKK (kr)itemshares | Dec. 31, 2018DKK (kr)shares | Dec. 31, 2017DKK (kr)shares | Mar. 29, 2019DKK (kr)shares | |
Number of shares | ||||
Number of shares at end of period | shares | 3,277,500 | |||
Share capital | ||||
Share capital, at beginning of period | kr 61,000,000 | kr 61,200,000 | kr 60,400,000 | |
Purchase of treasury shares | 0 | 146,000,000 | 0 | |
Share capital, at end of period | kr 65,100,000 | kr 61,000,000 | kr 61,200,000 | |
Cost | ||||
Number of authorization | item | 2 | |||
Number of shares authorized to be repurchased | shares | 500,000 | 500,000 | ||
Nominal value of shares repurchases | kr 500,000 | kr 500,000 | ||
Treasury shares | ||||
Number of shares | ||||
Number of shares at beginning of period | shares | 177,550 | 100,000 | 100,000 | |
Purchase of treasury shares. | shares | 125,000 | |||
Shares used for funding RSU program | shares | (13,629) | (47,450) | ||
Number of shares at end of period | shares | 163,921 | 177,550 | 100,000 | |
Share capital | ||||
Share capital, at beginning of period | kr 200,000 | kr 100,000 | kr 100,000 | |
Purchase of treasury shares | 100,000 | |||
Share capital, at end of period | kr 200,000 | kr 200,000 | kr 100,000 | |
Proportion of share capital | ||||
Proportion of share capital, at beginning of period | 0.30% | 0.20% | 0.20% | |
Proportion of share capital on purchase of treasury shares | 0.20% | |||
Proportion of share capital on shares used for funding RSU program | (0.10%) | |||
Proportion of share capital, at end of period | 0.30% | 0.30% | 0.20% | |
Cost | ||||
Cost, at beginning of period | kr 208,000,000 | kr 118,000,000 | kr 118,000,000 | |
Purchase of treasury shares | 146,000,000 | |||
Shares used for funding RSU program | (16,000,000) | (56,000,000) | ||
Cost at end of period | kr 192,000,000 | kr 208,000,000 | kr 118,000,000 | |
RSUs | ||||
Number of shares | ||||
Purchase of treasury shares. | shares | 125,000 | |||
Share capital | ||||
Purchase of treasury shares | kr 146,000,000 | |||
Proportion of share capital | ||||
Proportion of share capital, at beginning of period | 0.20% | |||
Proportion of share capital, at end of period | 0.20% |
OTHER DISCLOSURES - Remuneratio
OTHER DISCLOSURES - Remuneration of the Board of Directors and Executive Management (Details) | 12 Months Ended | ||
Dec. 31, 2019DKK (kr)item | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | |
Remuneration of the Board of Directors and Executive Management | |||
Wages and salaries | kr 42,000,000 | kr 34,000,000 | kr 39,000,000 |
Share-based compensation expenses | 38,000,000 | 32,000,000 | 28,000,000 |
Defined contribution plans | 1,000,000 | 1,000,000 | 1,000,000 |
Total | 81,000,000 | kr 67,000,000 | kr 68,000,000 |
Basic board fee | kr 400,000 | ||
Number of times basic fee received by Deputy Chairman | item | 2 | ||
Number of times basic fee received by Chairman | item | 3 | ||
Audit and Finance Committee membership basic fee | kr 100,000 | ||
Audit and Finance Committee Chairman receiving fee | 150,000 | ||
Audit and Finance Committee meeting fee | 10,000 | ||
Compensation Committee membership basic fee | 80,000 | ||
Compensation Committee Chairman receiving fee | 120,000 | ||
Compensation Committee meeting fee | 10,000 | ||
Nominating and Corporate Governance Committee membership basic fee | 70,000 | ||
Nominating and Corporate Governance Committee Chairman receiving fee | 100,000 | ||
Nominating and Corporate Governance Committee meeting fee | 10,000 | ||
Scientific Committee membership basic fee | 100,000 | ||
Scientific Committee Chairman receiving fee | 130,000 | ||
Scientific Committee meeting fee | kr 10,000 |
OTHER DISCLOSURES - Share-Based
OTHER DISCLOSURES - Share-Based Compensation (Details) - DKK (kr) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | kr 400,000 | ||
Share-based compensation expenses | 1,000,000 | kr 1,000,000 | kr 1,000,000 |
Total | 81,000,000 | 67,000,000 | 68,000,000 |
Board of Directors | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 4,800,000 | 4,800,000 | 4,700,000 |
Committee fees | 2,000,000 | 1,700,000 | 1,400,000 |
Share-based compensation expenses | 5,100,000 | 4,800,000 | 5,400,000 |
Total | 11,900,000 | 11,300,000 | 11,500,000 |
Mats Pettersson | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 1,200,000 | 1,200,000 | 1,200,000 |
Committee fees | 200,000 | 300,000 | 300,000 |
Share-based compensation expenses | 800,000 | 900,000 | 1,000,000 |
Total | 2,200,000 | 2,400,000 | 2,500,000 |
Anders Gersel Pedersen | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 500,000 | 800,000 |
Committee fees | 400,000 | 300,000 | 300,000 |
Share-based compensation expenses | 600,000 | 600,000 | 700,000 |
Total | 1,400,000 | 1,400,000 | 1,800,000 |
Pernille Erenbjerg | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 400,000 | 400,000 |
Committee fees | 300,000 | 300,000 | 300,000 |
Share-based compensation expenses | 400,000 | 500,000 | 700,000 |
Total | 1,100,000 | 1,200,000 | 1,400,000 |
Paolo Paoletti | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 400,000 | 400,000 |
Committee fees | 300,000 | 200,000 | 100,000 |
Share-based compensation expenses | 400,000 | 500,000 | 700,000 |
Total | 1,100,000 | 1,100,000 | 1,200,000 |
Rolf Hoffmann | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 400,000 | 300,000 |
Committee fees | 300,000 | 300,000 | 200,000 |
Share-based compensation expenses | 800,000 | 700,000 | 400,000 |
Total | 1,500,000 | 1,400,000 | 900,000 |
Deirdre P. Connelly | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 800,000 | 700,000 | 300,000 |
Committee fees | 500,000 | 300,000 | 200,000 |
Share-based compensation expenses | 900,000 | 700,000 | 400,000 |
Total | 2,200,000 | 1,700,000 | 900,000 |
Peter Storm Kristensen | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 400,000 | 400,000 |
Share-based compensation expenses | 400,000 | 300,000 | 200,000 |
Total | 800,000 | 700,000 | 600,000 |
Rick Hibbert | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 100,000 | 400,000 | 400,000 |
Share-based compensation expenses | 400,000 | 300,000 | 200,000 |
Total | 500,000 | 700,000 | 600,000 |
Daniel Bruno | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 400,000 | 400,000 | 400,000 |
Share-based compensation expenses | 400,000 | 300,000 | 200,000 |
Total | 800,000 | kr 700,000 | 600,000 |
Mijke Zachariasse | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 300,000 | ||
Total | kr 300,000 | ||
Burton G. Malkiel | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Basic board fee | 100,000 | ||
Share-based compensation expenses | 900,000 | ||
Total | kr 1,000,000 | ||
RSUs | New Board of Director | Maximum | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Value of shares granted on percentage of compensation | 400.00% | ||
RSUs | Board of Directors | Maximum | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Value of shares granted on percentage of compensation | 100.00% | ||
RSUs | Chairman | Maximum | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Value of shares granted on percentage of compensation | 200.00% | ||
RSUs | Deputy Chairman | Maximum | |||
Shareholdings By Board Of Director And Executive Management Line Items | |||
Value of shares granted on percentage of compensation | 150.00% |
OTHER DISCLOSURES - Remunerat_2
OTHER DISCLOSURES - Remuneration To Executive Management (Details) € in Millions, kr in Millions, $ in Millions | Jan. 01, 2019 | Jul. 01, 2018 | Jan. 01, 2018 | Jul. 01, 2017 | Jan. 01, 2017 | Dec. 31, 2019EUR (€)EquityInstruments | Dec. 31, 2019USD ($)EquityInstruments | Dec. 31, 2019DKK (kr)EquityInstruments | Dec. 31, 2018DKK (kr)EquityInstruments | Dec. 31, 2017DKK (kr)EquityInstruments |
Remuneration to the Executive Management | ||||||||||
Amount received by management | kr 38 | kr 32 | kr 28 | |||||||
Extraordinary bonus percentage | 15.00% | 15.00% | 15.00% | |||||||
Cash bonus | kr 15 | kr 11 | ||||||||
Value of warrants granted based on compensation | kr 25 | |||||||||
Value of warrants portion in a total grant | 25.00% | 25.00% | 25.00% | 50.00% | ||||||
Share-based compensation expenses | kr 1 | kr 1 | kr 1 | |||||||
RSUs | ||||||||||
Remuneration to the Executive Management | ||||||||||
Granted | EquityInstruments | 116,742 | 116,742 | 116,742 | 102,639 | 65,951 | |||||
Minimum | ||||||||||
Remuneration to the Executive Management | ||||||||||
Percentage of annual cash bonus | 60.00% | 60.00% | 60.00% | |||||||
Maximum | ||||||||||
Remuneration to the Executive Management | ||||||||||
Percentage of annual cash bonus | 100.00% | 100.00% | 100.00% | |||||||
Executive Management | ||||||||||
Remuneration to the Executive Management | ||||||||||
Value of shares granted on percentage of compensation | 400.00% | 400.00% | 400.00% | 200.00% | ||||||
Share-based compensation expenses | $ 32.6 | kr 33 | kr 27.4 | kr 22.7 | ||||||
Warrants additional lock in period | 2 years | 2 years | 2 years | |||||||
Executive Management | Warrants | ||||||||||
Remuneration to the Executive Management | ||||||||||
Granted | EquityInstruments | 50,464 | |||||||||
Executive Management | RSUs | ||||||||||
Remuneration to the Executive Management | ||||||||||
Granted | EquityInstruments | 25,793 | 25,793 | 25,793 | 18,020 | 19,599 | |||||
Weighted average fair value at measurement date, other equity instruments granted | kr 42 | kr 37 | ||||||||
Executive Management | Minimum | ||||||||||
Remuneration to the Executive Management | ||||||||||
Share holding period | 5 years | 5 years | 5 years | |||||||
Executive Management | Maximum | ||||||||||
Remuneration to the Executive Management | ||||||||||
Value of shares granted on percentage of compensation | 200.00% | 200.00% | 200.00% | |||||||
Executive Management | Maximum | Foreign countries | ||||||||||
Remuneration to the Executive Management | ||||||||||
Value of shares granted on percentage of compensation | 400.00% | 400.00% | 400.00% | |||||||
CEO | ||||||||||
Remuneration to the Executive Management | ||||||||||
Percentage of increase in base salary | 3.00% | 3.00% | ||||||||
Amount received by management | € | € 0.5 | |||||||||
CFO | ||||||||||
Remuneration to the Executive Management | ||||||||||
Percentage of increase in base salary | 3.00% | 3.00% | ||||||||
Amount received by management | $ | $ 0.1 | |||||||||
CDO | ||||||||||
Remuneration to the Executive Management | ||||||||||
Percentage of increase in base salary | 10.00% | 3.00% | 3.00% |
OTHER DISCLOSURES - Shareholdin
OTHER DISCLOSURES - Shareholding Requirement For Members Of Executive Management (Details) kr in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017DKK (kr) | |
Share-Based Compensation | |||||
Share-based compensation expenses | kr 1 | kr 1 | kr 1 | ||
Total | 81 | 67 | 68 | ||
Executive Management | |||||
Share-Based Compensation | |||||
Base Salary | 15.7 | 14.6 | $ 14 | ||
Defined Contribution Plans | 1.2 | 1.5 | 1.4 | ||
Other Benefits | 4.5 | 1.8 | 7.8 | ||
Annual Cash Bonus | 14.7 | 10.6 | 10.2 | ||
Share-based compensation expenses | $ 32.6 | 33 | 27.4 | 22.7 | |
Total | 68.7 | 55.9 | 56.1 | ||
Jan van de Winkel | |||||
Share-Based Compensation | |||||
Base Salary | 7.3 | 7.1 | 6.9 | ||
Defined Contribution Plans | 1 | 1.2 | 1.1 | ||
Other Benefits | 3.6 | 0.2 | 0.2 | ||
Annual Cash Bonus | 8.4 | 6.4 | 6.2 | ||
Share-based compensation expenses | 14.9 | 13.4 | 12.6 | ||
Total | 35.2 | 28.3 | 27 | ||
David A. Eatwell | |||||
Share-Based Compensation | |||||
Base Salary | 4.3 | 3.9 | 4 | ||
Defined Contribution Plans | 0.1 | 0.2 | 0.2 | ||
Other Benefits | 0.9 | 1.4 | 1 | ||
Annual Cash Bonus | 3.2 | 2.1 | 2.1 | ||
Share-based compensation expenses | 8 | 8.1 | 7.9 | ||
Total | 16.5 | 15.7 | 15.2 | ||
Judith Klimovsky | |||||
Share-Based Compensation | |||||
Base Salary | 4.1 | 3.6 | 3.1 | ||
Defined Contribution Plans | 0.1 | 0.1 | $ 0.1 | ||
Other Benefits | 0.2 | 6.6 | |||
Annual Cash Bonus | kr 3.1 | 2.1 | 1.9 | ||
Share-based compensation expenses | 9.7 | 5.9 | 2.2 | ||
Total | $ 17 | kr 11.9 | kr 13.9 |
OTHER DISCLOSURES - Severance P
OTHER DISCLOSURES - Severance Payments (Details) kr / shares in Units, kr in Millions | Mar. 29, 2019director | Dec. 31, 2019DKK (kr)EquityInstrumentskr / sharesshares | Dec. 31, 2018DKK (kr)EquityInstrumentskr / sharesshares | Dec. 31, 2017DKK (kr)EquityInstrumentskr / sharesshares | Dec. 31, 2016EquityInstrumentsshares | Dec. 31, 2015shares | Dec. 31, 2014shares |
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Total impact on financial position on termination of services | kr | kr 46 | kr 42 | kr 40 | ||||
Granted | 307,219 | 276,507 | 182,689 | ||||
Exercised | (299,431) | (311,897) | (835,618) | (818,793) | (2,563,844) | (611,697) | |
Expired | (2,000) | (37,875) | (8,200) | ||||
Number of independent directors | director | 5 | ||||||
Number of non-independent directors | director | 1 | ||||||
Number of employee-elected directors | director | 3 | ||||||
Re-elected term | 1 year | ||||||
Employee elected board of directors term | 3 years | ||||||
RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 218,902 | 168,044 | 102,387 | ||||
Granted | EquityInstruments | 116,742 | 102,639 | 65,951 | ||||
Outstanding at end of period | EquityInstruments | 307,907 | 218,902 | 168,044 | 102,387 | |||
Board of Directors And Executive Management [Member] | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 735,312 | 676,187 | 642,012 | ||||
Acquired | 64,901 | 63,600 | 55,550 | ||||
Sold | (778) | (4,475) | |||||
Transfers | (21,375) | ||||||
Balance at end of period | 799,435 | 735,312 | 676,187 | 642,012 | |||
Market value | kr | kr 1,184.4 | kr 784.9 | kr 695.8 | ||||
Balance at beginning of period | 554,679 | 651,979 | 1,007,160 | ||||
Granted | 3,925 | 53,625 | 63,944 | ||||
Exercised | (148,150) | (150,925) | (409,125) | ||||
Transfers | (319) | (10,000) | |||||
Balance at end of period | 410,135 | 554,679 | 651,979 | 1,007,160 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 1.8 | kr 19.6 | kr 22.7 | ||||
Weighted average exercise price outstanding warrants | kr / shares | kr 503.05 | kr 397.31 | kr 300.84 | ||||
Fair value RSUs granted | kr | kr 47.6 | kr 23.8 | kr 30.1 | ||||
Board of Directors And Executive Management [Member] | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 86,279 | 108,185 | 82,946 | ||||
Granted | EquityInstruments | 29,501 | 23,244 | 27,260 | ||||
Settled | (21,711) | (45,150) | |||||
Transfers | (1,251) | (2,021) | |||||
Outstanding at end of period | EquityInstruments | 92,818 | 86,279 | 108,185 | 82,946 | |||
Board of Directors | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 42,087 | 18,687 | 37,012 | ||||
Acquired | 9,381 | 27,875 | 3,050 | ||||
Sold | (778) | (4,475) | |||||
Transfers | (21,375) | ||||||
Balance at end of period | 50,690 | 42,087 | 18,687 | 37,012 | |||
Market value | kr | kr 75.1 | kr 44.9 | kr 19.2 | ||||
Balance at beginning of period | 74,478 | 92,242 | 129,742 | ||||
Granted | 3,925 | 3,161 | 4,125 | ||||
Exercised | (15,750) | (20,925) | (31,625) | ||||
Transfers | (319) | (10,000) | |||||
Balance at end of period | 62,334 | 74,478 | 92,242 | 129,742 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 1.8 | kr 1.1 | kr 1.4 | ||||
Weighted average exercise price outstanding warrants | kr / shares | kr 487.74 | kr 348.74 | kr 289.39 | ||||
Fair value RSUs granted | kr | kr 6 | kr 5.4 | kr 8.8 | ||||
Board of Directors | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 20,127 | 24,328 | 18,688 | ||||
Granted | EquityInstruments | 3,708 | 5,224 | 7,661 | ||||
Settled | (2,631) | (9,425) | |||||
Transfers | (1,251) | (2,021) | |||||
Outstanding at end of period | EquityInstruments | 19,953 | 20,127 | 24,328 | 18,688 | |||
Mats Pettersson | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 24,800 | 10,000 | 10,000 | ||||
Acquired | 7,207 | 14,800 | |||||
Balance at end of period | 32,007 | 24,800 | 10,000 | 10,000 | |||
Market value | kr | kr 47.4 | kr 26.5 | kr 10.3 | ||||
Balance at beginning of period | 26,250 | 38,750 | 38,750 | ||||
Exercised | (6,250) | (12,500) | |||||
Balance at end of period | 20,000 | 26,250 | 38,750 | 38,750 | |||
Weighted average exercise price outstanding warrants | kr / shares | kr 225.90 | kr 207.23 | kr 187.96 | ||||
Fair value RSUs granted | kr | kr 0.8 | kr 0.8 | kr 0.8 | ||||
Mats Pettersson | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 3,298 | 4,818 | 4,043 | ||||
Granted | EquityInstruments | 495 | 780 | 775 | ||||
Settled | (957) | (2,300) | |||||
Outstanding at end of period | EquityInstruments | 2,836 | 3,298 | 4,818 | 4,043 | |||
Anders Gersel Pedersen | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 8,000 | 7,000 | 7,000 | ||||
Acquired | 718 | 5,475 | |||||
Sold | (4,475) | ||||||
Balance at end of period | 8,718 | 8,000 | 7,000 | 7,000 | |||
Market value | kr | kr 12.9 | kr 8.5 | kr 7.2 | ||||
Balance at beginning of period | 29,000 | 32,750 | 54,000 | ||||
Exercised | (9,000) | (3,750) | (21,250) | ||||
Balance at end of period | 20,000 | 29,000 | 32,750 | 54,000 | |||
Weighted average exercise price outstanding warrants | kr / shares | kr 133.16 | kr 116.83 | kr 108.80 | ||||
Fair value RSUs granted | kr | kr 0.4 | kr 0.4 | kr 0.6 | ||||
Anders Gersel Pedersen | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 2,278 | 3,613 | 3,032 | ||||
Granted | EquityInstruments | 247 | 390 | 581 | ||||
Settled | (718) | (1,725) | |||||
Outstanding at end of period | EquityInstruments | 1,807 | 2,278 | 3,613 | 3,032 | |||
Burton G. Malkiel | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 19,375 | ||||||
Acquired | 2,000 | ||||||
Transfers | (21,375) | ||||||
Balance at end of period | 19,375 | ||||||
Balance at beginning of period | 14,500 | ||||||
Exercised | (4,500) | ||||||
Transfers | (10,000) | ||||||
Balance at end of period | 14,500 | ||||||
Burton G. Malkiel | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 2,021 | ||||||
Transfers | (2,021) | ||||||
Outstanding at end of period | EquityInstruments | 2,021 | ||||||
Pernille Erenbjerg | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 2,700 | ||||||
Acquired | 478 | 2,700 | |||||
Balance at end of period | 3,178 | 2,700 | |||||
Market value | kr | kr 4.7 | kr 2.9 | |||||
Fair value RSUs granted | kr | kr 0.4 | kr 0.4 | kr 0.4 | ||||
Pernille Erenbjerg | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 1,649 | 3,959 | 3,571 | ||||
Granted | EquityInstruments | 247 | 390 | 388 | ||||
Settled | (478) | (2,700) | |||||
Outstanding at end of period | EquityInstruments | 1,418 | 1,649 | 3,959 | 3,571 | |||
Paolo Paoletti | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 3,337 | 637 | 637 | ||||
Acquired | 478 | 2,700 | |||||
Sold | (478) | ||||||
Balance at end of period | 3,337 | 3,337 | 637 | 637 | |||
Market value | kr | kr 4.9 | kr 3.6 | kr 0.6 | ||||
Fair value RSUs granted | kr | kr 0.4 | kr 0.4 | kr 0.4 | ||||
Paolo Paoletti | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 1,649 | 3,959 | 3,571 | ||||
Granted | EquityInstruments | 247 | 390 | 388 | ||||
Settled | (478) | (2,700) | |||||
Outstanding at end of period | EquityInstruments | 1,418 | 1,649 | 3,959 | 3,571 | |||
Rolf Hoffmann | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 1,050 | 1,050 | |||||
Acquired | 1,050 | ||||||
Balance at end of period | 1,050 | 1,050 | 1,050 | ||||
Market value | kr | kr 1.6 | kr 1.1 | kr 1.1 | ||||
Fair value RSUs granted | kr | kr 0.4 | kr 0.4 | kr 2 | ||||
Rolf Hoffmann | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 1,899 | 1,509 | |||||
Granted | EquityInstruments | 247 | 390 | 1,509 | ||||
Outstanding at end of period | EquityInstruments | 2,146 | 1,899 | 1,509 | ||||
Deirdre P. Connelly | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 2,200 | ||||||
Acquired | 2,200 | ||||||
Balance at end of period | 2,200 | 2,200 | |||||
Market value | kr | kr 3.3 | kr 2.3 | |||||
Fair value RSUs granted | kr | kr 0.6 | kr 0.6 | kr 2 | ||||
Deirdre P. Connelly | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 2,094 | 1,509 | |||||
Granted | EquityInstruments | 371 | 585 | 1,509 | ||||
Outstanding at end of period | EquityInstruments | 2,465 | 2,094 | 1,509 | ||||
Peter Storm Kristensen | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Acquired | 500 | ||||||
Sold | (300) | ||||||
Balance at end of period | 200 | ||||||
Market value | kr | kr 0.3 | ||||||
Balance at beginning of period | 2,515 | 2,515 | 1,917 | ||||
Granted | 368 | 598 | |||||
Exercised | (500) | ||||||
Balance at end of period | 2,383 | 2,515 | 2,515 | 1,917 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 0.2 | kr 0.2 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 928.96 | kr 663.38 | kr 663.38 | ||||
Fair value RSUs granted | kr | kr 0.6 | kr 0.4 | kr 0.6 | ||||
Employee-elected granted | 247,000 | 390,000 | 388,000 | ||||
Peter Storm Kristensen | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 1,481 | 1,091 | 508 | ||||
Granted | EquityInstruments | 351 | 390 | 583 | ||||
Outstanding at end of period | EquityInstruments | 1,832 | 1,481 | 1,091 | 508 | |||
Rick Hibbert | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 876 | 1,451 | 1,962 | ||||
Granted | 350 | 239 | |||||
Exercised | (925) | (750) | |||||
Transfers | (876) | ||||||
Balance at end of period | 876 | 1,451 | 1,962 | ||||
Black – Scholes value warrants granted in 2019 | kr | kr 0.1 | kr 0.1 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 998.81 | kr 531.65 | |||||
Fair value RSUs granted | kr | kr 0.5 | kr 0.5 | |||||
Employee-elected granted | 247,000 | 390,000 | 388,000 | ||||
Rick Hibbert | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 1,439 | 924 | 458 | ||||
Granted | EquityInstruments | 515 | 466 | |||||
Transfers | (1,439) | ||||||
Outstanding at end of period | EquityInstruments | 1,439 | 924 | 458 | ||||
Mijke Zachariasse | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Granted | 351 | ||||||
Transfers | 557 | ||||||
Balance at end of period | 908 | ||||||
Black – Scholes value warrants granted in 2019 | kr | kr 0.2 | ||||||
Weighted average exercise price outstanding warrants | kr / shares | kr 1,352.72 | ||||||
Fair value RSUs granted | kr | kr 0.6 | ||||||
Employee-elected granted | 247,000 | ||||||
Mijke Zachariasse | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Granted | EquityInstruments | 346 | ||||||
Transfers | 188 | ||||||
Outstanding at end of period | EquityInstruments | 534 | ||||||
Daniel Bruno | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 15,837 | 16,776 | 18,613 | ||||
Granted | 3,206 | 2,811 | 3,288 | ||||
Exercised | (3,750) | (5,125) | |||||
Balance at end of period | 19,043 | 15,837 | 16,776 | 18,613 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 1.4 | kr 1 | kr 1.1 | ||||
Weighted average exercise price outstanding warrants | kr / shares | kr 1,038.68 | kr 922.01 | kr 799.19 | ||||
Fair value RSUs granted | kr | kr 1.8 | kr 1.4 | kr 1.5 | ||||
Employee-elected granted | 247,000 | 390,000 | 388,000 | ||||
Daniel Bruno | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 4,340 | 2,946 | 1,484 | ||||
Granted | EquityInstruments | 1,157 | 1,394 | 1,462 | ||||
Outstanding at end of period | EquityInstruments | 5,497 | 4,340 | 2,946 | 1,484 | |||
Executive Management | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Employee notice period | 2 years | ||||||
Total impact on financial position on termination of services | kr | kr 106 | kr 98 | |||||
Balance at beginning of period | 693,225 | 657,500 | 605,000 | ||||
Acquired | 55,520 | 35,725 | 52,500 | ||||
Balance at end of period | 748,745 | 693,225 | 657,500 | 605,000 | |||
Market value | kr | kr 1,109.3 | kr 740 | kr 676.6 | ||||
Balance at beginning of period | 480,201 | 559,737 | 877,418 | ||||
Granted | 50,464 | 59,819 | |||||
Exercised | (132,400) | (130,000) | (377,500) | ||||
Balance at end of period | 347,801 | 480,201 | 559,737 | 877,418 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 18.5 | kr 21.3 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 505.80 | kr 404.84 | kr 302.73 | ||||
Fair value RSUs granted | kr | kr 41.6 | kr 18.5 | kr 21.3 | ||||
Executive Management | Maximum | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Termination compensation period due to change in control | 2 years | ||||||
Executive Management | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 66,152 | 83,857 | 64,258 | ||||
Granted | EquityInstruments | 25,793 | 18,020 | 19,599 | ||||
Settled | (19,080) | (35,725) | |||||
Outstanding at end of period | EquityInstruments | 72,865 | 66,152 | 83,857 | 64,258 | |||
Jan van de Winkel | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 662,400 | 640,000 | 602,500 | ||||
Acquired | 6,084 | 22,400 | 37,500 | ||||
Balance at end of period | 668,484 | 662,400 | 640,000 | 602,500 | |||
Market value | kr | kr 990.4 | kr 707.1 | kr 658.6 | ||||
Balance at beginning of period | 108,068 | 164,802 | 392,841 | ||||
Granted | 23,266 | 24,461 | |||||
Exercised | (42,400) | (80,000) | (252,500) | ||||
Balance at end of period | 65,668 | 108,068 | 164,802 | 392,841 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 8.5 | kr 8.2 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 1,060.39 | kr 748.36 | kr 455.68 | ||||
Fair value RSUs granted | kr | kr 24.9 | kr 8.5 | kr 8.2 | ||||
Jan van de Winkel | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 33,505 | 47,597 | 39,606 | ||||
Granted | EquityInstruments | 15,479 | 8,308 | 7,991 | ||||
Settled | (11,387) | (22,400) | |||||
Outstanding at end of period | EquityInstruments | 37,597 | 33,505 | 47,597 | 39,606 | |||
David A. Eatwell | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 30,825 | 17,500 | 2,500 | ||||
Acquired | 49,436 | 13,325 | 15,000 | ||||
Balance at end of period | 80,261 | 30,825 | 17,500 | 2,500 | |||
Market value | kr | kr 118.9 | kr 32.9 | kr 18 | ||||
Balance at beginning of period | 335,201 | 373,056 | 484,577 | ||||
Granted | 12,145 | 13,479 | |||||
Exercised | (90,000) | (50,000) | (125,000) | ||||
Balance at end of period | 245,201 | 335,201 | 373,056 | 484,577 | |||
Black – Scholes value warrants granted in 2019 | kr | kr 4.4 | kr 4.6 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 264.91 | kr 215.41 | kr 183.50 | ||||
Fair value RSUs granted | kr | kr 4.4 | kr 4.5 | |||||
David A. Eatwell | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 20,068 | 29,056 | 24,652 | ||||
Granted | EquityInstruments | 4,337 | 4,404 | |||||
Settled | (7,693) | (13,325) | |||||
Outstanding at end of period | EquityInstruments | 12,375 | 20,068 | 29,056 | 24,652 | |||
Judith Klimovsky | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Balance at beginning of period | 36,932 | 21,879 | |||||
Granted | 15,053 | 21,879 | |||||
Balance at end of period | 36,932 | 36,932 | 21,879 | ||||
Black – Scholes value warrants granted in 2019 | kr | kr 5.5 | kr 8.5 | |||||
Weighted average exercise price outstanding warrants | kr / shares | kr 1,118.99 | kr 1,118.99 | kr 1,183.65 | ||||
Fair value RSUs granted | kr | kr 16.7 | kr 5.5 | kr 8.5 | ||||
Judith Klimovsky | RSUs | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Outstanding at beginning of period | EquityInstruments | 12,579 | 7,204 | |||||
Granted | EquityInstruments | 10,314 | 5,375 | 7,204 | ||||
Outstanding at end of period | EquityInstruments | 22,893 | 12,579 | 7,204 | ||||
Executive Officer | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Employee notice period | 1 year | ||||||
Executive Officer | Minimum | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Number of period, termination severance payment | 1 year | ||||||
Executive Officer | Maximum | |||||||
Shareholdings By Board Of Directors And Executive Management [Line items] | |||||||
Number of period, termination severance payment | 2 years |
OTHER DISCLOSURES - Company Ove
OTHER DISCLOSURES - Company Overview (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Genmab B.V. | ||
Company Overview | ||
Ownership and votes (Percentage) | 100.00% | 100.00% |
Genmab Holding B.V. | ||
Company Overview | ||
Ownership and votes (Percentage) | 100.00% | 100.00% |
Genmab US, Inc. | ||
Company Overview | ||
Ownership and votes (Percentage) | 100.00% | 100.00% |
Genmab K.K. | ||
Company Overview | ||
Ownership and votes (Percentage) | 100.00% |
OTHER DISCLOSURES - Commitments
OTHER DISCLOSURES - Commitments (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments | ||
Short term contractual obligations | kr 564 | kr 787 |
Maximum due term of obligations | 2 years | |
Contingent commitments | kr 9,520 | kr 5,595 |
OTHER DISCLOSURES - Contingent
OTHER DISCLOSURES - Contingent Assets and Contingent Liabilities (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019DKK (kr)agreement | Dec. 31, 2018DKK (kr)agreement | Dec. 31, 2017DKK (kr) | |
Derivative Financial Instruments | |||
Collateral amount of derivative liabilties | kr 50 | kr 50 | |
Outstanding derivatives | 0 | ||
Cash position | 50 | 50 | |
Minimum required cash position | 258.5 | ||
Total impact on financial position on termination of services | 46 | 42 | kr 40 |
Trade Receivables | |||
Derivative Financial Instruments | |||
Outstanding derivatives | kr 0 | 0 | |
Executive Management | |||
Derivative Financial Instruments | |||
Employee notice period | 2 years | ||
Total impact on financial position on termination of services | kr 106 | 98 | |
Employees | |||
Derivative Financial Instruments | |||
Total impact on financial position on termination of services | kr 75 | kr 81 | |
Service agreements | agreement | 22 | 26 |
OTHER DISCLOSURES - Fees to Aud
OTHER DISCLOSURES - Fees to Auditors (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fees to Auditors Appointed at the Annual General Meeting | |||
Audit services | kr 1.9 | kr 1.1 | kr 1.1 |
Audit-related services | 2.3 | 0.1 | 0.4 |
Tax and VAT services | 0.5 | 0.4 | 0.7 |
Other services | 2.4 | 0.1 | |
Total | 7.1 | 1.7 | 2.2 |
Fees for other services | kr 5.2 | kr 0.6 | kr 1.1 |
OTHER DISCLOSURES - Adjustments
OTHER DISCLOSURES - Adjustments to Cash Flow Statement (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Adjustments to Cash Flow Statement | |||
Depreciation, amortization and impairment | kr 139 | kr 88 | kr 70 |
Share-based compensation expenses | 147 | 91 | 76 |
Other | 5 | ||
Total adjustments for non-cash transactions | 291 | 179 | 146 |
Receivables | (1,658) | (768) | 270 |
Deferred income | (77) | ||
Other payables | 440 | 134 | 47 |
Total changes in working capital | kr (1,218) | kr (634) | kr 240 |
OTHER DISCLOSURES - Collaborati
OTHER DISCLOSURES - Collaborations and Technology Licenses (Details) € in Millions, kr in Millions, $ in Millions | Sep. 30, 2019USD ($) | Jul. 31, 2018USD ($)property | Aug. 31, 2012 | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)Option | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019DKK (kr) | Dec. 19, 2019DKK (kr) | Jul. 31, 2018USD ($) | Jul. 31, 2018item |
Collaborations and Technology Licenses | |||||||||||
Investments accounted for using equity method | kr | kr 149 | ||||||||||
Janssen (Darzalex/Daratumumab & DuoBody) | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Tiered royalty percentage | 18.00% | 20.00% | |||||||||
Royalty obligation expiration term after first sale of product | 13 years | ||||||||||
Applicable threshold net sale for calculating royalty percentage | $ 2 | $ 3 | |||||||||
Total milestone payment | $ 1,015 | ||||||||||
Milestone payments received | $ 835 | ||||||||||
Novartis (Arzaerra/Ofatumumab) | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Royalty percentage for cancer treatment | 20.00% | ||||||||||
Royalty percentage for non-cancer treatment | 10.00% | ||||||||||
Seattle Genetics (Tisotumab vedotin) | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Cost and profit sharing ratio | 50 | ||||||||||
Cost reimbursement percentage | 50.00% | ||||||||||
CureVac | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Upfront fee payable | 10 | ||||||||||
Investments accounted for using equity method | € 20 | kr 149 | kr 149 | ||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 280 | ||||||||||
Options to obtain commercial licenses | Option | 3 | ||||||||||
Option exercisable period | 5 years | ||||||||||
Immatics | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Development regulatory and commercial milestone payments to be made | $ 550 | ||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ 550 | ||||||||||
Number of proprietary targets of license | 3 | 3 | |||||||||
Number of additional proprietary targets of license | item | 2 | ||||||||||
Upfront fee paid | $ 54 | ||||||||||
Minimum | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 275 | ||||||||||
Minimum | Janssen (Darzalex/Daratumumab & DuoBody) | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Tiered royalty percentage | 12.00% | ||||||||||
Minimum | CureVac | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 275 | ||||||||||
Maximum | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | 368 | ||||||||||
Maximum | Janssen (Darzalex/Daratumumab & DuoBody) | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Tiered royalty percentage | 20.00% | ||||||||||
Milestone payments receivable | 180 | ||||||||||
Maximum | CureVac | |||||||||||
Collaborations and Technology Licenses | |||||||||||
Collaborative arrangement, Development, Regulatory and commercial milestone payment | $ 368 |