Ascendis Pharma A/S (ASND) 6-K 19 May 20 2020 Q1 Current report (foreign) Financial data

Cover Page

Cover Page	3 Months Ended
	Mar. 31, 2020
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	Ascendis Pharma A/S
Entity Central Index Key	0001612042
Current Fiscal Year End Date	--12-31

Condensed Consolidated Interim

Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income / (Loss) - EUR (€) € in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Profit or loss [abstract]
Revenue		€ 2,225	€ 5,414
Research and development costs		(57,515)	(51,259)
General and administrative expenses		(17,915)	(10,436)
Operating profit / (loss)		(73,205)	(56,281)
Share of profit / (loss) of associate		(1,515)	(1,852)
Finance income		11,773	4,620
Finance expenses		(447)	(194)
Profit / (loss) before tax		(63,394)	(53,707)
Tax on profit / (loss) for the period		77	70
Net profit / (loss) for the period		(63,317)	(53,637)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations		86	559
Other comprehensive income / (loss) for the period, net of tax		86	559
Total comprehensive income / (loss) for the period, net of tax		(63,231)	(53,078)
Profit / (loss) for the period attributable to owners of the Company		(63,317)	(53,637)
Total comprehensive income / (loss) for the period attributable to owners of the Company		€ (63,231)	€ (53,078)
Basic and diluted earnings / (loss) per share		€ (1.32)	€ (1.24)
Number of shares used for calculation (basic and diluted)	[1]	47,985,837	43,371,559
[1]	A total of 5,941,364 warrants outstanding as of March 31, 2020 can potentially dilute earnings per share in the future but have not been included in the calculation of diluted earnings per share because they are antidilutive for the period presented. Similarly, a total of 5,650,777 warrants outstanding as of March 31, 2019 are also considered antidilutive for the period presented and have not been included in the calculation.

Condensed Consolidated Interi_2

Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income / (Loss) (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrants [member]
Statement [LineItems]
Warrants outstanding	5,941,364	5,650,777

Condensed Consolidated Interi_3

Condensed Consolidated Interim Statements of Financial Position - EUR (€) € in Thousands	Mar. 31, 2020	Dec. 31, 2019
Non-current assets
Intangible assets	€ 3,495	€ 3,495
Property, plant and equipment	49,761	45,069
Investment in associate	15,307	15,538
Deposits	1,270	1,463
Total non-current assets	69,833	65,565
Current assets
Receivable from associate	1,312	804
Other receivables	4,775	3,136
Prepayments	10,185	7,648
Income taxes receivable	921	1,473
Cash and cash equivalents	534,381	598,106
Total current assets	551,574	611,167
Total assets	621,407	676,732
Equity
Share capital	6,443	6,443
Distributable equity	542,389	590,671
Total equity	548,832	597,114
Non-current liabilities
Lease liabilities	30,760	30,720
Other payables		908
Total non-current liabilities	30,760	31,628
Current liabilities
Lease liabilities	6,307	5,899
Contract liabilities	343	858
Trade payables	27,277	27,765
Other payables	7,679	13,349
Income taxes payable	209	119
Total current liabilities	41,815	47,990
Total liabilities	72,575	79,618
Total equity and liabilities	€ 621,407	€ 676,732

Condensed Consolidated Interi_4

Condensed Consolidated Interim Statements of Changes in Equity - EUR (€) € in Thousands	Total	Issued Capital [member]	Share Premium [member]	Foreign Currency Translation Reserve [member]	Share-based Payment Reserve [member]	Accumulated Deficit [member]
Equity at Dec. 31, 2018	€ 280,050	€ 5,659	€ 625,250	€ 3	€ 42,445	€ (393,307)
Statement [LineItems]
Loss for the period	(53,637)					(53,637)
Other comprehensive income / (loss), net of tax	559			559
Total comprehensive income / (loss) for the period, net of tax	(53,078)			559		(53,637)
Share-based payment (Note 7)	9,435				9,435
Capital increase	511,955	642	511,313
Cost of capital increase	(31,701)		(31,701)
Equity at Mar. 31, 2019	716,661	6,301	1,104,862	562	51,880	(446,944)
Equity at Dec. 31, 2019	597,114	6,443	1,122,097	(34)	79,931	(611,323)
Statement [LineItems]
Loss for the period	(63,317)					(63,317)
Other comprehensive income / (loss), net of tax	86			86
Total comprehensive income / (loss) for the period, net of tax	(63,231)			86		(63,317)
Share-based payment (Note 7)	14,949				14,949
Equity at Mar. 31, 2020	€ 548,832	€ 6,443	€ 1,122,097	€ 52	€ 94,880	€ (674,640)

Condensed Consolidated Interi_5

Condensed Consolidated Interim Cash Flow Statements - EUR (€) € in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities
Net profit / (loss) for the period	€ (63,317)	€ (53,637)
Reversal of non-cash consideration relating to revenue	(1,202)	(1,581)
Reversal of share of profit/(loss) of associate	1,515	1,852
Reversal of finance income	(11,773)	(4,620)
Reversal of finance expenses	447	194
Reversal of tax charge	(77)	(70)
Adjustments for:
Share-based payment	14,949	9,435
Depreciation	1,993	1,296
Changes in working capital:
Receivables	797	(5,195)
Prepayments	(2,537)	1,133
Contract liabilities (deferred income)	(515)	(3,829)
Trade payables and other payables	(8,872)	(7,324)
Cash flows generated from / (used in) operations	(68,592)	(62,346)
Finance income received	1,455	1,555
Finance expenses paid	(367)	(57)
Income taxes received / (paid)	718	(13)
Cash flows from / (used in) operating activities	(66,786)	(60,861)
Investing activities
Acquisition of property, plant and equipment	(6,141)	(2,469)
Cash flows from / (used in) investing activities	(6,141)	(2,469)
Financing activities
Payment of finance lease liabilities	(1,117)	(1,188)
Capital increase		511,955
Cost of capital increase		(31,701)
Cash flows from / (used in) financing activities	(1,117)	479,066
Increase / (decrease) in cash and cash equivalents	(74,044)	415,736
Cash and cash equivalents at January 1	598,106	277,862
Effect of exchange rate changes on balances held in foreign currencies	10,319	3,066
Cash and cash equivalents at March 31	534,381	696,664
Bank deposits	216,925	696,664
Short-term marketable securities	317,456
Cash and cash equivalents at March 31	€ 534,381	€ 696,664

General Information

General Information	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
General Information	Note 1—General Information Ascendis Pharma A/S, together with its subsidiaries, is a biopharmaceutical company applying its innovative TransCon technologies to build a leading, fully integrated biopharmaceutical company. Ascendis Pharma A/S was incorporated in 2006 and is headquartered in Hellerup, Denmark. Unless the context otherwise requires, references to the “Company,” “we,” “us” and “our” refer to Ascendis Pharma A/S and its subsidiaries. The address of the Company’s registered office is Tuborg Boulevard 12, DK-2900, On February 2, 2015, the Company completed an initial public offering which resulted in the listing of American Depositary Shares, or ADSs, representing the Company’s ordinary shares, under the symbol “ASND” in the United States on The Nasdaq Global Select Market. The Company’s Board of Directors approved these unaudited condensed consolidated interim financial statements on May 19, 2020.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Summary of Significant Accounting Policies	Note 2—Summary of Significant Accounting Policies Basis of Preparation The unaudited condensed consolidated interim financial statements of the Company are prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting . The accounting policies applied are consistent with those of the previous financial year. Our accounting policies for marketable securities included within cash and cash equivalents, applied for the first time in this reporting period, are described below. A description of our accounting policies is provided in the Accounting Policies section of the audited consolidated financial statements as of and for the year ended December 31, 2019. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the unaudited condensed consolidated interim financial statements are disclosed in Note 3. Cash and Cash Equivalents Marketable Securities with Short-Term Maturity In order to mitigate concentration of credit risks, the Company’s business model comprise objectives to hold marketable securities in order to collect contractual cash-flows. Marketable securities comprise investments in government bonds and similar securities (“securities” or “instruments”). Contractual terms of the individual securities give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the SPPI-test and is performed at an instrument level. At March 31, 2020, the Company held short-term marketable securities with a maturity of three months or less on the date of acquisition, that are presented as cash and cash equivalents in the unaudited consolidated interim statements of financial position. Marketable securities are initially recognized at fair value and subsequently measured at amortized cost and are subject to impairment according to expected credit loss. Gains and losses are recognized in the consolidated statement of profit or loss when the specific security or portfolio of securities is derecognized, modified or impaired. New and Amended IFRS Standards Adopted by the Company Several new amendments and interpretations became applicable for the current reporting period, but do not have an impact on the accounting policies applied by the Company.

Critical Accounting Judgments a

Critical Accounting Judgments and Key Sources of Estimation Uncertainty	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Critical Accounting Judgments and Key Sources of Estimation Uncertainty	Note 3—Critical Accounting Judgments and Key Sources of Estimation Uncertainty In the application of our accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Critical judgments made in the process of applying our accounting policies and that have the most significant effect on the amounts recognized in our unaudited condensed consolidated interim financial statements relate to revenue recognition, share-based payment, internally generated intangible assets, and to our collaboration agreements. The key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, primarily relate to recognition of accruals for manufacturing and clinical trial activities. No significant adjustments to accruals have been recognized during the first three months of 2020 or 2019, due to conditions that existed at December 31, 2019, or 2018, respectively. Additionally, there have been no changes to the application of significant accounting estimates, and no impairment losses have been recognized during the first three months of 2020 or 2019. The unaudited condensed consolidated interim financial statements do not include all disclosures for critical accounting estimates and judgments that are required in the annual consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2019.

Significant Events In The Repor

Significant Events In The Reporting Period	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Significant Events In The Reporting Period [Text Block]	Note 4—Significant Events in the Reporting Period As reported in the Company’s Annual Report on Form 20-F, as of and for the year ended December 31, 2019, a novel strain of coronavirus, (“COVID-19”), COVID-19 The COVID-19 To minimize the risk of spread of the COVID-19, face-to-face COVID-19, However, while the global outbreak of COVID-19 COVID-19 COVID-19

Revenue

Revenue	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Revenue	Note 5—Revenue Revenue has been recognized in the consolidated statements of profit or loss with the following amounts: Three Months Ended March 31, 2020 2019 (EUR’000) Revenue from the rendering of services (recognized over time) 1,312 5,414 Sale of clinical supply (recognized at a point in time) 246 — “Right-to-use” 667 — Total revenue (1) 2,225 5,414 Revenue from external customers (geographical) North America 667 5,414 China 1,558 — Total revenue 2,225 5,414 (1) For the three months ended March 31, 2020 and March 31, 2019, “Total revenue” includes recognition of previously deferred revenue/internal profit from associate of €1,202 thousand and €1,581 thousand, respectively.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Segment Information	Note 6—Segment Information We are managed and operated as one business unit. No separate business areas or separate business units have been identified in relation to product candidates or geographical markets. Accordingly, we do not disclose information on business segments or geographical markets.

Warrants and Share-based Paymen

Warrants and Share-based Payment	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Warrants and Share-based Payment	Note 7—Warrants and Share-based Payment Share-based Payment Ascendis Pharma A/S has established warrant programs, equity-settled share-based payment transactions, as an incentive for all its employees, members of its Board of Directors and select external consultants. Warrants are granted by the Company’s Board of Directors in accordance with authorizations given to it by the shareholders of the Company. As of March 31, 2020, 9,568,987 warrants had been granted, of which 19,580 warrants have been cancelled, 3,271,250 warrants have been exercised, 2,168 warrants have expired without being exercised, and 334,625 warrants have been forfeited. As of March 31, 2020, the Company’s Board of Directors was authorized to grant up to 1,047,325 additional warrants to employees, board members and select consultants without pre-emptive Warrant Activity The following table specifies the warrant activity during the three months ended March 31, 2020: Total Warrants Weighted Average Exercise Price EUR Outstanding at January 1, 2020 5,820,211 46.36 Granted during the period 190,200 121.45 Exercised during the period — — Forfeited during the period (69,047 ) 40.55 Expired during the period — — Outstanding at March 31, 2020 5,941.364 48.83 Vested at the balance sheet date 3,010,538 28.04 Warrant Compensation Costs Warrant compensation costs are determined with basis in the grant date fair value of the warrants granted and recognized over the vesting period. Three M March 31, 2020 2019 (EUR’000) Research and development costs 8,890 4,934 General and administrative expenses 6,059 4,501 Total warrant compensation costs 14,949 9,435

Share Capital

Share Capital	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Share Capital	Note 8—Share Capital The share capital of Ascendis Pharma A/S consists of 47,985,837 outst anding

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Subsequent Events	Note 9—Subsequent Events No events have occurred after the balance sheet date that would have a significant impact on the results or financial position of the Company.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Basis of Preparation	Basis of Preparation The unaudited condensed consolidated interim financial statements of the Company are prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting . The accounting policies applied are consistent with those of the previous financial year. Our accounting policies for marketable securities included within cash and cash equivalents, applied for the first time in this reporting period, are described below. A description of our accounting policies is provided in the Accounting Policies section of the audited consolidated financial statements as of and for the year ended December 31, 2019. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the unaudited condensed consolidated interim financial statements are disclosed in Note 3.
Cash and Cash Equivalents	Cash and Cash Equivalents Marketable Securities with Short-Term Maturity In order to mitigate concentration of credit risks, the Company’s business model comprise objectives to hold marketable securities in order to collect contractual cash-flows. Marketable securities comprise investments in government bonds and similar securities (“securities” or “instruments”). Contractual terms of the individual securities give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the SPPI-test and is performed at an instrument level. At March 31, 2020, the Company held short-term marketable securities with a maturity of three months or less on the date of acquisition, that are presented as cash and cash equivalents in the unaudited consolidated interim statements of financial position. Marketable securities are initially recognized at fair value and subsequently measured at amortized cost and are subject to impairment according to expected credit loss. Gains and losses are recognized in the consolidated statement of profit or loss when the specific security or portfolio of securities is derecognized, modified or impaired.
New and Amended IFRS Standards Adopted by the Company	New and Amended IFRS Standards Adopted by the Company Several new amendments and interpretations became applicable for the current reporting period, but do not have an impact on the accounting policies applied by the Company.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2020
Text block [abstract]
Schedule of Revenue Recognized in the Statement of Profit or Loss	Revenue has been recognized in the consolidated statements of profit or loss with the following amounts: Three Months Ended March 31, 2020 2019 (EUR’000) Revenue from the rendering of services (recognized over time) 1,312 5,414 Sale of clinical supply (recognized at a point in time) 246 — “Right-to-use” 667 — Total revenue (1) 2,225 5,414 Revenue from external customers (geographical) North America 667 5,414 China 1,558 — Total revenue 2,225 5,414 (1) For the three months ended March 31, 2020 and March 31, 2019, “Total revenue” includes recognition of previously deferred revenue/internal profit from associate of €1,202 thousand and €1,581 thousand, respectively.

Warrants and Share-based Paym_2

Warrants and Share-based Payment (Tables)	3 Months Ended
	Mar. 31, 2020
Statement [LineItems]
Summary of Warrant Compensation Cost	Warrant compensation costs are determined with basis in the grant date fair value of the warrants granted and recognized over the vesting period. Three M March 31, 2020 2019 (EUR’000) Research and development costs 8,890 4,934 General and administrative expenses 6,059 4,501 Total warrant compensation costs 14,949 9,435
Warrants [member]
Statement [LineItems]
Summary of Warrant Activity	The following table specifies the warrant activity during the three months ended March 31, 2020: Total Warrants Weighted Average Exercise Price EUR Outstanding at January 1, 2020 5,820,211 46.36 Granted during the period 190,200 121.45 Exercised during the period — — Forfeited during the period (69,047 ) 40.55 Expired during the period — — Outstanding at March 31, 2020 5,941.364 48.83 Vested at the balance sheet date 3,010,538 28.04

Critical Accounting Judgments_2

Critical Accounting Judgments and Key Sources of Estimation Uncertainty - Additional Information (Detail) - EUR (€)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure of changes in accounting estimates [line items]
Impairment loss	€ 0	€ 0

Revenue - Schedule of Revenue R

Revenue - Schedule of Revenue Recognized in Statements of Profit or Loss (Detail) - EUR (€) € in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure of operating segments [line items]
Revenue from the rendering of services (recognized over time)	€ 1,312	€ 5,414
Sale of clinical supply (recognized at a point in time)	246
"Right-to-use" licenses (recognized at a point in time)	667
Total revenue	2,225	5,414
Revenue from external customers (geographical)
Total revenue	2,225	5,414
North America [member]
Disclosure of operating segments [line items]
Total revenue	667	5,414
Revenue from external customers (geographical)
Total revenue	667	€ 5,414
China [member]
Disclosure of operating segments [line items]
Total revenue	1,558
Revenue from external customers (geographical)
Total revenue	€ 1,558

Revenue - Schedule of Revenue_2

Revenue - Schedule of Revenue Recognized in Statements of Profit or Loss (Parenthetical) (Detail) - EUR (€) € in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue [abstract]
Deferred revenue from associate	€ 1,202	€ 1,581

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020Segment
Disclosure of operating segments [abstract]
Number of reportable segment	1

Warrants and Share-based Paym_3

Warrants and Share-based Payment - Warrant Activity - Additional Information (Detail) - 3 months ended Mar. 31, 2020	kr / sharesshares	€ / sharesshares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share nominal value | kr / shares	kr 1
Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Aggregate number of other equity instruments granted	9,568,987
Aggregate number of other equity instruments cancelled | shares	19,580	19,580
Aggregate number of other equity instruments exercised	3,271,250
Aggregate number of other equity instruments expired	2,168
Aggregate number of other equity instruments forfeited	334,625
Number of other equity instruments authorized	1,047,325	1,047,325
Share nominal value | kr / shares	kr 1
Warrants [member] | Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price of outstanding share options | € / shares		€ 6.48
Warrants [member] | Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price of outstanding share options | € / shares		€ 130.96

Warrants and Share-based Paym_4

Warrants and Share-based Payment - Schedule of Warrant Activity (Detail) - Warrants [member]	3 Months Ended
	Mar. 31, 2020€ / shares
Disclosure Of Warrant Activity [line items]
Beginning balance	5,820,211
Granted during the period	190,200
Exercised during the period	0
Forfeited during the period	(69,047)
Expired during the period	0
Ending balance	5,941.364
Vested at the balance sheet date	3,010,538
Beginning balance	€ 46.36
Granted during the period	121.45
Exercised during the period	0
Forfeited during the period	40.55
Expired during the period	0
Ending balance	48.83
Vested at the balance sheet date	€ 28.04

Warrants and Share-based Paym_5

Warrants and Share-based Payment - Summary of Warrant Compensation Cost (Detail) - Warrants [member] - EUR (€) € in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	€ 14,949	€ 9,435
Research and development cost [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	8,890	4,934
General and administrative expense [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	€ 6,059	€ 4,501

Share Capital - Additional Info

Share Capital - Additional Information (Detail)	Mar. 31, 2020kr / sharesshares
Disclosure of classes of share capital [line items]
Share nominal value | kr / shares	kr 1
Number of shares outstanding | shares	47,985,837