Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018 | |
Document and Entity Information | |
Entity Registrant Name | Zealand Pharma A/S |
Entity Central Index Key | 1,674,988 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Consolidated income statements
Consolidated income statements - DKK (kr) kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Dec. 31, 2015 | |
Consolidated income statements | ||||||
Revenue | kr 37,977 | kr 136,322 | kr 230,864 | kr 182,573 | ||
Royalty expenses | (3,356) | (14,163) | (30,931) | (21,578) | ||
Research and development expenses | (438,215) | (324,667) | (268,159) | (217,741) | ||
Administrative expenses | (43,542) | (47,470) | (52,503) | (41,824) | ||
Other operating income | 1,099,526 | 607 | 1,697 | 12,828 | ||
Operating result | 652,390 | (249,371) | (119,032) | (85,742) | ||
Financial income | 9,988 | 2,122 | 592 | 3,889 | ||
Financial expenses | (37,322) | (33,509) | (44,356) | (42,394) | ||
Result before tax | 625,056 | (280,758) | (162,796) | (124,247) | ||
Income tax | (43,774) | 5,500 | 5,500 | 5,875 | ||
Net result for the year | kr 581,282 | kr (275,258) | kr (157,296) | kr (118,372) | ||
Earnings/loss per share - DKK | ||||||
Basic earnings/loss per share | kr 18.94 | kr (9.88) | kr (6.47) | kr (5.13) | ||
Diluted earnings/loss per share | kr 18.94 | kr (9.88) | kr (6.47) | kr (5.13) | ||
[1] | See note 1 to the consolidated financial statements. |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - DKK (kr) kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Dec. 31, 2015 | |
Consolidated statements of comprehensive income (loss) | ||||||
Net result for the year | kr 581,282 | kr (275,258) | kr (157,296) | kr (118,372) | ||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Comprehensive result for the year | kr 581,282 | kr (275,258) | kr (157,296) | kr (118,372) | ||
[1] | See note 1 to the consolidated financial statements. |
Consolidated statements of fina
Consolidated statements of financial position $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017DKK (kr) | [1] | Dec. 31, 2016DKK (kr) | Dec. 31, 2015DKK (kr) | Dec. 31, 2014DKK (kr) | ||
Non-current assets | ||||||||||
Plant and machinery | kr 13,650,000 | kr 14,855,000 | kr 12,081,000 | kr 14,672,000 | ||||||
Other fixtures and fittings, tools and equipment | 1,794,000 | 953,000 | 1,154,000 | 1,153,000 | ||||||
Leasehold improvements | 186,000 | 304,000 | 408,000 | 628,000 | ||||||
Deposits | 2,762,000 | 2,729,000 | 2,690,000 | 2,666,000 | ||||||
Restricted cash | 0 | 5,892,000 | 305,120,000 | |||||||
Other investments | $ 5 | 32,582,000 | $ 1.5 | 9,312,000 | ||||||
Total non-current assets | 50,974,000 | 34,045,000 | 321,453,000 | 19,119,000 | ||||||
Current assets | ||||||||||
Trade receivables | 3,274,000 | 5,679,000 | 0 | 149,571,000 | ||||||
Prepaid expenses | 11,740,000 | 7,253,000 | 13,837,000 | 2,430,000 | ||||||
Income tax receivable | 1,195,000 | 5,500,000 | 5,500,000 | 5,875,000 | ||||||
Other receivables | 3,368,000 | 4,979,000 | 5,379,000 | 10,427,000 | ||||||
Securities | 298,611,000 | 75,111,000 | ||||||||
Cash and cash equivalents | 860,635,000 | 588,718,000 | 323,330,000 | [1] | 418,796,000 | [1] | ||||
Total current assets | 1,178,823,000 | 687,240,000 | 361,663,000 | 608,502,000 | ||||||
Total assets | 1,229,797,000 | 721,285,000 | 683,116,000 | 627,621,000 | ||||||
Liabilities and equity | ||||||||||
Share capital | 30,786,827 | 30,751,327 | 26,142,365 | 24,352,769 | kr 23,193,047 | |||||
Share premium | 1,979,493,000 | 1,959,199,000 | 1,441,263,000 | 1,263,179,000 | ||||||
Retained loss | (893,999,000) | (1,475,281,000) | (1,200,024,000) | (1,042,729,000) | ||||||
Equity | 1,116,281,000 | 514,669,000 | 267,381,000 | 244,803,000 | ||||||
Royalty bond | 0 | 132,986,000 | 328,878,000 | 312,951,000 | ||||||
Non-current liabilities | 0 | 132,986,000 | 328,878,000 | 312,951,000 | ||||||
Trade payables | 32,652,000 | 29,428,000 | 19,739,000 | 21,676,000 | ||||||
Royalty bond | 0 | 2,748,000 | 3,365,000 | |||||||
Other liabilities | 80,864,000 | 41,454,000 | 63,753,000 | 48,191,000 | ||||||
Current liabilities | 113,516,000 | 73,630,000 | 86,857,000 | 69,867,000 | ||||||
Total liabilities | 113,516,000 | 206,616,000 | 415,735,000 | 382,818,000 | ||||||
Total equity and liabilities | kr 1,229,797,000 | kr 721,285,000 | kr 683,116,000 | kr 627,621,000 | ||||||
[1] | See note 1 to the consolidated financial statements. |
Consolidated statements of cash
Consolidated statements of cash flows kr in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | ||||
Consolidated statements of cash flows | ||||||
Net result for the year | kr 581,282 | kr (275,258) | [1] | kr (157,296) | [1] | |
Adjustments for non-cash items | 101,926 | 25,379 | [1] | 57,685 | [1] | |
Change in working capital | 12,785 | (11,304) | [1] | 156,838 | [1] | |
Financial income received | 5,283 | 2,048 | [1] | 592 | [1] | |
Financial expenses paid | (16,705) | (25,111) | [1] | (22,790) | [1] | |
Sale of future royalties and milestones | (1,105,471) | 0 | [1] | 0 | [1] | |
Income tax receipt | 5,500 | 5,500 | [1] | 5,875 | [1] | |
Income tax paid | (45,000) | 0 | [1] | 0 | [1] | |
Cash (outflow)/inflow from operating activities | (460,400) | (278,746) | [1] | 40,904 | [1] | |
Transfer to restricted cash related to the royalty bond | 0 | (60,675) | [1] | (305,120) | [1] | |
Transfer from restricted cash related to the royalty bond | 6,124 | 365,795 | [1] | 0 | [1] | |
Transfer from restricted cash for royalty bond interest payments | 0 | 7,725 | [1] | 7,786 | [1] | |
Sale of future royalties and milestones | 1,275,802 | 0 | [1] | 0 | [1] | |
Royalty expenses regarding sale of future royalties and milestones | (170,331) | 0 | [1] | 0 | [1] | |
Change in deposit | (33) | (39) | [1] | (24) | [1] | |
Purchase of other investments | 0 | (9,312) | [1] | 0 | [1] | |
Purchase of securities | (299,849) | (75,037) | [1] | 0 | [1] | |
Sale of securities | 74,230 | 0 | [1] | 0 | [1] | |
Purchase of property, plant and equipment | (4,038) | (7,226) | [1] | (2,600) | [1] | |
Sale of fixed assets | 0 | 120 | [1] | 0 | [1] | |
Cash (outflow)/inflow from investing activities | 881,905 | 221,351 | [1] | (299,958) | [1] | |
Proceeds from issuance of shares related to exercise of warrants | 2,862 | 6,790 | [1] | 21,935 | [1] | |
Proceeds from initial public offering | 0 | 567,076 | [1] | 0 | [1] | |
Costs related to initial public offering | 0 | (59,576) | [1] | 0 | [1] | |
Proceeds from private placement of new shares | 0 | 0 | [1] | 143,072 | [1] | |
Costs related to private placement of new shares | 0 | 0 | [1] | (7,861) | [1] | |
Repayment of royalty bond | (158,311) | (176,360) | [1] | 0 | [1] | |
Cash (outflow)/inflow from financing activities | (155,449) | 337,930 | [1] | 157,146 | [1] | |
Increase/(Decrease) in cash and cash equivalents | 266,056 | 280,535 | [1] | (101,908) | [1] | |
Cash and cash equivalents at the beginning of the year | [1] | 588,718 | 323,330 | 418,796 | ||
Exchange rate adjustments | 5,861 | (15,147) | [1] | 6,442 | [1] | |
Cash and cash equivalents at the end of the year | kr 860,635 | kr 588,718 | [1] | kr 323,330 | [1] | |
[1] | See note 1 to the consolidated financial statements. |
Consolidated statements of chan
Consolidated statements of changes in equity - DKK (kr) kr in Thousands | Share capital | Share premium | Retained loss (Restated) | Total | ||
Equity at beginning of period (As originally reported) at Dec. 31, 2015 | kr 24,353 | kr 1,263,179 | kr (1,035,301) | kr 252,231 | ||
Equity at beginning of period at Dec. 31, 2015 | 244,803 | |||||
Restatement1 | [1] | 0 | 0 | (7,427) | (7,427) | |
Net result for the year | As originally reported | (153,910) | |||||
Net result for the year | 0 | 0 | (157,296) | (157,296) | [1] | |
Warrant compensation expenses | 0 | 22,727 | 0 | 22,727 | ||
Capital increases | 1,789 | 163,218 | 0 | 165,007 | ||
Costs related to capital increases | 0 | (7,861) | 0 | (7,861) | ||
Equity at end of period (As originally reported) at Dec. 31, 2016 | 26,142 | 1,441,263 | (1,189,211) | 278,194 | ||
Equity at end of period at Dec. 31, 2016 | 26,142 | 1,441,263 | (1,200,024) | 267,381 | ||
Restatement1 | [1] | (10,812) | (10,812) | |||
Net result for the year | As originally reported | (272,271) | |||||
Net result for the year | 0 | 0 | (275,258) | (275,258) | [1] | |
Warrant compensation expenses | 0 | 20,156 | 0 | 20,156 | ||
Capital increases | 4,609 | 569,041 | 0 | 573,650 | ||
Costs related to capital increases | 0 | (71,261) | 0 | (71,261) | ||
Equity at end of period (As originally reported) at Dec. 31, 2017 | 528,468 | |||||
Equity at end of period at Dec. 31, 2017 | 30,751 | 1,959,199 | (1,475,281) | 514,669 | [1] | |
Net result for the year | 0 | 0 | 581,282 | 581,282 | ||
Warrant compensation expenses | 0 | 17,468 | 0 | 17,468 | ||
Capital increases | 36 | 2,826 | 0 | 2,862 | ||
Equity at end of period at Dec. 31, 2018 | kr 30,787 | kr 1,979,493 | kr (893,999) | kr 1,116,281 | ||
[1] | See note 1 to the consolidated financial statements. |
Business overview
Business overview | 12 Months Ended |
Dec. 31, 2018 | |
Business overview | |
Business overview | Business overview Zealand (the “Company”, the “Group”, “Zealand” and “we”) was founded in 1998 and is a biotechnology company focused on the discovery and development of innovative pep- tide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market. Zealand’s current pipeline of internal product candidates focus on specialty gastrointestinal and metabolic diseases. Zealand’s portfolio also includes two clinical license collaborations with Boehringer Ingel- heim. We have since 2003 had a license collaboration with Sanofi in the diabetes field. On September 6, 2018 we entred into an agreement with Royalty Pharma to transfer all the royalties that we were due to earn from our agreement with Sanofi in exchange for an upfront one- time payment of USD 205 million. Excluded from this agreement was a potential milestone payment from Sanofi of up to USD 15 million. Please refer to note 7. We have four fully owned programs in late clinical development: 1 Glepaglutide, a long-acting GLP-2 analog in development for the treatment of short bowel syndrome (SBS). The pivotal Phase 3 trial in 129 patients was initiated in Q4 2018 with expected results by mid-2020. Dasiglucagon, a Zealand-invented proprietary glucagon analog currently in development for three different indications: 2 Dasiglucagon in Dual-hormone pump therapy for diabetes treatment Zealand has already reported positive results from two Phase 2a trials during the second quarter of 2017, and the initiation of a small Phase 2b trial in iLet ™ dual-hormone artificial pancreas system is planned for 2019. 3 Dasiglucagon Hypoplal ® Rescue Pen for severe hypoglycemia Ready-to-use dasiglucagon may offer diabetes patients and their families a fast treatment solution for severe hypoglycemia that is easier to use than currently marketed glucagon kits. The pivotal Phase 3 trial with dasiglucagon for the treatment of severe hypoglycemia was completed with good results in 2018. A peadiatric Phase 3 trial was initiated in by end 2018, with results expected in H2 2019. 4 Dasiglucagon for Congenital hyperinsulinism Congenital hyperinsulinism, or CHI, is an ultra-rare but devastating disease caused by inappropriately elevated insulin secretion irrespective of glucose levels. This leads to frequent and often severe hypoglycemia and long-term irreversible damage to health. In 2017, the FDA in the U.S. and the Committee for Orphan Medicinal Products in the EU issued a positive opinion on an orphan medicinal product application for Zealand’s glucagon analog. In January 2018, the FDA issued a safe-to-proceed letter, and the Phase 3 program started in Q1 2019. In addition to the late stage clinical programs we also have a pipeline of pre-clinical programs with the potential to enter into the clinic in 2019 and the years to come. Company summary Domicile Ownership Voting rights Zealand Pharma A/S subsidiaries ZP Holding SPV K/S Denmark 100 % 100 % ZP General Partner 1 ApS Denmark 100 % 100 % Zealand Pharma US Inc. United States 100 % 100 % ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S Denmark 100 % 100 % ZP General Partner 2 ApS Denmark 100 % 100 % |
Significant accounting policies
Significant accounting policies, and significant accounting estimates and assessments | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies, and significant accounting estimates and assessments | |
Significant accounting policies, and significant accounting estimates and assessments | Note 1 – Significant accounting policies, and significant accounting estimates and assessments Significant accounting policies Basis of preparation The consolidated financial statements of Zealand have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the EU and additional requirements under the Danish Financial Statements Act. The Board of Directors considered and approved the 2018 Annual Report of Zealand on March 7, 2019. The Annual Report will be submitted to the shareholders of Zealand for approval at the Annual General Meeting on April 4, 2019. The consolidated financial statements are presented on a historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and on the significance of the inputs to the fair value measurement as a whole. The inputs are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly · Level 3 inputs are fair value measures derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Company. In the narrative sections of the financial statements, comparative figures for 2017 and 2016 are shown in brackets. Implementation of new and revised standards and interpretations The IASB has issued the following new standards and revisions to existing standards and new interpretations that are mandatory for accounting periods commencing on or after January 1, 2018: IFRS 9 Financial instruments. The Group’s implementation of IFRS 9 ‘Financial Instruments’, that replaces IAS 39 ‘Financial Instruments: Recognition and Measurement’, comprises amendments to the measurement categories for financial assets. These amendments have not resulted in any changes to the measurement basis for financial assets. Further, it has lead to the implementation of a new impairment model that requires the recognition of impairment provisions based on the “expected credit loss model” rather than the “incurred-loss model.” The majority of Zealand’s receivables are receivables from sales with its strategic partners, Boehringer Ingelheim and Sanofi, and due to the low credit risk in the Group, the new rules have not had a significant impact on the valuation of trade receivables. In the annual report for 2017, Management indicated an expected increase of DKK 5 million to financial liabilities due to the revised guidance regarding modification of financial liabilities introduced by IFRS 9 Financial Instruments’. Based on further analyses, Management has concluded that the current accounting treatment is in line with IFRS 9 ‘, hence no impact is recognized as the cost of the amendment to the royalty bond from March 2017 is considered transaction costs, which are deducted in financial liabilities. IFRS 15 Revenue from Contracts with Customers. The Group has implemented IFRS 15 ‘Revenue from Contracts with Customers’ using the modified retrospective approach. IFRS 15 re- places the current standards on revenue (IAS 11 ‘Construction Contracts’ and IAS 18 ‘Revenue’). In 2003, Zealand Pharma entered into a licensing agreement with Sanofi under which Zealand Pharma was entitled to milestone payments and sales based royalty payments. Refer to note 2 for further disclosure about the arrangement. Although the arrangement provided Sanofi with all rights related to the use of the underlying IP, Management has concluded that the license guidance of IFRS 15 applies to the arrangement. Therefore, sales based royalties has continued to be recognized along with the underlying sale and milestone payment have not been recognized until the milestone is met. Therefore, no adjustment is made to the opening balance as of January 1, 2018 for this arrangement. The right to the royalty and milestone payments under the arrangement was unconditionally transferred to a third party in September 2018 and a gain on the sale recognized as other operating income. In 2011 and 2014 respectively, Zealand Pharma entered into license, research and development agreements with Boehringer Ingelheim. Refer to note 2 for further disclosure about the arrangement. Due to the continuing involvement through the research and development collaboration, these are arrangements subect to the license guidance of IFRS 15. Consequently, sales based royalties continue to be recognized along with the underlying sale and milestone payment are not recognized until the milestone is met. The Group had no other revenue generating activities as of January 1, 2018, and consequently, there is no impact from the adoption of IFRS 15. Other standards and amendments adopted · Amendments to IFRS 2 Share-based Payment. · Part of Annual Improvements to IFRSs Cycle 2014-2016. The implementation of these new or revised standards and interpretations has not resulted in any significant impact on the net result for the year or the financial position. Standards and interpretations not yet effective At the date of approval of the annual report, the following new and revised standard have been issued but are not yet effective. Therefore, they have not been adopted in the present financial statements: IFRS 16 Leases, effective for annual periods beginning on or after January 1, 2019 IFRS 16 requires all leases (except for short-term leases and leases of low-value assets) to be recognized as a right-of-use asset and lease liability, measured at the present value of future lease payments. The right-of-use asset is subsequently depreciated in a similar way to other depreciable assets over the lease term and interest calculated on the lease liability in a similar way to how it is calculated on finance leases under IAS 17. Consequently, the change will also impact the presentation in the income statement and the statement of cash flows. Zealand has assessed the standard, and the changes will require capitalization of several of Zealand’s operating lease contracts, representing approximately 0.1-0.3% of the total assets. The impact on operating result will be insignificant. The Group will apply the standard from its mandatory adoption date of January 1, 2019. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). As at the reporting date, the Group has operating leasing commitments of approx. DKK 5.7 million from 2019 – 2025 from leases that are currently available for use by the Group. The Group has assessed that approx. DKK 3.7 million of these commitments relate to short-term and low-value leases which will both be recognised on a straight-line basis as expense in the income statement. The Group has entered into a property lease expexted to commence September 1, 2019 with a non- cancellable lease term of 13 years with annual payments of approx. DKK 9.8 million. This property lease will be recognised in the statement of financial position on the date of com- mencement. For the current lease commitments, the Group expects to recognise right-of-use assets and lease liabilities in the range of approx. DKK 1.8 – 1.9 million on the date of transition. This amount excludes all current property leases as they have a remaining lease term at January 1, 2019 of less than a year. In calculating the discounted value of future lease payments, the Group will apply its incremental borrowing rate. In general, the Group does not expect any significant impact on the financial statements as a result of adoption of IFRS 16. Other relevant standards or interpretations adopted by the IASB, but not adopted by the EU, have not been applied in this annual report. Accounting policies The accounting policies are unchanged from last year, except for clarification to the accounting policy on ‘Other operating income’, included in note 7. The accounting policies for specific line items and transactions are included in the respective notes to the financial statements except for basis of consolidation, foreign currency translation and the cash flow statement, which are included below. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Principles of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and the individual subsidiaries, which are based on uniform accounting policies and accounting periods in all Group entities. Consolidation of Group entities is performed after elimination of all intra-Group transactions, balances, income and expenses. Foreign currency translation Transactions denominated in foreign currencies are translated at the exchange rates on the transaction dates. Exchange differences arising between the rate on the transaction date and the rate on the payment day are recognized in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated by applying the exchange rates at the balance sheet date. Differences arising between the rate at the balance sheet date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. Non-monetary assets purchased in foreign currencies are measured at the exchange rate on the transaction date. Consolidated financial statements Income statement The income statement is classified by function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with product candidates or geographical markets. Consequently, there is no segment reporting concerning business areas or geographical areas. Statement of financial position Financial assets Financial assets include receivables, securities and cash. Financial assets are divided into categories of which the following are relevant for the Group: 1. Financial assets at amortised cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. 2. Financial assets at fair value through the income statement, which are securities held in a business model whose purpose is to regularly sell securities within the portfolio. 3. Equity investments. These investments are measured at fair value through profit or loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the income statement are initially recognized at fair value, plus transaction costs. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the net loss for the year. The statement shows the cash flows broken down into operating, investing and financing activities, cash and cash equivalents at the beginning and end of the year, and the impact of the calculated cash flows on cash and cash equivalents. Cash flows in foreign currencies are translated into Danish kroner at the exchange rate on the transaction date. Cash flow from operating activities Cash flow from operating activities is presented indirectly and is calculated as the net loss adjusted for sale of royalties, non‑cash operating items, changes in net working capital, financial items paid and income tax benefits received and paid. Cash flow from investing activities Cash flow from investing activities includes cash flows from the sale of future royalties and milestones relating to the Sanofi license, purchase and sale of property, plant and equipment, investments and deposits, as well as transfers to and from restricted cash related to the royalty bond. Cash flow from financing activities Cash flow from financing activities includes new equity, loan financing, sale of treasury shares and funds from private placements. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Significant accounting estimates and assessments In preparing the financial statements, Management makes a number of accounting estimates that form the basis for the recognition and measurement of our assets and liabilities. In applying our accounting policies, Management 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. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertainties that may result in deviations in actual results compared with estimates. No significant changes have been made to accounting estimates and assessments in 2018. The following are the most significant accounting estimates and assessments applied by Management in these financial statements: Revenue recognition Revenue comprises license payments, milestone payments and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Milestone payments are related to the collaborative research agreements with commercial partners when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the cus- tomer simultaneously with delivery is recognized along with delivery of the services. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. Employee incentive programs In accordance with IFRS 2 Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement.The fair value of each warrant granted during the year is calculated using the Black–Scholes option pricing model. This requires the input of subjective assumptions such as: · The expected stock price volatility, which is based on the historical volatility of Zealand’s share price · The risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity of five years · The duration of the warrants, which is assumed to be until the end of the last exercise period The total fair value of the warrants is recognized in the income statement over the vesting period, if any. An adjustment is made to reflect an expected attrition rate during the vesting pe- riod. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. Restatement The Company has been eligible to receive royalty revenue of 10% on Sanofi’s net sales of Lyxumia ® / Adlyxin ® (lixisenatide) in countries with a valid IP protection for Zealand and potentially up to USD 100 million in commercial milestones. During Q2 2018 it was determined that royalty revenue from Sanofi recognized from 2013 until Q1 2018 included DKK 17.1 million of royalty revenue on net sales in countries with no valid IP protection for Zealand and therefore revenue has been overstated in these periods. As a consequence of this, royalty expenses from 2013 until Q1 2018 has been overstated in this same period. Such misstatements have been corrected with retrospective impact and thus comparable periods as of and for the years ended December 31, 2017, 2016 and 2015 have been restated. The nature and impact of each restatement per line item in the consolidated income statements and consolidated statement of financial position for Zealand is presented below. Income statement: A) Revenue Royalty revenue has been restated as Zealand has previously recognized royalty revenue on net sales in countries with no valid IP protection. B) Royalty expenses Royalty expenses comprise contractual amounts due to third parties that are derived from royalty revenue earned from the corresponding collaboration agreements. The restatement on royalty revenue therefore leads to a corresponding restatement of royalty expenses. Statement of financial position: C) Trade receivables and other liabilities The restatement related to trade receivables and other liabilities corresponds to the restatement on royalty revenue and royalty expenses, as discussed in tickmark A and B. D) Retained loss The restatement related to net loss for the period amounts to the combined impact of the restatements on royalty revenue and royalty expenses from 2013 through December 2016. Statement of cash flow: The impact of the restatement on the statement of cash flow is solely a reclassification between “Net loss for the period” and “Change in working capital" in the amount of DKK 3.0, 3.4 and 4.4 million respectively as of December 31, 2017, 2016 and 2015. The restatement related to net loss for the period amounts to the net impact of the restatements for the respective years on royalty revenue and royalty expenses while the restatement related to working capital for the period amounts to the net impact of the misstatements in trade receivables and other liabilities in the statement of financial position. Hence, there is no impact on the cash flow from operating activities. Based on the above outlined factors, the Company deemed irrelevant to present restated statements of cash flow for the years ended December 31, 2017 and 2016. Condensed consolidated income statement for the twelve month period ended December 31, 2017 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 Revenue 139,775 (3,453) A 136,322 Royalty expenses (14,629) 466 B (14,163) Research and development expenses (324,667) 0 (324,667) Administrative expenses (47,470) 0 (47,470) Other operating income 607 0 607 Operating loss (246,384) (2,987) (249,371) Financial income 2,122 0 2,122 Financial expenses (33,509) 0 (33,509) Loss before tax (277,771) (2,987) (280,758) Income tax benefit 5,500 0 5,500 Net loss for the period (272,271) (2,987) (275,258) Loss per share - basic (DKK) (9.77) (0.11) (9.88) Loss per share - diluted (DKK) (9.77) (0.11) (9.88) Condensed consolidated statements of comprehensive income for the twelve month period ended December 31, 2017 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 Net loss for the period (272,271) (2,987) (275,258) Other comprehensive income (loss) 0 0 0 Net loss for the period (272,271) (2,987) (275,258) Condensed consolidated income statement for the twelve month period ended December 31, 2016 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 Revenue 234,778 (3,914) A 230,864 Royalty expenses (31,459) 528 B (30,931) Research and development expenses (268,159) 0 (268,159) Administrative expenses (52,503) 0 (52,503) Other operating income 1,697 0 1,697 Operating loss (115,646) (3,386) (119,032) Financial income 592 0 592 Financial expenses (44,356) 0 (44,356) Loss before tax (159,410) (3,386) (162,796) Income tax benefit 5,500 0 5,500 Net loss for the period (153,910) (3,386) (157,296) Loss per share - basic (DKK) (6.33) (0.14) (6.47) Loss per share - diluted (DKK) (6.33) (0.14) (6.47) Condensed consolidated statements of comprehensive income for the twelve month period ended December 31, 2016 As originally Amount as reatported, adjusted, December31, Restate- December 31 DKK thousand 2016 ment Tickmark 2016 Net loss for the period (153,910) (3,386) (157,296) Other comprehensive income (loss) 0 0 0 Net loss for the period (153,910) (3,386) (157,296) Condensed consolidated income statement for the twelve month period ended December 31, 2015 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 Revenue 187,677 (5,104) A 182,573 Royalty expenses (22,267) 689 B (21,578) Research and development expenses (217,741) 0 (217,741) Administrative expenses (41,824) 0 (41,824) Other operating income 12,828 0 12,828 Operating loss (81,327) (4,415) (85,742) Financial income 3,889 0 3,889 Financial expenses (42,394) 0 (42,394) Loss before tax (119,832) (4,415) (124,247) Income tax benefit 5,875 0 5,875 Net loss for the period (113,957) (4,415) (118,372) Loss per share - basic (DKK) (4.94) (0.19) (5.13) Loss per share - diluted (DKK) (4.94) (0.19) (5.13) Condensed consolidated statements of comprehensive income for the twelve month period ended As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 Net loss for the period (113,957) (4,415) (118,372) Other comprehensive income (loss) 0 0 0 Net loss for the period (113,957) (4,415) (118,372) Condensed consolidated statement of financial position as of December 31, 2017 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 ASSETS Non-current assets Plant and machinery 14,855 14,855 Other fixtures and fittings, tools and equipment 953 953 Leasehold improvements 304 304 Deposits 2,729 2,729 Restricted cash 5,892 5,892 Other investments 9,312 9,312 Total non-current assets 34,045 0 34,045 Current assets Trade receivables 21,632 (15,953) C 5,679 Prepaid expenses 7,253 7,253 Income tax receivable 5,500 5,500 Other receivables 4,979 4,979 Securities 75,111 75,111 Cash and cash equivalents 588,718 588,718 Total current assets 703,193 (15,953) 687,240 Total assets 737,238 (15,953) 721,285 Condensed consolidated statement of financial position as of December 31, 2017 (continued) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 EQUITY AND LIABILITIES Share capital 30,751 30,751 Share premium 1,959,199 1,959,199 Retained loss (1,461,482) (13,799) D (1,475,281) Equity 528,468 (13,799) 514,669 Royalty bond 132,986 132,986 Non-current liabilities 132,986 0 132,986 Trade payables 29,428 29,428 Royalty bond 2,748 2,748 Other liabilities 43,608 (2,154) C 41,454 Current liabilities 75,784 (2,154) 73,630 Total liabilities 208,770 (2,154) 206,616 Total equity and liabilities 737,238 (15,953) 721,285 Condensed consolidated statement of financial position as of December 31, 2016 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 ASSETS Non-current assets Plant and machinery 12,081 12,081 Other fixtures and fittings, tools and equipment 1,154 1,154 Leasehold improvements 408 408 Deposits 2,690 2,690 Restricted cash 305,120 305,120 Total non-current assets 321,453 0 321,453 Current assets Trade receivables 11,510 (11,510) C 0 Prepaid expenses 13,837 13,837 Income tax receivable 5,500 5,500 Other receivables 5,379 5,379 Restricted cash 13,617 13,617 Cash and cash equivalents 323,330 323,330 Total current assets 373,173 (11,510) 361,663 Total assets 694,626 (11,510) 683,116 Condensed consolidated statement of financial position as of December 31, 2016 (continued) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 EQUITY AND LIABILITIES Share capital 26,142 26,142 Share premium 1,441,263 1,441,263 Retained loss (1,189,211) (10,813) D (1,200,024) Equity 278,194 (10,813) 267,381 Royalty bond 328,878 328,878 Non-current liabilities 328,878 0 328,878 Trade payables 19,739 19,739 Royalty bond 3,365 3,365 Other liabilities 64,450 (697) C 63,753 Current liabilities 87,554 (697) 86,857 Total liabilities 416,432 (697) 415,735 Total equity and liabilities 694,626 (11,510) 683,116 Condensed consolidated statement of financial position as of December 31, 2015 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 ASSETS Non-current assets Plant and machinery 14,672 14,672 Other fixtures and fittings, tools and equipment 1,153 1,153 Leasehold improvements 628 628 Deposits 2,666 2,666 Total non-current assets 19,119 0 19,119 Current assets Trade receivables 158,158 (8,587) C 149,571 Prepaid expenses 2,430 2,430 Income tax receivable 5,875 5,875 Other receivables 10,427 10,427 Restricted cash 21,403 21,403 Cash and cash equivalents 418,796 418,796 Total current assets 617,089 (8,587) 608,502 Total assets 636,208 (8,587) 627,621 Condensed consolidated statement of financial position as of December 31, 2015 (continued) As originally Amount as reported, adjusted, December 31, December 31, DKK thousand 2015 Restatement Tickmark 2015 EQUITY AND LIABILITIES Share capital 24,353 24,353 Share premium 1,263,179 1,263,179 Retained loss (1,035,301) (7,428) D (1,042,729) Equity 252,231 (7,428) 244,803 Royalty bond 312,951 312,951 Non-current liabilities 312,951 0 312,951 Trade payables 21,676 21,676 Other liabilities 49,350 (1,159) C 48,191 Current liabilities 71,026 (1,159) 69,867 Total liabilities 383,977 (1,159) 382,818 Total equity and liabilities 636,208 (8,587) 627,621 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue | |
Revenue | Note 2 - Revenue Accounting policies Revenue comprises license payments, milestone payments and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Milestone payments are related to the collaborative research agreements with commercial partners when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. Accounting for the Sanofi License Agreement In 2003, Zealand entered into a license agreement with Sanofi (the Sanofi License Agreement), pursuant to which Zealand granted Sanofi exclusive rights to its patents, know-how and other intellectual property relating to lixisenatide, for all fields. Pursuant to the Sanofi License Agreement, which has been amended over the years, Sanofi assumed responsibility for the further development, manufacturing and marketing of lixisenatide, and we cannot research or develop lixisenatide while the Sanofi License Agreement remains in effect. Under the Sanofi License Agreement, we were eligible to receive remaining milestone payments relating to commercialized products of up to USD 100 million, contingent on the achievement of certain sales levels, as well as royalties on global sales of such products. Royalties correspond to tiered, low-double-digit percentages of Sanofi’s global net sales of lixisenatide (branded as Adlyxin ® in the U.S. and as Lyxumia ® in the EU and in other countries) plus a 10% royalty on global net sales of a combination of lixisenatide and insulin glargine 100 units/ml (Lantus ® ) marketed under the brand name Soliqua ® 100/33 in the U.S. and as Suliqua ® in the EU. In 2016, Sanofi challenged the validity of certain patents owned by a competitor, AstraZeneca (and its affiliates), in both administrative and court proceedings in the U.S. and in certain other countries, and AstraZeneca brought counterclaims in the U.S. proceedings asserting that prod- ucts containing lixisenatide infringe its patents. Sanofi and AstraZeneca subsequently agreed to settle all claims and counterclaims between them in various proceedings relating to lixisenatide. Our financial obligations related to this now-resolved intellectual property dispute could reduce our net revenue from the original commercial milestone payments from Sanofi relating to Soliqua ® 100/33/ Suliqua ® . The amount and timing of any such reductions are not currently known, but they will not exceed USD 15 million in total. We pay Alkermes plc 13% of all payments received on lixisenatide while lixisenatide is subject to a commercialization agreement such as the Sanofi License Agreement. We also pay one of the inventors of the Structure Induced Probe (SIP) technology employed in lixisensatide a 0.5% royalty on amounts received in connection with drug candidates that, like lixisenatide, are produced using the SIP technology. Milestone payments have been recognized as revenue when the relevant milestones are achieved. As of September 2018, all future royalties and all but up to USD 15 million of future milestones relating to the Sanofi License Agreement have been sold to Royalty Pharma. Refer to note 7. Accounting for the Boehringer Ingelheim License Agreements In 2011, Zealand entered into a license, research and development collaboration agreement with Boehringer Ingelheim International GmbH (BI) to advance novel GLP-1/glucagon dual-acting peptide receptor agonists (GGDAs) for the treatment of patients with type 2 diabetes and obesity. Under the terms of the 2011 BI License Agreement, BI paid a fixed amount per full-time employee and other costs related to all research, development and commercialization in respect of the compounds covered by the agreement. We are eligible to receive license and milestone payments of up to EUR 386 million, of which EUR 365 million was outstanding at December 31, 2018, related to the achievement of prespecified development, regulatory and commercial milestones for the lead product. We are also eligible to receive tiered royalties ranging from high-single-digit to low-double-digit percentages on BI’s sales of all products stemming from this collaboration. In addition, we retain copromotion rights in Scandinavia. In 2014, Zealand entered into a second global license, research and development collaboration agreement with BI (the 2014 BI License Agreement). This agreement pertained to a collaboration on a specific therapeutic peptide project from our portfolio of preclinical programs for a period of up to four and a half years, with the aim of developing novel drugs to improve the treatment of patients with cardiometabolic diseases. In 2015, BI selected a novel peptide therapeutic to be advanced into preclinical development under this agreement. Pursuant to this agreement, we have worked with BI to advance the therapeutic peptides stemming from this research collaboration into preclinical development. BI is responsible for conducting preclinical and clinical development as well as for the commercialization of products stemming from the agreement and funding all activities under the agreement. We are eligible to receive license and milestone payments of up to EUR 295 million for the first compound to be developed and marketed under the collaboration, of which EUR 283 million was outstanding at December 31, 2018. We are also eligible to receive tiered royalties ranging from low-single-digit to low-double-digit percentages on global sales of products arising from this collaboration. We retain copromotion rights in Scandinavia and are not eligible for royalty payments in those countries if we exercise such rights. No product candidates outlicensed to BI are currently marketed, and accordingly we have not received any royalty payments to date under our licensing agreements with BI. Milestone payments are recognized as revenue when the relevant milestones are achieved. Accounting for other license agreements In 2018, Zealand entered into a Material Transfer agreement with an undisclosed counterpart. A milestone payment was recognized as revenue, when the relevant milestone was achieved. Such Material Transfer agreement related to the delivery of an existing material to the undisclosed third party. No remaining performance obligations exist related to such agreement. In 2012, Zealand entered into an agreement with Protagonist Therapeutics, Inc., but this research collaboration was terminated in 2014. In line with the terms of the terminated agreement, Zealand is entitled to receive up to USD 15 million if certain milestone events occur. Milestone payments are recognized as revenue when the relevant milestones are achieved. Recognized revenue can be specified as follows for all agreements: Restated 1 Restated 1 DKK thousand 2018 2017 2016 Sanofi-Aventis Deutschland GmbH 0 69,603 208,692 Boehringer Ingelheim International GmbH 0 29,750 0 Helsinn Healthcare S.A. 0 0 112 Undisclosed counterpart 9,845 0 0 Protagonist Therapeutics, Inc. 3,274 1,662 1,636 Total license and milestone revenue 13,119 101,015 210,440 Sanofi—Aventis Deutschland GmbH 24,858 35,307 20,424 Total royalty revenue 24,858 35,307 20,424 Total revenue 37,977 136,322 230,864 Royalty revenue can be specified as follows: Soliqua ® 17,786 18,655 0 Lyxumia ® 7,072 16,652 20,424 Total royalty revenue 24,858 35,307 20,424 1 See Note 1 to the consolidated financial statements. On September 6, 2018, Zealand entered into an agreement under which all rights to sales based royalties and milestone payments under the Sanofi agreement were transferred to Royalty Pharma for a fixed consideration. The gain net of transaction costs and settlement of the liability to Alkermes plc and another investor is included in other operating income. Refer to note 7. No transfers of licenses occurred in 2017 or 2016. All Zealand revenue can be attributed to countries other than Denmark. Revenue from Sanofi 1 In 2018, we recognized DKK 24.9 million as royalty income, reflecting sales of Lyxumia ® of EUR 9.5 million and sales of Soliqua ® 100/33 of EUR 23.8 million. No milestone revenue was received. In 2017, we recognized DKK 69.6 million in revenue from milestone payments from Sanofi under the Sanofi License Agreement in connection with the approval of Suliqua ® in the EU in January 2017. In addition, in 2017 we recognized DKK 35.3 million as royalty income, reflecting sales of Lyxumia ® of EUR 22.4 million and sales of Soliqua ® 100/33 of EUR 25.1 million. In 2016, we recognized DKK 208.7 million in revenue from milestone payments from Sanofi under the Sanofi License Agreement in connection with the approval of lixisenatide as Adlyxin ® in July 2016 amounting to DKK 33.5 million, and in connection with the approval of Soliqua ® 100/33 in November 2016 amounting to DKK 175.2 million, both in the U.S. In addition, in 2016 we recognized DKK 20.4 million as royalty income, reflecting sales of Lyxumia ® of EUR 27.4 million. Revenue from Boehringer Ingelheim No revenue was recognized from BI in 2018, as no milestone event was reached. In 2017, we recognized DKK 29.8 million in revenue from milestone payments from BI related to the initiation of the Phase 1 trial for the long-acting amylin analog. No revenue was recognized from BI in 2016, as no milestone event was reached. Revenue from Helsinn No revenue was recognized from Helsinn in 2018 and 2017. In 2016, we recognized DKK 0.1 million in revenue from Helsinn, representing contractual payments rather than milestone payments. Revenue from other agreements In 2018, we recognized DKK 9.8 million in revenue from a milestone payment from an undisclosed counterpart relating to a Material Transfer Agreement. No revenue was recognized in 2017 or 2016. In 2018, we recognized DKK 3.3 million in revenue from a milestone payment from the Protagonist Therapeutics agreement in connection with the start of Phase 2 with the novel hepcidin mimetic PTG-300. In 2017, we recognized DKK 1.7 million in revenue from a milestone payment from the Protagonist Therapeutics agreement in connection with the start of Phase 1 with the novel hepcidin mimetic PTG-300. In 2016, we recognized DKK 1.6 million in revenue from a milestone payment from the Protagonist Therapeutics agreement in connection with its selection of a development candidate. |
Royalty expenses
Royalty expenses | 12 Months Ended |
Dec. 31, 2018 | |
Royalty expenses | |
Royalty expenses | Note 3 - Royalty expenses Accounting policies Royalty expenses comprise contractual amounts payable to third parties that are derived from the milestone payments and royalty income earned from the corresponding collaboration agreements. We have agreed to pay some of our revenue in deferred payments or royalties to third parties. At the time of the dissolution of a former joint venture with Elan Corporation, plc (Elan) and certain of its subsidiaries that were party to the joint venture agreement with us, we agreed to pay royalties to Elan - now Alkermes plc, as successor in interest to a termination agreement between us and the Elan entities - including 13% of future payments we receive in respect of lixisenatide under the Sanofi License Agreement. In addition, we have agreed to pay a royalty of 0.5% of the total amounts we receive in connection with our SIP-modified peptides, including lixisenatide, to one of the inventors of our SIP technology, who is one of our employees. The royalty to be paid to this inventor is calculated on the basis of all the amounts we receive, including license payments, milestone payments and sales. In 2018 and 2017, the royalty expenses related to royalties from sales of Lyxumia ® and Soliqua ® 100/33 and milestone payments received from Sanofi. In 2016, the royalty expenses related to royalties from sales of Lyxumia ® and milestone payments received from Sanofi. As further discussed in note 7, the arrangement was settled in 2018 as part of transferring the right to future royalty and milestone payments under the Sanofi agreement . |
Research, development and admin
Research, development and administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
Research, development and administrative expenses | |
Research, development and administrative expenses | Note 4 - Research, development and administrative expenses Accounting policies Research and development expenses Research expenses comprise salaries, contributions to pension schemes and other expenses, including patent expenses, as well as depreciation and amortization directly attributable to the Group’s research activities. Research expenses are recognized in the income statement as incurred. Development expenses comprise salaries, contributions to pension schemes and other expenses, including depreciation and amortization, directly attributable to the Group’s development activities. Development expenses are recognized in the income statement as incurred. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associated undertakings. Accounting estimates and assessments related to research and development expenses A development project involves a single product candidate undergoing a large number of tests to demonstrate its safety profile and its effect on human beings, prior to obtaining the necessary final approval for the product from the appropriate authorities. The future economic benefits associated with the individual development projects are dependent on obtaining such approval. Considering the significant risk and duration of the development period for biological products, Management has concluded that whether the intangible asset will generate probable future economic benefits cannot be estimated with sufficient certainty until the project has been finalized and the necessary final regulatory approval of the product has been obtained. Accordingly, Zealand has not recognized such assets at this time, and all research and development expenses are therefore recognized in the income statement when incurred. Capitalization of development costs assumes that, in the Group’s opinion, the development of the technology or the product has been completed, all necessary public registrations and marketing approvals have been received, and expenses can be reliably measured. Furthermore, it must be established that the technology or the product can be commercialized and that the future income from the product can cover not only the production, selling and administerative expenses but also development expenses. Zealand has not capitalized any development expenses in 2018, 2017 or 2016. Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to company premises, operating leases, investor relations, etc. Overhead expenses have been allocated to research and development or administrative expenses according to the number of employees in each department, based on the respective employees’ associated undertakings. |
Fees to auditors appointed at t
Fees to auditors appointed at the Annual General Meeting | 12 Months Ended |
Dec. 31, 2018 | |
Fees to auditors appointed at the Annual General Meeting | |
Fees to auditors appointed at the Annual General Meeting | Note 5 - Fees to auditors appointed at the Annual General Meeting DKK thousand 2018 2017 2016 Audit 1,661 1,199 1,937 Audit-related services and other assurance engagements 718 2,418 4,107 Tax advice 106 114 43 Other 0 196 232 Total fees 2,485 3,927 6,319 The fee for audit-related services and other assurance engagements, tax advice and other services provided to the Group by Deloitte Statsautoriseret Revisionspartnerselskab amounts to DKK 0.8 million and consists of review of tax returns, work in relation to existing internal control processes at the Company, and other general financial reporting matters. |
Information on staff and remune
Information on staff and remuneration | 12 Months Ended |
Dec. 31, 2018 | |
Information on staff and remuneration | |
Information on staff and remuneration | Note 6 - Information on staff and remuneration DKK thousand 2018 2017 2016 Total staff salaries can be specified as follows:Salaries 141,661 112,614 104,614 Pension schemes (defined contribution plans) 11,065 9,135 8,239 Other payroll and staff-related costs 27,252 30,291 32,838 Total 179,978 152,040 145,691 The amount is charged as: Research and development expenses 153,521 119,474 109,509 Administrative expenses 26,457 32,566 36,182 Total 179,978 152,040 145,691 Average number of employees 146 128 124 Base Committee Total Base Committee Total Base Committee Total Remuneration board fee Fees fees board fee Fees fees board fee Fees fees DKK thousand 2018 2018 2018 2017 2017 2017 2016 2016 2016 Remuneration to the Board of Directors Martin Nicklasson 1 650 100 750 550 100 650 550 200 750 Rosemary Crane 333 50 383 350 50 400 350 50 400 Catherine Moukheibir 300 150 450 250 150 400 250 150 400 Alain Munoz 300 50 350 250 33 283 250 0 250 Michael Owen 300 50 350 250 50 300 250 0 250 Kirsten Drejer 200 0 200 0 0 0 0 0 0 Jens Peter Stenvang 2 300 0 300 250 0 250 250 0 250 Hanne Heidenheim Bak 2 300 0 300 198 0 198 167 0 167 Helle Haxgart 2, 3 100 0 100 21 0 21 0 0 0 Rasmus Just 2, 4 0 0 0 229 0 229 167 0 167 Peter Benson 5 0 0 0 0 0 0 104 0 104 Christian Thorkildsen 2, 5 0 0 0 0 0 0 83 0 83 Helle Størum 2, 5 0 0 0 0 0 0 83 0 83 Total 2,783 400 3,183 2,348 383 2,731 2,504 400 2,904 1 In addition to the base board fee, Martin Nicklasson received an observation fee for his period as Observer to the Board before being appointed at the Annual General Meeting in 2015. This fee amounted to DKK 150,000, and was paid in 2016. 2 Employee-elected board members; the table only includes remuneration for board work. 3 This board member resigned from the Board in 2018. 4 This board member resigned from the Board in 2017. 5 These board members resigned from the Board in 2016. Warrant Pension Other Severance compensation DKK thousand Base salary Bonus contribution benefits payment expenses Total 2018 Remuneration to the Executive Management Britt Meelby Jensen 4,189 2,513 419 320 0 0 7,441 Mats Blom 2,621 1,031 262 273 0 2,219 6,406 Total 6,810 3,544 681 593 0 2,219 13,847 Other Corporate Management 1 6,689 2,653 604 1,035 0 5,804 16,785 Total 6,689 2,653 604 1,035 0 5,804 16,785 Total 13,499 6,197 1,285 1,628 0 8,023 30,632 2017 Remuneration to the Executive Management Britt Meelby Jensen 3,915 2,482 392 231 0 4,058 11,078 Mats Blom 2,496 999 250 271 0 2,389 6,405 Total 6,411 3,481 642 502 0 6,447 17,483 Other Corporate Management 1 4,416 1,787 442 388 0 4,779 11,812 Total 4,416 1,787 442 388 0 4,779 11,812 Total 10,827 5,268 1,084 890 0 11,226 29,295 2016 Remuneration to the Executive Management Britt Meelby Jensen 3,795 683 380 231 0 4,442 9,531 Mats Blom 2,448 526 245 268 0 1,111 4,598 Total 6,243 1,209 625 499 0 5,553 14,129 Other Corporate Management 1 6,422 833 642 1,324 1,782 7,322 18,325 Total 6,422 833 642 1,324 1,782 7,322 18,325 Total 12,665 2,042 1,267 1,823 1,782 12,875 32,454 1 Other Corporate Management in 2018 and 2017 comprised two members. Other Corporate Management in 2016 comprised four members, including two members who resigned during the year. Employee incentive programs Accounting policies The value of services received as consideration for granted warrants is measured at the fair value of the warrant. The fair value is determined at the grant date and is recognized in the income statement as employee benefit expense over the period in which the warrants vest. The offsetting entry to this is recognized under equity. an estimate is made of the number of warrants expected to vest. Subsequently, an adjustment is made for changes in the estimate of the number of warrants which will vest, so the total expense is equal to fair value of the actual number of warrants which vest. The fair value of warrants granted is estimated using the Black– Scholes pricing model. The 2010 employee incentive program Program Program Program Program Program Program Program Program of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 10/Feb/11 17/Nov/11 10/Feb/12 19/Nov/12 08/Feb/13 01/Apr/14 25/Mar/15 05/May/15 Total Number of warrants Outstanding at January 1, 2018 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 0 0 0 0 0 Exercised during the year 0 0 0 0 0 (28,000) 0 0 (28,000) Expired during the year 0 0 0 0 (183,425) 0 0 0 (183,425) Outstanding at December 31, 2018 0 0 0 0 0 72,000 100,000 46,359 218,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 0 0 Other employees 0 0 0 0 0 72,000 100,000 46,359 218,359 Total 0 0 0 0 0 72,000 100,000 46,359 218,359 Number of warrants Outstanding at January 1, 2017 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 0 0 0 0 0 Exercised during the year 0 0 0 0 (77,712) 0 0 0 (77,712) Expired during the year 0 0 (6,250) (214,883) 0 0 0 0 (221,133) Outstanding at December 31, 2017 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Specified as follows: Executive Management 0 0 0 0 0 0 0 0 0 Other employees 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Total 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Number of warrants Outstanding at January 1, 2016 11,600 105,259 151,741 214,883 326,012 100,000 100,000 46,359 1,055,854 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 (1,250) 0 0 0 (1,250) Exercised during the year 0 (105,259) (145,491) 0 (63,625) 0 0 0 (314,375) Expired during the year (11,600) 0 0 0 0 0 0 0 (11,600) Outstanding at December 31, 2016 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Specified as follows: Executive Management 0 0 0 31,019 0 0 0 0 31,019 Other employees 0 0 6,250 183,864 261,137 100,000 100,000 46,359 697,610 Total 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Exercise period From 10/Feb/14 17/Nov/14 10/Feb/15 19/Nov/15 10/Feb/16 01/Apr/7 25/Mar/18 05/May/18 Until 10/Feb/16 17/Nov/16 10/Feb/17 19/Nov/17 10/Feb/18 01/Apr/19 25/Mar/20 05/May/20 Black-Scholes parameters Term (months) 60 60 60 60 60 60 60 60 Share price 70.0 45.7 70.0 86.0 79.05 69.0 115.5 Exercise price (DKK) 77.0 50.27 77.0 113.3 87.45 75.9 127.05 101.2 Volatility* 33.0 % 34.0 % 44.0 % 56.0 % 39.3 % 37.5 % 41.9 % 43.7 % Risk-free interest rate 3.09 % 1.02 % 0.37 % 0.86 % 0.66 % 0.71 % (0.21) % (0.10) % Cost price 21.36 12.90 24.74 23.76 25.38 21.05 37.78 31.63 Dividend not expected not expected not expected not expected not expected not expected not expected not expected *The volatility rate used is based on the actual volatility of the Zealand share price. The 2015 employee incentive program Program Program Program Program Program Program Program Program Program Program Program of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 05/May/15 5/May/15 5/Apr/16 5/Apr/16 15/Jul/16 6/Apr/17 6/Apr/17 25/Aug/17 25/Aug/17 22/May/18 15-Oct-18 Total Number of warrants Outstanding at January 1, 2018 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Granted during the year 0 0 0 0 0 0 0 0 0 615,500 40,000 655,500 Forfeited during the year (100,000) 0 (7,000) (85,434) 0 (24,500) (93,392) (14,566) (6,608) (105,500) 0 (437,000) Exercised during the year 0 (7,500) 0 0 0 0 0 0 0 0 0 (7,500) Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2018 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 1,635,000 Specified as follows: Executive Management 0 75,000 25,000 0 0 57,000 0 0 0 60,000 0 217,000 Other employees 0 267,250 296,750 0 40,000 324,000 0 0 0 450,000 40,000 1,418,000 Total 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 1,635,000 Number of warrants Outstanding at January 1, 2017 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Granted during the year 0 0 0 0 0 424,000 93,392 14,566 6,608 0 0 538,566 Forfeited during the year 0 (7,500) (16,250) (14,566) 0 (18,500) 0 0 0 0 0 (56,816) Exercised during the year 0 0 0 0 0 0 0 0 0 0 0 0 Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2017 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Specified as follows: Executive Management 100,000 75,000 25,000 85,434 0 57,000 93,392 14,566 6,608 0 0 457,000 Other employees 0 274,750 303,750 0 40,000 348,500 0 0 0 0 0 967,000 Total 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Number of warrants Outstanding at January 1, 2016 100,000 363,250 0 0 0 0 0 0 0 0 0 463,250 Granted during the year 0 0 347,250 100,000 40,000 0 0 0 0 0 0 487,250 Forfeited during the year 0 (6,000) (2,250) 0 0 0 0 0 0 0 0 (8,250) Exercised during the year 0 0 0 0 0 0 0 0 0 0 0 0 Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2016 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Specified as follows: Executive Management 100,000 75,000 25,000 100,000 0 0 0 0 0 0 0 300,000 Other employees 0 282,250 320,000 0 40,000 0 0 0 0 0 0 642,250 Total 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Exercise period From 05/May/16 05/May/18 05/Apr/19 05/Apr/17 15/Jul/19 06/Apr/20 06/Apr/18 25/Aug/17 06/Apr/18 22/May/21 15/Oct/21 Until 05/May/20 05/May/20 05/Apr/21 05/Apr/21 15/Jul/21 06/Apr/22 06/Apr/22 25/Aug/22 06/Apr/22 22/May/23 15/Oct/23 Black-Scholes parameters Term (months) 60 60 60 60 60 60 60 60 60 60 60 Share price (DKK) 92.0 92.0 129.5 129.5 126.0 123.0 123.0 118.5 118.5 100.8 90.0 Exercise price (DKK) 101.2 101.2 142.45 142.45 138.6 135.3 135.3 142.45 135.3 100.8 90.0 Volatility* 43.7 % 43.7 % 43.5 % 43.5 % 45.0 % 43.6 % 43.6 % 43.0 % 43.0 % 42.6 % 42.5 % Risk free interest rate (0.10) % (0.10) % (0.04) % (0.04) % (0.33) % (0.24) % (0.24) % (0.16) % (0.16) % 0.05 % (0.03) % Cost price (DKK) 31.63 31.63 44.42 44.42 44.23 41.92 41.92 36.74 38.58 36.98 32.83 Dividend not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected * Employee warrant programs In order to motivate and retain key employees and encourage the achievement of common goals for employees, Management and shareholders, the Company has established an incentive plan based on warrant programs. Incentive programs were offered in 2005, 2007 and in the periods 2009-2018. The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and size of the grants, taking into account authorizations from the shareholders, the Group’s guidelines for incentive pay, an assessment of expectations of the recipient’s work efforts and contribution to the Group’s growth, as well as the need to motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default subject to continuing employment with the Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients covered by the Act. The exercise price is determined by the closing price of Zealand’s shares on Nasdaq Copenhagen on the day prior to the grant date. For warrants granted before April 19, 2018, the exercise price is determined by the closing price of Zealand’s shares on Nasdaq Copenhagen on the day prior to the grant date plus 10%. Warrants expire automatically after five years. Warrants are considered vested at the grant date, when there is no vesting period explicit in the warrant agreement, and may be exercised after three years. Warrants granted on October 15, 2018 are vested over 36 months with 1/36 of the warrants vesting per month from the date of grant, and can be exercised after three years. Warrants may be exercised four times a year during a four‑week period starting from the date of the publication of Zealand ’ s Annual Report or interim reports. 2010 employee incentive program This program was established in 2010 for Zealand ’ s Board of Directors, Executive Management, employees and consultants. The Board of Directors was authorized to issue up to 2,750,000 warrants in the period until November 2, 2015. The program has expired and a total of 2,355,495 warrants have been granted. As of December 31, 2018, 1,579,809 warrants have been exercised, 422,327 warrants have expired without being exercised, and 135,000 warrants have forfeited. The total proceeds amount to DKK 127.4 million (2017: DKK 125.3 million and 2016: DKK 116.3 million). As of December 31, 2018, 218,359 warrants can still be exercised. 2015 employee incentive program This program was established in 2015 for Zealand ’ s Executive Management and employees. The Board of Directors was authorized to issue up to 2,750,000 warrants in the period until April 20, 2020, of which 602,434 have not yet been granted. As of December 31, 2018, 2,147,566 warrants have been granted, 7,500 warrants have been exercised, and 505,066 warrants have forfeited. This means that the remaining amount of warrants that can be granted is 1,107,500. As of December 31, 2018, 1,635,000 warrants can be exercised. The total proceeds amount to DKK 0.8 million. Effect on income statement In 2018, the fair value of warrants recognized in the income statement amounted to DKK 17.4 million (2017: DKK 20.2 million and 2016: DKK 22.7 million), of which DKK 2.2 million (2017: DKK 6.4 million and 2016: DKK 5.6 million) related to Executive Management. Costs for the warrant programs have been adjusted at the end of the year by DKK 0.0 million (2017:DKK 0.7 million and 2016: DKK 2.4 million) due to the actual attrition rate and an adjustment to the warrant programs granted in 2015 to reflect the estimated attrition rate split between Executive Management and employees. Warrants granted to the CEO, Britt Meelby Jensen in May 2018, have been reversed by DKK 3.7 million, as a consequense of Britt Meelby Jensen's resignation. DKK thousand 2018 2017 2016 The amount is charged as: Research and development expenses 13,838 12,190 14,290 Administrative expenses 3,631 7,966 8,437 Total 17,469 20,156 22,727 |
Other operating income
Other operating income | 12 Months Ended |
Dec. 31, 2018 | |
Other operating income | |
Other operating income | Note 7 - Other operating income Accounting policies Other operating income comprises gains from sale of intangible assets, research funding from business partners and government grants. A gain from disposal of intangible assets is recognized when control over the asset is transferred to the buyer. The gain is determined as the disposal proceeds less the carrying amount, if any, and disposal costs. Research funding is recognized in the period when the research activities have been performed, and government grants are recognized periodically when the work supported by the grant has been reported. Government grants are recognized when a final and firm right to the grant has been obtained. Government grants are included in Other operating income, as the grants are considered to be cost refunds. DKK thousand 2018 2017 2016 Gross proceeds from sale of future royalties and milestones 1,310,237 0 0 Royalty expenses regarding the above sale of future royalties and milestones (176,882) 0 0 Fee, advisors regarding the above sale of future royalties and milestones (34,459) 0 0 Research funding 0 40 920 Government grants 630 567 777 Total other operating income 1,099,526 607 1,697 Zealand has on September 6, 2018 entered into an agreement to sell futureroyaltiesand USD 85.0 million of potential commercial milestones for Soliqua® 100/33/ Suliqua® and Lyxumia®/ Adlyxin® to Royalty Pharma. Under the agreement, all rights and obligations under the Sanofi Licensing agreement apart from a potential payment from Sanofi of up to USD 15.0 million, expected in 2020 (see note 22) have been transferred to the buyer. Zealand has received USD 205.0 million (DKK 1,310.2 million) upon closing of the transaction on September 17, 2018. Royalty expenses to third parties amounts to 13.5% or DKK 176.9 million and fees to advisors amounts to DKK 34.5 million. Zealand has also redeemed the outstanding royalty bond of USD 24.7 million (DKK 157.6 million), after which Zealand is debt free. The Sanofi license agreement was classified as an intangible asset upon adoption of IFRS 15 (see note 1), and the agreement with Royalty Pharma is treated as a sale of this license. The payment to the third parties is considered additional cost price for a license forming part of the rights under the Sanofi agreement and therefore forming part of the gain. As part of the license agreements with BI, BI is responsible for conducting preclinical and clinical development, as well as for commercializing the products stemming from the agreement and funding all activities under the agreement. In the first quarter of 2016 Zealand was entitled to research funding from BI amounting to DKK 0.9 million. The funding related to the 2014 BI License Agreement and ended in March 2016.In addition, Zealand received government grants, 2017 and 2016 . |
Financial income
Financial income | 12 Months Ended |
Dec. 31, 2018 | |
Financial income | |
Financial income | Note 8 - Financial income Accounting policies Financial income includes interest from trade receivables, as well as realized and unrealized exchange rate adjustments and fair value adjustments of securities. Interest income is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2018 2017 2016 Interest income from financial assets measured at amortized costs 4,263 2,048 592 Fair value adjustments of securities 0 74 0 Exchange rate adjustments 4,705 0 0 Dividend, securities 1,020 0 0 Total financial income 9,988 2,122 592 |
Financial expenses
Financial expenses | 12 Months Ended |
Dec. 31, 2018 | |
Financial expenses | |
Financial expenses | Note 9 - Financial expenses Accounting policies Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjustments and fair value adjustments. In addition, expenses related to the royalty bond are amortized over the expected duration of the bond and recognized as financial expenses. The royalty bond is described further in note 20. Interest expense is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2018 2017 2016 Interest expenses from financial liabilities measured at amortized costs 15,080 18,913 32,157 Amortization of financing costs 18,347 5,748 8,369 Fair value adjustments of securities 1,389 0 0 Loss on sale of securities 881 0 0 Other financial expenses 1,625 949 255 Exchange rate adjustments 0 7,899 3,575 Total financial expenses 37,322 33,509 44,356 |
Income tax benefit
Income tax benefit | 12 Months Ended |
Dec. 31, 2018 | |
Income tax benefit | |
Income tax benefit | Note 10 - Income tax benefit Accounting policies Income tax on results for the year, which comprises current tax and changes in deferred tax, is recognized in the income statement, whereas the portion attributable to entries in equity is recognized directly in equity. Current tax liabilities and current tax receivables are recognized in the statement of financial position as tax calculated on the taxable income for the year adjusted for tax on previous years’ taxable income and taxes paid on account/prepaid. Deferred tax is measured according to the statement of financial position liability method in respect of temporary differences between the carrying amount and the tax base of assets and liabilities. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to be reversed in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and pharmaceutical industry is subject to considerable risks and uncertain- ties. With exception of the one-off gain driven by the sale of Sanofi royalties and milestones in 2018, Zealand has so far reported significant losses and, consequently, has unused tax losses. Management has concluded that deferred tax assets should not be recognized at December 31, 2018 or 2017. The tax assets are currently not deemed to meet the criteria for recognition, as Management has determined that it was not probable that future taxable profit would be available against which the deferred tax assets could be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date. Income tax receivables are recognized in accordance with the Danish tax credit scheme (Skattekreditordningen). Companies covered by the tax credit scheme may obtain payment of the tax base of losses originating from research and development expenses of up to DKK 25 million. Restated Restated DKK thousand 2018 2017 2016 Net result for the year before tax 625,056 (280,758) (162,796) Tax rate 22.0 % 22.0 % 22.0 % Expected tax expenses/(benefit) 137,512 (61,767) (35,815) Difference in tax rate in subsidiary 9 0 0 Adjustment for nondeductible expenses 56 62 100 Adjustment for exercised warrants 2,228 1,732 36 Adjustment for R&D super deduction (1,427) 0 0 Tax effect on exercise of warrants (8) (688) (2,864) Tax effect on expired warrants (151) 4,407 0 Change in tax assets (not recognized) (94,445) 50,754 33,043 Total income tax expense/benefit 43,774 (5,500) (5,500) Breakdown of unrecognized deferred tax assets: Tax losses carried forward (available indefinitely) 580,932 873,515 722,186 Research and development expenses 136,755 210,148 145,822 Rights 35,849 43,019 43,019 Non-current assets 50,308 67,590 62,953 Other 79,986 104,377 102,074 Total temporary differences 883,830 1,298,649 1,076,054 Tax rate 22 % 22 % 22 % Calculated potential deferred tax asset at local tax rate 194,443 285,703 236,732 Write-down of deferred tax asset (194,443) (285,703) (236,732) Recognized deferred tax asset 0 0 0 As a consequence of tax losses from previous years, no deferred net tax assets have been recognized. Deferred tax reductions (tax assets) have not been recognized in the consolidated statement of financial position due to uncertainty as to when and whether they can be utilized. Under Danish tax legislation, Zealand was eligible to receive DKK 5.5 million in 2017 and 2016 in cash relating to the surrendered tax loss of DKK 156.5 million for 2017 and DKK 81.5 million for 2016 based on qualifying research and development expenses. These tax receipts comprise the entire current tax benefit in 2017 and 2016 respectively. As a consequence of the sale of future royalties and milestones in 2018, Zealand is no longer eligible to receive up to DKK 5.5 million in income tax benefit for 2018. The sale of future royal- ties and milestones in 2018 are considered to be a one-off transaction. As a result of the taxable income for the year, Zealand recognized an income tax expense of DKK 43.7 million, after utilization of a portion of the unrecognized deferred tax asset. |
Basic and diluted earnings per
Basic and diluted earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Basic and diluted earnings per share | |
Basic and diluted loss per share | Note 11 - Basic and diluted earnings per share Accounting policies Basic result per share Basic result per share is calculated as the net result for the period that is allocated to the parent company’s ordinary shares, divided by the weighted average number of ordinary shares outstanding. Diluted result per share Diluted result per share is calculated as the net result for the period that is allocated to the parent company’s ordinary shares, divided by the weighted average number of ordinary shares outstanding and adjusted by the dilutive effect of potential ordinary shares. The result and weighted average number of ordinary shares used in the calculation of basic and diluted result per share are as follows: Restated Restated DKK thousand 2018 2017 2016 Net result for the year 581,282 (275,258) (157,296) Net result used in the calculation of basic and diluted earnings per share 581,282 (275,258) (157,296) Weighted average number of ordinary shares 30,754,948 27,918,271 24,873,940 Weighted average number of treasury shares (64,223) (64,223) (564,223) Weighted average number of ordinary shares used in the calculation of basic earnings per share 30,690,725 27,854,048 24,309,717 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 30,696,404 27,854,048 24,309,717 Basic earnings/loss per share (DKK) 18.94 (9.88) (6.47) Diluted earnings/loss per share (DKK) 18.94 (9.88) (6.47) The following potential ordinary shares are dilutive at December 31, 2018 (anti-dilutive at December 31, 2017 and December 31, 2016) and are therefore included in the weighted average number of ordinary shares for the purpose of diluted earnings per share: 2018 2017 2016 Potential ordinary shares are included at December 31, 2018 due to dilutive effect (excluded at December 31, 2017 and 2016) related to: Outstanding warrants under the 2010 employee incentive program 218,359 429,784 728,629 Outstanding warrants under the 2015 employee incentive program 1,635,000 1,424,000 942,250 Total outstanding warrants 1,853,359 1,853,784 1,670,879 - out of which these warrants are dilutive 72,000 0 0 - out of which these warrants are anti-dilutive 1,781,359 1,853,784 1,670,879 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment | |
Property, plant and equipment | Note 12 – Property, plant and equipment Accounting policies Plant and machinery, other fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation. Cost comprises acquisition price and costs directly related to acquisition until the time when the Group starts using the asset. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight‑line method over the expected useful lives of the assets. The depreciation periods are as follows: · Leasehold improvements 5 years · Plant and machinery 5 years · Other fixtures and fittings, tools and equipment 3–5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses and Administrative expenses. At the end of each reporting period, the Company reviews the carrying amount of property, plant and equipment as well as non-current asset investments to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). If it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If a reasonable and consistent basis of allocation can be identified, assets are also allocated to cash-generating units, or allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. The recoverable amount is the higher of fair value less costs of disposal and value in use. The estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairments are recognized in a separate line in the income statement. No impairments have been recognized for 2018, 2017 or 2016. Plant and Other fixtures Leasehold DKK thousand machinery and fittings improvements Cost at January 1, 2018 53,629 4,382 10,800 Additions 2,748 1,290 0 Retirements (832) (542) 0 Cost at December 31, 2018 55,545 5,130 10,800 Depreciation at January 1, 2018 38,774 3,429 10,496 Depreciation for the year 3,941 449 118 Retirements (820) (542) 0 Depreciation at December 31, 2018 41,895 3,336 10,614 Carrying amount at December 31, 2018 13,650 1,794 186 Depreciation for the financial year has been charged as: Research and development expenses 3,941 382 100 Administrative expenses 0 67 18 Total 3,941 449 118 Cost at January 1, 2017 47,170 3,612 10,715 Adjustment to prior year 0 286 0 Additions 6,657 484 85 Retirements (198) 0 0 Cost at December 31, 2017 53,629 4,382 10,800 Depreciation at January 1, 2017 35,089 2,458 10,307 Adjustment to prior year 0 286 0 Depreciation for the year 3,883 685 189 Retirements (198) 0 0 Depreciation at December 31, 2017 38,774 3,429 10,496 Carrying amount at December 31, 2017 14,855 953 304 Depreciation for the financial year has been charged as: Research and development expenses 3,883 569 157 Administrative expenses 0 116 32 Total 3,883 685 189 |
Other investments
Other investments | 12 Months Ended |
Dec. 31, 2018 | |
Other investments | |
Other investments | Note 13 – Other investments 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. The Group's other investments consist of a USD 5.0 million (2017: USD 1.5 million) investment in Beta Bionics, Inc., the developer of iLet(TM), a fully integrated dual-hormone pump (bionic pancreas) for autonomous diabetes care. The investment in Beta Bionics, Inc. is recorded at fair value through profit and loss. This investment represents 2.0% (2017: 0.9%) ownership of Beta Bionics, Inc., and is recorded at a fair value of DKK 32.6 million as of December 31, 2018 (DKK 9.3 million as of December 31, 2017). The payment related to this investment has not been made as of December 31, 2018 and is recorded within "other liabilities". Refer to Note 21. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2018 | |
Trade receivables | |
Trade receivables | Note 14 - Trade receivables Accounting policies Trade receivables are recognized and derecognized on a settlement date basis. They are measured at nominal value less expected credit losses based on historical experience. Zealand Pharma applies the simplified approach for determining expected credit losses. Trade receivables are mainly related to milestone and royalty payments from our collaboration agreements, and are due in 30-60 days. There are no overdue receivables and the write down for expected credit losses is not material. At December 31, 2018, Zealand had trade receivables related to the milestone from Protagonist. At December 31, 2017, trade receivables related to accrued royalty income on sales of Lyxumia ® and Soliqua ® . |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid expenses | |
Prepaid expenses | Note 15 - Prepaid expenses Accounting policies Prepaid expenses comprise amounts paid in respect of goods or services to be received in subsequent financial periods. Prepayments are measured at cost and are tested for impairment at the balance sheet date. |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Other receivables | |
Other receivables | Note 16 - Other receivables Accounting policies Other receivables are measured on initial recognition at fair value and subsequently at amortized cost, usually equal to the nominal value. DKK thousand 2018 2017 VAT 2,980 3,378 Other 388 1,601 Total other receivables 3,368 4,979 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Securities | |
Securities | Note 17 - Securities Accounting policies The Group’s securities portfolio comprises a bond portfolio. The investment strategy allows for regular sales and Management has determined that the “hold to collect” or “hold to collect and sell” criteria are not met. Consequently, the securities are classified at fair value through profit or loss . See Note 23, Interest rate risk. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents | |
Cash and cash equivalents | Note 18 - Cash and cash equivalents Accounting policies Cash is measured on initial recognition at fair value and subsequently at amortized cost, usually equal to the nominal value. DKK thousand 2018 2017 DKK 343,585 12,824 USD 96,526 252,884 EUR 420,524 323,010 Total cash and cash equivalents 860,635 588,718 In addition, at December 31, 2017, restricted cash amounted to DKK 5.9 million. See also note 20. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2018 | |
Share capital | |
Share capital | Note 19 - Share capital Accounting policies Consideration paid and proceeds from selling treasury shares recognized directly in equity within retained earnings. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the orginal cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. Share Capital Share capital at January 1, 2018 30,751,327 Capital increase on September 14, 2018 7,500 Capital increase on December 14, 2018 28,000 Share capital at December 31, 2018 30,786,827 Share capital at January 1, 2017 26,142,365 Capital increase on March 23, 2017 9,500 Capital increase on April 13, 2017 22,000 Capital increase on May 30, 2017 5,000 Capital increase on June 15, 2017 8,537 Capital increase on August 14, 2017 4,375,000 Capital increase on August 18, 2017 156,250 Capital increase on September 1, 2017 1,500 Capital increase on September 22, 2017 28,675 Capital increase on November 20, 2017 2,500 Share capital at December 31, 2017 30,751,327 Share capital Share capital at January 1, 2016 24,352,769 Capital increase on March 30, 2016 46,613 Capital increase on April 14, 2016 50,453 Capital increase on May 26, 2016 43,071 Capital increase on June 16, 2016 41,269 Capital increase on September 6, 2016 7,400 Capital increase on September 23, 2016 45,457 Capital increase on September 29, 2016 1,475,221 Capital increase on November 17, 2016 8,200 Capital increase on November 25, 2016 57,913 Capital increase on December 8, 2016 13,999 Share capital at December 31, 2016 26,142,365 Share capital at January 1, 2015 23,193,047 Capital increase on March 21, 2015 120,833 Capital increase on April 11, 2015 106,220 Capital increase on June 2, 2015 51,487 Capital increase on June 20, 2015 46,521 Capital increase on September 8, 2015 383,190 Capital increase on September 26, 2015 150,702 Capital increase on November 4, 2015 60,843 Capital increase on November 13, 2015 176,456 Capital increase on December 4, 2015 63,470 Share capital at December 31, 2015 24,352,769 There were no changes in share capital in 2014. At December 31, 2018, the total number of authorized ordinary shares was 32,640,186 (2017: 32,840,494). The share capital at December 31, 2018 consisted of 30,786,827 (2017: 30,751,327) ordinary shares issued of DKK 1 each. The parent company has only one class of shares, and all shares rank equally. The shares are negotiable instruments with no restrictions on their transferability. All shares have been fully paid. On August 9, 2017, American Depositary Shares (ADSs) representing Zealand shares started trading on the Nasdaq Global Select Market in the U.S. under the symbol ZEAL. On August 14, 2017, Zealand registered a capital increase of 4,375,000 new shares and completed its initial public offering on Nasdaq Global Select Market in the U.S. Following full exercise of a 15% overallotment option, a further 156,250 new shares were issued on August 15, 2017. In addition, 500,000 treasury shares were sold. The total gross proceeds of the offering amounted to DKK 567.1 million. Other capital increases in 2018 and 2017 related to exercise of warrant programs. Expenses directly related to capital increases are deducted from equity. In 2018 expenses of DKK 0.1 million related to the exercise of warrant programs. In 2017 expenses related to the initial public offering on August 14 and 15, 2017 amounted to DKK 71.5 million, and DKK 0.1 million related to the exercise of warrant programs. At December 31, 2018, there were 64,223 treasury shares (2017: 64,223), equivalent to 0.2% (2017: 0.2%) of the share capital and corresponding to a market value of DKK 5.3 million (2017: DKK 5.5 million). 500,000 treasury shares were sold in 2017 in relation to the initial public offering. The treasury shares were purchased for DKK 1.3 million in 1999-2001 and DKK 0.4 million in 2011, giving a total purchase cost of DKK 1.7 million. Rules on changing the Articles of Association All resolutions put to the vote of shareholders at general meetings are subject to adoption by a simple majority of votes, unless the Danish Companies Act (Selskabsloven) or our Articles of Association prescribe other requirements. |
Royalty bond
Royalty bond | 12 Months Ended |
Dec. 31, 2018 | |
Royalty bond | |
Royalty bond | Note 20 - Royalty bond Accounting policies The royalty bond was initially measured at the time of borrowing at fair value less any transaction costs. In subsequent periods, the royalty bond has been measured at amortized cost corresponding to the capitalized value using the effective interest method. Consequently, the difference between the proceeds of the loan and the amount to be repaid is recognized as a financial expense in the income statement over the term of the loan. In December 2014, Zealand established four 100%-owned subsidiaries: ZP Holding SPV K/S, ZP General Partner 1 ApS, ZP SPV 1 K/S and ZP General Partner 2 ApS. The purpose of this structure was to make the royalty bond nonrecourse for Zealand and at the same time protect the bond investors from a parent company bankruptcy. On December 11, 2014, ZP SPV 1 K/S issued the royalty bond, which represents senior secured notes issued at par with a USD-denominated principal amount of USD 50 million (DKK 299.3 million at issue) and a stated fixed interest rate of 9.375% per annum. The royalty bond falls due on March 15, 2026. Concurrent with the issue of the royalty bond, Zealand contributed the Sanofi License Agreement to ZP Holding SPV K/S, among other things. See Note 2 Revenue, Accounting for the Sanofi License Agreement. Among the rights arising under the License Agreement were the rights to receive patent royalties, including relating to Adlyxin®/Lyxumia®, a single remaining milestone payment relating to Adlyxin®/Lyxumia® and three regulatory event milestone payments in 2016 and January 2017 relating to certain other products containing lixisenatide combined with one or more other active pharmaceutical ingredients (“Group 2 Products”). ZP Holding SPV K/S sold and transferred to ZP SPV 1 K/S an interest in such royalties and milestone payments equal to 86.5% of the amount of such royalties payable from and after December 11, 2014, and 86.5% of such milestone payments. Under the License Agreement, royalties are payable by Sanofi in EUR and at a varying percentage of annual net sales as defined in the License Agreement. In addition, at December 11, 2014, the aggregate remaining regulatory milestone payments (86.5% of which were transferred to ZP SPV 1 K/S) amounted to USD 60 million, plus value added taxes, payable subject to various terms and conditions of the License Agreement. In addition, at December 31, 2017 and 2016, restricted cash held by the Company also related to the Interest Reserve Account, established upon issue of the royalty bond. The source of payment of the principal of and interest on the royalty bond is ZP SPV 1 K/S’ interest on Adlyxin®/Lyxumia® royalties. Interest on the senior secured notes is payable biannually on March 15 and September 15 each year. The principal of the royalty bond was to be paid from available cash in ZP SPV 1 K/S commencing on the third payment date (March 15, 2016). Beginning with the third payment date, the royalty bond indenture states that available royalty revenue in ZP SPV 1 K/S in excess of interest payments is to be used for principal repayments of the royalty bond at each payment date. Upon full repayment of the royalty bond, the bondholders have no rights to future royalty payments. It is possible for ZP SPV 1 K/S to make voluntary repayments from March 2016, subject to various provisions and at various redemption premiums established in the royalty bond indenture. In February 2017, USD 8.7 million (DKK 60.7 million) was transferred to the restricted cash account following receipt of the USD 10 million milestone payment from Sanofi related to the approval of Suliqua® in the EU. On March 15, 2017, Zealand used restricted cash of USD 25 million (DKK 175 million) to repay half of the outstanding bond. Furthermore, the remaining restricted cash of USD 26.9 million (DKK 184 million) held as collateral for the bond was released to Zealand in exchange for a parent company guarantee. The maturity date of the royalty bond was also changed from March 15, 2026 to March 15, 2021. As a consequence of the repayment of the royalty bond in March 2017, the carrying amount of the royalty bond was adjusted. This resulted in a loss of DKK 11.2 million, which was recognized in the consolidated income statement for 2017 in net financial items. Furthermore, a fee of DKK 5.2 million was paid due to the repayment and amendment of the financing agreement. DKK 3.5 million of this fee has been capitalized, and DKK 1.7 million was recognized in the consolidated income statement for 2017 in financial expenses. As a consequence of deferrals of the expected repayment of the royalty bond at December 31, 2017, the carrying amount of the royalty bond was adjusted again. This had a positive impact on net financial items of DKK 10.8 million, which was recognized in the consolidated income statement for 2017 in financial expenses. On September 6, 2018 Zealand entered into an agreement to sell future royalties and USD 85 million of potential commercial milestones for Soliqua ® 100/33/ Suliqua ® and Lyxumia ® /Ad- lyxin ® to Royalty Pharma. Zealand has received USD 205.0 million (DKK 1,310.2 million) upon closing of the transaction on September 17, 2018. Zealand has also redeemed the outstanding royalty bond of USD 24.7 million (DKK 157.6 million), after which Zealand is debt free. Zealand will remain eligible for a payment from Sanofi up to USD 15.0 million, expected in 2020 (see note 22). As of December 31, 2018, total outstanding debt on the royalty bond is DKK 0 million (2017: DKK 153.8 million). In the consolidated statements of financial position, this is therefore presented as DKK 0 million (2017:DKK 135.7 million), net of capitalized financing costs of DKK 0 million (2017: DKK 18.1 million). Accrued interest expenses related to the royalty bond amount to DKK 0 million (2017: DKK 4.3 million) and are recognized in other liabilities. The change in the balance of the royalty bond from December 31, 2016 to December 31, 2017 was attributable to movements in the USD/DKK exchange rate and repayment of 50.4% of the principal. The table below details changes in the Group’s liabilities arising from financing activities regarding the royalty bond, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statements of cash flows as cash flows from financing activities. DKK thousand January 1, 2018 135,734 Financing cash flows (repayment) (158,311) Amortization of financing costs 18,347 Exchange rate adjustments 4,230 December 31, 2018 0 January 1, 2017 332,243 Financing cash flows (repayment) (176,360) Amortization of financing costs 5,748 Exchange rate adjustments (25,897) December 31, 2017 135,734 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities | |
Other liabilities | Note 21 - Other liabilities Accounting policies Financial liabilities are recognized initially at fair value less transaction costs. In subsequent periods, financial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method. Provisions are measured as the best estimate of the costs needed at the balance sheet date to settle obligations. Provisions also include contingent payments on the conclusion of agreements, contracts, etc. Restated DKK thousand 2018 2017 Severance payment 925 896 Employee benefits 34,971 28,165 Royalty payable to third party 6,682 763 Interest payable on royalty bond 0 4,295 Investment in Beta Bionics 22,803 0 Other payables 15,483 7,335 Total other liabilities 80,864 41,454 |
Contingent assets, liabilities
Contingent assets, liabilities and other contractual obligations | 12 Months Ended |
Dec. 31, 2018 | |
Contingent assets, liabilities and other contractual obligations | |
Contingent assets, liabilities and other contractual obligations | Note 22 - Contingent assets, liabilities and other contractual obligations Contingent assets include potential future milestone payments. Contingent liabilities and other contractual obligations include contractual obligations related to agreements with contract research organizations (CROs) and lease commitments. Accounting policies Contingent assets and liabilities are disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote . At December 31, 2018, Zealand is eligible for a payment from Sanofi of up to USD 15.0 million, expected in 2020. However, it is Management’s opinion that the amount of any payment cannot be determined on a sufficiently reliable basis, and therefore have not recognized an asset in the statement of financial position of the Group. At December 31, 2018, total contractual obligations related to agreements with CROs amounted to DKK 245.6 million (DKK 156.4 million for 2019 and DKK 89.2 million for the years 2020 up to and including 2022). At December 31, 2017, total contractual obligations related to agreements with CROs amounted to DKK 76.6 million (DKK 52.6 million for 2018 and DKK 24.0 million for the years 2019 up to and including 2020). Accounting policies Lease agreements are classified as either finance or operating leases based on the criteria in IAS 17 Leases. Lease payments under operating leases and other rental agreements are recognized in the income statement over the term of the agreements. The Group has not entered into any finance leases. DKK thousand 2018 2017 Total future minimum lease payments related to operating lease agreements: Within 1 year 6,945 4,292 1-3 years 31,098 2,593 4-5 years 29,464 117 Total 67,507 7,002 Operating lease agreements include rental agreement of building, company cars and office equipment. Based on management’s analysis according to the accounting policy, all leases have been determined to be operating lease commitments. The leases are subject to terms of interminability of between 6 and 156 months. In 2018, DKK 7.9 million (2017: DKK 7.4 million and 2016: DKK 7.4 million) was recognized as an expense in the income statement, with DKK 6.7 million (2017: DKK 6.1 million and 2016: DKK 6.1 million) allocated to Research and development expenses and DKK 1.2 million (2017: DKK 1.3 million and 2016: DKK 1.3 million) to Administrative expenses. |
Financial risks
Financial risks | 12 Months Ended |
Dec. 31, 2018 | |
Financial risks | |
Financial risks | Note 23 - Financial risks The objective of Zealand’s financial management policy is to reduce the Group’s sensitivity to fluctuations in exchange rates, interest rates, credit rating and liquidity. Zealand’s financial management policy has been endorsed by Zealand’s Audit Committee and ultimately approved by Zealand’s Board of Directors. Zealand receives milestone payments from its current partners in USD and EUR. Zealand is mainly exposed to research and development expenses. As such, Zealand is exposed to various financial risks, including foreign exchange rate risk, interest rate risk, credit risk and liquidity risk. Capital structure Zealand aims to have an adequate capital structure in relation to the underlying operating results and research and development projects, so that it is always possible to provide sufficient capital to support operations and long-term growth targets. The Board of Directors finds that the current capital and share structure is appropriate for the shareholders and the Group. Exchange rate risk Most of Zealand’s financial transactions are in DKK, USD and EUR. Due to Denmark’s long-standing fixed exchange rate policy vis-à-vis the EUR, Zealand has eval- uated that there is no transaction exposure or exchange rate risk regarding transactions in EUR. Zealand’s milestone payments have been agreed in foreign currencies, namely USD and EUR. However, as milestone payments are unpredictable in terms of timing, the payments are not included in the basic exchange rate risk evaluation. As Zealand from time to time conducts clinical trials and toxicology studies in the U.S., Zealand will be exposed to the exchange rate fluctuations and risks associated with transactions in USD. To date, Zealand’s policy has been to manage the transaction and translation risk associated with the USD passively, placing the revenue received from milestone payments in USD in a USD account for future payment of Zealand’s expenses denominated in USD, covering payments for the next 12-24 months and thus matching Zealand’s assets with its liabilities. Up until September 2018, a USD denominated royalty bond was outstanding which up until this point in time established a significant exchange rate risk vs. USD. After redemption of the remaining outstanding amount, USD 24.7 million, Zealand is debt free. As of December 31, 2018, Zealand holds DKK 96.5 million (2017: 252.9) of its cash in USD. Interest rate risk Zealand has a policy of avoiding any financial instrument that exposes the Group to any un- wanted financial risk. As of December 31, 2018, Zealand is debt free. Up until this point in the Zealand had a fixed rate royalty bond. During 2018, all cash has been held in current bank accounts in USD, EUR and DKK. Interest rates on bank deposits in DKK and EUR have been negative for most of 2018, while USD ac- counts have generated a low level of positive interest. During 2018, Zealand has invested in securities. The Group’s securities portfolio comprises bonds in Danish kroner. The average weighted duration of the bond portfolio on the balance sheet date was 3 years. The bond portfolio has fixed interest rates. Credit risk Zealand is exposed to credit risk in respect of receivables, bank balances and bonds. The maximum credit risk corresponds to the carrying amount. Management believes that credit risk is limited, as the counterparties to the trade receivables are large global pharmaceutical companies. Cash and bonds are not deemed to be subject to credit risk, as the counterparties are banks with investment-grade ratings (i.e. BBB- or higher from Standard & Poor’s). Liquidity risk The purpose of Zealand’s cash management is to ensure that the Group has sufficient and flexible financial resources at its disposal at all times. Zealand’s short-term liquidity is managed and monitored by means of the Company’s quarterly budget revisions to balance the demand for liquidity and maximize the Company’s interest income by matching its free cash in fixed-rate, fixed-term bank deposits and bonds with its expected future cash burn. Sensitivity analysis The table shows the effect on profit/loss and equity of reasonably likely changes in the financial variables in the statement of financial position. 2018 2017 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 9,627 +/- 10% 12,304 Interest rate +/- 100b.p 7,974 +/- 100b.p 5,562 Contractual maturity (liquidity risk) A breakdown of the Group’s aggregate liquidity risk on financial assets and liabilities is given below. The following table details the Group’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The table has been prepared using the undiscounted cash flows for financial liabilities, based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that the specific timing of interest or principal flows is dependent on future events, the table has been prepared based on Management’s best estimate of such timing at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay. There are no interest cash-flows to be included in the table below for the existing financial liabilities as they are not interest-bearing financial liabilities. DKK thousand <6 months 6<12 months 1-5 years Total Trade payables 32,652 0 0 32,652 Other 80,864 0 0 80,864 Total financial liabilities at December 31, 2018 113,516 0 0 113,516 Trade payables 29,428 0 0 29,428 Royalty bond repayments 1,401 1,347 132,986 135,734 Interest payments on royalty bond 7,249 7,302 35,140 49,691 Other (restated) 34,242 0 0 34,242 Total financial liabilities at December 31, 2017 72,320 8,649 168,126 249,095 All cash flows are nondiscounted and include all liabilities under contracts. Interest payments on the royalty bond in 2017 are calculated using the fixed interest rate (9.375%) and the expected payback time as of each balance sheet date. Zealand has redeemed the outstanding royalty bond in September, 2018. Fair value measurement of financial instruments Restated DKK thousand 2018 2017 Categories of financial instruments Trade receivables 3,274 5,679 Other receivables 3,368 4,979 Restricted cash 0 5,892 Cash and cash equivalents 860,635 588,718 Financial assets at amortised cost 1) 867,277 605,268 Securities 298,611 75,111 Other investments 32,582 9,312 Financial assets measured at fair value 331,193 84,423 Royalty bond 0 135,734 Trade payables 32,652 29,428 Other liabilities 80,864 41,454 Financial liabilities measured at amortized cost 113,516 206,616 1) Classified as loans and receivables under IAS 39 The fair value of securities is based on Level 1 in the fair value hierarchy. The fair value of other investments is based on level 3 in the fair value hierarchy. The carrying amount of financial assets and financial liabilities approximated the fair value. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
Related parties | |
Related parties | Note 24 - Related parties Zealand has no related parties with controlling interest. Zealand’s other related parties comprise the Company’s Board of Directors and Corporate Management. Remuneration to the Board of Directors and Corporate Management is described in note 6. No further transactions with related parties were conducted during the year. Ownership The following shareholders are registered in Zealand’s register of shareholders as owning minimum 5% of the voting rights or minimum 5% of the share capital (1 share equals 1 vote) at December 31, 2018: · Sunstone Capital A/S, Copenhagen, Denmark · Wellington Management Company LLP, Boston, U.S. · Van Herk Investments, Rotterdam, Netherlands · Bank Julius Bär & Co. AG, Zurich, Switzerland |
Adjustments for non-cash items
Adjustments for non-cash items | 12 Months Ended |
Dec. 31, 2018 | |
Adjustments for non-cash items | |
Adjustments for non-cash items | Note 25 - Adjustments for non‑cash items DKK thousand 2018 2017 2016 Depreciation 4,508 4,757 5,410 Warrant compensation expenses 17,468 20,156 22,727 Income tax receipt 0 (5,500) (5,500) Income tax expense 43,774 0 0 Financial income 0 (2,048) (592) Financial expenses 19,736 25,610 40,781 Non paid royalty expenses regarding sale of future royalties and milestones 6,575 0 0 Exchange rate adjustments 9,865 (17,596) (5,141) Total adjustments 101,926 25,379 57,685 |
Change in working capital
Change in working capital | 12 Months Ended |
Dec. 31, 2018 | |
Change in working capital | |
Change in working capital | Note 26 - Change in working capital Restated Restated DKK thousand 2018 2017 2016 Increase/ decrease in receivables (471) 1,306 143,212 Increase/ decrease in payables 13,256 (12,610) 13,626 Change in working capital 12,785 (11,304) 156,838 |
Significant events after the ba
Significant events after the balance sheet date | 12 Months Ended |
Dec. 31, 2018 | |
Significant events after the balance sheet date | |
Significant events after the balance sheet date | Note 27 - Significant events after the balance sheet date There have been no significant events between December 31, 2018 and the date of approval of these financial statements that would require a change to or additional disclosure in the consolidated financial statements. |
Approval of the annual report
Approval of the annual report | 12 Months Ended |
Dec. 31, 2018 | |
Approval of the annual report | |
Approval of the annual report | Note 28 - Approval of the annual report The Annual Report has been approved by the Board of Directors and Executive Management and authorized for issue on March 7, 2019. |
Significant accounting polici_2
Significant accounting policies and significant accounting estimates and assessments (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies, and significant accounting estimates and assessments | |
Basis of consolidation | Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. |
Principles of consolidation | Principles of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and the individual subsidiaries, which are based on uniform accounting policies and accounting periods in all Group entities. Consolidation of Group entities is performed after elimination of all intra-Group transactions, balances, income and expenses. |
Foreign currency translation | Foreign currency translation Transactions denominated in foreign currencies are translated at the exchange rates on the transaction dates. Exchange differences arising between the rate on the transaction date and the rate on the payment day are recognized in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated by applying the exchange rates at the balance sheet date. Differences arising between the rate at the balance sheet date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. Non-monetary assets purchased in foreign currencies are measured at the exchange rate on the transaction date. |
Consolidated financial statements | Consolidated financial statements Income statement The income statement is classified by function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with product candidates or geographical markets. Consequently, there is no segment reporting concerning business areas or geographical areas. Statement of financial position Financial assets Financial assets include receivables, securities and cash. Financial assets are divided into categories of which the following are relevant for the Group: 1. Financial assets at amortised cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. 2. Financial assets at fair value through the income statement, which are securities held in a business model whose purpose is to regularly sell securities within the portfolio. 3. Equity investments. These investments are measured at fair value through profit or loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the income statement are initially recognized at fair value, plus transaction costs. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the net loss for the year. The statement shows the cash flows broken down into operating, investing and financing activities, cash and cash equivalents at the beginning and end of the year, and the impact of the calculated cash flows on cash and cash equivalents. Cash flows in foreign currencies are translated into Danish kroner at the exchange rate on the transaction date. Cash flow from operating activities Cash flow from operating activities is presented indirectly and is calculated as the net loss adjusted for sale of royalties, non‑cash operating items, changes in net working capital, financial items paid and income tax benefits received and paid. Cash flow from investing activities Cash flow from investing activities includes cash flows from the sale of future royalties and milestones relating to the Sanofi license, purchase and sale of property, plant and equipment, investments and deposits, as well as transfers to and from restricted cash related to the royalty bond. Cash flow from financing activities Cash flow from financing activities includes new equity, loan financing, sale of treasury shares and funds from private placements. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. |
Significant accounting estimates and assessments | Significant accounting estimates and assessments In preparing the financial statements, Management makes a number of accounting estimates that form the basis for the recognition and measurement of our assets and liabilities. In applying our accounting policies, Management 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. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertainties that may result in deviations in actual results compared with estimates. No significant changes have been made to accounting estimates and assessments in 2018. The following are the most significant accounting estimates and assessments applied by Management in these financial statements: |
Revenue recognition | Revenue recognition Revenue comprises license payments, milestone payments and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Milestone payments are related to the collaborative research agreements with commercial partners when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the cus- tomer simultaneously with delivery is recognized along with delivery of the services. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. Revenue comprises license payments, milestone payments and royalty income. License payments which provide the buyer with the right to use the license as it exists at the date of transfer are recognized upon transfer of the associated licensing rights at the point at which the buyer obtains the right to use the license. Milestone payments are related to the collaborative research agreements with commercial partners when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. |
Employee incentive programs | Employee incentive programs In accordance with IFRS 2 Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement.The fair value of each warrant granted during the year is calculated using the Black–Scholes option pricing model. This requires the input of subjective assumptions such as: · The expected stock price volatility, which is based on the historical volatility of Zealand’s share price · The risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity of five years · The duration of the warrants, which is assumed to be until the end of the last exercise period The total fair value of the warrants is recognized in the income statement over the vesting period, if any. An adjustment is made to reflect an expected attrition rate during the vesting pe- riod. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. The value of services received as consideration for granted warrants is measured at the fair value of the warrant. The fair value is determined at the grant date and is recognized in the income statement as employee benefit expense over the period in which the warrants vest. The offsetting entry to this is recognized under equity. an estimate is made of the number of warrants expected to vest. Subsequently, an adjustment is made for changes in the estimate of the number of warrants which will vest, so the total expense is equal to fair value of the actual number of warrants which vest. The fair value of warrants granted is estimated using the Black– Scholes pricing model. |
Restatements | Restatement The Company has been eligible to receive royalty revenue of 10% on Sanofi’s net sales of Lyxumia ® / Adlyxin ® (lixisenatide) in countries with a valid IP protection for Zealand and potentially up to USD 100 million in commercial milestones. During Q2 2018 it was determined that royalty revenue from Sanofi recognized from 2013 until Q1 2018 included DKK 17.1 million of royalty revenue on net sales in countries with no valid IP protection for Zealand and therefore revenue has been overstated in these periods. As a consequence of this, royalty expenses from 2013 until Q1 2018 has been overstated in this same period. Such misstatements have been corrected with retrospective impact and thus comparable periods as of and for the years ended December 31, 2017, 2016 and 2015 have been restated. The nature and impact of each restatement per line item in the consolidated income statements and consolidated statement of financial position for Zealand is presented below. Income statement: A) Revenue Royalty revenue has been restated as Zealand has previously recognized royalty revenue on net sales in countries with no valid IP protection. B) Royalty expenses Royalty expenses comprise contractual amounts due to third parties that are derived from royalty revenue earned from the corresponding collaboration agreements. The restatement on royalty revenue therefore leads to a corresponding restatement of royalty expenses. Statement of financial position: C) Trade receivables and other liabilities The restatement related to trade receivables and other liabilities corresponds to the restatement on royalty revenue and royalty expenses, as discussed in tickmark A and B. D) Retained loss The restatement related to net loss for the period amounts to the combined impact of the restatements on royalty revenue and royalty expenses from 2013 through December 2016. Statement of cash flow: The impact of the restatement on the statement of cash flow is solely a reclassification between “Net loss for the period” and “Change in working capital" in the amount of DKK 3.0, 3.4 and 4.4 million respectively as of December 31, 2017, 2016 and 2015. The restatement related to net loss for the period amounts to the net impact of the restatements for the respective years on royalty revenue and royalty expenses while the restatement related to working capital for the period amounts to the net impact of the misstatements in trade receivables and other liabilities in the statement of financial position. Hence, there is no impact on the cash flow from operating activities. Based on the above outlined factors, the Company deemed irrelevant to present restated statements of cash flow for the years ended December 31, 2017 and 2016. |
Royalty expenses | Royalty expenses comprise contractual amounts payable to third parties that are derived from the milestone payments and royalty income earned from the corresponding collaboration agreements. |
Research, development and administrative expenses | Research and development expenses Research expenses comprise salaries, contributions to pension schemes and other expenses, including patent expenses, as well as depreciation and amortization directly attributable to the Group’s research activities. Research expenses are recognized in the income statement as incurred. Development expenses comprise salaries, contributions to pension schemes and other expenses, including depreciation and amortization, directly attributable to the Group’s development activities. Development expenses are recognized in the income statement as incurred. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associated undertakings. Accounting estimates and assessments related to research and development expenses A development project involves a single product candidate undergoing a large number of tests to demonstrate its safety profile and its effect on human beings, prior to obtaining the necessary final approval for the product from the appropriate authorities. The future economic benefits associated with the individual development projects are dependent on obtaining such approval. Considering the significant risk and duration of the development period for biological products, Management has concluded that whether the intangible asset will generate probable future economic benefits cannot be estimated with sufficient certainty until the project has been finalized and the necessary final regulatory approval of the product has been obtained. Accordingly, Zealand has not recognized such assets at this time, and all research and development expenses are therefore recognized in the income statement when incurred. Capitalization of development costs assumes that, in the Group’s opinion, the development of the technology or the product has been completed, all necessary public registrations and marketing approvals have been received, and expenses can be reliably measured. Furthermore, it must be established that the technology or the product can be commercialized and that the future income from the product can cover not only the production, selling and administerative expenses but also development expenses. Zealand has not capitalized any development expenses in 2018, 2017 or 2016. Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to company premises, operating leases, investor relations, etc. Overhead expenses have been allocated to research and development or administrative expenses according to the number of employees in each department, based on the respective employees’ associated undertakings. |
Other operating income | Other operating income comprises gains from sale of intangible assets, research funding from business partners and government grants. A gain from disposal of intangible assets is recognized when control over the asset is transferred to the buyer. The gain is determined as the disposal proceeds less the carrying amount, if any, and disposal costs. Research funding is recognized in the period when the research activities have been performed, and government grants are recognized periodically when the work supported by the grant has been reported. Government grants are recognized when a final and firm right to the grant has been obtained. Government grants are included in Other operating income, as the grants are considered to be cost refunds. |
Financial income | Financial income includes interest from trade receivables, as well as realized and unrealized exchange rate adjustments and fair value adjustments of securities. Interest income is recognized in the income statement in accordance with the effective interest rate method. |
Financial expenses | Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjustments and fair value adjustments. In addition, expenses related to the royalty bond are amortized over the expected duration of the bond and recognized as financial expenses. The royalty bond is described further in note 20. Interest expense is recognized in the income statement in accordance with the effective interest rate method. |
Income tax benefit | Income tax on results for the year, which comprises current tax and changes in deferred tax, is recognized in the income statement, whereas the portion attributable to entries in equity is recognized directly in equity. Current tax liabilities and current tax receivables are recognized in the statement of financial position as tax calculated on the taxable income for the year adjusted for tax on previous years’ taxable income and taxes paid on account/prepaid. Deferred tax is measured according to the statement of financial position liability method in respect of temporary differences between the carrying amount and the tax base of assets and liabilities. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to be reversed in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and pharmaceutical industry is subject to considerable risks and uncertain- ties. With exception of the one-off gain driven by the sale of Sanofi royalties and milestones in 2018, Zealand has so far reported significant losses and, consequently, has unused tax losses. Management has concluded that deferred tax assets should not be recognized at December 31, 2018 or 2017. The tax assets are currently not deemed to meet the criteria for recognition, as Management has determined that it was not probable that future taxable profit would be available against which the deferred tax assets could be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date. Income tax receivables are recognized in accordance with the Danish tax credit scheme (Skattekreditordningen). Companies covered by the tax credit scheme may obtain payment of the tax base of losses originating from research and development expenses of up to DKK 25 million. |
Basic and diluted loss per share | Basic result per share Basic result per share is calculated as the net result for the period that is allocated to the parent company’s ordinary shares, divided by the weighted average number of ordinary shares outstanding. Diluted result per share Diluted result per share is calculated as the net result for the period that is allocated to the parent company’s ordinary shares, divided by the weighted average number of ordinary shares outstanding and adjusted by the dilutive effect of potential ordinary shares. |
Property, plant and equipment | Plant and machinery, other fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation. Cost comprises acquisition price and costs directly related to acquisition until the time when the Group starts using the asset. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight‑line method over the expected useful lives of the assets. The depreciation periods are as follows: · Leasehold improvements 5 years · Plant and machinery 5 years · Other fixtures and fittings, tools and equipment 3–5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses and Administrative expenses. At the end of each reporting period, the Company reviews the carrying amount of property, plant and equipment as well as non-current asset investments to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). If it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If a reasonable and consistent basis of allocation can be identified, assets are also allocated to cash-generating units, or allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. The recoverable amount is the higher of fair value less costs of disposal and value in use. The estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairments are recognized in a separate line in the income statement. No impairments have been recognized for 2018, 2017 or 2016. |
Other investments | 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. |
Trade receivables | Trade receivables are recognized and derecognized on a settlement date basis. They are measured at nominal value less expected credit losses based on historical experience. Zealand Pharma applies the simplified approach for determining expected credit losses. |
Prepaid expenses | Prepaid expenses comprise amounts paid in respect of goods or services to be received in subsequent financial periods. Prepayments are measured at cost and are tested for impairment at the balance sheet date. |
Other receivables | Other receivables are measured on initial recognition at fair value and subsequently at amortized cost, usually equal to the nominal value. |
Securities | The Group’s securities portfolio comprises a bond portfolio. The investment strategy allows for regular sales and Management has determined that the “hold to collect” or “hold to collect and sell” criteria are not met. Consequently, the securities are classified at fair value through profit or loss . See Note 23, Interest rate risk. |
Cash and cash equivalents | Cash is measured on initial recognition at fair value and subsequently at amortized cost, usually equal to the nominal value. |
Share capital | Consideration paid and proceeds from selling treasury shares recognized directly in equity within retained earnings. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the orginal cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. |
Royalty bond | The royalty bond was initially measured at the time of borrowing at fair value less any transaction costs. In subsequent periods, the royalty bond has been measured at amortized cost corresponding to the capitalized value using the effective interest method. Consequently, the difference between the proceeds of the loan and the amount to be repaid is recognized as a financial expense in the income statement over the term of the loan. |
Other liabilities | Financial liabilities are recognized initially at fair value less transaction costs. In subsequent periods, financial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method. Provisions are measured as the best estimate of the costs needed at the balance sheet date to settle obligations. Provisions also include contingent payments on the conclusion of agreements, contracts, etc. |
Contingent assets, liabilities and other contractual obligations | Contingent assets and liabilities are disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote . Lease agreements are classified as either finance or operating leases based on the criteria in IAS 17 Leases. Lease payments under operating leases and other rental agreements are recognized in the income statement over the term of the agreements. The Group has not entered into any finance leases. |
Overview of Business (Tables)
Overview of Business (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business overview | |
Schedule of Ownership and Voting rights in Subsidiaries | Company summary Domicile Ownership Voting rights Zealand Pharma A/S subsidiaries ZP Holding SPV K/S Denmark 100 % 100 % ZP General Partner 1 ApS Denmark 100 % 100 % Zealand Pharma US Inc. United States 100 % 100 % ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S Denmark 100 % 100 % ZP General Partner 2 ApS Denmark 100 % 100 % |
Significant accounting polici_3
Significant accounting policies and significant accounting estimates and assessments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies, and significant accounting estimates and assessments | |
Schedule of Condensed consolidated income statement | As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 Revenue 139,775 (3,453) A 136,322 Royalty expenses (14,629) 466 B (14,163) Research and development expenses (324,667) 0 (324,667) Administrative expenses (47,470) 0 (47,470) Other operating income 607 0 607 Operating loss (246,384) (2,987) (249,371) Financial income 2,122 0 2,122 Financial expenses (33,509) 0 (33,509) Loss before tax (277,771) (2,987) (280,758) Income tax benefit 5,500 0 5,500 Net loss for the period (272,271) (2,987) (275,258) Loss per share - basic (DKK) (9.77) (0.11) (9.88) Loss per share - diluted (DKK) (9.77) (0.11) (9.88) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 Revenue 234,778 (3,914) A 230,864 Royalty expenses (31,459) 528 B (30,931) Research and development expenses (268,159) 0 (268,159) Administrative expenses (52,503) 0 (52,503) Other operating income 1,697 0 1,697 Operating loss (115,646) (3,386) (119,032) Financial income 592 0 592 Financial expenses (44,356) 0 (44,356) Loss before tax (159,410) (3,386) (162,796) Income tax benefit 5,500 0 5,500 Net loss for the period (153,910) (3,386) (157,296) Loss per share - basic (DKK) (6.33) (0.14) (6.47) Loss per share - diluted (DKK) (6.33) (0.14) (6.47) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 Revenue 187,677 (5,104) A 182,573 Royalty expenses (22,267) 689 B (21,578) Research and development expenses (217,741) 0 (217,741) Administrative expenses (41,824) 0 (41,824) Other operating income 12,828 0 12,828 Operating loss (81,327) (4,415) (85,742) Financial income 3,889 0 3,889 Financial expenses (42,394) 0 (42,394) Loss before tax (119,832) (4,415) (124,247) Income tax benefit 5,875 0 5,875 Net loss for the period (113,957) (4,415) (118,372) Loss per share - basic (DKK) (4.94) (0.19) (5.13) Loss per share - diluted (DKK) (4.94) (0.19) (5.13) |
Schedule of Condensed consolidated statements of comprehensive income | As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 Net loss for the period (272,271) (2,987) (275,258) Other comprehensive income (loss) 0 0 0 Net loss for the period (272,271) (2,987) (275,258) As originally Amount as reatported, adjusted, December31, Restate- December 31 DKK thousand 2016 ment Tickmark 2016 Net loss for the period (153,910) (3,386) (157,296) Other comprehensive income (loss) 0 0 0 Net loss for the period (153,910) (3,386) (157,296) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 Net loss for the period (113,957) (4,415) (118,372) Other comprehensive income (loss) 0 0 0 Net loss for the period (113,957) (4,415) (118,372) |
Schedule of Consolidated Statement of Financial Position | Condensed consolidated statement of financial position as of December 31, 2017 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 ASSETS Non-current assets Plant and machinery 14,855 14,855 Other fixtures and fittings, tools and equipment 953 953 Leasehold improvements 304 304 Deposits 2,729 2,729 Restricted cash 5,892 5,892 Other investments 9,312 9,312 Total non-current assets 34,045 0 34,045 Current assets Trade receivables 21,632 (15,953) C 5,679 Prepaid expenses 7,253 7,253 Income tax receivable 5,500 5,500 Other receivables 4,979 4,979 Securities 75,111 75,111 Cash and cash equivalents 588,718 588,718 Total current assets 703,193 (15,953) 687,240 Total assets 737,238 (15,953) 721,285 Condensed consolidated statement of financial position as of December 31, 2017 (continued) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2017 ment Tickmark 2017 EQUITY AND LIABILITIES Share capital 30,751 30,751 Share premium 1,959,199 1,959,199 Retained loss (1,461,482) (13,799) D (1,475,281) Equity 528,468 (13,799) 514,669 Royalty bond 132,986 132,986 Non-current liabilities 132,986 0 132,986 Trade payables 29,428 29,428 Royalty bond 2,748 2,748 Other liabilities 43,608 (2,154) C 41,454 Current liabilities 75,784 (2,154) 73,630 Total liabilities 208,770 (2,154) 206,616 Total equity and liabilities 737,238 (15,953) 721,285 Condensed consolidated statement of financial position as of December 31, 2016 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 ASSETS Non-current assets Plant and machinery 12,081 12,081 Other fixtures and fittings, tools and equipment 1,154 1,154 Leasehold improvements 408 408 Deposits 2,690 2,690 Restricted cash 305,120 305,120 Total non-current assets 321,453 0 321,453 Current assets Trade receivables 11,510 (11,510) C 0 Prepaid expenses 13,837 13,837 Income tax receivable 5,500 5,500 Other receivables 5,379 5,379 Restricted cash 13,617 13,617 Cash and cash equivalents 323,330 323,330 Total current assets 373,173 (11,510) 361,663 Total assets 694,626 (11,510) 683,116 Condensed consolidated statement of financial position as of December 31, 2016 (continued) As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2016 ment Tickmark 2016 EQUITY AND LIABILITIES Share capital 26,142 26,142 Share premium 1,441,263 1,441,263 Retained loss (1,189,211) (10,813) D (1,200,024) Equity 278,194 (10,813) 267,381 Royalty bond 328,878 328,878 Non-current liabilities 328,878 0 328,878 Trade payables 19,739 19,739 Royalty bond 3,365 3,365 Other liabilities 64,450 (697) C 63,753 Current liabilities 87,554 (697) 86,857 Total liabilities 416,432 (697) 415,735 Total equity and liabilities 694,626 (11,510) 683,116 Condensed consolidated statement of financial position as of December 31, 2015 As originally Amount as reported, adjusted, December 31, Restate- December 31, DKK thousand 2015 ment Tickmark 2015 ASSETS Non-current assets Plant and machinery 14,672 14,672 Other fixtures and fittings, tools and equipment 1,153 1,153 Leasehold improvements 628 628 Deposits 2,666 2,666 Total non-current assets 19,119 0 19,119 Current assets Trade receivables 158,158 (8,587) C 149,571 Prepaid expenses 2,430 2,430 Income tax receivable 5,875 5,875 Other receivables 10,427 10,427 Restricted cash 21,403 21,403 Cash and cash equivalents 418,796 418,796 Total current assets 617,089 (8,587) 608,502 Total assets 636,208 (8,587) 627,621 Condensed consolidated statement of financial position as of December 31, 2015 (continued) As originally Amount as reported, adjusted, December 31, December 31, DKK thousand 2015 Restatement Tickmark 2015 EQUITY AND LIABILITIES Share capital 24,353 24,353 Share premium 1,263,179 1,263,179 Retained loss (1,035,301) (7,428) D (1,042,729) Equity 252,231 (7,428) 244,803 Royalty bond 312,951 312,951 Non-current liabilities 312,951 0 312,951 Trade payables 21,676 21,676 Other liabilities 49,350 (1,159) C 48,191 Current liabilities 71,026 (1,159) 69,867 Total liabilities 383,977 (1,159) 382,818 Total equity and liabilities 636,208 (8,587) 627,621 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue | |
Schedule of revenue recognition | Restated 1 Restated 1 DKK thousand 2018 2017 2016 Sanofi-Aventis Deutschland GmbH 0 69,603 208,692 Boehringer Ingelheim International GmbH 0 29,750 0 Helsinn Healthcare S.A. 0 0 112 Undisclosed counterpart 9,845 0 0 Protagonist Therapeutics, Inc. 3,274 1,662 1,636 Total license and milestone revenue 13,119 101,015 210,440 Sanofi—Aventis Deutschland GmbH 24,858 35,307 20,424 Total royalty revenue 24,858 35,307 20,424 Total revenue 37,977 136,322 230,864 Royalty revenue can be specified as follows: Soliqua ® 17,786 18,655 0 Lyxumia ® 7,072 16,652 20,424 Total royalty revenue 24,858 35,307 20,424 1 See Note 1 to the consolidated financial statements. |
Fees to auditors appointed at_2
Fees to auditors appointed at the Annual General Meeting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fees to auditors appointed at the Annual General Meeting | |
Summary of fees to auditors appointed at the Annual General Meeting | DKK thousand 2018 2017 2016 Audit 1,661 1,199 1,937 Audit-related services and other assurance engagements 718 2,418 4,107 Tax advice 106 114 43 Other 0 196 232 Total fees 2,485 3,927 6,319 |
Information on staff and remu_2
Information on staff and remuneration (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Information on staff and remuneration | |
Schedule of staff salaries | DKK thousand 2018 2017 2016 Total staff salaries can be specified as follows:Salaries 141,661 112,614 104,614 Pension schemes (defined contribution plans) 11,065 9,135 8,239 Other payroll and staff-related costs 27,252 30,291 32,838 Total 179,978 152,040 145,691 The amount is charged as: Research and development expenses 153,521 119,474 109,509 Administrative expenses 26,457 32,566 36,182 Total 179,978 152,040 145,691 Average number of employees 146 128 124 Base Committee Total Base Committee Total Base Committee Total Remuneration board fee Fees fees board fee Fees fees board fee Fees fees DKK thousand 2018 2018 2018 2017 2017 2017 2016 2016 2016 Remuneration to the Board of Directors Martin Nicklasson 1 650 100 750 550 100 650 550 200 750 Rosemary Crane 333 50 383 350 50 400 350 50 400 Catherine Moukheibir 300 150 450 250 150 400 250 150 400 Alain Munoz 300 50 350 250 33 283 250 0 250 Michael Owen 300 50 350 250 50 300 250 0 250 Kirsten Drejer 200 0 200 0 0 0 0 0 0 Jens Peter Stenvang 2 300 0 300 250 0 250 250 0 250 Hanne Heidenheim Bak 2 300 0 300 198 0 198 167 0 167 Helle Haxgart 2, 3 100 0 100 21 0 21 0 0 0 Rasmus Just 2, 4 0 0 0 229 0 229 167 0 167 Peter Benson 5 0 0 0 0 0 0 104 0 104 Christian Thorkildsen 2, 5 0 0 0 0 0 0 83 0 83 Helle Størum 2, 5 0 0 0 0 0 0 83 0 83 Total 2,783 400 3,183 2,348 383 2,731 2,504 400 2,904 1 In addition to the base board fee, Martin Nicklasson received an observation fee for his period as Observer to the Board before being appointed at the Annual General Meeting in 2015. This fee amounted to DKK 150,000, and was paid in 2016. 2 Employee-elected board members; the table only includes remuneration for board work. 3 This board member resigned from the Board in 2018. 4 This board member resigned from the Board in 2017. 5 These board members resigned from the Board in 2016. |
Schedule of components of staff salaries and remuneration | Warrant Pension Other Severance compensation DKK thousand Base salary Bonus contribution benefits payment expenses Total 2018 Remuneration to the Executive Management Britt Meelby Jensen 4,189 2,513 419 320 0 0 7,441 Mats Blom 2,621 1,031 262 273 0 2,219 6,406 Total 6,810 3,544 681 593 0 2,219 13,847 Other Corporate Management 1 6,689 2,653 604 1,035 0 5,804 16,785 Total 6,689 2,653 604 1,035 0 5,804 16,785 Total 13,499 6,197 1,285 1,628 0 8,023 30,632 2017 Remuneration to the Executive Management Britt Meelby Jensen 3,915 2,482 392 231 0 4,058 11,078 Mats Blom 2,496 999 250 271 0 2,389 6,405 Total 6,411 3,481 642 502 0 6,447 17,483 Other Corporate Management 1 4,416 1,787 442 388 0 4,779 11,812 Total 4,416 1,787 442 388 0 4,779 11,812 Total 10,827 5,268 1,084 890 0 11,226 29,295 2016 Remuneration to the Executive Management Britt Meelby Jensen 3,795 683 380 231 0 4,442 9,531 Mats Blom 2,448 526 245 268 0 1,111 4,598 Total 6,243 1,209 625 499 0 5,553 14,129 Other Corporate Management 1 6,422 833 642 1,324 1,782 7,322 18,325 Total 6,422 833 642 1,324 1,782 7,322 18,325 Total 12,665 2,042 1,267 1,823 1,782 12,875 32,454 1 Other Corporate Management in 2018 and 2017 comprised two members. Other Corporate Management in 2016 comprised four members, including two members who resigned during the year. |
Schedule of number of share warrants and exercise price | The 2010 employee incentive program Program Program Program Program Program Program Program Program of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 10/Feb/11 17/Nov/11 10/Feb/12 19/Nov/12 08/Feb/13 01/Apr/14 25/Mar/15 05/May/15 Total Number of warrants Outstanding at January 1, 2018 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 0 0 0 0 0 Exercised during the year 0 0 0 0 0 (28,000) 0 0 (28,000) Expired during the year 0 0 0 0 (183,425) 0 0 0 (183,425) Outstanding at December 31, 2018 0 0 0 0 0 72,000 100,000 46,359 218,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 0 0 Other employees 0 0 0 0 0 72,000 100,000 46,359 218,359 Total 0 0 0 0 0 72,000 100,000 46,359 218,359 Number of warrants Outstanding at January 1, 2017 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 0 0 0 0 0 Exercised during the year 0 0 0 0 (77,712) 0 0 0 (77,712) Expired during the year 0 0 (6,250) (214,883) 0 0 0 0 (221,133) Outstanding at December 31, 2017 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Specified as follows: Executive Management 0 0 0 0 0 0 0 0 0 Other employees 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Total 0 0 0 0 183,425 100,000 100,000 46,359 429,784 Number of warrants Outstanding at January 1, 2016 11,600 105,259 151,741 214,883 326,012 100,000 100,000 46,359 1,055,854 Granted during the year 0 0 0 0 0 0 0 0 0 Forfeited during the year 0 0 0 0 (1,250) 0 0 0 (1,250) Exercised during the year 0 (105,259) (145,491) 0 (63,625) 0 0 0 (314,375) Expired during the year (11,600) 0 0 0 0 0 0 0 (11,600) Outstanding at December 31, 2016 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Specified as follows: Executive Management 0 0 0 31,019 0 0 0 0 31,019 Other employees 0 0 6,250 183,864 261,137 100,000 100,000 46,359 697,610 Total 0 0 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Exercise period From 10/Feb/14 17/Nov/14 10/Feb/15 19/Nov/15 10/Feb/16 01/Apr/7 25/Mar/18 05/May/18 Until 10/Feb/16 17/Nov/16 10/Feb/17 19/Nov/17 10/Feb/18 01/Apr/19 25/Mar/20 05/May/20 Black-Scholes parameters Term (months) 60 60 60 60 60 60 60 60 Share price 70.0 45.7 70.0 86.0 79.05 69.0 115.5 Exercise price (DKK) 77.0 50.27 77.0 113.3 87.45 75.9 127.05 101.2 Volatility* 33.0 % 34.0 % 44.0 % 56.0 % 39.3 % 37.5 % 41.9 % 43.7 % Risk-free interest rate 3.09 % 1.02 % 0.37 % 0.86 % 0.66 % 0.71 % (0.21) % (0.10) % Cost price 21.36 12.90 24.74 23.76 25.38 21.05 37.78 31.63 Dividend not expected not expected not expected not expected not expected not expected not expected not expected *The volatility rate used is based on the actual volatility of the Zealand share price. The 2015 employee incentive program Program Program Program Program Program Program Program Program Program Program Program of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 05/May/15 5/May/15 5/Apr/16 5/Apr/16 15/Jul/16 6/Apr/17 6/Apr/17 25/Aug/17 25/Aug/17 22/May/18 15-Oct-18 Total Number of warrants Outstanding at January 1, 2018 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Granted during the year 0 0 0 0 0 0 0 0 0 615,500 40,000 655,500 Forfeited during the year (100,000) 0 (7,000) (85,434) 0 (24,500) (93,392) (14,566) (6,608) (105,500) 0 (437,000) Exercised during the year 0 (7,500) 0 0 0 0 0 0 0 0 0 (7,500) Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2018 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 1,635,000 Specified as follows: Executive Management 0 75,000 25,000 0 0 57,000 0 0 0 60,000 0 217,000 Other employees 0 267,250 296,750 0 40,000 324,000 0 0 0 450,000 40,000 1,418,000 Total 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 1,635,000 Number of warrants Outstanding at January 1, 2017 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Granted during the year 0 0 0 0 0 424,000 93,392 14,566 6,608 0 0 538,566 Forfeited during the year 0 (7,500) (16,250) (14,566) 0 (18,500) 0 0 0 0 0 (56,816) Exercised during the year 0 0 0 0 0 0 0 0 0 0 0 0 Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2017 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Specified as follows: Executive Management 100,000 75,000 25,000 85,434 0 57,000 93,392 14,566 6,608 0 0 457,000 Other employees 0 274,750 303,750 0 40,000 348,500 0 0 0 0 0 967,000 Total 100,000 349,750 328,750 85,434 40,000 405,500 93,392 14,566 6,608 0 0 1,424,000 Number of warrants Outstanding at January 1, 2016 100,000 363,250 0 0 0 0 0 0 0 0 0 463,250 Granted during the year 0 0 347,250 100,000 40,000 0 0 0 0 0 0 487,250 Forfeited during the year 0 (6,000) (2,250) 0 0 0 0 0 0 0 0 (8,250) Exercised during the year 0 0 0 0 0 0 0 0 0 0 0 0 Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2016 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Specified as follows: Executive Management 100,000 75,000 25,000 100,000 0 0 0 0 0 0 0 300,000 Other employees 0 282,250 320,000 0 40,000 0 0 0 0 0 0 642,250 Total 100,000 357,250 345,000 100,000 40,000 0 0 0 0 0 0 942,250 Exercise period From 05/May/16 05/May/18 05/Apr/19 05/Apr/17 15/Jul/19 06/Apr/20 06/Apr/18 25/Aug/17 06/Apr/18 22/May/21 15/Oct/21 Until 05/May/20 05/May/20 05/Apr/21 05/Apr/21 15/Jul/21 06/Apr/22 06/Apr/22 25/Aug/22 06/Apr/22 22/May/23 15/Oct/23 Black-Scholes parameters Term (months) 60 60 60 60 60 60 60 60 60 60 60 Share price (DKK) 92.0 92.0 129.5 129.5 126.0 123.0 123.0 118.5 118.5 100.8 90.0 Exercise price (DKK) 101.2 101.2 142.45 142.45 138.6 135.3 135.3 142.45 135.3 100.8 90.0 Volatility* 43.7 % 43.7 % 43.5 % 43.5 % 45.0 % 43.6 % 43.6 % 43.0 % 43.0 % 42.6 % 42.5 % Risk free interest rate (0.10) % (0.10) % (0.04) % (0.04) % (0.33) % (0.24) % (0.24) % (0.16) % (0.16) % 0.05 % (0.03) % Cost price (DKK) 31.63 31.63 44.42 44.42 44.23 41.92 41.92 36.74 38.58 36.98 32.83 Dividend not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected * |
Schedule of value of warrants recognized in the income statement | DKK thousand 2018 2017 2016 The amount is charged as: Research and development expenses 13,838 12,190 14,290 Administrative expenses 3,631 7,966 8,437 Total 17,469 20,156 22,727 |
Other operating income (Tables)
Other operating income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other operating income | |
Schedule of other operating income | DKK thousand 2018 2017 2016 Gross proceeds from sale of future royalties and milestones 1,310,237 0 0 Royalty expenses regarding the above sale of future royalties and milestones (176,882) 0 0 Fee, advisors regarding the above sale of future royalties and milestones (34,459) 0 0 Research funding 0 40 920 Government grants 630 567 777 Total other operating income 1,099,526 607 1,697 |
Financial income (Tables)1
Financial income (Tables)1 | 12 Months Ended |
Dec. 31, 2018 | |
Other operating income | |
Schedule of financial income | DKK thousand 2018 2017 2016 Interest income from financial assets measured at amortized costs 4,263 2,048 592 Fair value adjustments of securities 0 74 0 Exchange rate adjustments 4,705 0 0 Dividend, securities 1,020 0 0 Total financial income 9,988 2,122 592 |
Financial expenses (Tables)
Financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial expenses | |
Schedule of financial expenses | . DKK thousand 2018 2017 2016 Interest expenses from financial liabilities measured at amortized costs 15,080 18,913 32,157 Amortization of financing costs 18,347 5,748 8,369 Fair value adjustments of securities 1,389 0 0 Loss on sale of securities 881 0 0 Other financial expenses 1,625 949 255 Exchange rate adjustments 0 7,899 3,575 Total financial expenses 37,322 33,509 44,356 |
Income tax benefit (Tables)
Income tax benefit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income tax benefit | |
Schedule of income tax receivables | Restated Restated DKK thousand 2018 2017 2016 Net result for the year before tax 625,056 (280,758) (162,796) Tax rate 22.0 % 22.0 % 22.0 % Expected tax expenses/(benefit) 137,512 (61,767) (35,815) Difference in tax rate in subsidiary 9 0 0 Adjustment for nondeductible expenses 56 62 100 Adjustment for exercised warrants 2,228 1,732 36 Adjustment for R&D super deduction (1,427) 0 0 Tax effect on exercise of warrants (8) (688) (2,864) Tax effect on expired warrants (151) 4,407 0 Change in tax assets (not recognized) (94,445) 50,754 33,043 Total income tax expense/benefit 43,774 (5,500) (5,500) Breakdown of unrecognized deferred tax assets: Tax losses carried forward (available indefinitely) 580,932 873,515 722,186 Research and development expenses 136,755 210,148 145,822 Rights 35,849 43,019 43,019 Non-current assets 50,308 67,590 62,953 Other 79,986 104,377 102,074 Total temporary differences 883,830 1,298,649 1,076,054 Tax rate 22 % 22 % 22 % Calculated potential deferred tax asset at local tax rate 194,443 285,703 236,732 Write-down of deferred tax asset (194,443) (285,703) (236,732) Recognized deferred tax asset 0 0 0 |
Basic and diluted earnings pe_2
Basic and diluted earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basic and diluted earnings per share | |
Schedule of basic and diluted loss per share | Restated Restated DKK thousand 2018 2017 2016 Net result for the year 581,282 (275,258) (157,296) Net result used in the calculation of basic and diluted earnings per share 581,282 (275,258) (157,296) Weighted average number of ordinary shares 30,754,948 27,918,271 24,873,940 Weighted average number of treasury shares (64,223) (64,223) (564,223) Weighted average number of ordinary shares used in the calculation of basic earnings per share 30,690,725 27,854,048 24,309,717 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 30,696,404 27,854,048 24,309,717 Basic earnings/loss per share (DKK) 18.94 (9.88) (6.47) Diluted earnings/loss per share (DKK) 18.94 (9.88) (6.47) |
Schedule of potential ordinary shares are antidilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted loss per share | 2018 2017 2016 Potential ordinary shares are included at December 31, 2018 due to dilutive effect (excluded at December 31, 2017 and 2016) related to: Outstanding warrants under the 2010 employee incentive program 218,359 429,784 728,629 Outstanding warrants under the 2015 employee incentive program 1,635,000 1,424,000 942,250 Total outstanding warrants 1,853,359 1,853,784 1,670,879 - out of which these warrants are dilutive 72,000 0 0 - out of which these warrants are anti-dilutive 1,781,359 1,853,784 1,670,879 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Plant and Other fixtures Leasehold DKK thousand machinery and fittings improvements Cost at January 1, 2018 53,629 4,382 10,800 Additions 2,748 1,290 0 Retirements (832) (542) 0 Cost at December 31, 2018 55,545 5,130 10,800 Depreciation at January 1, 2018 38,774 3,429 10,496 Depreciation for the year 3,941 449 118 Retirements (820) (542) 0 Depreciation at December 31, 2018 41,895 3,336 10,614 Carrying amount at December 31, 2018 13,650 1,794 186 Depreciation for the financial year has been charged as: Research and development expenses 3,941 382 100 Administrative expenses 0 67 18 Total 3,941 449 118 Cost at January 1, 2017 47,170 3,612 10,715 Adjustment to prior year 0 286 0 Additions 6,657 484 85 Retirements (198) 0 0 Cost at December 31, 2017 53,629 4,382 10,800 Depreciation at January 1, 2017 35,089 2,458 10,307 Adjustment to prior year 0 286 0 Depreciation for the year 3,883 685 189 Retirements (198) 0 0 Depreciation at December 31, 2017 38,774 3,429 10,496 Carrying amount at December 31, 2017 14,855 953 304 Depreciation for the financial year has been charged as: Research and development expenses 3,883 569 157 Administrative expenses 0 116 32 Total 3,883 685 189 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other receivables | |
Schedule of other receivables | DKK thousand 2018 2017 VAT 2,980 3,378 Other 388 1,601 Total other receivables 3,368 4,979 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | DKK thousand 2018 2017 DKK 343,585 12,824 USD 96,526 252,884 EUR 420,524 323,010 Total cash and cash equivalents 860,635 588,718 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share capital | |
Schedule of share capital | Share Capital Share capital at January 1, 2018 30,751,327 Capital increase on September 14, 2018 7,500 Capital increase on December 14, 2018 28,000 Share capital at December 31, 2018 30,786,827 Share capital at January 1, 2017 26,142,365 Capital increase on March 23, 2017 9,500 Capital increase on April 13, 2017 22,000 Capital increase on May 30, 2017 5,000 Capital increase on June 15, 2017 8,537 Capital increase on August 14, 2017 4,375,000 Capital increase on August 18, 2017 156,250 Capital increase on September 1, 2017 1,500 Capital increase on September 22, 2017 28,675 Capital increase on November 20, 2017 2,500 Share capital at December 31, 2017 30,751,327 Share capital Share capital at January 1, 2016 24,352,769 Capital increase on March 30, 2016 46,613 Capital increase on April 14, 2016 50,453 Capital increase on May 26, 2016 43,071 Capital increase on June 16, 2016 41,269 Capital increase on September 6, 2016 7,400 Capital increase on September 23, 2016 45,457 Capital increase on September 29, 2016 1,475,221 Capital increase on November 17, 2016 8,200 Capital increase on November 25, 2016 57,913 Capital increase on December 8, 2016 13,999 Share capital at December 31, 2016 26,142,365 Share capital at January 1, 2015 23,193,047 Capital increase on March 21, 2015 120,833 Capital increase on April 11, 2015 106,220 Capital increase on June 2, 2015 51,487 Capital increase on June 20, 2015 46,521 Capital increase on September 8, 2015 383,190 Capital increase on September 26, 2015 150,702 Capital increase on November 4, 2015 60,843 Capital increase on November 13, 2015 176,456 Capital increase on December 4, 2015 63,470 Share capital at December 31, 2015 24,352,769 |
Royalty bond (Tables)
Royalty bond (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Royalty bond | |
Schedule of changes in the Group's liabilities arising from financing activities regarding the royalty bond | DKK thousand January 1, 2018 135,734 Financing cash flows (repayment) (158,311) Amortization of financing costs 18,347 Exchange rate adjustments 4,230 December 31, 2018 0 January 1, 2017 332,243 Financing cash flows (repayment) (176,360) Amortization of financing costs 5,748 Exchange rate adjustments (25,897) December 31, 2017 135,734 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities | |
Schedule of other liabilities | Restated DKK thousand 2018 2017 Severance payment 925 896 Employee benefits 34,971 28,165 Royalty payable to third party 6,682 763 Interest payable on royalty bond 0 4,295 Investment in Beta Bionics 22,803 0 Other payables 15,483 7,335 Total other liabilities 80,864 41,454 |
Contingent assets, liabilitie_2
Contingent assets, liabilities and other contractual obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contingent assets, liabilities and other contractual obligations | |
Schedule of future minimum lease payments related to operating lease agreements | DKK thousand 2018 2017 Total future minimum lease payments related to operating lease agreements: Within 1 year 6,945 4,292 1-3 years 31,098 2,593 4-5 years 29,464 117 Total 67,507 7,002 |
Financial risks (Tables)
Financial risks (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial risks | |
Schedule of effect on profit/loss and equity of reasonably likely change in financial variable | 2018 2017 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 9,627 +/- 10% 12,304 Interest rate +/- 100b.p 7,974 +/- 100b.p 5,562 |
Schedule of contractual maturity | DKK thousand <6 months 6<12 months 1-5 years Total Trade payables 32,652 0 0 32,652 Other 80,864 0 0 80,864 Total financial liabilities at December 31, 2018 113,516 0 0 113,516 Trade payables 29,428 0 0 29,428 Royalty bond repayments 1,401 1,347 132,986 135,734 Interest payments on royalty bond 7,249 7,302 35,140 49,691 Other (restated) 34,242 0 0 34,242 Total financial liabilities at December 31, 2017 72,320 8,649 168,126 249,095 |
Schedule of financial instrument carried at fair value | Restated DKK thousand 2018 2017 Categories of financial instruments Trade receivables 3,274 5,679 Other receivables 3,368 4,979 Restricted cash 0 5,892 Cash and cash equivalents 860,635 588,718 Financial assets at amortised cost 1) 867,277 605,268 Securities 298,611 75,111 Other investments 32,582 9,312 Financial assets measured at fair value 331,193 84,423 Royalty bond 0 135,734 Trade payables 32,652 29,428 Other liabilities 80,864 41,454 Financial liabilities measured at amortized cost 113,516 206,616 1) Classified as loans and receivables under IAS 39 |
Adjustments for non-cash items
Adjustments for non-cash items (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Adjustments for non-cash items | |
Schedule of adjustments for non-cash items | DKK thousand 2018 2017 2016 Depreciation 4,508 4,757 5,410 Warrant compensation expenses 17,468 20,156 22,727 Income tax receipt 0 (5,500) (5,500) Income tax expense 43,774 0 0 Financial income 0 (2,048) (592) Financial expenses 19,736 25,610 40,781 Non paid royalty expenses regarding sale of future royalties and milestones 6,575 0 0 Exchange rate adjustments 9,865 (17,596) (5,141) Total adjustments 101,926 25,379 57,685 |
Change in working capital (Tabl
Change in working capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Change in working capital | |
Schedule of change in working capital | Restated Restated DKK thousand 2018 2017 2016 Increase/ decrease in receivables (471) 1,306 143,212 Increase/ decrease in payables 13,256 (12,610) 13,626 Change in working capital 12,785 (11,304) 156,838 |
Overview of Business (Details)
Overview of Business (Details) kr in Thousands, $ in Millions | Sep. 17, 2018USD ($) | Sep. 17, 2018DKK (kr) | Sep. 06, 2018USD ($) | Sep. 06, 2018DKK (kr) | Dec. 31, 2014 | Dec. 31, 2018USD ($)itemproduct | Dec. 31, 2018DKK (kr)itemproduct | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) |
Overview of Business | |||||||||
Number of drug candidates invented | item | 10 | 10 | |||||||
Number of approved products for the treatment of type 2 diabetes | product | 2 | 2 | |||||||
Upfront one-time payment received for transfer of all the royalties | $ 205 | kr 1,310,200 | $ 205 | kr 1,310,200 | kr 1,310,237 | kr 0 | kr 0 | ||
Potential milestone payment from Sanofi | 15 | $ 15 | |||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | ||||||||
Zealand Pharma A/S subsidiaries ZP Holding SPV K/S | |||||||||
Overview of Business | |||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Voting rights held in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Zealand Pharma A/S subsidiaries ZP General Partner 1 ApS | |||||||||
Overview of Business | |||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Voting rights held in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Zeal and Pharma A/S subsidiaries Zealand Pharma US Inc. | |||||||||
Overview of Business | |||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Voting rights held in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S | |||||||||
Overview of Business | |||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Voting rights held in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
ZP Holding SPV K/S subsidiaries ZP General Partner 2 ApS | |||||||||
Overview of Business | |||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Voting rights held in Subsidiaries (in percentage) | 100.00% | 100.00% | |||||||
Sanofi | |||||||||
Overview of Business | |||||||||
Potential milestone payment from Sanofi | $ 15 | $ 15 |
Significant accounting polici_4
Significant accounting policies and significant accounting estimates and assessments - (Details) kr in Thousands, € in Millions, $ in Millions | Sep. 06, 2018USD ($) | Jun. 30, 2018DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017EUR (€) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015DKK (kr) | |
Standards and interpretations not yet in effect | ||||||||||
Liabilities | kr 113,516 | kr 206,616 | [1] | kr 415,735 | kr 382,818 | |||||
Operating lease commitments from 2019-2025 | 5,700 | |||||||||
Short-term and low-value leases | kr 3,700 | |||||||||
Non cancellable lease term | 13 years | 13 years | 13 years | |||||||
Annual payments non-cancellable lease | kr 9,800 | |||||||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | ||||||||
Royalty revenue | kr 24,858 | 35,307 | 20,424 | |||||||
Employee incentive programs | ||||||||||
Maturity period for Danish government bonds | 5 years | 5 years | 5 years | |||||||
Minimum | ||||||||||
Standards and interpretations not yet in effect | ||||||||||
Operating lease contracts capitalized (in percent) | 0.10% | 0.10% | 0.10% | |||||||
Right-of-use assets | kr 1,800 | |||||||||
Maximum | ||||||||||
Standards and interpretations not yet in effect | ||||||||||
Operating lease contracts capitalized (in percent) | 0.30% | 0.30% | 0.30% | |||||||
Right-of-use assets | kr 1,900 | |||||||||
Lixisenatide | ||||||||||
Standards and interpretations not yet in effect | ||||||||||
Royalty revenue | 7,072 | € 22.4 | 16,652 | 20,424 | ||||||
Sanofi | ||||||||||
Standards and interpretations not yet in effect | ||||||||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | ||||||||
Royalty revenue | kr 17,100 | kr 24,858 | kr 35,307 | kr 20,424 | ||||||
Sanofi | Lixisenatide | ||||||||||
Standards and interpretations not yet in effect | ||||||||||
Royalty income in percentage | 10.00% | 10.00% | 10.00% | |||||||
Potential milestone payment from Sanofi | $ | $ 100 | |||||||||
Royalty revenue | € | € 9.5 | |||||||||
[1] | See note 1 to the consolidated financial statements. |
Significant accounting polici_5
Significant accounting policies and significant accounting estimates and assessments - Condensed consolidated income statement (Details) - DKK (kr) kr / shares in Units, kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Condensed consolidated income statement | ||||||
Revenue | kr 37,977 | kr 136,322 | [1] | kr 230,864 | [1] | kr 182,573 |
Royalty expenses | (3,356) | (14,163) | [1] | (30,931) | [1] | (21,578) |
Research and development expenses | (438,215) | (324,667) | [1] | (268,159) | [1] | (217,741) |
Administrative expenses | (43,542) | (47,470) | [1] | (52,503) | [1] | (41,824) |
Other operating income | 1,099,526 | 607 | [1] | 1,697 | [1] | 12,828 |
Operating result | 652,390 | (249,371) | [1] | (119,032) | [1] | (85,742) |
Financial income | 9,988 | 2,122 | [1] | 592 | [1] | 3,889 |
Financial expenses | (37,322) | (33,509) | [1] | (44,356) | [1] | (42,394) |
Result before tax | 625,056 | (280,758) | [1] | (162,796) | [1] | (124,247) |
Income tax | (43,774) | 5,500 | [1] | 5,500 | [1] | 5,875 |
Net result for the year | kr 581,282 | kr (275,258) | [1] | kr (157,296) | [1] | kr (118,372) |
Earnings/loss per share - DKK | ||||||
Basic earnings/loss per share | kr 18.94 | kr (9.88) | [1] | kr (6.47) | [1] | kr (5.13) |
Diluted earnings/loss per share | kr 18.94 | kr (9.88) | [1] | kr (6.47) | [1] | kr (5.13) |
As originally reported | ||||||
Condensed consolidated income statement | ||||||
Revenue | kr 139,775 | kr 234,778 | kr 187,677 | |||
Royalty expenses | (14,629) | (31,459) | (22,267) | |||
Research and development expenses | (324,667) | (268,159) | (217,741) | |||
Administrative expenses | (47,470) | (52,503) | (41,824) | |||
Other operating income | 607 | 1,697 | 12,828 | |||
Operating result | (246,384) | (115,646) | (81,327) | |||
Financial income | 2,122 | 592 | 3,889 | |||
Financial expenses | (33,509) | (44,356) | (42,394) | |||
Result before tax | (277,771) | (159,410) | (119,832) | |||
Income tax | 5,500 | 5,500 | 5,875 | |||
Net result for the year | kr (272,271) | kr (153,910) | kr (113,957) | |||
Earnings/loss per share - DKK | ||||||
Basic earnings/loss per share | kr (9.77) | kr (6.33) | kr (4.94) | |||
Diluted earnings/loss per share | kr (9.77) | kr (6.33) | kr (4.94) | |||
Restatement | ||||||
Condensed consolidated income statement | ||||||
Revenue | kr (3,453) | kr (3,914) | kr (5,104) | |||
Royalty expenses | 466 | 528 | 689 | |||
Research and development expenses | 0 | 0 | 0 | |||
Administrative expenses | 0 | 0 | 0 | |||
Other operating income | 0 | 0 | 0 | |||
Operating result | (2,987) | (3,386) | (4,415) | |||
Financial income | 0 | 0 | 0 | |||
Financial expenses | 0 | 0 | 0 | |||
Result before tax | (2,987) | (3,386) | (4,415) | |||
Income tax | 0 | 0 | 0 | |||
Net result for the year | kr (2,987) | kr (3,386) | kr (4,415) | |||
Earnings/loss per share - DKK | ||||||
Basic earnings/loss per share | kr (0.11) | kr (0.14) | kr (0.19) | |||
Diluted earnings/loss per share | kr (0.11) | kr (0.14) | kr (0.19) | |||
[1] | See note 1 to the consolidated financial statements. |
Significant accounting polici_6
Significant accounting policies and significant accounting estimates and assessments - Condensed consolidated statements of comprehensive income (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Condensed consolidated statements of comprehensive income | ||||||
Net result for the year | kr 581,282 | kr (275,258) | [1] | kr (157,296) | [1] | kr (118,372) |
Other comprehensive income (loss) | 0 | 0 | [1] | 0 | [1] | 0 |
Comprehensive result for the year | kr 581,282 | (275,258) | [1] | (157,296) | [1] | (118,372) |
As originally reported | ||||||
Condensed consolidated statements of comprehensive income | ||||||
Net result for the year | (272,271) | (153,910) | (113,957) | |||
Other comprehensive income (loss) | 0 | 0 | 0 | |||
Comprehensive result for the year | (272,271) | (153,910) | (113,957) | |||
Restatement | ||||||
Condensed consolidated statements of comprehensive income | ||||||
Net result for the year | (2,987) | (3,386) | (4,415) | |||
Other comprehensive income (loss) | 0 | 0 | 0 | |||
Comprehensive result for the year | kr (2,987) | kr (3,386) | kr (4,415) | |||
[1] | See note 1 to the consolidated financial statements. |
Significant accounting polici_7
Significant accounting policies and significant accounting estimates and assessments - Condensed consolidated statement of financial position (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015DKK (kr) | Dec. 31, 2014DKK (kr) | |||
Non-current assets | ||||||||||
Plant and machinery | kr 13,650,000 | kr 14,855,000 | [1] | kr 12,081,000 | kr 14,672,000 | |||||
Other fixtures and fittings, tools and equipment | 1,794,000 | 953,000 | [1] | 1,154,000 | 1,153,000 | |||||
Leasehold improvements | 186,000 | 304,000 | [1] | 408,000 | 628,000 | |||||
Deposits | 2,762,000 | 2,729,000 | [1] | 2,690,000 | 2,666,000 | |||||
Restricted cash | 0 | 5,892,000 | [1] | 305,120,000 | ||||||
Other investments | $ 5 | 32,582,000 | $ 1.5 | 9,312,000 | [1] | |||||
Total non-current assets | 50,974,000 | 34,045,000 | [1] | 321,453,000 | 19,119,000 | |||||
Current assets | ||||||||||
Trade receivables | 3,274,000 | 5,679,000 | [1] | 0 | 149,571,000 | |||||
Prepaid expenses | 11,740,000 | 7,253,000 | [1] | 13,837,000 | 2,430,000 | |||||
Income tax receivable | 1,195,000 | 5,500,000 | [1] | 5,500,000 | 5,875,000 | |||||
Other receivables | 3,368,000 | 4,979,000 | [1] | 5,379,000 | 10,427,000 | |||||
Restricted cash | 13,617,000 | 21,403,000 | ||||||||
Securities | 298,611,000 | 75,111,000 | [1] | |||||||
Cash and cash equivalents | 860,635,000 | 588,718,000 | [1] | 323,330,000 | [1] | 418,796,000 | [1] | |||
Total current assets | 1,178,823,000 | 687,240,000 | [1] | 361,663,000 | 608,502,000 | |||||
Total assets | 1,229,797,000 | 721,285,000 | [1] | 683,116,000 | 627,621,000 | |||||
Liabilities and equity | ||||||||||
Share capital | 30,786,827 | 30,751,327 | [1] | 26,142,365 | 24,352,769 | kr 23,193,047 | ||||
Share premium | 1,979,493,000 | 1,959,199,000 | [1] | 1,441,263,000 | 1,263,179,000 | |||||
Retained loss | (893,999,000) | (1,475,281,000) | [1] | (1,200,024,000) | (1,042,729,000) | |||||
Equity | 1,116,281,000 | 514,669,000 | [1] | 267,381,000 | 244,803,000 | |||||
Royalty bond | 0 | 132,986,000 | [1] | 328,878,000 | 312,951,000 | |||||
Non-current liabilities | 0 | 132,986,000 | [1] | 328,878,000 | 312,951,000 | |||||
Trade payables | 32,652,000 | 29,428,000 | [1] | 19,739,000 | 21,676,000 | |||||
Royalty bond | 0 | 2,748,000 | [1] | 3,365,000 | ||||||
Other liabilities | 80,864,000 | 41,454,000 | [1] | 63,753,000 | 48,191,000 | |||||
Current liabilities | 113,516,000 | 73,630,000 | [1] | 86,857,000 | 69,867,000 | |||||
Total liabilities | 113,516,000 | 206,616,000 | [1] | 415,735,000 | 382,818,000 | |||||
Total equity and liabilities | kr 1,229,797,000 | 721,285,000 | [1] | 683,116,000 | 627,621,000 | |||||
As originally reported | ||||||||||
Non-current assets | ||||||||||
Plant and machinery | 14,855,000 | 12,081,000 | 14,672,000 | |||||||
Other fixtures and fittings, tools and equipment | 953,000 | 1,154,000 | 1,153,000 | |||||||
Leasehold improvements | 304,000 | 408,000 | 628,000 | |||||||
Deposits | 2,729,000 | 2,690,000 | 2,666,000 | |||||||
Restricted cash | 5,892,000 | 305,120,000 | ||||||||
Other investments | 9,312,000 | |||||||||
Total non-current assets | 34,045,000 | 321,453,000 | 19,119,000 | |||||||
Current assets | ||||||||||
Trade receivables | 21,632,000 | 11,510,000 | 158,158,000 | |||||||
Prepaid expenses | 7,253,000 | 13,837,000 | 2,430,000 | |||||||
Income tax receivable | 5,500,000 | 5,500,000 | 5,875,000 | |||||||
Other receivables | 4,979,000 | 5,379,000 | 10,427,000 | |||||||
Restricted cash | 13,617,000 | 21,403,000 | ||||||||
Securities | 75,111,000 | |||||||||
Cash and cash equivalents | 588,718,000 | 323,330,000 | 418,796,000 | |||||||
Total current assets | 703,193,000 | 373,173,000 | 617,089,000 | |||||||
Total assets | 737,238,000 | 694,626,000 | 636,208,000 | |||||||
Liabilities and equity | ||||||||||
Share capital | 30,751,000 | 26,142,000 | 24,353,000 | |||||||
Share premium | 1,959,199,000 | 1,441,263,000 | 1,263,179,000 | |||||||
Retained loss | (1,461,482,000) | (1,189,211,000) | (1,035,301,000) | |||||||
Equity | 528,468,000 | 278,194,000 | 252,231,000 | |||||||
Royalty bond | 132,986,000 | 328,878,000 | 312,951,000 | |||||||
Non-current liabilities | 132,986,000 | 328,878,000 | 312,951,000 | |||||||
Trade payables | 29,428,000 | 19,739,000 | 21,676,000 | |||||||
Royalty bond | 2,748,000 | 3,365,000 | ||||||||
Other liabilities | 43,608,000 | 64,450,000 | 49,350,000 | |||||||
Current liabilities | 75,784,000 | 87,554,000 | 71,026,000 | |||||||
Total liabilities | 208,770,000 | 416,432,000 | 383,977,000 | |||||||
Total equity and liabilities | 737,238,000 | 694,626,000 | 636,208,000 | |||||||
Restatement | ||||||||||
Non-current assets | ||||||||||
Total non-current assets | 0 | 0 | 0 | |||||||
Current assets | ||||||||||
Trade receivables | (15,953,000) | (11,510,000) | (8,587,000) | |||||||
Total current assets | (15,953,000) | (11,510,000) | (8,587,000) | |||||||
Total assets | (15,953,000) | (11,510,000) | (8,587,000) | |||||||
Liabilities and equity | ||||||||||
Retained loss | (13,799,000) | (10,813,000) | (7,428,000) | |||||||
Equity | (13,799,000) | (10,813,000) | (7,428,000) | |||||||
Non-current liabilities | 0 | 0 | 0 | |||||||
Other liabilities | (2,154,000) | (697,000) | (1,159,000) | |||||||
Current liabilities | (2,154,000) | (697,000) | (1,159,000) | |||||||
Total liabilities | (2,154,000) | (697,000) | (1,159,000) | |||||||
Total equity and liabilities | kr (15,953,000) | kr (11,510,000) | kr (8,587,000) | |||||||
[1] | See note 1 to the consolidated financial statements. |
Revenue (Details)
Revenue (Details) kr in Thousands, € in Millions, $ in Millions | Sep. 06, 2018USD ($) | Nov. 30, 2016DKK (kr) | Jul. 31, 2016DKK (kr) | Jun. 30, 2018DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017EUR (€) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015DKK (kr) | Dec. 31, 2014USD ($) | ||
Revenue | ||||||||||||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | ||||||||||||
Total license and milestone revenue | kr 13,119 | kr 101,015 | kr 210,440 | |||||||||||
Total royalty income | 24,858 | 35,307 | 20,424 | |||||||||||
Total revenue | 37,977 | 136,322 | [1] | 230,864 | [1] | kr 182,573 | ||||||||
Lixisenatide | ||||||||||||||
Revenue | ||||||||||||||
Total royalty income | 7,072 | € 22.4 | 16,652 | 20,424 | ||||||||||
Soliqua | ||||||||||||||
Revenue | ||||||||||||||
Total royalty income | 17,786 | 25.1 | 18,655 | 0 | ||||||||||
Sanofi | ||||||||||||||
Revenue | ||||||||||||||
Potential milestone payment from Sanofi | $ | $ 15 | 15 | ||||||||||||
Revenue from milestone payments | 0 | |||||||||||||
Total license and milestone revenue | 0 | 69,603 | 208,692 | |||||||||||
Total royalty income | kr 17,100 | kr 24,858 | 35,307 | 20,424 | ||||||||||
Sanofi | Lixisenatide | ||||||||||||||
Revenue | ||||||||||||||
Maximum amount of milestone payments to be received | $ | $ 100 | |||||||||||||
Royalty income in percentage | 10.00% | 10.00% | 10.00% | |||||||||||
Potential milestone payment from Sanofi | $ | $ 100 | |||||||||||||
Royalty expense in percentage | 0.50% | 0.50% | 0.50% | |||||||||||
Total license and milestone revenue | kr 33,500 | € 27.4 | ||||||||||||
Total royalty income | € | € 9.5 | |||||||||||||
Sanofi | Soliqua | ||||||||||||||
Revenue | ||||||||||||||
Royalty income in percentage | 10.00% | 10.00% | 10.00% | |||||||||||
Total license and milestone revenue | kr 175,200 | |||||||||||||
Total royalty income | € | € 23.8 | |||||||||||||
Alkermes plc | Lixisenatide | ||||||||||||||
Revenue | ||||||||||||||
License fee expense in percentage | 13.00% | 13.00% | 13.00% | |||||||||||
Boehringer Ingelheim License Agreement | ||||||||||||||
Revenue | ||||||||||||||
Total license and milestone revenue | kr 0 | 29,750 | 0 | |||||||||||
Boehringer Ingelheim License Agreement | Advance novel glucagon | ||||||||||||||
Revenue | ||||||||||||||
Maximum amount of milestone payments to be received | € | € 386 | |||||||||||||
Outstanding milestone payments | € | 365 | |||||||||||||
Boehringer Ingelheim License Agreement | Therapeutic peptides stemming | ||||||||||||||
Revenue | ||||||||||||||
Maximum amount of milestone payments to be received | € | 295 | |||||||||||||
Outstanding milestone payments | € | € 283 | |||||||||||||
Period of agreement | 4 years 6 months | |||||||||||||
Helsinn Healthcare S.A License Agreement | ||||||||||||||
Revenue | ||||||||||||||
Total license and milestone revenue | 0 | 0 | 112 | |||||||||||
Undisclosed counterpart | ||||||||||||||
Revenue | ||||||||||||||
Total license and milestone revenue | 9,845 | 0 | 0 | |||||||||||
Protagonist Therapeutics Inc License Agreement | ||||||||||||||
Revenue | ||||||||||||||
Amount to be received on termination of license agreement | $ | $ 15 | |||||||||||||
Total license and milestone revenue | kr 3,274 | kr 1,662 | kr 1,636 | |||||||||||
[1] | See note 1 to the consolidated financial statements. |
Royalty expenses (Details)
Royalty expenses (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Royalty expenses | |
Royalty expenses (as a percent) | 0.50% |
Sanofi License Agreement | |
Royalty expenses | |
Future payments received under licensing agreement utilised for royalty payment (in Percentage) | 13.00% |
Fees to auditors appointed at_3
Fees to auditors appointed at the Annual General Meeting (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fees to auditors appointed at the Annual General Meeting | |||
Audit | kr 1,661 | kr 1,199 | kr 1,937 |
Audit-related services and other assurance engagements | 718 | 2,418 | 4,107 |
Tax advice | 106 | 114 | 43 |
Other | 0 | 196 | 232 |
Total fees | 2,485 | kr 3,927 | kr 6,319 |
Auditor's remuneration for audit-related services, other assurance engagements, tax advice and other services | kr 800 |
Information on staff and remu_3
Information on staff and remuneration (Details) | 12 Months Ended | |||
Dec. 31, 2018DKK (kr)employee | Dec. 31, 2017DKK (kr)employee | Dec. 31, 2016DKK (kr)employee | Dec. 31, 2015DKK (kr) | |
Total staff salaries can be specified as follows: | ||||
Salaries | kr 141,661,000 | kr 112,614,000 | kr 104,614,000 | |
Pension schemes (defined contribution plans) | 11,065,000 | 9,135,000 | 8,239,000 | |
Other payroll and staff-related costs | 27,252,000 | 30,291,000 | 32,838,000 | |
Total staff salaries | 179,978,000 | 152,040,000 | 145,691,000 | |
Research and development expenses | 153,521,000 | 119,474,000 | 109,509,000 | |
Administrative expenses | 26,457,000 | 32,566,000 | 36,182,000 | |
Total staff salaries | kr 179,978,000 | kr 152,040,000 | kr 145,691,000 | |
Average number of employees | employee | 146 | 128 | 124 | |
Remuneration to the Board of Directors | ||||
Base board fee | kr 2,783,000 | kr 2,348,000 | kr 2,504,000 | |
Committee Fees | 400,000 | 383,000 | 400,000 | |
Total fees | 3,183,000 | 2,731,000 | 2,904,000 | |
Martin Nicklasson | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 650,000 | 550,000 | 550,000 | |
Committee Fees | 100,000 | 100,000 | 200,000 | |
Total fees | 750,000 | 650,000 | 750,000 | |
Observation fee | kr 150,000 | |||
Rosemary Crane | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 333,000 | 350,000 | 350,000 | |
Committee Fees | 50,000 | 50,000 | 50,000 | |
Total fees | 383,000 | 400,000 | 400,000 | |
Catherine Moukheibir | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 300,000 | 250,000 | 250,000 | |
Committee Fees | 150,000 | 150,000 | 150,000 | |
Total fees | 450,000 | 400,000 | 400,000 | |
Peter Benson | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 0 | 0 | 104,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 0 | 0 | 104,000 | |
Alain Munoz | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 300,000 | 250,000 | 250,000 | |
Committee Fees | 50,000 | 33,000 | 0 | |
Total fees | 350,000 | 283,000 | 250,000 | |
Michael Owen | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 300,000 | 250,000 | 250,000 | |
Committee Fees | 50,000 | 50,000 | 0 | |
Total fees | 350,000 | 300,000 | 250,000 | |
Kirsten Drejer | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 200,000 | 0 | 0 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 200,000 | 0 | 0 | |
Jens Peter Stenvang | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 300,000 | 250,000 | 250,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 300,000 | 250,000 | 250,000 | |
Hanne Heidenheim Bak | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 300,000 | 198,000 | 167,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 300,000 | 198,000 | 167,000 | |
Helle Haxgart | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 100,000 | 21,000 | 0 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 100,000 | 21,000 | 0 | |
Rasmus Just | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 0 | 229,000 | 167,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 0 | 229,000 | 167,000 | |
Chirstian Thorkidsen | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 0 | 0 | 83,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | 0 | 0 | 83,000 | |
Helle Storum | ||||
Remuneration to the Board of Directors | ||||
Base board fee | 0 | 0 | 83,000 | |
Committee Fees | 0 | 0 | 0 | |
Total fees | kr 0 | kr 0 | kr 83,000 |
Information on staff and remu_4
Information on staff and remuneration - Remuneration to the Executive Management (Details) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2018DKK (kr)director | Dec. 31, 2017DKK (kr)director | Dec. 31, 2016DKK (kr) | |
Disclosure of transactions between related parties | |||
Base salary | kr 13,499 | kr 10,827 | kr 12,665 |
Bonus | 6,197 | 5,268 | 2,042 |
Pension contribution | 1,285 | 1,084 | 1,267 |
Other benefits | 1,628 | 890 | 1,823 |
Severance payment | 0 | 0 | 1,782 |
Warrant compensation expenses | 8,023 | 11,226 | 12,875 |
Total | 30,632 | 29,295 | 32,454 |
Executive Management | |||
Disclosure of transactions between related parties | |||
Base salary | 6,810 | 6,411 | 6,243 |
Bonus | 3,544 | 3,481 | 1,209 |
Pension contribution | 681 | 642 | 625 |
Other benefits | 593 | 502 | 499 |
Severance payment | 0 | 0 | 0 |
Warrant compensation expenses | 2,219 | 6,447 | 5,553 |
Total | 13,847 | 17,483 | 14,129 |
Britt Meelby Jensen | |||
Disclosure of transactions between related parties | |||
Base salary | 4,189 | 3,915 | 3,795 |
Bonus | 2,513 | 2,482 | 683 |
Pension contribution | 419 | 392 | 380 |
Other benefits | 320 | 231 | 231 |
Severance payment | 0 | 0 | 0 |
Warrant compensation expenses | 0 | 4,058 | 4,442 |
Total | 7,441 | 11,078 | 9,531 |
Mats Blom | |||
Disclosure of transactions between related parties | |||
Base salary | 2,621 | 2,496 | 2,448 |
Bonus | 1,031 | 999 | 526 |
Pension contribution | 262 | 250 | 245 |
Other benefits | 273 | 271 | 268 |
Severance payment | 0 | 0 | 0 |
Warrant compensation expenses | 2,219 | 2,389 | 1,111 |
Total | 6,406 | 6,405 | 4,598 |
Other Corporate Management | |||
Disclosure of transactions between related parties | |||
Base salary | 6,689 | 4,416 | 6,422 |
Bonus | 2,653 | 1,787 | 833 |
Pension contribution | 604 | 442 | 642 |
Other benefits | 1,035 | 388 | 1,324 |
Severance payment | 0 | 0 | 1,782 |
Warrant compensation expenses | 5,804 | 4,779 | 7,322 |
Total | kr 16,785 | kr 11,812 | kr 18,325 |
Number of other corporate management | director | 2 | 4 | |
Number of other corporate management resigned | director | 2 |
Information on staff and remu_5
Information on staff and remuneration - Programs granted (Details) | 12 Months Ended | |||
Dec. 31, 2018DKK (kr)Optionskr / shares | Dec. 31, 2017Options | Dec. 31, 2017DKK (kr) | Dec. 31, 2016Options | |
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 1,424,000 | 942,250 | 1,670,879 | 463,250 |
Number of warrants granted | 655,500 | 538,566 | 487,250 | |
Number of warrants, forfeited | (437,000) | (56,816) | (8,250) | |
Number of warrants, exercised | (7,500) | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 1,635,000 | 1,424,000 | 1,853,784 | 942,250 |
Program of 2010 - 10 Feb 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | 11,600 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | (11,600) | |
Number of warrants, end of the period | 0 | 0 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 70 | |||
Exercise price (DKK) | kr | kr 77 | |||
Volatility | 33.00% | |||
Risk-free interest rate | 3.09% | |||
Cost price (DKK) | kr / shares | kr 21.36 | |||
Program of 2010 - 17 Nov 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | 105,259 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | (105,259) | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 0 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 45.7 | |||
Exercise price (DKK) | kr | kr 50.27 | |||
Volatility | 34.00% | |||
Risk-free interest rate | 1.02% | |||
Cost price (DKK) | kr / shares | kr 12.90 | |||
Programs granted in 2011 - 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 429,784 | 728,629 | 1,055,854 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | (1,250) | |
Number of warrants, exercised | (28,000) | (77,712) | (314,375) | |
Number of warrants, expired | (183,425) | (221,133) | (11,600) | |
Number of warrants, end of the period | 218,359 | 429,784 | 728,629 | |
Program of 2010 - 10 Feb 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 6,250 | 151,741 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | (145,491) | |
Number of warrants, expired | 0 | (6,250) | 0 | |
Number of warrants, end of the period | 0 | 0 | 6,250 | |
Term (months) | 60 months | |||
Share price | kr | kr 70 | |||
Exercise price (DKK) | kr | kr 77 | |||
Volatility | 44.00% | |||
Risk-free interest rate | 0.37% | |||
Cost price (DKK) | kr / shares | kr 24.74 | |||
Program of 2010 - 19 Nov 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 214,883 | 214,883 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | (214,883) | 0 | |
Number of warrants, end of the period | 0 | 0 | 214,883 | |
Term (months) | 60 months | |||
Share price | kr | kr 86 | |||
Exercise price (DKK) | kr | kr 113.3 | |||
Volatility | 56.00% | |||
Risk-free interest rate | 0.86% | |||
Cost price (DKK) | kr / shares | kr 23.76 | |||
Program of 2010 - 8 Feb 2013 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 183,425 | 261,137 | 326,012 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | (1,250) | |
Number of warrants, exercised | 0 | (77,712) | (63,625) | |
Number of warrants, expired | (183,425) | 0 | 0 | |
Number of warrants, end of the period | 0 | 183,425 | 261,137 | |
Term (months) | 60 months | |||
Share price | kr | kr 79.05 | |||
Exercise price (DKK) | kr | kr 87.45 | |||
Volatility | 39.30% | |||
Risk-free interest rate | 0.66% | |||
Cost price (DKK) | kr / shares | kr 25.38 | |||
Program of 2010 - 1 Apr 2014 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | 100,000 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | (28,000) | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 72,000 | 100,000 | 100,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 69 | |||
Exercise price (DKK) | kr | kr 75.9 | |||
Volatility | 37.50% | |||
Risk-free interest rate | 0.71% | |||
Cost price (DKK) | kr / shares | kr 21.05 | |||
Program of 2010 - 25 Mar 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | 100,000 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 100,000 | 100,000 | 100,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 115.5 | |||
Exercise price (DKK) | kr | kr 127.05 | |||
Volatility | 41.90% | |||
Risk-free interest rate | (0.21%) | |||
Cost price (DKK) | kr / shares | kr 37.78 | |||
Program of 2010 - 05 May 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 46,359 | 46,359 | 46,359 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 46,359 | 46,359 | 46,359 | |
Term (months) | 60 months | |||
Share price | kr | kr 92 | |||
Exercise price (DKK) | kr | kr 101.2 | |||
Volatility | 43.70% | |||
Risk-free interest rate | (0.10%) | |||
Cost price (DKK) | kr / shares | kr 31.63 | |||
Program of 2015- 05 May 2015, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | 100,000 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | (100,000) | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 100,000 | 100,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 92 | |||
Exercise price (DKK) | kr | kr 101.2 | |||
Volatility | 43.70% | |||
Risk-free interest rate | (0.10%) | |||
Cost price (DKK) | kr / shares | kr 31.63 | |||
Program of 2015- 05 May 2015, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 349,750 | 357,250 | 363,250 | |
Number of warrants granted | 0 | 0 | 0 | |
Number of warrants, forfeited | 0 | (7,500) | (6,000) | |
Number of warrants, exercised | (7,500) | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 342,250 | 349,750 | 357,250 | |
Term (months) | 60 months | |||
Share price | kr | kr 92 | |||
Exercise price (DKK) | kr | kr 101.2 | |||
Volatility | 43.70% | |||
Risk-free interest rate | (0.10%) | |||
Cost price (DKK) | kr / shares | kr 31.63 | |||
Program of 2015- 05 April 2016, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 328,750 | 345,000 | 0 | |
Number of warrants granted | 0 | 0 | 347,250 | |
Number of warrants, forfeited | (7,000) | (16,250) | (2,250) | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 321,750 | 328,750 | 345,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 129.50 | |||
Exercise price (DKK) | kr | kr 142.45 | |||
Volatility | 43.50% | |||
Risk-free interest rate | (0.04%) | |||
Cost price (DKK) | kr / shares | kr 44.42 | |||
Program of 2015- 05 April 2016, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 85,434 | 100,000 | 0 | |
Number of warrants granted | 0 | 0 | 100,000 | |
Number of warrants, forfeited | (85,434) | (14,566) | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 85,434 | 100,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 129.5 | |||
Exercise price (DKK) | kr | kr 142.45 | |||
Volatility | 43.50% | |||
Risk-free interest rate | (0.04%) | |||
Cost price (DKK) | kr / shares | kr 44.42 | |||
Program of 2015- 15 July 2016 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 40,000 | 40,000 | 0 | |
Number of warrants granted | 0 | 0 | 40,000 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 40,000 | 40,000 | 40,000 | |
Term (months) | 60 months | |||
Share price | kr | kr 126 | |||
Exercise price (DKK) | kr | kr 138.6 | |||
Volatility | 45.00% | |||
Risk-free interest rate | (0.33%) | |||
Cost price (DKK) | kr / shares | kr 44.23 | |||
Program of 2015- 06 April 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 405,500 | 0 | 0 | |
Number of warrants granted | 0 | 424,000 | 0 | |
Number of warrants, forfeited | (24,500) | (18,500) | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 381,000 | 405,500 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 123 | |||
Exercise price (DKK) | kr | kr 135.3 | |||
Volatility | 43.60% | |||
Risk-free interest rate | (0.24%) | |||
Cost price (DKK) | kr / shares | kr 41.92 | |||
Program of 2015- 06 April 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 93,392 | 0 | 0 | |
Number of warrants granted | 0 | 93,392 | 0 | |
Number of warrants, forfeited | (93,392) | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 93,392 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 123 | |||
Exercise price (DKK) | kr | kr 135.3 | |||
Volatility | 43.60% | |||
Risk-free interest rate | (0.24%) | |||
Cost price (DKK) | kr / shares | kr 41.92 | |||
Program of 2015- 25 August 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 14,566 | 0 | 0 | |
Number of warrants granted | 0 | 14,566 | 0 | |
Number of warrants, forfeited | (14,566) | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 14,566 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 118.5 | |||
Exercise price (DKK) | kr | kr 142.45 | |||
Volatility | 43.00% | |||
Risk-free interest rate | (0.16%) | |||
Cost price (DKK) | kr / shares | kr 36.74 | |||
Program of 2015- 25 August 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 6,608 | 0 | 0 | |
Number of warrants granted | 0 | 6,608 | 0 | |
Number of warrants, forfeited | (6,608) | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 0 | 6,608 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 118.5 | |||
Exercise price (DKK) | kr | kr 135.3 | |||
Volatility | 43.00% | |||
Risk-free interest rate | (0.16%) | |||
Cost price (DKK) | kr / shares | kr 38.58 | |||
Program of 2015- 22 May 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | 0 | |
Number of warrants granted | 615,500 | 0 | 0 | |
Number of warrants, forfeited | (105,500) | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 510,000 | 0 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 100.8 | |||
Exercise price (DKK) | kr | kr 100.8 | |||
Volatility | 42.60% | |||
Risk-free interest rate | 0.05% | |||
Cost price (DKK) | kr / shares | kr 36.98 | |||
Program of 2015- 15 Oct 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | 0 | |
Number of warrants granted | 40,000 | 0 | 0 | |
Number of warrants, forfeited | 0 | 0 | 0 | |
Number of warrants, exercised | 0 | 0 | 0 | |
Number of warrants, expired | 0 | 0 | 0 | |
Number of warrants, end of the period | 40,000 | 0 | 0 | |
Term (months) | 60 months | |||
Share price | kr | kr 90 | |||
Exercise price (DKK) | kr | kr 90 | |||
Volatility | 42.50% | |||
Risk-free interest rate | (0.03%) | |||
Cost price (DKK) | kr / shares | kr 32.83 | |||
Executive Management | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 457,000 | 300,000 | ||
Number of warrants, end of the period | 217,000 | 457,000 | 300,000 | |
Executive Management | Program of 2010 - 10 Feb 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2010 - 17 Nov 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Programs granted in 2011 - 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 31,019 | ||
Number of warrants, end of the period | 0 | 0 | 31,019 | |
Executive Management | Program of 2010 - 10 Feb 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2010 - 19 Nov 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 31,019 | ||
Number of warrants, end of the period | 0 | 0 | 31,019 | |
Executive Management | Program of 2010 - 8 Feb 2013 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2010 - 1 Apr 2014 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2010 - 25 Mar 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2010 - 05 May 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2015- 05 May 2015, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | ||
Number of warrants, end of the period | 0 | 100,000 | 100,000 | |
Executive Management | Program of 2015- 05 May 2015, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 75,000 | 75,000 | ||
Number of warrants, end of the period | 75,000 | 75,000 | 75,000 | |
Executive Management | Program of 2015- 05 April 2016, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 25,000 | 25,000 | ||
Number of warrants, end of the period | 25,000 | 25,000 | 25,000 | |
Executive Management | Program of 2015- 05 April 2016, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 85,434 | 100,000 | ||
Number of warrants, end of the period | 0 | 85,434 | 100,000 | |
Executive Management | Program of 2015- 15 July 2016 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Executive Management | Program of 2015- 06 April 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 57,000 | 0 | ||
Number of warrants, end of the period | 57,000 | 57,000 | 0 | |
Executive Management | Program of 2015- 06 April 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 93,392 | 0 | ||
Number of warrants, end of the period | 0 | 93,392 | 0 | |
Executive Management | Program of 2015- 25 August 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 14,566 | 0 | ||
Number of warrants, end of the period | 0 | 14,566 | 0 | |
Executive Management | Program of 2015- 25 August 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 6,608 | 0 | ||
Number of warrants, end of the period | 0 | 6,608 | 0 | |
Executive Management | Program of 2015- 22 May 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 60,000 | 0 | 0 | |
Executive Management | Program of 2015- 15 Oct 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 967,000 | 642,250 | ||
Number of warrants, end of the period | 1,418,000 | 967,000 | 642,250 | |
Other employees | Program of 2010 - 10 Feb 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2010 - 17 Nov 2011 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Programs granted in 2011 - 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 429,784 | 697,610 | ||
Number of warrants, end of the period | 218,359 | 429,784 | 697,610 | |
Other employees | Program of 2010 - 10 Feb 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 6,250 | ||
Number of warrants, end of the period | 0 | 0 | 6,250 | |
Other employees | Program of 2010 - 19 Nov 2012 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 183,864 | ||
Number of warrants, end of the period | 0 | 0 | 183,864 | |
Other employees | Program of 2010 - 8 Feb 2013 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 183,425 | 261,137 | ||
Number of warrants, end of the period | 0 | 183,425 | 261,137 | |
Other employees | Program of 2010 - 1 Apr 2014 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | ||
Number of warrants, end of the period | 72,000 | 100,000 | 100,000 | |
Other employees | Program of 2010 - 25 Mar 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 100,000 | 100,000 | ||
Number of warrants, end of the period | 100,000 | 100,000 | 100,000 | |
Other employees | Program of 2010 - 05 May 2015 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 46,359 | 46,359 | ||
Number of warrants, end of the period | 46,359 | 46,359 | 46,359 | |
Other employees | Program of 2015- 05 May 2015, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2015- 05 May 2015, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 274,750 | 282,250 | ||
Number of warrants, end of the period | 267,250 | 274,750 | 282,250 | |
Other employees | Program of 2015- 05 April 2016, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 303,750 | 320,000 | ||
Number of warrants, end of the period | 296,750 | 303,750 | 320,000 | |
Other employees | Program of 2015- 05 April 2016, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2015- 15 July 2016 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 40,000 | 40,000 | ||
Number of warrants, end of the period | 40,000 | 40,000 | 40,000 | |
Other employees | Program of 2015- 06 April 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 348,500 | 0 | ||
Number of warrants, end of the period | 324,000 | 348,500 | 0 | |
Other employees | Program of 2015- 06 April 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2015- 25 August 2017, First | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2015- 25 August 2017, Second | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 0 | 0 | 0 | |
Other employees | Program of 2015- 22 May 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 450,000 | 0 | 0 | |
Other employees | Program of 2015- 15 Oct 2018 | ||||
Disclosure of Information on staff and remuneration | ||||
Number of warrants, beginning of the period | 0 | 0 | ||
Number of warrants, end of the period | 40,000 | 0 | 0 |
Information on staff and remu_6
Information on staff and remuneration - Employee warrant programs (Details) - Warrant programs - item | Oct. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Information on staff and remuneration | |||
Margin percentage for determine the exercise price of warrants | 10.00% | ||
Expiration period of warrants | 5 years | ||
Exercise period of warrants | 3 years | ||
Frequency of exercises of warrants | 4 | ||
Chief Executive Officer | |||
Disclosure of Information on staff and remuneration | |||
Vested period of warrants | 36 months | ||
Percentage of warrants vesting per month from the date of grant | 2.78% |
Information on staff and remu_7
Information on staff and remuneration - Employee incentive programs (Details) | 12 Months Ended | ||||||||
Dec. 31, 2018DKK (kr)Options | Dec. 31, 2017DKK (kr)Options | Dec. 31, 2016DKK (kr)Options | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016shares | Dec. 31, 2016DKK (kr) | Dec. 31, 2015Options | Nov. 02, 2015shares | |
Disclosure of Information on staff and remuneration | |||||||||
Number of warrants granted | 655,500 | 538,566 | 487,250 | ||||||
Number of warrants not yet granted | 1,635,000 | 1,424,000 | 942,250 | 1,853,359 | 1,853,784 | 1,670,879 | 463,250 | ||
Number of warrants exercised | 7,500 | 0 | 0 | ||||||
Number of warrants, expired | 0 | 0 | 0 | ||||||
Number of warrants, forfeited | 437,000 | 56,816 | 8,250 | ||||||
2010 employee warrant incentive program | |||||||||
Disclosure of Information on staff and remuneration | |||||||||
Number of warrants authorized | shares | 2,750,000 | ||||||||
Number of warrants granted | 2,355,495 | ||||||||
Number of warrants exercised | 1,579,809 | ||||||||
Number of warrants, expired | 422,327 | ||||||||
Number of warrants, forfeited | 135,000 | ||||||||
Proceeds from exercise of warrants | kr | kr 127,400,000 | kr 125,300,000 | kr 116,300,000 | ||||||
Number of warrants outstanding for exercise | 218,359 | ||||||||
The average traded share price on the exercise date | kr | kr 120.9 | ||||||||
2015 employee warrant incentive program | |||||||||
Disclosure of Information on staff and remuneration | |||||||||
Number of warrants authorized | shares | 2,750,000 | ||||||||
Number of warrants granted | 2,147,566 | ||||||||
Number of warrants not yet granted | 602,434 | ||||||||
Number of warrants exercised | 7,500 | ||||||||
Number of warrants, expired | 1,107,500 | ||||||||
Number of warrants, forfeited | 505,066 | ||||||||
Proceeds from exercise of warrants | kr | kr 800,000 | ||||||||
Number of warrants outstanding for exercise | 1,635,000 | ||||||||
The average traded share price on the exercise date | kr | kr 87.4 |
Information on staff and remu_8
Information on staff and remuneration - Effect on income statement (Details) - DKK (kr) kr in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Information on staff and remuneration | ||||
Fair value of warrants recognized | kr 17,469 | kr 20,156 | kr 22,727 | |
Compensation cost for warrant programs | 0 | 700 | 2,400 | |
Research and development expenses | 13,838 | 12,190 | 14,290 | |
Administrative expenses | 3,631 | 7,966 | 8,437 | |
Total Fair value of warrants recognized | 17,469 | 20,156 | 22,727 | |
Executive Management | ||||
Disclosure of Information on staff and remuneration | ||||
Fair value of warrants recognized | 2,200 | 6,400 | 5,600 | |
Total Fair value of warrants recognized | kr 2,200 | kr 6,400 | kr 5,600 | |
Chief Executive Officer | ||||
Disclosure of Information on staff and remuneration | ||||
Warrant reversed | kr 3,700 |
Other operating income (Details
Other operating income (Details) kr in Thousands, $ in Millions | Sep. 17, 2018USD ($) | Sep. 17, 2018DKK (kr) | Sep. 06, 2018USD ($) | Sep. 06, 2018DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015DKK (kr) | ||
Other operating income | |||||||||||
Gross proceeds from sale of future royalties and milestones | $ 205 | kr 1,310,200 | $ 205 | kr 1,310,200 | kr 1,310,237 | kr 0 | kr 0 | ||||
Royalty expenses regarding the above sale of future royalties and milestones | 176,900 | (176,882) | 0 | 0 | |||||||
Fee, advisors regarding the above sale of future royalties and milestones | kr 34,500 | (34,459) | 0 | 0 | |||||||
Research funding | 0 | 40 | 920 | ||||||||
Government grants | 630 | 567 | 777 | ||||||||
Total other operating income | 1,099,526 | 607 | [1] | 1,697 | [1] | kr 12,828 | |||||
Potential commercial milestones | $ | 85 | ||||||||||
Potential milestone payment from Sanofi | $ | 15 | $ 15 | |||||||||
Percentage of royalty expenses regarding the above sale of future royalties and milestones | 13.50% | 13.50% | |||||||||
Repayment of royalty bond | $ 24.7 | kr 157,600 | 24.7 | kr 157,600 | 24.7 | kr 158,311 | kr 176,360 | [1] | kr 0 | [1] | |
Sanofi | |||||||||||
Other operating income | |||||||||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | |||||||||
[1] | See note 1 to the consolidated financial statements. |
Financial income (Details)
Financial income (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Other operating income | ||||||
Interest income from financial assets measured at amortized costs | kr 4,263 | kr 2,048 | kr 592 | |||
Fair value adjustments of securities | 0 | 74 | 0 | |||
Exchange rate adjustments | 4,705 | 0 | 0 | |||
Dividend, securities | 1,020 | 0 | 0 | |||
Total financial income | kr 9,988 | kr 2,122 | [1] | kr 592 | [1] | kr 3,889 |
[1] | See note 1 to the consolidated financial statements. |
Financial expenses (Details)
Financial expenses (Details) - DKK (kr) kr in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financial expenses | ||||||
Interest expenses from finanacial liablities measured at amortized costs | kr 15,080 | kr 18,913 | kr 32,157 | |||
Amortization of financing costs | 18,347 | 5,748 | 8,369 | |||
Fair value adjustments of securities | 1,389 | 0 | 0 | |||
Loss on sale of securities | 881 | 0 | 0 | |||
Other financial expenses | 1,625 | 949 | 255 | |||
Exchange rate adjustments | 0 | 7,899 | 3,575 | |||
Total financial expenses | kr 37,322 | kr 33,509 | [1] | kr 44,356 | [1] | kr 42,394 |
[1] | See note 1 to the consolidated financial statements. |
Income tax benefit - Research a
Income tax benefit - Research and development expenses (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2018DKK (kr) | |
Maximum | |
Research and development expenses | kr 25 |
Income tax benefit - Reconcilia
Income tax benefit - Reconciliation of income tax (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax benefit | |||
Net result for the year before tax | kr 625,056 | kr (280,758) | kr (162,796) |
Tax rate | 22.00% | 22.00% | 22.00% |
Expected tax expenses/(benefit) | kr 137,512 | kr (61,767) | kr (35,815) |
Difference in tax rate in subsidiary | 9 | 0 | 0 |
Adjustment for nondeductible expenses | 56 | 62 | 100 |
Adjustment for exercised warrants | 2,228 | 1,732 | 36 |
Adjustment for R&D super deduction | (1,427) | 0 | 0 |
Tax effect on exercise of warrants | (8) | (688) | (2,864) |
Tax effect on expired warrants | (151) | 4,407 | 0 |
Change in tax assets (not recognized) | (94,445) | 50,754 | 33,043 |
Total income tax expense/benefit | kr 43,774 | kr (5,500) | kr (5,500) |
Income tax benefit - Breakdown
Income tax benefit - Breakdown of unrecognized deferred tax assets (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Breakdown of unrecognized deferred tax assets: | |||||
Tax losses carried forward (available indefinitely) | kr 580,932 | kr 873,515 | kr 722,186 | ||
Research and development expenses | 136,755 | 210,148 | 145,822 | ||
Rights | 35,849 | 43,019 | 43,019 | ||
Non-current assets | 50,308 | 67,590 | 62,953 | ||
Other | 79,986 | 104,377 | 102,074 | ||
Total temporary differences | kr 883,830 | kr 1,298,649 | kr 1,076,054 | ||
Tax rate | 22.00% | 22.00% | 22.00% | ||
Calculated potential deferred tax asset at local tax rate | kr 194,443 | kr 285,703 | kr 236,732 | ||
Write-down of deferred tax asset | (194,443) | (285,703) | (236,732) | ||
Recognized deferred tax asset | 0 | 0 | 0 | ||
Cash receivable relating to tax loss | kr 1,195 | 5,500 | [1] | 5,500 | kr 5,875 |
Tax losses | kr 156,500 | kr 81,500 | |||
[1] | See note 1 to the consolidated financial statements. |
Basic and diluted earnings pe_3
Basic and diluted earnings per share (Details) | 12 Months Ended | ||||||||
Dec. 31, 2018DKK (kr)Optionskr / sharesshares | Dec. 31, 2017DKK (kr)Optionskr / sharesshares | Dec. 31, 2016DKK (kr)Optionskr / sharesshares | Dec. 31, 2015DKK (kr)Optionskr / shares | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | |||
Basic and diluted result per share | |||||||||
Net result for the year | kr | kr 581,282,000 | kr (275,258,000) | [1] | kr (157,296,000) | [1] | kr (118,372,000) | |||
Net result used in the calculation of basic and diluted earnings per share | kr | kr 581,282,000 | kr (275,258,000) | kr (157,296,000) | ||||||
Weighted average number of ordinary shares | 30,754,948 | 27,918,271 | 24,873,940 | ||||||
Weighted average number of treasury shares | (64,223) | (64,223) | (564,223) | ||||||
Weighted average number of ordinary shares used in the calculation of basic earnings per share | 30,690,725 | 27,854,048 | 24,309,717 | ||||||
Weighted average number of ordinary shares used in the calculation of diluted earnings per share | 30,696,404 | 27,854,048 | 24,309,717 | ||||||
Basic earnings/loss per share(DKK/share) | kr / shares | kr 18.94 | kr (9.88) | [1] | kr (6.47) | [1] | kr (5.13) | |||
Diluted earnings/loss per share (DKK/share) | kr / shares | kr 18.94 | kr (9.88) | [1] | kr (6.47) | [1] | kr (5.13) | |||
Potential ordinary shares excluded or included due to antidilutive effect | |||||||||
Total outstanding warrants | 1,635,000 | 1,424,000 | 942,250 | 463,250 | 1,853,359 | 1,853,784 | 1,670,879 | ||
Outstanding warrants, that are dilutive | 72,000 | 0 | 0 | ||||||
Outstanding warrants, that are anti-dilutive | 1,781,359 | 1,853,784 | 1,670,879 | ||||||
2010 employee incentive program | |||||||||
Potential ordinary shares excluded or included due to antidilutive effect | |||||||||
Total outstanding warrants | kr | 218,359 | 429,784 | 728,629 | ||||||
2015 employee incentive program | |||||||||
Potential ordinary shares excluded or included due to antidilutive effect | |||||||||
Total outstanding warrants | kr | 1,635,000 | 1,424,000 | 942,250 | ||||||
[1] | See note 1 to the consolidated financial statements. |
Property, plant and equipment_2
Property, plant and equipment (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Property, plant and equipment | |||||
Impairment loss | kr 0 | kr 0 | kr 0 | ||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 14,855 | [1] | 12,081 | 14,672 | |
Property, plant and equipment at end of period | kr 13,650 | 14,855 | [1] | 12,081 | |
Plant and machinery | |||||
Property, plant and equipment | |||||
Useful lives of asset (in years) | 5 years | ||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | kr 14,855 | ||||
Depreciation for the year | 3,941 | 3,883 | |||
Property, plant and equipment at end of period | 13,650 | 14,855 | |||
Depreciation for the financial year has been charged as: | |||||
Research and development expenses | 3,941 | 3,883 | |||
Administrative expenses | 0 | 0 | |||
Total | 3,941 | 3,883 | |||
Plant and machinery | Cost | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 53,629 | 47,170 | |||
Adjustment to prior year | 0 | ||||
Additions | 2,748 | 6,657 | |||
Retirements | (832) | (198) | |||
Property, plant and equipment at end of period | 55,545 | 53,629 | 47,170 | ||
Plant and machinery | Accumulated depreciation | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 38,774 | 35,089 | |||
Depreciation for the year | 3,941 | 3,883 | |||
Retirements | (820) | (198) | |||
Property, plant and equipment at end of period | 41,895 | 38,774 | 35,089 | ||
Depreciation for the financial year has been charged as: | |||||
Total | 3,941 | 3,883 | |||
Other fixtures and fittings | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 953 | ||||
Depreciation for the year | 449 | 685 | |||
Property, plant and equipment at end of period | 1,794 | 953 | |||
Depreciation for the financial year has been charged as: | |||||
Research and development expenses | 382 | 569 | |||
Administrative expenses | 67 | 116 | |||
Total | 449 | 685 | |||
Other fixtures and fittings | Cost | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 4,382 | 3,612 | |||
Adjustment to prior year | 286 | ||||
Additions | 1,290 | 484 | |||
Retirements | (542) | 0 | |||
Property, plant and equipment at end of period | 5,130 | 4,382 | 3,612 | ||
Other fixtures and fittings | Accumulated depreciation | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 3,429 | 2,458 | |||
Depreciation for the year | 449 | 685 | |||
Retirements | (542) | 0 | |||
Property, plant and equipment at end of period | 3,336 | 3,429 | 2,458 | ||
Depreciation for the financial year has been charged as: | |||||
Total | kr 449 | 685 | |||
Other fixtures and fittings | Minimum | |||||
Property, plant and equipment | |||||
Useful lives of asset (in years) | 3 years | ||||
Other fixtures and fittings | Maximum | |||||
Property, plant and equipment | |||||
Useful lives of asset (in years) | 5 years | ||||
Leasehold improvements | |||||
Property, plant and equipment | |||||
Useful lives of asset (in years) | 5 years | ||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | kr 304 | ||||
Depreciation for the year | 118 | 189 | |||
Property, plant and equipment at end of period | 186 | 304 | |||
Depreciation for the financial year has been charged as: | |||||
Research and development expenses | 100 | 157 | |||
Administrative expenses | 18 | 32 | |||
Total | 118 | 189 | |||
Leasehold improvements | Cost | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 10,800 | 10,715 | |||
Adjustment to prior year | 0 | ||||
Additions | 0 | 85 | |||
Retirements | 0 | 0 | |||
Property, plant and equipment at end of period | 10,800 | 10,800 | 10,715 | ||
Leasehold improvements | Accumulated depreciation | |||||
Changes in property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 10,496 | 10,307 | |||
Depreciation for the year | 118 | 189 | |||
Retirements | 0 | 0 | |||
Property, plant and equipment at end of period | 10,614 | 10,496 | kr 10,307 | ||
Depreciation for the financial year has been charged as: | |||||
Total | kr 118 | kr 189 | |||
[1] | See note 1 to the consolidated financial statements. |
Other investments (Details)
Other investments (Details) kr in Thousands, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017DKK (kr) | |
Other investments | |||||
Other investments in Beta Bionics, Inc. | $ 5 | kr 32,582 | $ 1.5 | kr 9,312 | [1] |
Ownership percentage | 2.00% | 2.00% | 0.90% | 0.90% | |
Fair value of other investments in Beta Bionics, Inc. | kr 32,600 | kr 9,300 | |||
[1] | See note 1 to the consolidated financial statements. |
Trade receivables (Details)
Trade receivables (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2018DKK (kr) | |
Trade receivables | |
Overdue trade receivables | kr 0 |
Minimum | |
Trade receivables | |
Due period trade receivables related to royalty | 30 days |
Maximum | |
Trade receivables | |
Due period trade receivables related to royalty | 60 days |
Other receivables (Details)
Other receivables (Details) - DKK (kr) kr in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other receivables | ||
VAT | kr 2,980 | kr 3,378 |
Other | 388 | 1,601 |
Total other receivables | kr 3,368 | kr 4,979 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - DKK (kr) kr in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] | |
Cash and cash equivalents | |||||||
Cash and cash equivalents | kr 860,635 | kr 588,718 | [1] | kr 323,330 | kr 418,796 | ||
Restricted cash | 5,900 | ||||||
DKK | |||||||
Cash and cash equivalents | |||||||
Cash and cash equivalents | 343,585 | 12,824 | |||||
USD | |||||||
Cash and cash equivalents | |||||||
Cash and cash equivalents | 96,526 | 252,884 | |||||
EUR | |||||||
Cash and cash equivalents | |||||||
Cash and cash equivalents | kr 420,524 | kr 323,010 | |||||
[1] | See note 1 to the consolidated financial statements. |
Share capital (Details)
Share capital (Details) - DKK (kr) | Dec. 14, 2018 | Sep. 14, 2018 | Nov. 20, 2017 | Sep. 22, 2017 | Sep. 01, 2017 | Aug. 18, 2017 | Aug. 15, 2017 | Aug. 15, 2017 | Aug. 14, 2017 | Jun. 15, 2017 | May 30, 2017 | Apr. 13, 2017 | Mar. 23, 2017 | Dec. 08, 2016 | Nov. 25, 2016 | Nov. 17, 2016 | Sep. 29, 2016 | Sep. 23, 2016 | Sep. 06, 2016 | Jun. 16, 2016 | May 26, 2016 | Apr. 14, 2016 | Mar. 30, 2016 | Dec. 04, 2015 | Nov. 13, 2015 | Nov. 04, 2015 | Sep. 26, 2015 | Sep. 08, 2015 | Jun. 20, 2015 | Jun. 02, 2015 | Apr. 11, 2015 | Mar. 21, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2001 | |||
Disclosure of classes of share capital | |||||||||||||||||||||||||||||||||||||||||
Share capital at beginning of period | kr 30,751,327 | [1] | kr 26,142,365 | kr 24,352,769 | |||||||||||||||||||||||||||||||||||||
Capital increase during the period | kr 28,000 | kr 7,500 | kr 2,500 | kr 28,675 | kr 1,500 | kr 156,250 | kr 4,375,000 | kr 8,537 | kr 5,000 | kr 22,000 | kr 9,500 | kr 13,999 | kr 57,913 | kr 8,200 | kr 1,475,221 | kr 45,457 | kr 7,400 | kr 41,269 | kr 43,071 | kr 50,453 | kr 46,613 | kr 63,470 | kr 176,456 | kr 60,843 | kr 150,702 | kr 383,190 | kr 46,521 | kr 51,487 | kr 106,220 | kr 120,833 | |||||||||||
Share capital at end of period | 30,786,827 | 30,751,327 | [1] | 26,142,365 | kr 23,193,047 | ||||||||||||||||||||||||||||||||||||
Changes in share capital | kr 2,862,000 | kr 573,650,000 | 165,007,000 | kr 0 | |||||||||||||||||||||||||||||||||||||
Ordinary shares authorized | 32,640,186 | 32,840,494 | |||||||||||||||||||||||||||||||||||||||
Shares issued | 30,786,827 | 30,751,327 | |||||||||||||||||||||||||||||||||||||||
Overallotment option (as a percent) | 15.00% | ||||||||||||||||||||||||||||||||||||||||
Sale of treasury shares | 500,000 | 500,000 | |||||||||||||||||||||||||||||||||||||||
Proceeds from initial public offering | kr 567,100,000 | kr 0 | kr 567,076,000 | [1] | 0 | [1] | |||||||||||||||||||||||||||||||||||
Expenses related to the private offering | kr 71,261,000 | kr 7,861,000 | |||||||||||||||||||||||||||||||||||||||
Treasury shares (in shares) | 64,223 | 64,223 | |||||||||||||||||||||||||||||||||||||||
Treasury shares held (as a percent) | 0.20% | 0.20% | |||||||||||||||||||||||||||||||||||||||
Fair value of treasury shares | kr 5,300,000 | kr 5,500,000 | |||||||||||||||||||||||||||||||||||||||
Treasury shares purchased | 1,700,000 | kr 400,000 | kr 1,300,000 | ||||||||||||||||||||||||||||||||||||||
Private Placement | |||||||||||||||||||||||||||||||||||||||||
Disclosure of classes of share capital | |||||||||||||||||||||||||||||||||||||||||
Expenses related to the private offering | kr 71,500,000 | ||||||||||||||||||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||||||||||||||||||
Disclosure of classes of share capital | |||||||||||||||||||||||||||||||||||||||||
Expenses related to the private offering | kr 100,000 | kr 100,000 | |||||||||||||||||||||||||||||||||||||||
[1] | See note 1 to the consolidated financial statements. |
Royalty bond (Details)
Royalty bond (Details) kr in Thousands, $ in Millions | Sep. 17, 2018USD ($) | Sep. 17, 2018DKK (kr) | Sep. 06, 2018USD ($) | Sep. 06, 2018DKK (kr) | Mar. 15, 2017USD ($) | Mar. 15, 2017DKK (kr) | Dec. 11, 2014USD ($) | Dec. 31, 2017DKK (kr) | Feb. 28, 2017USD ($) | Feb. 28, 2017DKK (kr) | Dec. 31, 2014subsidiary | Mar. 31, 2017DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | Mar. 15, 2017DKK (kr) | Dec. 11, 2014DKK (kr) | ||
Royalty bond | ||||||||||||||||||||
Number of wholly owned subsidiary | subsidiary | 4 | |||||||||||||||||||
Ownership interest in Subsidiaries (in percentage) | 100.00% | |||||||||||||||||||
Stated fixed interest rate | 9.375% | 9.375% | ||||||||||||||||||
Restricted cash held in Milestone payment reserve | $ 26.9 | kr 184,000 | ||||||||||||||||||
Amount transferred to restricted cash | $ 8.7 | kr 60,700 | ||||||||||||||||||
Milestone payments received from Sanofi | $ | $ 10 | |||||||||||||||||||
Amount of restricted cash used to repay outstanding bond | $ 25 | kr 175,000 | ||||||||||||||||||
Amount of loss recognised due to adjustment to the carrying amount of bond | kr 11,200 | |||||||||||||||||||
Amount of fee paid | 5,200 | |||||||||||||||||||
Amount of fee capitalized | 3,500 | |||||||||||||||||||
Amount of fee recognized in consolidated income statement | 1,700 | |||||||||||||||||||
Amount of gain recognised due to adjustment to the carrying amount of royalty bond | kr 10,800 | |||||||||||||||||||
Potential commercial milestones to sell future royalties | $ | $ 85 | |||||||||||||||||||
Gross proceeds from sale of future royalties and milestones | $ 205 | kr 1,310,200 | 205 | kr 1,310,200 | kr 1,310,237 | kr 0 | kr 0 | |||||||||||||
Repayment of royalty bond | $ 24.7 | kr 157,600 | 24.7 | kr 157,600 | $ 24.7 | 158,311 | 176,360 | [1] | 0 | [1] | ||||||||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | ||||||||||||||||||
Carrying amount of royalty bond net of capitalized financing costs | 0 | 153,800 | ||||||||||||||||||
Financing costs capitalized | 0 | 18,100 | ||||||||||||||||||
Interest payable on royalty bond | 4,295 | kr 0 | 4,295 | |||||||||||||||||
Principal repayment (in percent) | 50.40% | 50.40% | ||||||||||||||||||
Cash flows regarding royalty bond | ||||||||||||||||||||
Royalty bond payable | kr 332,243 | kr 135,734 | 332,243 | |||||||||||||||||
Financing cash flows (repayment) | (158,311) | (176,360) | ||||||||||||||||||
Amortization of financing costs | 18,347 | 5,748 | ||||||||||||||||||
Exchange rate adjustments | 4,230 | (25,897) | ||||||||||||||||||
Royalty bond payable | kr 135,734 | kr 0 | kr 135,734 | kr 332,243 | ||||||||||||||||
ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S | ||||||||||||||||||||
Royalty bond | ||||||||||||||||||||
Portion of royalty interest transferred | 86.50% | |||||||||||||||||||
Portion of milestone payment transferred | 86.50% | |||||||||||||||||||
Aggregate remaining regulatory milestone payment | $ | $ 60 | |||||||||||||||||||
ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S | Senior secured notes | ||||||||||||||||||||
Royalty bond | ||||||||||||||||||||
Issuance of the royalty bond | $ 50 | kr 299,300 | ||||||||||||||||||
Stated fixed interest rate | 9.375% | 9.375% | ||||||||||||||||||
[1] | See note 1 to the consolidated financial statements. |
Other liabilities (Details)
Other liabilities (Details) - DKK (kr) kr in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other liabilities | |||||
Severance payment | kr 925 | kr 896 | |||
Employee benefits | 34,971 | 28,165 | |||
Royalty payable to third party | 6,682 | 763 | |||
Interest payable on royalty bond | 0 | 4,295 | |||
Investment in Beta Bionics | 22,803 | 0 | |||
Other payables | 15,483 | 7,335 | |||
Total other liabilities | kr 80,864 | kr 41,454 | [1] | kr 63,753 | kr 48,191 |
[1] | See note 1 to the consolidated financial statements. |
Contingent assets, liabilitie_3
Contingent assets, liabilities and other contractual obligations (Details) kr in Millions, $ in Millions | Sep. 06, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) |
contractual obligations | ||||
Potential milestone payment from Sanofi | $ | $ 15 | $ 15 | ||
With in 1 year | ||||
contractual obligations | ||||
Total contractual obligations | kr 245.6 | kr 76.6 | ||
Later than one year but not later than two years | ||||
contractual obligations | ||||
Total contractual obligations | 156.4 | 52.6 | ||
Later than two year but not later than three years | ||||
contractual obligations | ||||
Total contractual obligations | kr 89.2 | kr 24 |
Contingent assets, liabilitie_4
Contingent assets, liabilities and other contractual obligations - Lease payments and other rental agreements (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future minimum lease payments related to operating lease agreements : | |||
Total future minimum lease payments | kr 67,507 | kr 7,002 | |
Lease expense | 7,900 | 7,400 | kr 7,400 |
Research and development expenses | 6,700 | 6,100 | 6,100 |
Administrative expense | 1,200 | 1,300 | kr 1,300 |
With in 1 year | |||
Future minimum lease payments related to operating lease agreements : | |||
Lease expense | 6,945 | 4,292 | |
1 - 3 years | |||
Future minimum lease payments related to operating lease agreements : | |||
Lease expense | 31,098 | 2,593 | |
4-5 years | |||
Future minimum lease payments related to operating lease agreements : | |||
Lease expense | kr 29,464 | kr 117 | |
Minimum | |||
Future minimum lease payments related to operating lease agreements : | |||
Lease term | 6 months | ||
Maximum | |||
Future minimum lease payments related to operating lease agreements : | |||
Lease term | 156 months |
Financial risks (Details)
Financial risks (Details) kr in Thousands, $ in Millions | Sep. 17, 2018USD ($) | Sep. 17, 2018DKK (kr) | Sep. 06, 2018USD ($) | Sep. 06, 2018DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016DKK (kr) | [1] | |
Financial risks | ||||||||||
Repayment of royalty bond | $ 24.7 | kr 157,600 | $ 24.7 | kr 157,600 | $ 24.7 | kr 158,311 | kr 176,360 | [1] | kr 0 | |
Cash | kr 96,500 | kr 252,900 | ||||||||
Average weighted duration of the bond portfolio | 3 years | 3 years | ||||||||
Interest rate | 9.375% | |||||||||
USD | ||||||||||
Financial risks | ||||||||||
Increase (decrease) in financial instrument due to reasonably possible change in designated risk component | kr 9,627 | kr 12,304 | ||||||||
Currency appreciation risk | ||||||||||
Financial risks | ||||||||||
Percentage of reasonably possible change in risk assumption | (10.00%) | (10.00%) | ||||||||
Currency depreciation risk | ||||||||||
Financial risks | ||||||||||
Percentage of reasonably possible change in risk assumption | 10.00% | 10.00% | ||||||||
Interest rate | ||||||||||
Financial risks | ||||||||||
Increase (decrease) in financial instrument due to reasonably possible change in designated risk component | kr 7,974 | kr 5,562 | ||||||||
Interest rate appreciation risk | ||||||||||
Financial risks | ||||||||||
Percentage of reasonably possible change in risk assumption | 1.00% | |||||||||
Interest rate depreciation risk | ||||||||||
Financial risks | ||||||||||
Percentage of reasonably possible change in risk assumption | 1.00% | |||||||||
[1] | See note 1 to the consolidated financial statements. |
Financial risks - Contractual m
Financial risks - Contractual maturity (Liquidity risk) (Details) - DKK (kr) kr in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | kr 113,516 | kr 249,095 |
Interest rate | 9.375% | |
Trade payables | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 32,652 | kr 29,428 |
Royalty bond repayments | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 135,734 | |
Interest payments on royalty bond | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 49,691 | |
Other | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 80,864 | 34,242 |
Less than 6 months | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 113,516 | 72,320 |
Less than 6 months | Trade payables | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 32,652 | 29,428 |
Less than 6 months | Royalty bond repayments | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 1,401 | |
Less than 6 months | Interest payments on royalty bond | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 7,249 | |
Less than 6 months | Other | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 80,864 | 34,242 |
6 to 12 months | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 0 | 8,649 |
6 to 12 months | Trade payables | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 0 | 0 |
6 to 12 months | Royalty bond repayments | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 1,347 | |
6 to 12 months | Interest payments on royalty bond | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 7,302 | |
6 to 12 months | Other | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 0 | 0 |
1 to 5 years | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 0 | 168,126 |
1 to 5 years | Trade payables | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 0 | 0 |
1 to 5 years | Royalty bond repayments | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 132,986 | |
1 to 5 years | Interest payments on royalty bond | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | 35,140 | |
1 to 5 years | Other | ||
Contractual maturity (Liquidity risk) | ||
Total financial liabilities | kr 0 | kr 0 |
Financial risks - Fair value me
Financial risks - Fair value measurement of financial instruments (Details) - DKK (kr) kr in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Categories of financial instruments | ||
Financial assets measured at fair value | kr 867,277 | kr 605,268 |
Financial assets measured at fair value | 331,193 | 84,423 |
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 113,516 | 206,616 |
Royalty bond | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 0 | 135,734 |
Trade payables | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 32,652 | 29,428 |
Other liabilities | ||
Categories of financial instruments | ||
Financial liabilities measured at amortized cost | 80,864 | 41,454 |
Trade receivables | ||
Categories of financial instruments | ||
Financial assets measured at fair value | 3,274 | 5,679 |
Other receivables | ||
Categories of financial instruments | ||
Financial assets measured at fair value | 3,368 | 4,979 |
Restricted cash | ||
Categories of financial instruments | ||
Financial assets measured at fair value | 0 | 5,892 |
Cash and cash equivalents | ||
Categories of financial instruments | ||
Financial assets measured at fair value | 860,635 | 588,718 |
Securities | ||
Categories of financial instruments | ||
Financial assets measured at fair value | 298,611 | 75,111 |
Other investments | ||
Categories of financial instruments | ||
Financial assets measured at fair value | kr 32,582 | kr 9,312 |
Related parties (Details)
Related parties (Details) | Dec. 31, 2018Voteitem |
Disclosure of transactions between related parties | |
Number of related parties with controlling interest | item | 0 |
Sunstone LSV Management A/S, Copenhagen, Denmark | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Wellington Management Group LLP, Boston, U.S | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Van Herk Investments, Rotterdam, Netherlands | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Bank Julius Bar & Co. AG, Zurich, Switzerland | |
Disclosure of transactions between related parties | |
Percent of voting rights held by shareholder | 5.00% |
Percent of share capital held by shareholder | 5.00% |
Number of votes per share | 1 |
Adjustments for non-cash item_2
Adjustments for non-cash items (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Adjustments for non-cash items | |||||
Depreciation | kr 4,508 | kr 4,757 | kr 5,410 | ||
Warrant compensation expenses | 17,468 | 20,156 | 22,727 | ||
Income tax receipt | 0 | (5,500) | (5,500) | ||
Income tax expense | 43,774 | 0 | 0 | ||
Financial income | 0 | (2,048) | (592) | ||
Financial expenses | 19,736 | 25,610 | 40,781 | ||
Non paid royalty expenses regarding sale of future royalties and milestones | 6,575 | 0 | 0 | ||
Exchange rate adjustments | 9,865 | (17,596) | (5,141) | ||
Total adjustments | kr 101,926 | kr 25,379 | [1] | kr 57,685 | [1] |
[1] | See note 1 to the consolidated financial statements. |
Change in working capital (Deta
Change in working capital (Details) - DKK (kr) kr in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Change in working capital | |||||
Increase/decrease in receivables | kr (471) | kr 1,306 | kr 143,212 | ||
Increase/decrease in payables | 13,256 | (12,610) | 13,626 | ||
Change in working capital | kr 12,785 | kr (11,304) | [1] | kr 156,838 | [1] |
[1] | See note 1 to the consolidated financial statements. |