Zealand Pharma A/S (ZLDPF) 6-K 13 Mar 20 2019 FY Company announcement – No. 03 / 2020 Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2019
Document and Entity Information
Entity Registrant Name	Zealand Pharma A/S
Entity Central Index Key	0001674988
Document Type	6-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Consolidated income statements

Consolidated income statements - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	[1]	Dec. 31, 2017	[1]
Consolidated income statements
Revenue	kr 41,333	kr 37,977		kr 136,322
Royalty expenses	(415)	(3,356)		(14,163)
Research and development expenses	(561,423)	(438,219)		(323,949)
Administrative expenses	(67,881)	(43,543)		(47,343)
Other operating income	444	1,099,526		607
Operating result	(587,942)	652,385		(248,526)
Financial income	14,655	9,988		2,122
Financial expenses	(3,390)	(37,322)		(33,509)
Result before tax	(576,677)	625,051		(279,913)
Income tax	5,136	(43,773)		5,500
Net result for the year	kr (571,541)	kr 581,278		kr (274,413)
Earnings/loss per share - DKK
Basic earnings/loss per share	kr (16.91)	kr 18.94		kr (9.85)
Diluted earnings/loss per share	kr (16.91)	kr 18.94		kr (9.85)
[1]	See note 1 to the consolidated financial statements.

Consolidated statements of comp

Consolidated statements of comprehensive income - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	[1]	Dec. 31, 2017	[1]
Consolidated statements of comprehensive income
Net result for the year	kr (571,541)	kr 581,278		kr (274,413)
Other comprehensive income (loss)	0	0		0
Comprehensive result for the year	kr (571,541)	kr 581,278		kr (274,413)
[1]	See note 1 to the consolidated financial statements.

Consolidated statements of fina

Consolidated statements of financial position $ in Millions	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)	[1]	Dec. 31, 2017DKK (kr)
Non-current assets
Licenses, rights and patents	kr 2,480,000	kr 0		kr 0
Plant and machinery	13,457,000	13,650,000		14,855,000
Other fixtures and fittings, tools and equipment	8,337,000	1,794,000		953,000
Leasehold improvements	3,913,000	186,000		304,000
Fixed assets under construction	14,001,000	0		0
Right-of-use assets	85,632,000	0		0
Deposits	9,012,000	2,762,000		2,729,000
Restricted cash	0	0		5,892,000
Other investments	35,632,000	32,582,000		9,312,000
Total non-current assets	172,464,000	50,974,000		34,045,000
Current assets
Trade receivables	751,000	3,274,000		5,679,000
Prepaid expenses	30,755,000	11,740,000		7,253,000
Corporate tax receivable	7,101,000	1,195,000		5,500,000
Other receivables	7,935,000	3,368,000		4,979,000
Marketable securities	299,448,000	298,611,000		75,111,000
Cash and cash equivalents	1,081,060,000	860,635,000		588,718,000	[1]
Total current assets	1,427,050,000	1,178,823,000		687,240,000
Total assets	1,599,514,000	1,229,797,000		721,285,000
Liabilities and equity
Share capital	36,054,661	30,786,827		30,751,327
Share premium	2,650,142,000	1,957,477,000		1,937,179,000
Retained losses	(1,443,524,000)	(871,983,000)		(1,453,261,000)
Equity	1,242,673,000	1,116,281,000		514,669,000
Royalty bond	0	0		132,986,000
Deferred revenue	83,639,000	0		0
Lease liabilities	78,068,000	0		0
Non-current liabilities	161,707,000	0		132,986,000
Trade payables	57,533,000	32,652,000		29,428,000
Corporate tax payables	614,000	0		0
Royalty bond	0	0		2,748,000
Lease liabilities	7,692,000	0		0
Deferred revenue	56,251,000	0		0
Other liabilities	73,044,000	80,864,000		41,454,000
Current liabilities	195,134,000	113,516,000		73,630,000
Total liabilities	356,841,000	113,516,000		206,616,000
Total equity and liabilities	kr 1,599,514,000	kr 1,229,797,000		kr 721,285,000
[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, 2019DKK (kr)	Dec. 31, 2018DKK (kr)		Dec. 31, 2017DKK (kr)
Consolidated statements of cash flows
Net result for the year		kr (571,541)	kr 581,278	[1]	kr (274,413)	[1]
Adjustments for non-cash items		9,207	101,930	[1]	24,534	[1]
Change in working capital		10,873	12,785	[1]	(11,304)	[1]
Deferred revenue		139,890	0	[1]	0	[1]
Financial income received		5,413	4,263	[1]	2,048	[1]
Financial expenses paid		(3,390)	(16,705)	[1]	(25,111)	[1]
Sale of future royalties and milestones		0	(1,105,471)	[1]	0	[1]
Income tax receipt		93	5,500	[1]	5,500	[1]
Income tax paid		0	(45,000)	[1]	0	[1]
Cash (outflow)/inflow from operating activities		(409,455)	(461,420)	[1]	(278,746)	[1]
Transfer to restricted cash related to royalty bond		0	0	[1]	(60,675)	[1]
Transfer from restricted cash related to royalty bond		0	6,124	[1]	365,795	[1]
Transfer from restricted cash for royalty bond, interest		0	0	[1]	7,725	[1]
Sale of future royalties and milestones		0	1,275,802	[1]	0	[1]
Royalty expenses related to sale of future royalties and milestones		0	(170,331)	[1]	0	[1]
Change in deposit		(6,250)	(33)	[1]	(39)	[1]
Purchase of other investments		(22,803)	0	[1]	(9,312)	[1]
Purchase of marketable securities		0	(299,849)	[1]	(75,037)	[1]
Sale of securities		0	74,230	[1]	0	[1]
Purchase of property, plant and equipment		(21,036)	(4,038)	[1]	(7,226)	[1]
Purchase of intangible assets		(2,480)	0	[1]	0	[1]
Sale of fixed assets		25	0	[1]	120	[1]
Dividends on securities		878	1,020	[1]	0	[1]
Cash (outflow)/inflow from investing activities		(51,666)	882,925	[1]	221,351	[1]
Proceeds from issuance of shares related to exercise of warrants		52,468	2,884	[1]	6,790	[1]
Proceeds from issuance of shares (2017: IPO)		645,145	0	[1]	567,076	[1]
Costs related to issuance of shares (2017: IPO)		(14,444)	(22)	[1]	(59,576)	[1]
Leasing installments		(8,689)	0	[1]	0	[1]
Repayment of royalty bond		0	(158,311)	[1]	(176,360)	[1]
Cash (outflow)/inflow from financing activities		674,480	(155,449)	[1]	337,930	[1]
Increase/(Decrease) in cash and cash equivalents		213,359	266,056	[1]	280,535	[1]
Cash and cash equivalents at the beginning of the year	[1]	860,635	588,718		323,330
Exchange rate adjustments		7,066	5,861	[1]	(15,147)	[1]
Cash and cash equivalents at the end of the year		kr 1,081,060	kr 860,635	[1]	kr 588,718	[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 losses	Total
Equity at beginning of period (As originally reported) at Dec. 31, 2016		kr 26,142	kr 1,441,263	kr (1,200,023)	kr 267,382
Correction of error	[1]	0	(21,175)	21,175	0
Equity at beginning of period (As originally reported) at Dec. 31, 2016		26,142	1,441,263	(1,200,023)	267,382
Net result for the year | As originally reported					(275,258)
Net result for the year		0	0	(274,413)	(274,413)	[1]
Warrant compensation expenses		0	19,311	0	19,311
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		30,751	1,959,199	(1,475,281)	514,669
Equity at end of period at Dec. 31, 2017		30,751	1,937,179	(1,453,261)	514,669
Restated equity		26,142	1,420,088	(1,178,848)	267,382
Correction of error		0	(22,020)	22,020	0
Equity at beginning of period (As originally reported) at Dec. 31, 2017		30,751	1,959,199	(1,475,281)	514,669
Equity at beginning of period at Dec. 31, 2017		30,751	1,937,179	(1,453,261)	514,669
Net result for the year | As originally reported					581,282
Net result for the year		0	0	581,278	581,278	[1]
Warrant compensation expenses		0	17,472	0	17,472
Capital increases		36	2,826	0	2,862
Costs related to capital increases					(100)
Equity at end of period (As originally reported) at Dec. 31, 2018		30,787	1,979,493	(893,999)	1,116,281
Equity at end of period at Dec. 31, 2018	[1]				1,116,281
Restated equity		30,751	1,937,179	(1,453,261)	514,669
Correction of error		0	(22,016)	22,016	0
Restated equity		30,787	1,957,477	(871,983)	1,116,281
Equity at beginning of period (As originally reported) at Dec. 31, 2018		30,787	1,979,493	(893,999)	1,116,281
Equity at beginning of period at Dec. 31, 2018	[1]				1,116,281
Net result for the year		0	0	(571,541)	(571,541)
Warrant compensation expenses		0	14,764	0	14,764
Capital increases		5,268	692,345	0	697,613
Costs related to capital increases		0	(14,444)	0	(14,444)
Equity at end of period at Dec. 31, 2019		36,055	2,650,142	(1,443,524)	1,242,673
Restated equity		kr 30,787	kr 1,957,477	kr (871,983)	kr 1,116,281
[1]	See note 1 to the consolidated financial statements.

Business overview

Business overview	12 Months Ended
	Dec. 31, 2019
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 peptide-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 Ingelheim and one discover and develop collaboration with Alexion Pharmaceuticals. In September 2018 we entered into an agreement with Royalty Pharma to transfer all the royalties that we were due to earn from our 2003 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 has continued in 2019 with expected full enrolment in 2020. On track for 2021 results and new drug application. Dasiglucagon, a Zealand-invented proprietary glucagon analog currently in development for three different indications: 2 Dasiglucagon HypoPal ® 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 clinical program with dasiglucagon for the treatment of severe hypoglycemia was completed and New Drug Application submission is planned for first part of 2020. 3 Dasiglucagon in Dual-hormone pump therapy for diabetes treatment Zealand has already reported positive results from two Phase 2a trials in 2017. In 2019 Phase 2 trial was completed and Phase 3 is planned for late 2020. 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 January 2018, the FDA issued a safe-to-proceed letter. Two pivotal Phase 3 trials were initiated in 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 2020 and the years to come. Other significant events during 2019 are the agreement with Alexion Pharmaceuticals to collaborate on developing a complement C3 Inhibitor and the acquisition of Encycle Therapeutics securing pre-clinical  4  7 integrin inhibitor and access to screening library of approximately 5,000 peptide-like macrocycles. Both being part of the pre-clinical expansion of the pipeline. 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 % Encycle Therapeutics Inc. Canada 100 % 100 % ZP SPV 3 K/S Denmark 100 % 100 % ZP General Partner 3 ApS Denmark 100 % 100 % ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S Denmark 100 % 100 % ZP General Partner 2 ApS Denmark 100 % 100 %

Significant accounting policies

Significant accounting policies, and significant accounting estimates and assessments	12 Months Ended
	Dec. 31, 2019
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 2019 Annual Report of Zealand on March 12, 2020. The Annual Report will be submitted to the shareholders of Zealand for approval at the Annual General Meeting on April 2, 2020. The consolidated financial statements are presented on a historical cost basis, except for cer- tain financial assets and liabilities measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and on the significance of the inputs to the fair value measurement as a whole. The inputs are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date · Level 2 inputs are inputs, other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly · Level 3 inputs are fair value measures derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company. In the narrative sections of the financial statements, comparative figures for 2018 and 2017 are shown in brackets. Implementation of new and revised standards and interpretations The Group has adopted the following new and amended standards as described below. Other amendments effective for 2019 have no impact on the financial statements for Zealand. IFRS 16 Leases IFRS 16 replaces IAS 17 and requires all leases 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 impacts the presentation in the income statement and the statement of cash flows. The Group leases properties, equipment and cars. The Group recognizes leases as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use. We refer to note 14 regarding the right-of-use assets and liabilities. On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases, which had previously been classified as “operating leases” under the principles of IAS 17, Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the Lessee’s incremental borrowing rate as of January 1, 2019. The associated right-of-use assets were at the transition date measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the leases recognized in the statement of financial position as at December 31, 2018. In the income statement, application of IFRS 16 results in recognition of a depreciation of the right-of-use asset and an interest expense rather than an operating lease expense. · Implementation method · The Group has adopted IFRS 16, Leases from January 1, 2019, using the modified retrospective approach whereby comparative figures are not restated. IFRIC 23, Uncertainty over income tax treatments IFRIC 23 provides guidance in respect of recognition and measurement of income tax balances if uncertainty over the tax treatment exist. Implementation of the interpretation has had no impact on the income tax balances recognized in the financial statements. Annual improvements 2015-2017 Comprises minor changes to IFRS 3, IFRS 11, IAS 12 and IAS 23. The amendments have no impact on the accounting policies applied. Standards and interpretations not yet applied IASB has issued a number of new and amended standards which are not yet effective. None of these new standards or amendments are expected to impact the Group’s accounting policies. Accounting policies The accounting policies are apart from the application of IFRS 16, Leases, unchanged from last year. The accounting policies for specific line items and transactions are included in the respective notes to the financial statements except for basis and principles of consolidation, foreign currency translation, classification of income statement, segment reporting, classification of financial assets and the cash flow statement, which are included below. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Principles of consolidation The consolidated financial statements are prepared on the basis of the financial statements of the parent company and the individual subsidiaries, which are based on uniform accounting policies and 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 statement of financial position date are translated by applying the exchange rates at the statement of financial position date. Differences arising between the rate at the statement of financial position date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. Non-monetary assets purchased in foreign currencies are measured at the exchange rate on the transaction date. Consolidated financial statements Income statement The expenses recognized in the income statement is presented as an analysis using a classification based on their function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with 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, marketable securities and cash. Financial assets are divided into categories of which the following are relevant for the Group: 1. Financial assets at amortized cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. 2. Financial assets at fair value through the income statement, which are marketable securities held in a business model whose purpose is to regularly sell marketable securities within the portfolio. 3. Equity investments. These investments are measured at fair value through the income statement. 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 result 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 milestone 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 proceeds from issuance of new shares and related costs, finance lease installments and loan financing. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Significant accounting estimates and judgments In applying our accounting policies, Management is required to make judgments based on the specific facts and circumstances relevant to the assessment. 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 judgements and estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates including 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 2019. The following are the most significant accounting judgements and estimates applied by Management in these financial statements: Revenue recognition (management judgement) 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. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. When entering into licensing and development agreements, a critical judgment relates to whether the customer could continue development of the IP to the stage promised by Zealand under the promise to provide R&D services. If this is not the case, the IP and the R&D services are considered a single performance obligation. Milestone payments are related to the collaborative research agreements with commercial partners and are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services. Employee incentive programs (management estimates) In accordance with IFRS 2, Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement over the vesting period. The fair value of each warrant granted during the year is estimated using the Black– Scholes option pricing model. This requires the input of subjective assumptions such as: · The expected stock price volatility, which is based on the historical volatility of Zealand’s share price · The selection of the risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity equal to the expected term · The duration of the warrants, which is assumed to be until the middle of the exercise period The total fair value of the warrants is recognized in the income statement over the vesting period. An adjustment is made to reflect an expected attrition rate during the vesting period. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. Encycle Therapeutics, Inc. acquisition (management judgement) As of October 2019, Zealand acquired all outstanding shares in Encycle Therapeutics, Inc. and all its intellectual property, including all rights to develop and commercialize the lead asset. Zealand will not be acquiring any infrastructure or personnel costs with this transaction. The total future consideration for the acquisition could potentially reach USD 80 million in one-time contingent value rights ("earn-outs"), of which USD 10 million in earn-outs could be payable up to the successful completion of a Phase 2 study. All earn-outs are payable in cash and/or Zea- land equity at Zealand's discretion, are linked to the lead asset only, and contingent on certain future successful development, regulatory, and commercial-related milestones. There is also a potential mid-single digit royalty on global net sales from the lead asset. Management has assessed that this acquisition is an asset acquisition, and thus will be accounted for in accord- ance with IAS 38, Intangible Assets and is not considered a business combination under IFRS 3, Business Combinations. Restatement (management judgement) During Q1 2019 a restatement related to warrants was identified by Management. The Company grants, on a regular basis, equity settled warrants to Corporate Management and other employ-ees. Historically, the warrants were deemed vested at grant date. Consequently, the full fair value at grant date has been recognized as an expense as of this date. Management has reconsidered the allocation of expenses of warrants. Management has concluded, the warrants vest at a future date as they become exercisable only upon continued employment during the time period from grant date up until the specified future date (i.e. the date upon which the warrants become exercisable). All warrants granted at one point in time vest on the same date (cliff vesting). The vesting period is typically 3 years resulting in straight-line recognition of the cost over 3 years rather than up front. The restatement affects reported profit/loss for the year ended December 31, 2018 and prior years. While the impact on interim periods is significant, the full year impact is insignificant as the impact between the quarterly interim periods primarily nets out the full year impact. Due to the fact that the warrants are equity settled, the counter-entry to the restated expense is equity. Consequently, the restatement has no impact on reported total equity in any periods. The value of warrants recognized in equity is presented as part of share premium. Consequently, the restatement results in a reduction of the share premium and a corresponding decrease in accumulated loss equal to the cumulative effect on reported profit/loss in prior years for warrants not fully vested as at January 1, 2018. The impact of the restatements of warrants on the statement of cash flow is solely a reclassi-fication between “Net profit/loss for the period” and “Change in working capital”. Hence, there is no impact on the cash flow from operating activities. Therefore, the Company deemed it irrelevant to present restated statements of cash flow. The nature and impact of each restatement in 2017 and 2018 per line item in the consolidated income statement and consolidated statement of financial position for Zealand is presented on page 58 and 59. Income statement: Research and development expenses and Administrative expenses Warrant expenses recognized in staff expenses classified as Research and development expens-es and Administrative expenses, respectively, have been restated as described above. The restatement has an opposing tax impact of 22% in 2018 because of the positive taxable income, whereas there is no recognized tax impact in 2017 due to the negative taxable income. Statement of financial position: Share premium/Retained Losses (Equity) The counter-entry to the warrant expenses recognized in the income statement (debit) is Share Premium (credit) in Equity. The impact on the income statement is recognized in Retained losses (debit) in Equity, thus results in no net impact on Equity. The restatement of Share premium and Retained losses impact shows the cumulative impact. Consolidated income statement for the twelve month period ended December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Revenue 37,977 0 37,977 Royalty expenses (3,356) 0 (3,356) Research and development expenses (438,215) (4) (438,219) Administrative expenses (43,542) (1) (43,543) Other operating income 1,099,526 0 1,099,526 Operating result 652,390 (5) 652,385 Financial income 9,988 0 9,988 Financial expenses (37,322) 0 (37,322) Result before tax 625,056 (5) 625,051 Income tax (43,774) 1 (43,773) Net result for the year 581,282 (4) 581,278 Earnings per share - basic (DKK) 18.94 18.94 Earnings per share - diluted (DKK) 18.94 18.94 Consolidated statements of comprehensive income for the year ended December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Net result for the year 581,282 (4) 581,278 Other comprehensive income (loss) 0 0 0 Net result for the year 581,282 (4) 581,278 Consolidated income statement for the twelve month period ended December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Revenue 136,322 0 136,322 Royalty expenses (14,163) 0 (14,163) Research and development expenses (324,667) 718 (323,949) Administrative expenses (47,470) 127 (47,343) Other operating income 607 0 607 Operating result (249,371) 845 (248,526) Financial income 2,122 0 2,122 Financial expenses (33,509) 0 (33,509) Result before tax (280,758) 845 (279,913) Income tax 5,500 0 5,500 Net result for the year (275,258) 845 (274,413) Loss per share - basic (DKK) (9.88) (0.03) (9.85) Loss per share - diluted (DKK) (9.88) (0.03) (9.85) Consolidated statements of comprehensive income for the year ended December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Net result for the year (275,258) 845 (274,413) Other comprehensive income (loss) 0 0 0 Net result for the year (275,258) 845 (274,413) Consolidated statement of financial position as of December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Equity and liabilities Share capital 30,787 30,787 Share premium 1,979,493 (22,016) 1,957,477 Retained losses (893,999) 22,016 (871,983) Equity 1,116,281 1,116,281 Royalty bond Deferred revenue Lease liabilities Non-current liabilities Trade payables 32,652 32,652 Corporate tax payables Royalty bond Lease liabilities Deferred revenue Other liabilities 80,864 80,864 Current liabilities 113,516 113,516 Total liabilities 113,516 113,516 Total equity and liabilities 1,229,797 1,229,797 Consolidated statement of financial position as of December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Equity and liabilities Share capital 30,751 0 30,751 Share premium 1,959,199 (22,020) 1,937,179 Retained losses (1,475,281) 22,020 (1,453,261) Equity 514,669 0 514,669 Royalty bond 132,986 0 132,986 Deferred revenue 0 0 0 Lease liabilities 0 0 0 Non-current liabilities 132,986 0 132,986 Trade payables 29,428 0 29,428 Corporate tax payables 0 0 0 Royalty bond 2,748 0 2,748 Lease liabilities 0 0 0 Deferred revenue 0 0 0 Other liabilities 41,454 0 41,454 Current liabilities 73,630 0 73,630 Total liabilities 206,616 0 206,616 Total equity and liabilities 721,285 0 721,285 Change in accounting policies Below is explained the impact of the adoption of IFRS 16, Leases on the Group’s financial statements. As indicated above, the Group has adopted IFRS 16, Leases retrospectively from January 1, 2019, but has not changed comparatives for the 2018 reporting period, as permitted under the specific transition provisions in the standard. The changes arise from the new leasing standard are therefore recognized in the opening statement of financial position on January 1, 2019. The new accounting policies are disclosed in note 14. On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17, Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities was 2.1%. No leases were previously classified as finance leases under the principles of IAS 17. Practical expedients applied In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: · applying a single discount rate to a portfolio of leases with reasonably similar characteristics · relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as at January 1, 2019, and · using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and IFRIC 4, Determining Whether an Arrangement Contains a Lease. Measurement of lease liabilities DKK thousand Jan 1, 2019 Reconciliation Operating lease obligations disclosed at December 31, 2018 67,507 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (11,723) Initial recognition of lease liabilities during 2019 (32,198) Adjustments as a result of recognition of non-lease components 1,241 Adjustments as a result of a different treatment of extension and termination options 4,529 Adjustments as a result of lease liabilities to be recognized in subsequent years (19,308) Lease liabilities recognized at January 1, 2019 10,048 Of which are: - Current lease liabilities 7,118 - Non-current lease liabilities 2,930 10,048

Revenue

Revenue	12 Months Ended
	Dec. 31, 2019
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 related to the collaborative research agreements with commercial partners are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. 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 having a single performance obligation. Accounting for the Alexion Pharmaceuticals, Inc. Agreement In March 2019, Zealand entered into a license, research and development agreement with Alexion Pharmaceuticals, Inc. (Alexion) to develop novel therapies to treat complement mediated diseases. This agreement provided Zealand an immediate cash injection as well as further external validation of Zealand’s peptide platform. The collaboration with Alexion is not limited to C3 but offers the potential to work on identification of peptide inhibitors to up to three additional components of the complement cascade. Zealand will have responsibility for the C3 project and other targets up to IND and Alexion will then progress the peptides into clinical development. Under the Alexion license, research and development agreement, Zealand has received an upfront non-refundable payment of USD 25 million for the C3 program and a concurrent USD 15 million equity investment in Zealand at a premium to the market price. The agreement also provides the potential for development-related milestones of up to USD 115 million, as well as up to USD 495 million in sales-related milestones and high single- to low double-digit royalty payments. The 3 additional programs will provide further non-refundable upfront payments (USD 15 million each), development and sales milestone and royalties. Accounting treatment The non-refundable up-front fee was allocated to the combined license, research and development services, and is being recognized as revenue along with provision of the research and development services under the lead program. Expenses incurred to provide the services is being recognized when incurred. Further, the premium over the market share price on the Zealand shares subscribed by Alexion, DKK 12.7 million, is attributed to the Agreement as further consideration and consequently also recognized over the period over which the R&D services are provided. Revenue is recognized based on the percentage of completion of the R&D services, which is estimated based on the expenses incurred during that period. In total, Alexion has paid USD 40 million, corresponding to DKK 262.9 million that as of December 31, 2019 has affected equity by DKK 85.6 million, deferred revenue by DKK 139.9 million, and revenue by DKK 37.4 million in 2019. Hence the cash flow from operating activities is DKK 177.3 million and the cash flow from financing activities is DKK 85.6 million. Milestone payments, if any, will be recognized as revenue when the relevant milestones are achieved as they relate to performance obligations already satisfied at this stage. Royalty payments, if any, will be recognized along with the underlying sales. Significant judgment applied Determination of whether the license transferred and the research and development services constitute separate performance obligations, or form part a single performance obligation comprising a combined output has a significant impact on the accounting treatment. Zealand has applied significant judgment to determine whether the promised services are distinct and concluded that Alexion cannot benefit from the license alone. It is Zealand assessment that the R&D services under this agreement requires specific Zealand know-how and expertise which cannot be easily identified or sourced externally. Therefore, Alexion would not in the absence of the contractual provisions have had the practical ability to engage a third-party R&D service provider to provide the agreed R&D services. As the nature of the collaboration with Alexion may affect the accounting treatment of the agreement, Zealand has considered whether the agreement takes the form of a collaborative partnership with Alexion rather than a customer-vendor agreement. After consideration of all facts and circumstances, Zealand has assessed that the agreement takes the form of a customer-vendor relationship. Accordingly, the agreement is treated under the guidelines of IFRS 15 Revenue from Contracts with Customers. As any additional programs are optional and paid for separately, they are not considered part of the initial agreement. It has been considered whether the options for additional components represent a material right and, thus, a separate performance obligation under the initial agreement to which a portion of the initial upfront payment should be allocated. Zealand has determined that the probability of exercising the option is low and in combination with the fact that the development is significantly less advanced than the lead target, we have determined that the options do not represent a material right. Accounting 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, Zealand 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 AdlyxinR in the U.S. and as LyxumiaR 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 (LantusR) marketed under the brand name SoliquaR 100/33 in the U.S. and as SuliquaR 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 products 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 R 100/33/SuliquaR. The amount and timing of any such reductions of future revenue are not currently known, but they will not exceed USD 15 million in total. Refer to note 25. Zealand pay Alkermes plc 13% of all payments received on lixisenatide while lixisenatide is subject to a commercialization agreement such as the Sanofi License Agreement. Zealand 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. All future royalties and all but up to USD 15 million of future milestone payments relating to the Sanofi License Agreement were sold to Royalty Pharma in September 2018. 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. Zealand is eligible to receive license and milestone payments of up to EUR 386 million, of which EUR 365 million was outstanding at December 31, 2019, related to the achievement of pre-specified development, regulatory and commercial milestones for the lead product. We are also eligible to receive tiered royalties ranging from high single-digit to low double-digit percentages on BI’s sales of all products stemming from this collaboration. In addition, we retain copromotion rights in Scandinavia. In 2014, Zealand entered into a second global license, research and development collaboration 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, 2019. We are also eligible to receive tiered royalties ranging from high 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 out licensed to BI are currently marketed, and accordingly we have not received any royalty payments to date under our licensing agreements with BI. In September 2019, Boehringer Ingelheim and Zealand announced that Boehringer Ingelheim plans to initiate Phase 2 development of the GLP-1/glucagon dual agonist BI 456906. The Phase 2 trial for BI 456906 is expected to be initiated in first part of 2020 and will trigger a EUR 20 million milestone payment to Zealand at which time the revenue will be recognized. Milestone payments are recognized as revenue when the relevant milestones are achieved. Accounting for other license agreements In 2019, Zealand recognized revenue related to a Material Transfer Agreement with an undisclosed counterpart. The revenue related to a license option has been recognized in the period in which the services were rendered. 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. Milestone payments are recognized as revenue when the relevant milestones are achieved. Recognized revenue can be specified as follows for all agreements: DKK thousand 2019 2018 2017 Alexion Pharmaceuticals Inc. 38,021 — — Undisclosed counterpart 3,312 9,845 — Protagonist Therapeutics, Inc. — 3,274 1,662 Sanofi-Aventis Deutschland GmbH — — 69,603 Boehringer Ingelheim International GmbH — — 29,750 Total license and milestone revenue 41,333 13,119 101,015 Sanofi—Aventis Deutschland GmbH — 24,858 35,307 Total royalty revenue 0 24,858 35,307 Total revenue 41,333 37,977 136,322 Royalty revenue can be specified as follows: Soliqua ® — 17,786 18,655 Lyxumia ® — 7,072 16,652 Total royalty revenue 0 24,858 35,307 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 liabili-ty to Alkermes plc and another investor is included in other operating income. Refer to note 7. Zealand is managed and operated as one business unit, which is reflected in the organizational structure and internal reporting. No separate lines of business or separate business entities have been identified with respect to any of the product candidates or geographical markets and no segment information is currently disclosed in the internal reporting. All Zealand revenue can be attributed to countries other than Denmark. Revenue from Alexion In 2019, we recognized DKK 37.4 million as income from the license, research and development agreement signed in March 2019 reflecting the progress on the lead project. Under the agreement DKK 139.9 million is accounted for as deferred revenue at December 31, 2019. DKK 0.6 million of other revenue is recognized related to other projects with Alexion. Revenue from Sanofi 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. Revenue from Boehringer Ingelheim No revenue was recognized from BI in 2019 or 2018, as no milestone event was achieved. 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. Revenue from other agreements In 2018 and 2019, we recognized DKK 9.8 million and DKK 3.3 million, respectively, in revenues from a milestone payment and license option payments, respectively, from undisclosed counterparts relating to two Material Transfer Agreements. In 2017 and 2018, we recognized DKK 1.7 million and DKK 3.3 million, respectively, in revenue from milestone payments from Protagonist Therapeutics in connection with the start of Phase 1 and 2, respectively, with the novel hepcidin mimetic PTG-300.

Royalty expenses

Royalty expenses	12 Months Ended
	Dec. 31, 2019
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 2019, the royalty expenses relate to mentioned inventor. In 2018 and 2017, the royalty expenses related to royalties from sales of Lyxumia ® and Soliqua ® 100/33 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, 2019
Research, development and administrative expenses
Research, development and administrative expenses	Note 4 - Research, development and administrative expenses Accounting policies 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, except where the capitalization criteria is met. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associated undertakings. Judgment applied 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 administrative expenses but also development expenses. Zealand has not capitalized any development expenses in 2019, 2018 or 2017. Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to company premises, depreciation on right-of-use assets, investor relations, etc. Overhead expenses have been allocated to research and development or administrative expenses according to the number of employees in each department, based on the respective employees’ associated undertakings.

Fees to auditors appointed at t

Fees to auditors appointed at the Annual General Meeting	12 Months Ended
	Dec. 31, 2019
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 2019 2018 2017 Audit 1,847 1,661 1,199 Audit-related services and other assurance engagements 1,731 718 2,418 Tax advice 0 106 114 Other 12 0 196 Total fees 3,590 2,485 3,927 The fee for audit-related services and other assurance engagements and other services provided to the Group by Deloitte Statsautoriseret Revisionspartnerselskab in 2019 consisted of assistance work in relation to existing internal control processes, other auditor’s reports on various statements for public authorities, and other accounting advisory services .

Information on staff and remune

Information on staff and remuneration	12 Months Ended
	Dec. 31, 2019
Information on staff and remuneration
Information on staff and remuneration	Note 6 - Information on staff and remuneration Restated Restated DKK thousand 2019 2018 2017 Total staff costs can be specified as follows: Wages and salaries 175,104 141,661 112,614 Share-based payment costs 14,764 17,474 19,311 Pension schemes (defined contribution plans) 13,430 11,065 9,135 Other payroll and staff-related costs 14,932 9,783 10,135 Total 218,230 179,983 151,195 The amount is charged as: Research and development expenses 178,089 153,601 118,573 Administrative expenses 40,141 26,382 32,622 Total 218,230 179,983 151,195 Average number of employees 173 146 128 2019 2018 2017 Base Committee Total Base Committee Total Base Committee Total DKK thousand board fee Fees fees board fee Fees fees board fee Fees fees Remuneration to the Board of Directors Martin Nicklasson 750 100 850 650 100 750 550 100 650 Kirsten Drejer 1 467 0 467 200 0 200 0 0 0 Alain Munoz 400 50 450 300 50 350 250 33 283 Michael Owen 400 50 450 300 50 350 250 50 300 Bernadette Mary Connaughton 267 0 267 0 0 0 0 0 0 Jeffrey Berkowitz 267 33 300 0 0 0 0 0 0 Leonard Kruimer 267 100 367 0 0 0 0 0 0 Jens Peter Stenvang 2 400 0 400 300 0 300 250 0 250 Hanne Heidenheim Bak 2 400 0 400 300 0 300 198 0 198 Rosemary Crane 5 133 17 150 333 50 383 350 50 400 Catherine Moukheibir 5 133 50 183 300 150 450 250 150 400 Helle Haxgart 2, 4 0 0 0 100 0 100 21 0 21 Rasmus Just 2, 3 0 0 0 0 0 0 229 0 229 Total 3,884 400 4,284 2,783 400 3,183 2,348 383 2,731 ¹ Kirsten Drejer was appointed vice chairman at the General Meeting on April 4 in 2019. ² Employee-elected board members; the table only includes remuneration for board work. ³ This board member resigned from the Board in 2017. ⁴ This board member resigned from the Board in 2018. ⁵ These board members resigned from the Board in 2019. The disclosed remuneration for board members excludes minor mandatory social security costs paid by the company. It also excludes reimbursed expenses incurred in connection with board meetings, such as travel and accomodation. Other Warrant Pension short term compensation DKK thousand Base salary Bonus contribution benefits expenses Total 2019 Remuneration to the Executive Management Emmanuel Dulac 1 3,100 9,072 620 855 832 14,479 Adam Sinding Steensberg² 2,807 1,032 505 269 2,304 6,917 Matthew Donald Dallas 3 588 534 0 5 82 1,209 Britt Meelby Jensen 4 1,745 419 175 60 0 2,399 Mats Blom 4 655 248 66 61 1,677 2,707 Total 8,895 11,305 1,366 1,250 4,895 27,711 Other Corporate Management 5 6,559 2,580 389 46 1,972 11,546 Total 6,559 2,580 389 46 1,972 11,546 Total 15,454 13,885 1,755 1,296 6,867 39,257 2018 Remuneration to the Executive Management Restated Restated Britt Meelby Jensen 4,189 2,513 419 320 7,441 Mats Blom 2,621 1,031 262 273 1,888 6,075 Total 6,810 3,544 681 593 1,888 13,516 Other Corporate Management 5 6,689 2,653 604 1,035 4,471 15,452 Total 6,689 2,653 604 1,035 4,471 15,452 Total 13,499 6,197 1,285 1,628 6,359 28,968 2017 Remuneration to the Executive Management Restated Restated Britt Meelby Jensen 3,915 2,482 392 231 4,554 11,574 Mats Blom 2,496 999 250 271 1,747 5,763 Total 6,411 3,481 642 502 6,301 17,337 Other Corporate Management 5 4,416 1,787 442 388 3,125 10,158 Total 4,416 1,787 442 388 3,125 10,158 Total 10,827 5,268 1,084 890 9,426 27,495 ¹ Emmanuel Dulac was appointed as CEO at April 25, 2019. ² Former Interim CEO Adam Sinding Steensberg was appointed EVP, R&D and CMO at April 25, 2019. ³ Matthew Donald Dallas was appointed CFO at October 10, 2019. ⁴ Former CEO Britt Meelby Jensen and former CFO Mats Blom resigned from Zealand at February 28, 2019 and March 28, 2019, respectively. ⁵ Other Corporate Management in 2019 comprised three members (2018: Four and 2017: Two). 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 of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 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, 2019 0 0 0 72,000 100,000 46,359 218,359 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 0 (72,000) (68,000) (36,000) (176,000) Expired during the year 0 0 0 0 0 0 0 Outstanding at December 31, 2019 0 0 0 0 32,000 10,359 42,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 0 0 32,000 10,359 42,359 Total 0 0 0 0 32,000 10,359 42,359 Number of warrants Outstanding at January 1, 2018 0 0 183,425 100,000 100,000 46,359 429,784 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 0 (28,000) 0 0 (28,000) Expired during the year 0 0 (183,425) 0 0 0 (183,425) Outstanding at December 31, 2018 0 0 0 72,000 100,000 46,359 218,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 0 72,000 100,000 46,359 218,359 Total 0 0 0 72,000 100,000 46,359 218,359 Number of warrants Outstanding at January 1, 2017 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 (77,712) 0 0 0 (77,712) Expired during the year (6,250) (214,883) 0 0 0 0 (221,133) Outstanding at December 31, 2017 0 0 183,425 100,000 100,000 46,359 429,784 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 183,425 100,000 100,000 46,359 429,784 Total 0 0 183,425 100,000 100,000 46,359 429,784 Exercise period From 10/Feb/15 19/Nov/15 10/Feb/16 01/Apr/17 25/Mar/18 05/May/18 Until 10/Feb/17 19/Nov/17 10/Feb/18 01/Apr/19 25/Mar/20 05/May/20 Black-Scholes parameters Term (months) Share price 70.0 86.0 79.05 69.0 115.5 92.0 Exercise price (DKK) 77.0 113.3 87.45 75.9 127.05 101.2 Volatility* 44.0 % 56.0 % 39.3 % 37.5 % 41.9 % 43.7 % Risk-free interest rate 0.37 % 0.86 % 0.66 % 0.71 % (0.21) % (0.10) % Cost price 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 * 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 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 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 05/May/15 05/May/15 05/Apr/16 05/Apr/16 15/Jul/16 06/Apr/17 06/Apr/17 25/Aug/17 25/Aug/17 22/May/18 15/Oct/18 10/Apr/19 13/Jun/19 13/Jun/19 13/Jun/19 13/Jun/19 5/Dec/19 5/Dec/19 5/Dec/19 Total Number of warrants Outstanding at January 1, 2019 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 0 0 0 0 0 0 0 0 1,635,000 Granted during the year 0 0 0 0 0 0 0 0 0 0 0 397,750 168,388 8,659 8,659 8,658 16,304 16,304 16,307 641,029 Forfeited during the year 0 (9,050) (40,250) 0 (40,000) (88,750) 0 0 0 (92,000) 0 (17,500) (26,716) 0 0 0 0 0 0 (314,266) Exercised during the year 0 (242,550) (71,425) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (313,975) Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2019 0 90,650 210,075 0 0 292,250 0 0 0 418,000 40,000 380,250 141,672 8,659 8,659 8,658 16,304 16,304 16,307 1,647,788 Specified as follows: Executive Management 0 45,000 60,000 0 0 57,000 0 0 0 65,000 0 0 117,894 0 0 0 9,093 9,092 9,092 372,171 Other employees 0 45,650 150,075 0 0 235,250 0 0 0 353,000 40,000 380,250 23,778 8,659 8,659 8,658 7,211 7,212 7,215 1,275,617 Total 0 90,650 210,075 0 0 292,250 0 0 0 418,000 40,000 380,250 141,672 8,659 8,659 8,658 16,304 16,304 16,307 1,647,788 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 0 0 0 0 0 0 0 0 1,424,000 Granted during the year 0 0 0 0 0 0 0 0 0 615,500 40,000 0 0 0 0 0 0 0 0 655,500 Forfeited during the year (100,000) 0 (7,000) (85,434) 0 (24,500) (93,392) (14,566) (6,608) (105,500) 0 0 0 0 0 0 0 0 0 (437,000) Exercised during the year 0 (7,500) 0 0 0 0 0 0 0 0 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 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 0 0 0 0 0 0 0 0 1,635,000 Specified as follows: Executive Management 0 75,000 25,000 0 0 57,000 0 0 0 60,000 0 0 0 0 0 0 0 0 0 217,000 Other employees 0 267,250 296,750 0 40,000 324,000 0 0 0 450,000 40,000 0 0 0 0 0 0 0 0 1,418,000 Total 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 0 0 0 0 0 0 0 0 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 0 0 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 0 0 0 0 0 0 0 0 538,566 Forfeited during the year 0 (7,500) (16,250) (14,566) 0 (18,500) 0 0 0 0 0 0 0 0 0 0 0 0 0 (56,816) Exercised during the year 0 0 0 0 0 0 0 0 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 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 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 457,000 Other employees 0 274,750 303,750 0 40,000 348,500 0 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 1,424,000 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 10/Apr/22 13/Jun/22 13/Jun/20 13/Jun/21 13/Jun/22 05/Dec/20 05/Dec/21 05/Dec/22 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 10/Apr/24 13/Jun/24 13/Jun/24 13/Jun/24 13/Jun/24 05/Dec/24 05/Dec/24 05/Dec/24 Black-Scholes parameters Term (months) Share price (DKK) 92.0 92.0 129.5 129.5 126.0 123.0 123.0 118.5 118.5 100.8 90.0 127.0 138.6 138.6 138.6 138.6 220.0 220.0 220.0 Exercise price (DKK) 101.2 101.2 142.45 142.45 138.6 135.3 135.3 142.45 135.3 100.8 90.0 127.0 138.6 138.6 138.6 138.6 220.0 220.0 220.0 Volatility* 43.7 % 43.7 % 43.5 % 43.5 % 45.0 % 43.6 % 43.6 % 43.0 % 43.0 % 42.6 % 42.5 % 43.5 % 43.0 % 43.0 % 43.0 % 43.0 % 41.9 % 41.9 % 41.9 % 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) % (0.45) % (0.59) % (0.59) % (0.59) % (0.59) % (0.63) % (0.63) % (0.63) % 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 41.94 45.04 45.04 45.04 45.04 69.52 69.52 69.52 Dividend not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected * The average traded share price on the exercise date(s) of the 2010 warrant program was 124.6 and the average traded share price on the exercise date(s) of the 2015 warrant program was 151.7. Employee warrant programs In order to motivate and retain key employees and encourage the achievement of common goals for employees, Management and shareholders, the Group has established an incentive plan based on warrant programs. Incentive programs have been offered in 2005, 2007 and in the 2009-2019 period. 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 vest either after 3 years of service, with 1/36 each month from the grant date, or with 1/3 after one year, 1/3 after two years and 1/3 after three years. The service cost is recognized over the respective vesting periods. 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. For warrants granted in 2015 and earlier, the volatility rate used is based on the actual volatility of the Zealand share price. For warrants granted after January 1, 2016, the volatility rate used is based on the 5-year historical volatility of the Zealand share price. For warrants granted after January 1, 2019, the volatility rate used is based on the 4-year historical volatility of the Zealand share price calculated as the vesting period of 3 years plus 50% of the exercise period (two years). The change in the accounting estimate is based on more information on the average length of time for which similar warrants in the past have remained outstanding. The change does only impact warrant expenses recognized in staff expenses in the current or future finan- cial period related to warrants granted since January 1, 2019. 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, 2019, 1,755,809 warrants have been exercised, 422,327 warrants have expired without being exercised, and 135,000 warrants have forfeited. The total proceeds amount to DKK 145.1 million (2018: DKK 127.4 million and 2017: DKK 125.3 million). As of December 31, 2019, 42,359 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, 2020. As of December 31, 2019, 2,788,595 warrants have been granted, 321,475 warrants have been exercised, and 819,332 warrants have forfeited. This means that the remaining number of warrants that can be granted is 780,737. The total proceeds amount to DKK 35.5 million (2018: DKK 0.8 million and 2017: DKK 0.0 million). As of December 31, 2019, 1,647,788 warrants can still be exercised. 2019 long-term incentive program (LTIP) for Corporate Management This program was established in 2019 for Zealand’s Corporate Management. Under the LTIP, the Executive Management and Other Corporate Management are eligible to receive a number of performance share units (“PSUs”) at no cost, as determined by the Board of Directors. Thereafter, PSUs are expected to be granted annually (together with any share-based long-term incentive program, up to a maximum of 10% of Zealand’s share capital). The targets for the first PSUs granted on June 13, 2019 under the LTIP are related to Zealand's filing of a submission for a New Drug Approval ("NDA") to the Food and Drug Administration ("FDA") in the United States and Zealand's receipt of an approval letter from the FDA for this NDA application. The PSUs will vest over a three-year period. The PSUs that have not vested will lapse without any compensation. Each vested PSU entitles the holder to receive one share in Zealand at no cost provided that the targets are met. The number of performance share units granted is 22,915 determined based on the average share price of the shares of the Company for the three-day trading period following the latest open trading window preceding the allotment. The program is initially valued at DKK 3.2 million. DKK thousand 2019 2018 Number of shares At January 1 0 0 Granted during the year 22,915 0 Vested during the year 0 0 Forfeited during the year (3,150) 0 At December 31 19,765 0 Effect on income statement In 2019, the fair value of warrants and PSUs recognized in the income statement amounts to DKK 14.8 million in total of which DKK 0.5 million relate to PSUs (2018: DKK 17.5 million and 2017: DKK 19.3 million), of which DKK 3.2 million relate to the Executive Management (2018: DKK 1.9 million and 2017: DKK 6.3 million). Restated Restated DKK thousand 2019 2018 2017 The amount is charged as: Research and development expenses 13,919 11,291 Administrative expenses 3,555 8,020 Total 17,474 19,311

Other operating income

Other operating income	12 Months Ended
	Dec. 31, 2019
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 2019 2018 2017 Government grants 444 630 567 Gross proceeds from sale of future royalties and milestones 0 1,310,237 0 Royalty expenses regarding the above sale of future royalties and milestones 0 (176,882) 0 Fee, advisors regarding the above sale of future royalties and milestones 0 (34,459) 0 Research funding 0 0 40 Total other operating income 444 1,099,526 607 Zealand entered in September 2018 into an agreement to sell future royalties and 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 potential payments from Sanofi of up to USD 15.0 million, expected in 2020 and 2022 (refer to note 25) have been transferred to the buyer. Zealand had in 2018 received USD 205.0 million (DKK 1,310.2 million) upon closing of the transaction on September 17, 2018. In 2018, royalty expenses to third parties amounted to 13.5% or DKK 176.9 million and fees to advisors amounted to DKK 34.5 million. The Sanofi license agreement was classified as an intangible asset upon adoption of IFRS 15, and the agreement with Royalty Pharma was treated as a sale of this license. The payment to the third parties was 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 Boehringer Ingelheim ('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 addition, Zealand received government grants in 2019, 2018 and 2017.

Financial income

Financial income	12 Months Ended
	Dec. 31, 2019
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, fair value adjustments of marketable securities and dividends from marketable securities. Interest income is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2019 2018 2017 Interest income from financial assets measured at amortized costs 5,413 4,263 2,048 Fair value adjustments of Other investments and Marketable securities 2,846 0 74 Exchange rate adjustments 5,518 4,705 0 Dividend, Marketable securities 878 1,020 Total financial income 14,655 9,988 2,122

Financial expenses

Financial expenses	12 Months Ended
	Dec. 31, 2019
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 of securities. In addition, expenses related to the royalty bond until settlement in September 2018 were amortized over the expected duration of the bond and recognized as financial expenses until it was settled in September 2018. The royalty bond is described further in note 22. Interest expense is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2019 2018 2017 Interest expenses from financial liabilities measured at amortized costs 3,205 15,080 18,913 Amortization of financing costs 0 18,347 5,748 Fair value adjustments of Marketable securities 0 1,389 0 Loss on sale of Marketable securities 0 881 0 Other financial expenses 185 1,625 949 Exchange rate adjustments 0 0 7,899 Total financial expenses 3,390 37,322 33,509

Income tax benefit

Income tax benefit	12 Months Ended
	Dec. 31, 2019
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 statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and pharmaceutical industry is subject to considerable risks and uncertainties. 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, 2019. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the statement of financial position date. 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 (tax value of DKK 5.5 million). Under Danish tax legislation, Zealand is eligible to receive DKK 5.5 million (DKK 0.0 million in 2018 and DKK 5.5 million 2017) in cash relating to the surrendered tax loss of DKK 108 million (none in 2018 and DKK 156.5 million for 2017) based on qualifying research and development expenses. These tax receipts comprise the entire current tax benefit in 2019 and 2017, respectively. The income from sale of future royalties and milestones in 2018 resulted in a positive net result, meaning that Zealand was not eligible for similar tax income based on qualifying research and development expenses, but was able to utilize a portion of the unrecognized deferred tax asset. Restated Restated DKK thousand 2019 2018 2017 Net result for the year before tax (576,677) 625,051 (279,913) Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) 126,869 (137,511) 61,581 Adjustment for non-deductible expenses (947) (65) (62) Adjustment for non-taxable income 964 0 0 Adjustment for exercised warrants (1,653) (2,228) (1,732) Adjustment for R&D super deduction 1,676 1,427 0 Tax effect on exercise of warrants 6,092 8 688 Tax effect on expired warrants 175 151 (4,407) Warrant - share price development 4,050 0 0 Change in tax assets (not recognized) (132,090) 94,445 (50,568) Total income tax expense/benefit 5,136 (43,773) 5,500 Breakdown of unrecognized deferred tax assets: Tax losses carried forward (available indefinitely) 681,531 580,937 872,670 Research and development expenses 460,007 136,755 210,148 Rights 35,849 35,849 43,019 Non-current assets 51,677 50,308 67,590 Liabilities 139,890 0 0 Other 70,306 79,986 104,377 Total temporary differences 1,439,260 883,835 1,297,804 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Calculated potential deferred tax asset at local tax rate 316,637 194,444 285,517 Write-down of deferred tax asset (316,637) (194,444) (285,517) Recognized deferred tax asset 0 0 0

Basic and diluted earnings per

Basic and diluted earnings per share	12 Months Ended
	Dec. 31, 2019
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 2019 2018 2017 Net result for the year (571,541) 581,278 (274,413) Net result used in the calculation of basic and diluted earnings/losses per share (571,541) 581,278 (274,413) Weighted average number of ordinary shares 33,866,709 30,754,948 27,918,271 Weighted average number of treasury shares (64,223) (64,223) (64,223) Weighted average number of ordinary shares used in the calculation of basic earnings per share 33,802,486 30,690,725 27,854,048 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 33,802,486 30,696,404 27,854,048 Basic earnings/loss per share (DKK) (16.91) 18.94 (9.85) Diluted earnings/loss per share (DKK) (16.91) 18.94 (9.85) The following potential ordinary shares are anti-dilutive at December 31, 2019 (dilutive at December 31, 2018 and anti-dilutive December 31, 2017) and are therefore not included in the weighted average number of ordinary shares for the purpose of diluted earnings per share: Potential ordinary shares are excluded at December 31, 2019 due to anti-dilutive effect (included at December 31, 2018, but excluded at December 31, 2017) related to: DKK thousand 2019 2018 2017 Outstanding warrants under the 2010 employee incentive program 42,359 218,359 429,784 Outstanding warrants under the 2015 employee incentive program 1,647,788 1,635,000 1,424,000 Outstanding Performance Share Units (PSUs) under the LTIP 2019 program 19,765 0 0 Total outstanding warrants 1,709,912 1,853,359 1,853,784 - out of which these warrants and PSUs are dilutive 0 72,000 0 - out of which these warrants and PSUs are anti-dilutive 1,709,912 1,781,359 1,853,784

Licenses, rights and patents

Licenses, rights and patents	12 Months Ended
	Dec. 31, 2019
Licenses, rights and patents
Licenses, rights and patents	Note 12 – Licenses, rights and patents Accounting policies Separately acquired licenses, rights and patents are initially measured at cost. Licenses, rights and patents acquired in connection with the purchase of a legal entity where substantially all of the fair value of the gross assets acquired is concentrated in a single asset are considered an asset acquisition and initially recognized at cost at the acquisition date. The cost will include the fair value on the date of acquisition of any contingent considerations. Any subsequent changes to the fair value will be recorded against the asset's cost. The acquired intangibles have a finite useful life and are subsequently carried at cost less accumulated amortizations using the straight-line method over the estimated useful life and impairment losses. Amortizations will recognized in the income statement as R&D expenses when the intangibles are available for use based on the determined useful life. If circumstances or changes in Zealand's operations indicate that the carrying amount of the intangibles may not be recoverable, Management will review the intangibles for impairment. At December 31, 2019 licenses, rights and patents comprises a right that will be included in a future development project originating from the acquisition of Encycle Therapeutics in October 2019. The right has been measured based on the overall cost of the transaction less the fair value of the cash balance and trade payables also acquired. The fair value of the contingent considerations related to Encycle Therapeutics was assessed to be zero as per the acquisition date based on the significant uncertainty of the outcome of the development to be performed by Zealand. Licenses, rights DKK thousand and patents Cost at January 1, 2019 — Additions 2,480 Cost at December 31, 2019 2,480 Amortization at January 1, 2019 — Amortization at December 31, 2019 — Carrying amount at December 31, 2019 2,480

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2019
Property, plant and equipment
Property, plant and equipment	Note 13 – Property, plant and equipment Accounting policies Plant and machinery, other fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation. Cost comprises acquisition price and costs directly related to acquisition until the time when the Group starts using the asset. Tangible assets under construction are recorded as work in progress until construction has been completed and use of asset commenced. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight‑line method over the expected useful lives of the assets. The depreciation periods are as follows: · Buildings 5-13 years · Plant and machinery 5-10 years · Other fixtures and fittings, tools and equipment 3–5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses and Administrative expenses. At the end of each reporting period, the Group 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 Group 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. No impairments have been recognized for 2019, 2018 and 2017. Plant and Other fixtures Building Assets under DKK thousand machinery and fittings improvements construction Cost at January 1, 2019 55,545 5,130 10,800 0 Transfer 0 27 (27) 0 Additions 3,419 7,630 3,918 14,001 Retirements (1,811) (286) (918) 0 Cost at December 31, 2019 57,153 12,501 13,773 14,001 Accumulated depreciation at January 1, 2019 41,895 3,336 10,614 0 Transfer 0 27 (27) 0 Depreciation for the year 3,483 1,085 157 0 Retirements (1,682) (284) (884) 0 Accumulated depreciation at December 31, 2019 43,696 4,164 9,860 0 Carrying amount at December 31, 2019 13,457 8,337 3,913 14,001 Depreciation for the financial year has been charged as: Research and development expenses 3,483 926 134 0 Administrative expenses 0 159 23 0 Total 3,483 1,085 157 0 Cost at January 1, 2018 53,629 4,382 10,800 0 Adjustment to prior year 2,748 1,290 — 0 Retirements (832) (542) — 0 Cost at December 31, 2018 55,545 5,130 10,800 0 Accumulated depreciation at January 1, 2018 38,774 3,429 10,496 0 Depreciation for the year 3,941 449 118 0 Retirements (820) (542) — 0 Accumulated depreciation at December 31, 2018 41,895 3,336 10,614 0 Carrying amount at December 31, 2018 13,650 1,794 186 0 Depreciation for the financial year has been charged as: Research and development expenses 3,941 382 100 0 Administrative expenses — 67 18 0 Total 3,941 449 118 0

Right-of-use-assets

Right-of-use-assets	12 Months Ended
	Dec. 31, 2019
Right-of-use-assets
Right-of-use-assets	Note 14 – Right-of-use-assets Accounting policies The Group leases an office building, equipment and vehicles. The rental contract for the office building has been made for a minimum period of 13 years (terminable by the landlord after 15 years). Management has assessed the lease period to be 13 years. Equipment and vehicles are leased over a period of 3-4 years with no extension option. Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components according to the specific pricing of the services in the agreements. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Until the 2018 financial year, all leases were classified as operating leases, but are from January 1, 2019 recognized as a right-and-use asset and corresponding liability at the date at which the asset is available for use by Zealand. IFRS 16 determines whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a pe-riod of time in exchange for consideration. Zealand applies the definition of a lease and related guidance set out in IFRS 16 to all contracts entered into or changed on or after January 1, 2019. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: · fixed payments less any lease incentives receivable · variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Short-term and low value leases are also recognized as right-of-use assets. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the Group’s incremental borrowing rate is used, being the rate that the group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to the income statement over the lease period to ensure a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: · the amount of the initial measurement of lease liability · any lease payments made at or before the commencement date less any lease incentives received · any initial direct costs and restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Amounts recognized in the statement of financial position The statement of financial position shows the following amounts relating to leases: Dec 31, Jan 1, DKK thousand 2019 2019 Right-of-use assets Buildings 84,148 7,750 Other fixtures and fittings 1,484 2,298 85,632 10,048 Lease liabilities Current 7,692 7,118 Non-current 78,068 2,930 85,760 10,048 DKK thousand 2019 Depreciation charge of right-of-use-assets Land and buildings 7,724 Other fixtures and fittings 1,094 8,818 Interest expense (included in finance expenses) 621 The total cash outflow for leases in 2019 was DKK 9.3 million.

Other investments

Other investments	12 Months Ended
	Dec. 31, 2019
Other investments
Other investments	Note 15 – Other investments Accounting policies Other investments are measured on initial recognition at cost, and subsequently at fair value. Changes in fair value are recognized in the income statement under financial items. The Group’s other investments consist of a USD 5.3 million (2018: USD 5.0 million) investment in Beta Bionics, Inc., the developer of iLet™, a fully integrated dual-hormone pump (bionic pancreas) for autonomous diabetes care. The investment in Beta Bionics, Inc. is recorded at fair value through profit and loss. This investment represents 1.6% (2018: 2.0%) ownership of Beta Bionics, Inc., and is recorded at a fair value of DKK 35.6 million as of December 31, 2019 (DKK 32.6 million as of December 31, 2018). In determining fair value, Zealand considered the impact of any recent share capital issuances by Beta Bionics as an indicator of the fair value of the shares. In particular, Beta Bionics under-took a capital offering in June 2019 and the share price at that point was used as the basis for determining fair value. Management has determined that there has been no significant changes to fair value since then accordingly the fair value as at December 31, 2019 has been measured on a consistent basis. Measurement is considered a level 3 measurement. A fair value adjustment of DKK 2.2 million and currency conversion impact of DKK 0.8 million, respectively, have been recognized in financial income in 2019 (2018: DKK 0.0 million).

Trade receivables

Trade receivables	12 Months Ended
	Dec. 31, 2019
Trade receivables
Trade receivables	Note 16 - 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 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, 2019, Zealand had no trade receivables related to milestone payments. At December 31, 2018, Zealand had trade receivables related to the milestone from Protagonist Therapeutics, Inc.

Prepaid expenses

Prepaid expenses	12 Months Ended
	Dec. 31, 2019
Prepaid expenses
Prepaid expenses	Note 17 - Prepaid expenses Accounting policies Prepaid expenses comprise amounts paid in respect of goods or services to be received in subsequent financial periods. Clinical trials, which are outsourced to Clinical Research Organizations (“CROs”), take several years to complete. As such, Management is required to make estimates based on the progress and costs incurred to-date for the ongoing trials. Judgements are made in determining the amount of costs to be expensed during the period, or recognized as prepayments or accruals on the statement of financial position. Prepayments are measured at cost and are tested for impairment at the statement of financial position date. The increase by DKK 19.0 million from 2018 (DKK 11.7 million) to 2019 (DKK 30.8 million) is primarily related to an increase in prepaid insurance, taken as a result of higher insurance costs because of the increased liability risk from the late stage pipeline and ongoing clinical trials.

Other receivables

Other receivables	12 Months Ended
	Dec. 31, 2019
Other receivables
Other receivables	Note 18 - 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 2019 2018 VAT 5,437 2,980 Other 2,498 388 Total other receivables 7,935 3,368

Marketable securities

Marketable securities	12 Months Ended
	Dec. 31, 2019
Marketable securities
Marketable securities	Note 19 - Marketable securities Accounting policies The Group’s Marketable 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. Refer to note 26, Financial risks.

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2019
Cash and cash equivalents
Cash and cash equivalents	Note 20 - 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 2019 2018 DKK 732,405 343,585 USD 306,748 96,526 EUR 41,907 420,524 Total cash and cash equivalents 1,081,060 860,635

Share capital

Share capital	12 Months Ended
	Dec. 31, 2019
Share capital
Share capital	Note 21 - Share capital Accounting policies Consideration paid and proceeds from selling treasury shares recognized directly in equity within retained losses. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the original cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared. Share capital Share capital at January 1, 2019 30,786,827 Capital increase on March 15, 2019 72,000 Capital increase on March 20, 2019 802,859 Capital increase on April 5, 2019 18,250 Capital increase on May 28, 2019 45,539 Capital increase on June 14, 2019 89,315 Capital increase on August 23, 2019 16,500 Capital increase on September 5, 2019 3,975,000 Capital increase on September 13, 2019 59,171 Capital increase on November 22, 2019 158,225 Capital increase on December 13, 2019 30,975 Share capital at December 31, 2019 36,054,661 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 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 The share capital solely consists of one class of ordinary shares all issued of DKK 1 each and all shares rank equally. The shares are negotiable instruments with no restrictions on their transferability. All shares have been fully paid. On March 20, 2019, a total of 802,859 new shares have been subscribed through a direct share issue to Alexion Pharmaceuticals, Inc. in connection with entering into the license agreement with Zealand Pharma A/S with net proceeds of DKK 85.6 million, including costs of DKK 0 million. On September 5, 2019, a total of 3,975,000 new shares have been subscribed through a private placement and directed share issue to existing shareholder Van Herk Investments B.V. with net proceeds of DKK 545.6 million, including costs of DKK 14.0 million. Other capital increases in 2019 and 2018 related to exercise of warrant programs. Expenses directly related to capital increases are deducted from equity. In 2019 expenses of DKK 0.4 million (2018: DKK 0.1 million) related to the exercise of warrant programs. At December 31, 2019, there were 64,223 treasury shares (2018: 64,223), equivalent to 0.2% (2018: 0.2%) of the share capital and corresponding to a market value of DKK 15.1 million (2018: DKK 5.3 million). 22,915 treasury shares have been allocated to performance shares units (PSUs) as part of Zealand Pharma’s long-term incentive program (LTIP) granted June 13, 2019. Of these a total of 19,765 PSU’s remain. See note 6 for a further description of the LTIP program. 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, 2019
Royalty bond
Royalty bond	Note 22 - Royalty bond Accounting policies The royalty bond was initially measured at the time of borrowing at fair value less any transaction costs and subsequently 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. 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 ® /Adlyx-in ® to Royalty Pharma. Zealand received USD 205.0 million (DKK 1,310.2 million) upon closing of the transaction on September 17, 2018. Zealand also redeemed the outstanding royalty bond of USD 24.7 million (DKK 157.6 million). Zealand will remain eligible for a payment from Sanofi up to USD 15.0 million in 2020 and 2022. Refer to note 25. 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 2019 2018 January 1 0 135,734 Financing cash flows (repayment) 0 (158,311) Amortization of financing costs 0 18,347 Exchange rate adjustments 0 4,230 December 31 0 0

Deferred revenue

Deferred revenue	12 Months Ended
	Dec. 31, 2019
Deferred revenue
Deferred revenue	Note 23 – Deferred revenue The Group has recognized the following liabilities related to contracts with customers. DKK thousand 2019 2018 Deferred revenues at January 1 0 0 Customer payment received 177,315 0 Revenue recognized during the year (37,425) 0 Total deferred revenue 139,890 0 Non-current deferred revenue 83,639 0 Current deferred revenue 56,251 0 139,890 0 Deferred revenue occurred in connection with the agreement with Alexion Pharmaceuticals, Inc. as disclosed in Note 2. An up-front payment of USD 25 million (DKK 177.3 million) was received of which DKK 37.4 million has been recognized during 2019. Management expects that approx. DKK 56 million of the up-front payment received will be recognized as revenue during 2020. The remaining payment is expected to be recognized during 2021 and 2022 according to the progress of the development project.

Other liabilities

Other liabilities	12 Months Ended
	Dec. 31, 2019
Other liabilities
Other liabilities	Note 24 - 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 statement of financial position date to settle obligations. Provisions also include accruals, and contingent payments on the conclusion of agreements, contracts, etc. DKK thousand 2019 2018 Severance payment 170 925 Employee benefits 36,082 34,971 Royalty payable to third party 6,843 6,682 Investment in Beta Bionics 0 22,803 Other payables 29,949 15,483 Total other liabilities 73,044 80,864

Contingent assets, liabilities

Contingent assets, liabilities and other contractual obligations	12 Months Ended
	Dec. 31, 2019
Contingent assets, liabilities and other contractual obligations
Contingent assets, liabilities and other contractual obligations	Note 25 - 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), milestone payments and lease commitments. Accounting policies Contingent assets and liabilities are disclosed, unless the possibility of an inflow or outflow of resources embodying economic benefits is virtually certain. At December 31, 2019, Zealand is still eligible for a payment from Sanofi of up to USD 15.0 million in 2020 and 2022. However, it is Management’s opinion that the amount of any payment cannot be determined on a sufficiently reliable basis, and therefore have not recognized an asset in the statement of financial position of the Group. At December 31, 2019, total contractual obligations related to agreements with CROs amounted to DKK 318.9 million (DKK 230.2 million for 2020 and DKK 88.8 million for the years 2021 up to and including 2023). Zealand may be required to pay future development, regulatory and commercial milestones related to the acquisition of Encycle Therapeutics. Refer to note 12. Accounting policies Up until 2018, Lease agreements were classified as either finance or operating leases based on the criteria in IAS 17 Leases. Lease payments under operating leases and other rental agreements were recognized in the income statement over the term of the agreements. In 2018, none of the Group’s leases were classified as finance leases. Refer to note 1 for accounting policy for leases effective since January 1, 2019.

Financial risks

Financial risks	12 Months Ended
	Dec. 31, 2019
Financial risks
Financial risks	Note 26 - 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 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 evaluated 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 conducts clinical trials and toxicology studies around the world, Zealand will be exposed to exchange rate risks associated with the denominated currency, which is primarily USD based on volume and fluctuations against DKK. To date, Zealand’s policy has been to manage the transaction and 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, 2019, Zealand holds DKK 306.7 million (DKK 96.5 million) of its cash in USD. Interest rate risk Zealand has a policy of avoiding financial instruments that expose the Group to any unwanted financial risks. As of December 31, 2019, Zealand is free of interest bearing debt. Up until the redemption in September 2018 Zealand had a fixed rate royalty bond. During 2019, all cash has been held in current bank accounts in USD, EUR and DKK. Interest rates on bank deposits in DKK and EUR have been negative since 2018, while USD accounts have generated a low level of interest income. During 2019 and 2018, Zealand has invested in low risk marketable securities. The Group’s marketable securities portfolio comprises bonds in Danish kroner. The average weighted duration of the bond portfolio on the statement of financial position date was 3 years in both years. 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. 2019 2018 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 30,657 +/-10% 9,627 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. With the exception of leasing, there are no interest cash-flows to be included in the table below for the existing financial liabilities as they are not interest-bearing financial liabilities. DKK thousand <12 months 1-5 Years >5 Years Total Trade payables 57,533 0 0 57,533 Leasing 7,692 23,359 54,709 85,760 Other liabilities 73,044 0 0 73,044 Total financial liabilities at December 31, 2019 138,269 23,359 54,709 216,337 Trade payables 32,652 0 0 32,652 Other liabilities 80,864 0 0 80,864 Total financial liabilities at December 31, 2018 113,516 0 0 113,516 All cash flows are non-discounted and include all liabilities under contracts. Interest payments on the royalty bond redeemed in September 2018 were calculated using the fixed interest rate (9.375%) and the expected payback time as of each statement of financial position date. DKK thousand 2019 2018 Categories of financial instruments Deposits 9,012 2,762 Trade receivables 751 3,274 Other receivables 7,935 3,368 Cash and cash equivalents 1,081,060 860,635 Financial assets at amortized cost 1,098,758 870,039 Marketable securities 299,448 298,611 Other investments 35,632 32,582 Financial assets measured at fair value through profit or loss 335,080 331,193 Lease liabilities 85,760 0 Trade payables 57,533 32,652 Other liabilities 73,044 80,864 Financial liabilities measured at amortized cost 216,337 113,516 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. Refer to note 15. The carrying amount of financial assets and financial liabilities approximated the fair value.

Related parties

Related parties	12 Months Ended
	Dec. 31, 2019
Related parties
Related parties	Note 27 - Related parties Zealand has no related parties with controlling interest. Zealand’s other related parties comprise the Company’s Board of Directors and Corporate Management. Remuneration to the Board of Directors and Corporate Management is disclosed in note 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 March 12, 2020: · Van Herk Investments, Rotterdam, Netherlands · Sunstone Capital A/S, Copenhagen, Denmark · Wellington Management Company LLP, Boston, U.S.

Adjustments for non-cash items

Adjustments for non-cash items	12 Months Ended
	Dec. 31, 2019
Adjustments for non-cash items
Adjustments for non-cash items	Note 28 - Adjustments for non‑cash items Restated Restated DKK thousand 2019 2018 2017 Depreciation 13,682 4,508 4,757 Warrant compensation expenses 14,763 17,474 19,311 Income tax income (5,999) 0 (5,500) Income tax expense 614 43,773 0 Financial income (9,306) 0 (2,048) Financial expenses 3,390 19,736 25,610 Non paid royalty expenses regarding sale of future royalties and milestones 0 6,575 0 Exchange rate adjustments (7,937) 9,864 (17,596) Total adjustments 9,207 101,930 24,534

Change in working capital

Change in working capital	12 Months Ended
	Dec. 31, 2019
Change in working capital
Change in working capital	Note 29 - Change in working capital DKK thousand 2019 2018 2017 (Increase)/decrease in receivables (21,059) (471) 1,306 Increase/(decrease) in payables 17,061 13,256 (12,610) Adjustment for non-cash investing activities (7,932) Cash outflow for investment in Beta Bionics 22,803 Change in working capital 10,873 12,785 (11,304)

Significant events after the ba

Significant events after the balance sheet date	12 Months Ended
	Dec. 31, 2019
Significant events after the balance sheet date
Significant events after the balance sheet date	Note 30 - Significant events after the balance sheet date On February 10, 2020, Zealand announced a bid to acquire substantially all assets of Valeritas Holdings, Inc. for a total cash consideration of USD 23 million. On February 9, 2020, Valeritas Holdings, Inc. and its subsidiaries filed voluntary petitions under Chapter 11 of the US Bankrupt-cy Code in the US Bankruptcy Court. If Zealand's bid is selected, the sale will be subject to ap-proval by the Bankruptcy Court and certain other closing conditions. There can be no certainty that the transaction will be concluded. No other significant events have occurred after the end of the reporting period.

Approval of the annual report

Approval of the annual report	12 Months Ended
	Dec. 31, 2019
Approval of the annual report
Approval of the annual report	Note 31 - 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 12, 2020.

Significant accounting polici_2

Significant accounting policies, and significant accounting estimates and assessments (Policies)	12 Months Ended
	Dec. 31, 2019
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 statement of financial position date are translated by applying the exchange rates at the statement of financial position date. Differences arising between the rate at the statement of financial position date and the rate at the date on which the receivable or payable arose are recognized in the income statement as financial income and financial expenses. 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 expenses recognized in the income statement is presented as an analysis using a classification based on their function. Segment reporting The Group is managed by a Corporate Management team reporting to the Chief Executive Officer. The Corporate Management team, including the Chief Executive Officer, represents the chief operating decision maker (CODM). No separate business areas or separate business units have been identified in connection with 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, marketable securities and cash. Financial assets are divided into categories of which the following are relevant for the Group: 1. Financial assets at amortized cost comprising of receivables with contractual cash flows solely comprising of payment of principal and interest and which are held for the purpose of collecting the contractual cash flow. 2. Financial assets at fair value through the income statement, which are marketable securities held in a business model whose purpose is to regularly sell marketable securities within the portfolio. 3. Equity investments. These investments are measured at fair value through the income statement. 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 result 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 milestone 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 proceeds from issuance of new shares and related costs, finance lease installments and loan financing. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances.
Significant accounting judgments and estimates	Significant accounting estimates and judgments In applying our accounting policies, Management is required to make judgments based on the specific facts and circumstances relevant to the assessment. 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 judgements and estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates including 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 2019. The following are the most significant accounting judgements and estimates applied by Management in these financial statements:
Revenue recognition	Revenue recognition (management judgement) 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. Upon entering into agreements with multiple components, Management determines whether individual components are distinct, which is the case if the buyer can obtain benefits from the goods or service and the promise is distinct within the context of the contract. If no individual components are distinct, the contract is treated as a single performance obligation. When entering into licensing and development agreements, a critical judgment relates to whether the customer could continue development of the IP to the stage promised by Zealand under the promise to provide R&D services. If this is not the case, the IP and the R&D services are considered a single performance obligation. Milestone payments are related to the collaborative research agreements with commercial partners and are recognized when it is highly probable that Zealand Pharma will become entitled to the milestone which is generally when the milestone is achieved. Royalty income from licenses is based on third-party sales of licensed products and is recognized in accordance with contract terms in the period in which the sales occur. Revenue from transactions involving the rendering of services which are consumed by the customer simultaneously with delivery is recognized along with delivery of the services.
Employee incentive programs	Employee incentive programs (management estimates) In accordance with IFRS 2, Share-based Payment, the fair value of the warrants classified as equity settled is measured at the grant date and recognized as an expense in the income statement over the vesting period. The fair value of each warrant granted during the year is estimated using the Black– Scholes option pricing model. This requires the input of subjective assumptions such as: · The expected stock price volatility, which is based on the historical volatility of Zealand’s share price · The selection of the risk-free interest rate, which is determined as the interest rate on Danish government bonds with a maturity equal to the expected term · The duration of the warrants, which is assumed to be until the middle of the exercise period The total fair value of the warrants is recognized in the income statement over the vesting period. An adjustment is made to reflect an expected attrition rate during the vesting period. The attrition rate is re-estimated at year-end based on the historical attrition rate resulting in recognition of an expense equal to grant date fair value of the number of warrants which actually vest. Encycle Therapeutics, Inc. acquisition (management judgement) As of October 2019, Zealand acquired all outstanding shares in Encycle Therapeutics, Inc. and all its intellectual property, including all rights to develop and commercialize the lead asset. Zealand will not be acquiring any infrastructure or personnel costs with this transaction. The total future consideration for the acquisition could potentially reach USD 80 million in one-time contingent value rights ("earn-outs"), of which USD 10 million in earn-outs could be payable up to the successful completion of a Phase 2 study. All earn-outs are payable in cash and/or Zea- land equity at Zealand's discretion, are linked to the lead asset only, and contingent on certain future successful development, regulatory, and commercial-related milestones. There is also a potential mid-single digit royalty on global net sales from the lead asset. Management has assessed that this acquisition is an asset acquisition, and thus will be accounted for in accord- ance with IAS 38, Intangible Assets and is not considered a business combination under IFRS 3, Business Combinations.
Restatements	Restatement (management judgement) During Q1 2019 a restatement related to warrants was identified by Management. The Company grants, on a regular basis, equity settled warrants to Corporate Management and other employ-ees. Historically, the warrants were deemed vested at grant date. Consequently, the full fair value at grant date has been recognized as an expense as of this date. Management has reconsidered the allocation of expenses of warrants. Management has concluded, the warrants vest at a future date as they become exercisable only upon continued employment during the time period from grant date up until the specified future date (i.e. the date upon which the warrants become exercisable). All warrants granted at one point in time vest on the same date (cliff vesting). The vesting period is typically 3 years resulting in straight-line recognition of the cost over 3 years rather than up front. The restatement affects reported profit/loss for the year ended December 31, 2018 and prior years. While the impact on interim periods is significant, the full year impact is insignificant as the impact between the quarterly interim periods primarily nets out the full year impact. Due to the fact that the warrants are equity settled, the counter-entry to the restated expense is equity. Consequently, the restatement has no impact on reported total equity in any periods. The value of warrants recognized in equity is presented as part of share premium. Consequently, the restatement results in a reduction of the share premium and a corresponding decrease in accumulated loss equal to the cumulative effect on reported profit/loss in prior years for warrants not fully vested as at January 1, 2018. The impact of the restatements of warrants on the statement of cash flow is solely a reclassi-fication between “Net profit/loss for the period” and “Change in working capital”. Hence, there is no impact on the cash flow from operating activities. Therefore, the Company deemed it irrelevant to present restated statements of cash flow. The nature and impact of each restatement in 2017 and 2018 per line item in the consolidated income statement and consolidated statement of financial position for Zealand is presented on page 58 and 59. Income statement: Research and development expenses and Administrative expenses Warrant expenses recognized in staff expenses classified as Research and development expens-es and Administrative expenses, respectively, have been restated as described above. The restatement has an opposing tax impact of 22% in 2018 because of the positive taxable income, whereas there is no recognized tax impact in 2017 due to the negative taxable income. Statement of financial position: Share premium/Retained Losses (Equity) The counter-entry to the warrant expenses recognized in the income statement (debit) is Share Premium (credit) in Equity. The impact on the income statement is recognized in Retained losses (debit) in Equity, thus results in no net impact on Equity. The restatement of Share premium and Retained losses impact shows the cumulative impact. Consolidated income statement for the twelve month period ended December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Revenue 37,977 0 37,977 Royalty expenses (3,356) 0 (3,356) Research and development expenses (438,215) (4) (438,219) Administrative expenses (43,542) (1) (43,543) Other operating income 1,099,526 0 1,099,526 Operating result 652,390 (5) 652,385 Financial income 9,988 0 9,988 Financial expenses (37,322) 0 (37,322) Result before tax 625,056 (5) 625,051 Income tax (43,774) 1 (43,773) Net result for the year 581,282 (4) 581,278 Earnings per share - basic (DKK) 18.94 18.94 Earnings per share - diluted (DKK) 18.94 18.94 Consolidated statements of comprehensive income for the year ended December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Net result for the year 581,282 (4) 581,278 Other comprehensive income (loss) 0 0 0 Net result for the year 581,282 (4) 581,278 Consolidated income statement for the twelve month period ended December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Revenue 136,322 0 136,322 Royalty expenses (14,163) 0 (14,163) Research and development expenses (324,667) 718 (323,949) Administrative expenses (47,470) 127 (47,343) Other operating income 607 0 607 Operating result (249,371) 845 (248,526) Financial income 2,122 0 2,122 Financial expenses (33,509) 0 (33,509) Result before tax (280,758) 845 (279,913) Income tax 5,500 0 5,500 Net result for the year (275,258) 845 (274,413) Loss per share - basic (DKK) (9.88) (0.03) (9.85) Loss per share - diluted (DKK) (9.88) (0.03) (9.85) Consolidated statements of comprehensive income for the year ended December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Net result for the year (275,258) 845 (274,413) Other comprehensive income (loss) 0 0 0 Net result for the year (275,258) 845 (274,413) Consolidated statement of financial position as of December 31, 2018 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Equity and liabilities Share capital 30,787 30,787 Share premium 1,979,493 (22,016) 1,957,477 Retained losses (893,999) 22,016 (871,983) Equity 1,116,281 1,116,281 Royalty bond Deferred revenue Lease liabilities Non-current liabilities Trade payables 32,652 32,652 Corporate tax payables Royalty bond Lease liabilities Deferred revenue Other liabilities 80,864 80,864 Current liabilities 113,516 113,516 Total liabilities 113,516 113,516 Total equity and liabilities 1,229,797 1,229,797 Consolidated statement of financial position as of December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Equity and liabilities Share capital 30,751 0 30,751 Share premium 1,959,199 (22,020) 1,937,179 Retained losses (1,475,281) 22,020 (1,453,261) Equity 514,669 0 514,669 Royalty bond 132,986 0 132,986 Deferred revenue 0 0 0 Lease liabilities 0 0 0 Non-current liabilities 132,986 0 132,986 Trade payables 29,428 0 29,428 Corporate tax payables 0 0 0 Royalty bond 2,748 0 2,748 Lease liabilities 0 0 0 Deferred revenue 0 0 0 Other liabilities 41,454 0 41,454 Current liabilities 73,630 0 73,630 Total liabilities 206,616 0 206,616 Total equity and liabilities 721,285 0 721,285
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 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, except where the capitalization criteria is met. No indirect costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement. Overhead expenses have been allocated to research and development or administrative expenses based on the number of employees in each department, determined according to the respective employees’ associated undertakings. Judgment applied 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 administrative expenses but also development expenses. Zealand has not capitalized any development expenses in 2019, 2018 or 2017. Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to company premises, depreciation on right-of-use assets, investor relations, etc. Overhead expenses have been allocated to research and development or administrative expenses according to the number of employees in each department, based on the respective employees’ associated undertakings.
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, fair value adjustments of marketable securities and dividends from marketable securities. Interest income is recognized in the income statement in accordance with the effective interest rate method.
Financial expenses	Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjustments and fair value adjustments of securities. In addition, expenses related to the royalty bond until settlement in September 2018 were amortized over the expected duration of the bond and recognized as financial expenses until it was settled in September 2018. The royalty bond is described further in note 22. 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 statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. This judgment is made on an ongoing basis and is based on recent historical losses carrying more weight than factors such as budgets and business plans for the coming years, including planned commercial initiatives. The creation and development of therapeutic products within the biotechnology and pharmaceutical industry is subject to considerable risks and uncertainties. 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, 2019. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax laws and rates that have been enacted or substantively enacted at the statement of financial position date. 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 (tax value of DKK 5.5 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. Tangible assets under construction are recorded as work in progress until construction has been completed and use of asset commenced. The basis for depreciation is cost less estimated residual value at the end of the useful life. Assets are depreciated using the straight‑line method over the expected useful lives of the assets. The depreciation periods are as follows: · Buildings 5-13 years · Plant and machinery 5-10 years · Other fixtures and fittings, tools and equipment 3–5 years Gains and losses arising from disposal of plant and equipment are stated as the difference between the selling price less the costs of disposal and the carrying amount of the asset at the time of the disposal. Gains and losses are recognized in the income statement under Research and development expenses and Administrative expenses. At the end of each reporting period, the Group 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 Group 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. No impairments have been recognized for 2019, 2018 and 2017.
Other investments	Other investments are measured on initial recognition at cost, and subsequently at fair value. Changes in fair value are recognized in the income statement under financial items.
Trade receivables	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 applies the simplified approach for determining expected credit losses.
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 Marketable 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. Refer to note 26, Financial risks.
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	Accounting policies Consideration paid and proceeds from selling treasury shares recognized directly in equity within retained losses. Capital reductions through cancellation of treasury shares reduce the share capital by an amount equal to the original cost price of the shares. Dividend payments are recognized as a deduction of equity and a corresponding liability when declared.
Royalty bond	The royalty bond was initially measured at the time of borrowing at fair value less any transaction costs and subsequently 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 statement of financial position date to settle obligations. Provisions also include accruals, and 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 inflow or outflow of resources embodying economic benefits is virtually certain. Up until 2018, Lease agreements were classified as either finance or operating leases based on the criteria in IAS 17 Leases. Lease payments under operating leases and other rental agreements were recognized in the income statement over the term of the agreements. In 2018, none of the Group’s leases were classified as finance leases. Refer to note 1 for accounting policy for leases effective since January 1, 2019.

Business overview (Tables)

Business overview (Tables)	12 Months Ended
	Dec. 31, 2019
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 % Encycle Therapeutics Inc. Canada 100 % 100 % ZP SPV 3 K/S Denmark 100 % 100 % ZP General Partner 3 ApS Denmark 100 % 100 % ZP Holding SPV K/S subsidiaries ZP SPV 1 K/S Denmark 100 % 100 % ZP General Partner 2 ApS Denmark 100 % 100 %

Significant accounting polici_3

Significant accounting policies, and significant accounting estimates and assessments (Tables)	12 Months Ended
	Dec. 31, 2019
Significant accounting policies, and significant accounting estimates and assessments
Schedule of Consolidated income statement	As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Revenue 37,977 0 37,977 Royalty expenses (3,356) 0 (3,356) Research and development expenses (438,215) (4) (438,219) Administrative expenses (43,542) (1) (43,543) Other operating income 1,099,526 0 1,099,526 Operating result 652,390 (5) 652,385 Financial income 9,988 0 9,988 Financial expenses (37,322) 0 (37,322) Result before tax 625,056 (5) 625,051 Income tax (43,774) 1 (43,773) Net result for the year 581,282 (4) 581,278 Earnings per share - basic (DKK) 18.94 18.94 Earnings per share - diluted (DKK) 18.94 18.94 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Revenue 136,322 0 136,322 Royalty expenses (14,163) 0 (14,163) Research and development expenses (324,667) 718 (323,949) Administrative expenses (47,470) 127 (47,343) Other operating income 607 0 607 Operating result (249,371) 845 (248,526) Financial income 2,122 0 2,122 Financial expenses (33,509) 0 (33,509) Result before tax (280,758) 845 (279,913) Income tax 5,500 0 5,500 Net result for the year (275,258) 845 (274,413) Loss per share - basic (DKK) (9.88) (0.03) (9.85) Loss per share - diluted (DKK) (9.88) (0.03) (9.85) As originally Amount as reported, adjusted, December 31, December 31, DKK thousand 2016 Restatement 2016 Revenue 234,778 (3,914) 230,864 Royalty expenses (31,459) 528 (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 result (115,646) (3,386) (119,032) Financial income 592 0 592 Financial expenses (44,356) 0 (44,356) Result before tax (159,410) (3,386) (162,796) Income tax benefit 5,500 0 5,500 Net result for the year (153,910) (3,386) (157,296) Earnings per share - basic (DKK) (6.33) (0.14) (6.47) Earnings per share - diluted (DKK) (6.33) (0.14) (6.47)
Schedule of Consolidated statements of comprehensive income	As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Net result for the year 581,282 (4) 581,278 Other comprehensive income (loss) 0 0 0 Net result for the year 581,282 (4) 581,278 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Net result for the year (275,258) 845 (274,413) Other comprehensive income (loss) 0 0 0 Net result for the year (275,258) 845 (274,413) As originally Amount as reported, adjusted, December 31, December 31, DKK thousand 2016 Restatement 2016 Net result for the year (153,910) (3,386) (157,296) Other comprehensive income (loss) — — — Net loss for the period (153,910) (3,386) (157,296)
Schedule of Consolidated Statement of Financial Position	As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2018 Restatement 2018 Equity and liabilities Share capital 30,787 30,787 Share premium 1,979,493 (22,016) 1,957,477 Retained losses (893,999) 22,016 (871,983) Equity 1,116,281 1,116,281 Royalty bond Deferred revenue Lease liabilities Non-current liabilities Trade payables 32,652 32,652 Corporate tax payables Royalty bond Lease liabilities Deferred revenue Other liabilities 80,864 80,864 Current liabilities 113,516 113,516 Total liabilities 113,516 113,516 Total equity and liabilities 1,229,797 1,229,797 Consolidated statement of financial position as of December 31, 2017 As most recently Amount as reported, adjusted, December 31, December 31, DKK thousand 2017 Restatement 2017 Equity and liabilities Share capital 30,751 0 30,751 Share premium 1,959,199 (22,020) 1,937,179 Retained losses (1,475,281) 22,020 (1,453,261) Equity 514,669 0 514,669 Royalty bond 132,986 0 132,986 Deferred revenue 0 0 0 Lease liabilities 0 0 0 Non-current liabilities 132,986 0 132,986 Trade payables 29,428 0 29,428 Corporate tax payables 0 0 0 Royalty bond 2,748 0 2,748 Lease liabilities 0 0 0 Deferred revenue 0 0 0 Other liabilities 41,454 0 41,454 Current liabilities 73,630 0 73,630 Total liabilities 206,616 0 206,616 Total equity and liabilities 721,285 0 721,285
Summary of measurement of lease liabilities	DKK thousand Jan 1, 2019 Reconciliation Operating lease obligations disclosed at December 31, 2018 67,507 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (11,723) Initial recognition of lease liabilities during 2019 (32,198) Adjustments as a result of recognition of non-lease components 1,241 Adjustments as a result of a different treatment of extension and termination options 4,529 Adjustments as a result of lease liabilities to be recognized in subsequent years (19,308) Lease liabilities recognized at January 1, 2019 10,048 Of which are: - Current lease liabilities 7,118 - Non-current lease liabilities 2,930 10,048

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue
Schedule of revenue recognition	DKK thousand 2019 2018 2017 Alexion Pharmaceuticals Inc. 38,021 — — Undisclosed counterpart 3,312 9,845 — Protagonist Therapeutics, Inc. — 3,274 1,662 Sanofi-Aventis Deutschland GmbH — — 69,603 Boehringer Ingelheim International GmbH — — 29,750 Total license and milestone revenue 41,333 13,119 101,015 Sanofi—Aventis Deutschland GmbH — 24,858 35,307 Total royalty revenue 0 24,858 35,307 Total revenue 41,333 37,977 136,322 Royalty revenue can be specified as follows: Soliqua ® — 17,786 18,655 Lyxumia ® — 7,072 16,652 Total royalty revenue 0 24,858 35,307

Fees to auditors appointed at_2

Fees to auditors appointed at the Annual General Meeting (Tables)	12 Months Ended
	Dec. 31, 2019
Fees to auditors appointed at the Annual General Meeting
Summary of fees to auditors appointed at the Annual General Meeting	DKK thousand 2019 2018 2017 Audit 1,847 1,661 1,199 Audit-related services and other assurance engagements 1,731 718 2,418 Tax advice 0 106 114 Other 12 0 196 Total fees 3,590 2,485 3,927

Information on staff and remu_2

Information on staff and remuneration (Tables)	12 Months Ended
	Dec. 31, 2019
Information on staff and remuneration
Schedule of staff salaries	Restated Restated DKK thousand 2019 2018 2017 Total staff costs can be specified as follows: Wages and salaries 175,104 141,661 112,614 Share-based payment costs 14,764 17,474 19,311 Pension schemes (defined contribution plans) 13,430 11,065 9,135 Other payroll and staff-related costs 14,932 9,783 10,135 Total 218,230 179,983 151,195 The amount is charged as: Research and development expenses 178,089 153,601 118,573 Administrative expenses 40,141 26,382 32,622 Total 218,230 179,983 151,195 Average number of employees 173 146 128 2019 2018 2017 Base Committee Total Base Committee Total Base Committee Total DKK thousand board fee Fees fees board fee Fees fees board fee Fees fees Remuneration to the Board of Directors Martin Nicklasson 750 100 850 650 100 750 550 100 650 Kirsten Drejer 1 467 0 467 200 0 200 0 0 0 Alain Munoz 400 50 450 300 50 350 250 33 283 Michael Owen 400 50 450 300 50 350 250 50 300 Bernadette Mary Connaughton 267 0 267 0 0 0 0 0 0 Jeffrey Berkowitz 267 33 300 0 0 0 0 0 0 Leonard Kruimer 267 100 367 0 0 0 0 0 0 Jens Peter Stenvang 2 400 0 400 300 0 300 250 0 250 Hanne Heidenheim Bak 2 400 0 400 300 0 300 198 0 198 Rosemary Crane 5 133 17 150 333 50 383 350 50 400 Catherine Moukheibir 5 133 50 183 300 150 450 250 150 400 Helle Haxgart 2, 4 0 0 0 100 0 100 21 0 21 Rasmus Just 2, 3 0 0 0 0 0 0 229 0 229 Total 3,884 400 4,284 2,783 400 3,183 2,348 383 2,731 ¹ Kirsten Drejer was appointed vice chairman at the General Meeting on April 4 in 2019. ² Employee-elected board members; the table only includes remuneration for board work. ³ This board member resigned from the Board in 2017. ⁴ This board member resigned from the Board in 2018. ⁵ These board members resigned from the Board in 2019. The disclosed remuneration for board members excludes minor mandatory social security costs paid by the company. It also excludes reimbursed expenses incurred in connection with board meetings, such as travel and accomodation.
Schedule of components of staff salaries and remuneration	Other Warrant Pension short term compensation DKK thousand Base salary Bonus contribution benefits expenses Total 2019 Remuneration to the Executive Management Emmanuel Dulac 1 3,100 9,072 620 855 832 14,479 Adam Sinding Steensberg² 2,807 1,032 505 269 2,304 6,917 Matthew Donald Dallas 3 588 534 0 5 82 1,209 Britt Meelby Jensen 4 1,745 419 175 60 0 2,399 Mats Blom 4 655 248 66 61 1,677 2,707 Total 8,895 11,305 1,366 1,250 4,895 27,711 Other Corporate Management 5 6,559 2,580 389 46 1,972 11,546 Total 6,559 2,580 389 46 1,972 11,546 Total 15,454 13,885 1,755 1,296 6,867 39,257 2018 Remuneration to the Executive Management Restated Restated Britt Meelby Jensen 4,189 2,513 419 320 7,441 Mats Blom 2,621 1,031 262 273 1,888 6,075 Total 6,810 3,544 681 593 1,888 13,516 Other Corporate Management 5 6,689 2,653 604 1,035 4,471 15,452 Total 6,689 2,653 604 1,035 4,471 15,452 Total 13,499 6,197 1,285 1,628 6,359 28,968 2017 Remuneration to the Executive Management Restated Restated Britt Meelby Jensen 3,915 2,482 392 231 4,554 11,574 Mats Blom 2,496 999 250 271 1,747 5,763 Total 6,411 3,481 642 502 6,301 17,337 Other Corporate Management 5 4,416 1,787 442 388 3,125 10,158 Total 4,416 1,787 442 388 3,125 10,158 Total 10,827 5,268 1,084 890 9,426 27,495 ¹ Emmanuel Dulac was appointed as CEO at April 25, 2019. ² Former Interim CEO Adam Sinding Steensberg was appointed EVP, R&D and CMO at April 25, 2019. ³ Matthew Donald Dallas was appointed CFO at October 10, 2019. ⁴ Former CEO Britt Meelby Jensen and former CFO Mats Blom resigned from Zealand at February 28, 2019 and March 28, 2019, respectively. ⁵ Other Corporate Management in 2019 comprised three members (2018: Four and 2017: Two).
Schedule of number of share warrants and exercise price	The 2010 employee incentive program Program Program Program Program Program Program of 2010 of 2010 of 2010 of 2010 of 2010 of 2010 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, 2019 0 0 0 72,000 100,000 46,359 218,359 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 0 (72,000) (68,000) (36,000) (176,000) Expired during the year 0 0 0 0 0 0 0 Outstanding at December 31, 2019 0 0 0 0 32,000 10,359 42,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 0 0 32,000 10,359 42,359 Total 0 0 0 0 32,000 10,359 42,359 Number of warrants Outstanding at January 1, 2018 0 0 183,425 100,000 100,000 46,359 429,784 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 0 (28,000) 0 0 (28,000) Expired during the year 0 0 (183,425) 0 0 0 (183,425) Outstanding at December 31, 2018 0 0 0 72,000 100,000 46,359 218,359 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 0 72,000 100,000 46,359 218,359 Total 0 0 0 72,000 100,000 46,359 218,359 Number of warrants Outstanding at January 1, 2017 6,250 214,883 261,137 100,000 100,000 46,359 728,629 Forfeited during the year 0 0 0 0 0 0 0 Exercised during the year 0 0 (77,712) 0 0 0 (77,712) Expired during the year (6,250) (214,883) 0 0 0 0 (221,133) Outstanding at December 31, 2017 0 0 183,425 100,000 100,000 46,359 429,784 Specified as follows: Executive Management 0 0 0 0 0 0 0 Other employees 0 0 183,425 100,000 100,000 46,359 429,784 Total 0 0 183,425 100,000 100,000 46,359 429,784 Exercise period From 10/Feb/15 19/Nov/15 10/Feb/16 01/Apr/17 25/Mar/18 05/May/18 Until 10/Feb/17 19/Nov/17 10/Feb/18 01/Apr/19 25/Mar/20 05/May/20 Black-Scholes parameters Term (months) Share price 70.0 86.0 79.05 69.0 115.5 92.0 Exercise price (DKK) 77.0 113.3 87.45 75.9 127.05 101.2 Volatility* 44.0 % 56.0 % 39.3 % 37.5 % 41.9 % 43.7 % Risk-free interest rate 0.37 % 0.86 % 0.66 % 0.71 % (0.21) % (0.10) % Cost price 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 * 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 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 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 of 2015 05/May/15 05/May/15 05/Apr/16 05/Apr/16 15/Jul/16 06/Apr/17 06/Apr/17 25/Aug/17 25/Aug/17 22/May/18 15/Oct/18 10/Apr/19 13/Jun/19 13/Jun/19 13/Jun/19 13/Jun/19 5/Dec/19 5/Dec/19 5/Dec/19 Total Number of warrants Outstanding at January 1, 2019 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 0 0 0 0 0 0 0 0 1,635,000 Granted during the year 0 0 0 0 0 0 0 0 0 0 0 397,750 168,388 8,659 8,659 8,658 16,304 16,304 16,307 641,029 Forfeited during the year 0 (9,050) (40,250) 0 (40,000) (88,750) 0 0 0 (92,000) 0 (17,500) (26,716) 0 0 0 0 0 0 (314,266) Exercised during the year 0 (242,550) (71,425) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (313,975) Expired during the year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Outstanding at December 31, 2019 0 90,650 210,075 0 0 292,250 0 0 0 418,000 40,000 380,250 141,672 8,659 8,659 8,658 16,304 16,304 16,307 1,647,788 Specified as follows: Executive Management 0 45,000 60,000 0 0 57,000 0 0 0 65,000 0 0 117,894 0 0 0 9,093 9,092 9,092 372,171 Other employees 0 45,650 150,075 0 0 235,250 0 0 0 353,000 40,000 380,250 23,778 8,659 8,659 8,658 7,211 7,212 7,215 1,275,617 Total 0 90,650 210,075 0 0 292,250 0 0 0 418,000 40,000 380,250 141,672 8,659 8,659 8,658 16,304 16,304 16,307 1,647,788 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 0 0 0 0 0 0 0 0 1,424,000 Granted during the year 0 0 0 0 0 0 0 0 0 615,500 40,000 0 0 0 0 0 0 0 0 655,500 Forfeited during the year (100,000) 0 (7,000) (85,434) 0 (24,500) (93,392) (14,566) (6,608) (105,500) 0 0 0 0 0 0 0 0 0 (437,000) Exercised during the year 0 (7,500) 0 0 0 0 0 0 0 0 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 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 0 0 0 0 0 0 0 0 1,635,000 Specified as follows: Executive Management 0 75,000 25,000 0 0 57,000 0 0 0 60,000 0 0 0 0 0 0 0 0 0 217,000 Other employees 0 267,250 296,750 0 40,000 324,000 0 0 0 450,000 40,000 0 0 0 0 0 0 0 0 1,418,000 Total 0 342,250 321,750 0 40,000 381,000 0 0 0 510,000 40,000 0 0 0 0 0 0 0 0 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 0 0 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 0 0 0 0 0 0 0 0 538,566 Forfeited during the year 0 (7,500) (16,250) (14,566) 0 (18,500) 0 0 0 0 0 0 0 0 0 0 0 0 0 (56,816) Exercised during the year 0 0 0 0 0 0 0 0 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 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 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 457,000 Other employees 0 274,750 303,750 0 40,000 348,500 0 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 1,424,000 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 10/Apr/22 13/Jun/22 13/Jun/20 13/Jun/21 13/Jun/22 05/Dec/20 05/Dec/21 05/Dec/22 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 10/Apr/24 13/Jun/24 13/Jun/24 13/Jun/24 13/Jun/24 05/Dec/24 05/Dec/24 05/Dec/24 Black-Scholes parameters Term (months) Share price (DKK) 92.0 92.0 129.5 129.5 126.0 123.0 123.0 118.5 118.5 100.8 90.0 127.0 138.6 138.6 138.6 138.6 220.0 220.0 220.0 Exercise price (DKK) 101.2 101.2 142.45 142.45 138.6 135.3 135.3 142.45 135.3 100.8 90.0 127.0 138.6 138.6 138.6 138.6 220.0 220.0 220.0 Volatility* 43.7 % 43.7 % 43.5 % 43.5 % 45.0 % 43.6 % 43.6 % 43.0 % 43.0 % 42.6 % 42.5 % 43.5 % 43.0 % 43.0 % 43.0 % 43.0 % 41.9 % 41.9 % 41.9 % 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) % (0.45) % (0.59) % (0.59) % (0.59) % (0.59) % (0.63) % (0.63) % (0.63) % 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 41.94 45.04 45.04 45.04 45.04 69.52 69.52 69.52 Dividend not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected not expected * The average traded share price on the exercise date(s) of the 2010 warrant program was 124.6 and the average traded share price on the exercise date(s) of the 2015 warrant program was 151.7.
Schedule of number of shares units granted	DKK thousand 2019 2018 Number of shares At January 1 0 0 Granted during the year 22,915 0 Vested during the year 0 0 Forfeited during the year (3,150) 0 At December 31 19,765 0
Schedule of value of warrants recognized in the income statement	Restated Restated DKK thousand 2019 2018 2017 The amount is charged as: Research and development expenses 13,919 11,291 Administrative expenses 3,555 8,020 Total 17,474 19,311

Other operating income (Tables)

Other operating income (Tables)	12 Months Ended
	Dec. 31, 2019
Other operating income
Schedule of other operating income	DKK thousand 2019 2018 2017 Government grants 444 630 567 Gross proceeds from sale of future royalties and milestones 0 1,310,237 0 Royalty expenses regarding the above sale of future royalties and milestones 0 (176,882) 0 Fee, advisors regarding the above sale of future royalties and milestones 0 (34,459) 0 Research funding 0 0 40 Total other operating income 444 1,099,526 607

Financial income (Tables)

Financial income (Tables)	12 Months Ended
	Dec. 31, 2019
Other operating income
Schedule of financial income	DKK thousand 2019 2018 2017 Interest income from financial assets measured at amortized costs 5,413 4,263 2,048 Fair value adjustments of Other investments and Marketable securities 2,846 0 74 Exchange rate adjustments 5,518 4,705 0 Dividend, Marketable securities 878 1,020 Total financial income 14,655 9,988 2,122

Financial expenses (Tables)

Financial expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Financial expenses
Schedule of financial expenses	. DKK thousand 2019 2018 2017 Interest expenses from financial liabilities measured at amortized costs 3,205 15,080 18,913 Amortization of financing costs 0 18,347 5,748 Fair value adjustments of Marketable securities 0 1,389 0 Loss on sale of Marketable securities 0 881 0 Other financial expenses 185 1,625 949 Exchange rate adjustments 0 0 7,899 Total financial expenses 3,390 37,322 33,509

Income tax benefit (Tables)

Income tax benefit (Tables)	12 Months Ended
	Dec. 31, 2019
Income tax benefit
Schedule of income tax receivables	Restated Restated DKK thousand 2019 2018 2017 Net result for the year before tax (576,677) 625,051 (279,913) Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) 126,869 (137,511) 61,581 Adjustment for non-deductible expenses (947) (65) (62) Adjustment for non-taxable income 964 0 0 Adjustment for exercised warrants (1,653) (2,228) (1,732) Adjustment for R&D super deduction 1,676 1,427 0 Tax effect on exercise of warrants 6,092 8 688 Tax effect on expired warrants 175 151 (4,407) Warrant - share price development 4,050 0 0 Change in tax assets (not recognized) (132,090) 94,445 (50,568) Total income tax expense/benefit 5,136 (43,773) 5,500 Breakdown of unrecognized deferred tax assets: Tax losses carried forward (available indefinitely) 681,531 580,937 872,670 Research and development expenses 460,007 136,755 210,148 Rights 35,849 35,849 43,019 Non-current assets 51,677 50,308 67,590 Liabilities 139,890 0 0 Other 70,306 79,986 104,377 Total temporary differences 1,439,260 883,835 1,297,804 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Calculated potential deferred tax asset at local tax rate 316,637 194,444 285,517 Write-down of deferred tax asset (316,637) (194,444) (285,517) 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, 2019
Basic and diluted earnings per share
Schedule of basic and diluted loss per share	Restated Restated DKK thousand 2019 2018 2017 Net result for the year (571,541) 581,278 (274,413) Net result used in the calculation of basic and diluted earnings/losses per share (571,541) 581,278 (274,413) Weighted average number of ordinary shares 33,866,709 30,754,948 27,918,271 Weighted average number of treasury shares (64,223) (64,223) (64,223) Weighted average number of ordinary shares used in the calculation of basic earnings per share 33,802,486 30,690,725 27,854,048 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 33,802,486 30,696,404 27,854,048 Basic earnings/loss per share (DKK) (16.91) 18.94 (9.85) Diluted earnings/loss per share (DKK) (16.91) 18.94 (9.85)
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	DKK thousand 2019 2018 2017 Outstanding warrants under the 2010 employee incentive program 42,359 218,359 429,784 Outstanding warrants under the 2015 employee incentive program 1,647,788 1,635,000 1,424,000 Outstanding Performance Share Units (PSUs) under the LTIP 2019 program 19,765 0 0 Total outstanding warrants 1,709,912 1,853,359 1,853,784 - out of which these warrants and PSUs are dilutive 0 72,000 0 - out of which these warrants and PSUs are anti-dilutive 1,709,912 1,781,359 1,853,784

Licenses, rights and patents (T

Licenses, rights and patents (Tables)	12 Months Ended
	Dec. 31, 2019
Licenses, rights and patents
Summary of licenses, rights and patents	Licenses, rights DKK thousand and patents Cost at January 1, 2019 — Additions 2,480 Cost at December 31, 2019 2,480 Amortization at January 1, 2019 — Amortization at December 31, 2019 — Carrying amount at December 31, 2019 2,480

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Property, plant and equipment
Schedule of property, plant and equipment	Plant and Other fixtures Building Assets under DKK thousand machinery and fittings improvements construction Cost at January 1, 2019 55,545 5,130 10,800 0 Transfer 0 27 (27) 0 Additions 3,419 7,630 3,918 14,001 Retirements (1,811) (286) (918) 0 Cost at December 31, 2019 57,153 12,501 13,773 14,001 Accumulated depreciation at January 1, 2019 41,895 3,336 10,614 0 Transfer 0 27 (27) 0 Depreciation for the year 3,483 1,085 157 0 Retirements (1,682) (284) (884) 0 Accumulated depreciation at December 31, 2019 43,696 4,164 9,860 0 Carrying amount at December 31, 2019 13,457 8,337 3,913 14,001 Depreciation for the financial year has been charged as: Research and development expenses 3,483 926 134 0 Administrative expenses 0 159 23 0 Total 3,483 1,085 157 0 Cost at January 1, 2018 53,629 4,382 10,800 0 Adjustment to prior year 2,748 1,290 — 0 Retirements (832) (542) — 0 Cost at December 31, 2018 55,545 5,130 10,800 0 Accumulated depreciation at January 1, 2018 38,774 3,429 10,496 0 Depreciation for the year 3,941 449 118 0 Retirements (820) (542) — 0 Accumulated depreciation at December 31, 2018 41,895 3,336 10,614 0 Carrying amount at December 31, 2018 13,650 1,794 186 0 Depreciation for the financial year has been charged as: Research and development expenses 3,941 382 100 0 Administrative expenses — 67 18 0 Total 3,941 449 118 0

Right-of-use-assets (Tables)

Right-of-use-assets (Tables)	12 Months Ended
	Dec. 31, 2019
Right-of-use-assets
Summary of amounts recognised in the statement of financial position	Dec 31, Jan 1, DKK thousand 2019 2019 Right-of-use assets Buildings 84,148 7,750 Other fixtures and fittings 1,484 2,298 85,632 10,048 Lease liabilities Current 7,692 7,118 Non-current 78,068 2,930 85,760 10,048 DKK thousand 2019 Depreciation charge of right-of-use-assets Land and buildings 7,724 Other fixtures and fittings 1,094 8,818 Interest expense (included in finance expenses) 621

Other receivables (Tables)

Other receivables (Tables)	12 Months Ended
	Dec. 31, 2019
Other receivables
Schedule of other receivables	DKK thousand 2019 2018 VAT 5,437 2,980 Other 2,498 388 Total other receivables 7,935 3,368

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2019
Cash and cash equivalents
Schedule of cash and cash equivalents	DKK thousand 2019 2018 DKK 732,405 343,585 USD 306,748 96,526 EUR 41,907 420,524 Total cash and cash equivalents 1,081,060 860,635

Share capital (Tables)

Share capital (Tables)	12 Months Ended
	Dec. 31, 2019
Share capital
Schedule of share capital	Share capital Share capital at January 1, 2019 30,786,827 Capital increase on March 15, 2019 72,000 Capital increase on March 20, 2019 802,859 Capital increase on April 5, 2019 18,250 Capital increase on May 28, 2019 45,539 Capital increase on June 14, 2019 89,315 Capital increase on August 23, 2019 16,500 Capital increase on September 5, 2019 3,975,000 Capital increase on September 13, 2019 59,171 Capital increase on November 22, 2019 158,225 Capital increase on December 13, 2019 30,975 Share capital at December 31, 2019 36,054,661 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 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, 2019
Royalty bond
Schedule of changes in the Group's liabilities arising from financing activities regarding the royalty bond	DKK thousand 2019 2018 January 1 0 135,734 Financing cash flows (repayment) 0 (158,311) Amortization of financing costs 0 18,347 Exchange rate adjustments 0 4,230 December 31 0 0

Deferred revenue (Tables)

Deferred revenue (Tables)	12 Months Ended
	Dec. 31, 2019
Deferred revenue
Summary of liabilities related to contracts with customers	DKK thousand 2019 2018 Deferred revenues at January 1 0 0 Customer payment received 177,315 0 Revenue recognized during the year (37,425) 0 Total deferred revenue 139,890 0 Non-current deferred revenue 83,639 0 Current deferred revenue 56,251 0 139,890 0

Other liabilities (Tables)

Other liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Other liabilities
Schedule of other liabilities	DKK thousand 2019 2018 Severance payment 170 925 Employee benefits 36,082 34,971 Royalty payable to third party 6,843 6,682 Investment in Beta Bionics 0 22,803 Other payables 29,949 15,483 Total other liabilities 73,044 80,864

Financial risks (Tables)

Financial risks (Tables)	12 Months Ended
	Dec. 31, 2019
Financial risks
Schedule of effect on profit/loss and equity of reasonably likely change in financial variable	2019 2018 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 30,657 +/-10% 9,627
Schedule of contractual maturity	DKK thousand <12 months 1-5 Years >5 Years Total Trade payables 57,533 0 0 57,533 Leasing 7,692 23,359 54,709 85,760 Other liabilities 73,044 0 0 73,044 Total financial liabilities at December 31, 2019 138,269 23,359 54,709 216,337 Trade payables 32,652 0 0 32,652 Other liabilities 80,864 0 0 80,864 Total financial liabilities at December 31, 2018 113,516 0 0 113,516
Schedule of financial instrument carried at fair value	DKK thousand 2019 2018 Categories of financial instruments Deposits 9,012 2,762 Trade receivables 751 3,274 Other receivables 7,935 3,368 Cash and cash equivalents 1,081,060 860,635 Financial assets at amortized cost 1,098,758 870,039 Marketable securities 299,448 298,611 Other investments 35,632 32,582 Financial assets measured at fair value through profit or loss 335,080 331,193 Lease liabilities 85,760 0 Trade payables 57,533 32,652 Other liabilities 73,044 80,864 Financial liabilities measured at amortized cost 216,337 113,516

Adjustments for non-cash items

Adjustments for non-cash items (Tables)	12 Months Ended
	Dec. 31, 2019
Adjustments for non-cash items
Schedule of adjustments for non-cash items	Restated Restated DKK thousand 2019 2018 2017 Depreciation 13,682 4,508 4,757 Warrant compensation expenses 14,763 17,474 19,311 Income tax income (5,999) 0 (5,500) Income tax expense 614 43,773 0 Financial income (9,306) 0 (2,048) Financial expenses 3,390 19,736 25,610 Non paid royalty expenses regarding sale of future royalties and milestones 0 6,575 0 Exchange rate adjustments (7,937) 9,864 (17,596) Total adjustments 9,207 101,930 24,534

Change in working capital (Tabl

Change in working capital (Tables)	12 Months Ended
	Dec. 31, 2019
Change in working capital
Schedule of change in working capital	DKK thousand 2019 2018 2017 (Increase)/decrease in receivables (21,059) (471) 1,306 Increase/(decrease) in payables 17,061 13,256 (12,610) Adjustment for non-cash investing activities (7,932) Cash outflow for investment in Beta Bionics 22,803 Change in working capital 10,873 12,785 (11,304)

Business overview (Details)

Business overview (Details) kr in Thousands, $ in Millions	Sep. 17, 2018USD ($)	Sep. 17, 2018DKK (kr)	Dec. 31, 2019DKK (kr)itemproduct	Dec. 31, 2018DKK (kr)	[1]	Dec. 31, 2017DKK (kr)	[1]	Dec. 31, 2019USD ($)
Overview of Business
Products advanced into clinical development			10
Products which have reached market | product			2
Other income | kr			kr 444	kr 1,099,526		kr 607
Peptide-like macrocycles			5,000
ZP Holding SPV K/S
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
ZP General Partner 1 ApS
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
Zealand Pharma US Inc.
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
Encycle Therapeutics Inc.
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
ZP SPV 1 K/S
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
ZP General Partner 2 ApS
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
ZP SPV 3 K/S
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
ZP General Partner 3 ApS
Overview of Business
Ownership interest in subsidiaries (in percentage)			100.00%
Voting rights held in subsidiaries (in percentage)			100.00%
Sanofi
Overview of Business
Other income	$ 205	kr 1,310,200
Estimated effect of potential milestone | $								$ 15
[1]	See note 1 to the consolidated financial statements.

Significant accounting polici_4

Significant accounting policies, and significant accounting estimates and assessments - Acquisition (Details) $ in Millions	Oct. 31, 2019USD ($)
Significant accounting policies, and significant accounting estimates and assessments
Total future consideration for the acquisition	$ 80
Earn-outs	$ 10

Significant accounting polici_5

Significant accounting policies, and significant accounting estimates and assessments - Income statement - Consolidated Key figures (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of initial application of standards or interpretations [line items]
Tax impact (as a percent)	22.00%	22.00%	22.00%
Restatement
Disclosure of initial application of standards or interpretations [line items]
Tax impact (as a percent)		22.00%

Significant accounting polici_6

Significant accounting policies, and significant accounting estimates and assessments - Consolidated income statement (Details) - DKK (kr) kr / shares in Units, kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Consolidated income statement
Revenue	kr 41,333	kr 37,977	[1]	kr 136,322	[1]
Royalty expenses	(415)	(3,356)	[1]	(14,163)	[1]
Research and development expenses	(561,423)	(438,219)	[1]	(323,949)	[1]
Administrative expenses	(67,881)	(43,543)	[1]	(47,343)	[1]
Other operating income	444	1,099,526	[1]	607	[1]
Operating result	(587,942)	652,385	[1]	(248,526)	[1]
Financial income	14,655	9,988	[1]	2,122	[1]
Financial expenses	(3,390)	(37,322)	[1]	(33,509)	[1]
Result before tax	(576,677)	625,051	[1]	(279,913)	[1]
Income tax	5,136	(43,773)	[1]	5,500	[1]
Net result for the year	kr (571,541)	kr 581,278	[1]	kr (274,413)	[1]
Earnings/loss per share - DKK
Earnings per share - basic (DKK)	kr (16.91)	kr 18.94	[1]	kr (9.85)	[1]
Earnings per share - diluted (DKK)	kr (16.91)	kr 18.94	[1]	kr (9.85)	[1]
As originally reported
Consolidated income statement
Revenue		kr 37,977		kr 136,322
Royalty expenses		(3,356)		(14,163)
Research and development expenses		(438,215)		(324,667)
Administrative expenses		(43,542)		(47,470)
Other operating income		1,099,526		607
Operating result		652,390		(249,371)
Financial income		9,988		2,122
Financial expenses		(37,322)		(33,509)
Result before tax		625,056		(280,758)
Income tax		(43,774)		5,500
Net result for the year		kr 581,282		kr (275,258)
Earnings/loss per share - DKK
Earnings per share - basic (DKK)		kr 18.94		kr (9.88)
Earnings per share - diluted (DKK)		kr 18.94		kr (9.88)
Restatement
Consolidated income statement
Revenue		kr 0		kr 0
Royalty expenses		0		0
Research and development expenses		(4)		718
Administrative expenses		(1)		127
Other operating income		0		0
Operating result		(5)		845
Financial income		0		0
Financial expenses		0		0
Result before tax		(5)		845
Income tax		1		0
Net result for the year		kr (4)		kr 845
Earnings/loss per share - DKK
Earnings per share - basic (DKK)		kr 0		kr (0.03)
Earnings per share - diluted (DKK)		kr 0		kr (0.03)
[1]	See note 1 to the consolidated financial statements.

Significant accounting polici_7

Significant accounting policies, and significant accounting estimates and assessments - Consolidated statements of comprehensive income (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Consolidated statements of comprehensive income
Net result for the year	kr (571,541)	kr 581,278	[1]	kr (274,413)	[1]
Other comprehensive income (loss)	0	0	[1]	0	[1]
Comprehensive result for the year	kr (571,541)	581,278	[1]	(274,413)	[1]
As originally reported
Consolidated statements of comprehensive income
Net result for the year		581,282		(275,258)
Other comprehensive income (loss)		0		0
Comprehensive result for the year		581,282		(275,258)
Restatement
Consolidated statements of comprehensive income
Net result for the year		(4)		845
Other comprehensive income (loss)		0		0
Comprehensive result for the year		kr (4)		kr 845
[1]	See note 1 to the consolidated financial statements.

Significant accounting polici_8

Significant accounting policies, and significant accounting estimates and assessments - Consolidated statement of financial position (Details) - DKK (kr)	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Equity and liabilities
Share capital	kr 36,054,661		kr 30,786,827	[1]	kr 30,751,327	kr 26,142,365	kr 24,352,769	kr 23,193,047
Share premium	2,650,142,000		1,957,477,000	[1]	1,937,179,000
Retained losses	(1,443,524,000)		(871,983,000)	[1]	(1,453,261,000)
Equity	1,242,673,000		1,116,281,000	[1]	514,669,000
Royalty bond	0		0	[1]	132,986,000
Deferred revenue	83,639,000		0	[1]	0
Lease liabilities	78,068,000	kr 2,930,000	0	[1]	0
Non-current liabilities	161,707,000		0	[1]	132,986,000
Trade payables	57,533,000		32,652,000	[1]	29,428,000
Corporate tax payables			0		0
Royalty bond	0		0	[1]	2,748,000
Lease liabilities	7,692,000	kr 7,118,000	0	[1]	0
Deferred revenue	56,251,000		0	[1]	0
Other liabilities	73,044,000		80,864,000	[1]	41,454,000
Current liabilities	195,134,000		113,516,000	[1]	73,630,000
Total liabilities	356,841,000		113,516,000	[1]	206,616,000
Total equity and liabilities	kr 1,599,514,000		1,229,797,000	[1]	721,285,000
As originally reported
Equity and liabilities
Share capital			30,787,000		30,751,000
Share premium			1,979,493,000		1,959,199,000
Retained losses			(893,999,000)		(1,475,281,000)
Equity			1,116,281,000		514,669,000	kr 267,382,000
Royalty bond			0		132,986,000
Deferred revenue			0		0
Lease liabilities			0		0
Non-current liabilities			0		132,986,000
Trade payables			32,652,000		29,428,000
Corporate tax payables			0		0
Royalty bond			0		2,748,000
Lease liabilities			0		0
Deferred revenue			0		0
Other liabilities			80,864,000		41,454,000
Current liabilities			113,516,000		73,630,000
Total liabilities			113,516,000		206,616,000
Total equity and liabilities			1,229,797,000		721,285,000
Restatement
Equity and liabilities
Share capital			0		0
Share premium			(22,016,000)		(22,020,000)
Retained losses			22,016,000		22,020,000
Equity			0		0
Royalty bond			0		0
Deferred revenue			0		0
Lease liabilities			0		0
Non-current liabilities			0		0
Trade payables			0		0
Corporate tax payables			0		0
Royalty bond			0		0
Lease liabilities			0		0
Deferred revenue			0		0
Other liabilities			0		0
Current liabilities			0		0
Total liabilities			0		0
Total equity and liabilities			kr 0		kr 0
[1]	See note 1 to the consolidated financial statements.

Significant accounting polici_9

Significant accounting policies, and significant accounting estimates and assessments - Measurement of lease liabilities (Details) - DKK (kr) kr in Thousands	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	[1]	Dec. 31, 2017
Measurement of lease liabilities
Lease liabilities recognized at January 1, 2019	kr 10,048	kr 85,760
Of which are:
- Current lease liabilities	7,118	7,692	kr 0		kr 0
- Non-current lease liabilities	2,930	78,068	kr 0		kr 0
Lease liability recognized at January 1, 2019	kr 10,048	kr 85,760
Weighted average lessee's incremental borrowing rate applied to lease liabilities	2.10%
IFRS 16
Measurement of lease liabilities
Operating lease obligations disclosed at 31 December 2018	kr 67,507
Discounted using the lessee's incremental borrowing rate of at the date of initial application	(11,723)
Initial recognition of lease liabilities during 2019	(32,198)
Adjustments as a result of recognition of non-lease components	1,241
Adjustments as a result of a different treatment of extension and termination options	4,529
Adjustments as a result of lease liabilities to be recognized in subsequent years	(19,308)
Lease liabilities recognized at January 1, 2019	10,048
Of which are:
- Current lease liabilities	7,118
- Non-current lease liabilities	2,930
Lease liability recognized at January 1, 2019	kr 10,048
[1]	See note 1 to the consolidated financial statements.

Revenue (Details)

Revenue (Details) kr in Thousands, € in Millions, $ in Millions

Sep. 06, 2018USD ($)

Sep. 30, 2019EUR (€)

Mar. 31, 2019USD ($)

Mar. 31, 2019DKK (kr)

Dec. 31, 2019EUR (€)

Dec. 31, 2019USD ($)

Dec. 31, 2019DKK (kr)

Dec. 31, 2018EUR (€)

Dec. 31, 2018DKK (kr)

Dec. 31, 2017EUR (€)

Dec. 31, 2017DKK (kr)

Dec. 31, 2014

Dec. 31, 2003USD ($)

Dec. 31, 2019DKK (kr)

Revenue:

Share premium

kr 1,957,477

[1]

kr 1,937,179

kr 2,650,142

Equity

1,116,281

[1]

514,669

1,242,673

Cash flows from operation activities

kr (409,455)

(461,420)

[1]

(278,746)

[1]

Cash flows from financing activities

kr 674,480

(155,449)

[1]

337,930

[1]

Royalty payable (as a percent)

13.50%

13.50%

13.50%

License and milestone revenue

kr 41,333

13,119

101,015

Royalty revenue

0

24,858

35,307

Total revenue

41,333

37,977

[1]

136,322

[1]

Milestone payment and license option payments

Revenue:

License and milestone revenue

3,300

9,800

Alexion

Revenue:

Equity investment from counterparty | $

$ 15

Consideration received

$ 40

262,900

Deferred revenue

139,900

Share premium

12,700

Equity

kr 85,600

Cash flows from operation activities

177,300

Cash flows from financing activities

85,600

License and milestone revenue

25

kr 37,400

38,021

Other revenue

600

Total revenue

kr 37,400

Alexion | Development milestone

Revenue:

Potential milestone receivable | $

115

Alexion | Sales milestone

Revenue:

Potential milestone receivable | $

495

Alexion | Development and sales milestone and royalties

Revenue:

License and milestone revenue | $

$ 15

Sanofi

Revenue:

Estimated effect of potential milestone | $

$ 15

Royalty payable (as a percent)

13.00%

13.00%

13.00%

Royalty receivable (as percent of net sales)

10.00%

License and milestone revenue

0

69,603

$ 100

Royalty revenue

24,858

35,307

Royalty expense as a percentage

0.50%

License fee expense in percentage

13.00%

Potential milestone payment from Sanofi | $

$ 15

$ 15

Sanofi | Lyxumia

Revenue:

Royalty revenue

7,072

€ 22.4

16,652

Sales by counterparty as basis for royalty revenue | €

€ 9.5

Sanofi | Soliqua

Revenue:

Royalty revenue

17,786

€ 25.1

18,655

Sales by counterparty as basis for royalty revenue | €

€ 23.8

Inventor or SIP Technology

Revenue:

Royalty payable (as a percent)

0.50%

0.50%

0.50%

Boehringer Ingelheim

Revenue:

License and milestone revenue

29,750

Term

4 years 6 months

Boehringer Ingelheim | Advance novel glucagon

Revenue:

Maximum amount of milestone payments to be received | €

€ 386

Outstanding milestone payments | €

365

Boehringer Ingelheim | Therapeutic peptides stemming

Revenue:

Maximum amount of milestone payments to be received | €

295

Outstanding milestone payments | €

€ 283

Boehringer Ingelheim | Development milestone

Revenue:

Potential milestone receivable | €

€ 20

Undisclosed counterpart

Revenue:

License and milestone revenue

kr 3,312

9,845

Protagonist Therapeutics

Revenue:

License and milestone revenue

kr 3,274

kr 1,662

[1]

See note 1 to the consolidated financial statements.

Royalty expenses (Details)

Royalty expenses (Details)	12 Months Ended
	Dec. 31, 2019
Other operating income
Royalty payable (as percent)	13.50%
Sanofi
Other operating income
Royalty payable (as percent)	13.00%
Inventor or SIP Technology
Other operating income
Royalty payable (as percent)	0.50%

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Audit fees:
Audit	kr 1,847	kr 1,661	kr 1,199
Audit-related services and other assurance engagements	1,731	718	2,418
Tax advice	0	106	114
Other	12	0	196
Total fees	kr 3,590	kr 2,485	kr 3,927

Information on staff and remu_3

Information on staff and remuneration (Details) kr in Thousands	12 Months Ended
	Dec. 31, 2019DKK (kr)employee	Dec. 31, 2018DKK (kr)employee	Dec. 31, 2017DKK (kr)employee
Total staff costs can be specified as follows:
Wages and salaries	kr 175,104	kr 141,661	kr 112,614
Share-based payment costs	14,764	17,474	19,311
Pension schemes (defined contribution plans)	13,430	11,065	9,135
Other payroll and staff-related costs	14,932	9,783	10,135
Total staff salaries	218,230	179,983	151,195
Research and development expenses	178,089	153,601	118,573
Administrative expenses	40,141	26,382	32,622
Total staff salaries	kr 218,230	kr 179,983	kr 151,195
Average number of employees | employee	173	146	128
Remuneration to the Board of Directors
Base board fee	kr 3,884	kr 2,783	kr 2,348
Committee Fees	400	400	383
Total remuneration	4,284	3,183	2,731
Martin Nicklasson
Remuneration to the Board of Directors
Base board fee	750	650	550
Committee Fees	100	100	100
Total remuneration	850	750	650
Vice chairman
Remuneration to the Board of Directors
Base board fee	467	200	0
Committee Fees	0	0	0
Total remuneration	467	200	0
Alain Munoz
Remuneration to the Board of Directors
Base board fee	400	300	250
Committee Fees	50	50	33
Total remuneration	450	350	283
Michael Owen
Remuneration to the Board of Directors
Base board fee	400	300	250
Committee Fees	50	50	50
Total remuneration	450	350	300
Bernadette Mary Connaughton
Remuneration to the Board of Directors
Base board fee	267	0	0
Committee Fees	0	0	0
Total remuneration	267	0	0
Jeffrey Berkowitz
Remuneration to the Board of Directors
Base board fee	267	0	0
Committee Fees	33	0	0
Total remuneration	300	0	0
Leonard Kruimer
Remuneration to the Board of Directors
Base board fee	267	0	0
Committee Fees	100	0	0
Total remuneration	367	0	0
Jens Peter Stenvang
Remuneration to the Board of Directors
Base board fee	400	300	250
Committee Fees	0	0	0
Total remuneration	400	300	250
Hanne Heidenheim Bak
Remuneration to the Board of Directors
Base board fee	400	300	198
Committee Fees	0	0	0
Total remuneration	400	300	198
Rosemary Crane (resigned 2019)
Remuneration to the Board of Directors
Base board fee	133	333	350
Committee Fees	17	50	50
Total remuneration	150	383	400
Catherine Moukheibir
Remuneration to the Board of Directors
Base board fee	133	300	250
Committee Fees	50	150	150
Total remuneration	183	450	400
Helle Haxgart (resigned 2018)
Remuneration to the Board of Directors
Base board fee	0	100	21
Committee Fees	0	0	0
Total remuneration	0	100	21
Rasmus Just (resigned 2017)
Remuneration to the Board of Directors
Base board fee	0	0	229
Committee Fees	0	0	0
Total remuneration	kr 0	kr 0	kr 229

Information on staff and remu_4

Information on staff and remuneration - Remuneration to the Executive Management (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of transactions between related parties
Base salary	kr 15,454	kr 13,499	kr 10,827
Short term Bonus	13,885	6,197	5,268
Pension contribution	1,755	1,285	1,084
Other short term benefits	1,296	1,628	890
Warrant compensation expenses	6,867	6,359	9,426
Total	39,257	28,968	27,495
Executive Management
Disclosure of transactions between related parties
Base salary	8,895	6,810	6,411
Short term Bonus	11,305	3,544	3,481
Pension contribution	1,366	681	642
Other short term benefits	1,250	593	502
Warrant compensation expenses	4,895	1,888	6,301
Total	27,711	13,516	17,337
EVP, R&D and CMO
Disclosure of transactions between related parties
Base salary	2,807
Short term Bonus	1,032
Pension contribution	505
Other short term benefits	269
Warrant compensation expenses	2,304
Total	6,917
Former CFO (resigned 2/28/2019)
Disclosure of transactions between related parties
Base salary	1,745	4,189	3,915
Short term Bonus	419	2,513	2,482
Pension contribution	175	419	392
Other short term benefits	60	320	231
Warrant compensation expenses	0	0	4,554
Total	2,399	7,441	11,574
Former CFO (resigned 3/28/2019)
Disclosure of transactions between related parties
Base salary	655	2,621	2,496
Short term Bonus	248	1,031	999
Pension contribution	66	262	250
Other short term benefits	61	273	271
Warrant compensation expenses	1,677	1,888	1,747
Total	2,707	6,075	5,763
Chief Executive Officer
Disclosure of transactions between related parties
Base salary	3,100
Short term Bonus	9,072
Pension contribution	620
Other short term benefits	855
Warrant compensation expenses	832
Total	14,479
Chief Financial Officer
Disclosure of transactions between related parties
Base salary	588
Short term Bonus	534
Pension contribution	0
Other short term benefits	5
Warrant compensation expenses	82
Total	1,209
Other Corporate Management
Disclosure of transactions between related parties
Base salary	6,559	6,689	4,416
Short term Bonus	2,580	2,653	1,787
Pension contribution	389	604	442
Other short term benefits	46	1,035	388
Warrant compensation expenses	1,972	4,471	3,125
Total	kr 11,546	kr 15,452	kr 10,158

Information on staff and remu_5

Information on staff and remuneration - Programs granted (Details)	12 Months Ended
	Dec. 31, 2019EquityInstrumentskr / shares	Dec. 31, 2018EquityInstruments	Dec. 31, 2017EquityInstruments
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	1,853,359	1,853,784
Number of warrants, end of the period	1,709,912	1,853,359	1,853,784
Programs granted in 2011 - 2015
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	218,359	429,784	728,629
Number of warrants, forfeited	0	0	0
Number of warrants, exercised	(176,000)	(28,000)	(77,712)
Number of warrants, expired	0	(183,425)	(221,133)
Number of warrants, end of the period	42,359	218,359	429,784
Program of 2010 - 10 Feb 2012
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	6,250
Number of warrants, forfeited	0	0	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	(6,250)
Number of warrants, end of the period	0	0	0
Term (months)	P60M
Share price (DKK) | kr / shares	kr 70
Exercise price (DKK) | kr / shares	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	0	214,883
Number of warrants, forfeited	0	0	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	(214,883)
Number of warrants, end of the period	0	0	0
Term (months)	P60M
Share price (DKK) | kr / shares	kr 86
Exercise price (DKK) | kr / shares	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	0	183,425	261,137
Number of warrants, forfeited	0	0	0
Number of warrants, exercised	0	0	(77,712)
Number of warrants, expired	0	(183,425)	0
Number of warrants, end of the period	0	0	183,425
Term (months)	P60M
Share price (DKK) | kr / shares	kr 79.05
Exercise price (DKK) | kr / shares	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	72,000	100,000	100,000
Number of warrants, forfeited	0	0	0
Number of warrants, exercised	(72,000)	(28,000)	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	72,000	100,000
Term (months)	P60M
Share price (DKK) | kr / shares	kr 69
Exercise price (DKK) | kr / shares	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, forfeited	0	0	0
Number of warrants, exercised	(68,000)	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	32,000	100,000	100,000
Term (months)	P60M
Share price (DKK) | kr / shares	kr 115.5
Exercise price (DKK) | kr / shares	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, forfeited	0	0	0
Number of warrants, exercised	(36,000)	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	10,359	46,359	46,359
Term (months)	P60M
Share price (DKK) | kr / shares	kr 92
Exercise price (DKK) | kr / shares	kr 101.2
Volatility	43.70%
Risk-free interest rate	(0.10%)
Cost price (DKK) | kr / shares	kr 31.63
Warrant Programs Granted 2015 To 2019 [Member]
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	1,635,000	1,424,000	942,250
Number of warrants granted	641,029	655,500	538,566
Number of warrants, forfeited	(314,266)	(437,000)	(56,816)
Number of warrants, exercised	(313,975)	(7,500)	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	1,647,788	1,635,000	1,424,000
Program of 2015- 05 May 2015, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	100,000	100,000
Number of warrants granted	0	0	0
Number of warrants, forfeited	0	(100,000)	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	0	100,000
Term (months)	P60M
Share price (DKK) | kr / shares	kr 92
Exercise price (DKK) | kr / shares	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	342,250	349,750	357,250
Number of warrants granted	0	0	0
Number of warrants, forfeited	(9,050)	0	(7,500)
Number of warrants, exercised	(242,550)	(7,500)	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	90,650	342,250	349,750
Term (months)	P60M
Share price (DKK) | kr / shares	kr 92
Exercise price (DKK) | kr / shares	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	321,750	328,750	345,000
Number of warrants granted	0	0	0
Number of warrants, forfeited	(40,250)	(7,000)	(16,250)
Number of warrants, exercised	(71,425)	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	210,075	321,750	328,750
Term (months)	P60M
Share price (DKK) | kr / shares	kr 129.5
Exercise price (DKK) | kr / shares	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	0	85,434	100,000
Number of warrants granted	0	0	0
Number of warrants, forfeited	0	(85,434)	(14,566)
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	0	85,434
Term (months)	P60M
Share price (DKK) | kr / shares	kr 129.5
Exercise price (DKK) | kr / shares	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	40,000
Number of warrants granted	0	0	0
Number of warrants, forfeited	(40,000)	0	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	40,000	40,000
Term (months)	P60M
Share price (DKK) | kr / shares	kr 126
Exercise price (DKK) | kr / shares	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	381,000	405,500	0
Number of warrants granted	0	0	424,000
Number of warrants, forfeited	(88,750)	(24,500)	(18,500)
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	292,250	381,000	405,500
Term (months)	P60M
Share price (DKK) | kr / shares	kr 123
Exercise price (DKK) | kr / shares	kr 135.30
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	0	93,392	0
Number of warrants granted	0	0	93,392
Number of warrants, forfeited	0	(93,392)	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	0	93,392
Term (months)	P60M
Share price (DKK) | kr / shares	kr 123
Exercise price (DKK) | kr / shares	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	0	14,566	0
Number of warrants granted	0	0	14,566
Number of warrants, forfeited	0	(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	0	14,566
Term (months)	P60M
Share price (DKK) | kr / shares	kr 118.5
Exercise price (DKK) | kr / shares	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	0	6,608	0
Number of warrants granted	0	0	6,608
Number of warrants, forfeited	0	(6,608)	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	0	0	6,608
Term (months)	P60M
Share price (DKK) | kr / shares	kr 118.5
Exercise price (DKK) | kr / shares	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	510,000	0	0
Number of warrants granted	0	615,500	0
Number of warrants, forfeited	(92,000)	(105,500)	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	418,000	510,000	0
Term (months)	P60M
Share price (DKK) | kr / shares	kr 100.8
Exercise price (DKK) | kr / shares	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	40,000	0	0
Number of warrants granted	0	40,000	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	40,000	0
Term (months)	P60M
Share price (DKK) | kr / shares	kr 90
Exercise price (DKK) | kr / shares	kr 90
Volatility	42.50%
Risk-free interest rate	(0.03%)
Cost price (DKK) | kr / shares	kr 32.83
Program of 2015- 10 Apr 2019
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	397,750	0	0
Number of warrants, forfeited	(17,500)	0	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	380,250	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 127
Exercise price (DKK) | kr / shares	kr 127
Volatility	43.50%
Risk-free interest rate	(0.45%)
Cost price (DKK) | kr / shares	kr 41.94
Program of 2015- 13 Jun 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	168,388	0	0
Number of warrants, forfeited	(26,716)	0	0
Number of warrants, exercised	0	0	0
Number of warrants, expired	0	0	0
Number of warrants, end of the period	141,672	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 138.6
Exercise price (DKK) | kr / shares	kr 138.6
Volatility	43.00%
Risk-free interest rate	(0.59%)
Cost price (DKK) | kr / shares	kr 45.04
Program of 2015- 13 Jun 2019 , Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	8,659	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	8,659	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 138.6
Exercise price (DKK) | kr / shares	kr 138.6
Volatility	43.00%
Risk-free interest rate	(0.59%)
Cost price (DKK) | kr / shares	kr 45.04
Program of 2015- 13 Jun 2019, Third
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	8,659	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	8,659	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 138.6
Exercise price (DKK) | kr / shares	kr 138.6
Volatility	43.00%
Risk-free interest rate	(0.59%)
Cost price (DKK) | kr / shares	kr 45.04
Program of 2015- 13 Jun 2019, Four
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	8,658	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	8,658	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 138.6
Exercise price (DKK) | kr / shares	kr 138.6
Volatility	43.00%
Risk-free interest rate	(0.59%)
Cost price (DKK) | kr / shares	kr 45.04
Program of 2015- 05 Dec 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	16,304	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	16,304	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 220
Exercise price (DKK) | kr / shares	kr 220
Volatility	41.90%
Risk-free interest rate	(0.63%)
Cost price (DKK) | kr / shares	kr 69.52
Program of 2015- 05 Dec 2019, Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	16,304	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	16,304	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 220
Exercise price (DKK) | kr / shares	kr 220
Volatility	41.90%
Risk-free interest rate	(0.63%)
Cost price (DKK) | kr / shares	kr 69.52
Program of 2015- 05 Dec 2019, Third
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0	0
Number of warrants granted	16,307	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	16,307	0	0
Term (months)	P48M
Share price (DKK) | kr / shares	kr 220
Exercise price (DKK) | kr / shares	kr 220
Volatility	41.90%
Risk-free interest rate	(0.63%)
Cost price (DKK) | kr / shares	kr 69.52
Executive Management | Programs granted in 2011 - 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 - 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	0
Number of warrants, end of the period	0	0	0
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 | Warrant Programs Granted 2015 To 2019 [Member]
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	217,000	457,000
Number of warrants, end of the period	372,171	217,000	457,000
Executive Management | Program of 2015- 05 May 2015, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	100,000
Number of warrants, end of the period	0	0	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	45,000	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	60,000	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	0	85,434
Number of warrants, end of the period	0	0	85,434
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	57,000
Number of warrants, end of the period	57,000	57,000	57,000
Executive Management | Program of 2015- 06 April 2017, Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	93,392
Number of warrants, end of the period	0	0	93,392
Executive Management | Program of 2015- 25 August 2017, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	14,566
Number of warrants, end of the period	0	0	14,566
Executive Management | Program of 2015- 25 August 2017, Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	6,608
Number of warrants, end of the period	0	0	6,608
Executive Management | Program of 2015- 22 May 2018
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	60,000	0
Number of warrants, end of the period	65,000	60,000	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
Executive Management | Program of 2015- 10 Apr 2019
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- 13 Jun 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	117,894	0	0
Executive Management | Program of 2015- 13 Jun 2019 , 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
Executive Management | Program of 2015- 13 Jun 2019, Third
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- 13 Jun 2019, Four
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 Dec 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	9,093	0	0
Executive Management | Program of 2015- 05 Dec 2019, Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	9,092	0	0
Executive Management | Program of 2015- 05 Dec 2019, Third
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	9,092	0	0
Other employees | Programs granted in 2011 - 2015
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	218,359	429,784
Number of warrants, end of the period	42,359	218,359	429,784
Other employees | 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
Other employees | Program of 2010 - 19 Nov 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
Other employees | Program of 2010 - 8 Feb 2013
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	183,425
Number of warrants, end of the period	0	0	183,425
Other employees | Program of 2010 - 1 Apr 2014
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	72,000	100,000
Number of warrants, end of the period	0	72,000	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	32,000	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	10,359	46,359	46,359
Other employees | Warrant Programs Granted 2015 To 2019 [Member]
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	1,418,000	967,000
Number of warrants, end of the period	1,275,617	1,418,000	967,000
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	267,250	274,750
Number of warrants, end of the period	45,650	267,250	274,750
Other employees | Program of 2015- 05 April 2016, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	296,750	303,750
Number of warrants, end of the period	150,075	296,750	303,750
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	0	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	324,000	348,500
Number of warrants, end of the period	235,250	324,000	348,500
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	450,000	0
Number of warrants, end of the period	353,000	450,000	0
Other employees | Program of 2015- 15 Oct 2018
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	40,000	0
Number of warrants, end of the period	40,000	40,000	0
Other employees | Program of 2015- 10 Apr 2019
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	380,250	0	0
Other employees | Program of 2015- 13 Jun 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	23,778	0	0
Other employees | Program of 2015- 13 Jun 2019 , Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	8,659	0	0
Other employees | Program of 2015- 13 Jun 2019, Third
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	8,659	0	0
Other employees | Program of 2015- 13 Jun 2019, Four
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	8,658	0	0
Other employees | Program of 2015- 05 Dec 2019, First
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	7,211	0	0
Other employees | Program of 2015- 05 Dec 2019, Second
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	7,212	0	0
Other employees | Program of 2015- 05 Dec 2019, Third
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period	0	0
Number of warrants, end of the period	7,215	0	0

Information on staff and remu_6

Information on staff and remuneration - Employee warrant programs (Details) - Employee warrant programs - item	Jan. 01, 2019	Jan. 01, 2016	Dec. 31, 2019
Disclosure of Information on staff and remuneration
Premium on prior days close price (as a percent)			10.00%
Expiration period of warrants			5 years
Vested period of warrants			3 years
Percentage of warrants vesting per month from the date of grant			2.78%
Percentage of warrants vesting after one year from the date of grant			0.33%
Percentage of warrants vesting after two year from the date of grant			0.33%
Percentage of warrants vesting after three year from the date of grant			0.33%
Frequency of exercises of warrants			4
Period for calculating the volatility rate	4 years	5 years
Vesting period for calculating the volatility rate	3 years
Percentage of exercise period for calculating the volatility	50.00%
Exercise period for calculating the volatility	2 years

Information on staff and remu_7

Information on staff and remuneration - Employee incentive programs 2010 and 2015 (Details)	12 Months Ended
	Dec. 31, 2019DKK (kr)EquityInstrumentsshares	Dec. 31, 2018DKK (kr)kr / shares	Dec. 31, 2017DKK (kr)	Apr. 30, 2020shares	Nov. 02, 2015shares
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 or vested	1,755,809
Number of warrants, expired	422,327
Number of warrants, forfeited	135,000
Proceeds from exercise of warrants | kr	kr 145,100,000	kr 127,400,000	kr 125,300,000
Number of warrants outstanding for exercise	42,359
The average traded share price on the exercise date | kr / shares		kr 124.6
2015 employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants authorized | shares				2,750,000
Number of warrants granted	2,788,595
Number of warrants, exercised or vested	321,475
Number of warrants, forfeited	819,332
Remaining number of warrants that can be granted | shares	780,737
Proceeds from exercise of warrants | kr	kr 35,500,000	kr 800,000	kr 0
Number of warrants outstanding for exercise | kr	1,647,788
The average traded share price on the exercise date | kr / shares		kr 151.7

Information on staff and remu_8

Information on staff and remuneration - 2019 Long-term incentive program (Details) kr in Millions	Jun. 13, 2019EquityInstruments	Dec. 31, 2019DKK (kr)EquityInstrumentsshares	Dec. 31, 2018EquityInstruments
Disclosure of Information on staff and remuneration
Number of warrants, beginning of the period		1,853,359	1,853,784
Number of warrants, end of the period		1,709,912	1,853,359
2019 Long-term incentive program
Disclosure of Information on staff and remuneration
Maximum percentage of PSUs expected to grant annually		10.00%
Vested period of PSUs		3 years
Number of shares issuable upon vesting of PSUs | shares		1
Share based compensation arrangement by Performance share Units, Initial value | kr		kr 3.2
Number of warrants, beginning of the period		0
Number of warrants granted	22,915	22,915	0
Number of warrants, exercised or vested		0	0
Number of warrants, forfeited		(3,150)	0
Number of warrants, end of the period		19,765	0

Information on staff and remu_9

Information on staff and remuneration - Effect on income statement (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of Information on staff and remuneration
Fair value of warrants and PSUs recognized in the income statement	kr 14,800
Fair value of PSUs recognized	500	kr 17,500	kr 19,300
Research and development expenses	12,191	13,919	11,291
Administrative expenses	2,573	3,555	8,020
Total	14,764	17,474	19,311
Executive Management
Disclosure of Information on staff and remuneration
Fair value of PSUs recognized	kr 3,200	kr 1,900	kr 6,300

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, 2019DKK (kr)	Dec. 31, 2018USD ($)	Dec. 31, 2018DKK (kr)		Dec. 31, 2017DKK (kr)		Dec. 31, 2019USD ($)
Other operating income
Government grants					kr 444		kr 630		kr 567
Gross proceeds from sale of future royalties and milestones					0		1,310,237		0
Royalty expenses regarding the above sale of future royalties and milestones		kr 176,900			0		(176,882)		0
Fee, advisors regarding the above sale of future royalties and milestones		34,500			0		(34,459)		0
Research funding					0		0		40
Other operating income					kr 444		1,099,526	[1]	607	[1]
Royalty payable (as percent)					13.50%
Repayment of royalty bond			$ 24.7	kr 157,600	kr 0	$ 24.7	kr 158,311	[1]	kr 176,360	[1]
Sanofi
Other operating income
Other operating income	$ 205	kr 1,310,200
Estimated effect of potential milestone | $											$ 15
Royalty payable (as percent)					13.00%
Royalty Pharma
Other operating income
Potential milestone receivable | $			$ 85
[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, 2019	Dec. 31, 2018		Dec. 31, 2017
Other operating income
Interest income from financial assets measured at amortized costs	kr 5,413	kr 4,263		kr 2,048
Fair value adjustments of Other investments and Marketable securities	2,846	0		74
Exchange rate adjustments	5,518	4,705		0
Dividend, Marketable securities	878	1,020		0
Total financial income	kr 14,655	kr 9,988	[1]	kr 2,122	[1]
[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, 2019	Dec. 31, 2018		Dec. 31, 2017
Financial expenses
Interest expenses from financial liabilities measured at amortized costs	kr 3,205	kr 15,080		kr 18,913
Amortization of financing costs	0	18,347		5,748
Fair value adjustments of Marketable securities	0	1,389		0
Loss on sale of Marketable securities	0	881		0
Other financial expenses	185	1,625		949
Exchange rate adjustments	0	0		7,899
Total financial expenses	kr 3,390	kr 37,322	[1]	kr 33,509	[1]
[1]	See note 1 to the consolidated financial statements.

Income tax benefit (Details)

Income tax benefit (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income tax benefit
Skattekreditordningen R&D tax credit,max	kr 25,000
Tax value of research and development expenses	5,500
Income tax receipt	5,999	kr 0	kr 5,500
Tax losses	kr 108,000	kr 0	kr 156,500

Income tax benefit - Reconcilia

Income tax benefit - Reconciliation of income tax (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Income tax benefit
Net result for the year before tax	kr (576,677)	kr 625,051		kr (279,913)
Corporate tax rate in Denmark	22.00%	22.00%		22.00%
Expected tax expenses/(benefit)	kr 126,869	kr (137,511)		kr 61,581
Adjustment for non-deductible expenses	(947)	(65)		(62)
Adjustment for non-taxable income	964	0		0
Adjustment for exercised warrants	(1,653)	(2,228)		(1,732)
Adjustment for R&D super deduction	1,676	1,427		0
Tax effect on exercise of warrants	6,092	8		688
Tax effect on expired warrants	175	151		(4,407)
Warrant - share price development	4,050	0		0
Change in tax assets (not recognized)	(132,090)	94,445		(50,568)
Total income tax expense/benefit	kr 5,136	kr (43,773)	[1]	kr 5,500	[1]
[1]	See note 1 to the consolidated financial statements.

Income tax benefit - Breakdown

Income tax benefit - Breakdown of unrecognized deferred tax assets (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Breakdown of unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely)	kr 681,531	kr 580,937		kr 872,670
Research and development expenses	460,007	136,755		210,148
Rights	35,849	35,849		43,019
Non-current assets	51,677	50,308		67,590
Liabilities	139,890	0		0
Other	70,306	79,986		104,377
Total temporary differences	kr 1,439,260	kr 883,835		kr 1,297,804
Corporate tax rate in Denmark	22.00%	22.00%		22.00%
Calculated potential deferred tax asset at local tax rate	kr 316,637	kr 194,444		kr 285,517
Write-down of deferred tax asset	(316,637)	(194,444)		(285,517)
Recognized deferred tax asset	0	0		0
Cash receivable relating to tax loss	7,101	1,195	[1]	5,500
Tax losses	kr 108,000	kr 0		kr 156,500
[1]	See note 1 to the consolidated financial statements.

Basic and diluted earnings pe_3

Basic and diluted earnings per share (Details) kr / shares in Units, kr in Thousands	12 Months Ended
	Dec. 31, 2019DKK (kr)EquityInstrumentskr / sharesshares	Dec. 31, 2018DKK (kr)EquityInstrumentskr / sharesshares		Dec. 31, 2017DKK (kr)EquityInstrumentskr / sharesshares
Basic and diluted result per share
Net result for the year | kr	kr (571,541)	kr 581,278	[1]	kr (274,413)	[1]
Net result used in the calculation of basic and diluted earnings/losses per share | kr	kr (571,541)	kr 581,278		kr (274,413)
Weighted average number of ordinary shares	33,866,709	30,754,948		27,918,271
Weighted average number of treasury shares	(64,223)	(64,223)		(64,223)
Weighted average number of ordinary shares used in the calculation of basic earnings per share	33,802,486	30,690,725		27,854,048
Weighted average number of ordinary shares used in the calculation of diluted earnings per share	33,802,486	30,696,404		27,854,048
Basic earnings/loss per share(DKK/share) | kr / shares	kr (16.91)	kr 18.94	[1]	kr (9.85)	[1]
Diluted earnings/loss per share (DKK/share) | kr / shares	kr (16.91)	kr 18.94	[1]	kr (9.85)	[1]
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	1,709,912	1,853,359		1,853,784
Out of which these warrants and PSUs are dilutive	0	72,000		0
Out of which these warrants and PSUs are anti-dilutive	1,709,912	1,781,359		1,853,784
2010 employee incentive program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	42,359	218,359		429,784
2015 employee incentive program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	1,647,788	1,635,000		1,424,000
Performance Share Units Under the LTIP 2019 Program [Member]
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	19,765	0		0
[1]	See note 1 to the consolidated financial statements.

Licenses, rights and patents (D

Licenses, rights and patents (Details) kr in Thousands	12 Months Ended
	Dec. 31, 2019DKK (kr)
Licenses, rights and patents
Additions	kr 2,480
Carrying amount	2,480
Carrying amount
Licenses, rights and patents
Carrying amount	kr 2,480

Property, plant and equipment_2

Property, plant and equipment (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Property, plant and equipment
Impairment loss	kr 0		kr 0		kr 0
Changes in property, plant and equipment
Beginning of period	13,650	[1]	14,855
End of period	13,457		13,650	[1]	14,855
Leasehold improvements
Changes in property, plant and equipment
Beginning of period	10,800		10,800
Transfer	(27)
Additions	3,918
Depreciation for the year	157		118
Retirements	918
End of period	13,773		10,800		10,800
Depreciation for the financial year has been charged as:
Research and development expenses	134		100
Administrative expenses	23		18
Total	157		118
Leasehold improvements | Carrying amount
Changes in property, plant and equipment
Beginning of period	186
End of period	3,913		186
Leasehold improvements | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	10,614		10,496
Transfer	(27)
Retirements	884
End of period	kr 9,860		10,614		10,496
Office building | Minimum
Property, plant and equipment
Useful lives of asset (in years)	5 years
Office building | Maximum
Property, plant and equipment
Useful lives of asset (in years)	13 years
Plant and machinery
Changes in property, plant and equipment
Beginning of period	kr 55,545		53,629
Transfer	0
Additions	3,419
Depreciation for the year	3,483		3,941
Retirements	1,811		832
End of period	57,153		55,545		53,629
Depreciation for the financial year has been charged as:
Research and development expenses	3,483		3,941
Administrative expenses	0
Total	3,483		3,941
Plant and machinery | Restatement
Changes in property, plant and equipment
Beginning of period	2,748
End of period			2,748
Plant and machinery | Carrying amount
Changes in property, plant and equipment
Beginning of period	13,650
End of period	13,457		13,650
Plant and machinery | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	41,895		38,774
Transfer	0
Retirements	1,682		820
End of period	kr 43,696		41,895		38,774
Plant and machinery | Minimum
Property, plant and equipment
Useful lives of asset (in years)	5 years
Plant and machinery | Maximum
Property, plant and equipment
Useful lives of asset (in years)	10 years
Other fixtures and fittings
Changes in property, plant and equipment
Beginning of period	kr 5,130		4,382
Transfer	27
Additions	7,630
Depreciation for the year	1,085		449
Retirements	286		542
End of period	12,501		5,130		4,382
Depreciation for the financial year has been charged as:
Research and development expenses	926		382
Administrative expenses	159		67
Total	1,085		449
Other fixtures and fittings | Restatement
Changes in property, plant and equipment
Beginning of period	1,290
End of period			1,290
Other fixtures and fittings | Carrying amount
Changes in property, plant and equipment
Beginning of period	1,794
End of period	8,337		1,794
Other fixtures and fittings | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	3,336		3,429
Transfer	27
Retirements	284		542
End of period	kr 4,164		3,336		3,429
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
Assets under construction
Changes in property, plant and equipment
Beginning of period	kr 0		0
Transfer	0
Additions	14,001
Depreciation for the year	0		0
Retirements	0		0
End of period	14,001		0		0
Depreciation for the financial year has been charged as:
Research and development expenses	0		0
Administrative expenses	0		0
Total	0		0
Assets under construction | Restatement
Changes in property, plant and equipment
Beginning of period	0
End of period			0
Assets under construction | Carrying amount
Changes in property, plant and equipment
Beginning of period	0
End of period	14,001		0
Assets under construction | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	0		0
Transfer	0
Retirements	0		0
End of period	kr 0		kr 0		kr 0
[1]	See note 1 to the consolidated financial statements.

Right-of-use-assets (Details)

Right-of-use-assets (Details)	12 Months Ended
	Dec. 31, 2019
Disclosure of quantitative information about right-of-use assets [line items]
Lease term	13 years
Office building
Disclosure of quantitative information about right-of-use assets [line items]
Terminable lease period	15 years
Equipment and vehicles
Disclosure of quantitative information about right-of-use assets [line items]
Extension option	true
Minimum | Equipment and vehicles
Disclosure of quantitative information about right-of-use assets [line items]
Lease term	3 years
Maximum | Equipment and vehicles
Disclosure of quantitative information about right-of-use assets [line items]
Lease term	4 years

Right-of-use-assets - Lease amo

Right-of-use-assets - Lease amounts (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	[1]	Dec. 31, 2017		Jan. 01, 2019
Right-of-use-assets
Right-of-use assets	kr 85,632	kr 0		kr 0		kr 10,048
Lease liabilities.
Current	7,692	0		0		7,118
Non-current	78,068	0		0		2,930
Lease liabilities	85,760					10,048
Depreciation charge of right-of-use-assets	8,818
Interest expense (included in finance costs)	621
Total cash outflow	8,689	kr 0		kr 0	[1]
Office building
Right-of-use-assets
Right-of-use assets	84,148					7,750
Lease liabilities.
Depreciation charge of right-of-use-assets	7,724
Other fixtures and fittings
Right-of-use-assets
Right-of-use assets	1,484					kr 2,298
Lease liabilities.
Depreciation charge of right-of-use-assets	kr 1,094
[1]	See note 1 to the consolidated financial statements.

Other investments (Details)

Other investments (Details) kr in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)	Dec. 31, 2017DKK (kr)	Dec. 31, 2019USD ($)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018USD ($)	Dec. 31, 2018DKK (kr)
Other investments
Other investments			kr 9,312	$ 5.3	kr 35,632	$ 5	kr 32,582	[1]
Ownership interest, Beta (as a percent)	1.60%	2.00%
Fair value of other investments					kr 35,600		kr 32,600
Fair value adjustments of Other investments and Marketable securities	kr 2,846	kr 0	kr 74
Fair value adjustments of currency conversion	kr 800
Gain (loss) recognized within Financial items		kr 0
[1]	See note 1 to the consolidated financial statements.

Trade receivables (Details)

Trade receivables (Details) kr in Millions	12 Months Ended
	Dec. 31, 2019DKK (kr)
Trade receivables
Overdue trade receivables	kr 0
Trade Receivables Related To Milestone Payments	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

Prepaid expenses (Details)

Prepaid expenses (Details) - DKK (kr) kr in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Prepaid expenses
Prepaid expense	kr 30.8	kr 19	kr 11.7

Other receivables (Details)

Other receivables (Details) - DKK (kr) kr in Thousands	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Other receivables
VAT	kr 5,437	kr 2,980
Other	2,498	388
Total other receivables	kr 7,935	kr 3,368	[1]	kr 4,979
[1]	See note 1 to the consolidated financial statements.

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) - DKK (kr) kr in Thousands	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017	[1]	Dec. 31, 2016	[1]
Cash and cash equivalents
Cash and cash equivalents	kr 1,081,060	kr 860,635	[1]	kr 588,718		kr 323,330
DKK
Cash and cash equivalents
Cash and cash equivalents	732,405	343,585
USD
Cash and cash equivalents
Cash and cash equivalents	306,748	96,526
EUR
Cash and cash equivalents
Cash and cash equivalents	kr 41,907	kr 420,524
[1]	See note 1 to the consolidated financial statements.

Share Capital (Details)

Share Capital (Details)

Dec. 13, 2019DKK (kr)

Nov. 22, 2019DKK (kr)

Sep. 13, 2019DKK (kr)

Sep. 05, 2019DKK (kr)

Aug. 23, 2019DKK (kr)

Jun. 14, 2019DKK (kr)

Jun. 13, 2019EquityInstruments

May 28, 2019DKK (kr)

Apr. 05, 2019DKK (kr)

Mar. 20, 2019DKK (kr)

Mar. 15, 2019DKK (kr)

Dec. 14, 2018DKK (kr)

Sep. 14, 2018DKK (kr)

Nov. 20, 2017DKK (kr)

Sep. 22, 2017DKK (kr)

Sep. 01, 2017DKK (kr)

Aug. 18, 2017DKK (kr)

Aug. 14, 2017DKK (kr)

Jun. 15, 2017DKK (kr)

May 30, 2017DKK (kr)

Apr. 13, 2017DKK (kr)

Mar. 23, 2017DKK (kr)

Dec. 08, 2016DKK (kr)

Nov. 25, 2016DKK (kr)

Nov. 17, 2016DKK (kr)

Sep. 29, 2016DKK (kr)

Sep. 23, 2016DKK (kr)

Sep. 06, 2016DKK (kr)

Jun. 16, 2016DKK (kr)

May 26, 2016DKK (kr)

Apr. 14, 2016DKK (kr)

Mar. 30, 2016DKK (kr)

Dec. 04, 2015DKK (kr)

Nov. 13, 2015DKK (kr)

Nov. 04, 2015DKK (kr)

Sep. 26, 2015DKK (kr)

Sep. 08, 2015DKK (kr)

Jun. 20, 2015DKK (kr)

Jun. 02, 2015DKK (kr)

Apr. 11, 2015DKK (kr)

Mar. 21, 2015DKK (kr)

Dec. 31, 2019DKK (kr)EquityInstrumentsshares

Dec. 31, 2018DKK (kr)EquityInstrumentsshares

Dec. 31, 2017DKK (kr)EquityInstruments

Disclosure of classes of share capital [line items]

Share capital at beginning of period

kr 30,786,827

[1]

kr 30,751,327

kr 26,142,365

Capital increase during the period

kr 30,975

kr 158,225

kr 59,171

kr 3,975,000

kr 16,500

kr 89,315

kr 45,539

kr 18,250

kr 802,859

kr 72,000

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

36,054,661

30,786,827

[1]

30,751,327

Shares issued

kr 30,975

kr 158,225

kr 59,171

3,975,000

kr 16,500

kr 89,315

kr 45,539

kr 18,250

802,859

kr 72,000

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

Changes in share capital

697,613,000

2,862,000

573,650,000

Proceeds from issuance of shares (2017: IPO)

545,600,000

85,600,000

645,145,000

0

[1]

567,076,000

[1]

Expenses related to the private offering

kr 14,000,000

kr 0

kr 14,444,000

kr 100,000

kr 71,261,000

Treasury shares (in shares) | shares

64,223

64,223

Treasury shares held (as a percent)

0.20%

0.20%

Fair value of treasury shares

kr 15,100,000

kr 5,300,000

Total outstanding warrants | EquityInstruments

1,709,912

1,853,359

1,853,784

2019 Long-term incentive program

Disclosure of classes of share capital [line items]

Number of performance share units PSUs, granted | EquityInstruments

22,915

22,915

0

Total outstanding warrants | EquityInstruments

19,765

0

[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)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018USD ($)	Dec. 31, 2018DKK (kr)		Dec. 31, 2017DKK (kr)		Dec. 31, 2019USD ($)
Royalty bond
Other income					kr 444		kr 1,099,526	[1]	kr 607	[1]
Cash flows regarding royalty bond
Royalty bond payable					0		135,734
Repayment of royalty bond			$ (24.7)	kr (157,600)	0	$ (24.7)	(158,311)	[1]	(176,360)	[1]
Amortization of financing costs					0		18,347		5,748
Exchange rate adjustments					0		4,230
Royalty bond payable					kr 0		kr 0		kr 135,734
Sanofi
Royalty bond
Other income	$ 205	kr 1,310,200
Estimated effect of potential milestone | $											$ 15
Royalty Pharma
Royalty bond
Potential milestone receivable | $			$ 85
[1]	See note 1 to the consolidated financial statements.

Deferred revenue (Details)

Deferred revenue (Details) kr in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)		Dec. 31, 2017DKK (kr)	[1]	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)
Deferred revenue
Contract liabilities at beginning of period		kr 0
Customer payment received		177,315	kr 0
Revenue recognized during the year		(37,425)	0
Total deferred revenue		139,890	0				kr 139,890	kr 0
Non-current deferred revenue							83,639	0
Current deferred revenue							kr 56,251	kr 0
Contract liabilities at end of period		139,890	0
Upfront non refundable payment recognized		41,333	kr 37,977	[1]	kr 136,322
Expected
Deferred revenue
Milestone payments Recognized for the period		56,000
Alexion
Deferred revenue
Upfront non-refundable payment received	$ 25	177,300
Upfront non refundable payment recognized		kr 37,400
[1]	See note 1 to the consolidated financial statements.

Other liabilities (Details)

Other liabilities (Details) - DKK (kr) kr in Thousands	Dec. 31, 2019	Dec. 31, 2018		Dec. 31, 2017
Other liabilities
Severance payment	kr 170	kr 925
Employee benefits	36,082	34,971
Royalty payable to third party	6,843	6,682
Investment in Beta Bionics	0	22,803
Other payables	29,949	15,483
Total other liabilities	kr 73,044	kr 80,864	[1]	kr 41,454
[1]	See note 1 to the consolidated financial statements.

Contingent assets, liabilitie_2

Contingent assets, liabilities and other contractual obligations (Details) - Dec. 31, 2019 kr in Millions, $ in Millions	USD ($)	DKK (kr)
With in 1 year
Contractual obligations:
Contractual obligations		kr 318.9
Later than one year but not later than two years
Contractual obligations:
Contractual obligations		230.2
Later than two year but not later than three years
Contractual obligations:
Contractual obligations		kr 88.8
Sanofi
Contractual obligations:
Estimated effect of potential milestone | $	$ 15

Financial risks (Details)

Financial risks (Details) kr in Thousands, $ in Millions	Sep. 06, 2018USD ($)	Sep. 06, 2018DKK (kr)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018USD ($)	Dec. 31, 2018DKK (kr)		Dec. 31, 2017DKK (kr)	[1]
Financial risks
Repayment of royalty bond	$ 24.7	kr 157,600	kr 0	$ 24.7	kr 158,311	[1]	kr 176,360
Cash			kr 306,700		96,500
Average weighted duration of the bond portfolio			3 years
USD
Financial risks
Effect			kr 30,657		kr 9,627
Percentage of reasonably possible decrease			10.00%		10.00%
[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, 2019	Jan. 01, 2019	Dec. 31, 2018		Dec. 31, 2017
Contractual maturity (Liquidity risk)
Trade payables	kr 57,533		kr 32,652	[1]	kr 29,428
Lease liabilities	85,760	kr 10,048
Other liabilities	73,044		80,864	[1]	kr 41,454
Liquidity risk
Contractual maturity (Liquidity risk)
Trade payables	57,533		32,652
Lease liabilities	85,760
Other liabilities	73,044		80,864
Total financial liabilities	216,337		113,516
Liquidity risk | Less than 12 months
Contractual maturity (Liquidity risk)
Trade payables	57,533		32,652
Lease liabilities	7,692
Other liabilities	73,044		80,864
Total financial liabilities	138,269		113,516
Liquidity risk | 1 to 5 years
Contractual maturity (Liquidity risk)
Trade payables	0		0
Lease liabilities	23,359
Other liabilities	0		0
Total financial liabilities	23,359		0
Liquidity risk | After 5 years
Contractual maturity (Liquidity risk)
Trade payables	0		0
Lease liabilities	54,709
Other liabilities	0		0
Total financial liabilities	kr 54,709		kr 0
[1]	See note 1 to the consolidated financial statements.

Financial risks - Fair value me

Financial risks - Fair value measurement of financial instruments (Details) kr in Thousands	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)	Sep. 30, 2018
Categories of financial instruments
Financial assets at amortized cost	kr 1,098,758	kr 870,039
Financial assets measured at fair value through profit or loss	335,080	331,193
Categories of financial instruments
Financial liabilities measured at amortized cost	216,337	113,516
Lease liabilities
Categories of financial instruments
Financial liabilities measured at amortized cost	85,760	0
Royalty bond
Categories of financial instruments
Fixed Interest Rate			9.375
Trade payables
Categories of financial instruments
Financial liabilities measured at amortized cost	57,533	32,652
Other liabilities
Categories of financial instruments
Financial liabilities measured at amortized cost	73,044	80,864
Deposits
Categories of financial instruments
Financial assets at amortized cost	9,012	2,762
Trade receivables
Categories of financial instruments
Financial assets at amortized cost	751	3,274
Other receivables
Categories of financial instruments
Financial assets at amortized cost	7,935	3,368
Cash and cash equivalents
Categories of financial instruments
Financial assets at amortized cost	1,081,060	860,635
Marketable securities
Categories of financial instruments
Financial assets measured at fair value through profit or loss	299,448	298,611
Other investments
Categories of financial instruments
Financial assets measured at fair value through profit or loss	kr 35,632	kr 32,582

Related parties (Details)

Related parties (Details)	Dec. 31, 2019Voteitem
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, 2019	Dec. 31, 2018		Dec. 31, 2017
Adjustments for non-cash items
Depreciation	kr 13,682	kr 4,508		kr 4,757
Warrant compensation expenses	14,763	17,474		19,311
Income tax income	(5,999)	0		(5,500)
Income tax expense	614	43,773		0
Financial income	(9,306)	0		(2,048)
Financial expenses	3,390	19,736		25,610
Non paid royalty expenses regarding sale of future royalties and milestones	0	6,575		0
Exchange rate adjustments	(7,937)	9,864		(17,596)
Total adjustments	kr 9,207	kr 101,930	[1]	kr 24,534	[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, 2019	Dec. 31, 2018		Dec. 31, 2017
Change in working capital
(Increase)/decrease in receivables	kr (21,059)	kr (471)		kr 1,306
Increase/(decrease) in payables	17,061	13,256		(12,610)
Adjustment for non-cash investing activities	(7,932)	0		0
Cash outflow for investment in Beta Bionics	22,803	0		0
Change in working capital	kr 10,873	kr 12,785	[1]	kr (11,304)	[1]
[1]	See note 1 to the consolidated financial statements.

Significant events after the _2

Significant events after the balance sheet date (Details) $ in Millions	Mar. 13, 2020USD ($)
Valeritas Holdings, Inc
Significant events after the balance sheet date
Cash transferred	$ 23