Zealand Pharma A/S (ZLDPF) 6-K 12 Mar 21 2020 FY Growing as a leader in peptide therapeutics Company reg. no. 20045078 Zealand Pharma Annual Report 2020 Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020
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, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY

Consolidated income statement

Consolidated income statement - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated income statement
Revenue	kr 353,314	kr 41,333	kr 37,977
Cost of goods sold	(90,565)	0	0
Royalty expenses	0	(415)	(3,356)
Gross margin	262,749	40,918	34,621
Research and development expenses	(604,081)	(561,423)	(438,219)
Sales and marketing expenses	(285,256)	0	0
Administrative expenses	(202,770)	(67,881)	(43,543)
Operating expenses	(1,092,107)	(629,304)	(481,762)
Other operating items, net	36,997	444	1,099,526
Operating result	(792,361)	(587,942)	652,385
Financial income	2,022	14,655	9,988
Financial expenses	(49,314)	(3,390)	(37,322)
Result before tax	(839,653)	(576,677)	625,051
Income tax (expense) benefit	(7,076)	5,136	(43,773)
Net result for the period	kr (846,729)	kr (571,541)	kr 581,278
Earnings/loss per share - DKK
Earnings/(loss) per share - basic (DKK)	kr (22.07)	kr (16.91)	kr 18.94
Earnings/(loss) per share - diluted (DKK)	kr (22.07)	kr (16.91)	kr 18.94
Net result attributable to shareholders of Zealand Pharma A/S	kr (846,729)	kr (571,541)	kr 581,278

Consolidated statements of comp

Consolidated statements of comprehensive income (loss) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated statements of comprehensive income (loss)
Net result for the year	kr (846,729)	kr (571,541)	kr 581,278
Items that will be reclassified to income statement when certain conditions are met:
Exchange differences on translation of foreign operations	8,977	0	0
Comprehensive result for the year	(837,752)	(571,541)	581,278
Total comprehensive income attributable to shareholders of Zealand Pharma A/S	kr (837,752)	kr (571,541)	kr 581,278

Consolidated statements of fina

Consolidated statements of financial position kr in Thousands, $ in Millions	Dec. 31, 2020DKK (kr)	Dec. 31, 2019DKK (kr)
Non-current assets
Intangible assets	kr 57,485	kr 2,480
Property, plant and equipment	85,040	39,708
Right-of-use assets	127,998	85,632
Deposits	16,650	9,012
Corporate tax receivable	1,268	0
Prepaid expenses	13,117	0
Deferred tax assets	8,370	0
Other investments	32,333	35,632
Total non-current assets	342,261	172,464
Current assets
Inventories	65,040	0
Trade receivables	46,484	751
Prepaid expenses	35,156	30,755
Corporate tax receivable	5,500	7,101
Other receivables	9,942	7,935
Marketable securities	297,345	299,448
Cash and cash equivalents	960,221	1,081,060
Total current assets	1,419,688	1,427,050
Total assets	1,761,949	1,599,514
Liabilities and equity
Share capital	39,800	36,055
Share premium	3,470,787	2,650,142
Currency translation reserve	8,977	0
Accumulated loss	(2,290,253)	(1,443,524)
Shareholders' equity	1,229,311	1,242,673
Deferred revenue	44,587	83,639
Other liabilities	16,744	0
Lease liabilities	116,047	78,068
Non-current liabilities	177,378	161,707
Trade payables	70,384	57,533
Corporate tax payables	30,394	614
Lease liabilities	14,072	7,692
Deferred revenue	53,182	56,251
Discount and rebate liabilities	36,673	0
Other liabilities	150,555	73,044
Current liabilities	355,260	195,134
Total liabilities	532,638	356,841
Total shareholder' equity and liabilities	kr 1,761,949	kr 1,599,514

Consolidated statements of cash

Consolidated statements of cash flows - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated statements of cash flows
Net result for the year	kr (846,729)	kr (571,541)	kr 581,278
Bargain purchase	(36,395)	0	0
Adjustments for other non-cash items	143,138	9,207	101,930
Change in working capital	97,818	10,873	12,785
Interest received	895	5,413	4,263
Interest paid	(4,562)	(3,390)	(16,705)
Deferred revenue	(42,881)	139,890	0
Sale of future royalties and milestones	0	0	(1,105,471)
Income tax paid/received	0	93	(39,500)
Cash flow from operating activities	(688,716)	(409,455)	(461,420)
Acquisition of Valeritas business, net of cash acquired	(167,791)	0	0
Transfer from restricted cash related to royalty bond	0	0	6,124
Sale of future royalties and milestones	0	0	1,275,802
Royalty expenses regarding sale of future royalty and milestones	0	0	(170,331)
Change in deposits	(3,972)	(6,250)	(33)
Purchase of other investments and marked securities	0	(22,803)	(225,719)
Purchase of property, plant and equipment	(25,044)	(21,036)	(4,038)
Purchase of intangible assets	0	(2,480)	0
Sale of property, plant and equipment	0	25	0
Dividends on securities	0	878	1,020
Cash flow from investing activities	(196,807)	(51,666)	882,925
Proceeds from issuance of shares related to exercise of share based compensation	41,363	52,468	2,884
Proceeds from issuance of shares	791,503	645,145	0
Costs related to issuance of shares	(42,706)	(14,444)	(22)
Lease installments	(29,219)	(8,689)	(158,311)
Cash flow from financing activities	760,941	674,480	(155,449)
Decrease/increase in cash and cash equivalents	(124,582)	213,359	266,056
Cash and cash equivalents at beginning of period	1,081,060	860,635	588,718
Exchange rate adjustments	3,743	7,066	5,861
Cash and cash equivalents at end of period	kr 960,221	kr 1,081,060	kr 860,635

Consolidated statements of chan

Consolidated statements of changes in shareholders' equity - DKK (kr) kr in Thousands	Share capital	Share premium	Translation reserve	Retained losses	Total
Equity at beginning of year at Dec. 31, 2017	kr 30,751	kr 1,937,179	kr 0	kr (1,453,261)	kr 514,669
Other comprehensive income	0	0	0	0	0
Net result for the year	0	0	0	581,278	581,278
Share based compensation	0	17,472	0	0	17,472
Capital increases	36	2,826	0	0	2,862
Equity at end of year at Dec. 31, 2018	30,787	1,957,477	0	(871,983)	1,116,281
Other comprehensive income	0	0		0	0
Net result for the year	0	0	0	(571,541)	(571,541)
Share based compensation	0	14,764	0	0	14,764
Capital increases	5,268	692,345	0	0	697,613
Cost related to capital increases	0	(14,444)	0	0	(14,444)
Equity at end of year at Dec. 31, 2019	36,055	2,650,142	0	(1,443,524)	1,242,673
Other comprehensive income	0	0	8,977	0	8,977
Net result for the year	0	0	0	(846,729)	(846,729)
Share based compensation	0	30,485	0	0	30,485
Capital increases	3,745	832,866	0	0	836,611
Cost related to capital increases	0	(42,706)	0	0	(42,706)
Equity at end of year at Dec. 31, 2020	kr 39,800	kr 3,470,787	kr 8,977	kr (2,290,253)	kr 1,229,311

Significant accounting policies

Significant accounting policies, and significant accounting estimates and assessments	12 Months Ended
	Dec. 31, 2020
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 (class D). The Board of Directors considered and approved the 2020 Annual Report of Zealand on March 10, 2021. The Annual Report will be submitted to the shareholders of Zealand for approval at the Annual General Meeting on April 15, 2021. The consolidated financial statements are presented on a historical cost basis, except for certain 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 2019 and 2018 are shown in brackets if not indicated otherwise. Implementation of new and revised standards and interpretations A few amendments apply for the first time in 2020, but do not have an impact on the consolidated financial statements of the Group. Amendments to IFRS 3: Definition of a Business The amendment to IFRS 3 clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Furthermore, it clarified that a business can exist without including all of the inputs and processes needed to create outputs. Amendments to IFRS 7, IFRS 9 and IAS 39: Interest Rate Benchmark Reform The amendments to IFRS 7, IFRS 9 and IAS 39 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument. Amendments to IAS 1 and IAS 8: Definition of Material The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. Standards and interpretations issued, but 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. Accounting policies The Group has applied new accounting policies to the following areas as a consequence of the acquisition of the Valeritas business as disclosed in note 29. · Revenue (extended) · Cost of goods sold · Sales and marketing expenses (extended) · Impairment testing (Extended) · Inventories · Trade receivables write-down (extended) · Discount and rebate provision · Business combinations The accounting policies are apart from the line items above 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. Functional currency A functional currency is determined for each Group entity.The functional currency is the currency used in the primary financial environment in which the individual Group entity operates. Foreign currency translation Transactions denominated in currencies other than the transacting entity's functional currency 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. Recognition in the consolidated financial statements On preparation of the consolidated financial statements, the income statements of entities with a functional currency different from DKK are translated at the average exchange rate for the period, and balance sheet items are translated at the exchange rate ruling at the reporting date. Foreign exchange differences arising on translation of the equity of foreign entities and on translation of receivables considered part of net investment are recognised directly in other comprehensive income. Foreign exchange differences arising on the translation of income statements from the average exchange rate for the period to the exchange rate ruling at the reporting date are also recognised in other comprehensive income. Adjustments are presented under a separate translation reserve in equity. Materiality in financial reporting In preparing the Annual Report, Management seeks to improve the information value of the consolidated financial statements, the notes to the statements and other measures disclosed by presenting the information in a way that supports the understanding of the Group’s performance in the reporting period. This objective is achieved by presenting fair transactional aggregation levels on line items and other financial information, emphasising information that is considered of material importance to the user and making relevant rather than generic descriptions throughout the Annual Report. All disclosures are made in compliance with the International Financial Reporting Standards, the Danish Financial Statements Act and other relevant regulations, ensuring a true and fair view throughout the Annual Report. Consolidated financial statements Income statement The expenses recognized in the income statement is presented as an analysis using a classification based on their function. Cost of goods sold Cost of goods sold includes raw materials, labor costs, manufacturing overhead expenses and reserves for anticipated scrap and inventory obsolescence. 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 line of business, 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 flowssolely 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 securitiescategorized as equity instruments are held for trading and classified at fair value through profit and loss. 3. Equity investments. These investments are measured at fair value through the profit and loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the income statement are initially recognized at fair value, plus transaction costs. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the operating result 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. The cash flow statement cannot be derived directly from the balance sheet and income statement. 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 operating result adjusted for depreciation and amortization, 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, net cashflow from acquisition of Valertias activities, 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 ordinary shares, proceeds from issuance of shares related to exercise of sharebased compensation. and related costs, finance lease installments and loan financing. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Cash and cash equivalents are instruments with original maturities of 90 days or less. The Company does not have any cash equivalents for the years ended December 31, 2020 and 2019. Information on COVID-19 Our business, operations and clinical studies were, of course, impacted by the effects of COVID-19. Although our clinical studies continued without interruption during 2020, there were delays and increased total costs arising from the implications of COVID-19. However, we have not recognized any write-offs, impairments of assets, or losses to onerous contracts due to COVID-19. The impairment of V-Go IP as explained in note 12 was due to Managements decision to allocate resources to support future product launches while limiting the investment in the V-Go product. The COVID-19 pandemic is also having an effect on other aspects of our business, including: our third-party manufacturers, and other third parties; albeit with no material effect or impact. The COVID-19 pandemic may, in the long-term, affect the productivity of our staff; our ability to attract, integrate, manage and retain qualified personnel or key employees; our global supply chains and relationships with vendors and other parties; significant disruption of global financial markets; and reduced ability to secure additional funding. We continuously monitor the COVID-19 pandemic and its potential impact on our business and financials. Significant accounting estimates and judgments The preparation of the consolidated financial statements requires Management to make judgments and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. 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 and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertainties that may result in deviations in actual results compared with estimates. Please refer to the table below to see in which note the accounting estimates and judgements are presented. Notes including management’s estimates and judgements Estimates Judgements 2 – Revenue X X 6 – Employee incentive programs X 13 – Encycle Therapeutics, Inc. acquisition X 25 – Discount and rebate provision X X 29 – Business Combinations X X Additional description of Management estimates and judgements made are described below Revenue recognition (management estimate and judgement) Revenue comprises license payments, milestone payments , product revenue 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 Intellectual Property (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. Discount and rebate (management estimate and judgement) Provisions regarding sales rebates and discounts granted to government agencies, wholesalers, retail pharmacies, managed care and other customers are recorded at the time the related revenues are recorded or when the incentives are offered. For both managed care rebates and the medicare part D rebates, the key assumptions relate to the rebate percentages by each pharmacy as determined in each pharmacy's contract with the Company and forecasted number of prescriptions that will be filled by each pharmacy (referred to as payor mix). For co-pay card redemptions, the key assumptions relate to expected settlement rate for sales units remaining in the channel that have yet to be presented under co-pay terms. These assumptions are made based on historical actuals, which are used to estimate forecasted trends, including payor mix and settlement rates, which are used to estimate the expected settlement of managed care rebates and medicare part D rebates, and co-pay card redemption, and the specific terms in the individual agreements. Unsettled rebates are recognized as provisions when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognized as provisions. Please refer to note 25 for further information on sales rebates and provisions. 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 did not acquire 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 Zealand 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. The acquistion 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. Business Combinations (management estimates and judgements) In applying the acquisition method of accounting, estimates are an integral part of assessing fair values of several identifiable assets acquired and liabilities assumed, as observable market prices are typically not available. Valuation techniques where estimates are applied typically relate to determining the present value of future uncertain cash flows or assessing other events in which the outcome is uncertain at the date of acquisition. More significant estimates are typically applied in accounting for Intellectual properties, customer relationships, trade receivables, deferred tax and debt. The calculation of the fair value of intangible assets is most sensitive to the revenue and gross margin growths. Please refer to note 29 for further information on Business Combinations. As a result of the uncertainties inherent in fair value estimation, measurement period adjustments may be applied.

Revenue

Revenue	12 Months Ended
	Dec. 31, 2020
Revenue
Revenue	Note 2 - Revenue Accounting policies Revenue comprises license payments, milestone payments, royalty income and sale of goods. 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. 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. Zealand applies the output based method (budget cost) when determining the timing of satisfaction of performance obligations as the development services are performed by an indeterminate number of acts over the development timeline and accordingly, time elapsed and budget costs as an output measure is considered to be the unit which most appropriately depicts the transfer of control of services to Alexion In total. Trade receivables are recognised as services delivered are invoiced to the customer and are not adjusted for any financing components as credit terms are short - typically between 14 to 60 days - and the financing component therefore insignificant. Where services delivered have yet to be invoiced and invoices on services received from vendors have still to be received, contract assets and accrued cost of services are recognised at the reporting date. Revenue from sale of goods Revenue from sale of goods is recognized at a point in time when control of the goods are transferred to the customer and recorded net of adjustments for managed care rebates, wholesale distributions fees, cash discounts, prompt pay discounts, and co-pay card redemptions, all of which are established at the time of sale. In order to prepare the consolidated financial statements, the company is required to make estimates regarding the amounts earned or to be claimed on the related product sales, including the following: · Managed care and Medicare rebates, which are based on the estimated end user pay or mix and related contractual rebates; · distribution fees, prompt pay discounts and other discounts, which are recorded based on specified payment terms, and which vary by customer and other incentive programs; and · Co-pay card redemption charges which are based on the net transaction costs of prescriptions filled via a company-subsidized card program and other incentive programs. Zealand believes rebates and co-pay card redemptions related to sales in the U.S. are complex in nature and establishing appropriate provisions requires assessment of multiple factors as well as significant judgement and estimation by management as not all conditions are known at the time of sale. The Group has concluded that it is the principal in this revenue arrangements since it controls the goods before transferring them to the customer. Return Reserve We record allowances for product returns as a reduction of revenue at the time product sales are recorded. Several factors are considered in determining whether an allowance for product returns is required, including the customers' return rights and our historical experience with returns and the amount of product sales in the distribution channel not consumed by patients and subject to return. Management replies on historical return rates to estimate returns. In the future, as any of these factors and/or the history of product returns change, adjustments to the allowance for product returns will be reflected Revenue from Alexion In 2020, we recognized DKK 42.9 million (2019: 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 97.8 million is accounted for as deferred revenue at December 31, 2020. In 2019, DKK 0.6 million of other revenue is recognized related to other projects with Alexion. No revenue was recognized in 2018. Revenue from Sanofi No revenue was recognized in 2020 or 2019.In 2018, we recognized DKK 24.9 million as royalty income, reflecting milestones related to sales of Lyxumia® of EUR 9.5 million and sales of Soliqua ® 100/33 of EUR 23.8 million. No milestone revenue was received. Revenue from Boehringer Ingelheim (BI) In 2020, we recognized DKK 149.1 million as income from milestone payments from BI related to the initiation of the Phase 2 trial for the long-acting GLP-1/glucagon. No revenue was recognized from BI in 2019 or 2018, as no milestone event was achieved. Revenue from sale of goods In 2020, we recognized DKK 161.3 million as net sales from goods sold generated from our V-Go product. The rights to the V-Go product was acquired on April 2, 2020 as part of the business combination described in note 29. Thus Revenue from sale of the V-Go product recognized in 2020 solely relates to the period April 2 - December 31. Revenue from other agreements In 2020, we recognized zero 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 counterparties relating to two Material Transfer Agreements. In 2018, we recognized DKK 3.3 million in revenue from milestone payments from Protagonist Therapeutics in connection with the start of Phase 2 with the novel hepcidin mimetic PTG-300. 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. Information about Geographical Areas Net revenue in Germany comprise DKK 149.1 million in milestone revenue whereas net sales in US comprise DKK 204.2 million including license revenues and sale of goods. No other country accounts for more than 10% of the net total sales. In 2020 we had 3 significant customers with revenue from sale of goods. Customer A, amounted to DKK 60.6 million (2019: DKK 0 million), Customer B amounted to DKK 48.4 million (2019: DKK 0 million) and Customer C DKK 37.7 million (2019: DKK 0 million). Of the Company's non-current assets, which comprise intangible assets, property, plant and equipment, right-of-use assets and prepayments, DKK 184.0 million is located in Denmark and DKK 71.1 million in US. Recognized revenue can be specified as follows for all agreements: DKK thousand 2020 2019 2018 Boehringer Ingelheim International GmbH 149,120 0 0 Alexion Pharmaceuticals Inc. 42,881 38,021 0 Undisclosed counterpart 0 3,312 9,845 Protagonist Therapeutics, Inc. 0 0 3,274 Total license and milestone revenue 192,001 41,333 13,119 Sanofi—Aventis Deutschland GmbH 0 0 24,858 Total royalty revenue 0 0 24,848 V-Go gross sales 303,658 0 0 Reductions* (142,345) 0 0 Total revenue from sale of goods 161,313 0 0 Total revenue 353,314 41,333 37,977 Royalty revenue can be specified as follows: Soliqua ® 0 0 17,786 Lyxumia ® 0 0 7,072 Total royalty revenue 0 0 24,848 Total revenue recognized over time 42,881 38,021 0 Total revenue recognized at a point in time 310,433 3,312 37,977 * Discounts and rebates are specified below and discussed further in note 25.. Sales gross-to-net reconciliation DKK thousand 2020 2019 2018 V-Go gross sales 303,658 0 0 Customer and Contractual price reductions (133,924) 0 0 Returns and sales reductions (8,421) 0 0 Net sales 161,313 0 0 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 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. , 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 was DKK 177.3 million and the cash flow from financing activities was DKK 85.6 million. In 2020 revenue of DKK 42.9 million was recognized. 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 judgement applied (performance obligations and revenue recognition) 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. Judgments and estimates in respect of output is made when entering the agreement and is based on research and development budgets and plans. The planned service periods (output) and budget costs for the respective research and development projects are assessed on an ongoing basis. If the expected service period is changed significantly, this will require a reassessment. All Zealand's revenue-generating transactions have been subject to such evaluation by management. 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. Zealand pays 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 345 million was outstanding at December 31, 2020, 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. 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. 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.

Royalty expenses

Royalty expenses	12 Months Ended
	Dec. 31, 2020
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, the royalty expenses related to royalties from sales of Lyxumia ® and Soliqua ® 100/33 and milestone payments received from Sanofi. The arrangement was settled in 2018 as part of transferring the right to future royalty and milestone payments under the Sanofi agreement.

Research, development, sales, m

Research, development, sales, marketing and administrative expenses	12 Months Ended
	Dec. 31, 2020
Research, development, sales, marketing and administrative expenses
Research, development, sales, marketing and administrative expenses	Note 4 - Research, development, sales, marketing and administrative expenses Accounting policies Research expenses comprise salaries, share-based compensation, 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, share-based compensation, 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 2020, 2019 or 2018. DKK thousand 2020 2019 2018 Staff costs (note 6) (204,210) (178,089) (153,601) Depreciation and impairment losses, property, plant and equipment and right-of-use assets (note 14,15) (17,417) (4,422) (4,423) Other external research and development costs (382,454) (378,912) (280,195) Total research and development costs (604,081) (561,423) (438,219) Sale and Marketing expenses Sales and marketing expenses include expenses for sales personnel and expenses related to company premises in the US used for sales activities. Other significant expenses include product demonstration samples, trade show expenses, professional fees for our contracted customer support center and other consultants, insurance, facilities and information technology expenses. Overhead expenses have been allocated to sales and marketing expenses according to the number of employees in each department, based on the respective employees' associated undertakings. Administrative expenses Administrative expenses include expenses for administrative personnel, expenses related to company premises, depreciation on tangible assets and 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, 2020
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 2020 2019 2018 Audit 5,941 1,847 1,661 Audit-related services and other assurance engagements 1,002 1,731 718 Tax advice 0 106 Other 12 0 Total fees 6,943 3,590 2,485 The fee for audit-related services and other assurance engagements and other services provided to the Group by EY godkendt Revisionspartnerselskab in 2020 consisted of Audit of Annual Report, Audit of 20-F SEC filing, including SOX 404b attestation procedures, quarterly reviews, other auditor’s reports on various statements for public authorities, and other accounting advisory services. (Deloitte Statsautoriseret Revisionspartnerselskab in 2019 and 2018)

Information on staff and remune

Information on staff and remuneration	12 Months Ended
	Dec. 31, 2020
Information on staff and remuneration
Information on staff and remuneration	Note 6 - Information on staff and remuneration DKK thousand 2020 2019 2018 Total staff costs can be specified as follows: Wages and salaries 337,295 175,104 141,661 Share based payment costs 30,485 14,764 17,474 Pension schemes (defined contribution plans) 16,716 13,430 11,065 Other payroll and staff-related costs 37,241 14,932 9,783 Total 421,737 218,230 179,983 The amount is charged as: Research and development expenses 204,210 178,089 153,601 Sale and marketing expenses 130,568 0 0 Administrative expenses 78,639 40,141 26,382 Cost of goods sold 3,713 0 0 Inventory 4,607 0 0 Total 421,737 218,230 179,983 Average number of employees 297 173 146 2020 2019 2018 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 750 100 850 750 100 850 650 100 750 Kirsten Drejer 1 500 0 500 467 0 467 200 0 200 Alain Munoz 400 50 450 400 50 450 300 50 350 Michael Owen 400 50 450 400 50 450 300 50 350 Bernadette Mary Connaughton 400 33 433 267 0 267 0 0 0 Jeffrey Berkowitz 400 50 450 267 33 300 0 0 0 Leonard Kruimer 400 150 550 267 100 367 0 0 0 Jens Peter Stenvang² 400 0 400 400 0 400 300 0 300 Gertrud Koefoed Rasmussen² 267 0 267 0 0 0 0 0 0 Frederik Barfoed Beck² 267 0 267 0 0 0 0 0 0 Iben Louise Gjelstrup² 267 0 267 0 0 0 0 0 0 Hanne Heidenheim Bak² 133 0 133 400 0 400 300 0 300 Rosemary Crane⁴ 0 0 0 133 17 150 333 50 383 Catherine Moukheibir⁴ 0 0 0 133 50 183 300 150 450 Helle Haxgart² , ³ 0 0 0 0 0 0 100 0 100 Total 4,584 433 5,017 3,884 400 4,284 2,783 400 3,183 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 2018. 4 These board members resigned from the Board in 2019. 5 These board members resigned from the Board in 2020. 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 Share based Pension short term compensation DKK thousand Base salary Bonus contribution benefits expenses Total 2020 Remuneration to the Executive Management Emmanuel Dulac 1 4,950 3,267 990 699 2,534 12,440 Adam Sinding Steensberg² 2,967 1,266 593 282 2,281 7,389 Matthew Donald Dallas 3 2,721 1,191 36 15 1,707 5,670 Total 10,638 5,724 1,619 996 6,522 25,499 Total Other Corporate Management 5 6,386 2,739 313 286 3,423 13,147 Total 17,024 8,463 1,932 1,282 9,945 38,646 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 Total other Corporate Management 5 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 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 Total Other Corporate Management 5 6,689 2,653 604 1,035 4,471 15,452 Total 13,499 6,197 1,285 1,628 6,359 28,968 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 2020 comprised three members (2019: three and 2018: four.) Accounting policies The value of services received as consideration for granted warrants is measured at the fair value of the warrant. The fair value of equity settled share based compensation 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 and Monte Carlo model in programs with value caps whereas the average share price prior to grant is used for RSU and PSUs The employee Incentive programs of Warrant programs existing during the period 2020 2015 2010 Maximum years of options granted 10 years 5 years 5 years Method of settlement equity- settled 2020 Outstanding at the beginning of the period 0 1,647,788 42,359 Granted during the period 63,217 631,288 0 Forfeited during the period 0 (53,747) 0 Exercised during the period 0 (276,409) (42,359) Expired during the period 0 (40,000) 0 Outstanding at the end of the period 63,217 1,908,920 0 Exercisable at the end of the period 0 301,529 0 Warrants outstanding at the end of the period Range of exercise prices 216.8 90 - 224.4 101.2 - 127.1 Weighted-average remaining contractual life 9.5 4.9 0 Number held by Executive Management 0 373,409 0 2019 Outstanding at the beginning of the period 0 1,635,000 218,359 Granted during the period 0 641,029 0 Forfeited during the period 0 (314,266) 0 Exercised during the period 0 (313,975) (176,000) Expired during the period 0 0 0 Outstanding at the end of the period 0 1,647,788 42,359 Exercisable at the end of the period 0 300,725 42,359 Warrants outstanding at the end of the period Range of exercise prices 0 90 - 142.5 101.2 - 127.1 Weighted-average remaining contractual life 0 2.3 0.3 Number held by Executive Management 0 372,171 0 Warrants exercised during the period 2020 2019 Weighted-average share price at the date of exercise 234.7 160.7 Weighted-average exercise price for expired during the period 101.2 0 Weighted-average exercise price for forfeited during the period 169.2 125.4 Weighted-average exercise price for outstanding at period end 158.5 124.5 Determination of fair value of the warrants granted during the period 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 granted prior to April 15, 2020 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 granted from April 15, 2020 and going forward expires automatically after 10 years. Warrants may be exercised four times a year during a four-week period starting from the date of the publication of Zealand’s Annual Report or interim reports. Dividend is not expected. For warrants granted before January 1, 2019 , 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 a historical volatility of the Zealand share price calculated as the vesting period of 3 years plus 50% of the exercise period (2020: 7 years, 2019: 2 years). The fair value of the warrants compensation granted in 2020 was determined using the BlackScholes and Monte Carlo model using the following inputs as at day of grant and using average fair market value for RSUs and PSUs: Grant year 2020 2020 2019 2019 2018 Type RSUs Warrants PSU Warrants Warrants Term 36 months Up to 78 months 36 months Up to 48 months Up to 36 months Weighted average 185.9 216.8 127.3 127.0 90.0 share price (DKK) to 220.5 to 224.4 to 220.0 to 100.8 Exercise price (DKK) 0 224.1 0 127.0 90.0 to 220.0 to 100.8 Volatility (%) N/A 44.68 N/A 41.9 42.5 to 46.45 to 43.5 to 42.6 Risk-free interest rate (%) N/A (0.31) N/A (0.45) (0.03) to (0.41) to (0.63) to 0.05 Exercise period to-from N/A Apr'21 N/A Jun'20 May 21 to Apr'30 to Dec'24 to Oct'23 No granted 21,602 631,288 22,915 641,029 655,500 Cost price (DKK) 216.8 48.4 138.6 41.9 32.8 to 224.4 to 95.4 to 69.5 to 37.0 Expense arising from share-based payment transactions 2020 2019 2018 Research and development expenses 14,005 12,191 13,919 Sale and Marketing expenses 6,045 0 0 Administrative expenses 10,435 2,573 3,555 Total 30,485 14,764 17,474 Effect on income statement In 2020, the fair value of Warrants, RSU and PSUs recognized in the income statement amounts to DKK 30.5 million in total of which DKK 0.9 million relate to PSUs and DKK 1.1 million relate to RSUs (2019: DKK 14.8 million and 2018: DKK 17.5 million). DKK 6.5 million relate to the Executive Management (2019: DKK 3.2 million and 2018: DKK 1.9 million) is recognized in the income statement.. Fair value RSUs The number of restricted share units granted in 2020 totals 27,466, of which 21,602 is granted on April 15, 2020 and 5,864 granted on September 14, 2020. For the 21,602 granted on April 15, 2020, the value is determined based on the simple average of the closing price of the Company's share on Nasdaq Copenhagen A/S for a period of five trading days following the publication of the annual report of the Company for 2019. For the 5,864 granted on September 14, 2020, the value is determined based on the simple average of the closing price of the Company's share on Nasdaq Copenhagen A/S for a period of five trading days prior to the grant date. The programs granted in 2020 are initially valued at DKK 6.1 million. Fair value PSUs 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. 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 2009-2020 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. 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, 2020, 1,798,168 warrants have been exercised, The total proceeds amount to DKK 150.2 million (2019: DKK 145.1 million and 2018: DKK 127.4 million). As of December 31, 2020, zero 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, 2020, 3,419,883 warrants have been granted, 2,032,218 warrants have been exercised, 40,000 have expired and 873,079 warrants have forfeited. The program has expired and no further warrants can be granted. The total proceeds amount to DKK 72.1 million (2019: DKK 35.5 million and 2018: DKK 0.8 million). As of December 31, 2019, 1,908,920 warrants can still be exercised. 2020 employee incentive program This program was established in 2020 for Zealand’s Executive Management and employees. The Board of Directors was authorized to issue up to 821,544 warrants in the period until April, 2021. As of December 31, 2020, 63,217 warrants have been granted, This means that the remaining number of warrants that can be granted is 758,327. The total proceeds amount to DKK 0.0 million (2019: DKK 0.0 million and 2018: DKK 0.0 million). As of December 31, 2020, zero warrants can 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. No of PSUs 2020 2019 Number of shares At January 1 19,765 0 Granted during the year 0 22,915 Vested during the year 0 0 Forfeited during the year 0 (3,150) At December 31 19,765 19,765 No of RSUs 2020 2019 Number of shares At January 1 0 0 Granted during the year 27,466 0 Vested during the year 0 0 Forfeited during the year 0 0 At December 31 27,466 0

Other operating items, net

Other operating items, net	12 Months Ended
	Dec. 31, 2020
Other operating items, net
Other operating items, net	Note 7 - Other operating items, net Accounting policies Other operating items 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. Bargain purchase are recognized when the purchase price allocation is finalized. 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 2020 2019 2018 Government grants 602 444 630 Gain from Bargain Purchase, cf, note 29 36,395 0 0 Gross proceeds from sale of future royalties and milestones 0 0 1,310,237 Royalty expenses regarding the above sale of future royalties and milestones 0 0 (176,882) Fee, advisors regarding the above sale of future royalties and milestones 0 0 (34,459) Total other operating income 36,997 444 1,099,526 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 2021 and 2022 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 2020, 2019 and 2018. A gain from the Bargain purchase of DKK 36 million is recognized as part of the acquistion explained in note 29 .

Financial income

Financial income	12 Months Ended
	Dec. 31, 2020
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 other investments and 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 2020 2019 2018 Interest income from financial assets measured at amortized costs 895 5,413 4,263 Fair value adjustments of other investments and marketable securities, cf. note 21 936 2,846 0 Exchange rate adjustments 0 5,518 4,705 Dividend, Marketable securities 191 878 1,020 Total financial income 2,022 14,655 9,988

Financial expenses

Financial expenses	12 Months Ended
	Dec. 31, 2020
Financial expenses
Financial expenses	Note 9 - Financial expenses Accounting policies Financial expenses include interest expenses, as well as realized and unrealized exchange rate adjustments, interest on lease obligations 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. Interest expense is recognized in the income statement in accordance with the effective interest rate method. DKK thousand 2020 2019 2018 Interest expenses from liabilities at amortized costs 2,895 3,205 15,080 Amortization of financing costs 0 0 18,347 Fair value adjustments of marketable securities, cf. note 21 2,103 0 1,389 Loss on sale of marketable securities, cf. note 21 0 0 881 Other financial expenses 4,829 185 1,625 Exchange rate adjustments 39,487 0 0 Total financial expenses 49,314 3,390 37,322

Income tax

Income tax	12 Months Ended
	Dec. 31, 2020
Income tax
Income tax	Note 10 - Income tax 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. In case of ongoing tax disputes a provisions for are included as part of deferred tax assets, tax receivables and tax payables. 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, 2020. (None recognized in 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. Deferred tax from business combinations is initially recognized at fair value. 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 in 2020 (DKK 5.5 million in 2019 and DKK 0.0 million 2018) in cash relating to the surrendered tax loss of DKK 183 million (DKK 108 million in 2019 and DKK 0 million for 2018) based on qualifying research and development expenses. These tax receipts comprise the entire current tax benefit in 2020 and 2019, respectively. The income from sale of future royalties and milestones in 2018 resulted in a positive net result, meaning that Zealand was not in 2018 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 When considering tax and duties disputes, Management applies significant estimates of the likely outcome based on the knowledge available of the actual substance of the disputes, including opinions and estimates by external tax experts and case law, if available. The resolution of disputes may take several years, and the outcome is subject to considerable uncertainty. DKK thousand 2020 2019 2018 Net result for the year before tax (839,653) (576,677) 625,051 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) 184,724 126,869 (137,511) Adjustment for foreign tax rates (769) 0 0 Adjustment for non-deductible expenses 1,927 (947) (65) Adjustment for non-taxable income (6,844) 964 0 Adjustment for exercised warrants 11,522 (1,653) (2,228) Adjustment for R&D extra deduction (8,811) 1,676 1,427 Tax effect on exercise of warrants (5,592) 6,092 8 Tax effect on expired warrants (118) 175 151 Warrant - share price development (3,425) 4,050 0 Adjustment to prior year 931 0 0 Change in tax assets (not recognized) (180,621) (132,090) 94,445 Total income tax expense/benefit (7,076) 5,136 (43,773) DKK thousand 2020 2019 2018 Specification of deferred tax assets: Tax losses carried forward (available indefinitely) 1,281,505 681,531 580,937 Research and development expenses 732,389 460,007 136,755 Intangible assets 40,373 35,849 35,849 Non-current assets 66,419 51,677 50,308 Liabilities 188,787 139,890 0 Other 58,483 70,306 79,986 Total temporary differences 2,365,956 1,439,260 883,835 Calculated potential deferred tax asset at local tax rate 514,239 316,637 194,444 Deferred tax asset not expected to be utilized (505,869) (316,637) (194,444) Recognized deferred tax asset 8,370 0 0

Basic and diluted earnings per

Basic and diluted earnings per share	12 Months Ended
	Dec. 31, 2020
Basic and diluted earnings per share
Basic and diluted earnings 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. This includes the treasury shares held by the company. 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: DKK thousand 2020 2019 2018 Net result for the year (846,729) (571,541) 581,278 Net result used in the calculation of basic and diluted earnings/losses per share (846,729) (571,541) 581,278 Weighted average number of ordinary shares 38,433,923 33,866,709 30,754,948 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 38,369,700 33,802,486 30,690,725 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 38,369,700 33,802,486 30,696,404 Basic earnings/loss per share (DKK) (22.07) (16.91) 18.94 Diluted earnings/loss per share (DKK) (22.07) (16.91) 18.94 The following potential ordinary shares are anti-dilutive at December 31, 2020 (anti-dilutive at December 31, 2019 and dilutive December 31, 2018) and are therefore not included in the weighted average number of ordinary shares for the purpose of diluted earnings per share: DKK thousand 2020 2019 2018 Outstanding warrants under the 2010 employee incentive program 0 42,359 218,359 Outstanding warrants under the 2015 employee incentive program 1,908,920 1,647,788 1,635,000 Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program 27,466 0 0 Outstanding Performance Share Units (PSUs) under the LTIP 2019 program 19,765 19,765 0 Outstanding warrants under the 2020 employee incentive program 63,217 0 0 Total outstanding warrants 2,019,368 1,709,912 1,853,359 - out of which these are dilutive 0 0 72,000 - out of which these are anti-dilutive 2,019,368 1,709,912 1,781,359

Impairment

Impairment	12 Months Ended
	Dec. 31, 2020
Impairment
Impairment	Note 12 – Impairment Accounting policies Assets with indefitie usefull time are annually assesed for impairment whereas assets with definite usefull lifetime are assessed for impairment indicators. Each year, the assets are reviewed in order to assess whether there are indications of impairment. If such indications exist, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected costs to sell and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cash flows, discounted by using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or its cash-generating unit is lower than the carrying amount, an impairment charge is recognized in respect of the asset. The impairment loss is recognized in the income statement. In addition, for goodwill and other intangible assets with indefinite useful lives, impairment tests are performed at each balance sheet date, regardless of whether there are any indications of impairment. For acquisitions, the first impairment test is performed before the end of the year of acquisition. Key assumptions in the impairment test The impairment assessment for 2020 identified a need for impairment on the V-Go related Intellectual property of DKK 12.7 million. The impairment loss was primarily related to Management's decision to allocate resources to support future product launches while limiting the investment in the V-Go product. No impairment indicators were identified in 2019. Through the assessment of impairment indicators regarding the V-Go intellectual property, Management identified impairment indicators and an impairment test was performed by calculating recoverable amount of the V-Go intellectual property. The recoverable amount was determined based on a value in use calculation using cash flow and projections for subsequent years up to and including 2030, equivalent to the expected useful life of the intangible asset. The expected future net cash flows are determined based on budgets and business plans approved by Management Board. From 2031 onwards, a perpetual cash flow decreasing by the terminal growth rate of -50% is used. The pre-tax discount rate applied to the cash flow projections was 13 %. The analysis showed a need of an impairment of DKK 12.7 million regarding the V-Go Intellectual property. The amount is recognized as sales and marketing expenses in the income statement. Due to the full impairment of the V-Go related intellectual property, no additional sensitivity analysis is performed.

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2020
Intangible assets
Intangible assets	Note 13 – Intangible assets 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 accumulation model has been applied for accounting for contingent considerations , whereby all further consideration is added when incurred, to the cost of the asset initially recorded. 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. The amortization periods are as follows: · License, rights and patents: Based on lifetime of patent etc. · Intellectual property: 10 years · Physician relationsship: 8 years Amortizations will recognized in the income statement as R&D expenses when the intangibles are available for use based on the determined useful life. Useful lifetime is assessed continuously for all new acquried assets. 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. Refer to note 12. At December 31, 2020, licenses, rights and patents comprise a right that will be included in a future development project originating from the acquisition of Encycle Therapeutics in October 2019 and the intangible assets arising from the acquisition of Valertias activities. 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 due to Zealand applying the cost accumulation model for accounting for contingent considerations, whereby all further consideration is added when incurred, to the cost of the asset initially recorded. Physician relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 and 10 years respectively (unless the asset has an indefinite useful life, in which case it is not amortized). Licenses Intellectual Physician DKK thousand rights and patents property relationship Cost at January 1, 2020 2,480 0 0 Additions due to business combinations, cf. note 29 0 13,692 68,459 Additions 0 0 0 Currency translation 50 0 (7,883) Cost at December 31, 2020 2,530 13,692 60,576 Amortization at January 1, 2020 0 0 0 Amortization for the year 0 957 5,901 Impairment, cf. note 12 0 12,735 0 Currency translation 0 0 (280) Amortization at December 31, 2020 0 13,692 5,621 Carrying amount at December 31, 2020 2,530 0 54,955 Amortization and impairment for the financial year has been charged as: Research and development expenses 0 0 0 Administrative expenses 0 0 0 Sale and marketing expenses 0 13,692 5,901 Total 0 13,692 5,901 Cost at January 1, 2019 0 0 0 Additions 2,480 0 0 Cost at December 31, 2019 2,480 0 0 Amortization at January 1, 2019 0 0 0 Amortization at December 31, 2019 0 0 0 Carrying amount at December 31, 2019 2,480 0 0 Amortization for the financial year has been charged as: Research and development expenses 0 0 0 Sale and marketing expenses 0 0 0 Administrative expenses 0 0 0 Total 0 0 0

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2020
Property, plant and equipment
Property, plant and equipment	Note 14 – 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, Sale and marketing 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 to property. plant and equipment have been recognized for 2020, 2019 and 2018. Plant and Other fixtures Building Assets under DKK thousand machinery and fittings improvements construction Cost at January 1, 2020 57,153 12,501 13,773 14,001 Transfer 0 0 13,796 (13,796) Addition from business combinations 33,875 2,572 1,707 2,984 Additions 8,479 1,566 14,889 109 Retirements (5,935) (985) (9,856) Currency translation (7,674) (375) (205) (275) Cost at December 31, 2020 85,898 15,279 34,104 3,023 Accumulated depreciation at January 1, 2020 43,696 4,164 9,860 Transfer 0 Depreciation for the year 4,974 2,301 2,301 Retirements (4,304) (985) (9,804) Currency translation (379) 1,462 (22) Accumulated depreciation at December 31, 2020 43,987 6,942 2,335 Carrying amount at December 31, 2020 41,911 8,337 31,769 3,023 Depreciation for the financial year has been charged as: Research and development expenses (4,128) (1,378) (1,910) Administrative expenses (846) (282) (391) Sale and marketing expenses 0 (640) Total (4,974) (2,301) (2,301) 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 Sale and marketing expenses 0 0 0 0 Total 3,483 1,085 157 0

Right-of-use assets and lease l

Right-of-use assets and lease liabilities	12 Months Ended
	Dec. 31, 2020
Right-of-use assets and lease liabilities
Right-of-use assets and lease liabilities	Note 15 – Right-of-use assets and lease liabilities Accounting policies The Group leases an office buildings, equipment and vehicles. The rental contract for the HQ 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. The rental contract for the US office site has been made for a minimum period of 16 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 period 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 right-of-use assets: Office fixtures DKK thousand Other Buildings and fittings As at January 1, 2020 84,148 1,484 Additions due to business combination, cf. note 29 14,299 0 Additions 42,725 581 Retirements (6,035) (144) Reversal of depreciations 6,035 0 Depreciation expense (12,779) (744) Currency translation (1,572) 0 As at December 31, 2020 126,821 1,177 As at January 1, 2019 7,750 2,298 Additions 84,122 280 Depreciation expense (7,724) (1,094) As at December 31, 2019 84,148 1,484 Set out below are the carrying amounts of lease liabilities and the movements during the period. 2020 2019 As at January 1 85,760 10,048 Additions due to business combinations, cf. note 29 14,046 0 Additions 43,151 83,521 Accretion of interest 2,763 621 Payments (14,098) (8,430) Currency translation (1,503) 0 As at December 31 130,119 85,760 Current 14,072 7,692 Non-current 116,047 78,068 The following are the amounts recognised in income statement: Depreciation expense of right-of-use assets (13,524) (8,818) Interest expense on lease liabilities (2,763) 621 Total amount recognised in profit and loss (16,287) (9,439) Cashflow (14,098) (8,430) Total cash outflow for leases (14,098) (8,430) Depreciation for the financial year has been charged as: Research and development expenses (10,001) (7,583) Administrative expenses (3,523) (1,235) Sale and marketing expenses 0 0 Total (13,524) (8,818)

Inventories

Inventories	12 Months Ended
	Dec. 31, 2020
Inventories
Inventories	Note 16 – Inventories Accounting policies Raw materials, work in progress and finished goods are stated at the lower of cost and net realizable value. Cost is determined on a first in, first out basis and comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalised but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognised in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. We review our inventory for excess or obsolescence and write down inventory that has no alternative uses to its net realizable. Economic conditions, customer demand and changes in purchasing and distribution can affect the carrying value of inventory. As circumstances warrant, we record provisions for potentially obsolete or slow moving inventory and lower of cost or net realizable value inventory adjustments. In some instances, these adjustments can have a material effect on the financial results of an annual or interim period. In order to determine such adjustments, we evaluate the age, inventory turns, future sales forecasts and the estimated fair value of inventory. Inventories comprise: DKK thousand 2020 2019 Raw materials 14,398 0 Work in process 13,723 0 Finished goods 36,919 0 Total 65,040 0 Direct costs 48,224 0 Indirect production costs 16,816 0 Write downs recognized on inventories were reflected in the cost of goods sold. They were comprised as follows: DKK thousand 2020 2019 Accumulated write downs, January 1 0 0 Addition from business combination, cf. note 29 (11,294) 0 Write downs in the reporting period 486 0 Reversals or utilization of write downs 3,860 0 Exchange differences 0 0 Accumulated write downs, December 31 (6,948) 0 DKK 90.6 million is recognized as cost of goods sold during 2020.

Other investments

Other investments	12 Months Ended
	Dec. 31, 2020
Other investments
Other investments	Note 17 – 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 5.4 million (2019: USD 5.3 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% (2019: 1.6%) ownership of Beta Bionics, Inc., and is recorded at a fair value of DKK 32.3 million as of December 31, 2020 (DKK 35.6 million as of December 31, 2019). 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 undertook a capital offering in June 2019 and subsequent infliction points was used as the basis for determining fair value. Measurement is considered a level 3 measurement. A fair value adjustment of DKK 0.1 million and currency conversion impact of DKK -3.3 million, respectively, have been recognized in financial income in 2020 (2019: DKK 2.2 million and DKK 0.8 million respectively).

Trade receivables

Trade receivables	12 Months Ended
	Dec. 31, 2020
Trade receivables
Trade receivables	Note 18 - Trade receivables Accounting policies On initial recognition, receivables are measured at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost. Trade receivables are written down for expected credit losses. The Group applies the simplified approach in IFRS 9 to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables and contract assets. A write-down is recognized in sales and marketing expenses. There are no material overdue receivables and the write-down for expected credit losses is not material. At December 31, 2020 and 2019, Zealand had no trade receivables related to milestone payments.

Prepaid expenses

Prepaid expenses	12 Months Ended
	Dec. 31, 2020
Prepaid expenses
Prepaid expenses	Note 19 - 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. Other receivables are measured at amortized cost less impairment. Prepayments include expenditures related to future financial periods and are measured at nominal value The increase by DKK 17.5 million from 2019 (DKK 30.8 million) to 2020 (DKK 48.3 million) is primarily related to an increase in prepaid insurance, taken as a result of higher insurance costs because of the increased premiums required for Director & Officer insurance.

Other receivables

Other receivables	12 Months Ended
	Dec. 31, 2020
Other receivables
Other receivables	Note 20 - Other receivables Accounting policies Other receivables are measured on initial recognition at cost and subsequently at amortized cost. DKK thousand 2020 2019 VAT 3,887 5,437 Other 6,055 2,498 Total other receivables 9,942 7,935

Marketable securities

Marketable securities	12 Months Ended
	Dec. 31, 2020
Marketable securities
Marketable securities	Note 21 - Marketable securities Accounting policies The Group’s Marketable securities portfolio comprises a investmetn in a bond portfolio. The investment is categorized as equity instruments held for trading. Consequently, the securities are classified at fair value through profit or loss. Refer to note 28, Financial risks. A net fair value adjustment of DKK -2.1 million from marketable securities have been recognized in financial expenses, respectively, in 2020 (2019: DKK 0.8 million in financial income.

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2020
Cash and cash equivalents
Cash and cash equivalents	Note 22 - Cash and cash equivalents Accounting policies Cash is measured on initial recognition at cost. DKK thousand 2020 2019 DKK 286,222 732,405 USD 568,444 306,748 EUR 105,555 41,907 Total cash and cash equivalents 960,221 1,081,060

Share capital

Share capital	12 Months Ended
	Dec. 31, 2020
Share capital
Share capital	Note 23 - 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. No, of shares (thousand) 2020 2019 January 1 36,055 30,787 Increase due to issue of new shares 3,745 5,268 December 31 39,800 36,055 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. At the annual general meeting on April 2, 2020 Zealand was authorized to increase the nominal share capital by nominally DKK 9,013,665 during the period until April 2, 2025. At December 31,2020 nominally DKK 5,587,388 of the authorization remains. Further please refer to note 33 for the capital increase made in January 2021. On June 22, 2020 a total of 2,684,461 new shares have been subscribed through a private and direct shares issue with a net proceeds pf DKK 655.0 million. On March 26, a total of 741,816 new shares have been subscribed through a private share issue to US based investors with a net proceeds of DKK 136.5 million. The cost of share issues amounts to DKK 42.7 million. 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. At December 31, 2020, there were 64,223 treasury shares (2019: 64,223), equivalent to 0.2% (2019: 0.2%) of the share capital and corresponding to a market value of DKK 14.1 million (2019:DKK 15.1 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.

Deferred revenue

Deferred revenue	12 Months Ended
	Dec. 31, 2020
Deferred revenue
Deferred revenue	Note 24 – Deferred revenue The Group has recognized the following liabilities related to contracts with customers. DKK thousand 2020 2019 Deferred revenues at January 1 139,890 0 Customer payment received, cf. note 2. 0 177,315 Revenue recognized during the year (42,881) (37,425) Total deferred revenue 97,769 139,890 Non-current deferred revenue 44,587 83,639 Current deferred revenue 53,182 56,251 97,769 139,890 Deferred revenue occurred in connection with the agreement with Alexion Pharmaceuticals, Inc. as disclosed in Note 2. An up-front payment of DKK 177.3 million was received of which DKK 37.4 million has been recognized during 2019 and DKK 42.9 million in 2020. Management expects that approx. DKK 53 million of the up-front payment received will be recognized as revenue during 2021. The remaining payment is expected to be recognized during 2022 and 2023 according to the progress of the development project.

Provision

Provision	12 Months Ended
	Dec. 31, 2020
Provision
Provision	Note 25 – Provision Provision Provision for sales for product 2020 2019 DKK thousand rebates returns total total Provision at the beginning of the year 0 0 0 0 Addition due to acquisition cf note 29 4,343 2,626 6,969 0 Adjustments for the year 137,104 217 137,321 0 Utilization during the period (102,521) (1,245) (103,766) 0 Reversal of provisions from previous years 0 (1,184) (1,184) 0 Currency translation adjustments (2,493) (175) (2,668) 0 Provision at year-end 36,433 239 36,673 0 Provisions comprise current sales rebates and discounts granted to government agencies, wholesalers, retail pharmacies, Managed Care and other customers, which are recorded at the time the related revenues are recorded or when the incentives are offered. Provisions are calculated based on historical experience and the specific terms in the individual agreements. Unsettled rebates are recognised as provisions when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognised as other liabilities. Please refer to note 1 and note 2 for further information on sales rebates and provisions and managements estimates and judgements. Zealand Pharma issues credit notes for expired goods as a part of normal business. Where there is historical experience or a reasonably accurate estimate of expected future returns can otherwise be made, a provision for estimated product returns is recorded. The provision is measured at gross sales value. Accounting policies Provisions are recognized when the Company has an existing legal or constructive obligation as a result of events occurring prior to or on the balance sheet date, and it is probable that the utilization of economic resources will be required to settle the obligation. Provisions are measured at management’s best estimate of the expenses required to settle the obligation.

Other liabilities

Other liabilities	12 Months Ended
	Dec. 31, 2020
Other liabilities
Other liabilities	Note 26 - Other liabilities Accounting policies Financial liabilities are recognized initially at cost less transaction costs. In subsequent periods, financial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method. DKK thousand 2020 2019 Employee benefits 101,028 36,082 Royalty payable to third party 5,732 6,843 Development project costs 28,267 16,329 Other payables 32,272 13,790 Total other liabilities 167,299 73,044 Current 150,555 73,044 Non-current 16,744 0

Contingent assets, liabilities

Contingent assets, liabilities and other contractual obligations	12 Months Ended
	Dec. 31, 2020
Contingent assets, liabilities and other contractual obligations
Contingent assets, liabilities and other contractual obligations	Note 27 - 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. Contingent Assets At December 31, 2020, Zealand is still eligible for a payment from Sanofi of up to USD 15.0 million, of which DKK 5.0 million is expected in 2021 and DKK 10.0 million in 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. Contingent liabilities and Contractual obligations At December 31, 2020, total contractual obligations related to agreements with CROs amounted to DKK 252.6 million (DKK 198.1 million for 2021 and DKK 54.5 million for the years 2022 up to and including 2024). Zealand may be required to pay future development, regulatory and commercial milestones related to the acquisition of Encycle Therapeutics. Refer to note 13.

Financial risks

Financial risks	12 Months Ended
	Dec. 31, 2020
Financial risks
Financial risks	Note 28 - 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 material 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. Currency exposure regarding our US activities are managed by having revenue and expenses in the same currency. 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. As of December 31, 2020, Zealand holds DKK 568.4 million (2019: DKK 306.7 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, 2020, Zealand only has Lesae liabilities as interest bearing debt amounting to DKK 130.1 million. Up until the redemption in September 2018, Zealand had a fixed rate royalty bond. During 2020, 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 2020 and 2019, 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 and wholesalers. 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. 2020 2019 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 58,124 +/-10% 30,657 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 71,442 0 0 71,442 Leasing 14,072 53,039 76,354 146,465 Other liabilities 150,555 16,744 0 167,299 Total financial liabilities at December 31, 2020 236,069 69,783 76,354 382,209 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 All cash flows are non-discounted and include all liabilities under contracts. DKK thousand 2020 2019 Categories of financial instruments Deposits 16,650 9,012 Trade receivables 46,484 751 Other receivables 9,942 7,935 Cash and cash equivalents 960,221 1,081,060 Financial assets at amortized costs 1,033,297 1,098,758 Marketable securities 297,345 299,448 Other investments 32,333 35,632 Financial assets measured at fair value through profit or loss 329,678 335,080 Lease liabilities 130,119 85,760 Trade payables 70,384 57,533 Other liabilities 167,299 73,044 Financial liabilities measured at amortized cost 367,802 216,337 The fair value of marketable 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 17. There were no transfer between levels 1,2 and 3 for recurring fair value measurement during the period ended December 31, 2020 or 2019. The carrying amount of financial assets and financial liabilities approximated the fair value. Capital Management Zealand’s goal is to maintain a strong capital base to maintain investor, creditor and market confidence, and a continuous advancement of Zealand’s product pipeline and business in general. Zealand is primarily financed through capital increases and partnership collaboration income and had, as of December 31, 2020, a cash position of DKK 960.2 million (2019: 1,081.1 million). The cash position supports the advancement of our product pipeline and operations. The adequacy of our available funds will depend on many factors, including progress in our research and development programs, the magnitude of those programs, our commitments to existing and new clinical collaborators, our ability to establish commercial and licensing arrangements, our capital expenditures, market developments, and any future acquisitions. Accordingly, we may require additional funds and may attempt to raise additional funds through equity or debt financings, collaborative agreements with partners, or from other sources. The Board of Directors monitors the share and capital structure to ensure that Zealand’s capital resources support the strategic goals. There was no change in the group’s approach to capital management procedures in 2020. Neither Zealand Pharma A/S nor any of its subsidiaries are subject to externally imposed capital requirements.

Business combinations

Business combinations	12 Months Ended
	Dec. 31, 2020
Business combinations
Business combinations	Note 29 – Business combinations Accounting policy Business combinations are accounted for using the acquisition method of accounting. At the date of the acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The consideration transferred is measured at fair value at the date of acquisition and the excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill. In circumstances where the consideration transferred is less than the fair value of net identifiable assets of the business acquired, the difference is recognized directly in the consolidated statement of profit or loss as a bargain purchase. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive loss as an administrative expense. Business combinations require management making an assessment of the fair value of the net assets acquired as well as an assessment regarding whether control exists. Management judgement is particularly involved in the recognition and measurement of the following items at fair value: · intellectual property: this may include patents, licenses, trademarks and similar rights for currently marketed products, and also the rights and scientific knowledge associated with projects that are currently in research or development phases, and requires the projection of estimated future cash inflows and outflows and relevant risks, the terminal value of these assets, discount rates and weighted average costs of capital, · working capital items such as trade receivables, inventory (raw materials, work in process, parts and finished goods), prepaid expenses, trade payables, and fixed assets · Guarantees, warranties, indemnities, rights, claims, counterclaims etc. set off against third parties relating to the acquired assets or assumed liabilities, including rights under vendors' and manufacturers' warranties, indemnities, guaranties and avoidance claims and causes of action under any applicable Law, employee liabilities and other contingencies In all cases, management makes an assessment based on the underlying economic substance of the items concerned, and not only on the contractual terms, in order to fairly present these items. In making these assessments, management relies to a significant extent on the work of valuation experts. However, the assessments are highly subjective and sensitive to the assumptions used. In accordance with IFRS 3, if a business combination indicates a bargain gain all applied assumptions will be reassessed by Management before recognition. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive loss. Customer relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 and 10 years respectively (unless the asset has an indefinite useful life, in which case it is not amortized). Acquisition of medical technology business from Valeritas, Inc. On April 2, 2020 (or “the acquisition date”) Zealand acquired substantially all of the medical technology business from Valeritas Holdings, Inc. (or “Valeritas”) pursuant to the terms of the stalking horse asset purchase agreement previously entered into with Valeritas and following approval by the U.S. Bankruptcy Court for the District of Delaware on March 20, 2020. Valeritas was a U.S. based commercial-stage company whose activities comprised development, production and sale of wearable disposable insulin pumps and has therefore been acquired to accelerate Zealand’s plans for establishing U.S. operations to support the anticipated launch of the auto-injector and pre-filled syringe for severe hypoglycemia. The acquisition comprises all medical technology business related tangible and intangible assets that pursuant to the Bankruptcy Code was transferred to Zealand free and clear of all claims, liabilities and encumbrances including the Valeritas workforce. Additionally, the acquisition includes most of the working capital assets and selected liabilities. Under IFRS 3, Business Combinations, the acquisition has been accounted for as a business combination using the acquisition method. The consolidated financial statements include the results of Valeritas for the from the acquisition date. The consideration transferred was DKK 167.7 million (USD 24.5 million), and the fair values of the identifiable assets and liabilities of Valeritas as at the date of acquisition were: Fair value recognized on DKK thousand acquisition Assets Physician Relationship 68,459 V-Go IP 13,692 Property, plant and equipment 41,138 Right-of-use assets 14,299 Inventories 55,796 Trade receivables 50,603 Other assets 10,132 Cash and cash equivalents 66 Liabilities Deferred tax liability (11,880) Trade payables (4,050) Lease liabilities (14,046) Other liabilities (19,792) Total identifiable net assets at fair value 204,417 Bargain purchase recognized (36,692) Purchase consideration transferred 167,725 Analysis of cash flows on acquisition: Net cash acquired (included in cash flows from investing activities) 66 Cash paid (167,725) Net cash flow on acquisition (167,659) The fair value attributable to intangible assets (DKK 82.2 million as of the acquisition date) consists of the value arising from the existing Valeritas physician network and relationships, valued at DKK 68.5 million which is based on the estimated cost it would require to establish similar network and relationships, or a so-called with/without valuation method, and intellectual property related to the V-Go technology, valued at DKK 13.7 million using an excess earnings model. (Subsequently impaired. Refer to note 12) The valuations is calculated using cash flow projections from financial budget approved by Corporate Management covering a 10 year period. The discount rate applied to the cash flow projections is 13%. The growth rate used to extrapolate the cash flows of the unit beyond the 10 year period is -50% which reflects our estimate of the expected lifetime of the product of 10 years with a significant decrease in revenues afterwards. The calculation of the fair value of intangible assets is most sensitive to the revenue and gross margin growths.Revenue and gross margin: Revenue and gross margin are based on historical trends. The revenue growth applied in the calculation is between 1-20% in the 10-year budget period with the first years having the highest revenue growth in percentage.Operating costs: Operating costs are based on historical trends and industry knowledge. Operating costs over the 10-year budget period has been adjusted to incorporate the allocation related to shared efforts of future product launches. Trade receivables have been measured at the contractual amount expected to be received which approximates the fair value of DKK 50.6 million. The amounts have not been discounted, as maturity on receivables is generally very short and the discounted effect therefore immaterial. The acquisition resulted in a bargain purchase gain of DKK 36.7 million which was recognized within other operating income in the consolidated income statement. The gain arose as the fair value of the net assets acquired (DKK 204.4 million) exceeded the fair value of the purchase consideration (DKK 167.7 million). The gain is primarily attributable to the Company purchasing the medical technology business of Valeritas out of bankruptcy. Valeritas encountered operational and financial difficulties in late 2019 and filed for Bankruptcy in February 2020.Specifically,the fair value of the tangible and financial assets acquired (DKK 147.5 million), such as inventories, trade receivables, and property, plant and equipment, represents a significant component of the purchase price prior to consideration of the fair value of the identified intangible assets. Acquisition-related costs of DKK 7.1 million have been expensed and are included in administrative expenses in profit or loss and are part of operating cash flows in the statement of cash flows have all been incurred in the three months period ended March 31, 2020.Adjustments may be applied to the various net asset categories when full alignment to Zealand accounting policies is finalized. Consequently, adjustments may be applied for a period of up to twelve months from the acquisition date in accordance with IFRS 3. The Valeritas business acquisition has contributed with net revenues of approximately DKK 161.3 million in net revenue and profit and loss of approximately DKK -278.8 million to the Group for the period ending December 31, 2020 since the acquisition on April 2, 2020. If the acquisition had occurred on 1 January 2020, the consolidated pro forma revenue and operating result of Zealand Pharma Group for the period ended 31 December 2020 would have been approximately DKK 395.8 million and DKK -868.9 million, respectively.

Related parties

Related parties	12 Months Ended
	Dec. 31, 2020
Related parties
Related parties	Note 30 - 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 shareholder is registered in Zealand’s register of shareholders as owning minimum 5% of the voting rights or minimum 5% of the share capital (1 share equals 1 vote) at December 31, 2020: · Van Herk Investments, Rotterdam, Netherlands

Adjustments for non-cash items

Adjustments for non-cash items	12 Months Ended
	Dec. 31, 2020
Adjustments for non-cash items
Adjustments for non-cash items	Note 31 - Adjustments for non‑cash items DKK thousand 2020 2019 2018 Depreciation, amortization and impairment 42,692 13,682 4,508 Sharebased compensation expenses 30,485 14,763 17,474 Income tax income (5,543) (5,999) 0 Income tax expense 15,408 614 43,773 Financial income (1,127) (9,306) 0 Financial expenses 3,511 3,390 19,736 Non paid royalty expenses regarding sale of future royalties and milestones 0 0 6,575 Exchange rate adjustments 57,712 (7,937) 9,864 Total adjustments 143,138 9,207 101,930

Change in working capital

Change in working capital	12 Months Ended
	Dec. 31, 2020
Change in working capital
Change in working capital	Note 32 - Change in working capital DKK thousand 2020 2019 2018 (Increase)/decrease in receivables (7,716) (21,059) (471) (Increase)/decrease in Inventory (14,404) 0 0 Increase/(decrease) in payables and other liabilities 119,938 17,061 13,256 Adjustment for non-cash investing activities 0 (7,932) 0 Cash outflow for investment in Beta Bionics 0 22,803 0 Change in working capital 97,818 10,873 12,785

Significant events after the ba

Significant events after the balance sheet date	12 Months Ended
	Dec. 31, 2020
Significant events after the balance sheet date
Significant events after the balance sheet date	Note 33 - Significant events after the balance sheet date On January 27, 2021 a total of 3,600,841 new shares have been subscribed through a private share issue with gross proceeds of DKK 749 million. 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, 2020
Approval of the annual report
Approval of the annual report	Note 34 - 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 11, 2021.

Significant accounting polici_2

Significant accounting policies, and significant accounting estimates and assessments (Policies)	12 Months Ended
	Dec. 31, 2020
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. Functional currency A functional currency is determined for each Group entity.The functional currency is the currency used in the primary financial environment in which the individual Group entity operates.
Foreign currency translation	Foreign currency translation Transactions denominated in currencies other than the transacting entity's functional currency 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. Recognition in the consolidated financial statements On preparation of the consolidated financial statements, the income statements of entities with a functional currency different from DKK are translated at the average exchange rate for the period, and balance sheet items are translated at the exchange rate ruling at the reporting date. Foreign exchange differences arising on translation of the equity of foreign entities and on translation of receivables considered part of net investment are recognised directly in other comprehensive income. Foreign exchange differences arising on the translation of income statements from the average exchange rate for the period to the exchange rate ruling at the reporting date are also recognised in other comprehensive income. Adjustments are presented under a separate translation reserve in equity. Materiality in financial reporting In preparing the Annual Report, Management seeks to improve the information value of the consolidated financial statements, the notes to the statements and other measures disclosed by presenting the information in a way that supports the understanding of the Group’s performance in the reporting period. This objective is achieved by presenting fair transactional aggregation levels on line items and other financial information, emphasising information that is considered of material importance to the user and making relevant rather than generic descriptions throughout the Annual Report. All disclosures are made in compliance with the International Financial Reporting Standards, the Danish Financial Statements Act and other relevant regulations, ensuring a true and fair view throughout the Annual Report.
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. Cost of goods sold Cost of goods sold includes raw materials, labor costs, manufacturing overhead expenses and reserves for anticipated scrap and inventory obsolescence. 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 line of business, 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 flowssolely 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 securitiescategorized as equity instruments are held for trading and classified at fair value through profit and loss. 3. Equity investments. These investments are measured at fair value through the profit and loss. Financial assets are assigned to the different categories by Management on initial recognition, depending on the cash flow characteristics and purpose for which the assets were acquired. All financial assets are recognized on their settlement date. All financial assets other than those classified at fair value through the income statement are initially recognized at fair value, plus transaction costs. Statement of cash flows The cash flow statement is prepared in accordance with the indirect method on the basis of the operating result 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. The cash flow statement cannot be derived directly from the balance sheet and income statement. 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 operating result adjusted for depreciation and amortization, 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, net cashflow from acquisition of Valertias activities, 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 ordinary shares, proceeds from issuance of shares related to exercise of sharebased compensation. and related costs, finance lease installments and loan financing. Cash and cash equivalents Cash and cash equivalents comprise cash and bank balances. Cash and cash equivalents are instruments with original maturities of 90 days or less. The Company does not have any cash equivalents for the years ended December 31, 2020 and 2019. Information on COVID-19 Our business, operations and clinical studies were, of course, impacted by the effects of COVID-19. Although our clinical studies continued without interruption during 2020, there were delays and increased total costs arising from the implications of COVID-19. However, we have not recognized any write-offs, impairments of assets, or losses to onerous contracts due to COVID-19. The impairment of V-Go IP as explained in note 12 was due to Managements decision to allocate resources to support future product launches while limiting the investment in the V-Go product. The COVID-19 pandemic is also having an effect on other aspects of our business, including: our third-party manufacturers, and other third parties; albeit with no material effect or impact. The COVID-19 pandemic may, in the long-term, affect the productivity of our staff; our ability to attract, integrate, manage and retain qualified personnel or key employees; our global supply chains and relationships with vendors and other parties; significant disruption of global financial markets; and reduced ability to secure additional funding. We continuously monitor the COVID-19 pandemic and its potential impact on our business and financials.
Significant accounting estimates and judgments	Significant accounting estimates and judgments The preparation of the consolidated financial statements requires Management to make judgments and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. 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 and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates used are based on assumptions assessed to be reasonable by Management. However, estimates are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. Furthermore, we are subject to risks and uncertainties that may result in deviations in actual results compared with estimates. Please refer to the table below to see in which note the accounting estimates and judgements are presented. Notes including management’s estimates and judgements Estimates Judgements 2 – Revenue X X 6 – Employee incentive programs X 13 – Encycle Therapeutics, Inc. acquisition X 25 – Discount and rebate provision X X 29 – Business Combinations X X Additional description of Management estimates and judgements made are described below
Revenue recognition (management estimate and judgement)	Revenue recognition (management estimate and judgement) Revenue comprises license payments, milestone payments , product revenue 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 Intellectual Property (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. Revenue comprises license payments, milestone payments, royalty income and sale of goods. 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. 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. Zealand applies the output based method (budget cost) when determining the timing of satisfaction of performance obligations as the development services are performed by an indeterminate number of acts over the development timeline and accordingly, time elapsed and budget costs as an output measure is considered to be the unit which most appropriately depicts the transfer of control of services to Alexion In total. Trade receivables are recognised as services delivered are invoiced to the customer and are not adjusted for any financing components as credit terms are short - typically between 14 to 60 days - and the financing component therefore insignificant. Where services delivered have yet to be invoiced and invoices on services received from vendors have still to be received, contract assets and accrued cost of services are recognised at the reporting date.
Employee incentive programs (management estimates)	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. Discount and rebate (management estimate and judgement) Provisions regarding sales rebates and discounts granted to government agencies, wholesalers, retail pharmacies, managed care and other customers are recorded at the time the related revenues are recorded or when the incentives are offered. For both managed care rebates and the medicare part D rebates, the key assumptions relate to the rebate percentages by each pharmacy as determined in each pharmacy's contract with the Company and forecasted number of prescriptions that will be filled by each pharmacy (referred to as payor mix). For co-pay card redemptions, the key assumptions relate to expected settlement rate for sales units remaining in the channel that have yet to be presented under co-pay terms. These assumptions are made based on historical actuals, which are used to estimate forecasted trends, including payor mix and settlement rates, which are used to estimate the expected settlement of managed care rebates and medicare part D rebates, and co-pay card redemption, and the specific terms in the individual agreements. Unsettled rebates are recognized as provisions when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognized as provisions. Please refer to note 25 for further information on sales rebates and provisions. 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 did not acquire 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 Zealand 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. The acquistion 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. The value of services received as consideration for granted warrants is measured at the fair value of the warrant. The fair value of equity settled share based compensation 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 and Monte Carlo model in programs with value caps whereas the average share price prior to grant is used for RSU and PSUs
Business Combinations (management estimates and judgements)	Business Combinations (management estimates and judgements) In applying the acquisition method of accounting, estimates are an integral part of assessing fair values of several identifiable assets acquired and liabilities assumed, as observable market prices are typically not available. Valuation techniques where estimates are applied typically relate to determining the present value of future uncertain cash flows or assessing other events in which the outcome is uncertain at the date of acquisition. More significant estimates are typically applied in accounting for Intellectual properties, customer relationships, trade receivables, deferred tax and debt. The calculation of the fair value of intangible assets is most sensitive to the revenue and gross margin growths. Please refer to note 29 for further information on Business Combinations. As a result of the uncertainties inherent in fair value estimation, measurement period adjustments may be applied. Business combinations are accounted for using the acquisition method of accounting. At the date of the acquisition, the Company initially recognizes the fair value of the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The consideration transferred is measured at fair value at the date of acquisition and the excess of the consideration transferred over the fair value of net identifiable assets of the business acquired is recorded as goodwill. In circumstances where the consideration transferred is less than the fair value of net identifiable assets of the business acquired, the difference is recognized directly in the consolidated statement of profit or loss as a bargain purchase. Where the settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value. Contingent consideration is classified either as equity or a financial liability and is recognized at fair value on the acquisition date. Amounts classified as a financial liability are subsequently remeasured to fair value in accordance with IFRS 9 (Financial Instruments), with changes in fair value recognized in the consolidated statement of comprehensive loss as an administrative expense. Business combinations require management making an assessment of the fair value of the net assets acquired as well as an assessment regarding whether control exists. Management judgement is particularly involved in the recognition and measurement of the following items at fair value: · intellectual property: this may include patents, licenses, trademarks and similar rights for currently marketed products, and also the rights and scientific knowledge associated with projects that are currently in research or development phases, and requires the projection of estimated future cash inflows and outflows and relevant risks, the terminal value of these assets, discount rates and weighted average costs of capital, · working capital items such as trade receivables, inventory (raw materials, work in process, parts and finished goods), prepaid expenses, trade payables, and fixed assets · Guarantees, warranties, indemnities, rights, claims, counterclaims etc. set off against third parties relating to the acquired assets or assumed liabilities, including rights under vendors' and manufacturers' warranties, indemnities, guaranties and avoidance claims and causes of action under any applicable Law, employee liabilities and other contingencies In all cases, management makes an assessment based on the underlying economic substance of the items concerned, and not only on the contractual terms, in order to fairly present these items. In making these assessments, management relies to a significant extent on the work of valuation experts. However, the assessments are highly subjective and sensitive to the assumptions used. In accordance with IFRS 3, if a business combination indicates a bargain gain all applied assumptions will be reassessed by Management before recognition. Directly attributable acquisition-related costs are expensed as incurred within the consolidated statement of comprehensive loss. Customer relationships and IP rights acquired through business combinations are measured at fair value at the acquisition date and amortized on a systematic basis over their useful life 8 and 10 years respectively (unless the asset has an indefinite useful life, in which case it is not amortized).
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, sales, marketing and administrative expenses	Research expenses comprise salaries, share-based compensation, 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, share-based compensation, 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.
Other operating items, net	Other operating items 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. Bargain purchase are recognized when the purchase price allocation is finalized. 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 other investments and 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, interest on lease obligations 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. Interest expense is recognized in the income statement in accordance with the effective interest rate method.
Income tax	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. In case of ongoing tax disputes a provisions for are included as part of deferred tax assets, tax receivables and tax payables. 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, 2020. (None recognized in 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. Deferred tax from business combinations is initially recognized at fair value. 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 in 2020 (DKK 5.5 million in 2019 and DKK 0.0 million 2018) in cash relating to the surrendered tax loss of DKK 183 million (DKK 108 million in 2019 and DKK 0 million for 2018) based on qualifying research and development expenses. These tax receipts comprise the entire current tax benefit in 2020 and 2019, respectively. The income from sale of future royalties and milestones in 2018 resulted in a positive net result, meaning that Zealand was not in 2018 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 When considering tax and duties disputes, Management applies significant estimates of the likely outcome based on the knowledge available of the actual substance of the disputes, including opinions and estimates by external tax experts and case law, if available. The resolution of disputes may take several years, and the outcome is subject to considerable uncertainty.
Basic and diluted earnings 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. This includes the treasury shares held by the company. 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.
Impairment	Assets with indefitie usefull time are annually assesed for impairment whereas assets with definite usefull lifetime are assessed for impairment indicators. Each year, the assets are reviewed in order to assess whether there are indications of impairment. If such indications exist, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected costs to sell and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cash flows, discounted by using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset or its cash-generating unit is lower than the carrying amount, an impairment charge is recognized in respect of the asset. The impairment loss is recognized in the income statement. In addition, for goodwill and other intangible assets with indefinite useful lives, impairment tests are performed at each balance sheet date, regardless of whether there are any indications of impairment. For acquisitions, the first impairment test is performed before the end of the year of acquisition.
Intangible assets	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 accumulation model has been applied for accounting for contingent considerations , whereby all further consideration is added when incurred, to the cost of the asset initially recorded.
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, Sale and marketing 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 to property. plant and equipment have been recognized for 2020, 2019 and 2018.
Right-of-use assets and lease liabilities	The Group leases an office buildings, equipment and vehicles. The rental contract for the HQ 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. The rental contract for the US office site has been made for a minimum period of 16 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 period 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.
Inventories	Raw materials, work in progress and finished goods are stated at the lower of cost and net realizable value. Cost is determined on a first in, first out basis and comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalised but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognised in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. We review our inventory for excess or obsolescence and write down inventory that has no alternative uses to its net realizable. Economic conditions, customer demand and changes in purchasing and distribution can affect the carrying value of inventory. As circumstances warrant, we record provisions for potentially obsolete or slow moving inventory and lower of cost or net realizable value inventory adjustments. In some instances, these adjustments can have a material effect on the financial results of an annual or interim period. In order to determine such adjustments, we evaluate the age, inventory turns, future sales forecasts and the estimated fair value of inventory.
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	On initial recognition, receivables are measured at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost. Trade receivables are written down for expected credit losses. The Group applies the simplified approach in IFRS 9 to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables and contract assets. A write-down is recognized in sales and marketing expenses.
Prepaid expenses	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. Other receivables are measured at amortized cost less impairment. Prepayments include expenditures related to future financial periods and are measured at nominal value
Other receivables	Other receivables are measured on initial recognition at cost and subsequently at amortized cost.
Marketable securities	The Group’s Marketable securities portfolio comprises a investmetn in a bond portfolio. The investment is categorized as equity instruments held for trading. Consequently, the securities are classified at fair value through profit or loss. Refer to note 28, Financial risks.
Cash and cash equivalents	Cash is measured on initial recognition at cost.
Share capital	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.
Provision	Provisions are recognized when the Company has an existing legal or constructive obligation as a result of events occurring prior to or on the balance sheet date, and it is probable that the utilization of economic resources will be required to settle the obligation. Provisions are measured at management’s best estimate of the expenses required to settle the obligation.
Other liabilities	Financial liabilities are recognized initially at cost less transaction costs. In subsequent periods, financial liabilities are measured at amortized cost corresponding to the capitalized value using the effective interest method.
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.

Business overview (Tables)

Business overview (Tables)	12 Months Ended
	Dec. 31, 2020
Business overview
Schedule of Ownership and Voting rights in Subsidiaries	Company summary Domicile Owner-ship 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 % Zealand Pharma California US, LLC. 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 %

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2020
Revenue
Schedule of revenue recognition	DKK thousand 2020 2019 2018 Boehringer Ingelheim International GmbH 149,120 0 0 Alexion Pharmaceuticals Inc. 42,881 38,021 0 Undisclosed counterpart 0 3,312 9,845 Protagonist Therapeutics, Inc. 0 0 3,274 Total license and milestone revenue 192,001 41,333 13,119 Sanofi—Aventis Deutschland GmbH 0 0 24,858 Total royalty revenue 0 0 24,848 V-Go gross sales 303,658 0 0 Reductions* (142,345) 0 0 Total revenue from sale of goods 161,313 0 0 Total revenue 353,314 41,333 37,977 Royalty revenue can be specified as follows: Soliqua ® 0 0 17,786 Lyxumia ® 0 0 7,072 Total royalty revenue 0 0 24,848 Total revenue recognized over time 42,881 38,021 0 Total revenue recognized at a point in time 310,433 3,312 37,977 * Discounts and rebates are specified below and discussed further in note 25..
Schedule of sales gross-to-net reconciliation	DKK thousand 2020 2019 2018 V-Go gross sales 303,658 0 0 Customer and Contractual price reductions (133,924) 0 0 Returns and sales reductions (8,421) 0 0 Net sales 161,313 0 0

Research, development, sales,_2

Research, development, sales, marketing and administrative expenses (Tables)	12 Months Ended
	Dec. 31, 2020
Research, development, sales, marketing and administrative expenses
Summary of research and development costs	DKK thousand 2020 2019 2018 Staff costs (note 6) (204,210) (178,089) (153,601) Depreciation and impairment losses, property, plant and equipment and right-of-use assets (note 14,15) (17,417) (4,422) (4,423) Other external research and development costs (382,454) (378,912) (280,195) Total research and development costs (604,081) (561,423) (438,219)

Fees to auditors appointed at_2

Fees to auditors appointed at the Annual General Meeting (Tables)	12 Months Ended
	Dec. 31, 2020
Fees to auditors appointed at the Annual General Meeting
Summary of fees to auditors appointed at the Annual General Meeting	DKK thousand 2020 2019 2018 Audit 5,941 1,847 1,661 Audit-related services and other assurance engagements 1,002 1,731 718 Tax advice 0 106 Other 12 0 Total fees 6,943 3,590 2,485

Information on staff and remu_2

Information on staff and remuneration (Tables)	12 Months Ended
	Dec. 31, 2020
Disclosure of terms and conditions of share-based payment arrangement [line items]
Schedule of staff salaries	DKK thousand 2020 2019 2018 Total staff costs can be specified as follows: Wages and salaries 337,295 175,104 141,661 Share based payment costs 30,485 14,764 17,474 Pension schemes (defined contribution plans) 16,716 13,430 11,065 Other payroll and staff-related costs 37,241 14,932 9,783 Total 421,737 218,230 179,983 The amount is charged as: Research and development expenses 204,210 178,089 153,601 Sale and marketing expenses 130,568 0 0 Administrative expenses 78,639 40,141 26,382 Cost of goods sold 3,713 0 0 Inventory 4,607 0 0 Total 421,737 218,230 179,983 Average number of employees 297 173 146 2020 2019 2018 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 750 100 850 750 100 850 650 100 750 Kirsten Drejer 1 500 0 500 467 0 467 200 0 200 Alain Munoz 400 50 450 400 50 450 300 50 350 Michael Owen 400 50 450 400 50 450 300 50 350 Bernadette Mary Connaughton 400 33 433 267 0 267 0 0 0 Jeffrey Berkowitz 400 50 450 267 33 300 0 0 0 Leonard Kruimer 400 150 550 267 100 367 0 0 0 Jens Peter Stenvang² 400 0 400 400 0 400 300 0 300 Gertrud Koefoed Rasmussen² 267 0 267 0 0 0 0 0 0 Frederik Barfoed Beck² 267 0 267 0 0 0 0 0 0 Iben Louise Gjelstrup² 267 0 267 0 0 0 0 0 0 Hanne Heidenheim Bak² 133 0 133 400 0 400 300 0 300 Rosemary Crane⁴ 0 0 0 133 17 150 333 50 383 Catherine Moukheibir⁴ 0 0 0 133 50 183 300 150 450 Helle Haxgart² , ³ 0 0 0 0 0 0 100 0 100 Total 4,584 433 5,017 3,884 400 4,284 2,783 400 3,183 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 2018. 4 These board members resigned from the Board in 2019. 5 These board members resigned from the Board in 2020. 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 Share based Pension short term compensation DKK thousand Base salary Bonus contribution benefits expenses Total 2020 Remuneration to the Executive Management Emmanuel Dulac 1 4,950 3,267 990 699 2,534 12,440 Adam Sinding Steensberg² 2,967 1,266 593 282 2,281 7,389 Matthew Donald Dallas 3 2,721 1,191 36 15 1,707 5,670 Total 10,638 5,724 1,619 996 6,522 25,499 Total Other Corporate Management 5 6,386 2,739 313 286 3,423 13,147 Total 17,024 8,463 1,932 1,282 9,945 38,646 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 Total other Corporate Management 5 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 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 Total Other Corporate Management 5 6,689 2,653 604 1,035 4,471 15,452 Total 13,499 6,197 1,285 1,628 6,359 28,968 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 2020 comprised three members (2019: three and 2018: four.)
Schedule of number of share warrants and exercise price	The employee Incentive programs of Warrant programs existing during the period 2020 2015 2010 Maximum years of options granted 10 years 5 years 5 years Method of settlement equity- settled 2020 Outstanding at the beginning of the period 0 1,647,788 42,359 Granted during the period 63,217 631,288 0 Forfeited during the period 0 (53,747) 0 Exercised during the period 0 (276,409) (42,359) Expired during the period 0 (40,000) 0 Outstanding at the end of the period 63,217 1,908,920 0 Exercisable at the end of the period 0 301,529 0 Warrants outstanding at the end of the period Range of exercise prices 216.8 90 - 224.4 101.2 - 127.1 Weighted-average remaining contractual life 9.5 4.9 0 Number held by Executive Management 0 373,409 0 2019 Outstanding at the beginning of the period 0 1,635,000 218,359 Granted during the period 0 641,029 0 Forfeited during the period 0 (314,266) 0 Exercised during the period 0 (313,975) (176,000) Expired during the period 0 0 0 Outstanding at the end of the period 0 1,647,788 42,359 Exercisable at the end of the period 0 300,725 42,359 Warrants outstanding at the end of the period Range of exercise prices 0 90 - 142.5 101.2 - 127.1 Weighted-average remaining contractual life 0 2.3 0.3 Number held by Executive Management 0 372,171 0 Warrants exercised during the period 2020 2019 Weighted-average share price at the date of exercise 234.7 160.7 Weighted-average exercise price for expired during the period 101.2 0 Weighted-average exercise price for forfeited during the period 169.2 125.4 Weighted-average exercise price for outstanding at period end 158.5 124.5 Grant year 2020 2020 2019 2019 2018 Type RSUs Warrants PSU Warrants Warrants Term 36 months Up to 78 months 36 months Up to 48 months Up to 36 months Weighted average 185.9 216.8 127.3 127.0 90.0 share price (DKK) to 220.5 to 224.4 to 220.0 to 100.8 Exercise price (DKK) 0 224.1 0 127.0 90.0 to 220.0 to 100.8 Volatility (%) N/A 44.68 N/A 41.9 42.5 to 46.45 to 43.5 to 42.6 Risk-free interest rate (%) N/A (0.31) N/A (0.45) (0.03) to (0.41) to (0.63) to 0.05 Exercise period to-from N/A Apr'21 N/A Jun'20 May 21 to Apr'30 to Dec'24 to Oct'23 No granted 21,602 631,288 22,915 641,029 655,500 Cost price (DKK) 216.8 48.4 138.6 41.9 32.8 to 224.4 to 95.4 to 69.5 to 37.0
Schedule of value of warrants recognized in the income statement	2020 2019 2018 Research and development expenses 14,005 12,191 13,919 Sale and Marketing expenses 6,045 0 0 Administrative expenses 10,435 2,573 3,555 Total 30,485 14,764 17,474
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Disclosure of terms and conditions of share-based payment arrangement [line items]
Schedule of number of shares units granted	No of RSUs 2020 2019 Number of shares At January 1 0 0 Granted during the year 27,466 0 Vested during the year 0 0 Forfeited during the year 0 0 At December 31 27,466 0
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Disclosure of terms and conditions of share-based payment arrangement [line items]
Schedule of number of shares units granted	No of PSUs 2020 2019 Number of shares At January 1 19,765 0 Granted during the year 0 22,915 Vested during the year 0 0 Forfeited during the year 0 (3,150) At December 31 19,765 19,765

Other operating items, net (Tab

Other operating items, net (Tables)	12 Months Ended
	Dec. 31, 2020
Other operating items, net
Schedule of other operating income	DKK thousand 2020 2019 2018 Government grants 602 444 630 Gain from Bargain Purchase, cf, note 29 36,395 0 0 Gross proceeds from sale of future royalties and milestones 0 0 1,310,237 Royalty expenses regarding the above sale of future royalties and milestones 0 0 (176,882) Fee, advisors regarding the above sale of future royalties and milestones 0 0 (34,459) Total other operating income 36,997 444 1,099,526

Financial income (Tables)

Financial income (Tables)	12 Months Ended
	Dec. 31, 2020
Financial income
Schedule of financial income	DKK thousand 2020 2019 2018 Interest income from financial assets measured at amortized costs 895 5,413 4,263 Fair value adjustments of other investments and marketable securities, cf. note 21 936 2,846 0 Exchange rate adjustments 0 5,518 4,705 Dividend, Marketable securities 191 878 1,020 Total financial income 2,022 14,655 9,988

Financial expenses (Tables)

Financial expenses (Tables)	12 Months Ended
	Dec. 31, 2020
Financial expenses
Schedule of financial expenses	. DKK thousand 2020 2019 2018 Interest expenses from liabilities at amortized costs 2,895 3,205 15,080 Amortization of financing costs 0 0 18,347 Fair value adjustments of marketable securities, cf. note 21 2,103 0 1,389 Loss on sale of marketable securities, cf. note 21 0 0 881 Other financial expenses 4,829 185 1,625 Exchange rate adjustments 39,487 0 0 Total financial expenses 49,314 3,390 37,322

Income tax (Tables)

Income tax (Tables)	12 Months Ended
	Dec. 31, 2020
Income tax
Schedule of income tax receivables	DKK thousand 2020 2019 2018 Net result for the year before tax (839,653) (576,677) 625,051 Corporate tax rate in Denmark 22.0 % 22.0 % 22.0 % Expected tax benefit/(expenses) 184,724 126,869 (137,511) Adjustment for foreign tax rates (769) 0 0 Adjustment for non-deductible expenses 1,927 (947) (65) Adjustment for non-taxable income (6,844) 964 0 Adjustment for exercised warrants 11,522 (1,653) (2,228) Adjustment for R&D extra deduction (8,811) 1,676 1,427 Tax effect on exercise of warrants (5,592) 6,092 8 Tax effect on expired warrants (118) 175 151 Warrant - share price development (3,425) 4,050 0 Adjustment to prior year 931 0 0 Change in tax assets (not recognized) (180,621) (132,090) 94,445 Total income tax expense/benefit (7,076) 5,136 (43,773) DKK thousand 2020 2019 2018 Specification of deferred tax assets: Tax losses carried forward (available indefinitely) 1,281,505 681,531 580,937 Research and development expenses 732,389 460,007 136,755 Intangible assets 40,373 35,849 35,849 Non-current assets 66,419 51,677 50,308 Liabilities 188,787 139,890 0 Other 58,483 70,306 79,986 Total temporary differences 2,365,956 1,439,260 883,835 Calculated potential deferred tax asset at local tax rate 514,239 316,637 194,444 Deferred tax asset not expected to be utilized (505,869) (316,637) (194,444) Recognized deferred tax asset 8,370 0 0

Basic and diluted earnings pe_2

Basic and diluted earnings per share (Tables)	12 Months Ended
	Dec. 31, 2020
Basic and diluted earnings per share
Schedule of basic and diluted earnings/loss per share	DKK thousand 2020 2019 2018 Net result for the year (846,729) (571,541) 581,278 Net result used in the calculation of basic and diluted earnings/losses per share (846,729) (571,541) 581,278 Weighted average number of ordinary shares 38,433,923 33,866,709 30,754,948 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 38,369,700 33,802,486 30,690,725 Weighted average number of ordinary shares used in the calculation of diluted earnings per share 38,369,700 33,802,486 30,696,404 Basic earnings/loss per share (DKK) (22.07) (16.91) 18.94 Diluted earnings/loss per share (DKK) (22.07) (16.91) 18.94
Schedule of potential ordinary shares are antidilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted earnings/loss per share	DKK thousand 2020 2019 2018 Outstanding warrants under the 2010 employee incentive program 0 42,359 218,359 Outstanding warrants under the 2015 employee incentive program 1,908,920 1,647,788 1,635,000 Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program 27,466 0 0 Outstanding Performance Share Units (PSUs) under the LTIP 2019 program 19,765 19,765 0 Outstanding warrants under the 2020 employee incentive program 63,217 0 0 Total outstanding warrants 2,019,368 1,709,912 1,853,359 - out of which these are dilutive 0 0 72,000 - out of which these are anti-dilutive 2,019,368 1,709,912 1,781,359

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2020
Intangible assets
Summary of amortization periods of intangible assets	· License, rights and patents: Based on lifetime of patent etc. · Intellectual property: 10 years · Physician relationsship: 8 years
Summary of intangible assets	Licenses Intellectual Physician DKK thousand rights and patents property relationship Cost at January 1, 2020 2,480 0 0 Additions due to business combinations, cf. note 29 0 13,692 68,459 Additions 0 0 0 Currency translation 50 0 (7,883) Cost at December 31, 2020 2,530 13,692 60,576 Amortization at January 1, 2020 0 0 0 Amortization for the year 0 957 5,901 Impairment, cf. note 12 0 12,735 0 Currency translation 0 0 (280) Amortization at December 31, 2020 0 13,692 5,621 Carrying amount at December 31, 2020 2,530 0 54,955 Amortization and impairment for the financial year has been charged as: Research and development expenses 0 0 0 Administrative expenses 0 0 0 Sale and marketing expenses 0 13,692 5,901 Total 0 13,692 5,901 Cost at January 1, 2019 0 0 0 Additions 2,480 0 0 Cost at December 31, 2019 2,480 0 0 Amortization at January 1, 2019 0 0 0 Amortization at December 31, 2019 0 0 0 Carrying amount at December 31, 2019 2,480 0 0 Amortization for the financial year has been charged as: Research and development expenses 0 0 0 Sale and marketing expenses 0 0 0 Administrative expenses 0 0 0 Total 0 0 0

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2020
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, 2020 57,153 12,501 13,773 14,001 Transfer 0 0 13,796 (13,796) Addition from business combinations 33,875 2,572 1,707 2,984 Additions 8,479 1,566 14,889 109 Retirements (5,935) (985) (9,856) Currency translation (7,674) (375) (205) (275) Cost at December 31, 2020 85,898 15,279 34,104 3,023 Accumulated depreciation at January 1, 2020 43,696 4,164 9,860 Transfer 0 Depreciation for the year 4,974 2,301 2,301 Retirements (4,304) (985) (9,804) Currency translation (379) 1,462 (22) Accumulated depreciation at December 31, 2020 43,987 6,942 2,335 Carrying amount at December 31, 2020 41,911 8,337 31,769 3,023 Depreciation for the financial year has been charged as: Research and development expenses (4,128) (1,378) (1,910) Administrative expenses (846) (282) (391) Sale and marketing expenses 0 (640) Total (4,974) (2,301) (2,301) 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 Sale and marketing expenses 0 0 0 0 Total 3,483 1,085 157 0

Right-of-use assets and lease_2

Right-of-use assets and lease liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Right-of-use assets and lease liabilities
Summary of amounts recognised in the statement of financial position	The statement of financial position shows the following amounts relating to right-of-use assets: Office fixtures DKK thousand Other Buildings and fittings As at January 1, 2020 84,148 1,484 Additions due to business combination, cf. note 29 14,299 0 Additions 42,725 581 Retirements (6,035) (144) Reversal of depreciations 6,035 0 Depreciation expense (12,779) (744) Currency translation (1,572) 0 As at December 31, 2020 126,821 1,177 As at January 1, 2019 7,750 2,298 Additions 84,122 280 Depreciation expense (7,724) (1,094) As at December 31, 2019 84,148 1,484 Set out below are the carrying amounts of lease liabilities and the movements during the period. 2020 2019 As at January 1 85,760 10,048 Additions due to business combinations, cf. note 29 14,046 0 Additions 43,151 83,521 Accretion of interest 2,763 621 Payments (14,098) (8,430) Currency translation (1,503) 0 As at December 31 130,119 85,760 Current 14,072 7,692 Non-current 116,047 78,068 The following are the amounts recognised in income statement: Depreciation expense of right-of-use assets (13,524) (8,818) Interest expense on lease liabilities (2,763) 621 Total amount recognised in profit and loss (16,287) (9,439) Cashflow (14,098) (8,430) Total cash outflow for leases (14,098) (8,430) Depreciation for the financial year has been charged as: Research and development expenses (10,001) (7,583) Administrative expenses (3,523) (1,235) Sale and marketing expenses 0 0 Total (13,524) (8,818)

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2020
Inventories
Schedule of inventories	DKK thousand 2020 2019 Raw materials 14,398 0 Work in process 13,723 0 Finished goods 36,919 0 Total 65,040 0 Direct costs 48,224 0 Indirect production costs 16,816 0
Summary of write downs recognized on inventories	DKK thousand 2020 2019 Accumulated write downs, January 1 0 0 Addition from business combination, cf. note 29 (11,294) 0 Write downs in the reporting period 486 0 Reversals or utilization of write downs 3,860 0 Exchange differences 0 0 Accumulated write downs, December 31 (6,948) 0

Other receivables (Tables)

Other receivables (Tables)	12 Months Ended
	Dec. 31, 2020
Other receivables
Schedule of other receivables	DKK thousand 2020 2019 VAT 3,887 5,437 Other 6,055 2,498 Total other receivables 9,942 7,935

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2020
Cash and cash equivalents
Schedule of cash and cash equivalents	DKK thousand 2020 2019 DKK 286,222 732,405 USD 568,444 306,748 EUR 105,555 41,907 Total cash and cash equivalents 960,221 1,081,060

Share capital (Tables)

Share capital (Tables)	12 Months Ended
	Dec. 31, 2020
Share capital
Summary of share reconciliation	No, of shares (thousand) 2020 2019 January 1 36,055 30,787 Increase due to issue of new shares 3,745 5,268 December 31 39,800 36,055

Deferred revenue (Tables)

Deferred revenue (Tables)	12 Months Ended
	Dec. 31, 2020
Deferred revenue
Summary of liabilities related to contracts with customers	DKK thousand 2020 2019 Deferred revenues at January 1 139,890 0 Customer payment received, cf. note 2. 0 177,315 Revenue recognized during the year (42,881) (37,425) Total deferred revenue 97,769 139,890 Non-current deferred revenue 44,587 83,639 Current deferred revenue 53,182 56,251 97,769 139,890

Provision (Tables)

Provision (Tables)	12 Months Ended
	Dec. 31, 2020
Provision
Schedule of provision	Provision Provision for sales for product 2020 2019 DKK thousand rebates returns total total Provision at the beginning of the year 0 0 0 0 Addition due to acquisition cf note 29 4,343 2,626 6,969 0 Adjustments for the year 137,104 217 137,321 0 Utilization during the period (102,521) (1,245) (103,766) 0 Reversal of provisions from previous years 0 (1,184) (1,184) 0 Currency translation adjustments (2,493) (175) (2,668) 0 Provision at year-end 36,433 239 36,673 0

Other liabilities (Tables)

Other liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Other liabilities
Schedule of other liabilities	DKK thousand 2020 2019 Employee benefits 101,028 36,082 Royalty payable to third party 5,732 6,843 Development project costs 28,267 16,329 Other payables 32,272 13,790 Total other liabilities 167,299 73,044 Current 150,555 73,044 Non-current 16,744 0

Financial risks (Tables)

Financial risks (Tables)	12 Months Ended
	Dec. 31, 2020
Financial risks
Schedule of effect on profit/loss and equity of reasonably likely change in financial variable	2020 2019 DKK thousand Fluctuation Effect Fluctuation Effect USD +/-10% 58,124 +/-10% 30,657
Schedule of contractual maturity	DKK thousand <12 months 1-5 Years >5 Years Total Trade payables 71,442 0 0 71,442 Leasing 14,072 53,039 76,354 146,465 Other liabilities 150,555 16,744 0 167,299 Total financial liabilities at December 31, 2020 236,069 69,783 76,354 382,209 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
Schedule of financial instrument carried at fair value	DKK thousand 2020 2019 Categories of financial instruments Deposits 16,650 9,012 Trade receivables 46,484 751 Other receivables 9,942 7,935 Cash and cash equivalents 960,221 1,081,060 Financial assets at amortized costs 1,033,297 1,098,758 Marketable securities 297,345 299,448 Other investments 32,333 35,632 Financial assets measured at fair value through profit or loss 329,678 335,080 Lease liabilities 130,119 85,760 Trade payables 70,384 57,533 Other liabilities 167,299 73,044 Financial liabilities measured at amortized cost 367,802 216,337

Business combinations (Tables)

Business combinations (Tables)	12 Months Ended
	Dec. 31, 2020
Business combinations
Schedule of fair values of the identifiable assets and liabilities of valeritas	Fair value recognized on DKK thousand acquisition Assets Physician Relationship 68,459 V-Go IP 13,692 Property, plant and equipment 41,138 Right-of-use assets 14,299 Inventories 55,796 Trade receivables 50,603 Other assets 10,132 Cash and cash equivalents 66 Liabilities Deferred tax liability (11,880) Trade payables (4,050) Lease liabilities (14,046) Other liabilities (19,792) Total identifiable net assets at fair value 204,417 Bargain purchase recognized (36,692) Purchase consideration transferred 167,725 Analysis of cash flows on acquisition: Net cash acquired (included in cash flows from investing activities) 66 Cash paid (167,725) Net cash flow on acquisition (167,659)

Adjustments for non cash items

Adjustments for non cash items (Tables)	12 Months Ended
	Dec. 31, 2020
Adjustments for non-cash items
Schedule of adjustments for non cash items	DKK thousand 2020 2019 2018 Depreciation, amortization and impairment 42,692 13,682 4,508 Sharebased compensation expenses 30,485 14,763 17,474 Income tax income (5,543) (5,999) 0 Income tax expense 15,408 614 43,773 Financial income (1,127) (9,306) 0 Financial expenses 3,511 3,390 19,736 Non paid royalty expenses regarding sale of future royalties and milestones 0 0 6,575 Exchange rate adjustments 57,712 (7,937) 9,864 Total adjustments 143,138 9,207 101,930

Change in working capital (Tabl

Change in working capital (Tables)	12 Months Ended
	Dec. 31, 2020
Change in working capital
Schedule of change in working capital	DKK thousand 2020 2019 2018 (Increase)/decrease in receivables (7,716) (21,059) (471) (Increase)/decrease in Inventory (14,404) 0 0 Increase/(decrease) in payables and other liabilities 119,938 17,061 13,256 Adjustment for non-cash investing activities 0 (7,932) 0 Cash outflow for investment in Beta Bionics 0 22,803 0 Change in working capital 97,818 10,873 12,785

Business overview (Details)

Business overview (Details) kr in Thousands, $ in Millions	Sep. 17, 2018USD ($)	Sep. 17, 2018DKK (kr)	Dec. 31, 2020DKK (kr)itemproduct	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)	Dec. 31, 2020USD ($)	Dec. 31, 2020DKK (kr)
Overview of Business
Products advanced into clinical development | item			10
Products which have reached market | product			2
Other income | kr			kr 36,997	kr 444	kr 1,099,526
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%
Zealand Pharma California US, LLC.
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 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%
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%
Sanofi
Overview of Business
Other income	$ 205	kr 1,310,200
Estimated effect of potential milestone						$ 15	kr 15,000

Significant accounting polici_3

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

Revenue (Details)

Revenue (Details) kr in Thousands, € in Millions, $ in Millions	Sep. 17, 2018	Sep. 06, 2018USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2020EUR (€)	Dec. 31, 2020DKK (kr)	Dec. 31, 2019USD ($)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018EUR (€)	Dec. 31, 2018DKK (kr)	Dec. 31, 2014	Dec. 31, 2003USD ($)	Dec. 31, 2017DKK (kr)
Revenue:
Share premium.					kr 3,470,787		kr 2,650,142
License and milestone revenue					192,001		41,333		kr 13,119
Total revenue from sale of goods					161,300
Total revenue					353,314		41,333		37,977
Equity					1,229,311		1,242,673		1,116,281			kr 514,669
Cash flows from (used in) financing activities					760,941		674,480		(155,449)
Cash flows from (used in) operating activities					(688,716)		(409,455)		(461,420)
Reductions*					(142,345)		0		0
Cost of goods sold					90,565		0		0
Sales and marketing expenses					285,256		0		0
Royalty payable (as a percent)	13.50%
Royalty revenue					0		0		24,848
Non-current assets					342,261		172,464
Germany
Revenue:
License and milestone revenue					149,100
Germany | Customer A
Revenue:
Cost of goods sold					60,600		0
Germany | Customer B
Revenue:
Cost of goods sold					48,400		0
Germany | Customer C
Revenue:
Cost of goods sold					37,700		0
Denmark
Revenue:
Non-current assets					184,000
US
Revenue:
Total revenue					204,200
Non-current assets					71,100
V-Go
Revenue:
Total revenue from sale of goods					161,313		0		0
Gross sales					303,658		0		0
Milestone payment and license option payments
Revenue:
License and milestone revenue									9,800
Total revenue recognized over time
Revenue:
Royalty revenue					42,881		38,021		0
Total revenue recognized at a point in time
Revenue:
Royalty revenue					310,433		3,312		37,977
Boehringer Ingelheim
Revenue:
License and milestone revenue					149,120		0		0
Term										4 years 6 months
Boehringer Ingelheim | Advance novel glucagon
Revenue:
Maximum amount of milestone payments to be received | €				€ 386
Outstanding milestone payments | €				€ 345
Alexion
Revenue:
Equity investment from counterparty | $			$ 15
Share premium.					12,700
Consideration received						$ 40	262,900
License and milestone revenue			25		42,881		38,021		0
Total revenue					42,900		37,400
Deferred revenue					97,800
Other revenue							600
Alexion | Research and development agreement
Revenue:
License and milestone revenue					kr 42,900		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
Alexion | Alexion deferred
Revenue:
Total revenue							37,400
Equity							85,600
Deferred revenue							139,900
Cash flows from (used in) financing activities							85,600
Cash flows from (used in) operating activities							177,300
Inventor or SIP Technology
Revenue:
Royalty payable (as a percent)				0.50%	0.50%
Undisclosed counterpart
Revenue:
License and milestone revenue					kr 0		3,312		9,845
Protagonist Therapeutics
Revenue:
License and milestone revenue					kr 0		0		3,274
Sanofi
Revenue:
License and milestone revenue | $											$ 100
Royalty payable (as a percent)				13.00%	13.00%
Royalty receivable (as percent of net sales)											10.00%
Royalty revenue					kr 0		0		24,858
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					0		0		7,072
Sales by counterparty as basis for royalty revenue | €								€ 9.5
Sanofi | Soliqua
Revenue:
Royalty revenue					kr 0		kr 0		kr 17,786
Sales by counterparty as basis for royalty revenue | €								€ 23.8

Revenue - Sales gross-to-net re

Revenue - Sales gross-to-net reconciliation (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of disaggregation of revenue from contracts with customers [line items]
Net sales	kr 161,300
V-Go
Disclosure of disaggregation of revenue from contracts with customers [line items]
Gross sales	303,658	kr 0	kr 0
Customer and Contractual price reductions	133,924	0	0
Returns and Sales Reductions	(8,421)	0	0
Net sales	kr 161,313	kr 0	kr 0

Royalty expenses (Details)

Royalty expenses (Details)	Sep. 17, 2018	Dec. 31, 2020
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%

Research, development, sales,_3

Research, development, sales, marketing and administrative expenses (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Research, development, sales, marketing and administrative expenses
Staff costs (note 6)	kr (204,210)	kr (178,089)	kr (153,601)
Depreciation and impairment losses, property, plant and equipment and right-of-use assets (note 14,15)	(17,417)	(4,422)	(4,423)
Other external research and development costs	(382,454)	(378,912)	(280,195)
Total research and development costs	kr (604,081)	kr (561,423)	kr (438,219)

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, 2020	Dec. 31, 2019	Dec. 31, 2018
Audit fees:
Audit	kr 5,941	kr 1,847	kr 1,661
Audit-related services and other assurance engagements	1,002	1,731	718
Tax advice	0	0	106
Other	0	12	0
Total fees	kr 6,943	kr 3,590	kr 2,485

Information on staff and remu_3

Information on staff and remuneration (Details)	12 Months Ended
	Dec. 31, 2020DKK (kr)employee	Dec. 31, 2019DKK (kr)employee	Dec. 31, 2018DKK (kr)employee
Total staff costs can be specified as follows:
Wages and salaries	kr 337,295,000	kr 175,104,000	kr 141,661,000
Sharebased payment costs	30,485,000	14,764,000	17,474,000
Pension schemes (defined contribution plans)	16,716,000	13,430,000	11,065,000
Other payroll and staff-related costs	37,241,000	14,932,000	9,783,000
Total staff salaries	421,737,000	218,230,000	179,983,000
The amount is charged as:
Research and development expenses	204,210,000	178,089,000	153,601,000
Sale and marketing expenses	130,568,000	0	0
Administrative expenses	78,639,000	40,141,000	26,382,000
Cost of goods sold	3,713,000	0	0
Inventory	4,607,000	0	0
Total staff salaries	kr 421,737,000	kr 218,230,000	kr 179,983,000
Average number of employees | employee	297	173	146
Remuneration to the Board of Directors
Base board fee	kr 4,584,000	kr 3,884,000	kr 2,783,000
Committee fees	433,000	400,000	400,000
Total fees	5,017,000	4,284,000	3,183,000
Martin Nicklasson
Remuneration to the Board of Directors
Base board fee	750,000	750,000	650,000
Committee fees	100,000	100,000	100,000
Total fees	850,000	850,000	750,000
Kirsten Drejer
Remuneration to the Board of Directors
Base board fee	500,000	467,000	200,000
Committee fees	0	0	0
Total fees	500,000	467,000	200,000
Alain Munoz
Remuneration to the Board of Directors
Base board fee	400,000	400,000	300,000
Committee fees	50,000	50,000	50,000
Total fees	450,000	450,000	350,000
Michael Owen
Remuneration to the Board of Directors
Base board fee	400,000	400,000	300,000
Committee fees	50,000	50,000	50,000
Total fees	450,000	450,000	350,000
Bernadette Mary Connaughton
Remuneration to the Board of Directors
Base board fee	400,000	267,000	0
Committee fees	33,000	0	0
Total fees	433,000	267,000	0
Jeffrey Berkowitz
Remuneration to the Board of Directors
Base board fee	400,000	267,000	0
Committee fees	50,000	33,000	0
Total fees	450,000	300,000	0
Leonard Kruimer
Remuneration to the Board of Directors
Base board fee	400,000	267,000	0
Committee fees	150,000	100,000	0
Total fees	550,000	367,000	0
Jens Peter Stenvang
Remuneration to the Board of Directors
Base board fee	400,000	400,000	300,000
Committee fees	0	0	0
Total fees	400,000	400,000	300,000
Gertrud Koefoed Rasmussen
Remuneration to the Board of Directors
Base board fee	267,000	0	0
Committee fees	0	0	0
Total fees	267,000	0	0
Frederik Barfoed Back
Remuneration to the Board of Directors
Base board fee	267,000	0	0
Committee fees	0	0	0
Total fees	267,000	0	0
Iben Louise Gjelstrup
Remuneration to the Board of Directors
Base board fee	267,000	0	0
Committee fees	0	0	0
Total fees	267,000	0	0
Hanne Heidenheim Bak
Remuneration to the Board of Directors
Base board fee	133,000	400,000	300,000
Committee fees	0	0	0
Total fees	133,000	400,000	300,000
Rosemary Crane
Remuneration to the Board of Directors
Base board fee	0	133,000	333,000
Committee fees	0	17,000	50,000
Total fees	0	150,000	383,000
Catherine Moukheibir
Remuneration to the Board of Directors
Base board fee	0	133,000	300,000
Committee fees	0	50,000	150,000
Total fees	0	183,000	450,000
Helle Haxgart
Remuneration to the Board of Directors
Base board fee	0	0	100,000
Committee fees	0	0	0
Total fees	kr 0	kr 0	kr 100,000

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, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of transactions between related parties
Base salary	kr 17,024	kr 15,454	kr 13,499
Short term Bonus	8,463	13,885	6,197
Pension contribution	1,932	1,755	1,285
Other short term benefits	1,282	1,296	1,628
Share based compensation expenses	9,945	6,867	6,359
Total	38,646	39,257	28,968
Executive management
Disclosure of transactions between related parties
Base salary	10,638	8,895	6,810
Short term Bonus	5,724	11,305	3,544
Pension contribution	1,619	1,366	681
Other short term benefits	996	1,250	593
Share based compensation expenses	6,522	4,895	1,888
Total	25,499	27,711	13,516
EVP, R&D and CMO
Disclosure of transactions between related parties
Base salary	2,967	2,807
Short term Bonus	1,266	1,032
Pension contribution	593	505
Other short term benefits	282	269
Share based compensation expenses	2,281	2,304
Total	7,389	6,917
Former CFO (resigned 2/28/2019)
Disclosure of transactions between related parties
Base salary		1,745	4,189
Short term Bonus		419	2,513
Pension contribution		175	419
Other short term benefits		60	320
Share based compensation expenses		0	0
Total		2,399	7,441
Former CFO (resigned 3/28/2019)
Disclosure of transactions between related parties
Base salary		655	2,621
Short term Bonus		248	1,031
Pension contribution		66	262
Other short term benefits		61	273
Share based compensation expenses		1,677	1,888
Total		2,707	6,075
Chief Executive Officer
Disclosure of transactions between related parties
Base salary	4,950	3,100
Short term Bonus	3,267	9,072
Pension contribution	990	620
Other short term benefits	699	855
Share based compensation expenses	2,534	832
Total	12,440	14,479
Chief Financial Officer
Disclosure of transactions between related parties
Base salary	2,721	588
Short term Bonus	1,191	534
Pension contribution	36	0
Other short term benefits	15	5
Share based compensation expenses	1,707	82
Total	5,670	1,209
Other Corporate Management
Disclosure of transactions between related parties
Base salary	6,386	6,559	6,689
Short term Bonus	2,739	2,580	2,653
Pension contribution	313	389	604
Other short term benefits	286	46	1,035
Share based compensation expenses	3,423	1,972	4,471
Total	kr 13,147	kr 11,546	kr 15,452

Information on staff and remu_5

Information on staff and remuneration - Employee incentive programs (Details)	12 Months Ended
	Dec. 31, 2020DKK (kr)kr / shares	Dec. 31, 2020EquityInstrumentsDKK (kr)kr / shares	Dec. 31, 2020DKK (kr)kr / shares	Dec. 31, 2020DKK (kr)kr / shares	Dec. 31, 2019EquityInstruments	Dec. 31, 2019EquityInstruments	Dec. 31, 2019EquityInstrumentskr / shares	Dec. 31, 2019EquityInstrumentsDKK (kr)	Dec. 31, 2018EquityInstrumentsDKK (kr)kr / shares	Dec. 31, 2019kr / shares	Dec. 31, 2019DKK (kr)
Disclosure of Information on staff and remuneration
Maximum years of options granted (In years)									P36M
Number of warrants, outstanding at the beginning of the period | EquityInstruments		1,709,912				1,853,359
Number of warrants, outstanding at the end of the period | EquityInstruments		2,019,368				1,709,912			1,853,359
Weighted-average share price at the date of exercise | kr / shares	kr 234.7	kr 234.7	kr 234.7	kr 234.7						kr 160.7
Weighted-average exercise price for expired during the period | kr / shares			101.2				kr 0
Weighted-average exercise price for forfeited during the period | kr / shares			169.2				125.4
Cost price | kr / shares			kr 48.4				kr 41.90		kr 32.80
10 year employee warrant incentive program
Disclosure of Information on staff and remuneration
Maximum years of options granted (In years)	10 years
Number of warrants, outstanding at the beginning of the period				0				0
Number of warrants, granted during the period				63,217				0
Number of warrants, forfeited during the period				0				0
Number of warrants, exercised during the period				0				0
Number of warrants, expired during the period				0				0
Number of warrants, outstanding at the end of the period				63,217				0	0
Number of warrants, exercisable at the end of the period	0	0	0	0							0
Warrants, Exercise price | kr / shares	kr 216.8	kr 216.8	kr 216.8	kr 216.8						0
Weighted-average remaining contractual life	9 years 6 months				0 years
2010 employee warrant incentive program
Disclosure of Information on staff and remuneration
Maximum years of options granted (In years)	5 years
Number of warrants, outstanding at the beginning of the period				42,359				218,359
Number of warrants, granted during the period		2,355,495		0				0
Number of warrants, forfeited during the period				0				0
Number of warrants, exercised during the period				(42,359)		(1,798,168)		(176,000)
Number of warrants, expired during the period				0				0
Number of warrants, outstanding at the end of the period				0				42,359	218,359
Number of warrants, exercisable at the end of the period	0	0	0	0	0	0	0	0			42,359
Weighted-average remaining contractual life	0 years				3 months 18 days
2010 employee warrant incentive program | Minimum
Disclosure of Information on staff and remuneration
Warrants, Exercise price | kr / shares	kr 101.2	kr 101.2	kr 101.2	kr 101.2						101.2
2010 employee warrant incentive program | Maximum
Disclosure of Information on staff and remuneration
Warrants, Exercise price | kr / shares	kr 127.1	kr 127.1	kr 127.1	kr 127.1						127.1
2015 employee warrant incentive program
Disclosure of Information on staff and remuneration
Maximum years of options granted (In years)	5 years
Number of warrants, outstanding at the beginning of the period				1,647,788				1,635,000
Number of warrants, granted during the period		3,419,883		631,288				641,029
Number of warrants, forfeited during the period		(873,079)		(53,747)				(314,266)
Number of warrants, exercised during the period		(2,032,218)		(276,409)				(313,975)
Number of warrants, expired during the period		40,000		(40,000)				0
Number of warrants, outstanding at the end of the period				1,908,920				1,647,788	1,635,000
Number of warrants, exercisable at the end of the period	301,529	301,529	301,529	301,529	1,908,920	1,908,920	1,908,920	1,908,920			300,725
Weighted-average remaining contractual life	4 years 10 months 24 days				2 years 3 months 18 days
2015 employee warrant incentive program | Minimum
Disclosure of Information on staff and remuneration
Warrants, Exercise price | kr / shares	kr 90	kr 90	kr 90	kr 90						90
2015 employee warrant incentive program | Maximum
Disclosure of Information on staff and remuneration
Warrants, Exercise price | kr / shares	224.4	224.4	224.4	224.4						142.5
Employee warrant programs
Disclosure of Information on staff and remuneration
Weighted-average exercise price for outstanding during the period | kr / shares	kr 158.50	kr 158.50	kr 158.50	kr 158.50						kr 124.50
Executive management | 10 year employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period				0
Number of warrants, outstanding at the end of the period				0				0
Executive management | 2010 employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the end of the period				0
Weighted-average remaining contractual life					0 years
Executive management | 2015 employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the end of the period				373,409
Weighted-average remaining contractual life					372171 years

Information on staff and remu_6

Information on staff and remuneration - Determination of fair value of the warrants granted (Details) - item	Apr. 19, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Information on staff and remuneration
Spread on closing price of shares on Nasdaq Copenhagen (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		0.028%
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		3.00%
Percentage of warrants vesting after three year from the date of grant		0.34%
Frequency of exercises of warrants		4
Period for calculating the volatility rate				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		7 years	2 years

Information on staff and remu_7

Information on staff and remuneration - Fair Value of the warrants Compensation (Details)	12 Months Ended
	Dec. 31, 2020DKK (kr)kr / shares	Dec. 31, 2019DKK (kr)kr / shares	Dec. 31, 2018DKK (kr)kr / shares
Disclosure of Information on staff and remuneration
Term (months)			P36M
Cost price	kr 48.4	kr 41.90	kr 32.80
Minimum
Disclosure of Information on staff and remuneration
Weighted average share price	216.8	127	90
Options, Exercise price	kr 224.1	kr 127	kr 90
Volatility	44.68%	41.90%	42.50%
Risk-free interest rate	(0.31%)	(0.45%)	(0.03%)
No granted | kr	631,288	641,029	655,500
Maximum
Disclosure of Information on staff and remuneration
Term (months)	P78M	P48M
Weighted average share price	kr 224.4	kr 220	kr 100.80
Options, Exercise price		kr 220	kr 100.8
Volatility	46.45%	43.50%	42.60%
Risk-free interest rate	(0.41%)	(0.63%)	0.05%
Cost price	kr 95.4	kr 69.50	kr 37
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Term (months)	P36M
Cost price	kr 216.8
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program | Minimum
Disclosure of Information on staff and remuneration
Weighted average share price	185.9
Options, Exercise price	kr 0
No granted | kr	21,602
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program | Maximum
Disclosure of Information on staff and remuneration
Weighted average share price	kr 220.5
Cost price	kr 224.4
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Term (months)		P36M
Cost price		kr 138.6
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program | Minimum
Disclosure of Information on staff and remuneration
Weighted average share price		127.30
Options, Exercise price		kr 0
No granted | kr		22,915

Information on staff and remu_8

Information on staff and remuneration - Effect on income statement (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of Information on staff and remuneration
Fair value of warrants, RSUs and PSUs recognized in the income statement	kr 30,500	kr 14,800	kr 17,500
Fair value of PSUs recognized	900
Fair value of RSUs recognized	1,100
Research and development expenses	14,005	12,191	13,919
Sale and Marketing expenses	6,045	0	0
Administrative expenses	10,435	2,573	3,555
Total	30,485	14,764	17,474
Executive management
Disclosure of Information on staff and remuneration
Fair value of warrants, RSUs and PSUs recognized in the income statement	kr 6,500	kr 3,200	kr 1,900

Information on staff and remu_9

Information on staff and remuneration - Employee incentive programs 2010 and 2015 (Details)	12 Months Ended
	Dec. 31, 2020DKK (kr)EquityInstrumentsshares	Dec. 31, 2019DKK (kr)EquityInstruments	Dec. 31, 2018DKK (kr)	Dec. 31, 2017DKK (kr)	Sep. 14, 2020shares	Apr. 30, 2020shares	Apr. 15, 2020shares	Dec. 31, 2019DKK (kr)	Nov. 02, 2015shares
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Remaining number of warrants that can be granted | shares	27,466				5,864		21,602
Proceeds from exercise of warrants	kr 6,100,000
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Proceeds from exercise of warrants	kr 3,200,000
The average traded share price on the exercise date | shares	22,915
2010 employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants authorized | shares									2,750,000
Number of warrants, granted during the period	2,355,495	0
Number of warrants, exercised or vested	42,359	1,798,168
Number of warrants, expired	0	0
Number of warrants, forfeited	0	0
Proceeds from exercise of warrants	kr 150,200,000		kr 145,100,000	kr 127,400,000
Number of warrants, exercisable at the end of the period	0	0						42,359
2015 employee warrant incentive program
Disclosure of Information on staff and remuneration
Number of warrants authorized | shares						2,750,000
Number of warrants, granted during the period	3,419,883	641,029
Number of warrants, exercised or vested	2,032,218	313,975
Number of warrants, expired	(40,000)	0
Number of warrants, forfeited	873,079	314,266
Proceeds from exercise of warrants	kr 72,100,000		35,500,000	kr 800,000
Number of warrants, exercisable at the end of the period	301,529	1,908,920						300,725
2020 employee incentive program
Disclosure of Information on staff and remuneration
Number of warrants authorized | shares	821,544
Number of warrants, granted during the period	63,217
Remaining number of warrants that can be granted | shares	758,327
Proceeds from exercise of warrants	kr 0	kr 0	kr 0

Information on staff and rem_10

Information on staff and remuneration - 2019 Long-term incentive program (Details) - EquityInstruments	Jun. 13, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period		1,709,912	1,853,359
Number of warrants, outstanding at the end of the period		2,019,368	1,709,912
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period		0	0
Number of warrants, outstanding at the end of the period		27,466	0
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period		19,765	0
Number of warrants, outstanding at the end of the period		19,765	19,765
2019 Long-term incentive program
Disclosure of Information on staff and remuneration
Maximum percentage of PSUs expected to grant annually		10.00%
Number of warrants, granted during the period	22,915
Number of warrants, outstanding at the end of the period		19,765
2019 Long-term incentive program | Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period		0	0
Number of warrants, granted during the period		27,466	0
Number of warrants, exercised or vested		0	0
Number of warrants, forfeited during the period		0	0
Number of warrants, outstanding at the end of the period		27,466	0
2019 Long-term incentive program | Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Disclosure of Information on staff and remuneration
Number of warrants, outstanding at the beginning of the period		19,765	0
Number of warrants, granted during the period		0	22,915
Number of warrants, exercised or vested		0	0
Number of warrants, forfeited during the period		0	(3,150)
Number of warrants, outstanding at the end of the period		19,765	19,765

Other operating items, net (Det

Other operating items, net (Details) kr in Thousands, $ in Millions	Apr. 02, 2020DKK (kr)	Sep. 17, 2018USD ($)	Sep. 17, 2018DKK (kr)	Sep. 06, 2018USD ($)	Dec. 31, 2020DKK (kr)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)	Dec. 31, 2020USD ($)	Dec. 31, 2020DKK (kr)
Other operating income
Government grants					kr 602	kr 444	kr 630
Gain from Bargain Purchase	kr 36,692				36,395	0	0
Gross proceeds from sale of future royalties and milestones					0	0	1,310,237
Royalty expenses regarding the above sale of future royalties and milestones			kr 176,900		0	0	(176,882)
Fee, advisors regarding the above sale of future royalties and milestones			kr 34,500		0	0	(34,459)
Total other operating income					kr 36,997	kr 444	kr 1,099,526
Royalty payable (as percent)		13.50%	13.50%
Sanofi
Other operating income
Total other operating income		$ 205	kr 1,310,200
Estimated effect of potential milestone								$ 15	kr 15,000
Royalty payable (as percent)					13.00%
Royalty Pharma
Other operating income
Potential milestone receivable | $				$ 85

Financial income (Details)

Financial income (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial income
Interest income from financial assets measured at amortized costs	kr 895	kr 5,413	kr 4,263
Fair value adjustments of other investments and marketable securities, cf note 21	936	2,846	0
Exchange rate adjustments	0	5,518	4,705
Dividend, Marketable securities	191	878	1,020
Total financial income	kr 2,022	kr 14,655	kr 9,988

Financial expenses (Details)

Financial expenses (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial expenses
Interest expenses from liabilities at amortized costs	kr 2,895	kr 3,205	kr 15,080
Amortization of financing costs	0	0	18,347
Fair value adjustments of marketable securities, cf. note 21	2,103	0	1,389
Loss on sale of marketable securities, cf. note 21	0	0	881
Other financial expenses	4,829	185	1,625
Exchange rate adjustments	39,487	0	0
Total financial expenses	kr 49,314	kr 3,390	kr 37,322

Income tax (Details)

Income tax (Details) - DKK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income tax
Skattekreditordningen R&D tax credit,max	kr 25
Tax value of research and development expenses	5.5
Income tax receipt	5.5	kr 5.5	kr 0
Tax losses	kr 183	kr 108	kr 0

Income tax - Reconciliation of

Income tax - Reconciliation of income tax (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income tax
Net result for the year before tax	kr (839,653)	kr (576,677)	kr 625,051
Corporate tax rate in Denmark	22.00%	22.00%	22.00%
Expected tax benefit/(expenses)	kr 184,724	kr 126,869	kr (137,511)
Adjustment for foreign tax rates	(769)	0	0
Adjustment for non-deductible expenses	1,927	(947)	(65)
Adjustment for non-taxable income	(6,844)	964	0
Adjustment for exercised warrants	11,522	(1,653)	(2,228)
Adjustment for R&D extra deduction	(8,811)	1,676	1,427
Tax effect on exercise of warrants	(5,592)	6,092	8
Tax effect on expired warrants	(118)	175	151
Warrant - share price development	(3,425)	4,050	0
Adjustment to prior years	931	0	0
Change in tax assets (not recognized)	(180,621)	(132,090)	94,445
Total income tax expense/benefit	kr (7,076)	kr 5,136	kr (43,773)

Income tax - Specification of d

Income tax - Specification of deferred tax assets (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Specification of unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely)	kr 1,281,505	kr 681,531	kr 580,937
Research and development expenses	732,389	460,007	136,755
Intangible assets	40,373	35,849	35,849
Non-current assets	66,419	51,677	50,308
Liabilities	188,787	139,890	0
Other	58,483	70,306	79,986
Total temporary differences	2,365,956	1,439,260	883,835
Calculated potential deferred tax asset at local tax rate	514,239	316,637	194,444
Deferred tax asset not expected to be utilized	(505,869)	(316,637)	(194,444)
Recognized deferred tax asset	kr 8,370	kr 0	kr 0

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, 2020DKK (kr)EquityInstrumentskr / sharesshares	Dec. 31, 2019DKK (kr)EquityInstrumentskr / sharesshares	Dec. 31, 2018DKK (kr)EquityInstrumentskr / sharesshares
Basic and diluted result per share
Net result for the year | kr	kr (846,729)	kr (571,541)	kr 581,278
Net result used in the calculation of basic and diluted earnings/losses per share | kr	kr (846,729)	kr (571,541)	kr 581,278
Weighted average number of ordinary shares | shares	38,433,923	33,866,709	30,754,948
Weighted average number of treasury shares | shares	(64,223)	(64,223)	(64,223)
Weighted average number of ordinary shares used in the calculation of basic earnings per share | shares	38,369,700	33,802,486	30,690,725
Weighted average number of ordinary shares used in the calculation of diluted earnings per share | shares	38,369,700	33,802,486	30,696,404
Basic earnings/loss per share(DKK/share) | kr / shares	kr (22.07)	kr (16.91)	kr 18.94
Diluted earnings/loss per share (DKK/share) | kr / shares	kr (22.07)	kr (16.91)	kr 18.94
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	2,019,368	1,709,912	1,853,359
Out of which these are dilutive | shares	0	0	72,000
Out of which these are anti-dilutive | shares	2,019,368	1,709,912	1,781,359
2010 employee incentive program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	0	42,359	218,359
2015 employee incentive program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	1,908,920	1,647,788	1,635,000
2020 employee incentive program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	63,217	0	0
Outstanding Restricted Share Units (RSUs) under the LTIP 2019 program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	27,466	0	0
Outstanding Performance Share Units (PSUs) under the LTIP 2019 program
Potential ordinary shares excluded or included due to anti-dilutive effect
Total outstanding warrants | EquityInstruments	19,765	19,765	0

Impairment (Details)

Impairment (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of impairment loss and reversal of impairment loss [line items]
Impairment loss	kr 0	kr 0	kr 0
V-Go | Intellectual property
Disclosure of impairment loss and reversal of impairment loss [line items]
Impairment loss	kr 12,700	kr 0
Terminal growth rate	50.00%
Pre-tax discount rate	13.00%

Intangible assets - Amortizatio

Intangible assets - Amortization periods of intangible assets (Details)	12 Months Ended
	Dec. 31, 2020
Intellectual property
Disclosure of detailed information about intangible assets [line items]
Amortization period	10 years
Physician relationship
Disclosure of detailed information about intangible assets [line items]
Amortization period	8 years

Intangible assets - Changes (De

Intangible assets - Changes (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	kr 2,480
Balance at the end	57,485	kr 2,480
Licenses, rights and patents
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	2,480
Balance at the end	2,530	2,480
Amortization and impairment for the financial year	0	0
Licenses, rights and patents | Research and development expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Licenses, rights and patents | Administrative expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Licenses, rights and patents | Sale and marketing expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Licenses, rights and patents | Carrying amount
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	2,480	0
Additions due to business combinations	0
Additions	0	2,480
Currency translation	50
Balance at the end	2,530	2,480
Licenses, rights and patents | Accumulated depreciation amortisation and impairment
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0	0
Amortization for the year	0
Impairment, cf note 12	0
Currency translation	0
Balance at the end	0	0
Intellectual property
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0
Balance at the end	0	0
Amortization and impairment for the financial year	13,692	0
Intellectual property | Research and development expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Intellectual property | Administrative expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Intellectual property | Sale and marketing expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	13,692	0
Intellectual property | Carrying amount
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0	0
Additions due to business combinations	13,692
Additions	0	0
Currency translation	0
Balance at the end	13,692	0
Intellectual property | Accumulated depreciation amortisation and impairment
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0	0
Amortization for the year	957
Impairment, cf note 12	12,735
Currency translation	0
Balance at the end	(13,692)	0
Physician relationship
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0
Balance at the end	54,955	0
Amortization and impairment for the financial year	5,901	0
Physician relationship | Research and development expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Physician relationship | Administrative expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	0	0
Physician relationship | Sale and marketing expenses
Reconciliation of changes in intangible assets other than goodwill [abstract]
Amortization and impairment for the financial year	5,901	0
Physician relationship | Carrying amount
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0	0
Additions due to business combinations	68,459
Additions	0	0
Currency translation	(7,883)
Balance at the end	60,576	0
Physician relationship | Accumulated depreciation amortisation and impairment
Reconciliation of changes in intangible assets other than goodwill [abstract]
Balance at the beginning	0	0
Amortization for the year	5,901
Impairment, cf note 12	0
Currency translation	(280)
Balance at the end	kr (5,621)	kr 0

Property, plant and equipment_2

Property, plant and equipment (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment
Impairment loss	kr 0	kr 0	kr 0
Changes in property, plant and equipment
Beginning of period	39,708
End of period	kr 85,040	39,708
Buildings | Minimum
Property, plant and equipment
Useful lives of asset (in years)	5 years
Buildings | 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 57,153	55,545
Transfer	0	0
Addition from business combinations	33,875
Additions	8,479	3,419
Depreciation for the year	4,974	3,483
Retirements	(5,935)	1,811
Currency translation	(7,674)
End of period	85,898	57,153	55,545
Depreciation for the financial year has been charged as:
Research and development expenses	(4,128)	3,483
Administrative expenses	(846)	0
Sale and marketing expenses	0	0
Total	kr (4,974)	(3,483)
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
Plant and machinery | Carrying amount
Changes in property, plant and equipment
Beginning of period	kr 13,457
End of period	41,911	13,457
Plant and machinery | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	(43,696)	(41,895)
Transfer	0	0
Depreciation for the year	4,974	3,483
Retirements	(4,304)	(1,682)
Currency translation	(379)
End of period	(43,987)	(43,696)	(41,895)
Depreciation for the financial year has been charged as:
Total	(4,974)	(3,483)
Office fixtures and fittings
Changes in property, plant and equipment
Beginning of period	12,501	5,130
Transfer	0	27
Addition from business combinations	2,572
Additions	1,566	7,630
Depreciation for the year	2,301	1,085
Retirements	(985)	286
Currency translation	(375)
End of period	15,279	12,501	5,130
Depreciation for the financial year has been charged as:
Research and development expenses	(1,378)	926
Administrative expenses	(282)	159
Sale and marketing expenses	(640)	0
Total	kr (2,301)	(1,085)
Office fixtures and fittings | Minimum
Property, plant and equipment
Useful lives of asset (in years)	3 years
Office fixtures and fittings | Maximum
Property, plant and equipment
Useful lives of asset (in years)	5 years
Office fixtures and fittings | Carrying amount
Changes in property, plant and equipment
Beginning of period	kr 8,337
End of period	8,337	8,337
Office fixtures and fittings | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	(4,164)	(3,336)
Transfer	0	27
Depreciation for the year	2,301	1,085
Retirements	(985)	(284)
Currency translation	1,462
End of period	(6,942)	(4,164)	(3,336)
Depreciation for the financial year has been charged as:
Total	(2,301)	(1,085)
Building improvements
Changes in property, plant and equipment
Beginning of period	13,773	10,800
Transfer	13,796	(27)
Addition from business combinations	1,707
Additions	14,889	3,918
Depreciation for the year	2,301	157
Retirements	(9,856)	918
Currency translation	(205)
End of period	34,104	13,773	10,800
Depreciation for the financial year has been charged as:
Research and development expenses	(1,910)	134
Administrative expenses	(391)	23
Sale and marketing expenses	0	0
Total	(2,301)	(157)
Building improvements | Carrying amount
Changes in property, plant and equipment
Beginning of period	3,913
End of period	31,769	3,913
Building improvements | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	(9,860)	(10,614)
Transfer	0	(27)
Depreciation for the year	2,301	157
Retirements	(9,804)	(884)
Currency translation	(22)
End of period	(2,335)	(9,860)	(10,614)
Depreciation for the financial year has been charged as:
Total	(2,301)	(157)
Assets under construction
Changes in property, plant and equipment
Beginning of period	14,001	0
Transfer	(13,796)	0
Addition from business combinations	2,984
Additions	109	14,001
Depreciation for the year	0	0
Retirements	0	0
Currency translation	(275)
End of period	3,023	14,001	0
Depreciation for the financial year has been charged as:
Research and development expenses	0	0
Administrative expenses	0	0
Sale and marketing expenses	0	0
Total	0	0
Assets under construction | Carrying amount
Changes in property, plant and equipment
Beginning of period	14,001
End of period	3,023	14,001
Assets under construction | Accumulated depreciation
Changes in property, plant and equipment
Beginning of period	0	0
Transfer	0	0
Depreciation for the year	0	0
Retirements	0	0
Currency translation	0
End of period	0	0	kr 0
Depreciation for the financial year has been charged as:
Total	kr 0	kr 0

Right-of-use assets and lease_3

Right-of-use assets and lease liabilities (Details)	12 Months Ended
	Dec. 31, 2020
Disclosure of quantitative information about right-of-use assets [line items]
Minimum period for rental contract	13 years
Buildings
Disclosure of quantitative information about right-of-use assets [line items]
Terminable period for rental contract	15 years
Equipment and vehicles
Disclosure of quantitative information about right-of-use assets [line items]
Extension option	true
Equipment and vehicles | Minimum
Disclosure of quantitative information about right-of-use assets [line items]
Minimum period for rental contract	3 years
Equipment and vehicles | Maximum
Disclosure of quantitative information about right-of-use assets [line items]
Minimum period for rental contract	4 years

Right-of-use assets and lease_4

Right-of-use assets and lease liabilities - Amounts recognized in the statement of financial position (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Right of use assets and lease liabilities
Right of use assets, beginning balance	kr 85,632
Depreciation expense	(13,524)	kr (8,818)
Right of use assets, ending balance	127,998	85,632
Lease liabilities, beginning balance	85,760	10,048
Additions due to business combinations, cf note 29	14,046	0
Additions	43,151	83,521
Accretion of interest	2,763	621
Payments	(14,098)	(8,430)
Currency translation	(1,503)	0
Lease liabilities, ending balance	130,119	85,760
Current	14,072	7,692
Non-current	116,047	78,068
The following are the amounts recognised in income statement:
Depreciation expense of right-of-use assets	13,524	8,818
Interest expense on lease liabilities	2,763	621
Total amount recognised in profit and loss	(16,287)	(9,439)
Cashflow	(14,098)	(8,430)
Depreciation for the financial year has been charged as:
Research and development expenses	(10,001)	(7,583)
Administrative expenses	(3,523)	(1,235)
Sale and marketing expenses	0	0
Total	(13,524)	(8,818)
Buildings
Right of use assets and lease liabilities
Right of use assets, beginning balance	84,148	7,750
Additions due to business combination, cf note 29	14,299
Additions	42,725	84,122
Retirements	(6,035)
Reversal of depreciations	6,035
Depreciation expense	(12,779)	(7,724)
Currency translation	(1,572)
Right of use assets, ending balance	126,821	84,148
The following are the amounts recognised in income statement:
Depreciation expense of right-of-use assets	12,779	7,724
Depreciation for the financial year has been charged as:
Total	(12,779)	(7,724)
Office fixtures and fittings
Right of use assets and lease liabilities
Right of use assets, beginning balance	1,484	2,298
Additions due to business combination, cf note 29	0
Additions	581	280
Retirements	(144)
Reversal of depreciations	0
Depreciation expense	(744)	(1,094)
Currency translation	0
Right of use assets, ending balance	1,177	1,484
The following are the amounts recognised in income statement:
Depreciation expense of right-of-use assets	744	1,094
Depreciation for the financial year has been charged as:
Total	kr (744)	kr (1,094)

Inventories (Details)

Inventories (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Inventories
Raw materials	kr 14,398	kr 0
Work in progress	13,723	0
Finished goods	36,919	0
Total	65,040	0
Direct costs	48,224	0
Indirect production costs	kr 16,816	kr 0

Inventories - Write downs recog

Inventories - Write downs recognized on inventories (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Inventories
Accumulated write downs, beginning balance	kr 0	kr 0
Addition from business combination, cf. 29	(11,294)	0
Write downs in the reporting period	486	0
Reversals or utilization of write downs	3,860	0
Exchange differences	0	0
Accumulated write downs ending balance	(6,948)	kr 0
Cost of goods sold	kr 90,600

Other investments (Details)

Other investments (Details) kr in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020DKK (kr)	Dec. 31, 2019DKK (kr)	Dec. 31, 2020USD ($)	Dec. 31, 2020DKK (kr)	Dec. 31, 2019USD ($)	Dec. 31, 2019DKK (kr)
Other investments
Other investments			$ 5.4	kr 32,333	$ 5.3	kr 35,632
Ownership interest, Beta (as a percent)	1.60%	1.60%
Fair value of other investments				kr 32,300		kr 35,600
Fair value adjustments of currency conversion	kr (3,300)	kr 800
Gain (loss) recognized within Financial items	kr 100	kr 2,200

Prepaid expenses (Details)

Prepaid expenses (Details) - DKK (kr) kr in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Prepaid expenses
Prepaid expense	kr 48.3	kr 17.5	kr 30.8

Other receivables (Details)

Other receivables (Details) - DKK (kr) kr in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other receivables
VAT	kr 3,887	kr 5,437
Other	6,055	2,498
Total other receivables	kr 9,942	kr 7,935

Marketable securities (Details)

Marketable securities (Details) - DKK (kr) kr in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Marketable securities
Net fair value adjustment from marketable securities	kr 2.1	kr 0.8

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) - DKK (kr) kr in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents
Cash and cash equivalents	kr 960,221	kr 1,081,060	kr 860,635	kr 588,718
DKK
Cash and cash equivalents
Cash and cash equivalents	286,222	732,405
USD
Cash and cash equivalents
Cash and cash equivalents	568,444	306,748
EUR
Cash and cash equivalents
Cash and cash equivalents	kr 105,555	kr 41,907

Share capital - (Details)

Share capital - (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share reconciliation
Balance at the beginning	36,055	30,787
Increase due to issue of new shares	3,745	5,268
Balance at the end	39,800	36,055

Share capital - Additional info

Share capital - Additional information (Details)	Jun. 22, 2020DKK (kr)shares	Apr. 02, 2020DKK (kr)	Mar. 26, 2020DKK (kr)shares	Sep. 05, 2019DKK (kr)shares	Jun. 13, 2019EquityInstruments	Mar. 20, 2019DKK (kr)shares	Dec. 31, 2020DKK (kr)EquityInstrumentsshares	Dec. 31, 2019DKK (kr)EquityInstrumentsshares	Dec. 31, 2018DKK (kr)EquityInstruments
Disclosure of classes of share capital [line items]
Increase in authorized share capital		kr 9,013,665
Remaining authorized share capital							kr 5,587,388
Number of shares issued | shares	2,684,461		741,816	3,975,000		802,859
Proceeds from issuance of shares	kr 655,000,000		kr 136,500,000	kr 545,600,000		kr 85,600,000	791,503,000	kr 645,145,000	kr 0
Issuance costs				kr 14,000,000		kr 0	kr 42,706,000	kr 14,444,000
Number of treasury shares | shares							64,223	64,223
Treasury shares held (as a percent)							0.20%	0.20%
Fair value of treasury shares							kr 14,100,000	kr 15,100,000
Total outstanding warrants | EquityInstruments							2,019,368	1,709,912	1,853,359
2019 Long-term incentive program
Disclosure of classes of share capital [line items]
No granted | EquityInstruments					22,915
Total outstanding warrants | EquityInstruments							19,765

Deferred revenue (Details)

Deferred revenue (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Deferred revenue
Deferred revenues, beginning of period	kr 139,890	kr 0
Customer payment received, cf. note 2	0	177,315
Revenue recognized during the year	(42,881)	(37,425)
Total deferred revenue	97,769	139,890	kr 0	kr 97,769	kr 139,890
Non-current deferred revenue				44,587	83,639
Current deferred revenue				kr 53,182	kr 56,251
Contract liabilities at end of period	97,769	139,890	0
Upfront non refundable payment recognized	353,314	41,333	kr 37,977
Expected
Deferred revenue
Milestone payments Recognized for the period	53,000
Alexion
Deferred revenue
Upfront non-refundable payment received		177,300
Upfront non refundable payment recognized	kr 42,900	kr 37,400

Provision (Details)

Provision (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of other provisions [line items]
Provision at the beginning of the year	kr 0	kr 0
Addition due to acquisition cf note 29	6,969	0
Adjustments for the year	137,321	0
Utilization during the period	(103,766)	0
Reversal of provisions from previous years	(1,184)	0
Currency translation adjustments	(2,668)	0
Provision at year-end	36,673	0
Provisions for sales rebates
Disclosure of other provisions [line items]
Provision at the beginning of the year	0
Addition due to acquisition cf note 29	4,343
Adjustments for the year	137,104
Utilization during the period	(102,521)
Reversal of provisions from previous years	0
Currency translation adjustments	(2,493)
Provision at year-end	36,433	0
Provision for product returns
Disclosure of other provisions [line items]
Provision at the beginning of the year	0
Addition due to acquisition cf note 29	2,626
Adjustments for the year	217
Utilization during the period	(1,245)
Reversal of provisions from previous years	(1,184)
Currency translation adjustments	(175)
Provision at year-end	kr 239	kr 0

Other liabilities (Details)

Other liabilities (Details) - DKK (kr) kr in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other liabilities
Employee benefits	kr 101,028	kr 36,082
Royalty payable to third party	5,732	6,843
Development project costs	28,267	16,329
Other payables	32,272	13,790
Total other liabilities	167,299	73,044
Current	150,555	73,044
Non-current	kr 16,744	kr 0

Contingent assets, liabilitie_2

Contingent assets, liabilities and other contractual obligations (Details) - Dec. 31, 2020 kr in Millions, $ in Millions	USD ($)	DKK (kr)
Contractual obligations:
Contractual obligations		kr 252.6
With in 1 year
Contractual obligations:
Contractual obligations		198.1
Later than two year but not later than three years
Contractual obligations:
Contractual obligations		54.5
Sanofi
Contractual obligations:
Estimated effect of potential milestone	$ 15	15
Sanofi | With in 1 year
Contractual obligations:
Estimated effect of potential milestone		5
Sanofi | Later than one year but not later than two years
Contractual obligations:
Estimated effect of potential milestone		kr 10

Financial risks (Details)

Financial risks (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financial risks
Cash	kr 568,400	kr 306,700
Average weighted duration of the bond portfolio	3 years	3 years
USD
Financial risks
Effect	kr 58,124	kr 30,657
Percentage of reasonably possible decrease	10.00%	10.00%

Financial risks - Contractual m

Financial risks - Contractual maturity (Liquidity risk) (Details) - DKK (kr) kr in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Contractual maturity (Liquidity risk)
Trade payables	kr 70,384	kr 57,533
Lease liabilities	130,119	85,760	kr 10,048
Other liabilities	150,555	73,044
Liquidity risk
Contractual maturity (Liquidity risk)
Trade payables	71,442	57,533
Lease liabilities	146,465	85,760
Other liabilities	167,299	73,044
Total financial liabilities	382,209	216,337
Liquidity risk | Less than 12 months
Contractual maturity (Liquidity risk)
Trade payables	71,442	57,533
Lease liabilities	14,072	7,692
Other liabilities	150,555	73,044
Total financial liabilities	236,069	138,269
Liquidity risk | 1 to 5 years
Contractual maturity (Liquidity risk)
Trade payables	0	0
Lease liabilities	53,039	23,359
Other liabilities	16,744	0
Total financial liabilities	69,783	23,359
Liquidity risk | After 5 years
Contractual maturity (Liquidity risk)
Trade payables	0	0
Lease liabilities	76,354	54,709
Other liabilities	0	0
Total financial liabilities	kr 76,354	kr 54,709

Financial risks - Fair value me

Financial risks - Fair value measurement of financial instruments (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Categories of financial instruments
Financial assets at amortized cost	kr 1,033,297	kr 1,098,758
Financial assets measured at fair value through profit or loss	329,678	335,080
Categories of financial instruments
Financial liabilities measured at amortized cost	367,802	216,337
Transfer out of level 1 to level 2, Assets	0	0
Transfer out of level 2 to level 1, Assets	0	0
Transfer out of level 1 to level 2, Liabilities	0	0
Transfer out of level 2 to level 1, Liabilities	0	0
Transfer into Level 3, Assets	0	0
Transfer into Level 3, Liabilities	0	0
Transfer out of level 3, Assets	0	0
Transfer out of level 3, Liabilities	0	0
Lease liabilities
Categories of financial instruments
Financial liabilities measured at amortized cost	130,119	85,760
Trade payables
Categories of financial instruments
Financial liabilities measured at amortized cost	70,384	57,533
Other liabilities
Categories of financial instruments
Financial liabilities measured at amortized cost	167,299	73,044
Deposits
Categories of financial instruments
Financial assets at amortized cost	16,650	9,012
Trade receivables
Categories of financial instruments
Financial assets at amortized cost	46,484	751
Other receivables
Categories of financial instruments
Financial assets at amortized cost	9,942	7,935
Cash and cash equivalents
Categories of financial instruments
Financial assets at amortized cost	960,221	1,081,060
Marketable securities
Categories of financial instruments
Financial assets measured at fair value through profit or loss	297,345	299,448
Other investments
Categories of financial instruments
Financial assets measured at fair value through profit or loss	kr 32,333	kr 35,632

Financial risks - Capital Manag

Financial risks - Capital Management (Details) - DKK (kr) kr in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financial risks
Cash and cash equivalents	kr 960,221	kr 1,081,060	kr 860,635	kr 588,718

Business combinations (Details)

Business combinations (Details) kr in Thousands, $ in Millions	Apr. 02, 2020USD ($)	Apr. 02, 2020DKK (kr)	Mar. 31, 2020DKK (kr)	Dec. 31, 2020DKK (kr)	Dec. 31, 2019DKK (kr)	Dec. 31, 2018DKK (kr)
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value		kr 167,725
Intangible assets other than goodwill				kr 57,485	kr 2,480
Trade receivables		50,603
Bargain purchase		36,692		kr 36,395	0	kr 0
Net assets at fair value		204,417
Intellectual property
Disclosure of detailed information about business combination [line items]
Amortization period				10 years
Intangible assets other than goodwill				kr 0	0
Physician relationship
Disclosure of detailed information about business combination [line items]
Amortization period				8 years
Intangible assets other than goodwill				kr 54,955	kr 0
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member]
Disclosure of detailed information about business combination [line items]
Consideration transferred, acquisition-date fair value		167,700
Acquisition-related costs | $	$ 24.5
Unallocated intangible assets		82,200
Intangible assets other than goodwill		kr 68,500
Cash flows of projections period	10 years	10 years
Growth rate		13.00%
Discount rate		(50.00%)
Budget period for revenue growth	10 years	10 years
Budget period for operating costs	10 years	10 years
Trade receivables		kr 50,600
Bargain purchase		36,700
Net assets at fair value		204,400
Fair value of the tangible and financial assets acquired		147,500
Acquisition-related costs			kr 7,100
Acquisition contributed with net revenues		161,300
Profit (loss) of acquiree		kr (278,800)
Pro forma revenue				395,800
Pro forma operating result				kr 868,900
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Minimum
Disclosure of detailed information about business combination [line items]
Growth rate for revenue		1.00%
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Maximum
Disclosure of detailed information about business combination [line items]
Growth rate for revenue		20.00%
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member] | Intellectual property
Disclosure of detailed information about business combination [line items]
Intangible assets other than goodwill		kr 13,700

Business combinations - Identif

Business combinations - Identifiable assets and liabilities (Details) - DKK (kr) kr in Thousands	Apr. 02, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Physician Relationship	kr 68,459
V-Go IP	13,692
Property, plant and equipment	41,138
Right-of-use assets	14,299
Inventories	55,796
Trade receivables	50,603
Other assets	10,132
Cash and cash equivalents	66
Deferred tax liability	(11,880)
Trade payables	(4,050)
Lease liabilities	(14,046)
Other liabilities	(19,792)
Total identifiable net assets at fair value	204,417
Bargain purchase	(36,692)	kr (36,395)	kr 0	kr 0
Purchase consideration transferred	167,725
Net cash acquired (included in cash flows from investing activities)	66
Cash paid	(167,725)
Net cash flow on acquisition	(167,659)	kr (167,791)	kr 0	kr 0
Acquisition Of Medical Technology Business From Valeritas Holdings, Inc. [Member]
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Trade receivables	50,600
Total identifiable net assets at fair value	204,400
Bargain purchase	(36,700)
Purchase consideration transferred	kr 167,700

Related parties (Details)

Related parties (Details)	Dec. 31, 2020Voteitem
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 items

Adjustments for non-cash items (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Adjustments for non-cash items
Depreciation, amortization and impairment	kr 42,692	kr 13,682	kr 4,508
Sharebased compensation expenses	30,485	14,763	17,474
Income tax income	(5,543)	(5,999)	0
Income tax expense	15,408	614	43,773
Financial income	(1,127)	(9,306)	0
Financial expenses	3,511	3,390	19,736
Non paid royalty expenses regarding sale of future royalties and milestones	0	0	6,575
Exchange rate adjustments	57,712	(7,937)	9,864
Total adjustments	kr 143,138	kr 9,207	kr 101,930

Change in working capital (Deta

Change in working capital (Details) - DKK (kr) kr in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in working capital
(Increase)/decrease in receivables	kr (7,716)	kr (21,059)	kr (471)
(Increase)/decrease in Inventory	(14,404)	0	0
Increase/(decrease) in payables and other liabilities	119,938	17,061	13,256
Adjustment for non-cash investing activities	0	(7,932)	0
Cash outflow for investment in Beta Bionics	0	22,803	0
Change in working capital	kr 97,818	kr 10,873	kr 12,785

Significant events after the _2

Significant events after the balance sheet date (Details) - DKK (kr)	Jan. 27, 2021	Jun. 22, 2020	Mar. 26, 2020	Sep. 05, 2019	Mar. 20, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant events after the balance sheet date
Proceeds from issuance of shares		kr 655,000,000	kr 136,500,000	kr 545,600,000	kr 85,600,000	kr 791,503,000	kr 645,145,000	kr 0
New shares subscribed through private issue
Significant events after the balance sheet date
Shares issued	kr 3,600,841
Proceeds from issuance of shares	kr 749,000,000