argenx SE

Annual / Quarterly Financial Statement • Mar 3, 2022

ARGENX SE

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of December 31,
(in thousands of \$)	2021		2020		2019
ASSETS
Current assets
Cash and cash equivalents	\$ 1,334,676	\$	1,216,803	\$	372,162
Research and development incentive receivables — current	—		463		293
Financial assets — current	1,002,052		779,649		1,128,499
Prepaid expenses	58,946		27,913		10,136
Trade and other receivables	38,221		6,978		31,585
Inventories	109,076		25,195		—
Total current assets	2,542,971		2,057,001		1,542,675
Non-current assets
Other non-current assets	54,876		7,816		3,624
Research and development incentive receivables — non-current	32,707		20,626		9,624
Deferred tax asset	32,191		15,038		—
Property, plant and equipment	15,844		11,582		9,175
Intangible assets	171,684		167,344		45,117
Total non-current assets	307,303		222,406		67,540
TOTAL ASSETS	\$ 2,850,274	\$	2,279,407	\$	1,610,215

	As of December 31,
(in thousands of \$)	2021		2020	2019
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the parent
Share capital	\$ 6,233	\$	5,744	\$	5,209
Share premium	3,462,775		2,339,033		1,505,641
Translation differences	131,684		134,732		(27,541)
Accumulated losses	(1,400,197)		(991,932)		(383,477)
Other reserves	333,729		186,474		80,577
Total equity	\$ 2,534,224	\$	1,674,051	\$	1,180,409
Non-current liabilities
Provisions for employee benefits	417		156		72
Lease liabilities — non-current	7,956		6,181		5,101
Deferred tax liabilities	6,438		1,487		—
Deferred revenue — non-current	—		269,039		244,937
Total non-current liabilities	14,811		276,863		250,110
Current liabilities
Lease liabilities — current	3,509		3,476		2,218
Trade and other payables	293,415		275,192		95,827
Tax liabilities	4,315		3,497		386
Deferred revenue — current	—		46,328		81,265
Total current liabilities	301,239		328,493		179,696
Total liabilities	\$ 316,050	\$	605,356	\$	429,806
TOTAL EQUITY AND LIABILITIES	\$ 2,850,274	\$	2,279,407	\$	1,610,215

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

	Year Ended December 31,
(in thousands of \$ except for shares and EPS)		2021		2020		2019
Revenue	\$	497,277	\$	41,243	\$	78,462
Other operating income		42,141		23,668		15,563
Total operating income		539,418		64,911		94,025
Research and development expenses		(580,520)		(370,885)		(220,771)
Selling, general and administrative expenses		(307,644)		(171,643)		(72,146)
Total operating expenses		(888,164)		(542,528)		(292,917)
Operating loss	\$	(348,746)	\$	(477,617)	\$	(198,892)
Financial income/(expense)		(944)		(1,501)		15,983
Exchange gains/(losses)		(50,053)		(126,234)		6,990
Loss before taxes	\$	(399,743)	\$	(605,352)	\$	(175,919)
Income tax expense	\$	(8,522)	\$	(3,103)	\$	(5,289)
Loss for the year	\$	(408,265)	\$	(608,455)	\$	(181,208)
Loss for the year attributable to:
Owners of the parent	\$	(408,265)	\$	(608,455)	\$	(181,208)
Weighted average number of shares outstanding		51,075,827		45,410,442		38,619,121
Basic and diluted loss per share (in \$)		(7.99)		(13.40)		(4.69)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / LOSS

(in thousands of \$ except for shares)		2021		2020		2019
Loss for the year	\$ (408,265)		\$	(608,455)		(181,208)
Items that may be reclassified subsequently to profit or loss, net of
tax
Currency translation differences, arisen from translating foreign		(3,048)		—		—
activities
Translation effect		—		162,273		(8,587)
Items that will not be reclassified subsequently to profit or loss,
net of tax
Fair value gain/(loss) on investments in equity instruments designated
as at FVTOCI		(39,290)		—		—
Other comprehensive loss, net of income tax		(42,338)		162,273		(8,587)
Total comprehensive loss attributable to:
Owners of the parent	\$	(450,603)	\$	(446,182)	\$	(189,795)

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
(in thousands of \$)		2021		2020		2019
CASH FLOWS (USED IN) / FROM OPERATING ACTIVITIES
Operating loss	\$	(348,746) \$		(477,617) \$		(198,892)
Adjustments for non-cash items
Amortization of intangible assets		776		246		43
Depreciation of property, plant and equipment		5,091		3,671		2,382
Provisions for employee benefits		260		76		64
Expense recognized in respect of share-based payments		179,366		96,932		44,236
Fair value gains on non-current financial assets at fair value through
profit or loss		(11,152)		(2,951)		(1,214)
Non-cash revenue		(75,000)		—		—
	\$	(249,405) \$		(379,643) \$		(153,381)
Movements in current assets/liabilities
(Increase)/decrease in trade and other receivables		(31,632)		21,961		(25,709)
(Increase)/decrease in inventories		(83,880)		(23,852)		—
(Increase)/decrease in other current assets		(30,990)		(16,189)		(5,788)
Increase/(decrease) in trade and other payables		134,892		50,537		53,729
Increase/(decrease) in deferred revenue – current		(46,327)		(40,441)		69,526
Movements in non-current assets/liabilities
(Increase)/decrease in other non-current assets		(13,975)		(10,299)		(6,224)
(Increase)/decrease in deferred revenue – non-current		(269,039)		2,655		224,492
Cash flows (used in)/from operating activities		(590,356)		(395,272)		156,645
Interest paid		(684)		(401)		(139)
Income taxes paid		(15,772)		(2,791)		(4,876)
NET CASH FLOWS (USED IN) / FROM OPERATING ACTIVITIES	\$	(606,812) \$		(398,463) \$		151,630
Purchase of intangible assets		(117,811)		(4,071)		(44,939)
Purchase of property, plant and equipment		(3,623)		(1,068)		(1,796)
(Increase)/decrease in financial assets – current		(228,239)		341,869		(792,655)
Interest received		2,603		7,962		6,122
NET CASH FLOWS (USED IN) / FROM INVESTING ACTIVITIES	\$	(347,070) \$		344,692 \$		(833,267)
Principal elements of lease payments		(3,855)		(2,550)		(1,515)
Proceeds from issue of new shares		1,091,326		813,186		755,641
Issue costs paid		(528)		(613)		(25,747)
Exchange gain from currency conversion on proceeds from issue of new
shares		966		68		—
Proceeds from exercise of stock options		33,433		22,912		5,345
NET CASH FLOWS (USED IN) / FROM FINANCING ACTIVITIES	\$	1,121,342 \$		833,003 \$		733,726
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS	\$	167,460 \$		779,232 \$		52,088
Cash and cash equivalents at the beginning of the period	\$	1,216,803 \$		372,162 \$		321,791
Exchange gains/(losses) on cash & cash equivalents	\$	(49,587) \$		65,409 \$		(1,717)
Cash and cash equivalents at the end of the period	\$	1,334,676 \$		1,216,803 \$		372,162

ARGENX SE

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Attributable to owners of the parent
								Total equity attributable to owners
	Share	Share		Accumulated Translation		Other		of the		Total
(in thousands of \$)	capital	premium		losses		differences reserves		parent		equity
Balance at January 1, 2019	\$ 4,451	\$ 796,894	\$	(202,270)	\$	(18,954) \$ 36,341		\$ 616,462 \$		616,462
Loss for the year				(181,208)				(181,208)		(181,208)
Other comprehensive income / (loss)						(8,587)		(8,587)		(8,587)
Total comprehensive loss of the period				(181,208)		(8,587)		(189,795)		(189,795)
Share-based payment							44,236	44,236		44,236
Issue of share capital	710	756,472						757,182		757,182
Transaction costs for equity issue		(25,476)						(25,476)		(25,476)
Accounting treatment of the share
subscription agreement		(27,635)						(27,635)		(27,635)
Exercise of stock options	48	5,386						5,434		5,434
Balance year ended December 31, 2019		\$ 5,209 \$ 1,505,641 \$		(383,477) \$				(27,541) \$ 80,577 \$ 1,180,409 \$		1,180,409
Loss for the year				(608,455)				(608,455)		(608,455)
Other comprehensive income / (loss)						162,273		162,273		162,273
Total comprehensive loss of the period				(608,455)		162,273		(446,182)		(446,182)
Income tax benefit from excess tax
deductions related to share-based payments							8,965	8,965		8,965
Share-based payment							96,932	96,932		96,932
Issue of new shares	468	812,718						813,186		813,186
Transaction costs for equity issue		(613)						(613)		(613)
Exercise of stock options	67	21,287						21,354		21,354
Balance year ended December 31, 2020		\$ 5,744 \$ 2,339,033 \$				(991,932) \$ 134,732 \$ 186,474 \$ 1,674,051 \$				1,674,051
Loss for the year				(408,265)				(408,265)		(408,265)
Other comprehensive income / (loss)						(3,048) (39,290)		(42,338)		(42,338)
Total comprehensive loss of the period				(408,265)		(3,048)	(39,290)	(450,603)		(450,603)
Income tax benefit from excess tax
deductions related to share-based payments							7,179	7,179		7,179
Share-based payment							179,366	179,366		179,366
Issue of new shares	430	1,090,896						1,091,326		1,091,326
Transaction costs for equity issue		(528)						(528)		(528)
Exercise of stock options	59	33,374						33,433		33,433
Balance year ended December 31, 2021						\$ 6,233 \$ 3,462,775 \$ (1,400,197) \$ 131,684 \$ 333,729 \$ 2,534,224 \$				2,534,224