argenx SE

Quarterly Report • Feb 27, 2020

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	As of
		December 31,
(in thousands of €)	2019	2018	2017
ASSETS
Current assets
Cash and cash equivalents	€ 331,282	€ 281,040	€ 190,867
Restricted cash — current	—	1,692	1,692
Research and development incentive receivables — current	261	301	158
Financial assets — current	1,004,539	283,529	168,907
Prepaid expenses	9,022	2,995	2,338
Trade and other receivables	28,115	2,886	2,842
Total current assets	1,373,219	572,443	366,804
Non-current assets
Restricted cash — non-current	630	251	256
Research and development incentive receivables — non
current	8,566	4,883	3,033
Other non-current assets	—	—	125
Financial assets — non-current	2,596	1	1
Property, plant and equipment	8,167	824	676
Intangible assets	40,161	56	13
Total non-current assets	60,120	6,015	4,104
TOTAL ASSETS	€ 1,433,339	€ 578,458	€ 370,908
	As of
(in thousands of €)	2019	December 31, 2018	2017

(in thousands of €)	2019	2018	2017
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the parent
Share capital	€ 4,276	€ 3,597	€ 3,217
Share premium	1,308,539	673,454	430,518
Accumulated losses	(332,568)	(169,603)	(100,568)
Other reserves	70,499	30,947	11,764
Total equity	€ 1,050,746	€ 538,395	€ 344,931
Non-current liabilities	222,636	7	1,460
Provisions for employee benefits	64	7	25
Lease liabilities — non-current	4,540	—	—
Deferred revenue — non-current	218,032	—	1,435
Current liabilities	159,957	40,056	24,517
Lease liabilities — current	1,974	—	—
Trade and other payables	85,301	37,072	15,285
Tax liabilities	344	823	597
Deferred revenue — current	72,338	2,161	8,635
Total liabilities	€ 382,593	€ 40,063	€ 25,977
TOTAL EQUITY AND LIABILITIES	€ 1,433,339	€ 578,458	€ 370,908

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

	Year Ended
				December 31,
(in thousands of € except for shares and EPS)		2019		2018		2017
Revenue	€	69,783	€	21,482	€	36,415
Other operating income		12,801		7,749		4,841
Total operating income		82,584		29,231		41,256
Research and development expenses		(197,665)		(83,609)		(51,740)
Selling, general and administrative expenses		(64,569)		(27,471)		(12,448)
Changes in fair value on financial assets		1,096		—		—
Operating loss	€	(178,554)	€	(81,849)	€	(22,932)
Financial income		14,399		3,694		1,250
Financial expense		(124)		—		—
Exchange gains/(losses)		6,066		12,308		(5,797)
Loss before taxes	€	(158,213)	€	(65,847)	€	(27,479)
Income tax expense	€	(4,752)	€	(794)	€	(597)
Loss for the year and total comprehensive loss	€	(162,965)	€	(66,641)	€	(28,076)
Loss for the year and total comprehensive loss
attributable to:
Owners of the parent	€	(162,965)	€	(66,641)	€	(28,076)
Weighted average number of shares outstanding		38,619,121		33,419,356		24,609,536
Basic and diluted loss per share (in €)		(4.22)		(1.99)		(1.14)

CONSOLIDATED STATEMENT OF CASH FLOWS

	Year Ended
(in thousands of €)		2019	December 31, 2018	2017
CASH FLOWS (USED IN) / FROM OPERATING
ACTIVITIES
Operating result	€	(178,554)	€ (81,849)	€ (22,932)
Adjustments for non-cash items
Amortization of intangible assets		38	19	10
Depreciation of property, plant and equipment		2,128	474	425
Loss on disposal of fixed assets		—	—	11
Provisions for employee benefits		57	(18)	24
Expense recognized in respect of share-based payments		39,552	19,183	4,268
Fair value gains on financial assets at fair value through
profit or loss		(1,096)	—	—
	€	(137,875)	€ (62,191)	€ (18,195)
Movements in current assets/liabilities
(Increase)/decrease in trade and other receivables		(22,965)	(44)	(122)
(Increase)/decrease in other current assets		(5,170)	(800)	(1,093)
Increase/(decrease) in trade and other payables		47,995	21,784	3,094
Increase/(decrease) in deferred revenue – current		62,106	(8,868)	(11,501)
Movements in non-current assets/liabilities
(Increase)/decrease in other non-current assets		(5,560)	(1,720)	(94)
(Increase)/decrease in deferred revenue – non-current		200,533	(1,435)	(8,635)
Cash flows (used in)/from operating activities		139,064	(53,274)	(36,546)
Interest paid		(124)	—	—
Income taxes paid		(4,356)	(565)	—
NET CASH FLOWS (USED IN) / FROM OPERATING
ACTIVITIES	€	134,584	€ (53,839)	€ (36,546)
CASH FLOWS (USED IN) / FROM INVESTING
ACTIVITIES
Purchase of intangible assets		(40,143)	(62)	(6)
Purchase of property, plant and equipment		(1,604)	(622)	(345)
(Increase)/decrease in financial assets – current		(708,060)	(108,229)	(162,076)
Interest received		5,469	1,371	375
NET CASH FLOWS (USED IN) / FROM INVESTING
ACTIVITIES	€	(744,338)	€ (107,542)	€ (162,052)
CASH FLOWS (USED IN) / FROM FINANCING
ACTIVITIES
Principal elements of lease payments		(1,353)	—	—
Proceeds from issue of new shares, gross amount		678,936	255,721	327,700
Issue costs paid		(22,999)	(14,655)	(23,015)
Exchange gain from currency conversion on proceeds from
issue of new shares		—	1,354	—
Proceeds from exercise of stock options		4,775	2,251	679
NET CASH FLOWS (USED IN) / FROM FINANCING
ACTIVITIES	€	659,359	€ 244,671	€ 305,365
NET INCREASE (DECREASE) IN CASH & CASH
EQUIVALENTS	€	49,605	€ 83,290	€ 106,767
Cash and cash equivalents at the beginning of the period	€	281,040	€ 190,867	€ 89,897
Exchange gains/(losses) on cash & cash equivalents	€	637	€ 6,883	€ (5,797)
Cash and cash equivalents at the end of the period	€	331,282	€ 281,040	€ 190,867

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to owners of the parent
(in thousands of €)	Share Share capital premium		Accumulated Other losses reserves		Total equity attributable to owners of the parent		Total equity
Balance at January 1, 2017	€ 2,012	€	126,358	€ (72,492)	€ 7,496	€	63,374	€	63,374
Total comprehensive loss of the
period				(28,076)			(28,076)		(28,076)
Share-based payment					4,268		4,268		4,268
Issue of share capital	1,185		326,515				327,700		327,700
Transaction costs for equity issue			(23,015)				(23,015)		(23,015)
Exercise of stock options	19		660				679		679
Balance year ended December
31, 2017	€ 3,216	€	430,518	€ (100,568)	€ 11,764	€	344,931	€	344,931
Adoption of IFRS 15 (modified
retrospective approach)				(2,395)			(2,395)		(2,395)
Restated total equity at
January 1, 2018	€ 3,216	€	430,518	€ (102,962)	€ 11,764	€	342,536	€	342,536
Total comprehensive loss of the
period				(66,641)			(66,641)		(66,641)
Share-based payment					19,183		19,183		19,183
Issue of share capital	347		255,374				255,721		255,721
Transaction costs for equity issue			(14,655)				(14,655)		(14,655)
Exercise of stock options	34		2,217				2,251		2,251
Balance year ended December
31, 2018	€ 3,597	€	673,454	€ (169,603)	€ 30,947	€	538,395	€	538,395
Total comprehensive loss of the
period				(162,965)			(162,965)		(162,965)
Share-based payment					39,552		39,552		39,552
Issue of new shares	637		678,299				678,936		678,936
Transaction costs for equity issue			(22,999)				(22,999)		(22,999)
Accounting treatment of the
share subscription agreement			(24,948)				(24,948)		(24,948)
Exercise of stock options	42		4,733				4,775		4,775
Balance year ended December
31, 2019	€ 4,276		€ 1,308,539	€ (332,568)	€ 70,499		€ 1,050,746		€ 1,050,746