argenx SE

Quarterly Report • Mar 4, 2021

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

			As of
(in thousands of €)	Note	2020	December 31, 2019	2018
ASSETS
Current assets
Cash and cash equivalents	12	€ 991,609	€ 331,282	€ 281,040
Restricted cash — current		—	—	1,692
Research and development incentive receivables — current		377	261	301
Financial assets — current	11	635,359	1,004,539	283,529
Prepaid expenses		22,747	9,022	2,995
Inventories	9	20,532	—	—
Trade and other receivables	10	5,687	28,115	2,886
Total current assets		1,676,311	1,373,219	572,443
Non‑current assets
Other non-current assets	7	6,383	3,226	252
Research and development incentive receivables — non
current		16,840	8,566	4,883
Deferred tax asset	8	12,255	—	—
Property, plant and equipment	6	9,494	8,167	824
Intangible assets	5	136,410	40,161	56
Total non‑current assets		181,382	60,120	6,015
TOTAL ASSETS		€ 1,857,693	€ 1,433,339	€ 578,458

			As of December 31,
(in thousands of €)	Note	2020	2019	2018
EQUITY AND LIABILITIES
Equity	13
Equity attributable to owners of the parent
Share capital		€ 4,757	€ 4,276	€ 3,597
Share premium		2,058,123	1,308,539	673,454
Accumulated losses		(861,491)	(332,568)	(169,603)
Other reserves		162,984	70,499	30,947
Total equity		€ 1,364,373	€ 1,050,746	€ 538,395
Deferred tax liabilities		1,212	—	—
Non-current liabilities
Provisions for employee benefits		128	64	7
Lease liabilities — non-current		5,035	4,540	—
Deferred revenue — non-current	16	219,248	218,032	—
Total non-current liabilities		224,411	222,636	7
Current liabilities
Lease liabilities — current		2,833	1,974	—
Trade and other payables	15	224,262	85,301	37,072
Tax liabilities		2,850	344	823
Deferred revenue — current	16	37,754	72,338	2,161
Total current liabilities		267,699	159,957	40,056
Total liabilities		€ 492,110	€ 382,593	€ 40,063
TOTAL EQUITY AND LIABILITIES		€ 1,857,695	€ 1,433,339	€ 578,458

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

					Year Ended December 31,
(in thousands of € except for shares and EPS)	Note		2020		2019		2018
Revenue	16	€	36,425	€	69,783	€	21,482
Other operating income	17		18,109		12,801		7,749
Total operating income			54,534		82,584		29,231
Research and development expenses	19		(325,479)		(197,665)		(83,609)
Selling, general and administrative expenses	20		(149,367)		(64,569)		(27,471)
Total operating expenses			(474,846)		(262,234)		(111,080)
Change in fair value on non-current financial assets	7		2,544		1,096		—
Operating loss		€	(417,769)	€	(178,554)	€	(81,849)
Financial income/(expense)	23		(1,414)		14,275		3,694
Exchange gains/(losses)	23		(106,956)		6,066		12,308
Loss before taxes		€	(526,139)	€	(158,213)	€	(65,847)
Income tax expense	24	€	(2,784)	€	(4,752)	€	(794)
Loss for the year and total comprehensive loss		€	(528,923)	€	(162,965)	€	(66,641)
Loss for the year and total comprehensive loss attributable to:
Owners of the parent		€	(528,923)	€	(162,965)	€	(66,641)
Weighted average number of shares outstanding			45,410,442		38,619,121		33,419,356
Basic and diluted loss per share (in €)	25		(11.65)		(4.22)		(1.99)

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Year Ended
				December 31,
(in thousands of €)	Note		2020	2019		2018
CASH FLOWS (USED IN) / FROM OPERATING ACTIVITIES
Operating result		€	(417,769)	€ (178,554)	€	(81,849)
Adjustments for non-cash items
Amortization of intangible assets	5		215	38		19
Depreciation of property, plant and equipment	6		3,214	2,128		474
Provisions for employee benefits			65	57		(18)
Expense recognized in respect of share-based payments	14		84,479	39,552		19,183
Fair value gains on non-current financial assets at fair value
through profit or loss	7		(2,544)	(1,096)		—
		€	(332,340)	€ (137,875)	€	(62,191)
Movements in current assets/liabilities
(Increase)/decrease in trade and other receivables	10		19,767	(22,965)		(44)
(Increase)/decrease in inventories	9		(20,532)	—		—
(Increase)/decrease in other current assets			(13,840)	(5,170)		(800)
Increase/(decrease) in trade and other payables	15		45,652	47,995		21,784
Increase/(decrease) in deferred revenue – current	16		(34,585)	62,106		(8,868)
Movements in non-current assets/liabilities
(Increase)/decrease in other non‑current assets			(8,888)	(5,560)		(1,720)
(Increase)/decrease in deferred revenue – non-current	16		1,216	200,533		(1,435)
Cash flows (used in)/from operating activities			(343,550)	139,064		(53,274)
Interest paid			(349)	(124)		—
Income taxes paid			(2,450)	(4,356)		(565)
NET CASH FLOWS (USED IN) / FROM OPERATING ACTIVITIES		€	(346,349)	€ 134,584	€	(53,839)
Purchase of intangible assets	5		(3,503)	(40,143)		(62)
Purchase of property, plant and equipment	6		(949)	(1,604)		(622)
(Increase)/decrease in financial assets – current	11		307,641	(708,060)		(108,229)
Interest received			7,061	5,469		1,371
NET CASH FLOWS (USED IN) / FROM INVESTING
ACTIVITIES		€	310,250	€ (744,338)		€ (107,542)
Principal elements of lease payments	22		(2,230)	(1,353)		—
Proceeds from issue of new shares, gross amount	13		731,546	678,936		255,721
Issue costs paid	13		(551)	(22,999)		(14,655)
Exchange gain from currency conversion on proceeds from issue
of new shares			62	—		1,354
Proceeds from exercise of stock options	13		19,070	4,775		2,251
NET CASH FLOWS (USED IN) / FROM FINANCING
ACTIVITIES		€	747,897	€ 659,359	€	244,671
NET INCREASE (DECREASE) IN CASH & CASH
EQUIVALENTS		€	711,798	€ 49,605	€	83,290
Cash and cash equivalents at the beginning of the period		€	331,282	€ 281,040	€	190,867
Exchange gains/(losses) on cash & cash equivalents		€	(51,471)	€ 637	€	6,883
Cash and cash equivalents at the end of the period		€	991,609	€ 331,282	€	281,040

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Attributable to owners of the parent
	Share	Share	Accumulated	Other	Total equity attributable to owners of the	Total
(in thousands of €)	capital	premium	losses	reserves	parent	equity
Balance 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 share capital	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
Total comprehensive loss of the
period			(528,923)		(528,923)	(528,923)
Income tax benefit from excess tax
deductions related to share-based
payments				8,006	8,006	8,006
Share-based payment				84,479	84,479	84,479
Issue of new shares	421	731,125			731,546	731,546
Transaction costs for equity issue		(551)			(551)	(551)
Exercise of stock options	60	19,010			19,070	19,070
Balance year ended December 31,
2020	€ 4,757	€ 2,058,123	€ (861,491)	€ 162,984	€ 1,364,373	€ 1,364,373