Gubra Interim Financial Report H1-2023
Management review
Business
Management review
Financials
Consolidated nancial
Statements
MANAGEMENT REVIEW
03 About Gubra
04 CEO statement H1-2023
05 Strategic priorities and aspirations
06 Financial outlook and guidance
07 Key events in H1-2023
08 CRO business
09 Disease areas
10 Deep Dive: Acquisition of MiniGut
11 Discovery & Partnerships
12 Vast potential upside in current partnerships
13 Promising own Amylin project for obesity
14 Financial results H1-2023
17 Financial results Q2-2023
FINACIAL STATEMENTS
18 Consolidated statements of income
19 Consolidated Balance Sheet
21 Consolidated Cash Flow Statement
22 Consolidated Statements of Changes in Equity
23 Notes
33 Statement of the Board of Directors and the Executive Management
Table of content
Earnings call info
The H1-2023 report will be presented to investors and analysts on
25 August 2023 at 10.00 CET.
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About Gubra
Gubra, founded in 2008 in Denmark, is specialized in high-end pre-clinical contract re-
search (CRO) and peptide-based drug discovery within metabolic and brotic diseases.
Our activities are focused on the early stages of drug development and are organized
in two business areas – CRO Services and Discovery & Partnerships (D&P). The two
business areas are highly synergistic and create a unique entity capable of gen-
erating a steady cash ow from the CRO business while at the same time enjoying
biotechnology upside in the form of potential development milestone payments and
potential royalties from the D&P business.
Gubra’s shares are since 2023 listed on NASDAQ Copenhagen with ticker code GUBRA.
Operational synergies
Specialized pre-clinical
contract research and
development services
for the pharma and
biotech industry.
CRO Services
Discovery, design and
development of peptide-based
drug candidates with the
aim of entering partnerships
with pharma or
biotech companies.
Discovery &
Partnerships
201
Employees
30 June 2023
33%
Yearly revenue growth (CAGR)
Since inception 2009 to 2022
51%
Revenue from the US
H1 -2023
15 out of top 20
largest pharma companies
Gubra has served
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CEO statement
piece for the promise delivering 1-2 new
partnerships per year going forward.
The global obesity market keeps
growing and so does the interest in
obesity development projects as more
industry players want to deliver beer
solutions to the patients. It was there-
fore great news for us when our partner
Boehringer Ingelheim in May released
encouraging data from a phase 1 trial
with the novel long acting Y2 receptor
agonist for treatment of obesity that
has been developed in collaboration
with Gubra. It will be exciting to follow
this program in the years to come.
Revenue from the D&P business is by
nature volatile – in contrast to the more
stable CRO service business. In cer-
tain development periods a number of
milestones are triggered and the D&P
revenue increases dramatically, and in
other periods less milestones are trig-
gered resulting in lower D&P revenue. In
H1-2023, revenue of DKK 22 million was
recognized compared to DKK 32 million
for the same period last year. Most
importantly for the D&P business is that
we advance our projects in the R&D
pipeline, both internally and together
with partners and we are on track on
The rst half of 2023 has been an ex-
citing and productive period for Gubra
with strong growth – both in terms of
capabilities and revenue. We welcomed
quite a few new colleagues in this
rst half of the year within a range of
disciplines and we are now more than
200 colleagues working diligently every
day on delivering on our promises. I’m
very pleased to see that the expansion
is recognized by our customers. In the
rst half of 2023, we grew the revenue
from our CRO business organically by
21% compared to same period last year.
We also recently upgraded our revenue
expectations for the full year 2023 to
an organic growth of 16-21% compared
to 2022 (previous expectation was 10%
growth). All in all, a very satisfactory
performance from our growing
CRO business.
delivering on promises for this business
segment as well.
We now look forward continuing
Gubra’s growth journey and delivering
on our promises, all of them. Including
the establishment of our US oce,
which is expected to open later this
year. All in all, we are satised with a
very strong performance in the rst
half of 2023 that shows the strength of
our hybrid business model with many
synergies between the two business
segments that are complementing each
other nicely.
A highly satisfactory H1 2023
with our CRO business delivering
ahead of expectations
”
Another growth element is acquisitions.
Just before H1 came to an end we made
our rst acquisition – the minipig CRO
MiniGut which specializes in pre-clinical
minipig studies. Minipigs holds signif-
icant potential as a non-rodent test
species for innovative new medications
targeting a number of important dis-
ease categories. Once fully enrolled on
our digital platforms we expect minipig
studies to be a strong addition to our
CRO model catalogue as well as an
opportunity to accelerate our internal
pipeline programs in the Discovery &
Partnerships (D&P) business.
And speaking of Gubra D&P, in H1 we
announced the addition of an orexin
narcolepsy project to our R&D pipeline.
Still early days for that program, but it
looks promising and forms an important
— Henrik Blou. CEO
Strategic priorities and aspirations
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CRO
DRIVE TOPLINE ORGANIC GROWTH AND PROFITABILITY
+ Develop and innovate our vast catalogue of specialty models and
tech services
+ Build US presence and grow key markets
+ Keep optimizing automation and digitalization at all levels of the business
Mid-term targets
+ Yearly organic revenue growth of approx. 10%
+ EBIT-margin of 35-40%
M&A
ACCELERATE GROWTH
+ Expand CRO oerings and geographic footprint
+ Optimize and complement capabilities and platforms related to
internal pipeline
+ Leverage Gubra’s digitalized and automated platform to integrate
acquisitions
Discovery & Partnerships
LEVERAGE STREAMLINE PLATFORM
+ Develop streaMLine platform and be a preferred partner in target
and hit identication
+ Progress Amylin obesity asset into clinical development
+ Continue early partnering approach and progress new partnerships
Mid-term targets
+ 1-2 new partnerships per year
Gubra Green (Sustainability)
NATURE POSITIVE CARBON NEGATIVE
+ Drive green transition
+ 10% of annual pre-tax prot invested in projects to reduce
carbon emission and improve biodiversity
+ 90% of returns from Gubra Green projects channeled back to Gubra A/S
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Financial outlook and guidance
Key guidance items
New FY-2023 outlook
(announced 15 Aug 2023)
Previous
FY-2023 outlook
Mid-term guidance Results H1-2023
CRO Segment
Organic revenue growth 16-21% around 10% 10% annually 21%
EBIT-margin excl. special items around 25% around 25% 35-40% 27%
Discovery & Partnerships Segment
Number of new partnerships per year 1-2 1-2 1-2 –
Total costs (adjusted)* DKK 105-110 million DKK 105-110 million n/a DKK 52 million
Total costs* excl. Amylin asset (adjusted)* DKK 85-95 million DKK 85-95 million n/a DKK 42 million
* Total costs are cost of sales and operating costs excl. special items
Key events in H1-2023
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Satisfactory Phase 1 results
Encouraging data from a phase 1 trial with
the novel long acting Y2 receptor agonist
for treatment of obesity (partnership with
Boehringer Ingelheim)
MAY 2023
Life science leader
of the year
Henrik Blou, CEO of Gubra,
named life science leader of 2023
in Denmark
MAY 2023
MiniGut acquisition
Acquisition of the Danish minipig
service provider company MiniGut
JUNE 2023
IPO
Gubra listed on
NASDAQ Copenhagen
(main market)
MARCH 2023
Pipeline updates
Internally developed brain-accessible
orexin peptides for the treatment of
narcolepsy, now ready for partnering
JUNE 2023
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Existing clients
2
New clients
3
CRO Services
In Vivo
Pharmacology
Assays & Molecular
Pharmacology
NGS
(Next gen sequencing)
2D & 3D Histology with
AI Pathology
Bioinformatics Bioanalysis
Specialised in Pre-Clinical Contract Research Services
Leveraging our highly automated setup
CRO business
Our CRO business provides end-to-end pre-clinical services to pharma and
biotech companies. The services we provide enable our customers to make
data-based decisions to move their pre-clinical research projects fast forward.
We utilize our deep knowledge, animal model capabilities and advanced lab-
oratory and animal testing facilities with operations centered around auto-
mation, robotization and digitalization to oer a broad range of specialized
services covering all aspects of pre-clinical studies.
We have increased the number of clients substantially
18
29
45
76
67
71
94
2015
2016 2017 2018 2019 2020 2021 2022
101
Scan the code to know more about our CRO business
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Disease areas
Our CRO services cover a wide variety of disease areas
Diabetes Obesity
Liver
(NASH)
Kidney
Lungs
(IPF)
Gut
(IBD)
Heart
(CVD)
Brain
(CNS)
Number of studies sold per
disease areas in H1 2023
CRO Services
Other 15%
CVD/Heart 3%
NASH/Liver 19%
Obesity 30%
Kidney 13%
IPF/Lung 13%
CNS 11%
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Acquisition of
MiniGut
DEEP DIVE
In June 2023, we acquired the Danish company MiniGut ApS. MiniGut is a
fully equipped minipig contract research organization (CRO) located at DTU
Science Park in Hørsholm, Denmark, next to the headquarters of Gubra. The
facility at MiniGut is very well suited for conducting a variety of advanced and
well controlled studies in high-containment, individually ventilated holding
rooms.
The acquisition enables Gubra to perform minipig studies and adds a large
animal model to Gubra’s CRO services. This includes both pharmacokinetic
studies and microbiome studies, and over time additional minipig research
models covering the disease areas within which Gubra operates.
Adding minipigs and a large animal model to Gubra’s model catalogue is
important and enables us to beer bridge from rodent to human pharma-
cokinetics and ecacy.
CRO Services
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Discovery & Partnerships
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Gubra Interim Financial Report H-
Discovery & Partnerships serves as our drug discovery engine for identication of
novel peptide-based candidates within metabolic and brotic diseases.
For drug discovery, Gubra has developed a unique method using machine learning
(ML) and articial intelligence (AI), which accelerates the process from target identi-
cation to drug candidates. We call it the streaMLine platform.
The streaMLine process is a circular process that can evaluate several aspects
of the molecule simultaneously, resulting in the ability to rapidly modify molecule
Discovery & Partnerships
Peptide
synthesis
at scale
In vivo
pharma-
cology
and
bioanalysis
Parallelized
in vitro
and
CMC exploration
Automated
data
capture
AI-based
analysis
Automated
compound
design
designs and thus optimizing the hit molecule before testing it in vivo in our readily
available and translatable models. The streaMLine platform enables us to run multi-
ple projects in parallel with fewer resources, and thus lowering pre-clinical develop-
ment costs per project.
When our projects are matured, they are included in our R&D pipeline and ready
to be out-licenses to partners. Our approach is to out-license our projects early to
reduce risks.
streaMLine advantages
+ Design of more than 4,000 peptides per month vs a few
hundred before use of streaMLine
+ Focus on 4-6 projects simultaneously instead of 2-3 using
fewer researchers = time eciency and lower costs
+ Improved patent potential
Scan the code to know more about our
Discovery & Partnership programs
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Scan the code to know more about our expanding pipeline
R&D pipeline
Our Discovery & Partnerships business is built on a portfolio strategy with an aim
to generate revenue through early partnering of our drug candidates. With this
approach we reduce development costs in the clinical development phases while
maintaining a potential upside in the form of upfront payments, research payments,
milestone payments and royalties.
We currently have an R&D portfolio of 14 novel peptide-based candidates within
metabolic and brotic diseases of which 5 have been partnered. Our ambition is to
enter into 1-2 new partnerships per year.
Our most mature internal project is the Amylin asset for the treatment of obesity,
which we are preparing for clinical Phase 1 (see further on next page). Apart from the
Amylin asset, we also made signicant progress in the other assets in our portfolio
during H1-2023 and in particular:
+
Orexin was added to the R&D portfolio. Orexin is an internally developed
brain-accessible orexin peptide for the treatment of narcolepsy. The results so far
shows the peptide can cross the blood-brain-barrier and induce a positive eect
in in a mouse narcolepsy disease model. These results also suggest that we can
use streaMLine to develop blood-brain-barrier penetrating peptides which have
tremendous potential in multiple CNS-related disorders.
+
Results from the Phase 1 study for the partnership obesity project with Boehringer-
Ingelheim was presented at the European Congress on Obesity, ECO 2023.
The results showed positive eects on energy intake and gastric emptying and
no unexpected safety concerns.
Balanced mix of internal &
partnered programs
DKK around 450 mill.
total partnerships payments since 2013 to date
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Gubra Interim Financial Report H-
Promising own
Amylin project
for obesity
DEEP DIVE
One of our own most promising assets in the pipeline is the Amylin project
for the treatment of obesity. The project is expected to progress it into early
clinical development, with a rst in-human trial planned to start at the end
of 2023.
The study drug which will be tested in the clinical trial has been manufactured
and ongoing studies will investigate the stability of the study drug. Before
testing in a human study, several non-clinical toxicology studies must be
completed to conrm safety. These studies are almost completed, and results
look promising for further development.
Our Amylin asset has proven very successful in reducing body weight in an
animal disease model. Administered as monotherapy, it shows a weight loss
of around 10% aer a month. Combining it with a GLP-1, a hormone that plays
important roles regulating appetite and blood sugar levels, the weight loss is
amplied to around 20% aer a month.
The Amylin asset is patent protected beyond 2040 based on data derived
from our streaMLine platform.
81
91
101
1 6 11 16 21 26
Study day
Body weight (%)
Vehicle
Gubra Amylin
Semaglutide
Gubra Amylin +
Semaglutide
Relative body weight
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Financial results H1-2023
DKK million H1 2023 H1 2022
Income statement
Revenue 101.8 97.7
CRO revenue 80.1 66.2
D&P revenue 21.8 31.5
Gross prot 55.1 44.1
EBIT -22.8 -9.0
Special Items and Gubra Green* 13.6 22.8
Adjusted EBIT* -9.2 13.8
Prot/loss for the period -18.1 -6.9
Balance sheet and cash ow
Equity 506.4 86.5
Cash ows from operating activities -13.6 55.5
Cash ows from investing activities -362.5 -7.4
Cash ows from nancing activities 387.7 -73.4
Key gures and ratios
EBIT margin -22% -7%
Adjusted EBIT margin* -9% 14%
CRO EBIT 13.4 7.4
CRO special items 7.8 11.6
CRO adjusted EBIT* 21.2 18.9
CRO adjusted EBIT margin* 27% 29%
D&P total costs (adjusted)* -52.3 -36.6
D&P total costs excl. Amylin asset (adjusted)* -42.2 -35.3
* Adjustment for special items and Gubra Green cost: 13.6 22.8
IPO costs 8.3 1.4
Cost recognition of incentive programs from 2022
and earlier (non-cash eect)
5.1 19.2
Costs related to sale of headquarter 0.6 - -
Cost of Gubra Green -0.4 2.2
Revenue
In H1 2023, Gubra recorded total revenue of DKK 101.8 million compared to
DKK 97.7 million in H1 2022. The revenue increase was driven by the CRO seg-
ment with growth across disease categories and most notably within Liver and
Kidney studies. This resulted in a 21% revenue increase for the CRO business
year-over-year, landing the revenue from the CRO business at DKK 80.1 million
(H1 2022: DKK 66.2 million).
The growth within Liver followed the positive trend seen since Q4-2022 where
positive late-stage clinical data rejuvenated the interest in this eld. This
has translated into increased demand for Gubra’s pre-clinical liver models.
The kidney disease category also experienced substantial growth in H1 2023
compared to H1 2022. During the past years, Gubra has developed a large and
mature kidney model catalogue, and now we are experiencing traction from
both big pharma and small biotech. Finally, the increased focus in the phar-
maceutical industry on obesity has led to high activity in this branch of the
Gubra model-portfolio.
In H1 2023, revenue from Discovery & Partnerships (D&P) segment amounted
to DKK 21.8 million (H1 2022: DKK 31.5 million). It is important to understand
that revenue from the D&P segment is volatile by nature – in contrast to the
more stable CRO service business. In certain periods a number of milestones
are triggered and the D&P revenue increases signicantly, and in periods less
milestones are triggered resulting in lower D&P revenue.
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Adjusted EBIT
Group adjusted EBIT for H1 2023 was, as expected, negative and amounted to
DKK -9.2 million (H1 2022: DKK 13.8 million). This decline in earnings was driven by
growth in personnel and increased costs related to the Amylin asset. Gubra has
grown its organisation to around 200 employees in H1 2023 compared to around
175 employees in H1 2022 (average for the period). Costs for developing the
Amylin asset amounted to DKK 10 million in H1 2023, in accordance with
expectations, compared to very limited Amylin costs in the same period last year.
For the CRO business, adjusted EBIT was up 11% y/y to DKK 21.1 million driven
by the revenue increase. In terms of adjusted EBIT-margin, it stood at 27%
compared to 29% in H1 2022. The margin decline is explained by the afore-
mentioned growth in the personnel cost base as well as the launch of long-
term incentive programs for employees where costs are recognized during the
duration of the programs. The laer meant cost recognition of DKK 1.1 million in
H1 2023. For the full-year 2023, around DKK 4.4 million is expected to be recog-
nised as costs (the incentive programs were implemented in June 2023).
Reported EBIT totalled DKK -22.8 million in H1 2023. The dierence vis-à-vis
adjusted EBIT is primarily explained by adjustments for IPO related costs and
costs recognition of employee incentive program that was implemented in the
years prior to 2023 (no cash ow impact).
Net nancial income and expenses
For H1 2023, net nancials amounted to a cost of DKK 0.3 million (H1 2022 cost of
DKK 0.9 million). The lower net nancial cost was driven by interest income from
short-term placement of IPO proceeds in Danish AAA-rated mortgage bonds.
27%
CRO adjusted
EBIT margin
21%
CRO organic
revenue growth y/y
H1-2023
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Tax
For H1 2023, tax on result for the period amounted to a tax income of DKK 5
million (H1 2022 DKK 3.1 million)
Result for the period
Result for the period totalled DKK -18.1 million (H1 2022: DKK -6.9 million). The decline
compared to H1 2022 was mainly due to lower EBIT, partly counterbalanced by
higher net nancial income.
Cash ow
Operating net cash outow for H1 2023 amounted to DKK -13.6 million, against
an inow of DKK 55.5 million for the same period last year. The lover operating
cash ow was driven signicantly by partnership payments received H1 2022 and
lower net prot loss for the period in H1 2022.
Cash ow from investing activities amounted an outow of DKK -362.5 million
(H1 2022: DKk -7.4 million), driven by short-term placement in mortgage bonds, in
part oset by the proceeds from the sale of property end of 2022, amounting to
DKK 65.7 million.
Cash ow from nancing activities H1 2023 amounted to an inow of DKK 387.7
million against an outow for the same period last year amounting to DKK -73.4
million, the large increase in cash ow from nancing activities was driven by the
equity issuance of DKK 500 million.
Equity
Equity was DKK 506.4 million at the end of June 2023 against DKK 108.2 million
at the end of 2022. The signicant increase was due to the capital increase in
connection with the IPO in March 2023 where gross proceeds of DKK 500 million
were raised. This was partly oset by payment of dividend of DKK 68.5 million.
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Financial results Q2-2023
DKK million Q2 2023 Q2 2022
Income statement
Revenue 52.0 46.9
CRO revenue 41.4 33.7
D&P revenue 10.6 13.3
EBIT -3.6 -8.0
Special Items and Gubra Green* 0.7 10.2
Adjusted EBIT* -2.9 2.2
Prot/loss for the period -1.7 -5.3
Key gures and ratios
EBIT margin -8% -15%
Adjusted EBIT margin* -6% 6%
CRO EBIT 9.1 4.2
CRO special items 0.8 5.1
CRO adjusted EBIT 9.9 9.3
CRO adjusted EBIT margin* 24% 28%
* Adjustment for special items and Gubra Green cost: 0.7 10.2
IPO costs 1.3 0.2
Cost recognition of incentive programs from 2022
and earlier (non-cash eect)
- 9.1
Cost of Gubra Green -0.6 0.9
Revenue
In Q2 2023, Gubra recorded total revenue of DKK 52.0 million compared to DKK
46.9 million in Q2 2022. Similar to the development in the rst half of 2023, the
revenue increase in Q2 2023 was driven by the CRO segment with growth across
disease categories and most notably within Liver and Kidney studies. This resulted in
a 23% revenue increase for the CRO business year-over-year, landing the revenue
from the CRO Business at DKK 41.4 million (Q2 2022: DKK 33.7 million).
In Q2 2023, the revenue from Discovery & Partnerships (D&P) segment amounted to DKK
10.6 million (Q2 2022: DKK 13.3 million). It is important to understand that revenue from the
D&P segment is lumpy by nature – in contrast to the more stable CRO service business.
In certain periods a number of milestones are triggered and the D&P revenue increases
signicantly, and in periods less milestones are triggered resulting in lower D&P revenue.
Adjusted EBIT
Group adjusted EBIT for Q2 2023 was, as expected, negative and amounted to DKK
-2.9 million (Q2 2022: DKK 2.2 million). The decline in earnings was as in H1 explained
by the growth for cost in personnel and increased costs related to the Amylin asset,
partly oset by increase in revenue. For the CRO business, adjusted EBIT was up 6%
y/y to DKK 9.9 million driven by the revenue increase. In terms of adjusted EBIT-margin,
it stood at 24% compared to 28% in Q2 2022. The margin decline is explained by the
aforementioned growth in the personnel cost base as well as the launch of long-term
incentive programs for employees where costs are recognized during the duration
of the programs. The laer meant cost recognition of DKK 1.1 million in Q2 2023
(the incentive programs were implemented in June 2023).
The sequential decline from an adjusted EBIT-margin level of 29% in Q1 2023 to 24% in
Q2 2023 is also explained by personnel growth and eects of the incentive programs,
but also lower level of R&D capitalization (such as soware, applications etc.) In Q2 2023,
R&D capitalization amounted to DKK 0.8 million vis-à-vis DKK 1.8 million in Q1 2023.
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DKK'000 Notes H1 2023 H1 2022
Revenue 2 101,817 97,683
Cost of sales -46,724 -53,608
Gross prot 55,094 44,075
Selling, general and administrative costs -37,036 -32,433
Research and development costs -41,954 -21,637
Other operating income 1,086 975
EBIT -22,810 -9,021
Financial income 2,540 12
Financial expenses -2,871 -938
Prot/Loss before tax -23,142 -9,946
Tax 5,003 3,092
Net prot/loss for the period -18,139 -6,854
Other comprehensive income - -
Total comprehensive income for the period -18,139 -6,854
Basic and diluted earnings per share (DKK) -1.29 0.58
Consolidated statements of income
*Basic and diluted earnings per share for H1 2022 has been restrospectively restated due to issuance of bonus shares in Q1 2023.
Gubra Interim Financial Report H1-2023
Consolidated Balance Sheet
DKK’000 Notes 30 June 2023 31 December 2022
ASSETS
Non-current assets
Intangible assets 10,084 7,330
Land and buildings 9,176 12,635
Equipment 8,929 5,094
Right-of-use assets 3 44,362 38,007
Deferred tax assets 7,113 3,759
Deposits 4,089 4,063
Total non-current assets 83,754 70,888
Current assets
Trade receivables 4 24,389 36,093
Contract work in progress - 3,255
Prepayments 3,937 9,941
Other receivables 7,223 5,136
Other nancial assets 420,611 65,664
Cash and cash equivalents 83,503 71,925
Total current assets 539,663 192,014
Total assets 623,417 262,902
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Consolidated Balance Sheet
DKK’000 Notes 30 June 2023 31 December 2022
EQUITY
Share capital 5 16,350 133
Retained earnings 490,078 108,074
Total equity 506,428 108,207
LIABILITIES
Non-current liabilities
Lease liabilities 3 66,564 60,962
Other liabilities, Long term 848 -
Total non-current liabilities 67,412 60,962
Current liabilities
Lease liabilities 3 7,735 8,441
Share-based payments - 19,043
Deferred income 3,444 3,171
Trade payables 6,768 10,592
Contract liability 17,926 31,851
Tax payables 2,216 4,437
Other liabilities 4 11,488 16,198
Total current liabilities 49,576 93,733
Total liabilities 116,989 154,695
Total equity and liabilities 623,417 262,902
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Gubra Interim Financial Report H1-2023
Consolidated Cash Flow Statement
DKK’000 Notes H1 2023 H1 2022
Cash ow from operating activities
Net prot for the period -18,139 -6,854
Adjustments for non-cash items 5,750 21,846
Changes in net working capital 125 42,388
Interest received 1,140 12
Interest paid -299 -986
Income taxes paid/received -2,221 -912
Net cash inow (outow) from operating activities -13,645 55,494
Cash ow from investing activities
Purchase of property, plant & equipment -1,111 -5,504
Payments for development costs -2,720 -1,659
Proceeds from sale of property related to sale and lease back transaction 65,664 -
Investment in businesss combinations net of cash 6 -5,000 -
Investments in bonds 4 -419,335 -
Deposits -26 -246
Net cash inow (outow) from investing activities -362,528 -7,409
Cash ow from nancing activities
Repayment of borrowings -
-1,078
Principal elements of lease payments 3 -3,451 -1,761
Dividends paid to company's shareholders -68,310 -66,013
Capital Increase, IPO 500,000 -
Transaction costs for equity issuance -40,394 -
Acquisition of treasury shares -124 -4,539
Net cash inow (outow) from nancing activities 387,721 -73,391
Net increase (decrease) in cash and cash equivalents 11,547 -25,306
Cash and cash equivalents at the beginning of the period 71,925 115,785
Exchange rate gain (loss) on cash and cash equivalents 31 -
Cash and cash equivalents at end of period 83,503 90,479
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Gubra Interim Financial Report H1-2023
Consolidated Statements of Changes in Equity
DKK’000 Notes Share capital Retained earnings Total
Equity at 1 January 2022 133 151,330 151,463
Net prot/loss for the period - -6,854 -6,854
Other comprehensive income - - -
Total comprehensive income 0 -6,854 -6,854
Transactions with owners:
Dividends paid - -66,013 -66,013
Acquisition of treasury shares - -4,539 -4,539
Share-based payments - 12,422 12,422
Equity at 30 June 2022 133 86,346 86,479
Equity at 1 January 2023 133 108,074 108,207
Net prot/loss for the period - -18,139 (18,139 )
Other comprehensive income - - -
Total comprehensive income - -18,139 -18,139
Transactions with owners:
Capital conversion, from retained earnings 11,672 -11,672 -
Capital increase 4,545 495,455 500,000
Transaction costs for equity issuance - -40,394 -40,394
Dividends paid - -68,503 -68,503
Acquisition of treasury shares - -124 -124
Share-based payments - 25,381 25,381
Equity at 30 June 2023 16,350 490,078 506,428
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Gubra Interim Financial Report H1-2023
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Notes summary
Note
1. General accounting polices
2. Segment information
3. Leasing
4. Fair value nancial assets and liabilities
5. Share capital
6. Acquisitions
7. Other information
8. Signicant events aer the reporting period
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The unaudited interim financial report for the half year 2023
comprises the financial statement of Gubra A/S and its
subsidiaries (jointly, the “Group”). The interim financial report
has been prepared in accordance with the International
Financial Reporting Standards (IFRS), IAS 34 ’Interim Financial
Reporting’ as adopted by the EU, and further requirements in
the Danish Financial Statements Act (Årsregnskabsloven) for
the presentation of interim reports by listed companies.
The interim financial report follows the accounting policies as
set out in the annual report for 2022, and should as such be
read in conjunction with the annual report. Accounting
policies not previously relevant for the Group can be found
below.
Implementation of new or changed accounting standards
and interpretations
A number of new or amended standards became applicable
for the current reporting period. The group was not required
to change its accounting policies as a result of adopting these
standards.
Business combinations
When accounting for acquisitions of business the acquisition
method is applied. Acquired assets, liabilities and contingent
liabilities are measured at fair value on initial recognition at
the acquisition date. Identifiable intangible assets are
recognized if they can be separated, and the fair value can
be reliably measured. Deferred tax on revaluations is
recognized.
Any positive differences between the consideration trans-
ferred and fair value of the assets, liabilities and contingent
liabilities acquired are recognized as goodwill under “Intangi-
ble assets”. Goodwill is subject to an annual impairment test,
or whenever there is an indication of impairment. Negative
balances (negative goodwill) are recognized in the income
statement at the date of acquisition.
If the initial accounting for a business combination is incom-
plete by the end of the reporting period, in which the acquisi-
tion occurs, provisional amounts will be reported. Adjust-
ments made to the provisional fair value of acquired assets,
liabilities and contingent liabilities or cost of the acquisition
within 12 months of the acquisition date are reflected in the
initial goodwill. The adjustment is calculated as if it had been
recognized at the acquisition date, and comparative figures
are restated.
Changes in estimates of the cost of the acquisition that are
contingent on future events are recognized in the income
statement. Cost related to the acquisition are expensed as
incurred and presented as special items.
Goodwill
Goodwill represents the excess of the cost of an acquisition
over the fair value of the identifiable net assets of the
acquired company.
Other financial assets (Financial instruments)
Initial recognition and measurement financial assets and
financial liabilities are recognized when the Group becomes
party to the contractual provisions of the instrument. Regular
way purchases and sales of financial assets are recognized on
trade date, the date on which the Group commits to purchase
or sell the asset. At initial recognition, the Group measures a
financial asset or financial liability at its fair value plus or
minus, in the case of a financial asset or financial liability not
at fair value through profit or loss, transaction costs that are
incremental and directly attributable to the acquisition or
issue of the financial asset or financial liability, such as fees
and commissions.
Transaction costs off a financial assets and financial liabilities
carried at fair value through profit or loss are expensed in
profit or loss.
Classification and subsequent measurement
The Group classifies its financial instruments in the following
categories assets valued at fair value either via the income
statement or other comprehensive income or financial assets
valued at the amortized cost. The classification of invest-
ments in debt instruments depends on the Group’s business
model for handling financial assets and the contractual terms
for the cash flow of the assets.
Note 1 General accounting policies
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Amortized cost
Assets that are held for the purposes of collecting contrac-
tual cash flows, and where the cash flows only constitute
capital amounts and interest are valued at the amortized
cost. They are included under current assets, with the
exception of items maturing more than 12 months after the
balance sheet date, which are classified as non-current
assets.
Interest income from these financial assets is recognized
using the effective interest method and included in financial
income. The Group’s financial assets that are valued at the
amortized cost are made up of the items other receivables,
and cash and cash equivalents.
Fair value through profit or loss
Assets that do not meet the criteria for amortized cost are
measured at fair value through profit and loss. A gain or loss
on a financial debt investment that is subsequently measured
at fair value through profit or loss and is not part of a hedging
relationship is recognized in the financial net in the period in
which it arises. Interest income from these financial assets is
included in the financial net using the effective interest rate
method. The fixed income fund has been valued and classi-
fied according to fair value via the Income Statement with
level 1 in the valuation hierarchy based on listed prices on a
traded market.
The Group reclassifies financial assets when and only when its
business model for managing those assets changes.
Derecognition
Financial assets, or a portion thereof, are derecognized when
the contractual rights to receive the cash flows from the
assets have expired, or when they have been transferred and
either (i) the Group transfers substantially all the risks and
rewards of ownership, or (ii) the Group neither transfers nor
retains substantially all the risks and rewards of ownership
and the Group has not retained control of the asset.
Impairment of financial assets
Upon every reporting occasion, the Group examines
whether there is objective evidence that a financial asset or
group of assets requires impairment. Objective evidence
consists of observable conditions that have occurred and
have a negative impact on the possibility to recover the
acquisition value.
Critical estimates and judgements
The preparation of the interim financial statements requires
the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs
to exercise judgement in applying the Group’s accounting
policies.
All significant accounting estimates and judgements are
consistent with those described in the Annual report
for 2022.
Note 1, cont.
Gubra Interim Financial Report H1-2023
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DKK’000 CRO D&P Gubra Green Total
H1-2022
Revenue (external) 66,182 31,501 - 97,683
Total segment revenue 66,182 31,501 - 97,683
Depreciation and amortisation -1,621 -1,621 -180 -3,423
EBIT excl. Gubra Green and special items 18,945 -5,135 - 13,810
EBIT margin excl. Gubra Green and special items 29% -16% - 12%
Gubra Green and special items -11,560 -9,048 -2,222 -22,831
EBIT incl. Gubra Green and special items 7,385 -14,183 -2,222 -9,021
DKK’000 CRO D&P Gubra Green Total
H1-2023
Revenue (external) 80,059 21,759 - 101,817
Total segment revenue 80,059 21,759 - 101,817
Depreciation and amortisation -2,269 -2,269 -24 -4,562
EBIT excl. Gubra Green and special items 21,228 -30,444 - -9,216
EBIT margin excl. Gubra Green and special items 27% -140% - -9%
Gubra Green and special items -7,823 -6,210 439 -13,594
EBIT incl. Gubra Green and special items 13,405 -36,654 439 -22,810
Note 2 Segment information
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DKK’000 30 June 2023 31 December 2022
Right of use assets 44,362 38,007
Lease liabilities – Equipment
Current 4,735 5,838
Non-current 11,807 9,650
Total 16,542 15,488
Lease liabilities – Premises
Current 3,000 2,603
Non-current 54,757 51,312
Total 57,757 53,915
Note 3 Leasing
Amounts recognised in the balance sheet
The Group leases laboratory equipment and premises. The balance sheet shows the following amounts relating to leases:
DKK’000 30 June 2023 31 December 2022
Additions to the right-of-use assets during the year 3,077 35,334
Additions to the right-of-use assets during the year, from business combinations 8,402 -
Disposals to the right-of-use assets during the year -2,574 -
The income statement shows the following recognised amounts relating to leases:
DKK’000 30 June 2023 31 December 2022
Depreciation charge of right-of-use assets 2,540 4,029
Interest expense on lease liabilities 2,667 280
Expense relating to short-term leases 354 647
Expense relating to leases of low-value assets 445 309
Cash outflow for leases 3,451 5,949
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Other financial assets measured at fair value through profit and loss end of H1 2023 consists
of acquired SDRO Bonds (Fair value hiearchy level 1), the bonds mature in Q4-2023.
The fair value of other contingent consideration is based on the expected value of earnout
from acquisition (refer to note 6), the calculation is based on non-observable data and thus
categorized as level 3 in the fair value hierarchy.
Note 4 Financial assets and financial liabilities
The Group holds the following financial instruments:
DKK’000 30 June 2023 31 December 2022
Financial assets at amortised cost:
Trade receivables 24,389 36,093
Other financial assets - 65,664
Cash and cash equivalents 83,503 71,925
Total financial assets at amortised cost 107,892 173,682
Financial assets at fair value through profit and loss
Other financial assets 420,611 -
Total Financial assets at fair value through profit and loss 420,611 -
Financial liabilities at amortised cost:
Trade payables 6,768 10,592
Lease liabilities 74,299 69,403
Other liabilities 35,074 74,700
Total Financial liabilities at amortised cost 116,141 154,695
Financial liabilities at fair value through profit and loss
Contingent consideration included in Other liabilities 848 -
Total Financial liabilities at fair value through profit and loss 848 -
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In Q1 2023 a decision was made to convert the company to a public limited liability company
(A/S). In connection with this, the share capital was increased from nominally 132,632 (as per
year end 2022) to nominally 11,804,248 by issuance of 11,671,616 bonus shares, keeping the
nominal value per share at DKK 1. The bonus shares were issued pro rata to existing share-
holders, which increased the number of treasury share from 318 to 28,302.
At the end of Q1 2023 another capital increase was made in connection with the IPO,
increasing the number of shares by 4,454,455 at nominal value per share DKK 1.
During H1 a total of 4,238 shares were acquired as treasury shares.
Dividend for the year was paid before capital increases.
Note 5 Share capital
30 June 2023 31 December 2022
No./DKK
Number of
shares
Nominal
value
Number of
shares
Nominal
value
The share capital comprise:
Ordinary shares (fully paid) 16,349,703 16,349,703 132,632 132,632
30 June 2023 31 December 2022
Number of treasury shares 32,540 318
Proportion of share capital 0.20% 0.24%
DKK per share 30 June 2023 31 December 2022
Total dividend paid out for the year 516 500
Dividends per share
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Note 6 Business combinations
The contingent consideration arrangement has been calculated based on an expected
earn out.
The acquisition has very limited activity in 2023, and has not had any impact on Group
statements of income, which would also be the case for a full year pro forma basis.
On 29 June 2023, Gubra A/S acquired MiniGut ApS. MiniGut ApS is a fully equipped minipig
contract research organisation (CRO). The acquisition enables Gubra to perform minipig
studies and adds a large animal model to Gubra’s CRO service.
DKK’000 Minigut
Consideration
Cash consideration 5,113
Contingent Consideration 848
Total 5,961
Recognised amounts of indentifiable assets acquired and liabilities assumed
Other intangible assets* 858
PPE* 3,511
Right of use asset* 8,402
Financial liabilities* -5,275
Deferred tax liabilities* -1,649
Cash at bank 113
Net identifiable assets acquired 5,961
*Amounts are provisional and pending final valuations.
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Note 7 Other information
Share based remuneration programs to employees
In June 2023, Gubra implemented two long-term incentive
programs for employees (LTIP 2023). One being a Restricted
Stock Unit (RSU) program and the other being a warrants
program.
Restricted Stock Unit (“RSU”) program 2023
The RSU program is directed to employees that has been
employed in Gubra for a certain period of time. The RSUs are
granted free of charge to the employees.
The RSUs will vest over two years (1/24 allocation per month)
and be exchangeable into ordinary shares (one RSU to one
ordinary share). Grant, vesting and/or exchange of the RSUs
is not subject to achievement of performance targets, but
conditional on continued employment during the vesting
period.
In total, 41,544 RSU was granted to employees in the LTIP
2023 program. This corresponds to 0.25% of the share capital
in Gubra.
Since there is no exercise price for the RSUs, the value of each
RSU equals the share price. At grant date on 1 June 2023, the
value of each RSU was DKK 98 and the total value of the RSU
program for 2023 amounted to DKK 4.1 million. In Q2 2023
(and H1 2023), costs of DKK 0.6 million was recognised.
For full-year 2023, DKK 2.6 million is expected to recognized
as costs.
Warrant program 2023
The warrant program is directed to Management members.
The warrants are granted free of charge to the Management
members.
The warrants will vest over three years (1/36 allocation per
month) and be exercisable for a two year period following full
vesting. Each vested warrant entitles a right to acquire one
new ordinary share at the exercise price. Grant, vesting and/
or exercise of the warrants is not subject to achievement of
performance targets, but conditional on continued employ-
ment during the vesting period.
The exercise price constitutes the volume weighted average
share price of the Gubra’s shares for the five trading days
prior to the date of grant, i.e. DKK 98.6. The warrants were
granted on 1 June 2023.
In total, 98,793 warrants were granted to Management in the
LTIP 2023 program. This corresponds to 0.6% of the total
share capital on a fully diluted basis.
The warrants have been valued based on the Black-Scholes
option pricing model, which is a commonly used model for
warrant pricing. The Black-Scholes option pricing model takes
into consideration the exercise price, the term of the options,
share price on the allotment date and expected volatility in
the share price, and risk-free interest for the term of the
options. Judgement has been made to estimate the following
parameters:
+ Estimated time of exercise: The warrants can be exercised
between the end of the vesting period and the expiry of the
warrants, which is five years after the grant date (two years
after the last vesting date). This means that there does not
exist a single fixed exercise date for the warrants. In line
with common practise, it is assumed that the warrants are,
on average, exercised halfway through the two years where
the warrants can be exercised (i.e. one year after ended
vesting, or four years after grant).
+ Volatility: As Gubra was listed in 2023 there is only short
share price history. Volatility has therefore been estimated
using a benchmark volatility based on 9 peers in the CRO
industry. Using this, a volatility of 45% has been applied.
+ The risk-free interest rate: This is based on the yield curve
for Danish government bonds as per the valuation date with
a time to maturity that corresponds to the expected time to
maturity of the warrants. Based hereon, a risk-free rate of
2.6% was applied.
At grant on 1 June 2023, the value of each warrant was DKK 37
and the total value of the warrant program for 2023
amounted to DKK 3.7 million. In Q2 2023 (and H1 2023), costs
of DKK 0.4 million was recognised. For full-year 2023, DKK 1.8
million is expected to recognized as costs.
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Note 8 Significant events after the reporting period
On 21 August 2023, Gubra announced the signing of an agree-
ment with Hemab concerning a peptide collaboration for the
treatment of certain bleeding disorders. Under the pre-col-
laboration agreement, Gubra will receive a single digit DKK
million payment in Q3 2023. A full collaboration agreement is
being finalised and will be signed at a later stage once final
terms have been agreed to.
On 23 August 2023, Gubra announced the termination of its
cardio-renal peptide programme collaboration with Bayer
AG. Bayer will return the asset following a portfolio review.
The peptide programme was licensed to Bayer in 2021 and
Gubra was eligible to receive milestone payments and
royalties on global sales which will no longer be the case
as the programme is handed back.
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BOARD OF DIRECTORS
EXECUTIVE MANAGEMENT
Gubra A/S
