2 Gubra Interim Financial Report H1 2024
Management review
Business
Management review
Financials
Consolidated nancial
Statements
Management review
03 About Gubra
04 CEO statement
06 Financial outlook and guidance
07 Recent key events in 2024
08 Market trends - Obesity
09 CRO business
12 Discovery & Partnerships
17 Financial results H1 2024
20 Financial results Q2 2024
Financial statements
21 Consolidated statements of income
22 Consolidated Balance Sheet
24 Consolidated Cash Flow Statement
25 Consolidated Statements of Changes in Equity
26 Notes
35 Statement of the Board of Directors and the Executive Management
Table of content
Earnings call info
The H1 2024 report will be presented to investors and analysts on
22 August 2024 at 10.00 CET.
The presentation can be followed live via the link: here
To participate in the telephone conference, please use the dial-in details
shown below:
DK: +45 7071 7174
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When dialling-in, please state the name of the call “Gubra Q2 2024 earnings
release” or the conference ID: 5443319.
Presentation slides will be available prior to the earnings call and can be
downloaded here
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Gubra Interim Financial Report H 3
About Gubra
Gubra, founded in 2008 in Denmark, is specialized in high-end pre-clinical contract
research services (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
into two business areas – CRO Services and Discovery & Partnerships (D&P). The two
business areas are highly synergistic and create a unique entity capable of generating
a steady cash ow from the CRO business while at the same time beneting from
biotechnology upside in the form of potential development milestone payments and
potential royalties from the D&P business.
Gubra’s shares are listed on NASDAQ Copenhagen with ticker code GUBRA.
Operational synergies
Specialized pre-clinical
contract research and
development services
for pharma and
biotech companies.
CRO Services
Discovery, design and
development of peptide-based
drug candidates with the
aim of entering partnerships
with pharma and
biotech companies.
Discovery &
Partnerships
Management review
Financials
235
Employees
30 June 2024
30%
Yearly revenue growth (CAGR)
Since inception (2009-2023)
51%
CRO revenue from the US
in H1 2024
15 out of top 20
largest pharma companies
Gubra has served
20
countries
Customers in
4 Gubra Interim Financial Report H1 2024
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CEO statement
D&P business – UCN2 preclinical
development initiated
Our UCN2 program for high quality
weight loss is being prepared for further
development. High quality weight
I am very pleased with the progress
in the rst half of 2024 – across the
company. We continue to grow our CRO
service business at high pace and at
the same time we take important steps
forward in our D&P business. In parallel,
we expand our organization to match
this high activity level.
CRO business – continued high growth
Our CRO business continues to grow
across several disease categories, and
it underscores the value of maintaining
focus as well as broadening our dis-
ease model catalogue. In the rst half
of the year, we grew our CRO revenue
organically by 34% year-over-year. We
saw particularly strong growth in our
obesity services which is well in line with
a general trend seen in the biotech and
pharma industry.
CRO business – raised nancial outlook
On the back of the strong rst half and
sound current trading and orderbook,
we recently raised the 2024 nancial
outlook for the CRO business. We now
expect organic revenue growth of 23-
28% in 2024 compared to the record
year 2023 (our previous expectation
was organic growth of 15-20%). We also
raised the outlook to adjusted EBIT-
loss focuses on body composition and
promotes fat loss while preserving lean
muscle mass to induce a healthy and
sustained weight loss. UCN2 has the
potential to improve the body compo-
Continued strong progress
- across Gubra
”
margin of 29-32% (previously 28-31%).
D&P business – dosing cohort 5 and 6 in
Amylin SAD trial
Our most progressed internal anti-obe-
sity asset, Amylin GUBamy, completed
as planned enrolment of all key cohorts
in June (cohorts 1-4) in the Phase 1 SAD-
study. We were pleased to conclude on
the safety prole for these key cohorts
that allowed us to move forward and
dose the additional optional cohort ve
(July 2024) and six (August 2024). We
nd it encouraging that the safety pro-
le observed allowed for the inclusion of
the optional cohorts which means that
topline results are now expected in late
2024. As customary in SAD-studies, the
primary objective of the study is safety.
D&P business – regulatory approval to
start Amylin MAD study
Following the favourable safety prole
observed in the SAD-study, the next
step in Phase 1 is to initiate the multiple
ascending dosing (MAD) part of the
study. The MAD part of the study was
recently approved by the British health
authority (MHRA) and will include an
estimated 64 participants. It is expect-
ed to start in September 2024 and to
complete dosing in Q4 2025.
— Henrik Blou. CEO
5 Gubra Interim Financial Report H1 2024
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sition and thereby overcome a short-
coming with the currently approved
anti-obesity drugs where 20-40% of the
body weight reduction being unwanted
loss of lean body mass (muscles, bones,
internal organs). We now have initiated
the GMP-production of the UCN2 API
and expect to initiate the non-clini-
cal toxicity programme in late 2024.
Planning is also ongoing for a clinical
study potentially starting in late 2025/
early 2026.
D&P business – second partnership
project with BI to clinical testing
In July 2024, together with our collabo-
ration partner Boehringer Ingelheim (BI)
we announced the launch of a Phase 1
study including BI 3034701, a long-act-
ing triple agonist peptide with a poten-
tial to become a next-generation and
rst-in-class obesity treatment. We are
excited to see BI taking this drug candi-
date from our second obesity partner-
ship to clinical testing. The study has an
estimated 124 participants with study
completion expected in H2 2025.
Looking ahead
It is great to conclude on a highly
successful rst half of 2024. It gives us
condence to continue our growth jour-
ney rooted in scientic entrepreneurship
and we aim to continue the development
of both our CRO business as well as our
D&P business at high pace.
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Gubra Interim Financial Report H 6
Financial outlook and guidance
* Total costs are cost of sales and operating costs
Guidance items New 2024 outlook Previous 2024 outlook Results H1 2024 Mid-term guidance
CRO segment
Organic revenue growth
23-28%
15-20% 34% 10% annually
Adjusted EBIT-margin (adj. for special items)
29-32%
28-31% 32% 35-40%
Discovery & Partnerships segment
Number of new partnerships per year
1-2
1-2 – 1-2
Total costs (adj. for special items)*
DKK 160-170 million
DKK 160-170 million DKK 69 million
Total costs excl. Amylin asset (adj. for special items)*
DKK 115-125 million
DKK 115-125 million DKK 58 million
Comments to 2024 outlook
In the adjusted EBIT-margin outlook for the CRO business, we have excluded
expected buildup costs of the Minipig business that was acquired in 2023
(revenue eects from Minipig will also be deducted) as well as expected
buildup cost of new technology platforms.
In H1 2024 specically, we have also adjusted for one-o layo costs
related to Gubra’s former Chief Operating Ocer.
The adjustments are made to present the underlying business excluding
eects from buildup costs.
For the subsidiary and business segment Gubra Green, revenue in 2024
is expected to be minimal. Costs are expected to be below DKK 1 million.
Forward-looking statements
The half-year report contains forward-looking statements, which include
projections of our short- and long-term nancial performance.
These statements are by nature uncertain and associated with risk.
Many factors may cause the actual development to dier materially from
Gubra's expectations.
Read more about the risks in the Annual Report 2023 in the chapter
concerning Risks and Risk Management.
Recent key events in 2024
7 Gubra Interim Financial Report H1 2024
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Key cohorts completed
Completion of enrolment of key
cohorts in SAD GUBamy phase 1 study
JUNE 2024
2nd BI partnership program
to the clinic
Initiation of phase 1 clinical trial
in partnership BI#2
JULY 2024
Regulatory approval of
MAD-study
Regulatory approval of MAD GUBamy
phase 1 study
JULY 2024
Concluded
research agreement
Research agreement with
Silence Therapeutics concluded
JANUARY 2024
UCN2 revealed
UCN2 unveiled as novel anti-obesity
drug candidate for healthy weight loss
APRIL 2024
UCN2
Raised nancial outlook
Full-year 2024 nancial outlook
raised upwards
MAY 2024
Gubra awarded
Gubra wins the award as
biotech company of the year in DK
(from Dansk Biotech)
JUNE 2024
BIOTECH
company
of the year
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8
Market Trends – Obesity
Value of the global obesity drug market **
USD 128 billion
2030
USD 14 billion
2020
Gubra Interim Financial Report H
Global prevalence of obesity is increasing
More than 1 billion people worldwide live with obesity, and numbers are continuing to rise.
Estimations show that by 2035, 24% of the entire world population will be aected by obesity
(BMI>30) and the gure increases to 51% if people living with overweight is added (BMI 25-30).
Obesity is a major risk factor for cardiovascular, renal, and metabolic (CRM) diseases as well
as for several types of cancer, which collectively are a leading cause of death worldwide.
Next-generation weight loss drug therapies
Obesity pharmacotherapy is a rapidly moving eld. The recent FDA-approval of semaglutide
and tirzepatide for weight management has spurred intense research within obesity drug
and target discovery. As a result, the pre-clinical and clinical pipeline of innovative weight
loss drugs is expanding as the industry is rushing to develop rst- or best-in-class weight loss
drugs.
Gubra expects that the landscape of obesity medications will diversify to oer both novel mon-
otherapies, drug combination concepts and dual/triple hormone receptor agonists.
As such, next–generation anti-obesity drugs will continue to be based on long-acting enteroen-
docrine cell-derived hormone analogues with complementary actions which hold promise for
enhancing weight loss ecacy while also improving tolerability. Future treatments will likely
also be tailored to dierent patient segments with dierent medical needs.
Dierentiating factors
for obesity treatment
Signicant
weight loss
Reduce GI
side-eects
Healthy
weight loss
Dosing/delivery
exibility
Eect on
co-morbidity
*source: World Obesity Atlas 2023
**source: Goldman Sachs
Number of obese and overweight
people globally*
+54%
4.0 billion
2035
2.6 billion
2020
People with overweight (BMI 25-30)
People with obesity (BMI >30)
1.0
1.6 2.1
1.9
Number of obese and overweight
people as % of global population *
20352020
51%
38%
9 Gubra Interim Financial Report H1 2024
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In Vivo
Pharmacology
Assays & Molecular
Pharmacology
Bioinformatics & NGS
(Next gen sequencing)
2D & 3D Histology with
AI Pathology
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.
Growing the number of clients
Scan the code to know more about our CRO business
Management review
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Existing clients New clients
29
45
76
67
71
94
2016 2017 2018 2019 2020 2021 2022
100
2023
101
10 Gubra Interim Financial Report H1 2024
Consolidated nancial
Statements
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)
Revenue per disease
area and region in
H1 2024
Other 12%
Revenue by disease area Revenue by geographic region
MASH/Liver 21%
Obesity 36%
Kidney 18%
IPF/Lung 8%
North America 51%Europe 47%
Other 2%
CNS 6%
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11 Gubra Interim Financial Report H1 2024
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Obesity and
3D Imaging
What is the role of the brain in obesity, and can a beer understanding of the
neural circuits involved in appetite regulation help in the development of new and
beer obesity drugs? At Gubra, we believe the answer to both questions is yes,
which is why we are investing in expanding our leadership in whole-brain imaging.
Our unique platform is developed around our Gubra brain atlas, a three-dimen-
sional coordinate system that can be compared to a GPS system for the brain.
Every time a mouse brain is processed at Gubra, it is mapped into our Gubra atlas,
and each neuron in the brain is assigned specic x, y and z coordinates. Since
this can be done for many brains simultaneously, it is possible to generate aver-
age maps for every drug that is analyzed using whole brain imaging. The result-
ing maps can vary in nature, depending on the disease of interest. For example,
they can display diverse endpoints such as neuronal activity in response to drug
treatment, plaque burden in an Alzheimer’s model, or alpha-synuclein spreading in
Parkinson’s disease. Common to all these maps is that they are digital representa-
tions of a given condition.
Because all maps generated use the same coordinate system, it is possible to
compare dierent maps to each other virtually. In a recent study we used whole
brain imaging to visualize the brain activity maps in response to 6 dierent obesity
drugs (Hansen et al., 2021). Interestingly these drugs resulted in unique brain signa-
tures that could easily be distinguished from each other. Remarkably the resulting
virtual brain map displayed the combined data of 84 mouse brains and millions of
neurons.
At Gubra, we believe we are at the threshold of a future where virtual neurosci-
ence will become an integral part of pre-clinical research and help accelerate the
development of novel drugs. A future where it will be possible to predict unwanted
side eects or determine the most ecacious drug, virtually!
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Gubra Interim Financial Report H 12
We continue to develop the streaMLine platform
The streaMLine platform is our drug discovery engine for development of pep-
tide-based drugs.
Using the platform, we can quickly develop a peptide hit molecule into a novel IP-
protected Development Candidate. We have successfully done so for both internal
and partnered programs and continue to do so. The platform takes advantage of AI
and high-throughput screening to enable multi-parameter optimization which saves
time and enables identication of beer molecules.
Discovery & Partnerships
Once our projects have matured, they are included in our R&D pipeline and are
ready to be out-licensed to partners. Our approach is to out-license our projects
early to reduce risks and costs.
In H1 2024, we have implemented an in silico hit generator into our streaMLine
platform. It works upstream of our existing streaMLine platform. By leveraging deep
learning models, we can generate novel peptide hits for a target (e.g. soluble or
membrane-embedded proteins) creating a robust foundation for identifying hit mol-
ecules in drug discovery projects. This enables us to work on known targets where
there is no publicly available peptide hit, which opens for new peptide projects.
Generated peptides are initially ranked and scored in silico, followed by in vitro test-
ing and optimization before in vivo validation.
Scan the code to know
more about our Discovery
& Partnership programs
streaMLine advantages
+ Fast generation of a Development
Candidate (< 1.5 year)
+ Design of over 4,000 peptides per
month – compared to a few hundred
before the use of streaMLine
+ Multi-parameter optimization
accelerating candidate identication
+ Improved patent potential
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Gubra Interim Financial Report H 13
Scan the code to know more about our expanding pipeline
R&D pipeline
+ We have a portfolio strategy, which aims to generate revenue through early
partnering of our drug candidates.
+ Our stronghold is the development of hormone like peptide drugs particularly
within metabolic diseases such as obesity .
+ Our ambition is to enter into 1-2 new partnerships per year.
Strong achievements in H1 2024
+ The most advanced of the internal programs is GUBamy (Amylin) currently in
clinical Phase 1a (SAD-study). Dosing of key cohorts (1-4 out of total 6 cohorts)
was completed in June 2024. Following a supportive safety data, cohort 5 was
completed in July 2024 and last cohort will start in August 2024.
+ UCN2 program for healthy weight loss is progressing into pre-clinical develop-
ment.
+ The advance of our R&D pipeline is a testimony to our drug discovery platform
streaMLine which can be used to develop a very broad range of peptides into
potential drug candidates.
Our pipeline
approach
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Gubra Interim Financial Report H-14
Current obesity partnerships
The rst partnership with Boehringer Ingelheim was formed in 2017 and the
most recent in 2023. In all partnerships, Gubra has granted worldwide rights
to further develop and commercialise the compounds, while Gubra is entitled
to receive partnership payments in the form of upfront payments, research
payments, milestone payments and royalties.
1
3
2
4
The rst partnership concerns development of a novel long-acting neuro-
peptide Y receptor type 2 (NPY2) agonist (BI 1820237). Results from clinical
Phase 1 were presented in 2023 that showed positive eects on energy
intake and gastric emptying and no unexpected safety concerns. The com-
pound is currently being tested in an ongoing clinical trial in combination
with two other anti-obesity compounds.
The second partnership is a rst-in-class long-acting triple agonist (BI
3034701). The project entered clinical Phase 1 in July 2024 with study com-
pletion expected in H2-2025. 124 participants are estimated to be enrolled
into the study.
The third anti-obesity partnership concerns the identication and valida-
tion of targets and innovative peptide compounds. The project is currently
in the drug discovery phase.
The most recent anti-obesity partnership concerns the discovery of novel
peptides and takes on a new approach to identify, validate and develop
innovative treatments with the aim of improving health outcomes for people
living with obesity. The project is currently in the drug discovery phase.
Obesity
collaborations
1
2
3
4
Boehringer Ingelheim partnerships
Gubra Interim Financial Report H 14
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Gubra Interim Financial Report H-15
Pre-clinical results
GUBamy holds promising potential as a novel treatment option both as a mono-
therapy and in combination with other anti-obesity drugs. Our pre-clinical studies
have shown signicant weight loss with GUBamy alone and additive weight loss
in combination with other anti-obesity drugs (see graph to the le on this page).
Administered as monotherapy in obese rats, it shows a weight loss of around 10%
aer a month. Combining it with a GLP-1, a hormone that plays important roles reg-
ulating appetite and blood sugar levels, the weight loss is amplied to around 20%
aer a month.
Ongoing Phase 1 study
The Phase 1, a two-part First-In-Human, randomized, single and multiple ascending
dose study (SAD and MAD), will assess safety, tolerability, pharmacokinetics, and
pharmacodynamics of GUBamy administered in lean to overweight but otherwise
healthy subjects. The SAD study is conducted in up to 48 subjects divided in 6 co-
horts. In addition to assessing the safety (primary objective), the study will also eval-
uate the pharmacokinetic properties of GUBamy as well as the pharmacodynamic
eects on gastric emptying and metabolic and hormonal changes.
The SAD study completed dosing of key cohorts 1-4 in June 2024. Following a
favourable safety prole, dosing of cohort 5 was completed in July 2024 and last
cohort with a dose of 6.0 mg will start in August 2024. Topline results are expected in
late 2024. Additional information about the study is available via ClinicalTrials.gov
(NCT06144684).
On the back of supportive safety data from the SAD-study and non-clinical GLP
toxicity studies, regulaltory approval has been given to the start the MAD study. The
MAD study with estimated 52 participants is expected to start in September 2024
and dosing to be completed in Q4 2025.
About GUBamy in more detail
GUBamy is a long-acting amylin agonist for once weekly subcutaneous (s.c.) admin-
istration. The drug product is a sterile solution with a neutral pH. The physical and
chemical properties of GUBamy solution are compatible with possible co-formu-
lation with other anti-obesity injectable drugs (e.g. GLP-1 agonists, dual and triple
agonists etc.). The Amylin asset is patent-protected beyond 2040 based on data
derived from our streaMLine platform.
Promising own
Amylin project
for obesity
Gubra Interim Financial Report H 15
81
91
101
1 6 11 16 21 26
Study day
Body weight (%)
Vehicle
Gubra Amylin
Semaglutide
Gubra Amylin +
Semaglutide
Pre-clinical results: Relative body weight
Gubra Interim Financial Report H 16
High quality weight loss
+ With the current anti-obesity drugs, 20-40% of the body weight lost is
unwanted loss of lean mass (muscles, bones, internal organs). In contrast,
high quality weight loss focuses on body composition and promotes fat
loss while preserving lean muscle mass to induce a healthy and sustained
weight loss.
About GUB-UCN2
+ GUB-UCN2 is a long acting Urocortin 2 (UCN2) analogue selectively
activating the corticotropin-releasing hormone receptor 2 (CRHR2) that
has been designed for once weekly subcutaneous (s.c.) administration. We
believe GUB-UCN2 could be well suited as a stand-alone treatment, but
also as a future combination partner with other anti-obesity drugs .
+ The drug properties of this peptide make it suitable for both mono and
combination treatment. In preclinical co-administration studies, we have
shown that UCN2 completely prevents the lean mass loss observed in
diet-induced obese rats treated with either GLP-1 or Amylin agonists while
substantially improving fat mass loss. Furthermore, preclinical data has
revealed a cardiorenal upside of UCN2 treatment.
Lost weight (%)
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UCN2 for high-
quality weight loss
Time to focus on healthy weight loss
Treatment paradigm for future obesity treatment
Lean mass
Fat mass
GUB-UCN2 rescues lean mass loss and improves fat mass loss
in obese rats with an Amylin (Cagrilintide) or a GLP-1R agonist
Increased lean mass Decreased fat mass
Today Tomorrow
Lean - Vehicle
DIO -Vehicle
GUB - UCN2
Cagrilintide
Semaglutide
GUB - UCN2 + Cagrilintide
G
UB - UCN2 + Semaglutide
Lean mass change from baseline (g)
Inreased lean mass
Lean mass change from baseline
-20
-10
0
10
20
30
40
50
60
70
80
*
**
***
***
Lean - Vehicle
DIO -Vehicle
GUB - UCN2
Cagrilintide
Semaglutide
GUB - UCN2 + Cagrilintide
G
UB - UCN2 + Semaglutide
Fat mass change from baseline (g)
Decreased fat mass
Fat mass change from baseline
*
***
***
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
17 Gubra Interim Financial Report H1 2024
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Financial results H1 2024
DKK million
H1 2024 H1 2023
Income statement
Revenue 120.6 101.8
CRO revenue 107.5 80.1
D&P revenue 13.1 21.8
Gross profit 71.6 55.1
EBIT -26.1 -22.8
Special Items 5.5 13.6
Adjusted EBIT* -20.6 -9.2
Profit/loss for the period -20.1 -18.1
Balance sheet and cash flow
Equity
463.9 506.4
Cash flows from operating activities 10.4 -13.6
Cash flows from investing activities -12.8 -362.5
Cash flows from financing activities -4.6 387.7
Key figures and ratios
EBIT margin -22% -22%
Adjusted EBIT margin* -17% -9%
CRO EBIT 31.5 13.4
CRO special items 3.1 7.8
CRO adjusted EBIT* 34.5 21.2
CRO adjusted EBIT margin* 32% 27%
D&P total costs (adjusted)* -68.8 -52.3
D&P total costs excl. Amylin asset (adjusted)* -57.6 -42.2
* Adjustment for special items: 5.5 13.6
Build-up costs (tech projects and Minigut) 2.6 -
Other (layoff costs, IPO costs and other) 2.9 8.5
Cost recognition of incentive programs from 2022 and earlier
(non-cash effect) - 5.1
Revenue
In H1 2024, Gubra recorded total revenue of DKK 120.6 million compared to
DKK 101.8 million in H1 2023. The increase was driven by strong growth in the
CRO services segment, partly oset by lower revenue in the Discovery &
Partnerships segment.
CRO services segment
Revenue in the CRO segment amounted to DKK 107.5 million in H1 2024, which
corresponds to year-over-year increase of 34% (H1 2023: DKK 80.1 million). The
growth was founded across many disease categories with the obesity area be-
ing the strongest driver. Obesity is a key area for Gubra where we have been
active since the foundation of the company in 2008 as a leading high end-pro-
vider of pre-clinical Obesity services. This position has allowed us to capture
the momentum in the pharma and biotech industry to develop new obesity
compounds and combinations.
Discovery & Partnerships segment
In H1 2024, revenue from the Discovery & Partnerships (D&P) segment amount-
ed to DKK 13.1 million (H1 2023: DKK 21.8 million). Revenue from the D&P
segment is volatile by nature – in contrast to the more stable CRO service
business. In certain periods more milestones are triggered, and the D&P reve-
nue increases signicantly, and in other periods less milestones are triggered
resulting in lower D&P revenue. Aer the second quarter (beginning of July), a
milestone from the second collaboration with Boehringer Ingelheim has been
triggered as the program entered clinical Phase 1. This will form part of reve-
nue in Q3 2024.
18 Gubra Interim Financial Report H1 2024
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Adjusted EBIT
As expected, adjusted EBIT for H1 2024 was negative and amounted to DKK -20.6 mil-
lion (H1 2023: DKK -9.2 million). The decline in earnings was primarily driven by growth
in personnel. Gubra has expanded the organisation to 235 employees by the end of
June 2024, corresponding to around 220 employees in H1 2024 and 200 employees in
H1 2023 (averages for the periods).
CRO services segment
Adjusted EBIT increased to DKK 34.5 million compared to DKK 21.2 million in H1 2023.
This increase was driven by the revenue increase, partly oset by increase in person-
nel costs. In terms of adjusted EBIT-margin, it amounted to 32% in H1 2024 compared
to 27% in H1 2023.
Discovery & Partnerships segment
For the D&P segment, adjusted EBIT amounted to DKK -54.8 million compared to DKK
– 30.4 in H1 2023 due to lower revenue and higher costs, primarily personnel costs.
Reported EBIT
Reported EBIT amounted to DKK -26.1 million in H1 2024. The dierence vis-à-vis
adjusted EBIT is primarily explained by build-up costs of new technology platforms
and Minipig business, one-o layo costs for former Chief Operating Ocer and IPO
bonus costs deferred throughout the one-year vesting period up until 30 March 2024.
Net nancial income and expenses
For H1 2024, net nancials amounted to an income of DKK 5.9 million (H1 2023 cost of
DKK 0.3 million). The increase is explained by interest income from short-term place-
ment of IPO proceeds in Danish AAA-rated mortgage bonds.
Tax
For H1 2024, no tax has been incorporated compared to a tax income of DKK 5
million reported in H1 2023.
19 Gubra Interim Financial Report H1 2024
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Statements
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Management review
Financials
Result for the period
The net result for the period amounted to a loss of DKK 20.1 (H1 2023: DKK -18.1 million).
The decline compared to H1 2023 was mainly due to lower EBIT, partly oset by higher
net nancial income.
Cash ow
Operating net cash inow for H1 2024 amounted to DKK 10.4 million compared to a net
cash outow of DKK 13.6 million for the same period last year. The increase in H1 2024 vs.
H1 2023 is primarily due to changes in working capital and therein favourable movement
in trade receivables.
Cash ow from investing activities in H1 2024 amounted to an outow of DKK 12.8 million
(H1 2023: DKK -362.5 million). The large outow in H1 2023 was due to short-term place-
ment of excess liquidity in AAA-rated Danish mortgage bonds.
Cash ow from nancing activities in H1 2024 amounted to an outow of DKK 4.6 million
compared to an inow for the same period last year amounting to DKK 387.7 million,
where the large increase in cash ow from nancing activities was driven by the equity
issuance of DKK 500 million.
Equity
Equity amounted to DKK 463.9 million at the end of June 2024 compared to DKK
479.7 million at the end of 2023. The decline is explained by the losses incurred.
DKK million
Q2 2024 Q2 2023
Income statement
Revenue 55.6 52.0
CRO revenue 49.0 41.4
D&P revenue 6.6 10.6
EBIT -20.1 -3.6
Special Items 3.5 0.7
Adjusted EBIT* -16.6 -2.9
Profit/loss for the period -16.9 -1.7
Key figures and ratios
EBIT margin -36% -8%
Adjusted EBIT margin* -30% -6%
CRO EBIT 10.0 9.1
CRO special items 2.0 0.8
CRO adjusted EBIT 12.0 9.9
CRO adjusted EBIT margin* 24% 24%
* Adjustment for special items: 3.5 0.7
Build-up costs (tech projects and Minigut) 1.1 -
Other (IPO costs, layoff costs and other) 2.4 0.7
20 Gubra Interim Financial Report H1 2024
Consolidated nancial
Statements
Financial results Q2 2024
Revenue
In Q2 2024, Gubra recorded total revenue of DKK 55.6 million compared to DKK 52.0 mil-
lion in Q2 2023. The increase reects an increase in the CRO segment (up DKK 7.6 million
y/y) partly oset by a decrease in the D&P segment (down DKK 4.0 million y/y).
CRO services segment
For Q2 2024, revenue in the CRO segment was DKK 49.0 million compared to DKK 41.4
million in Q2 2023. The increase was mainly driven by growth within the obesity area. This
resulted in a 18% revenue increase for the CRO business year-over-year.
Discovery & Partnerships segment
In Q2 2024, revenue in the Discovery & Partnerships (D&P) segment amounted to DKK 6.6
million (Q2 2023: DKK 10.6 million). Revenue from the D&P segment varies over time with
some periods having a big number of milestones reached, consequently resulting in high
revenue, whereas other periods have less milestones triggered.
Adjusted EBIT
Adjusted EBIT for Q2 2024 amounted to DKK -16.6 million, negative as expected, similarly
to Q2 2023 (DKK -2.9 million). The decline in earnings was mainly due to higher costs for
personnel following the growth in employees.
CRO services segment
Adjusted EBIT up 21% y/y to DKK 12.0 million driven by the revenue increase partly oset
by growth in personnel costs. Adjusted EBIT margin was to 24% on par with Q2 2023.
Discovery & Partnerships segment
Adjusted EBIT for Q2 2024 amounted to DKK -28.2 million for the D&P segment (H1 2023:
DKK -12.8 million). The decline is explained by lower revenue and higher costs (primarily
increase in personnel costs).
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Management review
Financials
21 Gubra Interim Financial Report H1 2024
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Consolidated statement of comprehensive income
DKK’000
Notes H1 2024 H1 2023
Revenue 2 120,627 101,817
Cost of sales -49,005 -46,724
Gross profit 71,622 55,094
Selling, general and administrative costs -47,721 -37,036
Research and development costs -49,752 -41,954
Other operating income -209 1,086
EBIT -26,060 -22,810
Financial income 7,777 2,540
Financial expenses -1,859 -2,871
Profit (loss) before tax -20,142 -23,142
Tax - 5,003
Net profit (loss) for the year -20,142 -18,139
Other comprehensive income - -
Total comprehensive income for the period -20,142 -18,139
Basic earnings per share (DKK) -1.2 1.3
Total diluted earnings per share -1.2 -1.3
22 Gubra Interim Financial Report H1 2024
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Consolidated Balance Sheet
DKK’000
Notes 30 June 2024 30 June 2023
ASSETS
Non-current assets
Intangible assets 13,828 10,084
Land and buildings 10,753 9,176
Equipment 21,516 8,929
Right-of-use assets 3 63,878 44,362
Deferred tax assets 3,882 7,113
Deposits 4,646 4,089
Total non-current assets 118,503 83,754
Current assets
Trade receivables 4 31,066 24,389
Contract work in progress - -
Income tax receivables 2,179 -
Prepayments 5,621 3,937
Other receivables 6,498 7,223
Other financial assets 399,989 420,611
Cash and cash equivalents 46,905 83,503
Total current assets 492,258 539,663
Total assets 610,761 623,417
23 Gubra Interim Financial Report H1 2024
Consolidated Balance Sheet - continued
DKK’000
Notes 30 June 2024 30 June 2023
EQUITY AND LIABILITIES
Equity
Share capital 5 16,350 16,350
Retained earnings 447,530 490,078
Total equity 463,880 506,428
Non-current liabilities
Lease liabilities 3 78,046 66,564
Other payables 848 848
Total non-current liabilities 78,894 67,412
Current liabilities
Lease liabilities 3 13,414 7,735
Share-based payments - -
Deferred income 3,703 3,444
Trade payables 14,813 6,768
Contract liabilities 19,147 17,926
Tax payables 47 2,216
Other liabilities 4 16,863 11,488
Total current liabilities 67,987 49,576
Total liabilities 146,881 116,989
Total equity and liabilities 610,761 623,417
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Statements
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24 Gubra Interim Financial Report H1 2024
Consolidated Cash Flow Statement
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Consolidated nancial
Statements
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Business
DKK’000
Notes 30 June 2024 30 June 2023
Cash flow from operating activities
Net profit (loss) for the year -20,142 -18,139
Adjustments for non-cash items 8,410 5,750
Changes in net working capital 20,431 125
Interest received 4,592 1,140
Interest paid -2,909 -299
Income taxes paid/received - -2,221
Net cash inflow (outflow) from operating activities 10,382 -13,645
Cash flow from investing activities
Purchase of property, plant & equipment -14,045 -1,111
Payments for development costs -3,528 -2,720
Proceeds from sale of property related to sale and lease back transaction - 65,664
Investment in business combinations - -5,000
Investments in bonds 4 5,040 -419,335
Deposits -236 -26
Net cash inflow (outflow) from investing activities -12,769 -362,528
Cash flow from financing activities
Repayment of borrowings - -
Principal elements of lease payments 3 -4,624 -3,451
Dividends paid to company’s shareholders - -68,310
Capital Increase, IPO - 500,000
Transaction costs for equity issuance - -40,394
Acquisition of treasury shares - -124
Net cash inflow (outflow) from financing activities -4,624 387,721
Net increase (decrease) in cash and cash equivalents -7,011 11,547
Cash and cash equivalents at the beginning of the financial year 53,397 71,925
Exhange rate gain (loss) on cash and cash equivalents 519 31
Cash and cash equivalents at end of year 46,905 83,503
25 Gubra Interim Financial Report H1 2024
Consolidated Statements of Changes in Equity
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DKK’000
Share capital Retained earnings Total
Equity at 1 January 2023 133 108,074 108,207
Net profit/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
Equity at 1 January 2024 16,350 463,309 479,659
Other - 215 215
Net profit/loss for the period - -20,142 -20,142
Total comprehensive income - -19,927 -19,927
Transactions with owners:
Share-based payments - 4,148 4,148
Equity at 30 June 2024 16,350 447,530 463,880
26 Gubra Interim Financial Report H1 2024
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Notes summary
Note
1. General accounting polices
2. Segment information
3. Leasing
4. Financial assets and nancial liabilities
5. Share capital
6. Other information
7. Signicant events aer the reporting period
27 Gubra Interim Financial Report H1 2024
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The unaudited interim financial report for the half year 2024
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 2023, 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
28 Gubra Interim Financial Report H1 2024
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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 2023.
Note 1, cont.
29 Gubra Interim Financial Report H1 2024
Note 2 Segment information
DKK’000
CRO D&P Gubra Green Total
H1 2024
Revenue (external) 107,493 13,134 - 120,627
Total segment revenue 107,493 13,134 - 120,627
Depreciation and amortisation -3,113 -3,113 -25 -6,251
EBIT excl. Gubra Green and special items 34,539 -54,824 - -20,285
EBIT margin excl. Gubra Green and special items 32% -417% -17%
Gubra Green and special items -3,081 -2,757 62 -5,776
EBIT incl. Gubra Green and special items 31,458 -57,581 62 -26,061
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
Consolidated nancial
Statements
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Management review
Financials
30 Gubra Interim Financial Report H1 2024
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Statements
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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 2024 31 December 2023
Right-of-use assets 63,878 43,374
Lease liabilities – Equipment
Current 5,685 4,853
Non-current 20,410 10,239
Total 26,094 15,092
Lease liabilities – Premises
Current 7,730 5,897
Non-current 57,636 50,445
Total 65,366 56,342
DKK’000
30 June 2024 31 December 2023
Additions to the right-of-use assets during the year 8,280 4,264
Additions to the right-of-use assets during the year, from business combinations - 8,971
Disposals to the right-of-use assets during the year -345 -2,900
DKK’000
30 June 2024 31 December 2023
Depreciation charge of right-of-use assets 3,045 5,104
Interest expense on lease liabilities 2,601 4,890
Expense relating to short-term leases 284 657
Expense relating to leases of low-value assets - 816
Cash outflow for leases 7,260 9,945
The income statement shows the following recognised amounts relating to leases:
31 Gubra Interim Financial Report H1 2024
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Statements
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Other financial assets measured at fair value through profit and loss end of H1 2024 consist
of acquired highly liquid AAA-rated Danish mortgage bonds (Fair value hiearchy level 1). The
bonds mature in Q4 2024.
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 2024 31 December 2023
Financial assets at amortised cost:
Trade receivables 31,181 53,027
Cash and cash equivalents 46,905 53,397
Total financial assets at amortised cost 78,086 106,424
Financial assets at fair value through profit and loss
Other financial assets 399,989 403,989
Total Financial assets at fair value through profit and loss 399,989 403,989
Financial liabilities at amortised cost:
Trade payables 14,813 11,405
Lease liabilities 91,460 71,434
Other liabilities 39,713 73,338
Total Financial liabilities at amortised cost 145,986 156,177
Financial liabilities at fair value through profit and loss
Contingent consideration included in Other payables 848 848
Total Financial liabilities at fair value through profit and loss 848 848
32 Gubra Interim Financial Report H1 2024
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During H1 2024, 17,727 treasury shares were delivered to participants in a Restricted Stock
Unit program related to Gubra’s IPO.
Note 5 Share capital
Dividends per share
30 June 2024 31 December 2023
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 16,349,703 16,349,703
DKK per share
30 June 2024 31 December 2023
Total dividend paid out for the year - 516
30 June 2024 31 December 2023
Number of treasury shares 41,544 59,271
Proportion of share capital 0.25% 0.36%
Type program Grant date No. of instruments Vesting period Value at grant
RSU 2023 1 June 2023 41,544 2 years DKK 98/RSU
Warrants 2023 1 June 2023 98,793 3 years DKK 37/warrant
RSU 2024 1 June 2024 5,227 2 years DKK 328/RSU
Warrants 2024 1 June 2024 54,915 3 years DKK 108/warrant
33 Gubra Interim Financial Report H1 2024
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Note 6 Other information
Share based remuneration programs to employees
Gubra has implemented long-term incentive programs for
employees (LTIP 2023 and LTIP 2024). One program type
being a Restricted Stock Unit (RSU) program and the other
type being warrant program. At full utilisation of the warrants
programs, it corresponds to maximum dilution of the share
capital of 1%.
Restricted Stock Unit (“RSU”) programs
The RSU programs are directed to employees that have been
employed in Gubra for a certain period of time. The RSUs are
granted free of charge.
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.
Warrant programs
The warrant program is directed to employees holding a
Director, VP or Management position and are granted free of
charge.
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.
Estimating fair value
RSU
Since there is no exercise price for the RSUs, the value of each
RSU equals the share price at the grant date.
Warrants
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.
More details on parameters in Black-Scholes option pricing
can be found in the Annual Report 2023.
34 Gubra Interim Financial Report H1 2024
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Note 7 Significant events after the reporting period
On 1 July 2024, Boehringer Ingelheim and Gubra announced
the launch of the Phase 1 study (NCT06352437) of BI 3034701,
a long-acting triple agonist peptide with a potential to
become a next-generation and first-in-class obesity treat-
ment.
Board Member
Board Member
35 Gubra Interim Financial Report H1 2024
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Statement of the Board of Directors and the Executive Management
Board Member
Board of Directors
Executive Management
Hørsholm, 22 August 2024
Gubra A/S
