Annual Report 2024
Driven by
Science
Nordic Bioscience Holding A/S · Herlev Hovedgade 205 · DK-2730 · Denmark · CVR No. 30 51 12 71
NORDIC BIOSCIENCE
Introduction
3 At a glance
4 Business model
5 CEO and CFO letter
7 Financial highlights
Our Business
9 What is ECM?
11 R&D Services
14 Clinical Diagnostics
16 Drug development
20 Business Review
Corporate Governance
23 Governance
24 Executive Management
25 Board of Directors
Contents
ESG
27 Environmental, Social and Governance
(ESG)
Financial Statements
30 Consolidated Financial Statements
70 Parent Company Financial Statements
Signatures and statements
81 Management's Statement
82 Independent Auditor's Report
84 Company information
Visit nordicbioscience.com
for the latest news and updates
With more than 25 years of research and over 700
published scientific papers, Nordic Bioscience is a pioneer
in the field of extracellular matrix (EMC). We focus on
using our unique ECM expertise to discover and develop
biomarkers for use in R&D services, clinical diagnostics
and drug development. We have a broad patented ECM
portfolio of over 150 biomarkers covering major disease
areas such as liver, cancer and obesity.
NORDIC BIOSCIENCE AT A GLANCE
Nordic Bioscience
a biomarker
powerhouse
527 DKKm
2024 revenue
171 DKKm
Net profit for the year
455 DKKm
Cash and cash equivalents
at end of year
380 DKKm
Net cash inflow from
operating activities
+150
Biomarkers
+700
Scientific papers
3+3
FDA approved/
supported biomarkers
+500k
Tests annually
Introduction
Nordic Bioscience Holding A/S Annual Report 2024
3
Utilizing unique ECM expertise and biomarker portfolio
Clinical
Diagnostics
R&D
Services
Drug
Development
Preclinical and clinical data analysis
based on proprietary ECM expertise
Biomarkers on critical path of disease
+100 pharma, biotech and CRO customers
Ongoing service revenue, stable cash flow
Diagnostics services leveraging
validated ECM biomarkers
3 FDA approved and 3 FDA
supported biomarkers
Partnership with Roche
Milestone and royality payments
Discovery and development of new
drugs based on ECM expertise
1 compound in clinical phase,
2 in pre-clinical phase
Partnership with Eli Lilly
Upfronts, milestone and royality payments
Business model
We have a business model with three complementary business areas all utilizing our unique ECM expertise.
Revenue and earnings from our R&D and clinical diagnostic services fund our drug development activities
which in turn has a biotechnology upside in the form of potential milestone payments and royalties.
Introduction
Nordic Bioscience Holding A/S Annual Report 2024
4
2024 was in many ways a historically good year for Nordic Bioscience,
financially as well as scientifically.
CEO AND CFO LETTER
A Historically Good Year
for Nordic Bioscience
Total revenue increased almost DKK 200
million to record-high DKK 527 million in
2024. In the R&D Service and Diagnostics
segment, revenue reached DKK 303 million,
up 39%, due to new contract wins and more
late phase tests than previously. In the
Drug Development segment, a milestone
payment from our collaboration with Eli Lilly
resulted in a revenue of DKK 224 million.
The milestone payment from Eli Lilly was a
result of the expanded collaboration agree-
ment with Eli Lilly. The agreement, which
we signed in October 2024, provides Eli Lilly
worldwide rights to develop and commer-
cialise our DACRA molecules, a potential
new class of treatment of obesity and other
indications.
The increased revenue was reflected in
our earnings, where EBITDA on group level
ended at DKK 210 million, corresponding to
an EBITDA margin of almost 40% against
negative 2.8% in 2023. Cash flow from oper-
ating activities of DKK 381 million was also
very strong, resulting in a cash position by
the end of the year of DKK 455 million.
Morten A. Karsdal
CEO
Thomas Nielsen
CFO
Introduction
Nordic Bioscience Holding A/S Annual Report 2024
5
The positive development in 2024 underlines
the strength of our business model, where
our revenue and profit-generating R&D and
diagnostic services fund our drug devel-
opment activities with potential milestone
payments and royalties.
Scientifically, 2024 has also been a good
year. In general, we continue to see an
increase in the understanding and acknowl-
edgement of ECM and its role in disease
progression and new drug development.
This was evidenced by the sponsor interest
and huge turnout at the bi-annual ECM
pharmacology congress in Copenhagen in
June.
Our scientific achievements include the
publication of accumulated +700 peer
reviewed articles. This underscores our
relentless focus on ECM biomarker research
and reinforces our position as a leader in
this niche field.
In October, our IVD enabled biomarker
CPa9-HNE received a Letter of Support
from the FDA for use in inflammatory bowel
disease studies. CPa9-HNE is part of our
partnership with Roche, which includes two
other biomarkers with letters of support
from the FDA. The letter of support is not only
another landmark achievement, but also
a testament to the clinical relevance and
need of biomarkers based on our propri-
etary ProteinFingerPrint-technology. The
combination of scientific excellence, high
quality biomarkers and regulatory support
is what really sets Nordic Bioscience apart.
In November, the Board of Directors was
strengthened with Håkan Björklund (Chair),
Steffen Kragh (Vice Chair) bringing broad
and relevant international business experi-
ence as well as insight from big pharma and
biotech companies to the board.
Our strong 2024 is a solid foundation for
2025, where we expect to continue to
grow our R&D Services and Clinical Diag-
nostic segment. As more and more of
our contracts have a duration of several
years we have increased visibility of future
revenue from a record-high signed order
book of DKK 682 million. We also expect
increased activity in our Drug Development
activities.
We would like to thank our almost 180
dedicated and highly skilled colleagues
for their contributions to the results and
achievements of 2024, as well as the prom-
ising future of Nordic Bioscience. We are
also grateful for the trust and support of
our partners and clients and look forward
to continuing advancing ECM biomarker
science to drive earlier disease detection,
better patient outcomes and more effective
treatments.
Morten A. Karsdal Thomas Nielsen
CEO CFO
The positive development in
2024 underlines the strength
of our business model
Morten A. Karsdal
CEO
Introduction
Nordic Bioscience Holding A/S Annual Report 2024
6
Financial highlights
Seen over a 5-year period, the development of the Group is described by the following financial
highlights:
Group
2024 2023 2022 2021 2020
TDKK TDKK TDKK TDKK TDKK
Key figures
Profit/loss
Revenue 527,393 190,449 232,622 224,976 237,938
Gross profit 465,561 132,419 179,668 193,103 255,911
Profit/loss of primary operations 197,729 -17,632 27,959 57,068 105,089
Profit/loss of financial income and expenses 12,077 -3,526 -8,335 -5,603 -2,062
Net profit/loss for the year 170,813 12,313 8,655 37,358 79,632
Balance Sheet
Balance sheet total 720,316 288,536 228,699 239,253 288,570
Cash and cash equivalents at end of year 455,420 81,947 60,620 67,009 53,846
Investments in property, plant and equipment 2,599 9,901 4,934 3,962 15,247
Equity 230,949 44,071 61,638 107,173 137,127
Number of employees 176 171 168 151 219
Ratios
Solvency ratio 32% 15% 27% 26% 48%
Gross Margin 88% 70% 77% 86% 108%
Net margin 32% 6% 4% 17% 25%
Return on equity 124% 23% 10% 38% 38%
The financial highlights for 2020 and 2021 have not been restated as a result of the adoption of IFRS.
The revenue for 2022 and 2021 has been restated and consequently all impacted key figures and
ratios for 2022 and 2021 has been restated accordingly.
Financial highlights are defined and calculated in accordance with the current version of
"Recommendations & Ratios" issued by the CFA Society Denmark.
527m
Revenue
DKKm
466m
Gross Profit
DKKm
455m
Cash and cash
equivalents at
end of year
DKKm
20242023202220212020
527
190
233
225
238
20242023202220212020
466
132
180
193
256
20242023202220212020
455
82
61
67
54
Introduction
Nordic Bioscience Holding A/S Annual Report 2024
7
ECM - extracellular matrix - is a complex network of proteins and
carbohydrates outside the cells of our tissue. Up to 75% of tissues
consist of ECM and it plays a crucial role in maintaining tissue
structure, communicating to cells and repairing tissue.
What is ECM?
In healthy organs, ECM undergoes contin-
uous remodelling, where old or damaged
proteins are broken down and replaced by
new proteins with small fragments being
released into the blood.
However, when the body experiences
inflammation, injury or disease, the ECM
remodeling process is disrupted, leading to
changes in the types and amounts of frag-
ments released into the blood. In more than
50 diseases and major chronic conditions,
which together account for 35% of deaths
in the developed world, this remodeling
process is disrupted.
Diseases such as liver or heart fibrosis
cause tissue scarring or remodelling of the
organ structure, resulting in an increase of
formation fragments being released into the
blood. In contrast, inflammatory diseases
such as arthritis and psoriasis cause tissue
breakdown, leading to an increase in degra-
dation fragments. By identifying and quan-
tifying these changes, the fragments can
serve as ECM biomarkers, providing crucial
insights into disease status, risk of progres-
sion, and potential adverse outcomes.
Since ECM fragments can be detected
from a simple blood sample, they play an
increasingly critical role in drug develop-
ment, as they provide real-time data on
disease progression and serve as an alter-
native to invasive biopsies. This has the
potential to enable faster, safer and more
accurate patient selection and treatment
dosing, and improves the measurement
of treatment efficacy. In other words, it
provides crucial information already in
Phase 1b of a clinical trial, which otherwise
would not have been available until Phase II.
Healthy tissueInflammatory
diseases
Fibrotic diseases
Excessive
ECM degradation
Release of
degradation
fragments into
the blood
Excessive
ECM formation
Release of formation
fragments into
the blood
Balanced
turnover
Low release of
fragments
ECM remodelling during disease progression
Our business
Nordic Bioscience Holding A/S Annual Report 2024
9
Our commercial and research expertise within ECM is the foundation for our three business segments.
Based on our scientific knowledge and growing number of biomarkers, it is our vision to...
Driven by science
Clinical
Diagnostics
R&D
Services
Drug
Development
...be the preferred strategic partner to
pharmaceutical and biotechnology
companies to help them develop
the right drug candidates faster
Read more Read more Read more
...ensure the right patients are
treated with the right drug through
diagnostic partnerships
...identify and develop own
drug candidates
Nordic Bioscience Holding A/S Annual Report 2024
10
Our business
Why choose Nordic Bioscience
We offer a broad range of services across the pre-clinical
and clinical development phases that provide our customers
with a number of benefits, including:
• improving drug development through better selection
of patients for inclusion in clinical trials and the ability to
identify treatments with a higher chance of success
• enabling assessment of a drug’s effect on affected tissue
in a shorter timeframe
• comparing efficacies of different treatments and dosing
• gaining insights into the critical path of a disease and the
mechanisms of action of drugs
These valuable insights and findings provide our customers
with a clearer foundation to make faster decisions
regarding trials and direct resources to the right devel-
opment programs. It enables them to design shorter and
smaller clinical trials and thus reduce the cost of clinical trial
processes.
Growing addressable market
According to a recent market analyses by ClearView Health-
care Partners, the total market size of pre-clinical and clinical
R&D services in diseases where it has been established that
ECM plays role and with validated ECM biomarkers available,
is expected to grow from an estimated EUR 1.1 billion in 2024
to approx. EUR 3.7 billion in 2030, corresponding to an annual
average growth of 22%.
The ClearView report further states that the specific current
relevant addressable market for Nordic Bioscience within
clinical trials in established ECM diseases that utilize
biomarker testing, is expected to grow from an estimated
EUR 0.5 billion in 2024 to approx. EUR 2.1 billion in 2030, corre-
sponding to an annual average growth of 29%.
R&D
services
Based on our ECM expertise and
broad portfolio of biomarkers,
we offer pre-clinical and clinical
contract research to more than
100 major pharmaceutical and
biotechnology companies as well
as clinical research organisations
(CRO) around the world.
+29%
addressable market
2024-2030 CAGR
Our business
Nordic Bioscience Holding A/S Annual Report 2024
11
Diseases DiseasesOur biomarkers Our biomarkers
Skin
Lung
Cardio-
vascular
Intestine/
Abdomen
Bone &
Cartilage
Cancer
Liver
Kidney
ARGS
C2M
CRPM
PRO-C2
VICM
C6a6 PRO-C17
C3M
C7M
CPa9-HNE
C3F
C4G
PRO-C3
PRO-C8
PRO-C11
TGFB-LAP
CC16-HNE ELNE
C1M ELP-3
C3M NTX-III|
C6M PRO-C6
C4Ma3
CTX-III
PRO-C3
PRO-C6
C1sig
ETP
PRO-C6
TIM
C4M
C7M
CPa9-HNE
PRO-C6
PRO-C22
LG3 TUM
PRO-C3 uC3M
PRO-C6
Systemic
C3M PRO-C6
C7M PRO-C4
PRO-C3 PRO-C22
Brain
A-SYN-C
TAU-C
R&D Services
The critical
role of ECM
Nordic Bioscience is the only
company specialising in degrada-
tion and formation ECM biomarkers,
offering more than 150 patented
biomarkers for fibrosis, cardiorenal
diseases, immunoscience and
cancer. ECM technology is positioned
for rapid growth and adoption, due
to its potential to assess diesease
progression in relevant disease
areas in ways that molecular and
genetic analysis cannot. With over 50
major diseases linked to ECM struc-
ture changes, drug developers are
increasingly focusing on treatments
that target organs and reverse
ECM-related damage.
Our business
Nordic Bioscience Holding A/S Annual Report 2024
12
State-of-the-art laboratory
Advancing precision
medicine with Nordic
ProteinFingerPrint
Technology
Our state-of-the-art laboratory located at the headquarters in Herlev, Denmark is one
of the reasons why customers choose to work with us. It is the only laboratory in Scandi-
navia accredited by College of America Pathologists (CAP) for biomarker testing.
The laboratory is highly scalable through continued automation and digitalisation which
not only increases the number of tests performed but also increases the precision and
quality of tests compared to manual tests. In 2024, a total of approx. 520,000 tests was
performed in the laboratory, of which around 30% was automated.
A key differentiator for Nordic Bioscience is our proprietary
ProteinFingerPrint Technology’s ability to measure ECM frag-
ments in a clinical setting.
The technology is based on 30 years of research and can
provide vital information about how a disease is progressing
and how the patient is responding to specific treatments as
early as in Phase Ib rather than Phase II studies. This makes the
clinical process much more effective, significantly reducing
time and costs of clinical trials and improving the likelihood of
success. As such, the Nordic ProteinFingerPrint Technology is a
valuable tool for advancing precision medicine.
R&D Services R&D Services
Our business
Nordic Bioscience Holding A/S Annual Report 2024
13
We license specific, validated biomarkers to diagnostic
companies for use in their diagnostic products and plat-
forms. As part of a license agreement, Nordic Bioscience may
receive milestone payments and potential royalties when the
biomarkers are sold to end customers.
The Clinical Diagnostics business has strong synergies
with our R&D Services business. Through the results of
tests performed in R&D Services and in collaboration with
academic research partners, we generate a wide range of
data sets that are used to develop biomarkers.
Nordic Bioscience has more than 30 biomarkers enabled for
in-vitro diagnostics (IVD). In vitro refers to testing of blood or
tissue samples in laboratory test equipment, as opposed to
in vivo testing, which is performed inside a living organism.
Three of our biomarkers are historically been approved by
the FDA and three others have received a so-called Letter of
Support from FDA. The three FDA approved biomarkers are
sold off, while the three with letter of support are our key vali-
dated biomarkers - PRO-C3, PRO-C6 and CPa9-HNE - which
are licensed to global leading diagnostics group Roche.
Currently, only a few IVD validated biomarkers based on
ECM exist on the market, and we expect Roche to be the first
to offer FDA supported ECM biomarkers based on our tech-
nology. The commercial launch of these IVD biomarkers will
improve diagnostic precision and enhance patient care
across multiple diseases, ultimately improving outcomes for
patients worldwide.
In addition to our partnership with Roche, we may enter into
partnerships with other diagnostic companies regarding
other IVD validated biomarkers as well as non-validated
biomarkers.
A growing market
According to a recent ClearView market report, in a broad
market definition, the global market for IVD tests is expected
to reach approx. EUR 112 billion in 2023, driven by an ageing
population and growing number of patients with chronic
diseases.
The directly addressable market for Nordic Bioscience is the
market for immunoassay reagents, the primary segment for
our PRO-C3 and PRO-C6 biomarkers. This market is expected
to grow on average 7% per year from 2024 to 2030 to approx.
EUR 19 billion.
Clinical
Diagnostics
Nordic Bioscience serves the
global clinical diagnostics market
by developing and utilising
ECM biomarkers for diagnostic,
prognostic and monitoring
purposes.
19 EURbn
PRO-C3/PRO-C6 market
in 2030
Our business
Nordic Bioscience Holding A/S Annual Report 2024
14
Clinical Diagnostics
Partnership
with Roche
Our partnership with Roche is centered around our three IVD
enabled biomarkers with letter of support from FDA; PRO-C3,
PRO-C6 and CPa9-HNE. The partnership with Roche is not
limited to these three biomarkers but has the potential to
expand to more biomarkers for diagnostic commercialisa-
tion.
PRO-C3 and PRO-C6 are the most advanced and expected
to be ready for commercialisation within the next couple of
years.
PRO-C3 and PRO-C6 are highly differentiated. By meas-
uring collagen formation, PRO-C3 has the potential to
predict disease progression and outcomes in patients with
liver fibrosis and chronic liver disease, enabling precise
monitoring of treatment response over time. The PRO-C3
biomarker may be a future non-invasive alternative to liver
biopsy. PRO-C6 assesses endotrophin with a potential to
predict outcomes, e.g. risk of cardiovascular events and
mortality, in fibrotic diseases and metabolic diseases.
Significant
future royalties
from Roche's commercialization
of PRO-C3 and PRO-C6
The near-term opportunity for PRO-C3 is for the liver disease
MAFLD, with potential to expand into applications across
cancer, autoimmune diseases and inflammatory bowel
disease. For PRO-C6, the near-term opportunity is for use in
chronic kidney disease (CKD), the chronic lung disease IPF
and heart failure (HFpEF), with potential to expand into cardi-
ovascular diseases, metabolic disorders, severe liver disease
and musculoskeletal disorders.
Including the expanded use in more diseases, PRO-C3 and
PRO-C6, is expected to have a significant future revenue
potential for Roche, of which Nordic Bioscience will receive
royalty payments.
Our business
Nordic Bioscience Holding A/S Annual Report 2024
15
We do the discovery and development in-house until proof
of concept. Our strategy is to find a partner after Phase Ib,
and we do not expect to develop any of our drug candidates
beyond Phase IIb. This approach allows us to take advan-
tage of the fact that our biomarkers can be used to accel-
erate clinical development and increase the likelihood of
successful clinical trials, and benefit from a partner's capa-
bilities in the later stages of development and commercial-
isation. In this way, we retain significant economic upside
while minimising development costs.
Once a compound has been partnered, Nordic Bioscience is
entitled to receive upfront and milestone payments, and if it
reaches commercialization, we may receive royalties based
on sales.
We focus on drug candidates for obesity and metabolic
diseases, which have a significant commercial potential.
Drug
Development
Through our Drug Development
activities, we utilise our deep ECM
knowledge and broad portfolio of
biomarkers to identify and develop
new drug candidates for further
development in partnership with
pharmaceutical companies.
Discovery CommercialisationClinical Development
Milestone payments
Royalty payments
In-house development until
proof-of-concept
Nordic Bioscience
Nordic Bioscience Nordic Bioscience
Clinical development and
commercialisation by partner
Leveraging
biomarkers to
understand MoA,
efficacy and
pharmacodynamics
Initial assessment
of drug safety
and pharma-
cokinetics
Discovery
of new drug
compounds
Large-scale
clinical trials
Approval
and launch
Product sales
Drug
discovery
Phase la PhaseII
FDA
approval
Pre-clinical
reseacch
Phase Ib PhaseIII
Marketing
of drug
Our business
Nordic Bioscience Holding A/S Annual Report 2024
16
KBP-336
KBP-336
Triple Receptor
Agonists
BigH3 / TGF-ß
Combined obesity
and OA Trial
Program / product /indication Partner Pre-clinical Phase I Phase II
Obesity
Osteoarthritis
Other potential indications
e.g. kidney, liver, cognitive dysfunction,
alcohol abuse
Obesity
Tumour fibrosis (PDAC)
Drug Development
A promising pipeline
with significant
commercial potential
We currently have four projects in our drug discovery
pipeline. We have entered partnership with Eli Lilly for the
development of our DACRA compound, including our most
advanced project, KBP-336 developed for obesity with and
without co-morbid osteoarthritis.
The Triple Receptor Agonists and BigH3 projects are still being
developed in-house, and we believe that both molecules
have a commercially attractive proposition.
Our business
Nordic Bioscience Holding A/S Annual Report 2024
17
Drug Development
KBP-336: A promising
breakthrough in obesity treatment
DACRA (dual amylin and calcitonin receptor agonists) is a
combination of two molecules - amalyn and calcitonin –
which together offer a promising solution by addressing
multiple health issues simultaneously, filling critical gaps in
obesity treatment. The amylin receptor helps control food
intake, promote fullness, manage weight, improve glucose
levels after meals and boost energy expenditure. The calci-
tonin receptor aids in controlling fasting glucose, protecting
bones and cartilage, reducing pain and enhances insulin
sensitivity.
KBP-336 is one of the most promising DACRA drug candi-
dates, particularly for effective and sustained weight loss.
In clinical trials, KBP-336 demonstrated significant weight
reduction over three months without plateauing, while also
preserving muscle strength and bone mass - an advantage
over other weight-loss treatments.
Additionally, KBP-336 has shown unique benefits, including
reducing the need for other medications, protecting bones
and joints, and reducing pain for osteoarthritis patients. Early
biomarker data indicates that it may also play a role in the
treatment in chronic conditions such as fatty liver disease
and cardiovascular diseases.
The strong potential of DACRAs led to a strategic partnership
with Eli Lilly in 2017 to develop the compound. By combining
Nordic Bioscience’s specialised ECM biomarker expertise
with Eli Lilly’s global resources, KBP-336 has the potential
to become a groundbreaking therapy, improving weight
management, reducing pain and enhancing patients’
quality of life.
KBP-336 demonstrated
significant weight reduction
over three months, while also
preserving muscle strength and
bone mass - an advantage over
other weight-loss treatments.
Our business
Nordic Bioscience Holding A/S Annual Report 2024
18
Drug Development
Partnership with Eli Lilly
In 2017, we first entered into partnership
with Eli Lilly regarding DACRA. Our partner-
ship was expanded in 2024 to include all
our DACRA compounds for all indications,
meaning that Eli Lilly now has exclusive,
royalty-bearing rights to develop and
commercialise KBP-336 and any new DACRA
compounds worldwide.
Based on clinical results this far and our
view of the competitive market, we believe
that KBP-336 has the potential to be a next
generation weight loss and osteoarthritis
(OA) medication. It has the potential to
provide effective and sustained weight loss
with a lesser need for use of other drugs
while preserving muscle mass, bone mass
and as well as reducing pain for OA patients.
Based on clinical
results this far and our
view of the competitive
market, we believe
KBP-336 has the
potential to be a next
generation weight
loss and osteoarthritis
medication
Under the agreement, Nordic Bioscience
will conduct and fund the Phase II trial of
KBP-336, which was initiated in December
2024. This is a deviation of our overall
drug development strategy of part-
nering projects after after Phase Ib trials.
Exceptionally, we decided to conduct the
KBP-366 Phase II trial ourselves as we
believe that our extensive experience
and insight within OA and obesity is
value-adding to the development.
To date, Nordic Bioscience has received
USD 105 million from Eli Lilly under the
collaboration agreement in aggregate
upfront, research and milestone payments.
We have an unrealized theoretical mile-
stone potential of of more than USD 1,400
105 USDm
aggregate payments
from Eli Lilly
+1,400 USDm
potential milestone payments
from Eli Lilly
million under the agreement assuming that
all milestones are duly and timely achieved.
Huge market potential for KBP-336
KBP-336 is currently being developed in both
obesity and osteoarthritis (OA), two major
disease areas with a huge market poten-
tial. Obesity is a global epidemic, with more
than 50% of world population estimated to
be overweight or obese by 2035, and OA
is a highly prevalent disease and a known
co-morbidity of obesity. Other diseases,
for which Nordic Bioscience have relevant
biomarkers, are also associated with obesity
such as liver diseases, heart failure and
chronic kidney disease.
+ Royalty payments
Significant potential royalty payments
from Eli Lilly
Our business
Nordic Bioscience Holding A/S Annual Report 2024
19
Business Review
Revenue
In 2024, total revenue increased to DKK
527.4 million from DKK 190.5 million in 2023.
The R&D Service and Diagnostics segment
reached a record-high revenue of DKK 303.0
million, up from DKK 190.5 million in 2023,
reflecting increased activity in R&D Services
as a result of new contracts as well as more
late phase tests (Phase II and III) than previ-
ously. Revenue from the Drug Development
segment was DKK 224.0 million, compared
to no revenue in 2023, as a result of a mile-
stone archivement from our collaboration
with Eli Lilly.
We deliver our R&D services in a range from
large scientific research and consultancy
partnerships to fee-for-service sample
analysis. A growing number of contracts
have a duration of several years, which
provides us with increased visibility of future
revenue in the form of a signed orderbook.
In 2024, the signed orderbook increased
by DKK 180 million to record-high DKK 682
million, covering expected revenue in the
coming eight years.
Financial statement
2024 2023
DKK ’000 DKK ’000
Revenue 527,393 190,449
Cost of goods sold -61,034 -57,365
Gross profit 466,359 133,084
Gross margin 88.4% 70.2%
Research & Development -194,938 -107,279
Admin costs -70,013 -41,978
Other operating income 8,438 10,816
EBITDA 209,846 -5,357
EBITDA margin 39.8% -2.8%
Depreciations & amortisation -12,117 -12,275
EBIT 197,729 -17,632
Financial income 16,077 4,458
Financial expenses -4,000 -7,984
Profit before tax 209,806 -21,159
Tax -38,994 33,472
Net profit for the year 170,813 12,313
2024 revenue by segment
DKKm
2024 revenue by geography
DKKm
R&D Services/Diagnostics
Drug Development
Denmark
Rest of Europe
US
Rest of World
347
224
12
135
303
33
Our business
Nordic Bioscience Holding A/S Annual Report 2024
20
Gross profit
Gross profit in 2024 rose to DKK 465.6 million
from DKK 132.4 million in 2023, corresponding
to a gross profit margin of 88,3% compared
to 70.0% in 2023. Gross profit from the R&D
Service and Diagnostics segment was DKK
263.9 million compared to DKK 174.8 million
in 2023, while gross profit for the Drug Devel-
opment segment was DKK 224 million. The
higher gross profit was due to the increased
revenue in both segments. Gross profit in the
two segments are excluding eliminations
and other segments.
R&D, administration costs &
other operating income
Research and development costs were DKK
199.3 million against DKK 111.7 million in 2023,
reflecting increased costs in connection
with a Phase 2 study of our lead candidate
KBP-336. Administrative costs were DKK
77.0 million against DKK 49.2 million in 2023,
primarily due to increased legal, financial
and other external advisors as part of a
strategic review of our future ownership
structure. The increased cost also include
investments in a large international market
report.
EBITDA
EBITDA increased to DKK 209.8 million from
minus DKK 5.4 million in 2023, corresponding
to an EBITDA margin of 39.8% against nega-
tive 2.8% in 2023. The improvement in EBITDA
was driven by the increased revenue. EBITDA
in R&D Service and Diagnostics was DKK
108.0 million, up from DKK 48.7 million in
2023, corresponding to an EBITDA margin of
35,6% against 25.6% in 2023. EBITDA in the
Drug Development segment was DKK 103.8
million, against negative DKK 54.4 million in
2023, corresponding to an EBITDA margin of
46.3% in 2024. EBITDA in the two segments
are excluding eliminations and other
segments.
Net result
Net profit in 2024 increased to DKK 170.8
million, up from DKK 12.3 million in 2023.
Cash flow
Cash flow from operations increased to
DKK 379.9 million, up from DKK 76.5 million in
2023, resulting in a cash position end of 2024
at DKK 455.4 million.
Balance sheet
Total non-current assets on 31 December
2024 were DKK 147.0 million against DKK
128.8 million at the end of 2023. Total current
assets were DKK 573.3 million against DKK
159.8 million in 2023, reflecting an increase in
the year-end cash position.
Total equity on 31 December 2024 was DKK
230.9 million against DKK 44.1 million at the
end of 2023. Total current liabilities were
DKK 448.7 million against DKK 198.3 million
in 2023, of which contract work in progress
accounted for DKK 329.0 million.
Uncertainty relating to recognition
and measurement
There has been no uncertainty regarding
recognition and measurement in the Annual
Report.
Unusual events
The financial position at 31 December 2024
of the Group and the results of the activities
and cash flows of the Group for the financial
year for 2024 have not been affected by any
unusual events.
Outlook for 2024 expressed in
the Annual Report for 2023
The profit/loss for the year was in line with
the outlook expressed in the Annual Report
for 2023.
Outlook for 2025
In the R&D Service and Diagnostics segment,
we expect a moderate increase in 2025-
revenue compared to 2024, driven by increased
activities. For 2025 we expect slightly improved
operating margins compared to 2024.
In the Drug Development segment, we
also expect increased activity, but we do
not expect milestone payments from the
collaboration agreement with Eli Lilly in 2025.
2024 EBITDA by segment
DKKm
R&D Services/Diagnostics
Drug Development
103.8 108.0
Our business
Nordic Bioscience Holding A/S Annual Report 2024
21
Nordic Bioscience is committed to
exercising good corporate governance
and strives to comply with good
governance principles and guidelines.
Governance
We have a two-tier governance structure
consisting of the Board of Directors and the
Executive Management. The two bodies
are separate and have no overlapping
members.
Risk management is an essential and
natural part of the realization of the compa-
ny’s objectives and strategy. Risk manage-
ment is therefore seen as an integrated
part of the daily activities and execution
of the strategy, and the company continu-
ously develops risk management policies to
manage and mitigate risks associated with
the business and operations.
The Board of Directors consist of five
members and has appointed a Chairperson
and a Vice Chairperson. 3 of the members
are regarded as independent. The Board
of Directors represents broad international
business experience and competencies
considered to be relevant for Nordic Biosci-
ence.
The Board of Directors normally meet quar-
terly and holds extraordinary meetings
when required.
The Board of Directors have set up an
Audit Committee. The purpose of the
Audit Committee includes monitoring the
financial reporting process, the compa-
ny’s internal control and risk management
systems and the cooperation with the inde-
pendent auditors.
The Board of Directors have also set up a
Remuneration and Nomination Committee.
The purpose of the Remuneration and
Nomination Committee includes reviewing
and updating the company’s remuneration
policy, preparation of remuneration report
and ensuring that appropriate plans and
processes are in place for nomination of
candidates to the Board of Directors, the
Executive Management and the board
committees.
Ownership
Nordic Bioscience is owned by Roma-
rine ApS, partly controlled by founder
Claus Christiansen, with around 74.0%
of the share capital, KKR Precision
Aggregator L.P. with around 10.2%
of the share capital, and Nordic Life
Science Consulting ApS, controlled
by CEO Morten Karsdal and CFO
Thomas Nielsen, with around 9.5% of
the share capital. Other shareholders,
consisting of two board members
and employees, together hold the
remaining part of the share capital.
Corporate Governance
Nordic Bioscience Holding A/S Annual Report 2024
23
Executive Management
Morten Asser Karsdal
CEO
Danish, born 1973
With Nordic Bioscience since 2001,
CEO since 2010
Previous positions: Chair ProScion
ApS, board member NBCD A/S,
Clinical-Microbiomics A/S, board
member Vivoryon Therapeutics
N.V.
Education: MSc in Cell and Molec-
ular Biology from the Technical
University of Denmark as well as a
PhD in Bone and Cartilage Phar-
macology from the University of
Southern Denmark
Thomas Nielsen
CFO
Danish, born 1974
Joined Nordic Bioscience in 2007
as CFO
Other positions: Chair DESCOM
A/S, Chair Alma Mademarked A/S,
board member Electa P/S, Director
of Romarine ApS, Miramare ApS.
Previous positions: Board member
RISMA Systems A/S, Sanos A/S,
NBCD A/S, board member Den
Danske Forskningsfond.
Education: Graduate Diploma in
Business Administration, Financial
and Management Accounting
and a MSc in Accounting, Audit
and Business Management from
Copenhagen Business School.
Morten A. Karsdal
CEO
Thomas Nielsen
CFO
Corporate Governance
Nordic Bioscience Holding A/S Annual Report 2024
24
Håkan Björklund
Chair
Chair Remuneration
and Nomination Committee
Swedish, born 1956
Joined the Board November
2024
Other positions: Chair
Intervacc, Bohus, Tellacq.
Board member Bonesupport,
advisor to Rothschild Private
Equity
Previous experience: CEO
Nycomed. Board member
Alere, Coloplast, Lundbeck,
Biovitrum
Steffen Kragh
Vice Chair
Chair Audit Committee,
member Remuneration and
Nomination Committee
Danish, born 1964
Joined the Board November
2024
Other positions: CEO Egmont,
Chair Lundbeckfonden. Vice
Chair Tryg
Previous experience: Chair
Nykredit
Claus Henrik Christiansen
Board Member
Member Remuneration and
Nomination Committee
Danish, born 1942
Joined the Board November
2008 (Chair 2008 to 2022)
Other positions: Chair
Den Danske Forsknings-
fond, Romarine ApS. Board
member RISMA Systems A/S
and Spora ApS.
Previous experience:
Founder of Nordic Bioscience
Kugan Sathiyanandarajah
Board Member
Member Audit
Committee
British, born 1986
Joined the Board March 2021
Other positions: Board
member of Argenta,
Nordic Biosciences, Dawn
Bio pharma, Biosynth Carbo-
synth, Alliance Pharma,
Clinisupplies, Gamma
Biosciences and Replay.
Previous experience:
Goldman Sachs
Henrik Bernt Sanders
Board Member
Member Audit
Committee
Danish, born 1965
Joined the Board March 2011
Other Positions: H.H. Ejendomsinvest ApS, Anders Nielsen &
Co A/S, Elmelund Holding ApS, Henrik Steenbjerge Holding
A/S, Advokatanpartsselskabet Mazanti-Andersen, Mazan-
ti-Andersen Advokatpartnerselskab, True Content Entertain-
ment ApS, Malerfirmaet Hoverby A/S, J.P. Hoverby A/S, H.H.
Holding ApS, Ihm A/S, Den Danske Forskningsfond, A/S A. P.
Botved, Gobsmack Productions A/S, Romarine ApS, Hilde-
brandt Hammer Hotels ApS, Almindelig Reklamebureau A/S,
Hasbo Drilling & Water Engineering A/S, Alma Mad ApS
Previous experience: Investigate North ApS, Sanos Group A/S
Board of Directors
Corporate Governance
Nordic Bioscience Holding A/S Annual Report 2024
25
Corporate Governance
At Nordic Bioscience, we believe that
sustainable and responsible business
practices benefit both our company
and the health of the communities of
which we are part. Our efforts aim to
ensure that we operate in alignment
with our values, meet our commitment
to all our stakeholders, and contribute
to the long-term success of the broader
biopharmaceutical, pharmaceutical,
and consumer health industries.
We recognize that our impact extends
beyond our laboratories to global health
and scientific progress, and we focus our
efforts on three key areas most relevant to
our business - our impact on people, the
environment and our communities.
Advancing efficient, sustainable,
patient-centred medical solutions
We are dedicated to improving the life of
patients and supporting precision medicine
by developing novel biomarkers based on
our proprietary biomarker technology and
clinical research expertise.
This not only enables faster drug develop-
ment but also improves disease outcomes
for patients by has the potential to predict
treatment response. This helps speed up
the drug development process, improves
treatment outcomes, optimizes health-
care through better-targeted therapies,
enhances patient care, and minimizes
excess production, thereby contributing to
more efficient, sustainable, and patient-
centred medical advancements.
We provide the highest quality services
for successful preclinical and clinical drug
development. Our CAP-accredited and
ISO-certified laboratories meet the highest
industry standards under Good Clinical
Laboratory Practice (GCLP) and comply with
FDA 21 CFR Part 11 regulations.
We strive to conduct all our business in a
sustainable way that cares for and preserves
the environment, and we continuously work to
improve procedures to reduce CO
2
emissions
and enforce proper waste management.
ESG
Nordic Bioscience Holding A/S Annual Report 2024
27
Business ethics based on solid values
Nordic Bioscience believes that strong
business ethics come from solid company
values and strict adherence to laws and
regulations. We aim to be seen as a respon-
sible business with high ethical standards.
We follow all domestic and international
laws, including those against corruption
and money laundering, along with related
standards and codes.
We regularly review our ethical guidelines in
our company values, internal procedures,
and vendor contracts to ensure they align
with international standards. Our proactive
approach to ethics helps us build trans-
parent relationships with our business part-
ners and stakeholders.
Ensuring optimal animal welfare
We are committed to ensuring optimal
animal welfare, with all studies conducted in
accordance with the Danish Animal Exper-
imentation Act. Our research follows Direc-
tive 2010/63/EU on the protection of animals
used for scientific purposes and internation-
ally accepted principles for the care and use
of research animals.
Our facilities and staff provide professional
handling and close monitoring of all research
animals, applying the 3R principles –
Replacement, Reduction and Refinement –
in all animal studies.
Committed to upholding human rights
We are committed to respecting human
rights and labor rights, and we strive to
advance these principles for our employees
in our operations as well as for our business
partners and contractors. We have imple-
mented health and safety procedures to
ensure the well-being of our employees and
to provide a healthy and inclusive work-
place.
All employees of Nordic Bioscience have
the fundamental right to a healthy and
safe working environment, and we strive to
enhance the safety of our employees to the
greatest extent possible. We believe that
supporting our employees’ physical health
and mental well-being is pivotal for them to
perform and thrive, both professionally and
personally.
Our workplace culture
Our workplace culture is built on scien-
tific excellence, growth, and innovation,
supported by a team that is collaborative,
proactive, and dedicated to sustainable
medical research practices. We work effi-
ciently and with integrity to make a mean-
ingful impact, adhering to the highest
research standards, with around 700
peer-reviewed publications.
Nordic Bioscience believes that diverse
perspectives and ways of working create
the best possible decisions and results
required to fulfill our mission. We value a
diverse and inclusive organization as a
driver of creativity, new ideas, and better
decision-making.
We support individuals of all backgrounds,
regardless of age, gender, nationality, reli-
gion, or ability, and actively work to advance
representation and diversity at all levels to
ensure an inclusive and dynamic workplace.
We have proper procedures implemented
within our HR processes to ensure that our
recruitment processes are not affected by
the applicants’ race, social origin, ethnicity,
religion, etc., which is continuously reviewed
and adapted, as necessary, to neutralize
any potential biases and to promote diver-
sity and inclusion.
Diversity
%
Female
Male
29% 71%
ESG
Nordic Bioscience Holding A/S Annual Report 2024
28
Contents the Consolidated
financial statements
Income statement 31
Comprehensive income statement 31
Balance sheet 32
Statement of changes in equity 33
Cash flow statement 34
Note 1 Summary of material accounting policies 35
Note 2 Significant estimates, judgements and errors 43
Note 3 Segment reporting 45
Note 4 Revenue from contracts with customers 47
Note 5 Breakdown of expenses by nature 49
Note 6 Staff costs 49
Note 7 Financial income and expenses 54
Note 8 Income tax expense 54
Note 9 Deferred tax 55
Note 10 Intangible assets 56
Note 11 Property, plant and equipment 58
Note 12 Leases 59
Note 13 Inventories 59
Note 14 Financial assets and financial liabilities 60
Note 15 Financial risk management 60
Note 16 Cash flow specifications 63
Note 17 Share capital 64
Note 18 Earnings per share 64
Note 19 Capital management 66
Note 20 Contingent liabilities, commitments and contingencies 66
Note 21 Related party transactions 67
Note 22 Fee to auditors appointed at the general meeting 68
Note 23 Interests in other entities 68
Note 24 Subsequent events 68
Note 25 First time adoption of IFRS 69
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
30
Income statement
for the year ended 31 December 2024
Note 2024 2023
TDKK TDKK
Revenue 4 527,393 190,449
Production expenses 5 -61,832 -58,030
Gross profit 465,561 132,419
Research and development costs 5 -199,319 -111,709
Administrative costs 5 -76,951 -49,159
Other operating income 8,438 10,816
Operating profit (loss) before financial income and expenses 197,729 -17,632
Other financial income 7 16,077 4,458
Other financial expenses 7 -4,000 -7,984
Profit (loss) before tax 209,806 -21,159
Tax on profit/loss for the year 8 -38,993 33,472
Net profit for the year 170,813 12,313
Net profit for the period is attributable to:
Owners of Nordic Bioscience Holding A/S 170,813 12,313
Minority interests - -
Earnings per share for profit attributable to the orninary equity
holders of the company:
Basic earnings per share 18 0.161 0.012
Diluted earnings per share 18 0.159 0.012
Comprehensive income
for the year ended 31 December 2024
Note 2024 2023
TDKK TDKK
Profit for the year 170,813 12,313
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations -42 4,293
Other adjustments - -
Income tax relating to these items - -
Other comprehensive income for the period, net of tax -42 4,293
Total comprehensive income for the period 170,770 16,607
Total comprehensive income for the period is attributable to:
Owners of Nordic Bioscience Holding A/S 170,770 16,607
Minority interests - -
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
31
Balance sheet
as at 31 December 2024
Assets
Note 2024 2023
1 of Jan.
2023
TDKK TDKK
Non-current assets
Intangible assets 10 4,057 7,973 8,419
Land and buildings 11 64,286 65,637 66,928
Other fixtures and fittings, tools and equipment 11, 12 10,865 13,176 9,165
Deferred tax asset 9 67,776 42,000 -
Total non-current assets 146,984 128,786 84,512
Current assets
Inventories 13 19,944 23,613 27,405
Trade receivables 14 82,912 21,236 38,368
Contract work in progress 4 13,436 11,298 1,089
Other receivables 14 1,620 17,413 9,931
Prepayments - 1,383 3,256
Receivables from other related parties 21 - 2,859 3,078
Cash and cash equivalents 455,420 81,947 60,619
Total current assets 573,332 159,750 143,747
Total assets 720,316 288,536 228,259
Liabilities and equity
Note 2024 2023
1 of Jan.
2023
TDKK TDKK
Equity
Share capital 17 10,616 10,616 10,616
Reserve for translation of foreign operations 3,752 3,794 -499
Retained earnings 216,581 29,659 52,314
Capital and reserves attributable
to owners of Nordic Bioscience Holding A/S 230,949 44,070 62,431
Total equity 230,949 44,070 61,638
Liabilities
Non-current liabilities
Mortgage debt 14 37,041 39,796 42,166
Lease Liabilities 12 2,398 3,069 -
Deferred tax 9 1,207 3,259 2,949
Total non-current liabilities 40,647 46,124 45,115
Current liabilities
Mortgage debt 14 2,806 2,823 3,260
Lease Liabilities 12 671 512 -
Contract work in progress 4 329,000 163,453 74,963
Prepayments 8,509 3,248 5,792
Trade payables 14 37,483 15,256 29,234
Current tax liabilities 65,629 7,550 3,129
Other payables 4,622 5,499 5,128
Total current liabilities 448,721 198,341 121,506
Total liabilities 489,367 244,465 166,621
Total liabilities and equity 720,316 288,536 228,259
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
32
Statement of changes in equity
for the year ended 31 December 2024
Group
Share
capital
Reserve for
translation
of foreign
operations
Retained
earnings
Total
equity
TDKK TDKK TDKK TDKK
As at 1 January 2024 10,616 3,794 29,659 44,071
Profit for the period - 170,813 170,813
Other comprehensive income - -42 - -42
Total comprehensive income - -42 170,813 170,770
Transactions with owners in their capacity as owners
Share-based payments - - 16,108 16,108
As at 31 December 2024 10,616 3,752 216,581 230,949
As at 1 January 2023 10,616 -499 52,314 62,431
Correction prior years -794 -794
Corrected equity at 1 January 2023 10,616 -499 51,520 61,637
Profit for the period 12,313 12,313
Other comprehensive income - 4,293 - 4,293
Total comprehensive income - 4,293 12,313 16,607
Transactions with owners in their capacity as owners
Acquisition of of treasury shares - -1,206 -1,206
Ordinary Dividend paid - - -40,000 -40,000
Share-based payments - - 7,032 7,032
As at 31 December 2023 10,616 3,794 29,659 44,070
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
33
Cash flow statement
for the year ended 31 December 2024
Note 2024 2023
TDKK TDKK
Cash flows from operating activities
Net profit (loss) for the year 170,813 12,313
Adjustment for non-cash items 16 55,142 -10,639
Changes in net working capital 16 155,980 77,476
Financial income received 10,661 4,458
Financial expenses paid -4,000 -3,958
Income taxes paid -8,740 -3,129
Net cash inflow (outflow) from operating activities 379,855 76,521
Cash flows from investing activities
Acquisitions of property, plant and equipment -2,599 -6,576
Acquisitions of intangible assets -1,263 -3,982
Net cash inflow (outflow) from investing activities -3,862 -10,559
Note 2024 2023
TDKK TDKK
Cash flows from financing activities
Dividends paid - -40,000
Acquisition of treasure shares - -1,206
Installment on leases 16 -512 -409
Mortgage debt raised/paid 16 -2,772 -2,805
Net cash inflow (outflow) from financing activities -3,285 -44,420
Net increase (decrease) in cash and cash equivalents 372,709 21,542
Cash and cash equivalents at the beginning of the financial
year 81,947 60,620
Effects of exchange rate changes on cash and cash
equivalents 764 -215
Cash and cash equivalents at end of year 455,420 81,947
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
34
Notes to the consolidated financial statements
The consolidated financial statements of Nordic Bioscience Holding A/S and its subsidiaries ('the
group') for the financial year 1 January to December 31 2024 were authorised for issue in accord-
ance with a resolution of the board of directors on 4 March 2025.
This note provides a list of the material accounting policies adopted in the preparation of these
consolidated financial statements. These policies have been consistently applied to all the years
presented, unless otherwise stated. The consolidated financial statements are for the group
consisting of Nordic Bioscience Holding A/S and its subsidiaries.
Basis of preparation
The consolidated financial statements of the group have been prepared in accordance with Inter-
national Financial Accounting Standards (IFRS) as adopted by the EU as well as additional the Danish
disclosure requirements applying to entities of reporting class C for medium-sized enterprises.
The consolidated financial statements have been prepared on a historical cost basis.
The consolidated financial statements are presented in DKK and all values are rounded to the
nearest thousand, except when otherwise indicated.
First-time adoption of IFRS
These consolidated financial statements are the first consolidated financial statements that is
presented in accordance with IFRS. For periods up to and including the year ended 31 December
2022, the group prepared its consolidated financial statements in accordance with the Danish
Financial Statements Act.
The comparative figures for 2023 in the income statement and the balance sheet items as at 31
December 2023 and 1 January 2023 were restated in accordance with IFRS. The accounting policies
applied are based on the standards and interpretations effective for the year ended 31 December
2024. No standards or interpretations which are not yet effective have been adopted.
Refer to note 25 for information on how the group adopted IFRS.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations
have been published that are not mandatory for 31 December 2024 reporting periods and have
not been early adopted by the group. These standards, amendments or interpretations are not
expected to have a material impact on the group in the current or future reporting periods and on
foreseeable future transactions.
Principles of consolidation
Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity where
the group is exposed to, or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power to direct the activities of the group. Subsid-
iaries are fully consolidated from the date on which control is transferred to the group. They are
deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group.
Inter-company transactions, balances and unrealised gains on transactions between group
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies adopted by the group.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using
the currency of the primary economic environment in which the entity operates (‘the functional
currency’). The consolidated financial statements are presented in Danish Kroner (DKK).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement
1. Summary of material accounting policies
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
35
Notes to the consolidated financial statements
of such transactions, and from the translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates, are generally recognised in profit or loss.
On consolidation, exchange differences arising from the translation of any net investment in foreign
entities are recognised in other comprehensive income. When a foreign operation is sold the asso-
ciated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Income statement
Revenue
The group is in the business of preclinical and clinical drug development and is specialized in
precision medicine using unique biomarker technologies.
Revenue is recognised when customers obtain control of promised goods or services, at an
amount that reflects the consideration that the entity expects to receive in exchange for those
goods or services. Unless otherwise stated below the significant payment terms are generally that
revenue is paid upfront.
For the purpose of recognising revenue, the group distinguishes between its typical customer contracts
consisting of 1. R&D Services, 2. Clinical diagnostics, and 3. Drug development. 1. and 2. comprising
the segment R&D services and Diagnostics and 3 comprising the segment Drug Development.
R&D Services
R&D services consist of both R&D collaborations and sample measurements agreements.
In R&D collaborations, the group is collaborating with the customers in research projects, which
aim to provide services to the customer to facilitate drug discovery and data analysis across both
pre-clinical and clinical phases.
The contracts contain various work packages (e.g. translation research and sample measure-
ment, rodent assay development, and ex vivo and in vitro validation), each comprising a separate
performance obligation.
The transaction price includes a single fixed non-refundable upfront fee plus any milestone
payments to the extent that it is highly probable that a significant reversal in the amount of cumu-
lative revenue recognized will not occur when the uncertainty associated with the specific mile-
stone payment is subsequently resolved.
Management has assessed that the price stated in the contract for each work package is equal
to the stand-alone selling price of each work package. The milestone payments are allocated to
each work package to which the milestone relates.
Revenue is recognized over time as the group’s performance does not create an asset with an
alternative use to the group, and the group has an enforceable right to payment for performance
completed to date.
In sample-measurement agreements, the group provides various services with respect to clin-
ical trials including quality control, data management and analysis, and measurement of clinical
samples. Specifically, this includes the provision of various biomarkers, a statistical package,
bioanalytical reports and project management.
Although the customers may be able to benefit from the various deliverables on their own, the
contracts comprise a single performance obligation (i.e., a sample measurement project) as the
nature of the promise is to deliver a combined output to which the promised deliverables are inputs.
The group provides a significant service of integrating the deliverables into a bundle and the
nature of the promise (from the customer’s perspective) is to receive the final results of the
sample-measurement. It is not to receive each deliverable on a stand-alone basis.
The transaction price is fixed and does not include any forms of variable consideration.
Revenue is recognized based on samples measured to date relative to the total samples to be
measured (output), which is the method that most faithfully depicts the group's performance in
transferring control of the performance obligation. This is because the group’s effort in measuring
samples is the main value of the project.
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
36
Notes to the consolidated financial statements
Revenue related to all performance obligations is recognized over time as the customer receives
and consumes the benefits as the group performs, by reference to the method that most faith-
fully depicts the group's performance in transferring control of the performance obligation. This is
either by reference to the number of data points transferred relative to the number of data points
expected to be transferred (output) or by reference to labour hours spent compared to the total
estimate of hours to be spent to complete the work (input).
Clinical diagnostics
In Clinical diagnostics the group receives royalties and milestones for partnerships where diag-
nostic companies receive access to the group’s proprietary biomarkers.
Revenue related to the license agreements is recognized as the group receive a right to the
payments. Milestones is recognized at a point in time upon the triggering event of such milestone.
Revenue related royalties are recognized the period of the royalty is calculated.
Drug development
For the purpose of providing an understanding of the activities in the drug development revenue
category, the group has identified one major contract that is representative for the material
accounting policies related to revenue recognition in the category:
Eli Lilly and Company collaboration and license agreement
In July 2024, the group entered into a collaboration and license agreement with Eli Lilly and
Company (Lilly) to further develop one or more DACRA compounds and if successfully developed
for Lilly to commercialize the compounds.
At contract inception, the group granted Lilly an exclusive license to the compounds.
Under the agreement the group has received a non-refundable upfront payment of USD 50 million.
The agreement also provides the potential for regulatory milestone payments, commercial mile-
stone payments, and royalty payments related to the compounds’ regulatory approval, commer-
cialization and subsequent product sales.
Both the exclusive license and development services are assessed to comprise separate perfor-
mance obligations because both are capable of being distinct and distinct within the context of
the contract.
At contract inception the transaction price consists solely of the non-refundable upfront payment due
to the significant uncertainty associated with the future events that would trigger milestone payments
(i.e. milestone payments are fully constrained at contract inception). Royalty payments are only
recognised when the subsequent sale occurs and the group is entitled to receive royalty payments.
The non-refundable upfront payment is thus allocated based on the relative stand-alone selling
prices of the license and development services, respectively. To estimate the stand-alone selling
prices the residual approach has been applied since no established price for the license is present
(refer to note 2). Variable consideration (e.g. when a milestone payment is triggered) is allocated
to the license and development services based on their relative stand-alone selling prices (refer to
note 2).
Revenue related to the license is recognised at a point in time. Revenue related to development
services are recognised over the service period by reference to the hours spent compared to the
total estimate of hours to be spent to complete the work.
General policy considerations
For contracts comprising a license to the group's intellectual property, as well as research and
development services, the group considers whether there are multiple performance obligations to
which a portion of the transaction price needs to be allocated.
In determining whether the license is a separate performance obligation, the group considers
whether the license is both capable of being distinct and distinct within the context of the contract.
The group considers this determination a significant judgment (refer to note 2).
Where the contracts include multiple performance obligations, the transaction price will be allo-
cated to each performance obligation based on the stand-alone selling prices. Where these are
not directly observable, they are estimated based on a residual value approach.
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
37
Notes to the consolidated financial statements
The contracts may comprise both fixed and variable consideration. The fixed consideration usually
consists of a non-refundable upfront fee. For the variable consideration, the group estimates the
amount of consideration to which it will be entitled in exchange for transferring the goods to the
customer. The variable consideration is estimated at contract inception and constrained until it is
highly probable that a significant revenue reversal in the amount of cumulative revenue recog-
nised will not occur when the associated uncertainty with the variable consideration is subse-
quently resolved.
If the license is determined to comprise a seperate performance obligation, the portion of the
transaction price allocated to the license is recognized at a point in time. This is usually at contract
inception.
Revenue from providing services is recognized over time as the services are rendered, measuring
progress on the basis of costs.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assur-
ance that the grant will be received and the group will comply with all attached conditions.
Government grants relates to EU-projects.
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. It is recognised as
other operating income.
Upfront payment of grants are included in the "prepayments" line items as deferred income and
they are recognised when the costs related to the EU projects are recognised.
Production costs
Production costs comprise expenses incurred to earn revenue for the financial year. Production
costs comprise direct and indirect costs for wages and salaries, rent and lease, and amortisation,
depreciation and impairment losses relating to intangible assets and property, plant and equip-
ment included in the production process.
Research and development costs
Research and development costs comprise research costs, costs of development projects not
qualifying for recognition in the balance sheet such as staff costs and amortisation and impair-
ment losses relating to development projects.
Administrative costs
Administrative expenses comprise expenses incurred for the group’s administrative functions,
including wages and salaries for administrative staff and Management, rent, stationary and office
supplies, and amortisation, depreciation and impairment losses relating to intangible assets and
property, plant and equipment used for administration of the group.
Other operating income
Other operating income comprises income of a secondary nature as viewed in relation to the
group's primary activities.
Share-based payments
Share-based compensation benefits are provided to employees of Nordic Bioscience and inlcude
a warrants-program and restricted stock units program (RSUs).
The fair value of the warrants and RSUs granted under equity settled programs are recognised as
an expense with a corresponding increase in equity.
The total amount to be expensed is determined by reference to the grant date fair value of the
warrants and RSUs respectively.
Since there is no exercise prise for the RSU's, the value if eacg RSU equals the share on the date
employees are granted with the RSU's. The share price used for the grant of the RSU's is estimated
at the amount that reflects the latest aquistion price between in dependant shareholders.
At grant date, the value of the warrants have been valued using the Black-Scholes option pricing
model, which is a commonly used model for warrant pricing. The assumptions applied in the
Black-Scholes valuation of the warrants are summarised in note 6.
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
38
Notes to the consolidated financial statements
The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the end of each period, the Company revises its
estimates of the number of warrants and RSU’s that are expected to vest based on the non-market
vesting and service conditions. It recognises the impact of the revision to original estimates, if any,
in profit or loss, with a corresponding adjustment to equity.
Warrants subject to accelerated vesting clauses are reassessed at the reporting date to deter-
mine the length of the service period. Any change in the service period is accounted for as a
change in estimate and any catch-up effect is expensed. The cost allocated to the remaining
service period are expensed immediately for cancelled warrants.
Financial income and expenses
Financial income and expenses comprise interest income and expenses on financial assets and
liabilities at amortised cost calculated using the effective interest method and exchange rate
adjustments.
Tax on profit/loss for the year
Tax for the year, which consists of current tax for the year and changes in deferred tax, is recog-
nised in the income statement by the portion attributable to the profit for the year and recognised
directly in equity by the portion attributable to entries directly in equity.
Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The Group's chief operating decision maker (CODM), consisting
of the chief executive officer and chief financial officer, examines the Group's performance both
from a product and geographic perspective.
Measurement of earnings per segment
The Group's chief operating decision maker (CODM) uses EBIT to assess the performance of the
operating segments. It excludes the effects of significant items of income and expenditure which
may have an impact on the quality of earnings such as restructuring costs, legal expenses and
impairments where the impairment is the result of an isolated, non-recurring event.
Financial income and financial expenses are not allocated to segments, as this type of activity is
driven by the central treasury function, which manages the cash position of the group.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the company, excluding any costs of servicing equity other
than ordinary shares
- by the weighted average number of ordinary shares outstanding during the financial year, adjusted
for bonus elements in ordinary shares issued during the year and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account:
- the after-income tax effect of interest and other financing costs associated with dilutive poten-
tial ordinary shares, and
- the weighted average number of additional ordinary shares that would have been outstanding
assuming the conversion of all dilutive potential ordinary shares.
Balance sheet
Intangible assets
Intangible assets comprise comprise completed development projects and development projects
in progress.
All intangible assets except for development projects in progress are measured at cost less accu-
mulated amortisation.
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
39
Notes to the consolidated financial statements
Development projects in progress are not amortized until the asset is ready for use. Instead they
are tested annually for impairment.
Intangible assets are written down to the lower of recoverable amount and carrying amount.
Land and buildings, other fixtures and fittings, tools and equipment
Land and buildings and other fixtures and fittings, are measured at cost less accumulated depre-
ciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation
costs of the asset until the time when it is ready to be put into operation.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-
line depreciation is made on the basis of the following estimated useful lives of the assets:
Buildings 50 years
Other fixtures and fittings, tools and equipment 3-7 years
Estimated useful lives and residual values are reassessed annually and property plant & equip-
ment is tested for impairment if indication are present.
Items of property, plant and equipment are written down to the lower of recoverable amount and
carrying amount.
Leases
The Group assesses at contract inception whether a contract is, or contain, a lease. This is, if
the contract conveys the right to control the use of an identified assets for a period of time in
exchange for consideration.
The Group recognises lease liabilities to make lease payments and right-of-use assets repre-
senting the right to use the underlying asset.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date for the leases. Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the commencement date less lease incen-
tives received. Right-of-use assets are depreciated over the shorter of the asset's useful life and
lease term on a straight-line basis.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the
present value for lease payments to be made over the lease term. The lease payments include
fixed payments less any lease incentives receivable, variable lease payments that depend on
a index or a rate, and amounts expected to be paid under residual value guarantiees. The lease
payment also include the exercise price of a purchase option reasonably certain to be exercised
by the Group and payments of penalties for terminating the lease, if the lease term reflects the
Group exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognised as expenses in the period in which the event or condition that triggers the
payment occurs. Non-lease components are not included in the calculation of lease liabilities.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate
at the lease commencement date because the implied interest of the lease is not readily deter-
minable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made. Additionally, the carrying amount
of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in
the lease payments, or a change in the assessment of an option to purchase the underlying asset.
Short term leases and leases of low-value assets
The Group applies the short-term recognition exemption to its short-term leases insofar the
leases have a lease term of 12 months or less from the commencement date and do not contain a
purchase option. Furthermore, the Group applies the lease of low-value assets recognition exemp-
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
40
Notes to the consolidated financial statements
tion to leases that are considered to be of low value. Lease payments on short-term and low value
assets are recognised as expenses on a straight-line basis over the lease term.
Inventories
Inventories are measured at the lower of cost using the FIFO method and net realisable value.
The cost comprises direct materials, being typical lab tools and equipment used in the ordinary
operations. Costs of purchased inventory are determined after deducting rebates and discounts.
The net realisable value of inventories is calculated as the estimated selling price less completion
costs and costs incurred to execute sale.
Receivables
Trade receivables are initially measured at fair value and subsequently measured at amortised
cost. Trade receivables are written down for expected credit losses. The group applies the simpli-
fied approach under IFRS 9 to measure expected credit losses which uses a lifetime expected loss
allowance for receivables and contract assets.
Other receivables are initally measured at fair value and subsequently at amortised cost.
Receivables from related parties
Receivables from related parties are initially measured at fair value and subsequently measured
at amortised cost. Receivables from related parties are written down for expected credit losses.
The group applies an expected credit loss model to evaluate the expected loss allowance for
receivables from related parties.
Input til note: The receivable balance does not accrue any interest. Loans granted to related
parties are unsecured and repayable upon offset of joint taxation contributions.
Contract work in progress (contract asset and liabilities)
Contract work in progress is measured at the selling price of the work carried out at the balance
sheet date. Contract assets are written down for expected credit losses with the simplified approach.
The selling price is measured based on the stage of completion and the total estimated income
from the individual contracts in progress. Usually, the stage of completion is determined as the
ratio of actual to total budgeted consumption of resources.
If the selling price of a contract in progress cannot be made up reliably, it is measured at the lower
of costs incurred and net realisable value.
Each contract in progress is recognised in the balance sheet in receivables or liabilities other than
provisions, depending on whether the net value, calculated as the selling price less prepayments
received, is positive or negative.
Costs of sales work and of securing contracts, and finance costs are recognised in the income
statement as incurred.
Tax payable or receivable
Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on
this year's taxable income, adjusted for prepaid tax.
Joint taxation contributions payable or receivable
Current joint taxation (with companies outside the group) contributions payable or receivable are
recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted
for prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such
losses are expected to be used under the joint taxation arrangement.
Prepayments (assets)
Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are
measured at cost.
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and bank deposits.
1. Summary of material accounting policies (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
41
Notes to the consolidated financial statements
Treasury shares
Acquisition and selling prices and dividends of treasury shares are classified directly as equity
under retained earnings. Gains and losses from sale are not recognised in the income state-
ment. Capital reduction by cancellation of treasury shares reduces the contributed capital by an
amount corresponding to their nominal value.
Deferred tax
Deferred tax is recognised on all temporary differences between the carrying amount and the
tax-based value of assets and liabilities, for which the tax-based value is calculated based on the
planned use of each asset.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be avail-
able to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset
current tax assets and liabilities and where the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforce-
able right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance
sheet to the extent that it is probable that taxable profit will be avilable against which loses can be
utilised.
The group accepts government sponsored tax credits and incentives with strict adherence to the
rules and in line with the economic substance of the group’s business activities. Under Danish tax,
the group is eligible to receive cash refunds on qualifying research and development costs. As
such, tax deductions related to qualifying research and development costs have been recognised
for all periods presented.
Mortgage debt
At the time of borrowing, mortgage debt to mortgage credit institutions is measured at fair value
less less transaction costs. Mortgage debt is subsequently measured at amortised cost. This
1. Summary of material accounting policies (continued)
means that the difference between the proceeds at the time of borrowing and the nominal repay-
able amount of the loan is recognised in the income statement as a financial expense over the
term of the loan applying the effective interest method.
Other payables
Other financial liabilities are measured at amortised cost, which usually corresponds to nominal
value.
Prepayments (liability)
Prepayments comprise amounts grants received from EU-projects. Prepayments related to
EU-projects are recognised as other operating income when the group performs under the
EU-projects.
Equity
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from the proceeds.
Dividends
Dividend is recognised as a liability at the time of adoption at the general meeting. Proposed
dividend for the financial year is disclosed as a separate item in equity. Extraordinary dividend
adopted in the financial year is recognised directly in equity when distributed and disclosed as a
separate item in Management's proposal for distribution of profit/loss.
Correction to prior years
Correction has been made of misstatements concerning previous years due to incorrect meas-
urement of the percentage of completion for revenue over time. Management has noted that
recognition and measurement of revenue from contracts with customers have been incorrect in
the previous financial year 2021, 2022 and 2023. The misstatements have an effect on the Income
Statement, Balance Sheet and Equity in the comparative figures, why they have been restated
accordingly.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
42
Notes to the consolidated financial statements
1. Summary of material accounting policies (continued)
In respect of the financial year 2023, the Group’s revenue have been affected negatively by MDKK
5, Tax of the year has been reduced with MDKK 1. Contract work in progress has been reduced with
MDKK 5. Current tax liabilities have been reduced with MDKK 1. Furthermore, the equity at 1 January
2023 has been reduced with MDKK 1 due to the misstatements in 2020, 2021 and 2022.
Furthermore, material reclassification has been prepared between revenue, other operating
income, contract work in progress (assets/liabilities) and prepayments in the comparative figures
due to change in accounting policy.
Cash flow statement
The cash flow statement shows cash flows from operating, investing and financing activities, and
cash and cash equivalents at the beginning and the end of the financial year.
The cash flow statement shows cash flows from operating, investing and financing activities, and
cash and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as
the operating profit/loss adjusted for non-cash operating items, working capital changes, and
financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divest-
ment of enterprises, activities and fixed asset investments, and purchase, development, improve-
ment and sale, etc of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contrib-
uted capital and related costs, and the raising of loans, repayments of interest-bearing debt,
including lease liabilities, purchase of treasury shares and payment of dividend.
Financial highlights
Solvency ratio Equity at year end x 100 / Total assets at year end
Net margin Profit loss for the year x 100 / Revenue
Return on equity Net profit the year x 100 / Average equity
2. Significant estimates, judgements and errors
The preparation of financial statements requires the use of accounting estimates which, by defi-
nition, will seldom equal the actual results. Management also needs to exercise judgement in
applying the group’s accounting policies.
This note provides an overview of the areas that involve a higher degree of judgement or complexity,
and of items which are more likely to be materially adjusted due to estimates and assumptions
turning out to be wrong. Detailed information about each of these estimates and judgements is
included in other notes together with information about the basis of calculation for each affected
line item in the financial statements. In addition, this note also explains where there have been
actual adjustments this year as a result of an error and of changes to previous estimates.
Judgements
Revenue
Drug development (licenses, research and development services)
For contracts comprising a license to the group's intellectual property, as well as research and
development services, management carefully considers whether the license is distinct (i.e., the
license is a separate performance obligation).
If the license to the group's intellectual property is determined to be distinct, the group recognises the
portion of the transaction price allocated to the license once the license is transferred to the licensee
and the licensee is able to use and benefit from the license. This is usually at contract inception.
Licenses that are non-distinct are bundled with the related research and development services
and the total transaction price is recognized as revenue over time using cost as the method of
measuring progress.
In determining whether the license is distinct, Management carefully considers all facts and
circumstances. A license is usually distinct if the related services could be readily performed by
another entity and the related services are not expected to significantly modify or customize the
intellectual property. However, whether a license is distinct depends on the specific circumstances
under the contract. If the license is in an early stage and the related services are expected to
involve significant further development of the intellectual property, the license is likely not distinct.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
43
Notes to the consolidated financial statements
2. Significant estimates, judgements and errors (continued)
Drug development (amount and timing of recognition of variable consideration)
For contracts comprising the potential for milestone payments triggered by the occurrence or
non-occurrence of future events (i.e. variable consideration), management carefully considers the
amount of variable consideration to include in the transaction price and only include an amount
to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur once the uncertainty related to the variable consideration is
subsequently resolved.
As a result of past experience with milestones, management has determined that milestones
cannot be included in the transaction price at contract inception.
This is due to the fact that many of the events related to the milestone payments are susceptible
to factors outside the influence of the group. Additionally, the uncertainty related to the milestone
payments are not expected to be resolved for a long period of time at contract inception. Therefore,
variable consideration is recognised as revenue when the group is entitled to receive payment.
At the end of each reporting period, management updates its assessment of whether the milestone
payments are constrained by considering the likelihood of a potential significant revenue reversal.
Estimates
Revenue
Drug development (stand-alone selling prices of licenses and research/development services)
For contracts comprising a license to the group's intellectual property, as well as research and
development services determined to be separate performance obligations, management allo-
cates the transactions price based on the relative stand-alone selling prices of the license and
development services, respectively.
When the stand-alone selling prices of a license is not readily observable, management has
decided to apply a residual approach in estimating its stand-alone selling price.
The stand-alone selling price of the development services are readily observable as the group
regularly sells identical services on a stand-alone basis. Consequently, in calculating the stand-
alone selling price of the license, the stand-alone selling price of the development services is
deducted from the total transaction price.
Recognition of revenue over time (percentage of completion)
For revenue recognised over time, the group applies the percentage of completion method. The
group applies both input-based (e.g. costs incurred) and output-based (e.g. units produced)
methods in determining the percentage of completion. The method is applied when the costs
incurred or units produced can be reliably estimated by reference to the expected total costs to be
incurred or total units to be produced, respectively.
The use of the percentage of completion method involves significant estimation. Changes in the
estimated total costs or the actual costs incurred can materially affect the amount of revenue
recognised in each reporting period. The group regularly reviews and updates these estimates to
reflect the most current information available.
Deferred tax asset
Estimate of utilization of deferred tax asset
Deferred tax assets are recognized for all unused tax losses and difference values to the extent it is
deemed likely that within the foreseeable future taxable profits will be realized in which the losses
and the difference values can be utilized. Determining the size of the amount that can be recog-
nized for deferred tax assets is based on management’s estimate of the likely time and amount of
future taxable profits. At 31 December 2024, the carrying value of recognized tax was DKK 67,776k,
which is estimated to be realized in the foreseeable future (5 years or less), see note 9.
Estimating fair value
Estimating fair value for share-based payment transactions requires determination of the most
appropriate valuation model, which depends on the terms and conditions of the grant. This esti-
mate also requires determination of the most appropriate inputs to the valuation model.
In valuing the shares, Management has applied a valuation technique that focuses on the Group
as a whole as a starting point and includes market multiples. The assumptions and models used
for estimating the fair value of the incentive program are disclosed in note 6.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
44
Notes to the consolidated financial statements
Description of segments and principal activities
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker.
The Group's chief operating decision maker (CODM), consisting of the chief executive officer and
chief financial officer, examines the Group's performance both from a product and geographic
perspective and has identified two reportable segments of which the Group derives its revenues:
R&D service and Diagnostics
The R&D service and Diagnostics business provides scientific services based on Nordic
Biosciences biomarkers. In addition to R&D collaborations with customers, samples are measured
in the CAP certified lab in Herlev, Denmark. Selected biomarkers are licensed to diagnostic compa-
nies and generates license-income .
Drug development
The drug development business has strong drug candidates in both clinical and preclinical devel-
opment. This part of the business is carried out in Switzerland.
All other segments and eliminations
This relates to group cost unrelated to the two operating segments and to eliminations.
The Group's chief operating decision maker (CODM) uses EBIT to assess the performance of the
operating segments. It excludes the effects of significant items of income and expenditure which
may have an impact on the quality of earnings such as restructuring costs, legal expenses and
impairments where the impairment is the result of an isolated, non-recurring event.
Financial income and financial expenses are not allocated to segments, as this type of activity is
driven by the central treasury function, which manages the cash position of the group.
Major customers
The Group has 4 major customers as the revenues from transactions with these customers seper-
ately amount to 69% or more of the Group's revenue.
Major customer #1 constitutes 42% of the Group's revenue, which amounts to TDKK 223.149. Revenue
from this customer is derived from Drug development.
Major customer #2 constitutes 10% of the Group's revenue, which amounts to TDKK 53.937. Revenue
from this customer is derived from R&D services and Diagnostics.
Major customer #3 constitutes 8% of the Group's revenue, which amounts to TDKK 44.743. Revenue
from this customer is derived from R&D services and Diagnostics.
Major customer #4 constitutes 8% of the Group's revenue, which amounts to TDKK 43.472. Revenue
from this customer is derived from R&D services and Diagnostics.
See next page for segment information in table format:
3. Segment reporting
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
45
Notes to the consolidated financial statements
3. Segment reporting (continued)
R&D services and
Diagnostics
Drug
development
All other segments and
eliminations Total
2024 2023 2024 2023 2024 2023 2024 2023
TDKK TDKK TDKK TDKK TDKK TDKK TDKK TDKK
Segment information
Revenue 303,404 190,449 223,990 - - - 527,393 190,449
Intersegment revenue 21,515 41,728 - - -21,515 -41,728 - -
Segment revenue 324,918 232,177 223,990 - -21,515 -41,728 527,393 190,449
Cost of goods sold (staff costs) -50,343 -43,824 - - - - -50,343 -43,824
Cost of goods sold (materials) -10,692 -13,541 - - - - -10,692 -13,541
Gross profit 263,884 174,812 223,990 - -21,515 -41,728 466,359 133,084
Research & Development (staff costs) -69,378 -55,077 -7,100 -6,600 7,100 6,600 -69,378 -55,077
Research & Development (materials) -41,608 -40,137 -98,367 -47,194 14,415 35,128 -125,560 -52,202
Admin costs -52,113 -40,477 -14,719 -595 -3,181 -906 -70,014 -41,978
Other operating income 7,190 9,565 - - 1,248 1,251 8,438 10,816
EBITDA 107,976 48,686 103,803 -54,389 -1,933 345 209,846 -5,357
Depreciations & amortisation -12,117 -12,275 - - - - -12,117 -12,275
EBIT 95,859 36,412 103,803 -54,389 -1,933 345 197,729 -17,632
Financial income 16,077 4,458
Financial expenses -4,000 -7,984
Profit before tax 209,806 -21,158
Non-current assets 117,532 86,786 29,452 42,000 - - 146,984 128,786
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
46
Notes to the consolidated financial statements
3. Segment reporting (continued)
Revenue
2024 2023
TDKK TDKK
Geographical information - major regions
Denmark 32,718 10,299
Rest of Europe 140,213 54,860
US 342,645 113,579
Rest of World 11,817 11,711
Total 527,393 190,449
The allocation of revenue to geographical areas - in this instance major regions - is based on the
customer's location.
Segment assets
The total of non-current assets other including deferred tax assets, broken down by location of the
assets, is shown below:
Non-current assets
2024 2023
TDKK TDKK
Denmark 117,532 86,786
Rest of Europe 29,452 42,000
146,984 128,786
4. Revenue from contracts with customers
Disaggregation of revenue from contracts with customers
The group derives revenue from its business practices in the following types of revenue streams:
2024 2023
TDKK TDKK
Revenue related to Customer type category:
Pharma 412,065 131,356
Biotech 17,790 21,131
Contract Research Organisation 97,538 31,161
Other - 6,800
Total revenue 527,393 190,449
2024 2023
TDKK TDKK
Timing of revenue recognition:
Revenue recognised at a point in time 140,200 -
Revenue recognised over time 387,193 190,449
Total revenue 527,393 190,449
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
47
Notes to the consolidated financial statements
4. Revenue from contracts with customers (continued)
Assets and liabilities related to contracts with customers
The group has recognised the following assets and liabilities related to contracts with customers:
2024 2023
TDKK TDKK
Assets
Contract work in progress 13,436 11,298
Liabilities
Prepayments received from customers 329,000 163,453
Significant changes in assets and liabilities related to contracts with customers
Contract work in progress have increased with 163,409 TDKK. The increase is due to the new drug
development study with a large US customer.
Revenue recognised in relation to prepayments
The following table shows how much of the revenue recognised in the current reporting period
relates to carried-forward contract liabilities and how much relates to performance obligations
that were satisfied in a prior year:
2024 2023
TDKK TDKK
Revenue recognised that was included in prepayments received from
customers balance at the beginning of the period 99,497 42,989
Unsatisfied contracts
The following table shows unsatisfied performance obligations resulting from long-term contracts:
2024 2023
TDKK TDKK
Aggregate amount of the transaction price allocated to long-term
contracts that are partially unsatisfied as at 31 December 191,361 70,850
Aggregate amount of the transaction price allocated to long-term
contracts that are fully unsatisfied as at 31 December 124,204 81,305
Total unsatisifed contracts 315,565 152,155
Management expects that 100% of the transaction price allocated to partially unsatisfied perfor-
mance obligations as of 31 December 2024 will be recognized as revenue during the next or
following reporting period (TDKK 191,361). The amount does not include variable consideration
which is constrained.
Fully unsatisfied contracts consists of the contractual amount of projects, where the work has not
started per 31 December 2024 (TDKK 124,204) and will be recognized over the period where the work
is performed. Management has decided to present these contracts as fully unsatisifed as there is
not accurate data to estimate when the revenue will be recognized, but expects the projects to be
finalized in 1-5 years.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
48
Notes to the consolidated financial statements
5. Breakdown of expenses by nature
The following table breaks down costs by nature:
2024 2023
TDKK TDKK
Staff costs 157,643 121,398
Depreciation, amortization and impairments 12,117 12,275
Materials and oher expenses 168,342 85,224
338,103 218,897
Included in production costs:
Staff costs 50,343 43,824
Depreciation, amortization and impairments 798 665
Materials and oher expenses 10,692 13,541
61,832 58,030
Included in research and developement costs:
Staff costs 69,378 55,077
Depreciation, amortization and impairments 4,381 4,429
Materials and oher expenses 125,560 52,203
199,319 111,709
Included in administrative costs:
Staff costs 37,923 22,497
Depreciation, amortization and impairments 6,938 7,181
Other expenses 32,091 19,480
76,951 49,159
6. Staff costs
2024 2023
TDKK TDKK
Wages and salaries 131,397 104,518
Pension cost, defined contribution plans 7,775 7,212
Other social security costs 583 602
Share-based payments* 16,168 7,032
Other staff costs 1,721 2,034
157,643 121,398
Average number of employees 176 171
Key management personnel compensation
Key management personnel consists of the Executive Board and Board of Directors and other key
management. The compensation paid to key management personnel for is shown below:
Of which
constitutes:
Total key
management
remuneration
Executive
board and
Board of
Directors
TDKK TDKK
2024
Wages and salaries 31,269 13,346
Pension cost, defined contribution plans 682 385
Other social security costs 4 2
Share-based payments* 46 26
Other staff costs - -
32,000 13,759
* Refers to recognised costs but not paid-out remuneration for active share-based incentive programmes.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
49
Notes to the consolidated financial statements
6. Staff costs (continued)
Of which
constitutes:
Total key
management
remuneration
Executive
board and
Board of
Directors
TDKK TDKK
2023
Wages and salaries 11,853 7,001
Pension cost, defined contribution plans 651 360
Other social security costs 5 2
Share-based payments* 1,108 630
Other staff costs - -
13,617 7,993
* Refers to recognised costs but not paid-out remuneration for active share-based incentive programmes.
Share-based payments
Incentive programme
Nordic Bioscience Holding has in 2022 and in 2023 implemented incentive programmes to provide
long-term incentives for participants (Executive Board and full-time employees) to deliver long-
term shareholder return. The program are important to retain the participants in the group.
In 2022, 2023 and 2024, Nordic Bioscience Holding A/S implemented long-term incentive programs
for employees. The granted incentive programs consist of one being Restricted Stock Unit ("RSU").
These types of programmes are the only outstanding share-based remuneration programs as of
31 December 2024.
Below is a summary of the share-based instruments granted under the incentive programmes.
Restricted Stock Unit ("RSU") programme
Employees in Nordic Bioscience Holding A/S have been offered the opportunity to receive RSU's
in the Company. The RSU's are granted free of charge to the employees. The grant of RSU’s to the
Participants is an offer and not part of an ongoing program.
The RSU’s vest over a period of ten years and the vesting of granted RSU’s takes place on the 10th
anniversary of the Date of Grant. At vesting the employee is delivered a number of A-shares in
the Company equal to the number of RSU's having vested (one RSU to one ordinary share). Grant,
vesting and/or exercise is not subject to achievement of performance targets, but conditional on
continued employment during the vesting period (service condition).
In total 2,551,470 RSU's were granted to Employees in 2022, 738,788 were granted in 2023 and
1,139,825 were granted in 2024.
In the event of an IPO the RSU program is subject to accelerated vesting.
Set out below are summaries of shares granted under the incentive programmes.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
50
Notes to the consolidated financial statements
Warrant programme
Certain senior employees have been offered the opportunity to receive warrants in the Company.
The warrants are granted free of charge to those members. The grant of warrants is not part of an
ongoing program.
The warrants vest over a period of ten years and the vesting of all the warrants takes place on
the 10th anniversary of the Date of Grant. The vested warrants gives the Holder the right but not
an obligation to convert the warrants into A-shares. Grant, vesting and/or exercise is not subject
to achievement of performance targets, but conditional on continued employment during the
vesting period (service condition).
6. Staff costs (continued)
In total 4,807,759 warrants were granted to Employees in the 2022, 2,500,000 were granted in 2023
and 6,037,000 in 2024.
In the event of an IPO the warrant program is subject to accelerated vesting.
Set out below are summaries of shares granted under the incentive programmes.
Grant date
No. of
instruments
Contract
life Forfeited
Fair value
at grant
Costs
recognised
TDKK TDKK
2024
Warrants 1 February 2024 2,500,000 10 years - 0.968 1,934
Restricted Stock Units (RSU) 1 February 2024 569,913 10 years -65,241 5.256 2,394
Warrants 1 November 2024 3,537,000 10 years - 0.965 190
Restricted Stock Units (RSU) 1 November 2024 569,913 10 years - 5.256 807
2023
Warrants 9 December 2023 2,500,000 10 years -2,467,152 1.080 5,601
Restricted Stock Units (RSU) 9 December 2023 738,788 10 years -436,645 5.256 1,431
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
51
Notes to the consolidated financial statements
2024 2023
TDKK TDKK
Warrant programme - Number of warrants granted
during the year 6,037,000 2,500,000
Warrant programme - Number of warrants forfeited during the year - -1,197,405
Warrant programme - Number of warrants cancelled during the year - -1,269,747
Total number of warrant at 31 December 6,037,000 32,848
RSU - Number of RSUs granted during the year 1,139,825 738,788
RSU - Number of RSUs forfeited during the year -65,241 -436,645
Total number of RSUs at 31 December 1,074,584 302,143
Refers to recognised costs but not paid-out remuneration for active
share-based incentive programmes 16,108 7,032
Specification of outstanding RSU's
Weighted
average
exercise price
Key
Management Employees Total
DKK
Outstanding 1 January 2023 5.256 - 2,551,470 2,551,470
Granted 5.256 - 738,788 738,788
Exercised - - - -
Forfeited 5.256 - -436,645 -436,645
Expired - - - -
Outstanding 31 December 2023 5.256 - 2,853,613 2,853,613
Outstanding 1 January 2024 5.256 - 2,853,613 2,853,613
Granted 5.256 - 1,139,825 1,139,825
Exercised - - - -
Forfeited 5.256 - -65,241 -65,241
Expired - - - -
Outstanding 31 December 2024 5.256 - 3,928,197 3,928,197
6. Staff costs (continued)
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
52
Notes to the consolidated financial statements
Fair value measurement
Nordic Bioscience Holding A/S has applied the Black-Scholes formula model to determine the fair
value on the grant date 9 December 2022, 9 December 2023, 1 February 2024 and 1 November 2024,
respectively. Service and non-market performance conditions attached to the arrangements
were not taken into account in measuring the fair value. The expected volatility below is based on
historical volatility of a peer group of similar listed Companies for a one year period. The inputs
used to measure the fair values at grant date of the equity-settled share-based payments where
as follows.
2024 2023
Black-Scholes parameters/assumptions/input
Exercise price (DKK) for warrants 5.256 5.256
Exercise price (DKK) for RSU's 0.000 0.000
Volatility 45.03% 45.03%
Risk-free interest rate 2.50% 1.12%
Dividend yield 0.88% 0.88%
Expected remaining life 1.20 1.29
Expected remaining life (Nov 2024 grant) 3.00 -
Fair value of warrant (DKK) 0.939 1.080
Fair value of warrant, Nov 2024 grant (DKK) 0.965 -
6. Staff costs (continued)
Specification of outstanding warrants
Weighted
average
exercise price
Key
Management Employees Total
DKK
Outstanding 1 January 2023 5.256 1,269,747 3,538,012 4,807,759
Granted 5.256 - 2,500,000 2,500,000
Exercised - - - -
Cancelled 5.256 -1,269,747 - -1,269,747
Forfeited 5.256 - -1,197,405 -1,197,405
Expired - - - -
Outstanding 31 December 2023 5.256 - 4,840,607 4,840,607
Outstanding 1 January 2024 5.256 - 4,840,607 4,840,607
Granted 5.256 855,000 5,182,000 6,037,000
Exercised - - - -
Forfeited - - - -
Expired - - - -
Outstanding 31 December 2024 5.256 855,000 10,022,607 10,877,607
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
53
Notes to the consolidated financial statements
7. Financial income and expenses
2024 2023
TDKK TDKK
Financial income
Interest income 10,661 4,458
Total interest and financial expenses for financial liabilities not at fair
value through profit or loss 10,661 4,458
Foreign exchange rate gains 5,416 -
Total financial income 16,077 4,458
Financial expenses
Interest expense bank -2,640 -3,084
Interest expense on mortgage debt -1,145 -1,097
Interest expense on lease liabilities -159 -150
Other financial expenses -56 -209
Total interest and finance charges for financial liabilities not at fair
value through profit or loss -4,000 -4,541
Net foreign exchange rate losses - -3,443
Total financial expenses -4,000 -7,984
No finacial income from fair value instruments was recognised during 2024, 2023.
8. Income tax expense
2024 2023
TDKK TDKK
Income tax for the year
Current tax for the year 66,822 5,806
Changes in deferred tax -27,829 -41,690
Tax adjustments relating to previous years - 2,411
Tax on profit for the year 38,993 -33,472
Income tax expense 38,993 -33,472
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
54
Notes to the consolidated financial statements
8. Income tax expense (continued)
2024 2023
TDKK % TDKK %
Reconcilliation of effective tax rate
Profit before income tax 209,806 -20,392
Tax at the Danish tax rate of 22% (2023: 22%) 46,157 22% -4,486 22%
Less tax in foreign operations in relation to the Danish
tax rate of 22% rate (2023: 22%) - 0% - 0%
Tax effects of:
Non-deductible expenses 988 0% 50 0%
Adjustment for share-based payment 2,196 1% 1,378 -7%
Raised deduction for research and development costs -1,845 -1% -1,767 9%
Capitalized tax value -8,503 -4% -32,820 161%
Non-capitalized tax value of losses - 0% 1,390 -7%
Other adjustments - 0% 372 -2%
Adjustments for current tax of prior periods - 0% 2,411 -12%
Income tax expense 38,993 19% -33,472 164%
Effective tax rate (%) 19% 164%
9. Deferred tax
2024 2023
TDKK TDKK
Deferred tax
Deferred tax at the beginning of period 38,741 -2,949
Deferred tax recognised in the statement of profit or loss 27,828 41,690
Deferred tax at year end 66,569 38,741
2024 2023
TDKK TDKK
Deferred tax relates to:
Intangible assets -893 -1,754
Property, plant and equipment -1,996 -1,782
Receivables 220 220
Leasing assets/debt 119 57
Share-based compensation 1,342 -
Other taxable temporary differences - -
Deferred income 29,452 -
Tax loss carry-forward 38,324 42,000
Total 66,569 38,741
Recognised as follows:
Deferred tax assets 67,776 42,000
Deferred tax liabilities -1,207 -3,259
The capitalized deferred tax assets in 2023 and 2024 include an amount of TDKK 42,000 and TDKK
35,180 which relates to carried-forward tax losses of KeyBioscience AG. The subsidary has incurred
the losses since the beginning of the company's development of its core product. The losses arrise
from significant research and development. Based on approved business plans and budgets
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
55
Notes to the consolidated financial statements
9. Deferred tax (continued)
management expects the subsidiary to generate taxable income from 2025 and onwards and
management has therefore concluded that the deferred tax assets will be recoverable. The losses
can be carried forward indefinitely and have no expiry date.
The remaining part of the tax loss carry-forward of TDKK 3,144 relates to Nordic Bioscience Holding
A/S. Based on approved business plans and budgets management expects to generate taxable
income on Group level from 2025 and onwards and management has therefore concluded that
the deferred tax assets will be recoverable. The losses can be carried forward indefinitely and have
no expiry date.
The capitalized deferred tax assets in 2024 include an amount of TDKK 29,452 regarding deferred
income. It relates to taxation of deferred income in KeyBioscience AG. The deferred income are
qualified as CFC income according to the Danish CFC rules and has been included in the taxable
income for Nordic Bioscience Holding A/S. The deferred tax will be released when the deferred
income is recognized the foreseeable future of 2-3 years.
10. Intangible assets
In thousands DKK
Completed
development
projects
Development
projects in
progress Total
TDKK TDKK TDKK
Cost:
At 1 January 2023 10,870 1,628 12,498
Additions - 4,647 4,647
Transfers 6,275 -6,275 -
At 31 December 2023 17,145 - 17,145
Accumulated depreciation and impairment:
At 1 January 2023 -4,078 - -4,078
Amortisation charge -5,094 - -5,094
At 31 December 2023 -9,172 - -9,172
Carrying amount 31 December 2023 7,973 - 7,973
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
56
Notes to the consolidated financial statements
Completed development projects and development projects in progress include the development
of technology, which automate various processes within the production of biomarkers. The devel-
opment projects comprise both external consultancy fees and internal labor costs.
Impairment of assets
Development projects in progress are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might
be impaired. Other non-current assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets (cash-generating units). Non-financial assets other than
goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the
end of each reporting period.
Total expense related to research and development amounted to TDKK 200,582 in 2024 (2023: TDKK
116,510).
10. Intangible assets (continued)
In thousands DKK
Completed
development
projects
Development
projects in
progress Total
TDKK TDKK TDKK
Cost:
At 1 January 2024 17,145 - 17,145
Additions 1,263 - 1,263
Transfers - - -
At 31 December 2024 18,408 - 18,408
Accumulated depreciation and impairment:
At 1 January 2024 -9,172 - -9,172
Amortisation charge -5,179 - -5,179
Exchange differences - - -
At 31 December 2024 -14,351 - -14,351
Carrying amount 31 December 2024 4,057 - 4,057
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
57
Notes to the consolidated financial statements
11. Property, plant and equipment
Land and
buildings
Other
fixtures,
fittings and
equipment Total
TDKK TDKK TDKK
Cost:
At 1 January 2023 78,649 32,823 111,471
Additions 416 9,486 9,901
Disposals - -48 -48
At 31 December 2023 79,065 42,260 121,325
Accumulated depreciation and impairment:
At 1 January 2023 -11,721 -23,658 -35,379
Depreciation charge -1,706 -5,474 -7,181
Reversal regarding disposals - 48 48
At 31 December 2023 -13,427 -29,084 -42,512
Carrying amount 31 December 2023 65,637 13,176 78,813
Cost:
At 1 January 2024 79,065 42,260 121,325
Additions 366 2,233 2,599
Disposals - - -
At 31 December 2024 79,431 44,493 123,924
Accumulated depreciation and impairment:
At 1 January 2024 -13,427 -29,084 -42,512
Depreciation charge -1,718 -4,541 -6,259
Reversal regarding disposals - - -
At 31 December 2024 -15,145 -33,626 -48,771
Carrying amount 31 December 2024 64,286 10,867 75,153
Right-of use assets are included in the "Other fixtures, fittings and equipent"-category in the state-
ment of financial position since the corresponding right-of-use asset would have been presented
in this category if it was owned.
Refer to note 12 for more information about the group's leasing activities.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
58
Notes to the consolidated financial statements
12. Leases
2024 2023
TDKK TDKK
Other fixtures, fittings and equipment 2,527 3,325
Right of use assets at 31 December 2,527 3,325
Current lease liabilities 671 512
Non-current lease liabilities 2,398 3,069
Lease liabilities at 31 December 3,069 3,581
Depreciation charge of right-of-use assets
Other fixtures, fittings and equipment -798 -665
Total -798 -665
Interest expense on lease liabilities
(included in financial expenses) -159 -150
Additions to right-of-use assets - 3,990
Total cash outflow related to leases -671 -559
The group's leasing activity consists of a single lease agreement in which the group leases lab
equipment. As such, the average lease maturity equals the maturity of said agreement, which is
7 years. A termination option is included in the agreement only for the group to exercise, but is not
expected to be exercised.
The group did not incur any material expenses related to short-term leases, leases of low-value
assets or variable lease payments.
No subleasing or sale and lease back transactions have occured.
For the maturity analysis of lease payments, refer to note 15.
13. Inventories
2024 2023
TDKK TDKK
Finished goods 19,944 23,613
Total inventories at 31 December 19,944 23,613
Inventories recognised as an expense during the year 2024 amounted to TDKK 33.573 (2023: TDKK
32.991)
Writedowns during the year 2024 amounted to TDKK 0 (2023: TDKK 0).
Finished goods consist of laboratory equipment that is consumed in connection with work to be
performed for customers, such as test tubes, flasks, and similar items. As such, finished goods are
not expected to be sold.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
59
Notes to the consolidated financial statements
14. Financial assets and financial liabilities
The group holds the following financial instruments:
2024 2023
TDKK TDKK
Financial assets
Financial assets at amortised cost
Trade receivables 82,912 21,236
Other receivables 1,620 17,413
Prepayments - 1,383
Receivables from other related parties - 2,859
Cash and cash equivalents 455,420 81,947
539,953 124,838
Financial liabilities
Financial liabilities at amortised cost
Trade payables 37,483 15,256
Lease liabilities 3,069 3,581
Prepayments 8,509 3,248
Mortgage debt 39,847 42,619
Other payables 4,622 5,499
93,531 70,203
For the financial liabilities at amortized cost, the fair values are not materially different from their
carrying amounts, since the interest payable on those liabilities is either close to current market
rates or the liabilities are of a short-term nature.
The group’s exposure to various risks associated with the financial instruments is discussed in
note 15.
15. Financial risk management
The group’s principal financial liabilities, comprise mortgage debt, and trade and other payables.
The main purpose of these financial liabilities is to finance the group’s operations. The group’s
principal financial assets include trade receivables, other receivables and cash and cash equiva-
lents.
The group is exposed to market risk, credit risk and liquidity risk.
Market risk
Interest rate risk
The group’s main interest rate risk arises from mortgage debt with variable rates, which expose
the group to cash flow interest rate risk. Management considers the risk moderate. Exposure and
sensitivity analysis below:
Exposure
2024
% of total
loans 2023
% of total
loans
TDKK TDKK
Variable rate loans 39,847 100% 42,619 100%
Fixed rate loans - 0% - 0%
Cash and cash equivalents 455,420 81,947
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
60
Notes to the consolidated financial statements
15. Financial risk management (continued)
Sensitivity analysis
The following table shows the material sensitivity of profit and loss and equity to what manage-
ment considers reasonably probable interest rate changes:
Hypothetical impact
on post-tax profit
Hypothetical impact
on equity
2024 2023 2024 2023
TDKK TDKK TDKK TDKK
Interest rate - 1%-point increase 3,406 322 3,406 322
Interest rate - 1%-point decrease -3,406 -322 -3,406 -322
Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The group’s exposure to the risk of changes in
foreign exchange rates relates primarily to the group’s operating activities (when revenue is
denominated in a foreign currency). The group is primarily exposed to fluctuations in EUR, CHF, and
USD. However, since DKK is locked to EUR through a fixed exchange rate policy, fluctuations in EUR/
DKK is considered immaterial. The very limited exposure to CHF is considered immaterial.
As such, only the group's exposure to the effect of fluctuations in USD is presented.
The group consider its foreign currency risk to be immaterial and does not take measurers to miti-
gate this.
Exposure
2024 2023
TUSD TUSD
Trade receivables 8,632 2,256
Trade payables 170 -986
Sensitivity analysis
The following table shows the material sensitivity of profit and loss and equity to what manage-
ment consider reasonably probable exchange rate changes:
Hypothetical impact
on post-tax profit
Hypothetical impact
on equity
2024 2023 2024 2023
TDKK TDKK TDKK TDKK
DKK/USD - 10% increase 880 127 880 127
DKK/USD - 10% decrease -880 -127 -880 -127
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
61
Notes to the consolidated financial statements
15. Financial risk management (continued)
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a customer contract,
leading to a financial loss. The group is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks.
Management has determined that the credit risk related to the group’s trade receivables and
contract work in progress is immaterial. This is due to the high-quality nature of the group’s
customers, which are all considered creditworthy.
The credit risk on bank deposits is limited because the counterparties, holding significant deposits,
are banks with high credit-ratings (minimum A1) assigned by international credit-rating agencies.
The group’s policy is only to invest its cash deposits with highly rated financial institutions. Accord-
ingly, the group considers credit risk to be immaterial.
Liquidity risk
Liquidity risk management implies maintaining sufficient cash and the availability of funding to
meet obligations when due.
Maturities of financial liabilities
The amounts disclosed in the following table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances.
Contractual maturities of financial liabilities
> 1 year 1 - 5 years < 5 years
Total
contractual
cash flows
Carrying
amount
TDKK TDKK TDKK TDKK TDKK
At 31 December 2024
Mortgage debt 3,973 15,782 28,309 48,064 39,847
Trade payables 37,483 - - 37,483 37,483
Lease liabilities 671 2,398 - 3,069 3,069
Other payables 4,622 - - 4,622 4,622
46,749 18,180 28,309 93,328 85,021
At 31 December 2023
Mortgage debt 4,185 16,624 31,172 51,981 42,619
Trade payables 15,256 - - 15,256 15,256
Lease liabilities 677 3,355 112 4,144 3,581
Other payables 5,499 - - 5,499 5,499
25,617 19,979 31,284 76,880 66,955
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
62
Notes to the consolidated financial statements
16. Cash flow specifications
2024 2023
TDKK TDKK
Adjustments to reconcile profit before tax to
net cash flows
Financial income -16,077 -4,458
Financial expenses 4,000 7,984
Depreciation, amortisation and impairment charges 12,117 12,275
Income tax 38,994 -33,472
Share-based payments 16,108 7,032
55,142 -10,639
Changes in net working capital
Change in inventories 3,670 3,792
Change in receivables -42,786 9,727
Change in trade payables, etc. 22,227 -13,978
Change in WIP, Prepayments and deferred revenue etc 168,879 77,611
Other changes 3,990 324
157,454 77,476
Changes in liabilities arising from financing activities
This section sets out an analysis of net debt and the movements in net debt for each of the periods
presented.
Mortgage
debt
Lease
liabilities Total
TDKK TDKK TDKK
Debt as at 1 January 2023 45,426 - 45,426
Proceeds (raising of debt) - - -
Repayment -2,807 -409 -3,216
Cash flows -2,807 -409 -3,216
New leases - 3,990 3,990
Interest - - -
Non-cash flows - 3,990 3,990
Debt as at 31 December 2023 42,619 3,581 46,200
Debt as at 1 January 2024 42,619 3,581 46,200
Repayment -2,772 -512 -3,284
Cash flows -2,772 -512 -3,284
Interest - - -
Non-cash flows - - -
Debt as at 31 December 2024 39,847 3,069 42,916
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
63
Notes to the consolidated financial statements
17. Share capital
2024 2023
Number of
shares in
thousands
Nominal
value
Number of
shares in
thousands
Nominal
value
TDKK TDKK
The share capital comprise:
A shares (fully paid) 955,475 9,555 955,475 9,555
B shares (fully paid) 106,164 1,062 106,164 1,062
1,061,638 10,616 1,061,638 10,616
Each share has a nominal value of 0,01 DKK.
No changes to the share capital were recognised in any of the periods presented.
All shares carry same voting rights. B shares does not carry dividend rights, but have a liquidation
preference which will be setted before A shares participate in proceeds from a liquidation event.
2024 2023
DKK per
share
DKK per
share
Total dividend paid out for the year 0,000 0,038
Total dividend proposed for the year 220,000 0.000
Number of treasury shares - -
18. Earnings per share
2024 2023
TDKK TDKK
Basic earnings per share
Total basic earnings per share attributable to the ordinary equity
holders of the company 0.16 0.012
Diluted earnings per share
Total diluted earnings per share attributable to the ordinary equity
holders of the company 0.16 0.012
Reconciliations of earnings used in calculating earnins per share
2024 2023
TDKK TDKK
Basic earnings per share
Profit for the year as presented in the income statement 170,813 12,313
Profit attributable to the ordinary equity holders of the company used
in calculating basic earnings per share 170,813 12,313
Diluted earnings per share
Profit attributable to the ordinary equity holders of the company used
in calculating basic earnings per share 170,813 12,313
Profit attributable to the ordinary equity holders of the company used
in calculating diluted earnings per share 170,813 12,313
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
64
Notes to the consolidated financial statements
18. Earnings per share (continued)
2024 2023
Number of
shares in
thousands
Number of
shares in
thousands
Weighted average nummer of shares
used as the denominator
Weighted average nummer of ordinary shares used as the
denominator in calculating basic earnings per share 1,061,638 1,061,638
Adjustments for calculation of diluted earnings per share:
Warrants 8,606 2,569
RSU 2,825 1,750
Weighted average number of ordinary share and potential ordinary
shares used as the denominator in calculating diluted earnings per
share 1,073,069 1,065,958
Information concerning the classification of securities
Warrants
Warrants are included in the determination of diluted earnings per share, since the exercise of
warrants under the warrant programme would require the group to issue new shares, which would
have a dilutive effect.
RSU
RSU's are also included in the determination of diluted earnings per share, since the event that
would lead to the transfer of shares would require the group to issue new shares, which would
have a dilutive effect.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
65
Notes to the consolidated financial statements
20. Contingent liabilities, commitments and contingencies
Contingent liabilities
The group participates in a Danish joint taxation with the parent company Romarine ApS and its
other Danish subsidiaries (the parent group). The group companies and the parent group are
jointly and severally liable for tax on the jointly taxed incomes etc. of the group and the parent
group. The total amount of corporation tax payable is disclosed in the Annual Report of Romarine
ApS, which is the management company of the Danish joint taxation. Moreover, the group compa-
nies and the parent group are jointly and severally liable for Danish withholding taxes by way of
dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments
of corporation taxes and withholding taxes may increase the Group's liability.
Charges and securities
The following assets have been placed as security with mortgage credit institutions:
2024 2023
TDKK TDKK
Land and buildings with a carrying amount of 64,286 65,637
19. Capital management
Objective and capital management policies
The group and its Board of Directors monitor capital structure to ensure that the group’s capital
resources support the strategic goals. Moreover, capital structure is monitored to safeguard an
acceptable level of cost of capital. Consequently, both debt and equity are used as financing
components.
The group’s objectives when managing capital are to:
- safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and
- maintain a strong capital base to guarantee investor, credit and market confidence.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new debt, issue new shares or sell
assets to reduce debt.
Historically, the main source of funding has come from internally generated funds. As such, drug
development investments have been financed by positive cash inflows - even resulting in positive
pre-dividend cashflows.
Any future determination on the group’s dividend policy and the declaration of any dividends
will be made at the discretion of the Board of Directors and will depend on a number of factors,
including the group’s results of operations, financial condition, future prospects, contractual
restrictions, restrictions imposed by applicable law and other factors the Board of Directors deems
relevant.
The Group has a track record of strong revenue growth, whilst maintaining high profitability and
strong cash flow generation. The R&D Services and Diagnostics segment is highly profitable and
the group’s strategy of early partnering and out-licensing has contributed to the group’s goal of
achieving low capital expenditure.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
66
Notes to the consolidated financial statements
Transactions with related parties
2024 2023
TDKK TDKK
The following transactions occurred
with related parties:
Symic OA ApS (Sister company)
Balance sheet
Receivables from related parties - 2,859
Terms and conditions
The receivable from Symic is a result of lab work performed by Nordic Bioscience on behalf of
Symic. The recivable is expected be settled by a significant tax asset in Symic through the joint
taxation. The receivable from Symic carry no interest and has no defined due date.
Expected credit loss regarding receivables from other related parties is considered immaterial.
21. Related party transactions
The group is controlled by the following entity:
Ownership interests
Name of entity Type Place of business 2024 2023
Romarine ApS Ultimate
parent company
Vedbæk,
Denmark 74% 74%
Nordic Life Science Consulting ApS Principal
shareholder
København Ø,
Denmark 10% 10%
KKR Precision Aggregator L.P. Principal
shareholder
Toronto,
Canada 10% 10%
Information about remuneration to key management personnel has been disclosed in note 6.
Interests in subsidiaries are set out in note 23.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
67
Notes to the consolidated financial statements
23. Interests in other entities
The group’s principal subsidiaries at year end are set out below. Unless otherwise stated, they
have share capital consisting solely of ordinary shares that are held directly by the group, and the
proportion of ownership interests held equals the voting rights held by the group. The country of
incorporation or registration is also their principal place of business.
Ownership interests held
by the group
Name of entity Place of business 2024 2023
Nordic Bioscience A/S Herlev, DK 100% 100%
KeyBioscience AG Lugano, CH 100% 100%
24. Subsequent events
No other material subsequent events have occurred after 31 December 2024.
22. Fee to auditors appointed at the general meeting
2024 2023
TDKK TDKK
PwC
Audit fee 999 659
Other assurance services 132 113
Tax advisory service 628 1,287
Other services 2,611 25
4,370 2,084
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
68
Notes to the consolidated financial statements
25. First time adoption of IFRS
The financial statements for the year ended 31 December 2024 are the first that the group has
prepared in accordance with IFRS. For periods up to and including the year ended 31 December
2023 the group prepared its financial statements in accordance with The Danish Financial State-
ments Act (’Danish GAAP’)
The group has prepared financial statements that comply with IFRS applicable as at 31 December
2024, together with the comparative period information for the year ended 31 December 2023.
In preparing these financial statements, the group’s opening statement of financial position was
prepared as at 1 January 2023 (date of transition to IFRS).
The disclosures required by IFRS 1 First-time Adoption of IFRS explaining the principal adjustments
made by the group in restating Danish GAAP financial statements are provided below.
Explanation of principal adjustments in restating Danish GAAP financial statements to IFRS
The group have under The Danish Financial Statements Act (’Danish GAAP’) applied IFRS 15 -
Revenue from contracts with customers and IFRS 16 - Leases as basis for interpreting of The Danish
Financial Statements Act (’Danish GAAP’) . Consequently, no principal adjustments on assets,
liabilities, equity, comprehensive income or cash flows have been identified in connection with the
first-time adoption of IFRS.
Exemptions applied
IFRS 1 allows first-time adopters certain exemptions from the retrospective application of certain
requirements under IFRS. The group has applied the following exemptions:
- Revenue: A first-time adopter is not required to restate contracts that were completed before the
earliest period presented. A completed contract is a contract for which the entity has transferred
all of the goods or services identified in accordance with Danish GAAP.
- Foreign exchange differences: Exchange differences on translation of foreign operations are
deemed to be zero as at 1 January 2023.
Financial statements – Consolidated financial statements
Nordic Bioscience Holding A/S Annual Report 2024
69
Contents of the Parent company
financial statements
Note 1 Summary of material accounting policies 75
Note 2 Staff costs 77
Note 3 Financial income and expenses 77
Note 4 Income tax expense 78
Note 5 Profit allocation 78
Note 6 Investments in subsidiaries 78
Note 7 Share capital 79
Note 8 Contingent assets, liabilities and other financial obligations 79
Note 9 Related parties 79
Note 10 Subsequent events 79
Income statement 71
Balance sheet 72
Statement of changes in equity 73
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
70
Income statement
for the year ended 31 December 2024
Note 2024 2023
TDKK TDKK
Gross profit (loss) - -
Administrative costs 2 -3,181 -906
Operating profit (loss) before financial income and expenses -3,181 -906
Income from investments in subsidiaries 6 187,499 -15,122
Financial income 3 62 -
Financial expenses 3 -4,351 -13,237
Profit (loss) before tax 180,029 -29,265
Tax on profit/loss for the year 4 -9,216 41,578
Net profit (loss) for the year 5 170,813 12,313
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
71
Balance sheet
as at 31 December 2024
Assets
Note 2024 2023
TDKK TDKK
Non-current assets
Deferred tax 67,777 42,000
Investments in subsidiaries 6 279,118 115,344
Total non-current assets 346,895 157,344
Current assets
Corporation tax - 16,168
Corporation tax receivable from group enterprises - 1,676
Cash and cash equivalents 897 10,332
Total current assets 897 28,175
Total assets 347,792 185,519
Liabilities and equity
Note 2024 2023
TDKK TDKK
Equity
Share capital 7 10,616 10,616
Retained earnings 333 33,455
Proposed dividend 220,000 -
Total equity 230,949 44,071
Current liabilities
Payables to group enterprises 9 80,861 136,051
Company tax 34,993 -
Other payables 989 5,397
Total current liabilities 116,843 141,448
Total liabilities 116,843 141,448
Total liabilities and equity 347,792 185,519
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
72
Statement of changes in equity
for the year ended 31 December 2024
Parent company
Share
capital
Retained
earnings
Proposed
dividend for
the financial
year
Total
equity
TDKK TDKK TDKK TDKK
As at 1 January 2024 10,616 33,455 - 44,071
Ordinary dividend paid - - - -
Exchange adjustments relating to foreign entities - - - -
Other equity movements - -43 - -43
Share-based payments - 16,108 - 16,108
Proposed dividend for the financial year - -220,000 220,000 -
Net profit/loss for the year - 170,813 - 170,813
As at 31 December 2024 10,616 333 220,000 230,949
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
73
Statement of changes in equity
for the year ended 31 December 2023
Parent company
Share
capital
Retained
earnings
Proposed
dividend for
the financial
year
Total
equity
TDKK TDKK TDKK TDKK
As at 1 January 2023 10,616 11,815 40,000 62,431
Correction prior years -793 -793
Corrected equity at 1 January 2023 11,022 61,638
Ordinary dividend paid - - -40,000 -40,000
Exchange adjustments relating to foreign entities - 4,293 - 4,293
Other equity movements - 5,827 - 5,827
Net profit/loss for the year - 12,313 - 12,313
As at 31 December 2023 10,616 33,455 - 44,071
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
74
Notes to the parent company financial statements
The Annual Report of Nordic Bioscience Holding A/S for 2024 has been prepared in accordance
with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises
of reporting class C.
The accounting policies applied remain unchanged from last year.
Adjustment to prior years
See Consolidated Financial Statements accounting policy regarding correction to prior years.
Cash flow statement
With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow state-
ment included in the consolidated financial statements of , the Company has not prepared a cash
flow statement.
Recognition and measurement
Assets are recognised in the balance sheet when it is probable as a result of a prior event that
future economic benefits will flow to the Entity, and the value of the asset can be measured reliably
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obliga-
tion as a result of a prior event, and it is probable that future economic benefits will flow out of the
Entity, and the value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to
initial recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and
that confirm or invalidate affairs and conditions existing at the balance sheet date are considered
at recognition and measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the
amounts attributable to this financial year.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using
the currency of the primary economic environment in which the entity operates (‘the functional
currency’). The consolidated financial statements are presented in Danish Kroner (DKK).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement
of such transactions, and from the translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates, are generally recognised in profit or loss.
Income statement
Administrative costs
Administrative expenses comprise expenses incurred for the group’s administrative functions,
including wages and salaries for administrative staff.
Income from investments in subsidiaries
Income from investments in group enterprises comprises the pro rata share of the individual
enterprises’ profit/loss after full elimination of intra-group profits or losses.
Financial income and expenses
Financial income and expenses comprise interest income and expenses on financial assets and
liabilities at amortised cost calculated using the effective interest method and exchange rate
ajustments.
Tax on profit/loss for the year
Tax for the year, which consists of current tax for the year and changes in deferred tax, is recog-
nised in the income statement by the portion attributable to the profit for the year and recognised
directly in equity by the portion attributable to entries directly in equity.
1. Summary of material accounting policies
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
75
Notes to the parent company financial statements
1. Summary of material accounting policies (continued)
Balance sheet
Investments in subsidiaries
Investments in group enterprises are recognised and measured in the parent financial statements
according to the equity method. This means that investments are measured at the pro rata share
of the enterprises’ equity value.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these
enterprises are written down to net realisable value based on a specific assessment. If the Parent
has a legalor constructive obligation to cover the liabilities of the relevant enterprise, and it is
probable that suchobligation will involve a loss, a provision is recognised that is measured at
present value of the costsnecessary to settle the obligations at the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred
toreserve for net revaluation according to the equity method in equity.
Investments in group enterprises are written down to the lower of recoverable amount and
carrying amount.
Tax payable or receivable
Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on
this year's taxable income, adjusted for prepaid tax.
Joint taxation contributions payable or receivable
Current joint taxation contributions payable or receivable are recognised in the balance sheet,
stated as tax computed on this year's taxable income, adjusted for prepaid tax. For tax losses, joint
taxation contributions receivable are only recognised if such losses are expected to be used under
the joint taxation arrangement.
Adjustment to prior years
See Consolidated Financial Statements accounting policy regarding adjustments to prior years.
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and bank deposits.
Other payables
Other payables are measured at amortised cost, which corresponds to nominal value.
Equity
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from the proceeds.
Dividends
Dividend is recognised as a liability at the time of adoption at the general meeting. Proposed
dividend for the financial year is disclosed as a separate item in equity. Extraordinary dividend
adopted in the financial year is recognised directly in equity when distributed and disclosed as a
separate item in Management's proposal for distribution of profit/loss.
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
76
Notes to the parent company financial statements
2. Staff costs
2024 2023
TDKK TDKK
Wages and salaries 1,015 840
Pension cost - -
Other social security costs - -
Share-based payments* - -
Other staff costs - -
1,015 840
Including remuneration to the Executive Board and Board of Directors 1,015 840
Average number of employees 1 1
Wages and salaries, pension cost, other social security costs,
share-based payments and other staff costs are recognised in
following lines:
Production costs - -
Distribution costs - -
Administrative costs 1,015 840
1,015 840
3. Financial income and expenses
2024 2023
TDKK TDKK
Financial income
Other financial income 62 -
Total financial income 62 -
Financial expenses
Interest paid to group enterprises -4,311 -9,958
Other financial expenses -40 -3,279
Total financial expenses -4,351 -13,237
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
77
Notes to the parent company financial statements
6. Investments in subsidiaries
2024 2023
TDKK TDKK
Costs
Cost at 1 January 275,436 275,436
Transfers for the year - -
Transfers for the year 275,436 275,436
Value adjustments at 1 January -160,092 -105,090
Exchange adjustment -44 4,293
Net profit/loss for the year 187,499 -15,122
Dividend to the Parent Company -40,000 -50,000
Other equity movements, net 16,319 5,827
Transfers for the year - -
Value adjustments at 31 December 3,682 -160,092
Carrying amount 31 December 279,118 115,344
Ownership interests held
by the group
Name of entity Place of business 2024 2023
Nordic Bioscience A/S KeyBioscience AG 100% 100%
KeyBioscience AG Lugano, CH 100% 100%
4. Income tax expense
2024 2023
TDKK TDKK
Income tax for the year
Current tax for the year -34,993 1,676
Change in deferred tax 25,777 39,902
Tax on profit for the year -9,216 41,578
Income tax expense -9,216 41,578
5. Profit allocation
2024 2023
TDKK TDKK
Proposed dividend for the year - -
Retained earnings 170,813 12,313
Allocated 170,813 12,313
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
78
Notes to the parent company financial statements
9. Related parties
The Company has chosen only to disclose transactions which have not been made on an arm's
length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act.
No such transactions were carried out in the financial year.
Consolidated Financial Statements
The Company is included in the Group Annual Report of the Parent Company of the largest and
smallest group:
Name Place of registered office
Romarine ApS Vedbæk, Denmark
The Group Annual Report of Romarine ApS may be obtained at the following address:
CVR No: 37126306
10. Subsequent events
No other material subsequent events have occurred after 31 December 2024.
7. Share capital
2024 2023
Number of
shares in
thousands
Nominal
value
Number of
shares in
thousands
Nominal
value
TDKK TDKK
The share capital comprise:
A shares (fully paid) 955,475 9,555 955,475 9,555
B shares (fully paid) 106,164 1,062 106,164 1,062
1,061,638 10,616 1,061,638 10,616
8. Contingent assets, liabilities and other financial obligations
There are no security and contingent liabilities at 31 December 2024.
Financial statements – Parent company financial statements
Nordic Bioscience Holding A/S Annual Report 2024
79
Executive Board
Board of Directors
Signatures and statements
Nordic Bioscience Holding A/S Annual Report 2024
81
Signatures and statements
Nordic Bioscience Holding A/S Annual Report 2024
82
CVR No 33 7 7 12 31
mne28705 mne44112
Signatures and statements
Nordic Bioscience Holding A/S Annual Report 2024
83
The Company Nordic Bioscience Holding A/S
CVR No: 3 0 5 1 12 71
Financial period: 1 January - 31 December Incorporated: 29 June 2007
Municipality of reg. office: Herlev
Board of Directors Håkan Björklund
Steffen Kragh
Claus Henrik Christiansen
Henrik Bernt Sanders
Kugan Sathiyanandarajah
Executive Board Morten Asser Karsdal
Auditors Pricewa terhouseCoopers Statsaut oriseret Revisionspartnerselskab
Company information
Company information
Nordic Bioscience Holding A/S Annual Report 2024
84
Nordic Bioscience A/S
Herlev Hovedgade 205
2730 Herlev
Denmark
+45 4452 5252
nordicbioscience.com
info@nordicbio.com
CVR-nr.: DK30799968
Design and production: Noted