Royalty expenses in H1 was DKK 0.1 million (15.6). The royalty expenses for the
same period in 2012 related to the milestone payments received from Sanofi,
Helsinn Healthcare and former partner Action Pharma.
Research and development expenses
Research and development expenses amounted to DKK 95.8 million (92.3). R&D
expenses relating to ZP2929 and the research collaboration with Boehringer
Ingelheim have been refunded and recorded as other operating income, see below.
The increase in R&D expenses relates to higher personnel costs and an increase
in R&D activities.
Administrative expenses in H1 amounted to DKK 16.0 million (10.7). The increase
is mainly related to an increase in legal and personnel costs.
Other operating income
Other operating income in H1 amounted to DKK 5.6 million (20.2). Other
operating income mainly consists of funding of development costs for ZP2929 and
research costs under the two-year collaboration with Boehringer Ingelheim,
which has ended in July 2013.
The operating result for H1 was DKK -105.2 million (87.8).
Net financial items
Net financial items consist of interest income, banking fees and regulations
based on changes in exchange rates. Net financial items for H1 of 2013 amounted
to DKK 0.9 million (1.6).
Result from ordinary activities before tax
Result from ordinary activities before tax in H1 2013 was DKK -104.3 million
Tax on ordinary activities
With a negative result from ordinary activities, no tax has been recorded for
No deferred tax asset has been recognized in the statement of financial
position due to uncertainty as to whether tax losses can be utilized.
Net result for H1 2013 amounted to DKK -104.3 million (89.4).
Equity stood at DKK 396.0 million (536.8) at the end of the period,
corresponding to an equity ratio of 92 % (96).
Investments in new laboratory equipment for the period amounted to DKK 1.6
The cash flow from operating activities amounted to DKK -80.3 million (102.4).
Cash flow from investing activities was DKK 46.7 million (-54.1) of which DKK
45.1 million (-49.9) relates to net sales of securities. The total cash flow
for H1 of 2013 amounted to DKK -33.6 million (48.3).
Cash and cash equivalents
As of 30 June 2013, Zealand had cash and cash equivalents including securities
of DKK 403.6 million (525.0).
Financial outlook for 2013 retained
Zealand retains expectation of further revenue from Lyxumia® sales royalties in
2013 beyond what has been reported for the first six months period, as well as
from potential success based milestone payments from collaboration partners. As
Sanofi has given no guidance on expected sales of Lyxumia®, and with the timing
of potential milestone payments largely outside Zealand’s control, no more
specific revenue guidance can be provided at this point in time.
Net operating expenses are still expected at a range of DKK 210-240 (EUR 28-32)
million for the full year.
During the period Zealand’s fully owned subsidiary Betacure Holding A/S has
been merged with Zealand Pharma A/S. The effective date for the merger is
January 1st 2013. Betacure has for several years had no activities and the
reason for the merger is to reduce administration and costs.