Annual Report
2024
Changing lives with next-generation
peptide therapeutics
Zealand Pharma A/S
Sydmarken 11, DK-2860 Søborg
Company Reg. No. 20045078
Peter works in
Pharmaceutical Development
Follow us
Contents
3
The big picture
4
Letter from the CEO and the Chair
7
Our purpose
8
Zealand Pharma at a glance
9
2024 achievements
10
Financial highlights and key figures
11
2025 outlook and objectives
12
Our business
13
25+ years of peptide expertise
15
R&D pipeline
16
Obesity
20
Rare diseases
23
Inflammation
25
Financial review
117
Consolidated financial statements
173
Financial statements
for the parent company
188
Reports
192
Other information
27
Corporate Governance
28
Introduction
29
Corporate Governance structure
35
Board of Directors and Corporate Management
40
Internal controls and risk management
42
Risk and risk mitigation
45
Shareholder information
47
Annex: Recommendations on
Corporate Governance
59
Sustainability Report
60
Letter from the Corporate Management team
63
General information
76
Environment
83
Social
102
Governance
108
ESG data and accounting policies
Management Review
Financial statements
Disclaimer
While Zealand Pharma is not legally required to report according
to the Corporate Sustainability Reporting Directive (CSRD) and the
European Sustainability Reporting Standards (ESRS) until the financial
year of 2025, this report will follow the structure and include key
dimensions of the CSRD and ESRS. Thus, it is to be considered as a
voluntary reporting, not a legally required “Sustainability statement”.
Other supplementary report 2024:
Remuneration Report 2024
READ MORE
Zealand Pharma
Annual Report 2024
2
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
4
Letter from the CEO and the Chair
7
Our purpose
8
Zealand Pharma at a glance
9
2024 achievements
10
Financial highlights and key figures
11
2025 outlook and objectives
The big
picture
Zealand Pharma
Annual Report 2024
3
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
2024 was a transformational year
for Zealand Pharma. We advanced
our clinical-stage obesity portfolio,
raised significant capital to further
invest in our pipeline, and prepared
the organization for the next phase
of growth.
Bringing this momentum into 2025,
we will continue to drive our clinical
programs forward with a strong
focus on our wholly-owned obesity
assets, while building the next wave
of innovative peptide therapies.
LETTER FROM THE
CEO AND THE CHAIR
A year of
transformation
zealandpharma.com/about-us/
READ MORE
4
Contents
Our business
Sustainability
Corporate Governance
Financial statements
The big picture
Zealand Pharma
Annual Report 2024
Becoming a key player in the management of obesity
In 2024, positive clinical data across our portfolio of
differentiated product candidates targeting obesity and
obesity-related comorbidities have further strengthened our
confidence in the potential of these product candidates to
represent future key solutions to one of the greatest health-
care challenges of our time: the obesity pandemic.
"Following clinical data reported in 2024,
we believe our long-acting amylin analog,
petrelintide, shows potential to be best-in-class.
We are now investigating petrelintide over 42
weeks in a large, comprehensive Phase 2b trial
and look forward to expanding the development
program with an additional Phase 2b trial
planned for initiation in the first half of 2025.”
Petrelintide – best-in-class long-acting amylin analog
We are developing petrelintide, our long-acting amylin analog,
as an alternative to GLP-1 receptor agonists. We believe
petrelintide holds the promise to become the future founda-
tional therapy for weight management. Used as monotherapy,
long-acting amylin analogs have the potential to achieve
weight loss on par with GLP-1 receptor agonists, but with a
significantly improved tolerability profile, thereby offering
a better and simpler experience for both patients and
prescribers.
In June 2024, we reported extremely encouraging topline
results from Part 2 of our multiple ascending dose (MAD) trial
with petrelintide, demonstrating an average weight loss of up
to 8.6% at week 16. Importantly, petrelintide was very well-tol-
erated in this trial, with all gastrointestinal events being mild
except for two moderate events reported by a single partici-
pant. We have subsequently presented the detailed efficacy
and tolerability data at the ObesityWeek scientific congress in
November 2024.
Based on clinical data with both petrelintide and other amylin
analogs reported to date, we believe that petrelintide holds
best-in-class potential. In late 2024, we initiated a large,
comprehensive Phase 2b trial with petrelintide in participants
with overweight or obesity. This marks an important milestone
for Zealand Pharma, and we look forward to expanding the
development program with a Phase 2b trial of petrelintide
in people with overweight or obesity with type 2 diabetes,
planned for initiation in the first half of 2025.
Dapiglutide – first-in-class GLP-1/GLP-2 receptor dual agonist
Dapiglutide adds GLP-2 pharmacology to a potent GLP-1
receptor agonist. It is designed to improve gut integrity and
reduce low-grade inflammation that is associated with obesity
which can result in several comorbidities, including cardi-
ovascular disease, liver disease, and neuro-inflammation.
Dapiglutide is currently being evaluated in a Phase 1b dose-
titration trial. Topline results from the first part of this trial,
announced in September 2024, support clinical advancement
of dapiglutide. We look forward to reporting data from the
second part of the trial in 2025 which will provide insights into
the safety and efficacy of higher doses of dapiglutide. In 2025,
we also look forward to initiating a Phase 2b trial with dapiglu-
tide in people with overweight or obesity.
Survodutide – best-in-class glucagon/
GLP-1 receptor dual agonist
In 2024, our partner Boehringer Ingelheim reported posi-
tive data from the Phase 2 trial of survodutide, a glucagon/
GLP-1 receptor dual agonist, in people living with metabolic
dysfunction-associated steatohepatitis, or MASH, one of the
most prevalent and serious obesity-related comorbidities.
After 48 weeks, up to 64.5% of participants with moderate
or advanced fibrosis achieved an improvement in fibrosis
without worsening of MASH. We view these results as ground-
breaking and as evidence of survodutide's clear differentia-
tion from other GLP-1-based therapies. Boehringer has subse-
quently initiated a global Phase 3 program with survodutide
in people living with MASH and liver fibrosis, LIVERAGE, which
includes two large global registrational trials.
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
5
Additionally, Boehringer has completed participant enrollment
in SYNCHRONIZE™-1 and SYNCHRONIZE™-2, part of the global
Phase 3 program for survodutide in people with overweight or
obesity. If successful, Boehringer and Zealand Pharma could
be third to market in the new era of weight loss therapies.
Committed to bringing our rare disease therapies to patients
In late 2024, we received a Complete Response Letter from
the FDA for the New Drug Application (NDA) for glepaglutide,
our long-acting GLP-2 analog, for the treatment of short bowel
syndrome (SBS). While we are disappointed in the regula-
tory outcome, we remain firm in our belief that glepaglutide
proceed with our plans to pursue marketing authorization in
Europe.
For dasiglucagon in congenital hyperinsulinism (CHI), we are
ready to resubmit the NDA for three weeks use to the FDA as
soon as our third-party manufacturing facility has received
an inspection classification upgrade. Subsequently, we also
expect to submit the required and detailed analyses from
existing continuous glucose monitoring datasets to support
use of dasiglucagon beyond three weeks. In parallel, we are
preparing to bring dasiglucagon to patients living with this
devastating disease as soon as possible pending approval.
Adam Steensberg
President and
Chief Executive Officer
Martin Nicklasson
Chair of the Board
of Directors
small molecules and antibodies. In late 2024, we initiated the
first-in-human clinical trial with our Kv1.3 ion channel blocker,
ZP9830, which we believe holds the potential to treat a broad
range of chronic inflammatory diseases.
Prepared for the next phase of growth
During 2024, we substantially strengthened our financial
position by raising gross proceeds of approximately DKK 8.5
billion (USD ~1.2 billion) through two capital raises, including
the largest ever European biotech offering with development
funding as the primary use of proceeds. Our financial postion
enables significant investments in our R&D efforts and the
strengthening of our organizational capabilities in preparation
for the next phase of growth for Zealand Pharma. Key
corporate developments in 2024 included important additions
to both the Board of Directors and Corporate Management.
We thank our shareholders for their continued trust and confi-
dence in Zealand Pharma’s vision and strategy. We would also
like to express our appreciation to our dedicated colleagues,
whose commitment and hard work drive our progress every
day and the patients and caregivers who have participated in
our clinical trials, playing an essential role in advancing our
innovations.
$1.2 billion
Proceeds from share issuance
In June, we raised DKK 7 billion (USD 1 billion) from an
upsized equity offering of 8,350,000 new shares and in
January, we raised DKK 1.45 billion (USD 214 million) from a
private placement of 3,761,470 new shares.
provides a significant advance in GLP-2-based therapy options
for SBS patients who are dependent on parenteral support.
We will continue the dialogue with the FDA, so that we can
bring this therapy to patients in the U.S. as well as expect to
Alongside these regulatory and pre-commercial activities, we
will continue dialogues with potential commercial partners
for both our rare disease assets so that these treatments may
reach as many patients as possible.
Building the next wave of innovative peptide therapies
We believe that peptide medicines represent an opportu-
nity for innovation in the treatment of chronic inflammatory
diseases and are progressing programs that represent
high-profile targets shown to be difficult to address with
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
6
Our ambition
is to be the world's best peptide drug
discovery and development company
Changing lives
with next-generation
peptide therapeutics
OUR PURPOSE
Crosby is a 10-year old
boy living with congenital
hyperinsulinism
The big picture
Contents
Our business
Sustainability
Corporate Governance
Contents
Financial statements
Corporate governance
Our business
Sustainability
7
Zealand Pharma
Annual Report 2024
4
3
2
1
355
Employees
as of December 31, 2024, with 84% in research
and development and related functions.
4
3
26 years
is to excel within peptide R&D and pursue global devel-
opment and commercialization partnerships to bring
new medicines to patients with unmet needs.
Our
strategy
of expertise in peptide R&D with a validated platform
that has delivered two drugs to market and a rich
pipeline of clinical and pre-clinical programs.
Zealand Pharma at a glance
Zealand Pharma A/S was founded in 1998 and is a biotechnology company focused
on the discovery, design, and development of innovative peptide-based medicines.
Our four key strategic pillars include
becoming a key player in the management of obesity
delivering rare disease approvals and launch
execution
creating a leading peptide discovery and develop-
ment platform
growing our organization, culture, and how we work
Focus areas
Our innovative pipeline candidates target three
therapeutic focus areas; obesity and obesity-related
comorbidities, rare diseases, and chronic inflammation.
zealandpharma.com/about-us/
READ MORE
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
8
2024 achievements
2024 has been a transformational year for Zealand Pharma,
delivering on our important strategic objectives and achieving
significant pipeline progress.
Advanced obesity portfolio
Petrelintide
ș Reported positive topline data
with petrelintide from the 16-week
Phase 1b trial and presented
detailed data at ObesityWeek
ș Initiated a large, comprehensive
Phase 2b trial in people with over-
weight or obesity
Dapiglutide
ș Reported positive topline data
with dapiglutide from the 13-week
Phase 1b trial
ș Expanded the Phase 1b trial to
evaluate higher doses of dapiglu-
tide over longer treatment period
Survodutide
ș Boehringer Ingelheim reported
positive topline data with
survodutide from the Phase 2 trial
in MASH and presented detailed
data at the EASL Congress 2024
ș Boehringer Ingelheim initiated
the LIVERAGE™ Phase 3 program
with survodutide in MASH and
received Breakthrough Therapy
Designation from the US FDA
ș Boehringer Ingelheim completed
participant enrollment for
SYNCHRONIZE™-1 and
SYNCHRONIZE™-2, part of the
Phase 3 program for survodutide in
people with overweight or obesity
Strengthened
financial position
ș Completed one of the largest
capital raises in Europe in
June, raising DKK 7 billion
(USD 1 billion) through an
upsized equity offering
ș Raised DKK 1.45 billion
(USD 214 million) in January
through a private placement
of new ordinary shares to
two reputable investors
ș Strengthened financial posi-
tion enabled further invest-
ments in R&D to accelerate
and expand the development
of our differentiated obesity
candidates
Other significant
activities
ș Received marketing author-
ization in the EU from the
European Commission for
Zegalogue® (dasiglucagon
injection) for the treatment of
severe hypoglycemia
ș Launched our refined sustain-
ability strategy, significantly
increasing our sustainability
ambitions
ș Developed a Climate Change
Transition Plan, outlining
ambitious activities and
targets for climate change
mitigation
Initiated first-in-
human trial with
inflammation
asset
ș Initiated single ascending
dose clinical trial with ZP9830
(Kv1.3 ion channel blocker)
Strengthened
organization
ș Prepared for the next phase
of growth, including additions
to the Board and Management
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
9
Financial highlights and key figures
DKK thousand
2024
2023
2022
2021
2020
Income statement
Revenue
62,691
342,788
103,986
108,546
192,001
Royalty expenses
-
-9,138
-
-10,970
-
Cost of goods sold
-7,874
-10,036
-
-
-
Gross profit
54,817
323,614
103,986
97,576
192,001
Research and development
expenses
-919,866
-684,902
-614,044
-581,511
-595,847
Sales and marketing expenses
-88,115
-30,627
-32,298
-62,600
-20,795
General and administrative
expenses
-315,907
-185,302
-237,210
-235,609
-201,594
Other operating items
-3,136
4,979
-57,587
-2,173
-
Net operating expenses
-1,327,024
-895,852
-941,139
-881,893
-818,838
Operating result
-1,272,207
-572,238
-837,153
-784,317
-626,235
Net financial items
188,762
-136,627
-134,888
25,430
-47,292
Result before tax
-1,083,445
-708,865
-972,041
-754,887
-673,527
Corporate tax
4,617
5,126
6,431
3,949
4,814
Net result for the year from
continuing operations
-1,078,828
-703,739
-965,610
-754,938
-668,713
Net result for the year from
discontinued operations
-
-
-236,525
-263,211
-178,016
Net result for the year
-1,078,828
-703,739
-1,202,135
-1,018,149
-846,729
Loss per share from continuing
operations, basic/diluted (DKK)
-16.24
-12.44
-20.90
-17.61
-17.43
Loss per share, basic/diluted (DKK)
-16.24
-12.44
-26.02
-23.75
-22.07
DKK thousand
2024
2023
2022
2021
2020
Statement of financial position
Cash and cash equivalents
480,303
449,311
1,069,234
1,129,103
960,221
Marketable securities
8,541,713
1,183,746
108,611
299,042
297,345
Cash, cash equivalents, and marketable
securities
9,022,016
1,633,057
1,177,845
1,428,145
1,257,566
Total assets
9,505,600
1,979,993
1,539,806
2,067,629
1,761,949
Total shareholders' equity
8,616,742
1,592,839
815,911
927,803
1,229,311
Cash flow
Cash used in operating activities
-930,816
-425,668
-942,311
-1,211,971
-688,716
Cash (used in)/provided by investing
activities
-7,332,915
-1,094,033
281,259
-18,121
-196,807
Cash provided by financing activities
8,288,491
907,014
587,500
1,332,751
760,941
Purchase of intangible assets
-3,095
-12,508
-
-
-
Purchase of property, plant, and
equipment
-10,053
-11,241
-11,710
-22,133
-25,044
Free cash flow
-940,869
-436,909
-954,021
-1,234,104
-713,760
Other
Undrawn borrowing facilities (note 4.2)
-
722,645
-
-
-
Share price at December 31 (DKK)
715.5
373.2
201.4
145.1
220.6
Number of shares ('000 shares)
71,024
58,751
51,702
43,634
39,800
Market capitalization (MDKK)
50,550
21,787
9,305
6,220
8,464
Equity ratio (%)
91%
80%
53%
45%
70%
Equity per share (DKK)
121.96
27.28
17.66
21.26
32.04
Average number of full time employees
289
235
247
346
297
Number of full-time employees at the
end of the year
335
253
196
355
329
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
10
2025 outlook and objectives
In 2025, we have a strong focus on advancing our differentiated mid- to late-stage obesity programs.
2025 objectives
Advance obesity
portfolio
Petrelintide
ș Complete enrollment of Phase 2b trial in people
with overweight or obesity without type 2
diabetes (ZUPREME-1)
ș Initiate Phase 2b trial in people with overweight
or obesity with type 2 diabetes (ZUPREME-2)
ș Initiate Phase 1b combination trial with a GLP-1
receptor agonist
Dapiglutide
ș Report topline data from Part 2 of Phase 1b trial
ș Present detailed results from Phase 1b trial
ș Initiate Phase 2b trial in people with overweight
or obesity
Survodutide
ș Primary completion of Phase 3 trials in obesity
(Boehringer Ingelheim)
ș Progress Phase 3 trials in people with MASH and
fibrosis (Boehringer Ingelheim)
Progress rare disease
assets
Dasiglucagon for congenital
hyperinsulinism
ș Gain U.S. regulatory
approval and bring product
to patients
Glepaglutide for short bowel
syndrome
ș Initiate Phase 3 trial to
provide further confirm-
atory evidence for U.S.
resubmission and support
regulatory submissions
outside the U.S. and EU
ș Submit marketing authori-
zation application to EMA
Advance inflammation
portfolio
ș Complete first-in-human
clinical trial with ZP9830
(Kv1.3 ion channel blocker)
ș Initiate first-in-human
clinical trial with ZP10068
(Complement C3 Inhibitor)
Deliver on financial
performance
ș Ensure disciplined financial
management
ș Deliver on the budget and
meet financial guidance
Accelerate
sustainability efforts
ș Further implement sustain-
ability strategy
ș Submit Climate Transition
Plan to Science Based
Targets initiative and
achieve reduction targets
ș Report in line with the
Corporate Sustainability
Reporting Directive (CSRD)
Financial guidance
DKK million
2025 Guidance
2024 Actual
Revenue anticipated from existing and new license
and partnership agreements
No guidance
63
Net operating expenses1
2,000 - 2,500
1,327
1
Net operating expenses consist of R&D, S&M, G&A, and other operating items
Financial guidance based on foreign exchange rates as of February 19, 2025
The big picture
Financial statements
Contents
Our business
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
11
13
25+ years of peptide expertise
15
R&D pipeline
16
Obesity
20
Rare diseases
23
Inflammation
25
Financial review
Our
business
Zealand Pharma
Annual Report 2024
12
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
25+ years of peptide expertise
We have more than 25 years of expertise in discovery, design, and development
of peptide-based medicines. We engineer peptides to enhance biological activity,
extend duration of action, and increase stability to provide innovative and better
treatments for a broad range of diseases.
1998
Foundation
Zealand Pharma is founded by SIP®
inventor Dr. Bjarne Due Larsen and
Lars Hellerung Christiansen
2010
Initial Public Offering
Zealand Pharma’s shares are listed
on Nasdaq OMX Copenhagen
2016
First drug
product approval
by U.S. FDA
Adlyxin (lixisenatide) and
Soliqua (insulin glargine
and lixisenatide), partnered
with Sanofi, are approved
by the U.S. FDA for the
treatment of T2DM in the
United States (approved in
Europe by EMA in 2013)
2023
25-year anniversary
Zealand Pharma celebrates 25th
anniversary with eventful year that
includes significant advancement of
clinical-stage obesity portfolio
2024
New class of obesity
asset enters Phase 2
Zealand Pharma initiates Phase 2
clinical trial of long-acting amylin
analog petrelintide in people
living with overweight or obesity
1999
Invention of lixisenatide
GLP-1 receptor agonist
lixisenatide is invented
2011
Partnership with
Boehringer Ingelheim
Zealand Pharma enters
partnership agreement with
Boehringer Ingelheim to
develop drug candidates for
T2DM and obesity
2021
Second drug product
approval by U.S. FDA
The U.S. FDA approves Zegalogue®
(dasiglucagon) for the treatment of severe
hypoglycemia in people with diabetes
(partnered with Novo Nordisk in 2022)
2023
First obesity asset enters
Phase 3 through partnership
Boehringer Ingelheim advances
survodutide into global Phase 3 clinical
trials in overweight and obesity and
subsequently initiates global Phase 3
program in MASH in 2024
2024
Transformational year
Zealand Pharma substantially
strengthens financial position,
raising ~DKK 8.5 billion (USD 1.2
billion) through two equity raises
and prepares organization for
the next phase of growth
Our journey to become
experts in peptide R&D
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
13
Facts on peptides
Validated peptide platform
Since our foundation in 1998, we have built a unique peptide
platform and design process based on a deep understanding
of peptide chemistry, formulation know-how, and intellectual
property rights combined with advanced computer science.
The success of our peptide discovery and development
platform has been validated by bringing two drug products
to market in collaboration with partners Sanofi and Novo
Nordisk, as well as advancing our novel peptide analogs
currently in clinical development.
What are peptides?
Peptides are composed of amino acids and are produced
by all living organisms, including humans. Many peptides are
hormones that carry information between cells or organs to
perform a wide range of essential functions, such as regu-
lating appetite, blood glucose, or stimulating tissue growth.
Native peptides have powerful biological functions but many
are inherently unstable and short-lived in the bloodstream.
To convert native peptides into effective peptide therapeutics,
these characteristics must be modified, while maintaining or
enhancing the biological activity. This involves modifying the
amino acid sequence of the peptide, usually by substituting
with another amino acid.
We use nature’s own inventions
Through our deep understanding of peptide chemistry and
biology, we focus this substitution process on key amino
acids to remove the weak points that result in poor solu-
bility, stability, or activity. We have successfully applied this
approach to glucagon, amylin, GLP-1, GLP-2, and GIP to create
new drug candidates.
Enhancing the natural property of a peptide or combining
activities of two or more peptides into single peptides can
present new therapeutic opportunities. We use endogenous
human peptides and peptides from animal venoms to develop
new therapeutic candidates. We also manipulate bacteria
to produce peptide libraries, and have the expertise to go
beyond nature's 20 standard amino acids to create unnatural
amino acids. In other words, we can create custom building
blocks, providing virtually limitless possibilities for the devel-
opment of effective peptide therapeutics. We make broad
use of nature’s own inventions in an effort to improve human
health and quality of life.
We continue to optimize our peptide platform through new
technologies and scientific advancements. We also access
cutting-edge technology through research collaborations. Our
R&D capabilities and pre-clinical programs provide opportuni-
ties to further grow our scientific and medical presence.
Key facts
Main role of peptides
Many peptides are hormones that carry
information between cells or organs to
perform a wide range of essential functions.
Native peptides:
Unstable and short-lived
Developing peptide therapeutics involves
modifying native peptides to retain or
enhance biological activity.
Zealand Pharma’s peptide
platform
What are peptides? How does Zealand Pharma
work with peptides to create potentially life-
changing therapies? Watch to learn more
about these powerful molecules
https://vimeo.com/946545618
PLAY VIDEO
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
14
R&D pipeline
Our R&D pipeline of investigational candidates aims to address unmet medical needs across therapeutic areas.
Product Candidate1
Preclinical
Phase 1
Phase 2
Phase 3
Registration
Petrelintide (amylin analog)
Obesity
Dapiglutide (GLP-1R/GLP-2R dual agonist)
Obesity
ZP6590 (GIP receptor agonist)
Obesity
Survodutide (GCGR/GLP-1R dual agonist)2
Obesity
Survodutide (GCGR/GLP-1R dual agonist)2
MASH
Dasiglucagon: continuous subcutaneous infusion
Congenital Hyperinsulinism
Glepaglutide (GLP-2 analog)
Short Bowel Syndrome
ZP9830 (Kv1.3 ion channel blocker)
Undisclosed
ZP10068 (complement C3 inhibitor)
Undisclosed
1
Investigational compounds whose safety and efficacy have not been evaluated or approved by the FDA or any other regulatory authority.
2
Survodutide is licensed to Boehringer Ingelheim from Zealand Pharma, with Boehringer solely responsible for development and commercialization globally (subject to Zealand Pharma's co-promotion rights in the Nordic countries): EUR 315 million
outstanding potential development, regulatory, and commercial milestones + high single to low double digit % royalties on global sales.
Rare
diseases
Obesity
Inflammation
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
15
2-11
years
~33%
~22%
~40%
~44%
~42%
12-19
years
20-39
years
40-59
years
60+
years
OBESITY
Facing one of the greatest
healthcare challenges of our time
300,000 years
with humans beings on earth
maintaining a relatively stable BMI
~5 million
deaths globally ascribed to obesity every single year1
50 years
with a substantial increase in global prevalence
of obesity from ~10% to ~40-50%1
Key unmet medical needs
The obesity pandemic represents one of the
greatest healthcare challenges of our time,
profoundly impacting public health. Obesity is
a complex disease associated with numerous
complications and comorbidities, adversely
affecting overall health and multiple organ
systems2. For many years, the weight-loss medi-
cations available have had limited efficacy and/
or, for many, been associated with considerable
side effects. Today, two once-weekly GLP-1RA-
based therapies with better efficacy have been
approved for weight management. Nevertheless,
the treatment rate today is approximately 2%3.
There remains a substantial unmet medical need
for more and better treatment options for the
very heterogeneous population suffering from
overweight and obesity. New innovations should
include treatments based on emerging modalities
with potential to deliver similar efficacy as the
currently approved treatments but with better
tolerability, treatments targeting fat-specific
weight loss, or treatments with an even better
effect on obesity-related comorbidities.
Prevalence of obesity in
the U.S. by age group2
Overweight and obesity are associated with more than 220 complications and comorbidities, including
cardiovascular disease, liver disease, type 2 diabetes, kidney disease, and neuro-inflammation.
1
World Obesity Atlas 2024
2
U.S. Centers for Disease Control and Prevention. National Health Statistics Reports, no. 158. June 2021
3
American Medical Association 2024, AMA’s Latest Research, Health Tips & News About Obesity | American Medical Association
4
Almandoz et al. (2024) Nutritional considerations with antiobesity medications, Obesity (Silver Spring), 32(9): 1613-1631
zealandpharma.com/disease-areas/obesity/
READ MORE
Zealand Pharma
Annual Report 2024
16
Contents
The big picture
Sustainability
Corporate Governance
Financial statements
Our business
Pre-clinical
Registration
Phase 2b
OBESITY
A next-generation weight-loss
therapy, representing an alternative
to GLP-1 receptor agonists
Petrelintide is a long-acting amylin analog suit-
able for once-weekly subcutaneous admin-
istration. It has been designed with chemical
and physical stability with no fibrillation
around neutral pH, allowing for co-formulation
and co-administration with other peptides.
Petrelintide holds potential as a next-
generation, best-in-class alternative to
incretin-based therapies and as a future
foundational therapy for weight manage-
ment. It targets weight loss comparable with
GLP-1-based therapies but with significantly
less gastrointestinal side effects, both in
frequency and severity, for a better tolera-
bility profile and patient experience.
Rather than suppressing appetite, amylin
analogs have been shown to restore
sensitivity to the hormone leptin, which is a
strong satiety signal1,2. Pre-clinical data with
petrelintide and other long-acting amylin
analogs have shown potential to deliver high-
quality weight loss by preserving lean muscle
mass.
Development status
Zealand Pharma presented detailed
results from the Phase 1b 16-week multiple
ascending dose clinical trial at ObesityWeek
2024. The results showed mean body weight
reductions after 16 weeks of 4.8%, 8.6%,
and 8.3% for the three petrelintide-treated
groups, versus 1.7% for the pooled placebo
Petrelintide
group. These weight loss results were
achieved despite a predominantly male study
population with relatively low BMI at baseline.
Petrelintide was well tolerated, with no serious
or severe adverse events. All gastrointestinal
adverse events were mild, except for two
moderate events (nausea and vomiting) reported
by one participant who discontinued treatment.
No other participants discontinued treatment
due to adverse events and no other participants
reported vomiting.
In December 2024, we initiated a large, compre-
hensive Phase 2b trial (ZUPREME-1) with petre-
lintide in people with overweight or obesity3.
1
Mathiesen et al. Eur J Endocrinol 2022;186(6):R93–R111
2
Roth et al. Proc Natl Acad Sci U S A 2008;105(20):7257–7262
3
Visit clinicaltrials.gov (NCT06662539) for more trial information
4
Eriksson et al. Presentation at ObesityWeek, November 1–4, 2022,
San Diego, CA.
5 Hayes et al. Annu Rev Nutr 2014;34:237–260
Petrelintide, a long-acting amylin analog, is being developed as an alternative to GLP-1-based therapies
with potential to become a future foundational therapy for weight management.
Balanced agonism
Petrelintide has potent and
balanced agonist effects on
key amylin receptors and the
calcitonin receptor4.
Pancreatic hormone
Amylin is produced in pancreatic
beta cells and co-secreted with
insulin in response to ingested
nutrients.
Non-incretin mechanism
Restores leptin sensitivity5 and
reduces food intake by increasing
satiety.
Key facts
Development status for petrelintide in 2024
zealandpharma.com/pipeline/
petrelintide/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
17
Pre-clinical
Registration
Phase 2
OBESITY
Targeting obesity and low-grade
inflammation with a GLP-1/ GLP-2
receptor dual agonist
Dapiglutide is a first-in-class, long-acting
dual GLP-1/GLP-2 receptor agonist for
once-weekly subcutaneous administra-
tion. It is designed to leverage the weight
loss effects of a potent GLP-1 receptor
agonist and address comorbidities associ-
ated with low-grade inflammation through
improved intestinal barrier function by GLP-2
receptor activation. People with obesity
have increased translocation of bacteria
from the gut lumen into the bloodstream
due to reduced integrity of the intestinal
barrier, driving a state of low-grade inflam-
mation, or “leaky gut”1. This obesity-related
low-grade inflammation can result in comor-
bidities such as cardiovascular disease, liver
disease, inflammatory bowel disease, and
neuro-inflammation.
Development status
In May 2024, Zealand Pharma reported
topline results from a mechanistic investi-
gator-led trial, evaluating low doses of dapi-
glutide in people with overweight or obesity.
Treatment with doses of dapiglutide up to 6
mg resulted in mean weight loss of up to 4.3%
after 12 weeks versus 2.2% with placebo.
In September 2024, Zealand Pharma
reported positive topline results from Part 1
of a Phase 1b dose titration trial, evaluating
dapiglutide doses of up to 13 mg. At week
13, the placebo-corrected mean body weight
1
Vetrani et al. Nutrients 2022;14(10):210
2
Drucker & Yusta. Annu Rev Physiol 2014;76:561–583
Dapiglutide
loss was up to 8.3% among participants
on dapiglutide treatment (up to 6.2% mean
weight loss on dapiglutide; 2.1% mean weight
gain on placebo). Dapiglutide treatment
was assessed to be safe and well-tolerated,
with no severe treatment-emergent adverse
events. Based on the mild tolerability profile
observed with dapiglutide, Zealand Pharma
amended the Phase 1b clinical trial to include
an additional cohort investigating even
higher doses up to 26 mg over 28 weeks of
treatment. Topline results from this added
cohort are expected to be reported in the
first half of 2025.
Zealand Pharma expects to initiate a Phase
2b trial with dapiglutide in people with over-
weight or obesity in the first half of 2025.
Dapiglutide, a dual GLP-1/GLP-2 receptor agonist, targets obesity and
comorbidities associated with obesity-related low-grade inflammation.
Biased towards GLP-1
Deliberately designed with strong
relative potency of 3:1 in favor of
the GLP-1R versus the GLP-2R
Intestinal benefits
GLP-2 reduces intestinal
permeability, limiting translocation
of bacteria to the bloodstream2
Regenerative effects
GLP-2 has potential for
regenerative effects to address
organ damage
Key facts
Development status for dapiglutide in 2024
zealandpharma.com/pipeline/
dapiglutide/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
18
Pre-clinical
Registration
Phase 3
Survodutide
OBESITY
Targeting obesity and MASH with a dual
glucagon/GLP-1 receptor agonist
Survodutide is a long-acting dual glucagon/
GLP-1 receptor agonist for once-weekly
subcutaneous administration, targeting the
treatment of obesity and metabolic dysfunc-
tion-associated steatohepatitis (MASH), one
of the most prevalent and serious obesity-re-
lated comorbidities. It is estimated that 34%
of people living with obesity have MASH1. By
activating both GLP-1 and glucagon recep-
tors, survodutide offers the potential for
significant body weight reduction by reducing
appetite and increasing energy expenditure,
improved glycemic control, and direct benefi-
cial effects on the liver.
1
Quek et al. Lancet Gastroenterol Hepatol 2023;8(1):20–30
2
Pégorier et al. Biochem J 1989;264(1):93–100
3
Del Prato et al. Obes Rev 2022;23(2):e13372
Development status
A Phase 2 clinical trial with survodutide in
people with overweight or obesity demon-
strated average body weight reductions of up
to 18.7% after 46 weeks. In 2024, Boehringer
Ingelheim completed participant enrollment
for SYNCHRONIZE™-1 and SYNCHRONIZE™-2,
part of the Phase 3 program for survodutide
in people with overweight or obesity.
In June 2024, Boehringer Ingelheim presented
positive results from a Phase 2 clinical
trial with survodutide in people with MASH
and liver fibrosis. Up to 64.5% of survodu-
tide-treated participants with moderate or
advanced fibrosis (stages 2 or 3) achieved
an improvement in fibrosis without wors-
ening of MASH after 48 weeks versus 25.8%
with placebo. In October 2024, Boehringer
Ingelheim initiated two large Phase 3 trials,
LIVERAGETM and LIVERAGETM-Cirrhosis, with
survodutide in adults with MASH and fibrosis
stages 2 or 3 and compensated MASH
cirrhosis (stage 4), respectively. Additionally,
survodutide received US FDA Breakthrough
Therapy designation for the treatment of
adults with non-cirrhotic MASH and moderate
or advanced fibrosis (stages 2 or 3).
Partnership with Boehringer Ingelheim
Survodutide was licensed to Boehringer
Ingelheim from Zealand Pharma. Boehringer
Ingelheim is funding all activities and is solely
responsible for the development and global
commercialization of survodutide. Zealand
Pharma has co-promotion rights in the Nordic
countries, EUR 315 million in outstanding
potential milestone payments, and is eligible
for high-single to low-double digit percentage
royalties on global sales.
Development status for survodutide in 2024
Survodutide, a dual glucagon/GLP-1 receptor agonist, targets obesity
and the large sub-population with MASH and fibrosis.
Dual agonism
Activates glucagon and GLP-1
receptors, both critical in
controlling metabolic functions
Biased towards GLP-1
Deliberately designed with strong
relative potency of 8:1 in favor of
GLP-1R versus GCGR
Direct liver effect
Glucagon reduces hepatic fat
content by stimulating lipolysis
in fat tissue and fatty acid
oxidations2,3
Key facts
zealandpharma.com/pipeline/
survodutide/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
19
Pre-clinical
Registration
Registration
Dasiglucagon
Dasiglucagon for congenital
hyperinsulinism (CHI)
Dasiglucagon is a glucagon analog that
is stable in aqueous solution and is thus
designed to allow for continuous subcuta-
neous infusion via a wearable pump.
CHI is an ultra-rare disease affecting
newborns, infants, and children caused by
a defect in pancreatic beta cells, resulting
in insulin overproduction and leading to
frequent, recurrent, and often severe
episodes of low glucose (hypoglycemia).
Every year, an estimated one in 28,000 to
50,000 newborns are diagnosed with geneti-
cally determined CHI in the U.S. and Europe1.
Complex care, including continuous enteral
feeding or intravenous glucose, can result
in lengthy and frequent hospitalizations
that make daily life difficult. The burden of
managing CHI is significant for the affected
1
Amoux JB et al. (2011). Orphanet J Rare Dis, 6:63; Yau et al. (2020).
Plos One, 15(2): e0228417.
2
Thornton PS et al., J Pediatr. 2015;167(2):238-45.
3
Banerjee I et al., Orphanet J Rare Dis. 2022;17:61
4
Yorifuji et al. Clin Pediatr Endocrinol 2017;26(3):127-152.
children and their families and caregivers,
and the limited availability of safe and effec-
tive treatment options represents an urgent
unmet medical need.
Development status
The potential of dasiglucagon in the manage-
ment of CHI is supported by three Phase 3
clinical trials in newborns and children up to
12 years of age. In Part 1 of the Phase 3 trial
conducted in a hospital-setting (trial 17013),
dasiglucagon reduced the requirement for IV
glucose to maintain glycemia in newborns and
infants with CHI by 55%. In Part 2 of the trial
(21-day open label), dasiglucagon enabled
reduction and either episodic or permanent
discontinuation of IV glucose infusion in 10
out of 12 infants during the study period. In
another Phase 3 trial conducted in a homecare
setting (trial 17109), dasiglucagon reduced
time in hypoglycemia by ~50% and the number
of hypoglycemic events by ~40% compared
to standard of care alone, when assessed by
blinded continuous glucose monitoring (CGM).
Zealand Pharma is ready to resbumit the New
Drug Application (NDA) for dasiglucagon in CHI
for up to three weeks of dosing and to submit
the required and detailed analyses from
existing CGM datasets to suport use beyond
three weeks. The regulatory submissions are,
however, contingent on an inspection classifi-
cation upgrade from a reinspection of a third-
party manufacturing facility.
Development status for dasiglucagon in 2024
Key facts
Dasiglucagon is a stable glucagon analog designed to allow for continuous
subcutaneous infusion via a wearable pump.
Devastating disease
Lack of proper management
of hypoglycemia may result in
brain damage, lead to permanent
brain injury, and is associated
with increased risk of infant
pancreatectomies2,3
Large unmet need
>50% of CHI patients may be
unresponsive to current treatment
options4
Glucagon analog
Dasiglucagon works by causing
the liver to release stored
sugar to the blood, preventing
hypoglycemia
RARE DISEASES – CHI
zealandpharma.
com/disease-areas/
congenital-hyperinsulinism/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
20
RARE DISEASES – CHI
Patient story
Born with CHI, Crosby had to have 98% of his pancreas removed and a gastric tube (“G-tube”)
inserted to stabilize his blood sugar within one week of his birth.
Luckily, Crosby’s parents learned about his rare disease
prenatally. Still, their early diagnosis would not take away the
fact that their child would be born with CHI nor that multiple
treatment options would not work for him.
For kids with CHI and their families, limited treatment options
create not only medical challenges, but social challenges too.
Kids with rare diseases become aware early on that they are
different. Other children and even parents would sometimes
ask about or touch Crosby’s G-tube, not realizing they are
being intrusive or potentially causing damage.
Crosby is now 10 years old and is a “honeymoon” period
with his CHI. He is not currently on medication and his family
monitors his blood sugar with a DexCom (continuous glucose
monitoring device) and regular finger prick checks, and
Crosby is getting more adept at monitoring and responding
to his own blood sugar. For now, this combination, along with
snacks, helps maintain his blood sugar levels. But this won’t
last forever. Because Crosby had to have a near-total pancre-
atectomy at birth, he has slowly been on his way to diabetes.
Most likely around puberty, what is left of his pancreas
will stop functioning and he will develop insulin-requiring
diabetes. By now, he has experienced episodes of hypergly-
cemia, and it has been difficult for him emotionally to process
the changes in his condition.
Even though having CHI is something that Crosby has always
known, it can still be scary and challenging. Whether it was his
monthly injections, inserting the new Dexcom device every 10
days, needing to prick his finger, or the prospect of diabetes,
this is all part of living with CHI. But Crosby is resilient. For the
last 10 years, he has overcome many hurdles. Nevertheless,
his rare condition will require him to face obstacles for the
rest of his life.
zealandpharma.com/
disease-areas/congen-
ital-hyperinsulinism/
crosby-was-born-with-chi/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
21
Pre-clinical
Registration
Phase 3
RARE DISEASES – SBS
Glepaglutide
Long-acting GLP-2 analog for the treatment
of short bowel syndrome (SBS)
Glepaglutide is a long-acting GLP-2 analog
that is stable in aqueous solution. Zealand
Pharma is developing glepaglutide as a
ready-to-use, fixed dose product designed
for subcutaneous delivery via a simple
auto-injector for the potential treatment of
SBS.
SBS is a rare, debilitating disease, character-
ized by the inability of the intestine to absorb
adequate fluid and nutrients, leaving many
patients chronically dependent on complex
parenteral support. While life-sustaining,
parenteral support poses significant restric-
tions on daily life and involves the risks of
serious and life-threatening complications.
Development status
In December 2024, Zealand Pharma received
a Complete Response Letter (CRL) from the
U.S. FDA for the glepaglutide NDA for the
treatment of adult patients with SBS with
intestinal failure (IF).
The submitted NDA included a single rand-
omized, placebo-controlled Phase 3
registrational trial (EASE-1). EASE-1 consisted
of two active treatment arms, once-weekly
and twice-weekly dosing. Treatment with
glepaglutide twice-weekly demonstrated
significant and superior effects in reducing
parenteral support requirements in patients
with SBS-IF compared to placebo. Once-
weekly glepaglutide treatment resulted in a
reduction in parenteral support but did not
achieve statistical significance. In the CRL,
the FDA recommended an additional place-
bo-controlled clinical trial to provide further
evidence confirming the efficacy and safety
of the to-be-marketed dose of twice-weekly
glepaglutide.
In 2025, we expect to submit a Marketing
Authorization Application (MAA) to the
European Medicines Agency and initiate a
single Phase 3 clinical trial (EASE-5) that is
anticipated to provide further confirmatory
evidence for a regulatory submission in the
U.S. and to support regulatory submissions
outside the U.S. and the EU.
We are developing a next-generation, potential best-in-class, long-acting
GLP-2 analog for the treatment of short bowel syndrome.
Debilitating disease
SBS often results in dependency
on parenteral support that
severely impacts quality of life
Burdensome care
Unmet need for improved
treatment options that may allow
patients to ease burden of disease
management
Stable GLP-2 analog
Glepaglutide is a long-acting
stable GLP-2 analog administered
with a ready-to-use autoinjector
Development status for glepaglutide in 2024
Key facts
zealandpharma.
com/disease-areas/
short-bowel-syndrome/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
22
Pre-clinical
Registration
Phase 1
ZP9830
INFLAMMATION
Potential to treat a broad range of cell-
mediated autoimmune disorders
ZP9830 is a potent and selective Kv1.3 blocker
with potential to treat a broad range of
cell-mediated autoimmune diseases. Kv.1.3 is a
voltage-gated potassium ion channel, essential
for the activation, proliferation, migration, and
cytokine production of leukocytes from the
innate and adaptive immune system1,2.
Kv1.3 is highly expressed in activated T
cells, particularly effector memory T cells. T
effector memory cells are dependent on Kv1.3
to function and play a key role in autoimmunity
Development status for ZP9830 in 2024
and chronic inflammation by releasing pro-
inflammatory cytokines, which drive tissue
damage3. The specific and selective location
of the Kv1.3 on the effector memory T cells
makes it an attractive pharmaceutical target,
as blocking Kv1.3 is believed to preserve the
protective effects of the rest of the immune
system.
Development status
The anti-inflammatory effects of blocking the
Kv1.3 ion channel have been demonstrated in
pre-clinical models of autoimmune diseases,
demonstrating concentration-dependent
inhibition of pro-inflammatory cytokine
release from stimulated human whole blood.
In December 2024, Zealand Pharma initiated
the first-in-human clinical trial of ZP9830.
This Phase 1 single ascending dose (SAD) trial
of ZP9830 will investigate the investigational
drug's safety and tolerability profile, its
pharmacokinetic profile to determine the
appropriate dose levels for potential future
clinical trials, and the pharmacodynamics
to evaluate its effect on the body’s immune
system.
ZP9830 is a potent and selective Kv1.3 blocker being developed for
the treatment of chronic inflammatory diseases.
1
Navarro-Pérez Expert Opinion on Therapeutic Targets 2024, 28(1-2):67-82, doi: 10.1080/14728222.2024.2315021
2
Markakis, Frontiers in Pharmacology 2021,12: 714841, doi: 10.3389/fphar.2021.714841
3
Chandy and Norton, Current Opinion in Chemical Biology 2017, 38:97–107, http://dx.doi.org/10.1016/j.cbpa.2017.02.015
Kv1.3 blocker
ZP9830 is a potent and selective
Kv1.3 blocker with potential
to treat a broad range of cell-
mediated autoimmune diseases
Selective location
Kv1.3 is highly expressed in
effector memory T cells, which
play a key role in autoimmunity
Immunosuppressant
Kv1.3 inhibition can selectively
suppress T cell activation and
autoimmune responses
Key facts
zealandpharma.com/pipeline/
ZP9830/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
23
Pre-clinical
Registration
Pre-clinical
INFLAMMATION
Complement C3 inhibitor
with a broad potential to treat
complement-mediated diseases
ZP10068 is an investigational, long-acting
inhibitor of complement C3, which has the
potential to treat a broad range of comple-
ment-mediated diseases.
The complement system is a part of the
innate immune system and a central compo-
nent of the complement cascade is the
C3 protein. Since C3 is at the core of the
complement system, its inhibition is believed
to block all downstream effects of the compl-
menet cascade. Altered activation of the
complement cascade is implicated in many
immune-mediated diseases and, in particular,
rare diseases such as paroxysmal nocturnal
hemoglobinuria, cold agglutinin disease,
myasthenia gravis, and C3 glomerulopathy.
Since ZP10068 acts on C3, it presents a
broad therapeutic potential for the treatment
of complement-mediated diseases.
Development status for ZP10068 in 2024
ZP10068
Development status
In 2024, Alexion Pharmaceuticals discon-
tinued development of ZP10068 citing busi-
ness reasons and transferred the asset back
to Zealand Pharma.
Zealand Pharma will evaluate the potential
for advancing ZP10068 into the first-in-human
clinical trials in 2025.
ZP10068 is a long-acting inhibitor of complement C3 in development for
the treatment of complement-mediated diseases.
Complement system
The complement cascade is part
of the innate immune system and
is a series of enzymatic reactions
that activate an immune response
Central role
C3 is a central protein in the
complement system, essential
for initiating and amplifying the
cascade
C3 inhibition
ZP10068 targets and blocks the
activity of complement C3 in the
immune system.
Key facts
zealandpharma.com/pipeline/
ZP10068/
READ MORE
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
24
Financial review
ș Net operating expenses in 2024 of DKK 1,327 million are
mainly driven by clinical advancement of the obesity pipe-
line and activities supporting the regulatory review by the
U.S. FDA of the rare disease assets.
ș Cash position as of December 31, 2024, is DKK 9.0 billion,
reflecting a significant increase compared to the DKK 1.6
billion in cash, cash equivalents, and marketable securities
as of December 31, 2023, driven by capital raises in January
2024 and June 2024 raising gross proceeds of approxi-
mately DKK 1.5 billion and DKK 7 billion respectively.
Revenue
Revenue in 2024 of DKK 63 million is mainly driven by the
license and development agreement for Zegalogue®. Revenue
of DKK 343 million in 2023 was mainly driven by a EUR 30
million milestone payment from Boehringer Ingelheim
associated with survodutide and USD 10 million from a
milestone payment from Sanofi associated with lixisenatide.
Net operating expenses
Research and development expenses in 2024 of DKK 920
million are mainly driven by clinical advancement of the
company's wholly owned obesity assets, petrelintide and
dapiglutide, including preparations for large, comprehen-
sive Phase 2b trials, and activities supporting the regulatory
review by the U.S. FDA of our rare disease assets.
Selling and marketing expenses of DKK 88 million in 2024 are
mainly driven by pre-commercial activities associated with
launch preparations for the rare disease assets. General and
administrative expenses of DKK 316 million reflect additional
legal expenses related to our patent portfolio and strength-
ening of organizational capabilities and IT infrastructure.
Other operating items of DKK -3 million in 2024 are related to
a settlement of a legal dispute. Other operating items of DKK
5 million in 2023 relates to a reversal of inventory write-down
associated with Zegalogue®, partly offset by an impairment of
the U.S. Boston office.
Financial items
Financial items in the year of 2024 of DKK 189 million are
mainly driven by interest income of DKK 170 million from
the excess liquidity invested in marketable securities. This
is partly offset by interest expenses from financial liabilities
of DKK -32 million related to disbursement of Tranche A of
the EIB loan and a commitment fee relating to the Revolving
Credit Facility (RCF). The RCF provided by Danske Bank
was terminated in July 2024. The significant improvement in
financial items in 2024 compared to 2023 is mainly driven by
the increase in interest income and fair value adjustment of
marketable securities in 2024 as well as the final repayment
and termination of the loan with Oberland Capital in May
2023, representing DKK -136 million in financial expenses.
DKK millions
2024
2023
Revenue
63
343
Gross profit
55
324
Research and development expenses
-920
-685
Sales and marketing expenses
-88
-31
General and administrative expenses
-316
-185
Other operating items
-3
5
Net operating expenses
-1,327
-896
Operating result
-1,272
-572
Net financial items
189
-137
Result before tax
-1,083
-709
Cash and cash equivalents
480
449
Marketable securities
8,542
1,184
Cash, cash equivalents, and
marketable securities
9,022
1,633
Equity
8,617
1,593
Other
Share price (DKK)
716
373
Number of shares ('000 shares)
71,024
58,751
Market capitalization (mDKK)
50,550
21,787
Number of full-time employees
at year-end
335
253
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
25
1,633
9,022
Net proceeds
from capital
increase June
2024
Purchase
of treasury
shares to cover
LTI programs
Cash position
Dec-20241, 2
Proceeds from
EIB loan
(Tranche A)
in March, 2024
Other cash
adjustments
Net proceeds
from capital
increase January
2024
Cash flow from
operating
activities
Cash position
Dec-2023
-352
480
8,542
449
1,184
373
6,789
-931
1,427
83
Equity
On December 31, 2024, equity was DKK 8,617 million
reflecting a significant increase compared to December 31,
2023, mainly driven by the proceeds from the equity offering
and issuance of new shares in June 2024 and the directed
issue and private placement of new shares in January 2024.
This was partly offset by the loss for the period.
In 2024, Zealand Pharma has purchased 300,000 new
treasury shares. The treasury shares are allocated to perfor-
mance share units (PSUs) and restricted share units (RSUs) as
described further in note 4.8 Share Capital.
Cash position
Cash, cash equivalents, and marketable securities as of
December 31, 2024 was DKK 9,022 million, reflecting a signif-
icant increase compared to the DKK 1,633 million in cash,
cash equivalents and marketable securities as of December
31, 2023. This development in 2024 is mainly driven by the
DKK 6,789 million in net proceeds from the equity offering
and issuance of new shares in June 2024 and the DKK
1,427 million in net proceeds from the directed issue and
private placement of new shares in January 2024, as well as
disbursement of the EUR 50 million Tranche A of the EIB loan
facility. This was partly offset by cash used in operating activi-
ties during the period (DKK 931 million).
As of December 31, 2024, Zealand Pharma has placed DKK
8,542 million in low-risk marketable securities, whereas cash
and cash equivalents amount to DKK 480 million. This is in line
with the Company's treasury policy.
For further information on the capital increases, the EIB loan,
and the RCF, please refer to note 4.0.
Events after the reporting date
In January 2025, Zealand sold its shares in Beta Bionics Inc.
following the signed mutual termination agreement from
October 2024. The agreed selling price was DKK 23.6 million
and the sale was completed in January 2025.
Guidance
Net operating expenses in 2024 of DKK 1,327 million was
within the guidance of DKK 1,250-1,350 million.
Cash position compared to FY23
DKKm
1 Cash position includes cash, cash equivalents, and
marketable securities. Revolving Credit Facility of DKK
350 million provided by Danske Bank was terminated in
July 2024 and not included in this chart.
2 EIB loan Tranches B and C (EUR 20 million each) are
excluded from this chart. The two tranches are subject
to pre-specified milestones being met.
Cash and cash equivalents
Marketable securities
Our business
Financial statements
Contents
The big picture
Sustainability
Corporate Governance
Zealand Pharma
Annual Report 2024
26
28
Introduction
29
Corporate Governance structure
35
Board of Directors and Corporate Management
40
Internal controls and risk management
42
Risk and risk mitigation
45
Shareholder information
47
Annex: Recommendations on Corporate Governance
Corporate
Governance
Zealand Pharma
Annual Report 2024
27
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Introduction
This chapter on the Corporate Governance of Zealand Pharma A/S (“Zealand
Pharma”) has been integrated into the Management Review of the Annual Report 2024
and covers the period January 1 – December 31, 2024.
As a company incorporated under the laws of Denmark,
and with its shares admitted to trading and official listing on
Nasdaq Copenhagen, Zealand Pharma is subject to various
applicable legislation, standards, and other regulations for
publicly traded companies. These include Danish securities
law and the recommendations on Corporate Governance
issued by the Danish Committee on Corporate Governance (in
the below ‘‘the Recommendations’’) updated on December 2,
2020.
At Zealand Pharma, we regularly review our activities
to ensure that we meet our obligations to shareholders,
employees, regulatory authorities, and other stakeholders
while maximizing long-term value. Zealand Pharma also
regularly reviews its rules, policies, and practices within risk
management and internal control to improve guidelines and
policies for Corporate Governance, ensuring that the stand-
ards that we set are up to date with accepted practice for
a company like Zealand Pharma. In addition to these, when
relevant, we have Corporate Governance activities reviewed
by a third party who carries out an evaluation of the Board
and how it is governed.
In addition to the reviews set out above, the Board of
Directors and Corporate Management constantly seek to
ensure that Zealand Pharma's management structure and
control systems are efficient, function properly, and provide
the right degree of control and management for the organiza-
tion. Several internal procedures have been developed and
are continuously updated, with external assistance if required,
to ensure active, secure, and efficient management of our
company.
www.zealandpharma.com/about-us/
corporate-governance/
READ MORE
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
28
Corporate Governance structure
Zealand Pharma has a two-tier management structure composed of the Board of Directors
(‘the Board’) and Management (refer to page 34 for an overview of Zealand Pharma's
Management).
The Board is responsible for the overall vision, strategies
and objectives, the financial and managerial supervision of
Zealand Pharma, as well as for regular evaluation of the work
of Corporate Management. In addition, the Board provides
general oversight of Zealand Pharma's activities and ensures
that the company is managed in a manner and in accordance
with applicable law, Zealand Pharma's articles of associa-
tion, and the policies and procedures that are put in place to
ensure sound governance.
The Board approves the policies and procedures, and
Corporate Management is responsible for the day-to-day
management of Zealand Pharma in compliance with the
guidelines and directions set by the Board. The allocation
of responsibilities between the Board of Directors and
Corporate Management is stipulated in the Rules of Procedure
that are reviewed and signed every year by the members of
the Board of Directors and Corporate Management after the
Annual General Meeting.
Board of Directors
The Board plays an active role in setting Zealand Pharma's
strategies and goals as well as in monitoring its operations
and results. The Board functions according to its Rules of
Procedure. The duties include establishing Zealand Pharma’s
policies to achieve Zealand Pharma's objectives in accordance
with its articles of association that form an important set of
guardrails for how the company should be governed. These
also define the responsibilities of the Board, for example
ensuring that Zealand Pharma’s bookkeeping, accounting,
asset management, information technology systems, budg-
eting, and internal control are properly organized.
As of December 31, 2024, Zealand Pharma’s Board is
comprised of seven board members elected at the Annual
General Meeting and four employee representatives elected
by Zealand Pharma's employees. The Annual General Meeting
appoints each shareholder-elected member of the Board for a
one-year term, whereas employee representatives are elected
for a four-year term. All current members of the Board elected
Corporate Governance structure
Annual General Meeting
Board of Directors
Corporate Management
Organization
Nomination
Committee
Audit
Committee
Remuneration
Committee
Scientific
Committee
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
29
The Board and board members
Board members elected by the shareholders at the Annual
General Meeting 2024:
ș Martin Nicklasson, Chair
ș Kirsten A. Drejer, Vice Chair
ș Jeffrey Berkowitz
ș Bernadette Connaughton
ș Leonard Kruimer
ș Enrique Conterno
ș Elaine Sullivan
Board members elected by the employees:
ș Frederik Barfoed Beck
ș Anneline Nansen
ș Ludovic Tranholm Otterbein
ș Adam Krisko Nygaard
In line with the Recommendations, the Board reviews and
determines the qualifications and experience needed on
the Board with respect to:
ș Scientific knowledge within bioscience and innovation of
pharmaceutical products
ș Financial experience and knowledge
ș Experience in leading an innovative business and insight into
the biopharmaceutical market
ș Experience with market entry and relationship with payers
ș Experience in handling and managing partnering agreements
ș Competency in ensuring that the obligations of a listed
company are fulfilled
at the Annual General Meeting 2024 are up for re-election at
the Annual General Meeting in 2025.
In 2024, the Board decided to carry out a full independent
review of its performance. This performance was carried out
independently by the Leadership Advisory Group (LAG) in
compliance with article 3.5 of Danish Recommendations on
Corporate Governance 2020. They used a mixture of
anonymous online questionnaires. The results were presented
to the Board before the 2024 Annual General Meeting and
provided areas where the governance of the company could
be subject to annual review and further strengthened. These
recommendations were instituted as part of the company’s
annual review as a matter of routine.
At the beginning of 2025, the Board decided to follow this
evaluation to check its progress and to ensure that there
was independence when the Board was evaluated. Once
again, the Board decided to use the services of the LAG to
follow up from its last review of the Board in 2024. The LAG
used an anonymous online questionnaire that was sent to
each member of the Board and Corporate Management.
LAG produced a report that was sent to the Chair and the
Company Secretary.
The compiled report measures 11 separate categories and
scores them based on an average of the scores from the
members of the Board and Corporate Management (9 + 6
people in total). The scores indicate the following perfor-
mance against benchmarks for Danish companies.
LAG report results
Category
Score from
a total of 5
Benchmark
Difference
Role Model
Benchmark
Strategy development and implementation
4.28
3.53
+0.75
4.28
Risk awareness, monitoring, and reporting
3.98
3.49
+0.49
4.14
Cooperation with and evaluation of the CEO and Executive Management
4.65
3.59
+1.06
4.65
Board composition and dynamics
4.35
3.57
+0.78
4.35
On- and off-boarding
3.40
3.05
+0.35
3.90
Meeting structure and operation
4.42
3.69
+0.73
4.42
Meeting effectiveness
4.49
3.72
+0.77
4.49
Shareholders and stakeholder relations
4.22
3.36
+0.86
4.29
Committee and Vice Chair value contribution
4.40
3.74
+0.66
4.40
Evaluation of the Chair
4.70
4.08
+0.62
4.70
General
4.67
3.80
+0.87
4.67
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
30
The results indicate that in 8 of the 11 categories (indicated
in blue rows in the chart on previous page) Zealand Pharma’s
performance was regarded as exceptional across various
categories. The LAG’s assessment was that in these 8 cate-
gories Zealand Pharma represented a role model company
Board.
The Board should meet at least 6 times a year and whenever
the Chair decides that it is necessary. The Board of Directors
met for a total of 9 times in 2024.
Audit Committee
The Audit Committee consists of Leonard Kruimer, Martin
Nicklasson, Jeffrey Berkowitz, and Bernadette Connaughton.
The committee is chaired by Leonard Kruimer.
The Audit Committee plays an active role in setting Zealand
Pharma's strategies and goals as well as in monitoring its opera-
tions and results, including ESG. The Audit Committee functions
according to its Charter that is reviewed on an annual basis.
The duties include the internal controls and risk management
systems related to financial reporting and evaluating the need
for an internal audit:
ș establishing procedures for the receipt, retention, and treat-
ment of complaints received regarding accounting, internal
controls, auditing, and financial reporting matters (whis-
tle-blower function);
ș nominating the statutory external auditor to be elected at
the Annual General Meeting and preparing the recommen-
dation for the Annual General Meeting regarding the election
of our external auditor, as well as, if relevant, proposing
to the Annual General Meeting that an external auditor is
discharged;
ș monitoring the strategy, plan, scope, and approach of the
external auditor’s annual audit;
ș monitoring and approving the terms and compensation of
the external auditor;
ș monitoring the external auditor’s reports to the Executive
Management and the Board of Directors, including manage-
ment letters and long-form reports, discussing any reports
with the Executive Management and the external auditor,
and be mainly responsible for resolving any disagree-
ments between the external auditor and the Executive
Management;
ș considering (at least on an annual basis) the performance
and independence of the external auditor and obtaining and
reviewing a report from the external auditor
substantiating that the external auditor is independent;
ș reviewing policy in relation to the provision of non-audit
services by the external auditor under which the Audit
Committee approves non-audit services delivered by the
external auditor;
ș engaging independent counsel and other advisors as the
Audit Committee determines necessary to carry out its
duties;
ș obtaining available appropriate funding as the Audit
Committee determines necessary for the fulfillment of its
tasks and duties; and
ș evaluating on an annual basis: (i) the performance of the
Audit Committee, including independence and financial
expertise; and (ii) the adequacy of the Audit Committee’s
charter and recommendation of any proposed changes to
the Board of Directors.
In 2024, specific topics discussed included auditor's reports,
accounting policies, internal controls, compliance, finance,
going concern status, risk management, cybersecurity,
insurance policy, year-end topics, ESG reporting, transactions
not in the usual course of business, and external financing.
The Audit Committee met for a total of 8 times in 2024. The
committee is composed of independent members.
Remuneration Committee
The Remuneration Committee consists of Martin Nicklasson,
Leonard Kruimer, and Enrique Conterno. The committee is
chaired by Martin Nicklasson.
The Remuneration Committee proposes the remuneration
policy as well as targets for company-operated perfor-
mance-related incentive programs. These policies and guide-
lines set out the various components of the remuneration,
including fixed and variable remuneration such as pension
schemes, benefits, retention bonuses, severance, and incen-
tive schemes, as well as the related bonus and evaluation
criteria. The Remuneration Committee functions according to
its Charter that is reviewed on an annual basis.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
31
The Remuneration Committee has the following principal
responsibilities:
ș preparing and presenting proposals to the Board of
Directors on the framework for remuneration packages for
Executive Management, including, but not limited to salary,
salary increases, pension rights and any compensation or
termination payments, ensuring that the contractual terms
are fair to the individual and to Zealand Pharma, that failure
is not rewarded, and that the duty to mitigate loss is fully
recognized;
ș preparing and presenting proposals to the Board of
Directors on remuneration matters of material importance
to Zealand Pharma, including incentive programs and
payments for the Executive Management. The proposals
for remuneration of Executive Management, including any
incentive program, shall be in accordance with and not
exceed relevant comparable market practice levels at any
given time;
ș preparing and presenting proposals to the Board of
Directors on the targets (bonus levels and performance
targets) for company-operated performance-related incen-
tive programs for Executive Management, as well as moni-
toring and evaluating the fulfillment of such targets;
ș overseeing the implementation of any pension, retirement,
death or disability, or life insurance scheme, and any incen-
tive schemes for Executive Management; and
ș reviewing and considering the proposals from our
Nomination Committee on remuneration for members of the
Board of Directors and Executive Management.
In 2024, specific topics discussed included long-term incentive
programs for management and Board of Directors, company
goals, and the compensation policy for eligible employees.
Please refer to the 2024 Remuneration Report for more
details.
The Remuneration Committee met for a total of 6 times in
2024. The committee is composed of independent members.
Nomination Committee
The Nomination Committee consist of Kirsten A. Drejer, Leon
Kruimer, and Martin Nicklasson. The committee is chaired by
Kirsten A. Drejer.
The Nomination Committee makes recommendations for
decisions to the Board of Directors regarding Board positions,
identifying and recommending candidates for the Board of
Directors. The Nomination Committee functions according to
its Charter that is reviewed on an annual basis.
Specific topics discussed in 2024 included the composi-
tion, capabilities, diversity, and independence of the Annual
General Meeting elected board members as well as a review
of the required skillset for the Board.
The Nomination Committee met for a total of 4 times in 2024.
The committee is composed of independent members.
Scientific Committee
The Scientific Committee consists of Kirsten A. Drejer, Enrique
Conterno, and Elaine Sullivan. The committee is chaired by
Kirsten A. Drejer.
The Scientific Committee is a forum with the purpose of lever-
aging the scientific expertise of the appointed Board members,
understanding and challenging the approach and assump-
tions of Zealand Pharma’s Research & Development strategy,
providing technical assistance to the Board on research and
development-related topics, and guiding the Board on the risks
of the Company’s Research & Development strategy. In line
with 2023, the specific topics discussed in 2024 included the
development of the clinical pipeline, preparation for potential
interactions with regulatory authorities, and a review of the
pre-clinical pipeline and innovation strategy.
The Scientific Committee met for a total of 4 times in 2024. The
committee is composed of independent members.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
32
Overview of meetings in 2024
Attended
Absent
Not part of the Board or Committee at the time of the meeting
Board
Audit Committee
Remuneration
Committee
Scientific
Committee
Nomination
Committee
Martin Nicklasson
N/A
Kirsten A. Drejer
N/A
N/A
Jeffrey Berkowitz
N/A
N/A
N/A
Bernadette Connaughton
N/A
N/A
N/A
Leonard Kruimer
N/A
Enrique Conterno
N/A
N/A
Elaine Sullivan
N/A
N/A
N/A
Frederik Barfoed Beck
N/A
N/A
N/A
N/A
Anneline Nansen
N/A
N/A
N/A
N/A
Ludovic Tranholm Otterbein
N/A
N/A
N/A
N/A
Adam Krisko Nygaard
N/A
N/A
N/A
N/A
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
33
Corporate Management
Corporate Management is composed of
Executive Management and other members of
Corporate Management:
Executive Management
ș Adam Steensberg, President and
Chief Executive Officer
ș Henriette Wennicke, Executive Vice President
and Chief Financial Officer
Other members of the Corporate Management
ș Ivan Møller, Executive Vice President, Chief
Operating Officer
ș Christina Sonnenborg Bredal,
Executive Vice President, Chief People Officer
ș David Kendell, Chief Medical Officer and
Head of Research & Development
ș Eric Cox, Executive Vice President, Chief
Commercial Officer
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
34
Board of Directors and Corporate Management
Zealand Pharma Board of Directors at February 20, 2025
Martin Nicklasson
Kirsten A. Drejer
Jeffrey Berkowitz
Position
Chair
Vice Chair
Board member
Year of birth
1955
1956
1966
Nationality
Swedish
Danish
American
Gender
Male
Female
Male
First elected
2015
2018
2019
Committee
AudCom, RemCom (Chair), and NomCom
NomCom (Chair) and SciCom (Chair)
AudCom
Independent
Yes
Yes
Yes
Special
competencies
Extensive general management and research
and development experience from AstraZeneca
Plc and Swedish Orphan Biovitrum AB.
More than 30 years of international experience
in the pharmaceutical and biotech industry.
Before co-founding Symphogen A/S in 2000,
held several scientific and managerial positions
at Novo Nordisk A/S.
Global executive with extensive branded and
generic pharmaceutical, retail pharmacy,
wholesale drug distribution, specialty, payor,
and healthcare services leadership experience
in P&L accountable roles.
Current positions
Board member of Basilea Pharmaceutica Ltd.
and Chair of Nykode Therapeutics ASA.
Chair of the Board of ResoTher Pharma.
Board member of Curasight A/S and Malin
Corporation.
CEO and Director of Real Endpoints and. Board
member of H. Lundbeck A/S.
zealandpharma.com/about-us/
corporate-governance/
committees/
READ MORE
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
35
Bernadette Connaughton
Enrique Conterno
Leonard Kruimer
Elaine Sullivan
Position
Board member
Board member
Board member
Board member
Year of birth
1958
1966
1958
1961
Nationality
American
Peruvian/American
Dutch
British/Irish
Gender
Female
Male
Male
Female
First elected
2019
2024
2019
2024
Committee
AudCom
RemCom and SciCom
AudCom (Chair), RemCom, and NomCom
SciCom
Independent
Yes
Yes
Yes
Yes
Special
competencies
More than 30 years of global strategic,
commercial, and leadership expertise, and a
broad perspective on the strategy, capabilities,
and governance required for successful execu-
tion in U.S. and international markets.
27 years at Eli Lilly and Company, including
SVP and Member of the Executive Committee,
President of Lilly USA, and President of Lilly
Diabetes, as well as roles across sales,
marketing, finance, and business development.
Bachelor of Science in Mechanical Engineering
from Case Western Reserve University and
MBA from Duke University.
More than 40 years of experience in corporate
finance, planning, and strategy, including 25
years in senior executive positions in private
and publicly listed biotechnology companies
Served at both AstraZeneca and Eli Lilly
and Company as member of senior global
R&D management teams, including VP of
Global External R&D at Eli Lilly and Company
and VP and Head of New Opportunities at
AstraZeneca. Co-founded and served as CEO
of Carrick Therapeutics. PhD in Molecular
Virology from the University of Edinburgh.
Current positions
Board member of Halozyme Therapeutics Inc.
and Editas Medicine.
Member of the Board of Directors of Glooko,
inc. and Member of the Board of Governors of
the American Red Cross.
Chair of the Board of BioInvent International AB,
Board member and Chair of Audit Committee of
Pharming Group NV., and Basilea Pharmaceutica
Ltd. Director AI Global Investments (Netherlands).
Member of the Board of Directors of Nykode
Therapeutics ASA, IP Group plc, and hVIVO Ltd.
Zealand Pharma Board of Directors at February 20, 2025, continued
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
36
Frederik Barfoed Beck
Anneline Nansen
Adam Krisko Nygaard
Ludovic Tranholm Otterbein
Position
Employee-elected board member
Employee-elected board member
Employee-elected board member
Employee-elected board member
Year of birth
1967
1969
1984
1973
Nationality
Danish
Danish
Hungarian
French
Gender
Male
Female
Male
Male
First elected
2020
2021
2024
2024
Committee
None
None
None
None
Independent
No
No
No
No
Current positions
Associate Director, Contracts and Sourcing
Principal Scientist
Senior Statistical Programmer
Vice President, Head of IT
Zealand shares at
December 31, 2024
4,722
1,375
-
416
Zealand warrants at
December 31, 2024
4,187
6,980
1,459
3,457
Zealand RSUs at
December 31, 2024
1,854
1,854
854
854
Change in ownership
in 2024
+300
+1,125
-
-
Zealand Pharma Board of Directors at February 20, 2025, continued
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
37
Adam Steensberg
Henriette Wennicke
Ivan Møller
Christina Sonnenborg Bredal
Position
Executive Management
President and
Chief Executive Officer
Executive Management
Executive Vice President and
Chief Financial Officer
Executive Vice President,
Chief Operating Officer
Executive Vice President,
Chief People Officer
Year of birth
1974
1983
1972
1985
Nationality
Danish
Danish
American/Danish
Danish
Gender
Male
Female
Male
Female
Joined Zealand
2010
2022
2018
2020
Experience
Adam has 20+ years of experience in both the
private and public sectors, including:
ș Chief Medical Officer at Zealand Pharma
ș Medical Director at Novo Nordisk
ș Clinician at Rigshospitalet
Henriette has 15+ years of experience from
global, publicly listed companies, including:
ș Vice President, Head of Investor Relations &
Treasury at GN Store Nord
ș Vice President, Head of Global Finance at GN
Hearing
ș Director, R&D Business Support at Novo
Nordisk
Ivan has 25+ years of experience in Pharma and
project management, including:
ș Executive Vice President, Technical
Development & Operations at Zealand Pharma
ș Global Head, Operations Management at
Novartis
ș Vice President, Global Head, External Supply
Organization at Novartis
ș Project Leader at Boston Consulting Group
ș Head of Production, PolyPeptide Laboratories
A/S
Christina has 10+ years of experience in various
legal and advisory areas, including:
ș Senior Vice President, Head of People &
Organization at Zealand Pharma
ș Manager at PwC Legal
ș Tax Manager and Senior Tax Consultant at EY
People Advisory Services
ș Trial Lawyer at Martinelli Advokatfirma
Zealand Pharma Corporate Management at February 20, 2025
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
38
David Kendall
Erix Cox
Position
Chief Medical Officer and
Head of Research & Development
Executive Vice President,
Chief Commercial Officer
Year of birth
1961
1967
Nationality
American
American
Gender
Male
Male
Joined Zealand
2020
2024
Experience
David has 35+ years of experience in clinical
diabetes, research, and Pharma, including:
ș Chief Medical Officer at MannKind
Corporation
ș Vice President, Medical Affairs and
Distinguished Medical Fellow at Eli Lilly and
Company
ș Chief Scientific and Medical Officer for
the American Diabetes Association
ș Chief of Clinical Services and Medical
Director at the International Diabetes Center
ș Faculty at the University of Minnesota
Eric has 25+ years of commercial and business
development experience in both large pharma
and biotech, including:
ș Vice President of Commercial including
Business Development at Carmot
Therapeutics (Roche)
ș U.S. Commercial Franchise Leader, Diabetes,
Heart Failure and Chronic Kidney Disease
at AstraZeneca
ș Global Franchise Leader, Rare Disease
and Cardiovascular at Merck
1 Please refer to page 37 for an overview of shares, warrants, RSUs held by the employee-elected members of the Board of Directors and change in such holdings in 2024.
Corporate Management
Overview of shares, warrants, PSUs, RSUs, and change in 2024
Zealand
shares at
December
31, 2024
Zealand
warrants at
December
31, 2024
Zealand
PSUs at
December
31, 2024
Zealand
RSUs at
December
31, 2024
Change in
ownership
in 2024
Adam Steensberg
74,068
146,102
146,837
43,216
32,925
Henriette
Wennicke
10,873
14,038
33,760
16,025
7,441
David Kendall
16,569
10,490
20,905
25,472
7,270
Ivan Møller
46,864
66,137
49,715
9,998
1,436
Christina
Sonnenborg
Bredal
12,810
31,761
30,346
6,381
6,076
Eric Cox
-
-
4,102
4,102
-
Board of Directors1
Overview of shares, warrants, RSUs, and change in 2024
Zealand
shares at
December
31, 2024
Zealand
warrants at
December
31, 2024
Zealand
RSUs at
December
31, 2024
Change in
ownership
in 2024
Martin Nicklasson
21,236
-
9,605
2,666
Kirsten A, Drejer
10,133
-
4,802
1,333
Jeffrey Berkowitz
9,533
-
4,802
1,333
Bernadette Connaughton
9,833
-
4,802
1,333
Leonard Kruimer
17,464
-
5,802
2,133
Enrique Conterno
-
-
2,135
-
Elaine Sullivan
136
-
2,135
136
Zealand Pharma Corporate Management at February 20, 2025, continued
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
39
Internal controls and
risk management
Zealand Pharma strives to conduct its operations
in accordance with the highest ethical standards.
Zealand Pharma is a knowledge-intensive company, with a
high focus on competencies and personal development. The
management philosophy in Zealand Pharma is based on a
high degree of trust in the company’s employees. Policies
and operational processes are well described with regular
reporting and controls. Operations are performed mainly
within the parent company Zealand Pharma A/S in Søborg,
Denmark. All main research and development operations are
based at the site in Søborg. The company maintains a small
workforce at Zealand Pharma U.S. Inc., the U.S. subsidiary,
located in Boston, Massachusetts. Some of the company’s
work is outsourced to various contract research, develop-
ment, or manufacturing organizations.
Internal controls environment
Zealand Pharma has a number of internal control and risk
management systems in place to ensure that its financial
statements provide a true and fair view and comply with IFRS
Accounting Standards as adopted by the EU and additional
requirements under the Danish Financial Statements Act.
Zealand Pharma has several policies and procedures in key
areas of financial reporting. The internal control and risk
management systems are designed to mitigate, detect, and
correct material misstatements rather than eliminate the risks
identified in the financial reporting process.
Executive Management is responsible for implementing
policies and procedures on a day-to-day basis. The Board
has established an Audit Committee to advise the Board on
related matters.
A review and prioritization of material accounting items is
performed throughout the year. Items in the financial state-
ments that are based on estimates or that are generated
through complex processes carry a relatively higher risk of
error. Zealand Pharma performs continual risk assessments to
identify such items and assess their scope and related risks.
There are inherent limitations in the effectiveness of any
internal control over financial reporting, including the possi-
bility of human error and the circumvention or overriding
of internal control. Accordingly, even effective internal
control over financial reporting can provide only reasonable
assurance with respect to financial statement preparation.
An effective internal control environment may become
inadequate in the future because of changes in conditions, or
deterioration in the degree of compliance with the policies
and procedures.
As of December 31, 2024, key risks and processes iden-
tified have been documented and internal controls have
been designed and implemented in the organization. Internal
controls have been subject to management testing and
assessment to ensure that risks are addressed and managed
in a responsible and efficient manner. Results have been
formally reported to Executive Management.
The Board has assessed that an internal audit function is not
required at Zealand Pharma in view of the company’s legal
structure and size.
Audit
Zealand Pharma's external auditors are appointed for a
term of one year by the shareholders at the Annual General
Meeting, based on the recommendation of the Board.
Before such recommendation and in consultation with the
Audit Committee and Executive Management, the Board
assesses the independence, competencies, and other matters
pertaining to the auditors.
The framework for the auditors’ duties, including their remu-
neration, audit, and non-audit tasks, is agreed between the
Audit Committee and the auditors, and endorsed by the Board.
Description of management reporting
systems and internal control systems
Executive Management continually works on the design
and effectiveness of its management reporting and internal
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
40
control systems in order to enable it to monitor performance,
strategy, operations, business environment, organization,
procedures, funding, risk, and internal controls. While imple-
mentation is ongoing, Executive Management is of the opinion
that the reporting and internal controls are adequate to avoid
material misstatements in the financial reporting.
The management reporting and internal control systems
include the following reports:
ș Annual budget
ș Quarterly reports, including budget revisions in March, June,
and September
ș Financial performance and cash position
ș Comparison of budgeted and actual performance
ș Analysis of cash flows
ș Project management and cost control and regular project
reporting and follow-up
ș Summaries of project management key performance
indicators
ș Controls on purchase and maintenance of assets
ș Review of potential claims and litigation
ș Review and updating of contracts and collaboration agree-
ments to ensure that all commitments and liabilities are
recognized as well as all income to which Zealand Pharma is
entitled
In addition to the abovementioned reports, the internal
control system includes a number of detailed policies and
procedures, including:
ș Treasury policy guiding investment of liquid assets
ș Schedule of authorization guiding the sign-off of expenses
and investments
ș Employee manual providing guidance on policies, rules, and
procedures associated with employment at Zealand Pharma
Zealand Pharma also undertakes controls to ensure the
completeness and accuracy of accounting records. Such
controls are prepared, reviewed, tested, and documented in
an online controls tool.
Zealand Pharma’s Executive Management considers that the
above high-level and detailed controls contribute to more
effective financial reporting procedures.
Control environment/accounting
Incoming invoices are approved electronically. An approval
hierarchy ensures that invoices are approved by the appro-
priate persons in accordance with Zealand Pharma's Schedule
of Authorization. Payment proposals are approved through
online banking and require two staff members to complete
the transaction. No changes to vendors' banking details can
be performed without approval.
Risk assessment
As part of the risk assessment process, a review and prior-
itization of key risks and material accounting items has been
performed. These risks have been analyzed with relevant
controls described.
The areas deemed to have a moderate to high-risk profile are:
ș Revenue recognition and share-based compensation, which
involve a degree of judgement and estimation with a risk
profile assessed to be moderate
ș Counterparty risk for liquid assets
ș Risk of fraud
It is Executive Management’s view that the current controls
are adequately reducing the risk of significant errors in the
financial statements.
The end-of-period process
In addition to controls of individual accounting items, it is
important to maintain a high level of control over the different
steps involved in transforming raw accounting data into final
quarterly or annual reports.
The quarterly and year-end processes involve detailed docu-
mentation of each balance sheet item as well as documenta-
tion supporting all notes to the accounts.
Executive Management reviews the accounting policies used
and assesses the need for any new accounting policies. Any
items where estimates and/or judgements influence the
accounts are discussed with the Audit Committee and are
described in note 1.3 in the Annual Report.
IT
In addition to the controls performed by Management,
Zealand Pharma’s IT department has policies in place
covering data governance, use of IT, and information secu-
rity. IT is leveraging an external Security Operation Center
(SOC) provider for Monitoring Detection Response (MDR) and
Incident Response (IR). An employee cyber security training
program is also implemented. IT continues to invest in infra-
structure and network hardening.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
41
Risk and risk mitigation
We constantly monitor and assess the overall risk of doing business in the drug development
industry and the particular risks associated with our current activities and corporate profile.
Zealand Pharma’s Corporate Management is responsible for
implementing adequate systems and policies in relation to
risk management and internal control and for assessing the
overall and specific risks associated with Zealand Pharma’s
business and operations. Furthermore, Zealand Pharma’s
Corporate Management seeks to ensure that such risks are
managed optimally and in a responsible and efficient manner.
Doing business in the drug development industry involves
major financial risks. The development period for novel medi-
cines takes several years; costs are high, and the probability
of reaching the market is relatively low due to developmental
and regulatory hurdles.
Risks of particular importance to Zealand Pharma are scien-
tific and development risks, commercial risks, intellectual
property risks, clinical trial risks, regulatory risks, partner
interest risks, financial risks, and risks relating to finan-
cial reporting. Risk and mitigation plans are monitored by
Corporate Management, and the continuous risk assessment
is an integral part of the yearly reporting to the Board. In
addition to these, each project team has a risk identification
and mitigation assessment using a standard internal matrix
that is used across the company. This is used by each project
team to ensure that there is a consistent approach to risk and
that appropriate risks are identified. This is updated during
the lifetime of any project.
On the following pages we have summarized Zealand
Pharma’s key risk areas and how we attempt to address and
mitigate such risks.
Kamal works in
Medical Affairs
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
42
Zealand Pharma risks and mitigations
Product pipeline
Risk
Research and development activities for new
pharmaceutical product candidates are costly
and require lengthy clinical trials, which, by
nature, are uncertain and associated with
high risk of failure. Adverse events in clinical
trials or failure to satisfactorily demonstrate
safety and efficacy of product candidates to
regulatory authorities could lead to delays
in completing clinical trials, additional costs
to Zealand Pharma, or ultimately failure to
progress the product candidates towards the
market.
Mitigation
Our clinical project teams work closely with
external expert clinicians and product devel-
opment experts within the industry to design,
set up, and conduct the clinical programs.
Our employees have been selected due to
their extensive experience within their field
of expertise and receive training on a contin-
uous basis to develop and fulfill requirements.
We also engage in meetings with regulatory
authorities to ensure that there is alignment on
the regulatory strategy and trial requirements.
Partnerships
Risk
Zealand Pharma has a business model that is
dependent on partnerships in development,
manufacturing, and commercialization. Quality
or supply issues at key third-party manufac-
turers may lead to regulatory delays or impact
clinical or commercial supply. Failure to secure
or manage future commercialization partner-
ships may result in loss of product value and
negatively impact access for patients.
Mitigation
Suppliers are regularly audited to ensure
proper quality. To maximize the value of all
partnerships, we strive to foster a close and
open dialogue with our partners, thereby
building strong partnerships that work
effectively.
Workforce and
management
Risk
Zealand Pharma’s ability to attract and retain
highly skilled and talented employees is key
to our success and future growth. Loss of key
employees may lead to delays in the develop-
ment of Zealand Pharma’s product candidates,
loss of important know-how, and impact the
company’s culture.
Mitigation
Zealand Pharma strives to be an enriching,
inspiring, and great place to work. Throughout
our 26-year history, we have built a unique
company culture. Engagement surveys show
high engagement (8.8/10) and a high sense
of purpose for all employees. Peer and pay
reviews are performed regularly and we invest
in training, development, and active culture
management to ensure a continued good
working environment.
Finance and
macroeconomics
Risk
Exposure to macroeconomic risks related to
interest rates as well as volatility and insta-
bility in the financial markets could potentially
lead to Zealand Pharma’s inability to secure
financing.
Mitigation
Zealand Pharma’s cash position following the
capital raises in 2024 makes the company less
vulnerable to financial instability. As stipulated
in our treasury policy, we work diligently to
secure a healthy balance sheet by managing
our cash, investments, and debt while also
hedging our exposure to, for example,
exchange rate risk.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
43
Zealand Pharma risks and mitigations, continued
IT security
Risk
Cyberattacks may lead to theft or leakage of
patient data, personal employee data, intellec-
tual property, and confidential business data,
potentially impacting Zealand Pharma’s oper-
ations and reputation, resulting in fines from
authorities or financial losses.
Mitigation
We employ qualified IT professionals, including
dedicated specialists, who use external assis-
tance from qualified vendors to provide advice
on cybersecurity and systems security where
relevant. All members of staff are trained in IT
security and our IT systems use multi-authen-
tication systems as appropriate to reduce the
risk of unauthorized entry into the systems.
Our company has appropriate protection
systems from viruses and malware. The most
sensitive data is encrypted and subject to
restricted internal use.
Climate and geopolitical
environment
Risk
Climate or geopolitical events may impact
Zealand Pharma’s or a partner’s business
operations due to supply issues. Trial recruit-
ment could be delayed due to geopolitical
issues or global health crises as seen during
the COVID-19 pandemic. Increased regulatory
requirements and public sentiment will require
Zealand Pharma to manage its carbon foot-
print. Inability to do so could lead to compli-
ance issues and investor dissatisfaction.
Mitigation
Zealand Pharma’s direct environmental foot-
print is considered relatively low, mainly due
to the outsourcing of investigational medicinal
product to third-party manufacturers. When
selecting and evaluating contract manufac-
turing organizations, we have included envi-
ronmental criteria as part of our Supplier
Code of Conduct to ensure standards are met
and climate footprint is minimized. We have
launched an ESG strategy and, among other
things, estimated a CO2 baseline while setting
proper decarbonization targets.
Legal, patent, and
compliance risk
Risk
If we or our partners were to face infringe-
ment claims or challenges by third parties,
an adverse outcome could subject us or our
partners to significant liabilities to such third
parties or lead to the withdrawal of our prod-
ucts or product candidates. This could lead us
or our partners to curtail or cease the devel-
opment of some or all of their drug product
candidates or cause our partners to seek legal
or contractual remedies against us, potentially
involving a reduction in the royalties due to us.
Mitigation
Our patent department works closely with
external patent counsels and partners’
patent counsels to minimize the risk of patent
infringement claims as well as to prepare
any patent defense should this be necessary.
Our employees receive training and updates
on policies regarding the correct and lawful
management of internal and external intellec-
tual property.
Regulatory environment
Risk
The regulatory approval processes of the
U.S. Food and Drug Administration (U.S. FDA),
the European Medicines Agency (EMA), and
other regulatory authorities can be lengthy
and inherently unpredictable. If we or our
collaboration partners are ultimately unable
to obtain regulatory approval for internal or
out-licensed product candidates, our business
could be substantially harmed.
Mitigation
Our regulatory department works closely with
external consultants and regulatory agents to
develop regulatory strategies. We also engage
in meetings with regulatory authorities to
ensure that there is alignment on the regula-
tory strategy and trial requirements.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
44
Shareholder information
We are listed on Nasdaq Copenhagen under the ticker symbol ZEAL.
Core share data
Denmark
Number of shares
at Dec. 31, 2024
71,023,871
Listing
Nasdaq Copenhagen
Ticker symbol
ZEAL
Index memberships
OMXCopenhagen25
STOXX Europe 600
Change in number of shareholders during 2024
The number of registered shareholders in Zealand Pharma
increased to 49,575 at December 31, 2024, from 36,798 at
December 31, 2023.
Ownership
The following shareholders are registered in Zealand Pharma’s
register of shareholders as being the owners of a minimum of
5% of the voting rights or a minimum of 5% of the share capital
(one share equals one vote) at February 20, 2025:
ș Van Herk Investments, Netherlands (9.68% of votes/9.68% of
capital)
ș The Capital Group Companies, Inc., United States (6.20% of
votes/6.20% of capital)
ș Avoro Capital Advisors, LLC, United States (5.62% of
votes/5.62% of capital)
Note to U.S. investors
Zealand Pharma may become a passive foreign investment
company (PFIC) which could result in U.S. federal income tax
consequences to U.S. investors.
At December 31, 2024, the nominal value of our share capital
was DKK 71,023,871, divided into 71,023,871 shares with a
nominal value of DKK 1 each.
In 2024, the share capital increased by a nominal value of DKK
12.3 million from a directed issue and private placement (DKK
3.76 million), an equity offering (DKK 8.35 million), and exercise
of employee warrants (DKK 0.16 million). All Zealand shares are
ordinary shares and belong to one class. Each share listed by
name in Zealand’s shareholder register represents one vote at
the Annual General Meeting and other shareholders’ meetings.
Institutional shareholders by geography
in 2024 and (2023)
%
Based on Nasdaq Corporate Solutions aggregated
data per December 2024 and December 2023.
United States
Denmark
United Kingdom
Rest of Europe
Rest of World
3 (1)
26 (40)
41 (25)
8 (12)
22 (22)
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
45
Jan 24
Mar 24
Apr 24
May 24
Jun 24
Jul 24
Aug 24
Sep 24
Oct 24
Nov 24
Feb 24
Dec 24
50
100
150
200
250
300
192
98
Financial Calendar 2025
Date
Event
March 27
Annual General Meeting
May 8
Q1 Earnings Release /
Interim Report First Quarter 2025
August 14
H1 Earnings Release /
Interim Report First Half 2025
November 13
Q3 Earnings Release /
Interim Report Third Quarter 2025
All dates are subject to NASDAQ deadlines and reporting require-
ments and may be subject to change
Analyst coverage
Zealand Pharma is followed by the financial institutions and
analysts listed below:
Institution
Analyst
Bank of America
Charlie Haywood
Berenberg
Kerry Holford
BTIG
Julian Harrison
Cantor Fitzgerald
Prakhar Agrawal
Carnegie
Jesper Ilsøe
Deutsche Bank AG
Emmanuel Papadakis
DNB
Rune Majlund Dahl
Goldman Sachs & Co.
Rajan Sharma
Jefferies
Lucy Codrington
J.P.Morgan
James Gordon
KBC Securities
Jacob Mekhael
Morgan Stanley
Laura Hindley
Nordea
Michael Novod
SEB
Thomas Bowers
Van Lanschot Kempen
Suzanne van Voorthuizen
Share price performance in 2024
Index, January, 1, 2024 = 100
Share price performance
The price of Zealand Pharma ’s shares increased by
91.7% during 2024 with a market closing share price
at year-end of DKK 715.5, compared to DKK 373.2 at
year-end 2023.
Annual General Meeting
The Annual General Meeting is scheduled to be held
electronically and in-person on Thursday, March 27,
2025 at 3:00 PM CET. Additional information will become
available at
https://www.zealandpharma.com/
investors/annual-general-meeting/ no later than 3 weeks
before the Annual General Meeting.
Nasdaq Biotechnology Index (NBI)
Zealand Pharma
zealandpharma.com/investors/
READ MORE
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
46
Annex: Recommendations on Corporate Governance
For the financial year of 2024, Zealand Pharma is subject to
the Recommendations for Good Corporate Governance from
2 December 2020, which are available on the Committee on
Corporate Governance's website https://corporategovern-
ance.dk/.
The following table indicates whether Zealand Pharma
complies with the recommendations of the Committee on
Corporate Governance. In line with the ‘comply or explain’
principle, Zealand Pharma has provided explanations if
recommendations are not fully complied with.
Zealand Pharma complies with the Recommendations on
Corporate Governance in all material respects, with notes
on those areas where it has chosen to depart from those
recommendations set out below. Zealand Pharma has chosen
to depart or had provided explanations in respect of the
following areas of the Recommendations:
2.1.1. The Committee recommends that the board of directors,
in support of the company’s statutory objects according to
its articles of association and the long-term value creation,
considers the company’s purpose and ensures and promotes
a good culture and sound values in the company. The
company should provide an account thereof in the manage-
ment commentary and/or on the company's website.
This corporate governance statement has been approved by
the Board of Directors on February 20, 2025
Complies
Not compliant
www.zealandpharma.com/about-us/corporate-governance/
READ MORE
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
47
Recommendation
The company
complies
The company
explains
Why
How
1. Interaction with the company’s shareholders, investors, and other stakeholders
1.1. Communication with the company’s shareholders, investors, and other stakeholders
1.1.1. The Committee recommends that the management, through ongoing dialogue and interaction, ensures that share-
holders, investors, and other stakeholders gain the relevant insight into the company's affairs, and that the board of directors
obtains the possibility of hearing and including their views in its work.
1.1.2. The Committee recommends that the company adopts policies on the company’s relationships with its shareholders,
investors, and, if relevant, other stakeholders in order to ensure that the various interests are included in the company’s
considerations and that such policies are made available on the company’s website.
1.1.3. The Committee recommends that the company publishes quarterly reports.
1.2. The general meeting
1.2.1. The Committee recommends that the board of directors organizes the company’s general meeting in a manner that
allows shareholders, who are unable to attend the meeting in person or are represented by proxy at the general meeting, to
vote and raise questions to the management prior to or at the general meeting. The Committee recommends that the board of
directors ensures that shareholders can observe the general meeting via webcast or other digital transmission.
1.2.2. The Committee recommends that proxies and postal votes to be used at the general meeting enable the shareholders
to consider each individual item on the agenda.
1.3. Takeover bids
1.3.1. The Committee recommends that the company has a procedure in place in the event of takeover bids, containing a
“road map” covering matters for the board of directors to consider in the event of a takeover bid, or if the board of directors
obtains reasonable grounds to suspect that a takeover bid may be submitted. In addition, it is recommended that it appears
from the procedure that the board of directors abstains from countering any takeover bids by taking actions that seek to
prevent the shareholders from deciding on the takeover bid, without the approval of the general meeting.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
48
Recommendation
The company
complies
The company
explains
Why
How
1.4. Corporate Social Responsibility
1.4.1. The Committee recommends that the board of directors adopts a policy for the company’s corporate social responsi-
bility, including social responsibility and sustainability, and that the policy is available in the management commentary and/or
on the company’s website. The Committee recommends that the board of directors ensures compliance with the policy.
1.4.2. The Committee recommends that the board of directors adopts a tax policy to be made available on the company’s
website.
2. The duties and responsibilities of the board of directors
2.1. Overall tasks and responsibilities
2.1.1. The Committee recommends that the board of directors in support of the company’s statutory objects according to its
articles of association and the long-term value creation considers the company’s purpose and ensures and promotes a good
culture and sound values in the company. The company should provide an account thereof in the management commentary
and/or on the company's website.
The company has a formal
staff engagement survey that
is provided to the Board every
year.
The company will work with
advisors to work on addi-
tional areas to develop this
new requirement.
2.1.2. The Committee recommends that the board of directors at least once a year discusses and on a regular basis follows up
on the company’s overall strategic targets in order to ensure the value creation in the company.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
49
Recommendation
The company
complies
The company
explains
Why
How
2.1.3. The Committee recommends that the board of directors on a continuous basis takes steps to examine whether the
company’s share and capital structure supports the strategy and the long-term value creation in the interest of the company
as well as the shareholders. The Committee recommends that the company gives an account thereof in the management
commentary.
2.1.4. The Committee recommends that the board of directors prepares and on an annual basis reviews guidelines for the
executive management, including requirements in respect of the reporting to the board of directors.
2.2. Members of the board of directors
2.2.1. The Committee recommends that the board of directors, in addition to a chairperson, appoints a vice chairperson, who
can step in if the chairperson is absent and who can generally act as the chairperson’s close sparring partner.
2.2.2. The Committee recommends that the chairperson in cooperation with the individual members of the board of directors
ensures that the members update and supplement their knowledge of relevant matters, and that the members’ special knowl-
edge and qualifications are applied in the best possible manner.
2.2.3. The Committee recommends that if the board of directors, in exceptional cases, requests a member of the board of
directors to take on special duties for the company, for instance, for a short period to take part in the daily management of the
company, the board of directors should approve this in order to ensure that the board of directors maintains its independent
overall management and control function. It is recommended that the company publishes any decision on allowing a member
of the board of directors to take part in the daily management, including the expected duration thereof.
3. The composition, organization, and evaluation of the board of directors
3.1. Composition
3.1.1. The Committee recommends that the board of directors on an annual basis reviews and in the management commentary
and/or on the company’s website states
ș which qualifications the board of directors should possess, collectively and individually, in order to perform its duties in the
best possible manner, and
ș the composition of and diversity on the board of directors.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
50
Recommendation
The company
complies
The company
explains
Why
How
3.1.2. The Committee recommends that the board of directors on an annual basis discusses the company’s activities in order
to ensure relevant diversity at the different management levels of the company and adopts a diversity policy, which is included
in the management commentary and/or available on the company's website.
3.1.3. The Committee recommends that candidates for the board of directors are recruited based on a thorough process
approved by the board of directors. The Committee recommends that in assessing candidates for the board of directors – in
addition to individual competencies and qualifications – the need for continuity, renewal, and diversity is also considered.
3.1.4. The Committee recommends that the notice convening general meetings, where election of members to the board of
directors is on the agenda - in addition to the statutory items - also includes a description of the proposed candidates’
ș qualifications,
ș other managerial duties in commercial undertakings, including board committees,
ș demanding organizational assignments and
ș independence.
3.1.5. The Committee recommends that members to the board of directors elected by the general meeting stand for election
every year at the annual general meeting, and that the members are nominated and elected individually.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
51
Recommendation
The company
complies
The company
explains
Why
How
3.2. The board of director’s independence
3.2.1. The Committee recommends that at least half of the members of the board of directors elected in general meeting are
independent in order for the board of directors to be able to act independently avoiding conflicts of interests.
In order to be independent, the member in question may not:
ș be or within the past five years have been a member of the executive management or an executive employee in the company,
a subsidiary or a group company,
ș within the past five years have received large emoluments from the company/group, a subsidiary, or a group company in
another capacity than as member of the board of directors,
ș represent or be associated with a controlling shareholder,
ș within the past year have had a business relationship (e.g. personally or indirectly as a partner or an employee, shareholder,
customer, supplier, or member of a governing body in companies with similar relations) with the company, a subsidiary, or a
group company, which is significant for the company and/or the business relationship,
ș be or within the past three years have been employed with or a partner in the same company as the company’s auditor
elected in general meeting,
ș be a CEO in a company with cross-memberships in the company’s management,
ș have been a member of the board of directors for more than twelve years, or
ș be closely related to persons, who are not independent, cf. the above-stated criteria.
Even if a member of the board of directors does not fall within the above-stated criteria, the board of directors may for other
reasons decide that the member in question is not independent.
3.2.2. The Committee recommends that members of the executive management are not members of the board of directors
and that members retiring from the executive management does not join the board of directors immediately thereafter.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
52
Recommendation
The company
complies
The company
explains
Why
How
3.3. Members of the board of directors and the number of other managerial duties
3.3.1. The Committee recommends that the board of directors and each of the members on the board of directors, in connec-
tion with the annual evaluation, cf. recommendation 3.5.1., assesses how much time is required to perform the board duties.
The aim is for the individual member of the board of directors not to take on more managerial duties than the board member
in question is able to perform in a satisfactory manner.
3.3.2. The Committee recommends that the management commentary, in addition to the statutory requirements, contains the
following information on the individual members of the board of directors:
ș position, age, and gender,
ș competencies and qualifications relevant to the company,
ș independence,
ș year of joining the board of directors,
ș year of expiry of the current election period,
ș participation in meetings of the board of directors and committee meetings,
ș managerial duties in other commercial undertakings, including board committees, and demanding organizational assign-
ments, and
ș the number of shares, options, warrants, etc. that the member holds in the company and its group companies and any
changes in such holdings during the financial year.
3.4. Board committees
3.4.1. The Committee recommends that that the management describes in the management commentary:
ș the board committees’ most significant activities and number of meetings in the past year, and
ș the members on the individual board committees, including the chairperson and the independence of the members of the
committee in question.
In addition, it is recommended that the board committees’ terms of reference are published on the company’s website.
3.4.2. The Committee recommends that board committees solely consist of members of the board of directors and that the
majority of the members of the board committees are independent.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
53
Recommendation
The company
complies
The company
explains
Why
How
3.4.3. The Committee recommends that the board of directors establishes an audit committee and appoints a chairperson
of the audit committee, who is not the chairperson of the board of directors. The Committee recommends that the audit
committee, in addition to its statutory duties, assists the board of directors in:
ș supervising the correctness of the published financial information, including accounting practices in significant areas, signifi-
cant accounting estimates and related party transactions,
ș reviewing internal control and risk areas in order to ensure management of significant risks, including in relation to the
announced financial outlook,
ș assessing the need for internal audit,
ș performing the evaluation of the auditor elected by the general meeting,
ș reviewing the auditor fee for the auditor elected by the general meeting,
ș supervising the scope of the non-audit services performed by the auditor elected by the general meeting, and
ș ensuring regular interaction between the auditor elected by the general meeting and the board of directors, for instance,
that the board of directors and the audit committee at least once a year meet with the auditor without the executive
management being present.
If the board of directors, based on a recommendation from the audit committee, decides to set up an internal audit function,
the audit committee must:
ș prepare terms of reference and recommendations on the nomination, employment, and dismissal of the head of the internal
audit function and on the budget for the department,
ș ensure that the internal audit function has sufficient resources and competencies to perform its role, and
ș supervise the executive management’s follow-up on the conclusions and recommendations of the internal audit function.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
54
Recommendation
The company
complies
The company
explains
Why
How
3.4.4. The Committee recommends that the board of directors establishes a nomination committee to perform at least the
following preparatory tasks:
ș describing the required qualifications for a given member of the board of directors and the executive management, the esti-
mated time required for performing the duties of this member of the board of directors, and the competencies, knowledge,
and experience that is or should be represented in the two management bodies,
ș on an annual basis evaluating the board of directors and the executive management’s structure, size, composition, and
results and preparing recommendations for the board of directors for any changes,
ș in cooperation with the chairperson handling the annual evaluation of the board of directors and assessing the individual
management members’ competencies, knowledge, experience, and succession as well as reporting on it to the board of
directors,
ș handling the recruitment of new members to the board of directors and the executive management and nominating candi-
dates for the board of directors' approval,
ș ensuring that a succession plan for the executive management is in place,
ș supervising executive managements’ policy for the engagement of executive employees, and
ș supervising the preparation of a diversity policy for the board of directors’ approval.
3.4.5. The Committee recommends that the board of directors establishes a remuneration committee to perform at least the
following preparatory tasks:
ș preparing a draft remuneration policy for the board of directors’ approval prior to the presentation at the general meeting,
ș providing a proposal to the board of directors on the remuneration of the members of the executive management,
ș providing a proposal to the board of directors on the remuneration of the board of directors prior to the presentation at
the general meeting,
ș ensuring that the management’s actual remuneration complies with the company’s remuneration policy and the evaluation of
the individual member’s performance, and
ș assisting in the preparation of the annual remuneration report for the board of directors’ approval prior to the presentation
for the general meeting's advisory vote.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
55
Recommendation
The company
complies
The company
explains
Why
How
3.5. Evaluation of the board of directors and the executive management
3.5.1. The Committee recommends that the board of directors once a year evaluates the board of directors and at least every
three years engages external assistance in the evaluation. The Committee recommends that the evaluation focuses on the
recommendations on the board of directors’ work, efficiency, composition, and organization, cf. recommendations 3.1.-3.4.
above, and that the evaluation as a minimum always includes the following topics:
ș the composition of the board of directors with focus on competencies and diversity
ș the board of directors and the individual member’s contribution and results,
ș the cooperation on the board of directors and between the board of directors and the executive management,
ș the chairperson’s leadership of the board of directors,
ș the committee structure and the work in the committees,
ș the organization of the work of the board of directors and the quality of the material provided to the board of directors, and
ș the board members’ preparation for and active participation in the meetings of the board of directors.
3.5.2. The Committee recommends that the entire board of directors discusses the result of the evaluation of the board of
directors and that the procedure for the evaluation and the general conclusions of the evaluation are described in the manage-
ment commentary, on the company’s website, and at the company’s general meeting.
3.5.3. The Committee recommends that the board of directors at least once a year evaluates the work and results of the
executive management according to pre-established criteria, and that the chairperson reviews the evaluation together with
the executive management. In addition, the board of directors should on a continuous basis assess the need for changes in the
structure and composition of the executive management, including in respect of diversity, succession planning, and risks, in
light of the company’s strategy.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
56
Recommendation
The company
complies
The company
explains
Why
How
4. Remuneration of management
4.1. Remuneration of the board of directors and the executive management
4.1.1. The Committee recommends that the remuneration for the board of directors and the executive management and the other
terms of employment/service is considered competitive and consistent with the company's long-term shareholder interests.
4.1.2. The Committee recommends that share-based incentive schemes are evolving, i.e., that they are periodically granted,
and that they primarily consist of long-term schemes with a vesting or maturity period of at least three years.
4.1.3. The Committee recommends that the variable part of the remuneration has a cap at the time of grant, and that there is
transparency in respect of the potential value at the time of exercise under pessimistic, expected, and optimistic scenarios.
4.1.4. The Committee recommends that the overall value of the remuneration for the notice period, including severance
payment, in connection with a member of the executive management’s departure, does not exceed two years’ remuneration
including all remuneration elements.
4.1.5. The Committee recommends that members of the board of directors are not remunerated with share options and
warrants.
4.1.6. The Committee recommends that the company has the option to reclaim, in whole or in part, variable remuneration
from the board of directors and the executive management if the remuneration granted, earned, or paid was based on infor-
mation, which subsequently proves to be incorrect, or if the recipient acted in bad faith in respect of other matters, which
implied payment of a too large variable remuneration.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
57
Recommendation
The company
complies
The company
explains
Why
How
5. Risk management
5.1. Identification of risks and openness in respect of additional information
5.1.1. The Committee recommends that the board of directors based on the company's strategy and business model
considers, for instance, the most significant strategic, business, accounting, and liquidity risks. The company should in the
management commentary give an account of these risks and the company’s risk management.
5.1.2. The Committee recommends that the board of directors establishes a whistleblower scheme, giving the employees and
other stakeholders the opportunity to report serious violations or suspicion thereof in an expedient and confidential manner,
and that a procedure is in place for handling such whistleblower cases.
Corporate Governance
Financial statements
Contents
The big picture
Our business
Sustainability
Zealand Pharma
Annual Report 2024
58
60
Letter from the Corporate Management team
63
General information
76
Environment
83
Social
102 Governance
108 ESG data and accounting policies
Sustainability
Report
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
59
A defining year for
sustainability
2024 was a truly transformative
year for Zealand Pharma as a
business. And, with the launch of
our first dedicated sustainability
strategy, it was also a defining
one.
A WORD FROM OUR CEO AND OUR
CORPORATE MANAGEMENT TEAM
zealandpharma.com/about-us/
our-impact/
READ MORE
Zealand Pharma
Annual Report 2024
60
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
Thorough environmental management,
a commitment to our employees and the
patients we seek to serve, as well as ethical
and responsible business conduct have
always been integrated into our way of
working, but 2024 marks a paradigm shift
with the launch of our first dedicated sustain-
ability strategy. With this, we substantially
increase our efforts to operate responsibly,
build a sustainable organization, and push for
a positive societal development.
Our environmental commitment
In 2024, we calculated our Greenhouse
Gas emissions for the first time. We also
developed a Climate Change Transition Plan
to outline our reduction possibilities and
ensure that our activities are in line with
limiting global warming to 1.5 °C in accord-
ance with the Paris Agreement. As a rapidly
growing company, this can be challenging,
but we remain dedicated to transitioning our
company and working together with our busi-
ness partners to mitigate climate change.
Building a sustainable organization
In 2024, we achieved notable organizational
growth, expanding our number of employees
by 82, an increase of 30% compared to 2023.
Such growth is a challenge for any company.
Therefore, we are humbled that we were able
to maintain our high employee engagement
score from employee surveys during the
year and achieve an even lower employee
turnover than in 2023. We believe this is a
testament to our unique and strong company
culture, and we are incredibly proud that we
can maintain our ‘DNA’ in this transformation.
Focusing on the needs of patients
Our purpose is to change lives with next-gen-
eration peptide therapeutics, and patients
are at the center of everything we do. We are
focused on developing new and better medi-
cations for the many people globally living
with obesity, one of the greatest healthcare
challenges we face as a society. At the same
time, we have a long-standing commitment
to patients living with certain rare diseases.
In 2024, we significantly advanced our pipe-
line of differentiated product candidates in
obesity and inflammation. With our two rare
disease programs for short bowel syndrome
and congenital hyperinsulinism, respectively,
we faced regulatory hurdles but remain
committed to bringing these potential best-in-
class innovative medicines to patients in need
as quickly as possible.
Fostering solid governance and ethical
business practices
Integral to everything we do is being a
trusted business partner and conducting
business in an ethical and responsible way.
However, our business is also changing, and
so is the world around us. Our focus in 2024
has nevertheless been to maintain our high
ethical and compliance standards, while
at the same time developing new, scalable
processes and procedures. We have also
worked to further integrate sustainability
matters into our decision-making and due
diligence processes, and we look forward to
continuing this work in 2025 and beyond.
A look to the future
We look toward the future with enthusiasm,
confidence, and dedication. We are enthu-
siastic about our growth prospects and the
opportunity to leave a positive impact on
society. We have confidence in our innovative
pipeline of investigational product candidates
and their ability to change lives for the better.
At the same time, we remain fully dedicated
to building a sustainable organization and
serving our patients and clinical trial partici-
pants in a sustainable way.
On behalf of the Corporate
Management team
Adam Steensberg
President and
Chief Executive Officer
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
61
Sustainability
highlights
With the launch of our first dedicated
sustainability strategy, 2024 was a defining
year for our work with sustainability. Our
strategy has three main focus areas - our
patients, our people and our operations.
Each pillar includes several sustainability
topics, sets the basis for our efforts, and
constitutes the frame of our sustainability
reporting.
Our
patients
We leverage innovation
to advance the health
and wellbeing of patients
84%
employees (FTEs)
working with R&D
23
active trials with Zealand
Pharma products
Our
people
We foster an engaging
and enriching workplace
for our people
30%
increase of employees
from 2023
8.8
of 10 in employee
engagement score
Our
operations
We take responsibility
for the impact of our
operations
267,000
tCO2e emissions
99%
of emissions coming
from scope 3
Launched Climate Change
transition plan
0
cases or fines in relation to
corruption or bribery
Find all our sustainability data and
accounting policies on pages 108 - 115
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
62
64
Sustainability governance and
accountability
66
Statement on due diligence
67
Strategy, business model, and value chain
69
Double materiality assessment and
material topics
General
information
Disclaimer
While Zealand Pharma is not
legally required to report
according to the Corporate
Sustainability Reporting
Directive (CSRD) and the
European Sustainability
Reporting Standards (ESRS)
before the financial year of
2025, the following report
will follow the structure and
include some key dimensions
of the CSRD and ESRS.
Thus, the following is to be
considered as a voluntary
reporting, not a legally
required “Sustainability
statement”. This Sustainability
report fulfils Zealand Pharma’s
current legal requirements
regarding Corporate Social
Responsibility cf. section 99a
of the Financial Statements Act
Zealand Pharma
Annual Report 2024
63
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
Board of Directors
Audit Committee
Corporate Management
Sustainability Steering Committee
Sustainability
Team
People &
Organization
Operations
Commercial
Finance
Research &
Development
Legal
Sustainability
governance structure
Sustainability governance
and accountability
Zealand Pharma’s purpose is to change lives with next-generation peptide therapeutics,
and working to improve society is at the core of everything we do.
We strive to run a sustainable business. Sustainability and
all sustainability-related matters are owned at the top of the
organization and worked with throughout Zealand Pharma.
The Board of Directors sets the overall Corporate Strategy
for Zealand Pharma as well as our Sustainability Strategy,
while the Audit Committee oversees reporting, ESG policies,
governance, and Zealand Pharma’s ongoing efforts to manage
sustainability-related impacts, risks, and opportunities.
For more information about the composition and diversity of
Zealand Pharma’s Board of Directors and Audit Committee,
we refer to
page 35 of our Corporate Governance section.
GENERAL INFORMATION
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
64
In Corporate Management, sustainability is the responsibility
of our Chief Financial Officer and our Chief People Officer.
Our Sustainability Steering Committee is constituted by our
Chief Financial Officer, Chief People Officer, Chief Operating
Officer, and General Counsel, and is responsible for executing
our sustainability strategy, ensuring that sustainability is
embedded in the organization, as well as assuring legal
compliance. Furthermore, any targets relating to sustainability
impacts, risks, and opportunities are ultimately approved by
the Sustainability Steering Committee.
The daily work with sustainability is led by our sustainability
team. Different departments within Zealand Pharma have
sustainability owners who ensure that sustainability is
integrated into the operations of their departments.
Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management, and
supervisory bodies
To identify which sustainability topics were material to
Zealand Pharma, we have conducted a double materiality
assessment (DMA) (see
page 69 for additional details).
The double materiality assessment was conducted with
assistance from a third party. The Sustainability Steering
Committee was deeply engaged in the process by defining
the objectives, supervising the process, rating different
impacts, risks and opportunities, and validating the
materiality of different sustainability topics. The Board
of Directors ultimately approved the double materiality
assessment and the following sustainability and reporting
strategy.
During 2024, the Board of Directors, through the Audit
committee, supervised the progress of the sustainability
and reporting strategy, and the progress on working with
the identified sustainability topics.
During 2025, the Sustainability Steering Committee will
receive monthly updates from Zealand Pharma’s Head of
Sustainability on the implementation of due diligence in the
organization, progress on different sustainability topics, and
the policies, actions, targets, and metrics to address them.
The Audit Committee will supervise the progress quarterly.
Integration of sustainability-
related performance into
incentive schemes
Since 2022, sustainability goals have been integrated in
Zealand Pharma’s overall Company Goals, which are linked
to our performance-based bonus schemes. All employees
in Zealand Pharma, including Corporate Management,
thus have sustainability goals integrated into their bonus.
Sustainability-related goals account for 10% of the total
bonus.
In 2024, the Sustainability Goals were to develop and
launch a dedicated sustainability strategy, establish a solid
governance around sustainability, build a reporting frame-
work to ensure readiness with the Corporate Sustainability
Reporting Directive (CSRD), and ensure a high response
rate in our employee engagement survey. All goals were
successfully achieved.
For 2025, we have significantly increased our ambition.
In 2025, our goal is to launch a Climate Transition Plan in
line with the goals of the Paris Agreement, establish near-
and long-term targets, and reach the ones set for Zealand
Pharma in 2025. Furthermore, we aim to ensure a high
response rate in our employee engagement survey, continue
our contribution to the scientific community with scien-
tific communications, integrate the OECD Due Diligence
Guidance for Responsible Business Conduct, and ensure
quality and progress on our CSRD reporting for 2025.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
65
Statement on due diligence
GENERAL INFORMATION
Our core strength as a company lies in therapeutic peptide design and development. Our strategy is
to pursue global development and commercialization partnerships that complement and extend our
capabilities to deliver new therapies to patients with unmet medical needs.
Having proper due diligence processes is essential to
identifying key sustainability matters. It is also vital to
ensuring that sustainability-related impacts, risks, and oppor-
tunities are addressed across our value chain.
In our double materiality assessment, we made a deep anal-
ysis of key sustainability topics for Zealand Pharma. We
engaged directly with external stakeholders in our value chain
to identify relevant matters to ensure that our subsequent
sustainability strategy and measures focused on the material
topics and impacts. Through our different policies, actions,
and targets, we work to mitigate these impacts.
Due diligence and our value chain
Similarly, we work to ensure proper due diligence measures
and ethical business conduct, both in ongoing partnerships
and in our selection of future partners. In the partner selec-
tion process, we assess partners’ policies and actions in rela-
tion to ethical business conduct (e.g., anti-money laundering,
anti-bribery, and anti-corruption measures). Furthermore,
we have integrated sustainability into our decision-making
through the screening and selection process of partners to
ensure that actions and ambitions are in line with Zealand
Pharma’s focus on ethical and sustainable business conduct.
Additionally, all business partners are required to sign
Zealand Pharma’s Code of Conduct, adopt measures for
responsible sourcing, adequate health and safety of workers,
and uphold the United Nations Guiding Principles on Business
and Human Rights (UNGP). Furthermore, all employees in
Zealand Pharma are trained in the contents of the Code of
Conduct.
In relation to export control and trade sanctions, we review
and screen partners and indirect business associates based
on existing rules and internal compliance requirements to
ensure partners follow Zealand Pharma’s Internal Export
Control and Trade Sanctions Compliance Program. Corporate
Management, people managers, and certain at-risk employees
have all been trained in the compliance program.
Actions for 2025 – adopting the OECD guidelines
Although we believe our current approach is adequately
ensuring ethical business practice across our value chain, we
recognize the importance of constantly improving our due
diligence processes to ensure that adverse impacts, risks,
and opportunities are identified and addressed. Therefore,
we intend to adopt the recommendations of the OECD Due
Diligence Guidance for Responsible Business Conduct into our
governance procedures in 2025.
This is a key priority for us and adopting the OECD guidelines
is established as a company goal for 2025, impacting the
potential bonus of all Zealand Pharma employees, including
Corporate Management.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
66
Strategy, business model,
and value chain
GENERAL INFORMATION
Our strategy and business model
Zealand Pharma’s purpose is to change lives with next-gener-
ation peptide therapeutics. Our core strength as a company
lies in therapeutic peptide design and development, which has
led to our innovative R&D pipeline of promising candidates
targeting obesity, rare diseases, and inflammation. This focus
is also reflected in our operations, with 84% of employees
working with research and development-related activities.
84%
% of employees (FTEs)
working with R&D in 2024
69%
Operating expenditure (OPEX)
allocated to R&D in 2024
Our strategy is to pursue global development and commer-
cialization partnerships that complement and extend our
innovative capabilities. Strongly focused on innovation, we
develop potential new therapies to address unmet medical
needs, and when relevant, pursue partnerships to ensure that
our product canidates reach as many patients as possible. To
succeed, we collaborate broadly. Key business relationships
include academic and scientific institutions, leading contract
research organizations (CROs), contract manufacturing organ-
izations (CMOs), and distribution and commercialization part-
ners. We have already established partnerships for some of
our pipeline product candidates. Our efforts will continue in
2025 as we seek to maximize patient access to our potential
future innovative treatments.
Dino works in Alliance
Management
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
67
Partnering to secure that patients
have access to our treatments
Two products invented by Zealand Pharma have reached the
market and are commercialized by partners.
One such product is Zegalogue® (dasiglucagon) injection, a
rapid rescue treatment for severe hypoglycemia that was
developed by Zealand Pharma and approved in the U.S. in
March 2021. To achieve our ambition of bringing Zegalogue®
to many more patients around the world, we entered into a
partnership with Novo Nordisk, a global leader in diabetes, for
the manufacturing, distribution, and commercialization of this
product. During 2024, Zegalogue® gained marketing authori-
zation in Europe, and it is expected that over time the product
will be available to patients globally.
As more of Zealand Pharma’s product candidates progress
through our pipeline, we will continue to seek appropriate
partnerships that align with our mission and goals, as we
have done in the past. A good example of a long-standing
partnership is our relationship with Boehringer Ingelheim. In
June 2011, Zealand Pharma entered into a license, research,
and development collaboration agreement with Boehringer
Ingelheim to advance novel dual acting glucagon/GLP-1
peptide receptor agonists for the potential treatment of
patients with type 2 diabetes and obesity. As part of the
agreement, Boehringer Ingelheim obtained global devel-
opment and commercialization rights to the lead drug
candidate, now survodutide. In 2023, Boehringer Ingelheim
initiated a Phase 3 program with survodutide in people
living with overweight or obesity, SYNCHRONIZE™, which
includes three global registrational trials. If these trials are
successful, Boehringer Ingelheim and Zealand Pharma could
be third to market in this new era of weight-loss medica-
tions. In 2024, Boehringer Ingelheim expanded the Phase
3 program into one of the most prevalent obesity-related
diseases, metabolic dysfunction-associated steatohepatitis
(MASH), with two global registrational trials, LIVERAGETM and
LIVERAGETM-Cirrhosis.
The partnership with Boehringer Ingelheim is a prime example
of a fruitful partnership that is not only beneficial to both
companies, but could ultimately benefit a very large popu-
lation of patients globally living with obesity and MASH, by
ensuring availability and access to the medication so that it
may address significant unmet medical needs.
Zealand Pharma core focus
Research
Zealand Pharma core focus
Development
Partner-led
Manufacturing
Partner-led
Distribution
Partner-led
Commercial
execution
about our peptide platform
on page 14
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
68
Our Double Materiality
Assessment
GENERAL INFORMATION
In 2023 we conducted our first double materiality assessment
(DMA), laying the foundation of our sustainability strategy.
Due to a rapid transformation of our company, we have
used 2024 to update and fine-tune the results to accurately
identify material systainability topics and to ensure
alignment with the European Sustainability Reporting
Standards.
In the DMA, Zealand Pharma, together with an independent
third party, analyzed the value chain and business activities
of the company to identify material impacts, risks, oppor-
tunities, and sustainability topics. We also mapped our
stakeholders and engaged with them to ensure their inter-
ests and views were included in the assessment. Besides
internal experts and topic owners, we engaged with affected
stakeholders, which included employees, contract manufac-
turing organizations (CMOs), contract research organizations
(CROs), investors, patients, healthcare practitioners, and
regulators.
Our material sustainability topics can be seen to the right.
These topics constitute the core elements of our sustaina-
bility strategy.
Impact materiality
Financial materiality
Non-material
Financial & impact materiality
Impact materiality
Financial materiality
G1
S3
G3
S7
E1
E1
S2
G2
E6
S6
E4
E7
E5
S5
G5
E8
S1
E2
S1
E2
E3
G4
S4
S10
S8
S9
S10
G1
E3
S2
G5
G4
G3
E6
G2
S9
E4
S3
S8
S7
S6
S5
S4
E5
E7
E8
Material Sustainability Topics
Climate change adaption
Patient privacy and data protection
Employee engagement, dev., and culture
Community engagement
Climate change mitigation
Risk mgmt and ethical business practices
Intellectual property
Formal employee labor rights
Energy management
Animal welfare
Bribery and corruption (excl. HCPs)
Patient access to medicine
Waste management (incl. haz. waste)
Employee health and safety
Patient health and safety
Pollution of air, soil, and species
Ethical and responsible marketing
Supply chain―Health and safety
Supply chain―Labor conditions
Diversity, equity, and inclusion
Biodiversity
Water and wastewater management
Circularity and resource use
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
69
Our patients
We leverage innovation to
advance the health and well-
being of patients
Our people
We foster an engaging and
enriching workplace for our
people
Our operations
We take responsibility for
the impact of our operations
Three pillars of our sustainability strategy
As we strive to become the world's leading peptide drug
discovery and development company, our impact on global
health and society grows. We understand the importance of
operating responsibly and sustainably as we expand our busi-
ness and are committed to serving our patients sustainably.
Through our double materiality assessment, it became
evident that our business model and our core impacts,
risks, and opportunites revolve around three key pillars: our
patients, our people, and our operations. Each pillar includes
several sustainability topics that set the basis for our work
and constitute the frame for our sustainability reporting.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
70
Our
People
DMA
Our
Operations
Our
Patients
Material topics and our
Sustainability Strategy
Our material sustainability topics are clearly linked to the
socially focused pillars of our patients and our people. Our
operations encompass both environmental and governance-
related topics.
As we grow our business, expand our activities, and develop
new products, our business model and value chain will change.
Therefore, we continuously assess how this influences our
material sustainability topics and the impacts, risks, and
opportunities of our business model and value chain.
Due to rapid organizational growth in 2024, we will update
our DMA at the beginning of 2025 and adjust our material
sustainability topics accordingly.
Patient health
and safety
Employee health
and safety
Social
Environment
Social
Governance
Access to
medicine
Employee
engagement,
development,
and culture
Privacy
and data
protection
Ethical and
responsible
marketing
Diversity,
equity, &
inclusion
Climate Change
mitigation
Energy
management
Animal welfare
Intellectual property
Risk mgmt. & ethical
business practices
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
71
Material topics and their link to our strategy and business
model
GENERAL INFORMATION
ENVIRONMENT
Climate change
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy, and
business model
Climate change mitigation and energy management
Own operations
and value chain
ș Zealand Pharma has a negative impact
on the environment through GHG emis-
sions emitted from our own operations
and in our value chain, contributing to
climate change
ș Zealand Pharma's increasing business
activities require additional energy,
thereby increasing our energy demand,
potentially derived from non-renewable
sources, further contributing to climate
change
ș Through our value chain activities,
Zealand Pharma has the opportunity to
influence partners to transition to lower
carbon and energy intensive opera-
tions, thereby contributing positively to
climate change
ș Climate change directly influences
Zealand Pharma's business by poten-
tially eroding the relationship with inves-
tors, partners, or employees because
of insufficient action on climate change,
limiting access to key resources such as
capital or a skilled workforce
ș Growing business activities mean
increased energy demand from Zealand
Pharma and our partners. There is an
increased risk of fluctuating energy
prices due to a higher demand, impacts
of climate change, and geopolitical
instability. This can undermine Zealand
Pharma's profitability
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
72
SOCIAL
Own workforce
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Employee engagement, development, and culture
Own operations
ș Fostering a good working environment
leads to a more engaged workforce,
which increases the well-being and the
quality of life of our employees
ș By focusing on the growth and develop-
ment of our employees, we empower
them to grow as individuals and reach
their full potential
ș Zealand Pharma is in a transformative
period with rapid growth. Maintaining
a strong company culture is essential
for sustainable growth, preserving our
positive impact on our employees, and
ensuring continued engagement, motiva-
tion, and well-being
ș Engaged employees lead to higher
motivation, improved performance,
stronger talent attraction, lower turn-
over, and ultimately, enhanced company
performance
ș Employee development and growth lead
to a more skilled workforce, higher moti-
vation and engagement, and ultimately
yield better treatment opportunities for
patients
ș A strong company culture fosters
collaboration, dedication, and growth,
enabling exceptional people perfor-
mance that may ultimately drive innova-
tive healthcare treatments
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Diversity, equity, and inclusion
Own operations
ș Ensuring fair treatment and equal
opportunities, fostering an inclusive
environment, and embracing diverse
teams directly impacts the lives of
our employees, especially those from
minority groups, and contributes posi-
tively to society as a whole
ș A focus on diversity, equity, and inclu-
sion directly enhances our business
by driving more innovative solutions,
increasing engagement and productivity,
and expanding our access to talent.
Consequently, diversity, equity, and
inclusion benefit both our company and
the patients we serve
Health and Safety
Own operations
ș Failure to mitigate risks can negatively
impact the safety and well-being of our
employees
ș Having a safe physical and mental work
environment are critical components of
a successful and sustainable workplace.
Without it, our company will be nega-
tively impacted through lower engage-
ment, poorer performance, and higher
employee turnover
SOCIAL
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
73
SOCIAL
Patients
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Patient health and safety
Own operations
and value chain
ș With investigational medicine, there is a
risk of negatively impacting patients' and
trial participants' health and safety
ș Our products have the opportunity to
help patients live better, healthier lives
ș Keeping our patients and trial partici-
pants safe is fundamental to the trust
in our business and products and is
instrumental to our current and future
business success
Access to medicine
Own operations
and value chain
ș We aim to have a positive impact on
patients and society by developing new,
innovative medicines to meet patients’
unmet medical needs and making these
medicines available to patients
ș We are focused on developing differ-
entiated treatment options for people
with overweight or obesity that cater to
the heterogeneity and complexity of the
disease
ș By adressing rare diseases like congen-
ital hyperinsulinism and short bowel
syndrome, we can positively impact the
lives of those affected by these diseases
ș We embrace the opportunity to leverage
partnerships for development and
commercialization to ensure better
access to medicines through faster
advancement and broader distribution
ș Ensuring that patients have access to
our medicine is essential to our business
success
ș Addressing the unmet medical need for
better and more effective treatment
options for overweight and obesity
allows us to potentially positively
impact public health through such new
innovations
ș Developing effective therapies for rare
diseases adressses patient populations
with high unmet medical needs, allowing
us to change lives with our innovative
peptide therapies
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Ethical and responsible marketing practices
Own operations
and value chain
ș Failure to ensure ethical and responsible
marketing and accurate information
about the products' uses, benefits,
potential risks, and safety, could poten-
tially harm patients
ș Ensuring ethical and responsible
marketing practices and communication
is important to maintain legal compli-
ance and ensure the trust stakeholders
have in our company
Patient privacy and data protection
Own operations
and value chain
ș Through our activities we have access to
sensitive medical information. Potential
misconduct and breaches can negatively
impacts our patients
ș Breaches within the value chain or
Zealand Pharma’s own operations can
lead to loss of trust from patients and
partners, direct harm to patients, legal
consequences, financial penalties, and
significant reputational damage
SOCIAL
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
74
GOVERNANCE
Business conduct
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Risk management and ethical business practices
Own operations
and value chain
ș We rely on partnerships, and in our
value chain, we risk engaging with
partners who do not adhere to our high
standards for ethical and responsible
business conduct. Solid governance
procedures for our own operations and
value chain are important to mitigate any
risks or potential negative impacts
ș Through our value chain activities, we
have an opportunity to drive a positive
change towards more sustainable envi-
ronmental practices, better adherence
to human rights, and generally better
business practices that benefit society
ș Zealand Pharma operates in a heavily
regulated industry, and solid govern-
ance, safeguards, and controls to avoid
adverse outcomes from our business
are critical for both legal compliance
and ensuring our reputation as a trusted
business and scientific partner
ș We rely on partnerships to ensure that
innovative treatments we develop can be
accessed by patients. Ensuring ethical
and responsible business conduct is
instrumental to our continued success
and legal compliance
Location of
topic
Why is it material
to Zealand Pharma
Link between the topic, our strategy,
and business model
Intellectual property
Own operations
and value chain
ș Effective intellectual property manage-
ment is crucial to ensure continuous
innovation to develop new treatment
possibilities that meet unmet medical
needs of patients and provide increas-
ingly safer medicines
ș Protecting and respecting intellectual
property is essential for fostering inno-
vation and maintaining competitiveness.
Failure to do so will hinder new research
and development opportunities, stifling
innovation and reducing the availability
of new treatments
Animal welfare
Own operations
and value chain
ș When Zealand Pharma or any of our
business partners perform animal
studies, it directly impacts the labo-
ratory animals. Through our work and
engagement with value chain partners,
we do not only have a responsibility for
ensuring ethical treatment of animals,
we also have an opportunity to enforce
improved treatment of laboratory
animals and higher, more ethical welfare
standards across our value chain
ș Patient safety must never be compro-
mised, and animal studies are crucial
for ensuring the safety and efficacy of
new treatments before they are used in
humans
ș Both Zealand Pharma and some of
our partners conduct animal studies.
Zealand Pharma must ensure the highest
possible animal welfare in these studies
GOVERNANCE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
75
77
Introduction
78
Climate change mitigation
and energy management
Environment
Zealand Pharma
Annual Report 2024
76
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
Introduction
Materiality for environmental topics and their interaction
with Zealand Pharma’s strategy and business model
At Zealand Pharma, we take responsibility to minimize both
our direct environmental impact and our indirect impact
through collaboration with partners across the value chain. In
our double materiality assessment, we performed an in-depth
analysis of our environmental impacts. Here we found that
climate change and energy management are where we have
the largest impact and where we have the largest opportunity
to make a positive difference in our value chain. Hence, this is
considered a material topic to us.
We also found that because we mainly perform R&D in
laboratories and have ordinary office activities, the environ-
mental impacts in relation to pollution, substances of concern,
biodiversity, water usage, and waste were minor. Due to this,
all these topics were considered immaterial. As an example,
we only produced around 50 metric tons of waste in the entire
year of 2024. Similarly, our collaboration with value chain
partners is currently focused on R&D and not full-scale manu-
facturing and distribution. The environmental impacts hereof
in relation to pollution, substances of concern, biodiversity,
water, and waste are also considered immaterial.
Although these are considered immaterial topics, we still want
to take ownership. Therefore, we have several initiatives to
reduce the impact of our own operation, e.g., through waste
reduction initiatives, water-savings investments, food waste
reduction, and in our sourcing of raw materials. Similarly for
our current and future collaborations with CMOs, we set high
environmental requirements, e.g., in relation to proper waste
management systems, water reduction and reusage, as well as
pollution reduction.
Furthermore, climate change adaptation is currently not
considered material due to our assets mainly being in the form
of know-how and intellectual property, and because full-scale
manufacturing and distribution of products are not yet
established. This means a generally low risk in relation to
climate change, and the topic is therefore not currently consid-
ered material.
We continuously monitor the scale and scope of our environ-
mental impacts.As we grow as a company and engage with
more value chain partners who will manufacture and distribute
products, we will reassess whether additional sustainability
topics are material for us and if they should be included as
individual topics in our sustainability strategy and reporting.
Based on the above, our material environmental sustainability
topics are climate change mitigation and energy management.
ENVIRONMENT
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
77
Climate change mitigation and energy management
OUR APPROACH AND POLICIES
Climate change mitigation and energy management are key
parts of our sustainability strategy. Although Zealand Pharma
is a relatively small company in terms of number of employees
and environmental footprint, we engage in several activities
across our value chain to take responsibility and act to lower
our emissions.
Developing a transition plan
We have, in 2024, developed a Climate Change Transition Plan
that outlines our efforts for climate change mitigation and
proper energy management. The objective of our plan is to
transition our company and ensure that our activities are in
line with limiting global warming to 1.5 °C in accordance with
the Paris Agreement.
Establishing our baseline and setting reduction targets
We have established 2024 as our baseline year. 2024 was
truly transformative to Zealand Pharma and we believe that
2024 captures our true climate responsibility. This is particu-
larly seen in the significant growth of excess liquidity invested
in marketable securities and increased research and devel-
opment activities, leading to higher purchased goods and
services emissions compared to 2023 (See our Greenhouse
Gas Inventory for 2023 and 2024 on the next page).
We believe this level of transparency and completeness
is essential for demonstrating our genuine commitment to
emissions reduction, while also leading to higher absolute
near- and long-term reduction targets, due to a higher base-
line value. This approach is also in line with the guidelines of
the Science Based Targets initiatives (SBTi).
Our transition plan as well as our reduction targets are set
to be finalized in Q1 2025 upon approval from the Board of
Directors. We also plan to commit formally to the SBTi and to
submit an application for approval in 2025.
This work is instrumental to us, hence launching a transi-
tion plan and completing our immediate near-team targets
for 2025 has been established as a Company Goal, directly
linking them to the annual bonus scheme of all employees in
Zealand Pharma, including Corporate Management.
ENVIRONMENT
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
78
Key climate-related data points
Metric
Unit
2024
2023
Energy
Total energy consumption related to own operations
mWh
935
916
Greenhouse Gas emissions
Gross Scope 1 greenhouse gas emissions
Metric tonnes CO2e
145
144
Gross location-based Scope 2 greenhouse gas
emissions
Metric tonnes CO2e
17
56
Gross market-based Scope 2 greenhouse gas emissions Metric tonnes CO2e
0
23
Gross Scope 3 greenhouse gas emissions
Metric tonnes CO2e
266,412
73,757
Total GHG emissions location based
Metric tonnes CO2e
266,575
73,957
Total GHG emissions market based
Metric tonnes CO2e
266,557
73,923
Scope 3 categories
Unit
2024
2023
% change
from 2023
Gross Scope 3 greenhouse gas emissions
Metric tonnes CO2e
260,449
58,482
345%
1. Purchased goods and services
Metric tonnes CO2e
42,712
19,484
119%
2. Capital goods
Metric tonnes CO2e
536
434
23%
3. Fuel- and energy-related activities
(not included in Scope 1 or 2)
Metric tonnes CO2e
35
39
-11%
4. Upstream transportation and
distribution
Metric tonnes CO2e
289
8
3535%a
5. Waste generated in operations
Metric tonnes CO2e
4
3
24%
6. Business travel
Metric tonnes CO2e
577
462
25%
7. Employee commuting
Metric tonnes CO2e
254
134
89%
9. Downstream transportation and
distribution
Metric tonnes CO2e
515
747
-31%
12. End-of-life treatment of
sold products
Metric tonnes CO2e
0.05
0.31
-84%
15. Investments (Total) b
Metric tonnes CO2e
221,492
52,446
322%
15a: Investments
(Scope 1 & 2 of investments)
Metric tonnes CO2e
6,219
4,716
32%
15b: Investments
(Scope 3 of investments)
Metric tonnes CO2e
215,272
47,729
351%
a Increase is due to a better classification/data quality in 2024 compared to 2023. In 2023, this was mainly accounted for in “Purchased goods
and services”
b To follow the best practice recommendations of the GHG protocol Category 15: Investments, Zealand Pharma includes the relative scope 3 car-
bon emissions of our investments into our total carbon emissions. The increase in investment emissions from 2023 to 2024, is due to significant
capital raises in 2024 of DKK 8.5 billion (USD ~1.2 billion) from which excess liquidity was subsequently placed in marketable securities.
Find our full table of data points and
accounting policies on page 108 - 115
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
79
Key actions from our climate change transition plan
Scope
2024
tCO2e
2023
tCO2e
High level overview of decarbonisation levers
Scope 1
145
134
ș Transition to electric vehicles as leases expire
(1-3 years)
ș Low carbon heating solutions in current and new office
spaces (1-5 years)
ș Replace refrigeration units with low-GWP
(Global Warming Potential) alternatives when feasible
(1-10 years)
Scope 2 Location Based
17
56
ș Implement energy efficiency measures
Scope 2 Market Based
0
23
ș Maintain 100% renewable electricity through
Guarantees of Origin purchases
ș Consider Power Purchasing Agreements for additional
climate impact
Scope 3
266,412
73,757
Investment Portfolio:
ș Explore target-setting
frameworks for emission
reductions
ș Establish investment
policy on emissions
reduction
Supply Chain:
ș Focus on top 25
suppliers (89% of
emissions)
ș Evaluate supplier
engagement approaches
to collect activity-based
data in the value chain
Our emissions and key reduction levers
Our 2024 greenhouse gas (GHG) emissions demonstrate a
clear concentration in Scope 3 emissions, which represent
over 99% of our total carbon footprint.
Scope 1 and 2
Our Scope 1 emissions (145 tCO2e) primarily come from our
building heating systems, which account for 94% of these
emissions. We have identified clear pathways for reduction,
including ensuring that low-carbon heating solutions such as
heat pumps or district heating are incorporated into current
and potentially new office spaces. For our vehicle fleet, which
accounts for 5% of Scope 1 emissions, we are already now
transitioning to electric vehicles as existing leases expire.
For Scope 2 emissions, we maintain our procurement of
renewable electricity through Guarantees of Origin, resulting
in zero market-based emissions in 2024. While our loca-
tion-based emissions are 17 tCO2e, we continue to explore
energy efficiency measures in our operating sites. We believe
these operational emission reduction strategies demon-
strate our commitment to climate action in areas under our
direct control, while also delivering operational cost benefits
through improved energy efficiency and reduced transport
costs in company vehicles.
Main Scope 3 categories
Our investment portfolio (GHG protocol, Category 15) and
supply chain (GHG Protocol, Category 1), constitute 83% and
16% of Scope 3 emissions, respectively, representing our
largest emissions sources and greatest opportunities for total
emissions reduction.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
80
For our investments, we are working to improve data quality,
explore appropriate target-setting frameworks, and develop
an investment strategy that emphasizes lower carbon emis-
sions. In our supply chain, we recognize the need to first
establish robust data collection and analysis processes to
enable effective action. For our supply chain emissions,
we are initially focusing on enhancing our understanding of
our top 25 suppliers, which account for up to 89% of our
supply chain emissions. We plan to evaluate various supplier
engagement approaches, including potential participation in
established frameworks such as CDP Supply Chain, to better
understand and influence our value chain emissions. This
foundation will position Zealand Pharma to develop more
targeted reduction strategies while strengthening our business
relationships and market position.
Other scope 3 categories
While the remaining Scope 3 categories (GHG Protocol,
Category 2, 3, 4, 5, 6, 7, 9, and 12) contribute to less than 1%
of Zealand Pharma's total carbon footprint, collectively they
amount to approximately 2,200 tCO2e, which is meaningfully
larger than our Scope 1 and 2 emissions combined. Although
these emissions fall below the Science Based Target initiative's
materiality threshold, their relative scale makes them relevant
for targeted reduction efforts.
Business travel and employee commuting (830 tCO2e) repre-
sent a highly visible area for employee engagement in our
climate initiatives. We will therefore be implementing sustain-
able travel policies and enhanced monitoring systems while
maintaining business effectiveness. Similarly, we will inves-
tigate opportunities for lower-impact employee commuting.
Transportation and distribution activities (804 tCO2e) will
be addressed through improved data collection and carrier
engagement, aligning with our broader supplier engagement
strategy of increasing energy efficiency and lower emissions.
Capital goods emissions (536 tCO2e) will be incorporated
into a broader supplier engagement program for Purchased
Goods and Services, leveraging overlap in suppliers and
procurement processes. Fuel and energy-related emissions
(35 tCO2e) will be addressed through our Scope 1 and 2
reduction activities. For operational waste and end-of-life
emissions (4 tCO2e), we are implementing targeted reduc-
tion strategies that align with our broader environmental
management objectives. We expect to significantly increase
our patient reach and number of marketed products and thus
have significantly higher end-of-life emissions. Therefore, we
are already now engaging with value chain partners to ensure
fewer components as well as better reusability and recycla-
bility of our products and enable better end-of-life treatment.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
81
OUR ACTIONS
Actions for 2024
ș Calculated our first Greenhourse Gas inventory for 2023
and 2024
ș Established 2024 as emissions baseline year to better
reflect current business model and operational scope
ș Developed a Climate Change Transition Plan to outline our
reduction possibilities and ensure our activities are in line
with limiting global warming to 1.5 °C in accordance with the
Paris Agreement
ș Conducted an employee commuting survey to understand
scope 3 emissions
ș Procured 100% renewable electricity through Guarantees of
Origin
ș Identified top 25 suppliers accounting for 89% of supply
chain emissions through spend analysis
ș Sourced activity data for the majority of business travel
emissions
Looking ahead
Minimizing our environmental impact has always been impor-
tant to our company, but the transition plan represents a
paradigm shift for Zealand Pharma in relation to our work with
climate change mitigation and energy management. We will be
investing heavily in the area, with future actions and initiatives
to include:
ș Finalizing transition plan with near- and long-term targets
and detailed emissions reduction pathways across the value
chain
ș Committing and submitting to the SBTi
ș Transitioning company vehicle fleet to electric vehicles as
existing leases expire
ș Implementing low-carbon heating solutions (heat pumps or
district heating) in current and new operating sites
ș Enhancing data collection and analysis processes for value
chain emissions
ș Establishing supplier engagement frameworks and explore
participation in reporting platforms like CDP Supply Chain
ș Focusing on improving data quality from top 25 suppliers
who represent 89% of supply chain emissions
ș Creating comprehensive emissions tracking capabilities for
investment portfolio
ș Maintaining 100% renewable electricity procurement
through Guarantees of Origin
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
82
84
Own employees
94
Our patients
Social
Crosby was born with
congenital hyperinsulinism
Zealand Pharma
Annual Report 2024
83
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
Own employees
Introduction
Material topics for our own workforce
and their interaction with Zealand
Pharma's strategy and business model
Zealand Pharma’s purpose is to change lives
with next-generation peptide therapeutics.
Our core strength lies in the design, develop-
ment, and innovation of therapeutic peptides.
Our employees are instrumental in fulfilling
our purpose and executing our strategic
vision.
Establishing a sustainable working environ-
ment is vital. To guide our efforts, we have
identified three material topics as focal points:
• Employee engagement, development,
and culture
• Diversity, equity, and inclusion
• Health and safety
All three topics not only have a meaningful
impact on our employees’ lives but are also
directly linked to our strategy and business
model.
SOCIAL
Dorte works in IT
Rikke works in Facility Operations
Frederik works in Supply Chain & Sourcing
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
84
Characteristics of Zealand Pharma's employees
The Zealand Pharma family continues to grow. We started
2024 with 273 employees and we ended 2024 with 355
employees, which is an increase of 30%.
We consider our employee base to be quite diverse, with many
different nationalities and a good representation of various
age groups. In 2024, we had a particular focus on recruiting
younger individuals with less professional experience,
offering them training and development opportunities while
also gaining valuable insights from their perspectives. We
are proud to have almost doubled the number of employees
under 30. As a proportion of the entire workforce, this group
of employees increased from 6.5% in 2023 to 9% in 2024. We
have an international working environment with 25 different
nationalities represented.
In 2024, 26 employees left Zealand Pharma and the turnover
rate of 7.3% for the year is considered low. This showcases
Zealand Pharma’s ability to attract and retain highly skilled
professionals, even in a highly competitive market.
Engagement with workers about impacts, channels to raise
concerns, and our efforts to remediate negative impacts
At Zealand Pharma, we actively engage with our employees
to identify actual and potential impacts. We provide multiple
channels for employees to raise concerns and collaborate
with management, and we have established processes to
address and remediate any negative impacts.
The Board of Directors consists of seven shareholder-elected
members and four employee-elected members. The
employee-elected members are an important link between
the Board of Directors and our employees, guaranteeing that
the voices of our employees are heard. Together with the rest
of the Board, they ensure that the strategic objectives and
goals of the shareholders, management, and employees are
aligned.
We conduct an Employee Engagement Survey annually, comple-
mented by a pulse-survey during the year. The surveys are
completely confidential and employees can provide feedback
on topics such as motivation, career development, corpo-
rate management, their direct managers, work-life balance,
well-being, diversity, equity, and inclusion. Employees are
also encouraged to raise concerns about other topics. People
leaders receive continuous training in leadership and people
management, and based on the survey results, they may be
asked to create action plans to enhance positive impacts and
remediate any potential negative impacts identified.
Zealand Pharma also has a whistleblower system, where
employees and external stakeholders are able to raise
concerns. The whistleblower system is managed by an
independent third party and is fully compliant with the EU
Whistleblower Act1. All reported cases are anonymous and
handled by members of the Board of Directors, Corporate
Management, and our General Counsel. Claims are screened
by the independent third party for potential conflicts of
interest among those responsible for addressing the matter.
2024
2023
Total headcount of own workforce
355
273
Total headcount, Denmark
345
265
Total headcount, United States
10
8
Total headcount, Females
224
162
Total headcount, Male
131
111
Distribution of employees (headcount)
under 30 years old
33
18
Distribution of employees (headcount)
between 30 and 50 years old
191
150
Distribution of employees (headcount)
over 50 years old
131
105
Number of nationalities in own workforce
25
19
Number of employees who have left
the undertaking
26
28
Employee engagement score
8.8 of 10
8.8 of 10
Percentage of employee turnover
7.3%
10.3%
1
Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019
on the protection of persons who report breaches of Union law
about our whistleblower program on page 104
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
85
At Zealand Pharma, we prioritize the health, safety, and well-
being of our employees through several processes and chan-
nels designed to proactively monitor potential impacts and
mitigate risks. We have a well-established Works Council, with
participation from both employees and Corporate
Management to ensure effective communication and coopera-
tion across the organization.
We also have an Occupational Safety and Health Committee
(OSHA), consisting of both employees and Corporate
Management. Each year, we conduct an anonymous working
environment survey where employees can raise concerns
and report potential hazards or incidents, which are then
addressed by our OSHA committee.
Overall, we believe that we have robust channels in place to
identify both actual and potential impacts, along with solid
procedures to remediate negative impacts. There is a high
level of trust and collaboration between management and our
employees. This was reflected in our Employee Engagement
Survey from 2024, where two of the top three highest-scoring
questions were related to the good relationship between
the employees and their immediate manager, as well as the
emphasis on employee well-being.
8.8
Employee engagement score in 2024
Compared to 8.8/10 in 2023
7.3%
Employee turnover rate in 2024
Compared to 10.3% in 2023
Margit is a member of the Works Council and works in
Medicinal & Computational Chemistry
She has been at Zealand Pharma for 25 years
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
86
Employee engagement, development, and culture
Why is the topic material to Zealand Pharma?
At Zealand Pharma, employee engagement, development,
and our company culture are fundamental to both our
business success and the positive impact we have on our
employees. We prioritize continuous training and employee
well-being, which foster development, motivation, and reten-
tion. These efforts contribute to meaningful improvements in
our employees' well-being, while driving the success of our
company.
APPROACH AND POLICIES
Employee engagement and our company culture
2024 was truly a transformative year for Zealand Pharma, as
we grew our workforce by 82 new colleagues, an increase of
30%. We strive to make Zealand Pharma an engaging place
to work, but it can be a challenge to keep a high engagement
during such a transformation. Therefore, we are extremely
proud that we managed to maintain a very high employee
engagement score of 8.8 out of 10 and reduce an already low
employee turnover, from 10.3% in 2023 to 7.3% in 2024.
Ensuring employee engagement is a top priority for our Board
of Directors, Corporate Management, and all people leaders
in Zealand Pharma. Therefore, we monitor our employee
engagement through semiannual surveys. Results are trans-
parently shared with the entire company and action plans are
developed by all people leaders for their respective depart-
ments and teams to maintain and improve engagement,
mitigate risks, and remediate negative impacts.
We believe our high employee engagement, even in trans-
formative times, comes from our very strong company culture
and ways of working. Throughout our 26-year history, we
have built a unique company culture, where employees are
given autonomy to shape their work with a strong focus on
a deeper purpose. We dare to be BOLD to challenge each
other and the status quo. We EMPOWER people to meet their
full potential, we always work as ONE TEAM, and we can be
TRUSTED. This culture not only ensures engagement, it fosters
collaboration, dedication and growth, and enables excep-
tional people performance ultimately fostering innovation and
better healthcare treatment possibilities. Our culture ensures
we can grow sustainably and continue to deliver on our busi-
ness goals, and we work dedicatedly to embed this culture in
everything we do, from onboarding, training, and development
to project management and strategy development.
Furthermore, we ensure employee engagement is high through
flexible work arrangements, attractive working conditions, and
benefits. All employees, except students and trainees, are part
of Zealand Pharma’s bonus scheme. 60% of an employee’s
bonus is tied to overall company goals. This ensures that we
work as one team, encourages collaboration across Zealand
Pharma, and creates alignment with shared strategic priorities.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
87
The remaining 40% is based on personal goals where behavior
and cultural alignment are as important as performance.
This is calibrated thoroughly during our year-end process to
ensure a consistent and fair evaluation of each employee.
Additionally, all employees, except those on time-limited
contracts, have access to our employee equity program.
Additionally, we place a strong emphasis on employee well-
being, offering all employees health insurance, attractive
parental leave options, and the flexibility to work from home
and plan working hours to fit personal lives. Pension contribu-
tions are included in all employees’ pay, except for students.
Furthermore, all employees are offered a semiannual health
check and annual flu vaccination, and access to gym facilities
for all employees that can be used every day of the week.
OUR ACTIONS
Actions in 2024
ș Conducted two employee engagement surveys and devel-
oped action plans for people leaders and their respective
teams where necessary
ș Established a new Leadership Development Program
to further develop the management skills of our people
leaders
ș Established a dedicated talent attraction team and revisited
our onboarding process to enhance the training program
for all new employees. As a result, we grew our number of
employees by 82, a 30% increase compared to 2023
ș Implemented Workday as standardized people management
system to improve systems and processes.
ș Held community breakfasts each Friday morning hosted
by the Corporate Management, keeping the organization
updated, engaging in dialogue, and allowing for questions
and discussions across the entire organization
ș Ensured that new employees get a proper introduction
to Zealand Pharma and our culture through three full
onboarding days and our buddy program
ș Had several employee driven social clubs and events such
as yoga, running club, football team, board games night,
wine club, beer brewing club, ping pong tournament, beers
and ideas events, and much more
Looking ahead
For 2025, our goal is to continue our successful 2024 actions
and maintain our exceptionally high employee engagement
while growing our organization. To achieve this, we will
continue our efforts to ensure an effective onboarding and
monitor and act on our employee engagement score. We will
continue to evolve our Leadership Development program and
further train our people leaders to become better leaders.
OUR APPROACH AND POLICIES
Employee development
Without a skilled workforce, we would not be able to fulfill our
purpose of changing lives with next-generation peptide ther-
apeutics. At Zealand Pharma, we support our employees in
reaching their full potential and focus heavily on continuous
training and skills development. We emphasize on-the-job
training, and our 2024 employee engagement survey reveals
that only 2% of our employees believe they do not learn new
things in their current job. We consider this a testament to
our culture and emphasis on empowering employees to take
on new responsibilities and opportunities to grow.
All employees are part of our annual Growth and Develop-
ment program, where individual development goals and
performance targets are established. Employees and
managers continuously monitor performance with feedback
provided throughout the year. At year-end, targets and goals
are evaluated jointly, influencing individual bonus schemes.
Individuals are consistently supported in their development,
and offered tools for job-specific development, on-the-job
learning, knowledge sharing, and opportunities to attend
conferences, university courses, e-learning sessions, and
internal mentoring programs. Furthermore, we have imple-
mented a Talent Review and Succession planning framework
for leaders to ensure stronger organizational robustness,
better talent development, and enhanced short- and long-
term growth and development opportunities for employees.
With 84% of our employees working with R&D, training and
skills development in this field is a particular focus for us. We
emphasize growth through hands-on practical learning and
delegation of new responsibilities in a supportive environ-
ment. Our collaboration with universities on trials and publi-
cations, frequent participation in scientific events and confer-
ences, internal knowledge sharing, and educational courses
ensure our employees remain at the forefront of their fields.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
88
OUR ACTIONS
Actions in 2024
ș 100% of employees were part of Zealand Pharma’s Growth
and Development program
ș Established Leadership Development Program and
educated all people leaders in our Leadership Development
Framework, specifically designed for Zealand Pharma and
built on our DNA
ș Developed and launched Talent Review and Succession
planning framework
ș Relaunched our company-wide Mentor Program to ensure
personal growth, knowledge sharing, and skills development
ș Ensured all new employees participated in our three day
introduction program, onboarding all new employees to our
strategy, goals, priorities, culture, and ways of working
Looking ahead
To support the growth and development of all our employees,
we plan to launch a new Career Framework in 2025. This is
to ensure a transparent career architecture structure and
clearer development opportunities. Furthermore, we wish to
continue our internal educational sessions and competency
development, e.g., on project management, negotiation skills,
data literacy, and AI.
Lone and Christin work in
Molecular Pharmacology
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
89
Diversity, Equity, and Inclusion
Why is the topic material to Zealand Pharma?
We value diversity, equity, and inclusion, not only because
we believe that this is the socially responsible thing to do, but
because we believe that ensuring fair treatment and oppor-
tunities for all, and fostering an inclusive environment. Having
diverse teams mean that we arrive at better, more innovative
solutions, eventually benefitting patients, our company, and
society as a whole. Furthermore, a diverse, equitable, and
inclusive culture leads to higher engagement and productivity
and increased access to talent.
OUR APPROACH AND POLICIES
Diversity, equity, and inclusion have always been an integral
part of everything we do. Our approach is formalized in our
Diversity Policy, which has been approved by the Board of
Directors. The policy is available online here:
https://
www.zealandpharma.com/about-us/reports-policies/#di-
versity-policy. To enforce our policy, we focus on three key
areas; our recruitment, core people processes, and training of
people leaders.
Our recruitment process is guided by our Recruitment
Guidelines, which emphasize fostering diversity, equity, and
inclusion, unbiased decision making, and a positive candidate
experience, while maintaining our focus on selecting the most
qualified candidates for each role. We have implemented
practices that reduce unconscious bias and ensure that
job requirements are clearly defined, consistently applied,
and directly linked to the qualifications being assessed. To
promote equity, all shortlists for recruitment will reflect a
balanced representation of the different diversity dimen-
sions. Additionally, we use inclusive language and tone in our
communication to encourage applications from individuals
of all traits and backgrounds, provided they meet the quali-
fications for the role. For management positions, we ensure
a diverse selection panel to enhance equitable and inclusive
decision-making.
We continuously review all our core people processes,
including onboarding, performance management, and
employee training and development, to ensure alignment
with our commitment to diversity, equity, and inclusion. This
fosters an environment where everyone feels valued and
supported. We take a firm stance against bullying, discrim-
ination, and harassment of any kind. We actively monitor
employee experiences and are committed to taking decisive
action to eliminate any cases thay may arise.
Furthermore, we are committed to empowering our leaders
with tools and training to advance an inclusive workplace.
We have integrated an Inclusiveness Index into our annual
employee engagement survey, which provides managers with
valuable feedback on team inclusiveness, helping them contin-
uously improve and create a more equitable and welcoming
environment.
Diversity in management
Diversity, equity, and inclusion are of great importance
to Zealand Pharma, and we recognize the importance of
promoting an equitable and inclusive culture, and ensuring
diversity at all organizational levels, including management.
To us, diversity encompasses dimensions such as race, age,
social origin, ethnicity, religion, gender, experience, and
2024
2023
Board of Directors2
Number of members
7
7
Underrepresented gender
43%
29%
Executive Management3
Number of members
2
2
Underrepresented gender
50%
50%
Other management positions4
Number of members
23
22
Underrepresented gender
35%
45%
2
Shareholder Elected board members of Zealand Pharma A/S
3
Chief Executive Officer and Chief Financial Officer of Zealand Pharma A/S
4
Corporate Management and their direct reports with managerial responsibilities, all actively
employed by Zealand Pharma A/S
about the background of our Corporate
Management team on pages 38 - 39
educational background. We emphasize the strengths of
diversity in both recruiting and internal advancement.
When reporting diversity in management, the Board of
Directors, Executive Management (Zealand Pharma's CEO and
CFO), and other management positions are considered. We
strive to achieve balanced representation of genders at all
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
90
management levels, from the Board of Directors to the heads
of departments.
The Board of Directors consisted of three females and four
males elected at the Annual General Meeting in 2024 and is
therefore regarded as having an equal gender distribution
(underrepresented gender: 43%).
Our Executive Management consists of our CEO and CFO.
With one male and one female, there is an equal distribu-
tion. As of December 31, 2024, Other Management Positions
consisted of 23 employees of which eight were female (35%).
This is a decrease from 2023, where ten of 22 were female
(45%). This decrease is due to an organizational restructuring
made in 2024. As we execute our strategy and experience
natural employee turnover, fluctuations in the gender balance
can occur over the shorter term. However, Zealand Pharma’s
target is to increase the underrepresented gender to at
least 40% by 2026. We aim to achieve this by maintaining
our efforts in balancing gender representation as well as
other diversity dimensions in terms of recruiting and internal
advancement. We will also continue to safeguard a culture
where every employee experiences the same opportunities
for career development and advancement, regardless of their
gender or background for all levels of the organization.
Actions in 2024
ș Established and published a formal Diversity Policy
ș Updated our Recruitment policy/framework to emphasize
our focus on diversity, equity, and inclusion
ș Reviewed and updated core HR processes to ensure better
focus on diversity, equity, and inclusion
Looking ahead
During 2025, we will implement the tool ‘Develop Diverse’
and ensure a minimum inclusive score on all job ads. We will
also continue our review of core people processes and define
areas for improvement. Furthermore, we will offer leadership
development programs focused on the fundamentals of inclu-
sion and the behaviors essential for strengthening inclusive
leadership practices.
Taylor works in Communications
Tina works in Facility Operations
Rasmus works in Finance
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
91
Health and safety
Why is the topic material to Zealand Pharma?
Ensuring our employees’ health, safety, and well-being is
of great importance to Zealand Pharma. A safe physical
and mental work environment are critical components of a
successful and sustainable workplace. The risk for physical
injuries is generally low as most employees work with low-risk
office activities. Zealand Pharma also owns and operates
research laboratories, where various chemicals and organic
solvents are used in peptide syntheses, which pose a small
risk to our employees.
OUR APPROACH AND POLICIES
Employee health, safety, and well-being
It is important for us to foster a safe and supportive work
culture. To support our employees, we work systematically
to maintain a safe, inclusive, secure, and healthy work envi-
ronment. We have designed our policies and governance
systems to promote physical and psychosocial health to
comply with local regulation, including a Works Council
and an Occupational Safety and Health Committee (OSHA
Committee). Here, both management and employees are
represented and matters related to our work environment
are regularly evaluated and goals are set.
We work systematically to mitigate risks of work-related
injuries and ill health, and we maintain a safe and healthy
work environment for employees through our Occupational
Safety and Health policy and operating procedures. We
have a particular focus on training and education, and our
employees are trained in our safety protocol and given the
tools to manage their occupational safety. Quarterly safety
walk throughs of our facilities are performed, and an accident
and near-accident reporting system is in place to maintain our
strong safety track record and safeguard against potential
future accidents.
Special attention is taken in our laboratories, where policies
and operating procedures are enforced to mitigate specific
risks related to chemicals, toxins, waste, equipment, etc.
The guidelines are revised annually. Furthermore, additional
and continuous training of employees working in labs is
performed.
Our U.S based employees are not covered by our Danish
health and safety management system, as they work from
home and are at very low risk. U.S. employees are instead
offered full health insurance and tools to ensure their health,
safety, and well-being while working from home.
We are proud of our efforts to mitigate potential health and
safety risks, and in 2024 we maintained our strong record of
very few health and safety incidents. We had one case of lost
time due to a work-related injury, similar to 2023. We had 1
near-accident case in 2024, and action plans have been made
to optimize our procedures.
2024
2023
Percentage of people in its own workforce who are covered by health and safety management system based on
legal requirements and (or) recognized standards or guidelines
97%
97%
Number of fatalities in own workforce as result of work-related injuries and work-related ill health
0
0
Number of fatalities as result of work-related injuries and work-related ill health of other workers working on
undertaking's sites
0
0
Number of recordable work-related accidents for own workforce
1
1
Rate of recordable work-related accidents for own workforce (accidents/mio working hours)
2.2
2.8
Number of near-accidents
2
1
Number of cases of recordable work-related ill health of employees
0
0
Number of days lost to work-related injuries and fatalities from work-related accidents,
work-related ill health, and fatalities from ill health related to employees
4
5
5
LBK nr 2062 af 16/11/2021 Bekendtgørelse af lov om arbejdsmiljø & BEK nr 65 af 22/01/2024
Bekendtgørelse om systematisk arbejdsmiljøarbejde
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
92
Employee well-being
Zealand Pharma is on a transformative journey. We have a
high-paced working environment and offer our employees
ample opportunities to learn, develop, and take on new
responsibilities. Ensuring the well-being of our employees
during this transformation is crucial to us. Our hybrid working
environment allows our employees to work from home when
it suits their individual needs and specific work tasks, with
necessary equipment provided. We offer all Zealand Pharma
employees and PhD students parental leave benefits that
exceed minimum legal requirements, with up to 26 weeks
of full pay for mothers, fathers, and co-parents, and offer
parents the possibility of child-sick days. We also value our
senior employees, offering them the opportunity to adjust and
reduce their work hours.
All our employees are offered free health checks through
an independent third party, and Zealand Pharma provides
a fulltime accident and health insurance. This includes
free services and guidance from e.g., physiotherapists,
dieticians, chiropractors, psychologists, and psychiatrists,
ensuring improved well-being both inside and outside work.
Additionally, Zealand Pharma has a collective bargaining
agreement on working conditions that covers all employees
in Denmark, with the same conditions extended to our U.S.
colleagues.
In cases where employees unfortunately become ill, such as
through work-related burnout or stress, we have developed a
Sickness Policy. We fully support all employees needing time
off and facilitate a gradual return to work. Employees receive
full pay, and the responsibilities of the individual employees,
managers, and the organization are clearly outlined in our
policy, allowing for a focused recovery and a well-planned
return to work.
OUR ACTIONS
Actions in 2024
ș Revised our chemical handling operating procedure to
ensure safer laboratory practices
ș All new hires received training in our OSHA protocols as
part of their introduction program. Additional training was
offered to employees working in laboratories
ș Conducted employee survey on psychological working envi-
ronment and employee well-being
ș Introduced a new collaboration together with PFA on
improving work-life balance, stress, and well-being
Looking ahead
For 2025, we plan on continuing many of our solid
procedures to maintain our low health and safety risks
and the well-being of our employees. We will further
implement the PFA Framework through communication
and training, and provide additional training for people
leaders on management and employee well-being.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
93
Our patients
Introduction
Material topics for our patients and
their interaction with Zealand Pharma's
strategy and business model
We place patients at the center of everything
we do. Every day, we work to pursue our
mission of transforming patients' lives
through peptide innovations. This is mani-
fested in how we develop our peptide medi-
cines through clinical trials and ensure that
as many patients as possible can receive our
novel treatment solutions, once approved, to
address their unmet needs. Doing so respon-
sibly, ethically, and compliantly is absolutely
instrumental to us and our patients. In our
double materiality assessment we identified
four key sustainability topics in relation to
patients:
ș patient health and safety
ș access to medicine
ș ethical and responsible marketing
ș privacy and data protection
These topics not only have a potential
impact on our patients, but are also directly
linked to both our strategy and business
model.
SOCIAL
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
94
Patient health and safety
Why is the topic material to Zealand Pharma?
With our R&D of innovative candidates, we hope to help
patients live better, healthier lives. Therefore, ensuring the
health and safety of our patients when developing new
medicines is essential. Failure to keep our patients and trial
participants safe not only has a direct negative impact on indi-
viduals, but it is also fundamental to our current and future
business success. Ultimately, the health and safety of our
patients is the cornerstone of everything we do.
OUR APPROACH AND POLICIES
When conducting clinical trials, the safety and rights of our
patients and the integrity of the data generated are essential.
To remain compliant and ensure patient safety, we strive to
integrate quality into all our processes. Both the Development
organization and Operations work in full accordance with
good practices (GxP).
Our Pharmaceutical Quality System is described in our
Quality Manual, which also defines our Quality Policy. Ongoing
evaluation of our quality system is performed through both
internal audits and external inspections from relevant health
authorities, including the Danish Medicines Agency, the
European Medicines Agency, and the U.S. Food and Drug
Administration.
We have an internal Safety Committee that evaluates the
safety data emerging on our products and product candidates
to ensure that our patients are not exposed to unnecessary
risks and that the benefit-risk profile of our medicines remains
positive.
We outsource some of our activities to partners who are care-
fully selected through a rigorous process where we focus on
business ethics and business continuity as well as capability
and capacity of the services provided. We partner with our
suppliers to maintain a strict and permanent oversight on the
activities outsourced, while also auditing our suppliers regu-
larly, to ensure that:
ș the safety and the rights of our patients are not jeopardized
ș the quality of our products is maintained
ș the integrity of the data is maintained
Ultimately, Zealand Pharma remains fully compliant with all
requirements, Good Practice (GxP) systems and processes,
and appropriate standards.
OUR ACTIONS
Actions 2024
ș Conducted GxP and Patient Safety training for all current
and new employees
ș Reviewed and strengthened our Quality Systems and IT GxP
systems
Looking ahead
In 2025, we wish to continue our current efforts to ensure that
patient safety is never compromised. We will continuously
monitor our own and our partners' processes and procedures
while remaining dedicated to our own training and compe-
tency development.
Line works in
Pharmaceutical
Development
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
95
6 Source: World Obesity Atlas 2024 & American Medical Association 2024
about our next-generation obesity
candidates on pages 16 - 19
Access to medicines
Why is the topic material to Zealand Pharma?
Patients are at the heart of everything we do. Developing
new, innovative medicines to address patients’ unmet medical
needs and ensuring that these potential future therapies reach
as many patients as possible are essential, both for our busi-
ness and for the positive impact we as a company can have
on society. The focus of our investigational candidates is to
address unmet medcial needs for patients living with chronic
diseases, including obesity, which has reached pandemic
levels, chronic inflammation, and rare diseases like congenital
hyperinsulinism (CHI) and short bowel syndrome (SBS).
OUR APPROACH AND POLICIES
R&D is at the core of our business as we strive to be the
world’s best peptide drug discovery and development
company. To ensure that our products and product candi-
dates can reach as many patients as possible, our strategy is
to leverage our core expertise in peptide R&D, while pursuing
global development and commercialization partnerships that
complement and extend our innovative capabilities. Since
our founding, we have established several partnerships for
a number of our pipeline candidates, and our efforts will
continue in 2025.
We work tirelessly to advance our investigational candi-
dates into and through clinical trials to support regulatory
approvals, so that they can become available to patients. In
2024, five investigational candidates from our pipeline were
being evaluated in clinical trials and a sixth entered clinical
development. Zealand Pharma sponsered nine active clinical
trials, with partners and academic collaborators sponsoring
an additional 14. When enrolling trial participants, we focus
on diversity of our trial participants, such as gender balance
in our Phase 2 obesity programs, through recruitment
campaigns, as well as selection criteria.
Read more about
our pipeline and trials on page 15-24.
2024
2023
Number of active trials with Zealand
Pharma products
23
14
Scientific communications
44
30
We strongly emphasize transparency in our R&D. To increase
awareness of our scientific advances and to update the
community, we strive to publish our research in scientific
journal publications and attend scientific congresses. In 2024,
we contributed with 44 scientific communications, a significant
increase from 30 in 2023. This was due to results becoming
available from clinical trials and other scientific advances in
2024. It is important for us to continue our scientific contribu-
tions to society, and therefore we have adopted a company
goal for 2025 to sustain a high degree of scientific commu-
nication of at least 35 communications. Our company goals
are part of all employees’ annual bonus schemes, including
Corporate Management's, which we believe underlines our
dedication to this important contribution.
Obesity – addressing the greatest
healthcare challenge of our time
With a profound negative impact on public health, the obesity
pandemic represents one of the greatest healthcare chal-
lenges of our time. During the past 50 years, the prevalence of
overweight and obesity has seen a significant increase, rising
from ~10% to ~40-50%6. With current trends, it is estimated
that 54% of adults, or 3.3 billion people, globally will live with
overweight or obesity by 2035. Alarmingly, the prevalence
rate for children between the ages of 5 and 19 is projected
to be 39% in 20356. Obesity places a substantial burden on
individual patients’ quality of life, adversely impacting phys-
ical health, emotional well-being, and ability to perform daily
activities, which often lead to challenges in mobility, increased
risk of comorbidities, and psychological distress.
For many years, the weight-loss medications available have
had limited efficacy and/or, for many, been associated with
considerable side effects and tolerability issues. Since 2021,
two GLP-1RA-based therapies with better efficacy and safety
profiles have been approved for chronic weight manage-
ment. Yet, the extremely low treatment rate today speaks
to the substantial unmet medical need for more and better
treatment options for the heterogenous population living with
overweight or obesity.
While GLP-1-based therapies are effective in providing weight
loss, they are commonly associated with tolerability issues,
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
96
about our rare disease assets on pages 20 - 22
of the annual report
primarily gastrointestinal, which reduce treatment persis-
tence. For patients who cannot tolerate such therapies, there
are currently no other treatment options available. In order
for people living with overweight or obesity to maintain the
health benefits associated with weight loss, patients need to
sustain the weight loss achieved. To improve patient expe-
rience and ensure a sustained weight loss with a prolonged
increase in quality of life of patients, there is a large unmet
medical need for weight loss medications with similar efficacy
as the GLP-1RA-based therapies but fewer gastrointestinal
side effects. We believe that our long-acting amylin analog
can address this need, representing an alternative to GLP-1RA-
based therapies with the potential to become the future foun-
dational therapy for chronic weight management.
Obesity is a complex disease associated with more than 220
complications and comorbidities and more than 5 million
deaths globally are ascribed to overweight and obesity
every single year8. Given the heterogeneity of overweight
and obesity, we believe that the success of future weight loss
medications will be determined by not only weight loss effi-
cacy but differentiation catering to different unmet medical
needs, for example improved tolerability and/or better effect
on select obesity-related comorbidities. We are therefore
also developing product candidates that add pharmacology
to GLP-1 receptor agonism. Our clinical-stage pipeline
for obesity and obesity-related comorbidities includes a
glucagon/GLP-1 receptor dual agonist, survodutide, partnered
with Boehringer Ingelheim, targeting MASH, a debilitating
liver disease and one of the most prevalent obesity-related
comorbidities, as well as a GLP-1/GLP-2 receptor dual agonist,
dapiglutide, targeting obesity-related low-grade inflammation.
We are investing significantly in the development of our
product candidates targeting obesity and obesity-related
comorbidities. Due to the magnitude of the obesity pandemic
and size of the addressable population, our strategy is to
pursue development and commercialization partnerships
with large pharmaceutical companies that have strong manu-
facturing networks and global commercial reach to reach as
many patients as possible.
Rare disease program – focusing on small patient popula-
tions with substantial unmet needs
Looking to our rare disease programs for congenital hyper-
insulinism (CHI) and short bowel syndrome (SBS), we are fully
committed to reaching these patients and providing treat-
ment for these two devastating, yet often overlooked, rare
diseases.
In rare diseases, patient collaboration is especially critical
to raise awareness and understanding of these diseases and
improve access to care. At Zealand Pharma, we have long-
standing relationships with organizations, including Congenital
Hyperinsulinism International (CHI) and The Oley Foundation
(SBS), and engage with them through various initiatives such as
READ MORE
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
97
funding support and clinical trial collaboration. We also work
with thought leaders and external experts in both disease
areas of CHI and SBS on the design and conduct of clinical
trials.
As many trials within our rare disease programs show positive
results that are vital for trial participants' sustained quality of
life, we support these patients with continued access to inves-
tigational products. An Expanded Access Program (EAP), also
known as an early access or compassionate use program,
is in place to ensure continued treatment for patients who
have benefited from participation during our clinical trials
prior to products being available on the market. The EAP
also supports other patients outside of participation in clin-
ical trials where an investigational medical product may be
considered an appropriate therapeutical option.
In 2023, we submitted a New Drug Application to the U.S.
Food and Drug Administration (FDA) for marketing author-
ization of glepaglutide for the treatment of short bowel
syndrome. Unfortunately, in 2024, the FDA issued a Complete
Response Letter (CRL) for glepaglutide, concluding that
Zealand Pharma’s application did not meet the full require-
ments for substantial evidence to establish the efficacy
and safety of the to-be-marketed dose of twice-weekly
glepaglutide. Despite this setback, Zealand Pharma remains
committed to ensuring that glepaglutide reaches SBS patients
in the U.S. and other geographies as soon as possible, and will
continue the dialogue with the FDA to align on the path toward
obtaining regulatory approval in the U.S.
You can read
more about our plans for glepaglutide in SBS on page 22 of
the annual report.
CHI is very close to our heart, as it is a severe disease
targeting newborns. We are ready to resubmit the NDA for
dasiglucagon in CHI for up to three weeks of dosing and to
submit the required analyses to support use beyond three
weeks. The regulatory submissions are, however, pending
an inspection classification upgrade from a reinspection
of a third-party manufacturing facility. We are conducting
all the necessary pre-launch activities to be able to make
the product available to patients as soon as possible once
approved.
You can read more about our plans for dasi-
glucagon in CHI on page 20 of the annual report.
OUR ACTIONS
Actions 2024
ș Contributed with 44 scientific communications to ensure
our data and research is shared with the public
ș Zealand Pharma and partners are currently conducting 23
active trials to progress our programs in obesity, MASH, and
inflammation
ș Expanded our commercial team and capabilities to ensure
launch readiness of dasiglucagon for the treatment of CHI
and glepaglutide for the treatment of SBS
Looking ahead
During 2025 our focus is on continuing to advance our R&D
pipeline through clinical trials towards registration. We plan to
both progress the clinical trials already initiated and expand
our clinical development program through the initiation of
additional clinical trials.
In late 2024, we initiated a large, comprehensive Phase 2b
trial for petrelintide in participants with overweight or obesity
(ZUPREME-1). The trial will have 33 sites across the U.S.,
Poland, and Romania. To ensure approximate gender balance,
there will be a recruitment limit of up to 60% of either male or
female trial participants. We expect to complete enrollment of
approximately 480 trial participants during 2025. In 2025, we
also expect to initiate a second Phase 2b trial for petrelintide
in participants with overweight or obesity and type 2 diabetes
(ZUPREME-2). We also plan to initiate a large, comprehensive
Phase 2b trial for our other obesity asset, dapiglutide.
We are deeply committed to making our medicines for both
CHI and SBS available to patients in need as soon as possible.
In 2025, we plan to initiate a single Phase 3 trial to provide
confirmatory evidence for a regulatory submission with
glepaglutide in the U.S. and to support regulatory submissions
outside the U.S. and Europe, as we maintain a strong commit-
ment to bringing this medicine to patients who need it globally.
Alongside the regulatory and clinical activities for our rare
disease programs, we continue our efforts to initiate new
strategic partnerships for co-development and commerciali-
zation, to ensure that our medicines reach as many patients as
possible.
Finally, we remain dedicated to our contribution to science
and will continue with scientific communications in 2025.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
98
Ethical and responsible marketing
Why is the topic material to Zealand Pharma?
Ethical and responsible marketing for medicine involves
promoting these products in a manner that, above all, prior-
itizes patient safety, transparency, and compliance with regu-
latory standards. This includes providing accurate information
about a product's uses, benefits, and potential risks, as well
as avoiding misleading claims, off-labeling use of products, or
practices that could harm patients or undermine trust in our
products and our company.
OUR APPROACH AND POLICIES
While Zealand Pharma does not currently have many products
available for marketing to patients, this topic is still important
to us. We work actively to ensure that ethical and responsible
marketing is upheld and that legal compliance is maintained
in our future development and commercialization activities.
Zealand Pharma has several policies and guidelines in place
in relation to product development, pre-commercialization
activities, and corporate communications.
We have firmly established policies and standard operating
procedures for our development, pre-commercial, and
future commercial activities. This ensures that all product
communication, including those for product labeling, meets
legal requirements and has clear professional and patient
information around the uses, benefits, potential risks, and
how to avoid misleading claims. All labeling activities are
monitored and approved by the heads of Regulatory Affairs,
Development, Medical and Science, Patient Safety, Medical
Affairs, Commercial, and Legal. This is to ensure that the
Target Product Profile, Target Product Claims, Company Core
Data Sheets, and Company Core Safety Information match
what is being communicated on the label, match the require-
ments of the country/region that the product is launched in,
and that the communication and our claims are continuously
updated through the product lifecycle. We continuously
monitor our products, and update labeling and communica-
tion should there be new, relevant data, adverse reactions,
user complaints, or if health authorities request updates.
Furthermore, all new and current Zealand Pharma employees
receive training on how to report to the Patient Safety
department. This includes reporting any adverse events or
other special safety situations or product quality complaints
connected to the use of Zealand Pharma marketed medicinal
products or devices.
When it comes to our corporate communications and the
communication from individual employees, we follow a
strict set of guidelines to ensure that no illegal promotional
activities of e.g., clinical candidates, products, projects, or
employees occur. Corporate communication is handled by our
Investor Relations and Corporate Communications depart-
ment to ensure compliant and consistent communication to all
external stakeholders.
In 2024, we developed and launched a company-wide Social
Media Policy, wherein we train current and new employees
on social media communication to ensure that we follow legal
requirements and communicate responsibly and ethically to
the public.
OUR ACTIONS
Actions 2024
ș Launched updated Social Media Policy
ș Activities to ensure compliance as we prepare for commer-
cial launch of rare disease products
Looking ahead
We strongly believe that our current measures, policies, and
procedures ensure both compliance and ethical and respon-
sible marketing. As we look towards 2025 and beyond, we
hope to advance our pipeline and bring several new products
to patients worldwide. This also entails an increased focus
on ethical and responsible marketing and securing accurate
information about the products’ uses, benefits, potential risks,
and avoiding misleading claims, off-label use of products, or
practices that could harm patients. We therefore expect to
further invest in this area to meet the needs of the future.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
99
Privacy and data protection
Why is the topic material to Zealand Pharma?
In the pharmaceutical industry, particularly within R&D, safe-
guarding patient privacy and upholding data protection is
crucial. This involves ensuring that sensitive medical informa-
tion, including patient conditions and clinical trial data, is kept
confidential and secure from unauthorized access, breaches,
and cyber threats. Breaches within the value chain or Zealand
Pharma’s own operations can lead to loss of patient and
partners trust, direct harm to patients, legal consequences,
financial penalties, and significant reputational damage.
OUR APPROACH AND POLICIES
At Zealand Pharma, we work dedicatedly with privacy and
data protection. While patient data has a particular focus for
us, we also ensure data privacy and protection of employees,
partners, and authorities. To safeguard our data, we have
established different procedures for both our own operations
and our value chain partners.
Ensuring proper safeguards in our own operations
Regarding our own operation, we have developed a Data
Protection Policy which lays the foundation for our compa-
ny-wide practices on data privacy. All employees are required
to complete training on our Data Protection Policy, and we
also train our employees annually in Data Protection and the
General Data Protection Regulation (GDPR) via our web portal
for compliance. Any personal data processing activity within
Zealand Pharma is assessed and documented via our Data
Platform System, and we have a Data Protection Life Cycle
Policy that sets the framework for continuous management of
data.
To safeguard our digital assets and ensure the integrity of
our systems, we adhere to the CIS Controls Version 8 (CIS18).
Our cybersecurity program includes continuous monitoring,
infrastructure hardening, penetration tests, disaster recovery
planning, as well as continuous employee training to prevent
breaches and protect sensitive information.
Ownership of our Data Protection Policy, Data Protection
Life Cycle Policy, and our Cyber Security program lies with
Corporate Management and our Board of Directors and audit
committee monitor the state of and procedures regarding
data and cyber security on a continuous basis.
Working together with our value chain
partners to ensure the safety of data
Our strategy is to pursue global co-development and
commercialization partnerships that complement and extend
our innovative capabilities. Subsequently, we outsource many
activities to partners and have several policies and standard
operating procedures in place to secure safe and ethical use
of data, in both new and ongoing partnerships.
Each partner is carefully selected and undergoes a detailed
assessment before any activities begin. A dedicated section
of the assessment covers data protection requirements for
the partners, which are detailed in the contract. For certain
activities, a data protection impact assessment is carried out
as well. We also monitor our partners via spot checks and by
rigorously investigating any identified gaps.
We have additional safeguards in place for partnerships
related to patients and clinical development, Contract
Research Organizations (CROs), Clinical Sites, and other
service providers are contractually obligated to set up tech-
nical and organizational measures to protect patient’s Health
Data. The agreements oblige all parties to use the Health Data
and Human Biological Material only as consented to by the
Subject on the Informed Consent Form or as required by law.
Any Health Data will only be transferred to partners who can
demonstrate that they comply with the GDPR .
Zealand Pharma maintains oversight of Good Clinical Practice
(GCP) IT systems used by the CROs to ensure data integrity
and patient safety. Zealand Pharma is responsible for ensuring
that the validation of computerized systems is done and the
CROs provide adequate documented evidence on the vali-
dated state of the GCP IT systems used.
Additionally, Zealand Pharma performs security risk assess-
ments of new IT software and services procured to ensure
adequate security and safeguards are maintained.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
100
OUR ACTIONS
Actions 2024
ș Additional employees have been brought in to focus on data
protection and cyber security
ș Developed and delivered on our Cyber Security Program.
CIS18 framework assessment performed by an independent
third party shows increased maturity across all security
control dimensions.
ș Independent third party performed audit of the Biometrics
department. No major or critical findings
Looking ahead
We believe that our current efforts in relation to privacy and
data protection are strong, and for 2025 we wish to continue
our efforts to maintain our strong safeguards. We will have a
continued focus on training the organization in Data Protection
topics including how to handle Data Subject Requests and
Data Incidents. We plan to implement more technical solu-
tions in 2025, which will improve processes and heighten
Zealand Pharma’s compliance to Patient Privacy. Additionally,
we will work to ensure compliance with the EU Network and
Information Security Directive 2 (NIS2) as the legislation takes
effect in Denmark in 2025.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
101
103 Governance
Governance
Ivan is Chief Operating Officer
Henriette is Chief Financial Officer
Adam is Chief Executive Officer
Zealand Pharma
Annual Report 2024
102
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
Governance
Introduction
Material governance topics and their
interaction with Zealand Pharma´s
strategy and business model
At Zealand Pharma, we work dedicatedly to
ensure solid governance as well as ethical
and responsible business conduct, and we
take responsibility for the impact of our oper-
ations and our value chain activities. With
our focus on R&D, many activities related to
manufacturing, distribution, and commercial
execution are partner-driven. Due to this,
we manage a complex value chain with addi-
tional risks. It is instrumental to our business
success that this is managed responsibly.
Additionally, we have a huge opportunity
to ensure that our partners and value chain
activities are managed sustainably and
contribute to positive societal development.
In relation to our governance and business
conduct, we have identified three material
topics to focus on:
ș Risk management and ethical business
practices
ș Intellectual property
ș Animal welfare
These topics are closely linked to our
strategy and business model and are impor-
tant for us to succeed in our purpose of
changing lives with next-generation peptide
therapeutics.
GOVERNANCE
Nicole works
in Clinical
Operations
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
103
Risk management and ethical business practices
Why is the topic material to Zealand Pharma?
As a biotechnology company specialized in R&D, we rely on
partnerships to ensure that our innovative treatment possi-
bilities can be accessed by patients. Our reputation as a
trusted business and scientific partner is crucial to our ability
to engage successfully in existing and potentially new part-
nerships. Therefore, having solid governance, risk manage-
ment processes, and policies in place to ensure ethical and
compliant operations across the value chain is not only crit-
ical to our business success, but also an opportunity for us to
make a positive impact.
OUR APPROACH AND POLICIES
Ensuring proper risk management and ethical
business practice internally and in our value chain
As part of our ordinary course of business and conduct, we
strive to operate according to the highest ethical standards.
We work dedicatedly to ensure sound governance and risk
management procedures of our own operations and respon-
sible business conduct for our partners. Therefore, we
ensure that our employees are continuously trained and kept
updated with policies on good business practice, compliance,
insider trading, and appropriate legal management of third-
party intellectual property. We proactively engage in positive
dialogue with all regulatory and advisory authorities and with
stakeholders from relevant industries in order to be inspired
and to continuously improve.
Our approach is anchored in our Code of Business Conduct
and Ethics, as well as our Supplier Code of Conduct.
(Both codes are available online through this link:
https://www.zealandpharma.com/about-us/reports-pol-
icies/#code-of-business-conduct). All Zealand Pharma
employees are continuously trained in these codes. All
contracting parties are obligated to comply with our Code of
Business Conduct and Ethics and Supplier Code of Conduct
and to uphold our principles on data privacy, bribery,
corruption, fraud, human rights, child labor, health and
safety, workers´ rights, and reducing environmental impacts.
Additionally, for business-critical partnerships, e.g., for R&D
and manufacturing, we perform additional due diligence
and set additional requirements for material sustainability
matters, such as greenhouse gas emissions, water and waste
management, and green manufacturing initiates.
Managers and employees are trained in and obligated to
monitor and identify risks and to communicate such risks to
upper management as applicable. Any non-compliance on the
part of the contracting party may necessitate Zealand Pharma
to, among other actions, renegotiate the contract, escalate to
establish a breach of contract, or terminate the contract. All
current suppliers have confirmed adherence to our Supplier
Code of Conduct.
In 2024, we launched our Export Control and Trade Sanctions
Compliance Program ensuring strict compliance with all trade
sanctions and export control regulations. Our procedures
involve both continuous training and awareness raising with
all employees, as well as different compliance measures, such
as business partner screening and audits. Our operations
department reviews partners bi-annually to secure adher-
ence to our Export Control and Trade Sanction Program, our
Business Code of Conduct, and Supplier Code of Conduct.
Our whistleblower program
As part of our program of maintaining a robust ethical
working environment, Zealand Pharma hosts a whistleblower
platform, in full accordance with the EU Whistleblower act.
(This policy is available online here:
https://www.zealand
pharma.com/compliance-hotline/). The whistleblower policy
is reflected in Zealand Pharma’s Employee Handbook and is
further described in a separate policy laying down guidelines
for Zealand Pharma’s whistleblower system. Our platform is
monitored by an external law firm to ensure that issues are
handled independently, and that cases that need to be inves-
tigated by Corporate Management and members of the Board
of Directors are brought to their attention when appropriate.
All employees are introduced to the whistleblower service
when they join the company to ensure that they are able to
use it if the occasion arises, and partners are informed and
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
104
encouraged to use the platform, if relevant. In both 2023 and
2024, we had zero whistleblower cases.
2023
2024
Number of whistleblower cases
0
0
Number of convictions for violation of anti-
corruption and anti-bribery laws
0
0
Amount of fines for violation of anti-
corruption and anti-bribery laws (EUR)
0
0
Number of confirmed incidents of corruption
or bribery
0
0
Number of confirmed incidents in which own
workers were dismissed or disciplined for
corruption or bribery-related incidents
0
0
Number of confirmed incidents relating to
contracts with business partners that were
terminated or not renewed due to violations
related to corruption or bribery
0
0
We take a strong stance against any form of bribery, corrup-
tion, or fraud, and in 2023 and 2024, Zealand Pharma did not
have any confirmed cases nor any dismissals, convictions,
or fines in relation to corruption or bribery. Furthermore, no
contracts with partners were terminated due to violations
related to corruption or bribery.
Our approach to insider trading and fair taxation
As a listed company, we have taken every precaution to keep
all employees, board members, and certain stakeholders
up to date and compliant with our internal rules on insider
trading. We distinguish carefully between those who are listed
on the permanent insiders’ list and those who are exposed
to what is deemed insider information. In the latter case, we
take every precaution to keep an up-to-date list of employees’
knowledge of insider information. All new employees are
introduced to our internal rules and are required to digitally
sign off stipulating that they have read and understood these
rules.
At Zealand Pharma, we believe in being transparent about our
global tax positions and tax policies (available online through
this link:
https://www.zealandpharma.com/about-us/
reports-policies/#company-tax-policy. We are committed to
always paying taxes in due time in the countries in which we
operate in accordance with applicable tax laws and regula-
tions. We aim to keep the business setup as simple as possible
and therefore have a limited number of entities present in
Denmark and the United States. Transactions between the
Group companies are conducted on market terms in accord-
ance with the arms' length principle. In general, we assess that
the risk regarding transfer pricing is limited due to the simple
business structure.
OUR ACTIONS
Actions 2024
ș Launched our Export Control and Trade Sanctions
Compliance Programme
ș Training of current and new employees in our Code of
Business Conduct and Ethics, as well as our Supplier Code
of Conduct
Looking ahead
Through 2025, we will continue with our solid measures and
safeguards to uphold our strong risk management processes
and ethical business practices. It is our aim to further inte-
grate our sustainability strategy and material sustainability
matters into our partner management and due diligence
measures. Therefore, we have a goal of integrating the OECD
Guidelines for Multinational Enterprises into our due diligence
measures e.g., through partner screenings, selection criteria,
contracts, and risk assessments. This has been established as
a core company goal for 2025, impacting the potential bonus
of both management and employees in Zealand Pharma.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
105
Intellectual Property
Why is the topic material to Zealand Pharma?
As a pharmaceutical company heavily focused on R&D,
protecting and respecting intellectual property (IP) is essential
for fostering innovation and maintaining competitiveness. Misuse
of IP and challenges in defending IP can have significant negative
impacts on our business and ability to reach patients.
Within the company's own operations, misuse of IP can simi-
larly impede new research and development efforts, limiting
the company's ability to innovate. Furthermore, the loss of
know-how due to employees leaving poses a risk to defending
the IP base of treatments, eroding treatment exclusivity and
profitability.
Misuse of IP within the value chain can severely hinder new
research and development opportunities, stifling innovation
and reducing the availability of new treatments. Additionally,
the inability to defend the IP base of treatments against
challenges can undermine market exclusivity and erode
profitability.
OUR APPROACH AND POLICIES
Effective IP management is crucial to ensure continuous inno-
vation, to maintain profitability, and to develop new treatment
possibilities to meet unmet medical needs, and we work dedi-
catedly with our own operations and value chain to ensure
proper safeguards and IP management.
In Zealand Pharma, we have developed strict internal guide-
lines for IP management and continuously monitor and
update to suit our operational setup and strategic partners.
The supervision of IP management rests with Corporate
Management and is the responsibility of the Vice President for
IP and our IP department.
Our IP department works closely with an external IP counsel
and our partners’ IP counsel to protect Zealand Pharma
innovations, to minimize the risk of IP infringement claims,
and to mitigate any IP-related risks. Furthermore, all Zealand
Pharma employees receive training and updates on guidelines
regarding the correct and lawful management of internal and
external intellectual property. Through our efforts, Zealand
Pharma has detailed adequate processes for protecting
innovations, for controlling ownership and chain-of-title, and
for securing freedom-to-operate throughout the research and
development process.
In partnerships, collaborations, and other relations to exter-
nals, Zealand Pharma secures clear distribution of back-
ground and foreground IP through relevant agreements. We
contractually require other parties to respect both Zealand
Pharma IP and third-party IP, and IP risks are considered in
our ongoing risk management processes.
OUR ACTIONS
Actions 2024
ș Conducted IP management training with all current and new
employees
ș Expanded our IP department with additional personnel
ș Carried out several IP communication and awareness activ-
ities, including company-wide presentations and smaller
workshops with high-risk departments and personnel. This
has resulted in higher IP awareness with Zealand Pharma
employees.
Looking ahead
We believe that we currently have strong IP management in
Zealand Pharma, and for 2025, we wish to continue our efforts
to maintain strong safeguards. There will be continued focus
on creating increased awareness in the organization, and
we will maintain our emphasis on training new and current
employees with a particular focus on those in high-risk func-
tions. Furthermore, we plan on formalizing our current guide-
lines for IP management into a company-wide policy.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
106
Animal Welfare
Why is the topic material to Zealand Pharma?
Through our research, we have the opportunity to improve
the lives of millions of people. Patient health and safety must
however, never be compromised, and conducting studies with
animals is essential for the development of new medicines.
These studies are crucial for ensuring the safety and efficacy
of new treatments before they are used in humans. We have
an interest and an obligation to ensure the highest animal
welfare standards possible in all studies conducted.
OUR APPROACH AND POLICIES
Ensuring high animal welfare in our development activities is
a top priority for Zealand Pharma, reflecting our commitment
to ethical practices and the well-being of animals. Our Policy
on Animal Ethics and Welfare entails only using animal studies
where no in vitro or in silico alternatives exist. All laboratory
animals used under our responsibility must be treated gently
and with respect, and only purpose-bred animals are used.
We adhere to the principles of the 3Rs (reduce, refine, replace)
and work to integrate these principles in all studies.
We have established an Animal Welfare body that continu-
ously reviews all new protocols and applications for animal
experiments. The Animal Welfare body also assesses new
external partners Zealand Pharma works with in the conduct
of in vivo studies prior to engagement to ensure that they
conform to Zealand Pharma’s high animal ethics and welfare
standards. The assessment is based on a site visit as well as
a questionnaire which is sent to the facility in advance of the
visit.
All in-house animal studies are carried out in accordance with
specific licenses issued by the Ministry of Environment and
Food of Denmark. Danish law stipulates regular inspections
of the animal facilities as well as comprehensive reporting
protocols overseeing experiments conducted during the year,
processed through The Animal Experiments Inspectorate.
Continuous dialogue between animal caretakers, labora-
tory technicians, veterinarians, academic staff, and heads of
departments ultimately ensures the highest animal welfare
standards in all studies conducted. Furthermore, all studies
with laboratory animals sponsored by Zealand Pharma,
conducted with external partners, are completed in accord-
ance with present EU law (Directive 2010/63/EU).
All employees working with laboratory animals have appro-
priate and documented education and training and proac-
tively monitor developments in the field. Veterinary checks of
our animals are performed regularly.
Transportation of laboratory animals, used in in vivo studies
under Zealand Pharma’s responsibility, is only transported
with adherence to the requirements in EU law (Directive
2010/63/EU).
The necessity of animal experiments for our research and
development activities cannot be overstated, which is why
we constantly strive for the greatest vigilance and care in our
treatment of animals.
OUR ACTIONS
Actions 2024
ș Onboarding and training of new and current employees
ș Tunnel handling project and training conducted to improve
handling of all mice, resulting in calmer mice during handling.
Looking ahead
Through our current procedures, we ensure high animal
welfare in our development activities, and in 2025 we plan on
continuing these efforts. As we will no doubt bring in many
new employees into our company, we will have an increased
focus on training and awareness.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
107
109 ESG data and accounting policy
112
Accounting policies
ESG
data and
accounting
policies
Jakob works in Finance
Zealand Pharma
Annual Report 2024
108
Contents
The big picture
Our business
Corporate Governance
Financial statements
Sustainability
ESG Data table and accounting policy
Environment
Metric
Unit
2024
2023
Energy
Total energy consumption related to own operations
Mwh
935
916
Greenhouse Gas emissions
Gross Scope 1 greenhouse gas emissions
tCO2e
145
144
Gross location-based Scope 2 greenhouse gas emissions
tCO2e
17
56
Gross market-based Scope 2 greenhouse gas emissions
tCO2e
0
23
Gross Scope 3 greenhouse gas emissions
tCO2e
266,412
73,757
1. Purchased goods and services
tCO2e
42,712
19,484
2. Capital goods
tCO2e
536
343
3. Fuel- and energy-related activities (not included in Scope
1 or 2)
tCO2e
35
39
4. Upstream transportation and distribution
tCO2e
289
8
5. Waste generated in operations
tCO2e
4
3
6. Business travel
tCO2e
577
462
Metric
Unit
2024
2023
7. Employee commuting
tCO2e
254
134
9. Downstream transportation and distribution
tCO2e
515
747
12. End-of-life treatment of sold products
tCO2e
0.05
0.31
15. Investments (Total)
tCO2e
221,492
52446
15a: Investments (Scope 1 & 2 of investments)
tCO2e
6,219
4,716
15b: Investments (incl. Scope 3 of investments)
tCO2e
215,272
47,729
Total GHG emissions location based
tCO2e
266,575
73,957
Total GHG emissions market based
tCO2e
266,557
73,923
APPENDIX
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
109
Social
Metric
Unit
2024
2023
Employee Characteristics of own workforce
Total headcount of own workforce
Count
355
273
Total headcount, Denmark
Count
345
265
Total headcount, United States
Count
10
8
Number of employee who have left undertaking
Count
26
28
Percentage of employee turnover
Percentage
7.30%
10.30%
Employee engagement, development and culture
Participation score in annual employee engagement survey
Percentage
95%
92%
Engagement score
Rate
8.8 of 10
8.8 of 10
The percentage of employees that participated in regular
performance and career development reviews
Percentage
100%
100%
Diversity, equity and inclusion
Gender distribution in percentage of employees at top
management level (Corporate Management)
% Male/
Female
67% / 33%
67% / 33%
Number of members in other management positions
Count
23
22
Gender distribution in percentage of other management
positions (Male/Female)
% Male/
Female
65% / 35%
55% / 45%
Total headcount, female
Count
224
162
Total headcount, male
Count
131
111
Distribution of employees (head count) under 30 years old
Count
33
18
Distribution of employees (head count) between 30 and 50
years old
Count
191
150
Distribution of employees (head count) over 50 years old
Count
131
105
Number of nationalities in own workforce
Count
25
19
Metric
Unit
2024
2023
Health and Safety
Percentage of people in its own workforce who are covered
by health and safety management system based on legal
requirements and (or) recognised standards or guidelines
Percentage
97%
97%
Number of fatalities in own workforce as result of work-re-
lated injuries and work-related ill health
Count
0
0
Number of fatalities as result of work-related injuries and
work-related ill health of other workers working on under-
taking's sites
Count
0
0!
Number of recordable work-related accidents for own
workforce
Count
1
1
Rate of recordable work-related accidents for own
workforce
Cases/mio
working
hours
2.2
2.8
Number of near-accidents
Count
2
1
Number of cases of recordable work-related ill health of
employees
Count
1
1
Number of days lost to work-related injuries and fatalities
from work-related accidents, work-related ill health and
fatalities from ill health related to employees
Days
4
5
Patient
% of operating expenditure (OPEX) allocated to Research
and development
Percentage
69%
76%
% of employees (FTEs) working with Research and
development
Percentage
84%
85%
Number of active trials with Zealand Pharma products
Count
23
14
Number of scientific communications
Count
44
30
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
110
Governance
Data point
Unit
2024
2023
Corruption and bribery
Number of whistleblower cases
Count
0
0
Number of convictions for violation of anti-corruption and
anti- bribery laws
Count
0
0
Amount of fines for violation of anti-corruption and anti-
bribery laws
EUR
0
0
Number of confirmed incidents of corruption or bribery
Count
0
0
Number of confirmed incidents in which own workers were
dismissed or disciplined for corruption or bribery-related
incidents
Count
0
0
Number of confirmed incidents relating to contracts with
business partners that were terminated or not renewed due
to violations related to corruption or bribery
Count
0
0
Management disclosures
Number of executive members
Count
2
2
Board's gender diversity ratio (shareholder elected)
Ratio Male/
Female
4 / 3
5 / 2
Percentage of independent board members
Percentage
64%
64%
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
111
Accounting policies
APPENDIX
Basis for preperation
Reporting period
Zealand Pharma's reporting period covers 1
January to 31 December. In this report, 2023 and
2024 data is reported.
Reporting scope, boundaries and assumptions
The scope of our sustainability report, the material
sustainability topics and ESG data points reported,
is based on a double materiality assessment (DMA)
conducted by Zealand Pharma. The DMA follows
the specifications of the European Sustainability
Reporting Standards (ESRS). Subsequently, this
report will not include topics and data points
considered immaterial in the scope of our DMA.
While Zealand Pharma is not obligated to report
according to the Corporate Sustainability
Reporting Directive (CSRD) and the ESRS until the
financial year of 2025, many of the ESG data points
reported follow the specifications and application
requirements of the ESRS. None of the ESG data-
points reported for 2023 or 2024 have undergone
limited assurance procedures by an independent
third-party.
Unless otherwise stated, the reported ESG data
is based on the same organisational scope of the
financial statement. Thus, the ESG data includes
consolidated data from the parent company
Zealand Pharma A/S.
If assumptions and/or estimates have been used,
or if there is a difference in acocunting methods
between the reporting years of 2023 and 2024, this
will be outlined in the individual accounting poli-
cies for the respective data points.
Environment
Energy
Total energy consumption, measured in MWh
(LHV), is the consumption of power and natural
gas, petrol and diesel from the site in Søborg,
Denmark where Zealand Pharma has operational
control. 2023 includes a previously controlled US
office site, which was discotinued in 2024.
There is no onsite consumption of any self gener-
ated non-fuel renewable energy and the company
does not operate in any high climate impact
sectors as per its NACE codes.
Greenhouse Gas emissions
All scope GHG emissions are quantified inline with
the principles of the GHG Protocol Corporate
Standard. All GHG emissions are expressed in
metric tons of carbon dioxide equivalent (tCO2e)
using the latest Global Warming Potential values
from the Intergovernmental Panel on Climate
Change. Due to inherent limitations in scien-
tific knowledge, estimation methodologies and
assumptions in scope 3 the reported emissions
data carries some degree of uncertainty.
Scope 1 emissions
Scope 1 emissions comprise direct GHG emissions
from sources owned or controlled by Zealand
Pharma, including natural gas consumption at
facilities, use of company vehicles, and fugitive
emissions from refrigeration and air conditioning
systems. Emissions are calculated by multiplying
activity data (e.g., liters of fuel consumed) by
DEFRA emission factors. Energy consumption is
based on metre readings and invoices. Petrol and
diesel are considered to be 100% mineral blend
and not inclusive of any biofuel blending.
Scope 2 emissions
Scope 2 emissions include indirect GHG emissions
from purchased electricity and heating. These are
calculated using both location-based and market-
based methods. The location-based method uses
average emission factors for the local electricity
grid, while the market-based method reflects
contractual arrangements for electricity purchases
including any renewable energy certificates.
Emission sources result from power consumption
from operational sites and onsite 3rd party EV
chargers. It is not known nor disclosed what the
percentrage of biomass or biogenic CO2 is.
Scope 3 emissions
Scope 3 emissions encompass all other indirect
emissions from Zealand Pharma's value chain.
Material and immaterial categories have been
identified through a screening. Material scope 3
categories include: purchased goods and services,
capital goods, fuel and energy-related activities
not included in Scope 1 or 2, upstream transpor-
tation and distribution, waste generated in opera-
tions, business travel, employee commuting, down-
stream transportation and distribution, end of
life of sold products and investments. Immaterial
scope 3 categories are; upstream leased assets,
processing of sold products, use of sold products,
downstream leased assets, and franchises.
For each category, emissions are calculated using
spend data or activity-based metrics multiplied by
relevant emission factors. Due to the broad nature
of scope 3 emissions and reliance on third-party
data, these calculations inherently involve a higher
degree of estimation and uncertainty compared to
scope 1 and 2 emissions.
The materiality assessment of scope 3 categories
is reviewed annually to ensure all significant emis-
sion sources are captured and align with Zealand
Pharma's operational reality.
Emissions from purchased goods and services
are calculated using spend data from Zealand
Pharma's financial reporting systems. This
produces an estimate of upstream cradle-to-gate
emissions from the production of purchased goods
and services.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
112
Spend based methodology:
Zealand Pharma utilizes the Normative transac-
tional accounting model which classifies each
transaction according to corresponding industry
and economic sector using suppliers' main
industry codes and transactional information. This
information is also used to determine the mapping
of some transactions to upstream transportation
and distribution and business travel.
Spend amounts are converted to EUR using
exchange rates from the transaction date if in
other currencies. The mapped transactions are
then assigned appropriate emission factors from
Exiobase representing emissions per monetary
unit (kgCO2e/EUR). The calculation includes
assumptions about average emissions intensities
within industry sectors.
Emissions from capital goods are calculated using
annual capital expenditure data from Zealand
Pharma's financial systems. The spend on equip-
ment, buildings, vehicles and other capital invest-
ments is mapped to relevant industry sectors
using the spend based methodology. The emission
factors used account for average emissions inten-
sities of capital goods manufacturing within each
sector.
Fuel and energy-related activities encompass all
upstream greenhouse gas emissions (CO2e) asso-
ciated with purchased fuels and energy, beyond
what's covered in Scope 1 and 2 emissions.
Emissions are quantified by first converting energy
usage into kilowatt-hours (kWh), then multiplied
by country-specific emission factors provided
by DEFRA and the IEA. In the absence of coun-
try-specific emission factors worldwide emission
factors are applied. This category accounts for all
upstream emissions, including those from trans-
portation and distribution, related to electricity,
heat, and fuel production.
Zealand Pharma accounts for upstream trans-
portation emissions that result from purchased
products transported or distributed in vehicles
and facilities not owned or controlled by Zealand
Pharma. These emissions are calculated based
on the amount spent using the spend based
methodology.
Emissions from waste generated in operations
account for the CO2e generated from the disposal
and treatment of operational and clinical waste by
third-party providers at company sites. To calcu-
late these emissions, waste weight data obtained
from third-party waste providers is multiplied
by DEFRA's waste-specific emission factors. It is
assumed that clinical waste which requires special
handling is disposed of using combustion.
Business travel emissions are calculated using
third-party travel data, primarily from business
flights. Flights not captured in this category are
quantified using DEFRA emission factors inclusive
of radiative forcing. This category also includes
emissions from other travel-related expenses,
such as hotel stays, which are quantified using the
spend methodology.
Employee commuting emissions result for all
employees commuting to their place of work. They
are calculated from a survey which estimates the
average employee emissions which is then multi-
plied by the number of FTEs. Survey parameters
include the mode of transport (car, bus, train or
light rail), employment duration and the frequency
of travel. Emissions are quantified using emission
factors from DEFRA.
Zealand Pharma accounts for downstream trans-
portation emissions that result from sold products
transported or distributed in vehicles and facili-
ties not owned or controlled by Zealand Pharma.
These emissions are calculated based on informa-
tion extracted from the financial reporting system
and the spend based methodology.
End-of-life treatment emissions include CO2e from
the disposal of all market-sold products and their
packaging. Sales data from Zegalog to downstream
business customers determines the product quan-
tities and the methodology does not differentiate
between packaging and product. Since these are
medical products, they are classified as commer-
cial and industrial waste and are incinerated at
disposal. A global emission factor is used to calcu-
late these emissions.
Investment emissions capture the proportional
share of scope 1, 2 and 3 emissions from invest-
ment holdings, based on the size of each invest-
ment. Data is obtained directly from the invest-
ment provider, granular emission data is provided
for significant investments. Where emissions data
is missing, scope averages are calculated and
applied to ensure comprehensive coverage across
the investment portfolio.
Total Greenhouse Gas emissions and intensity
Total GHG emissions location based is the sum of
all scopes inclusive of scope 2 location based.
Total GHG emissions market based is the sum of
all scopes inclusive of scope 2 market based.
Social
Employee Characteristics
Total number of employees (head count) refer
to the total number of employees employed in
Zealand Pharma by 31 december of the reporting
year. All employee data, including gender, age
distribution, and nationality is based on registra-
tions in Zealand Pharma's HR systems.
Number of employees who have left undertaking
refer to employees of Zealand Pharma who leave
voluntarily or due to dismissal, retirement, or
death in service as per december 31st of the
reporting year.
Percentage of employee turnover is calculated
by taking the number of employees (headcount)
who left the undertaking per december 31st
of the reporting year as the numerator, and
the total number of employees (head count) as
per december 31st of the reporting year as the
denominator
Employee engagement, development and culture
Participation score in annual employee engage-
ment survey refers to the percentage of eligible
employees who completed the annual employee
engagement survey, compared to the total number
of eligible employees. Eligible employees are
defined as those who have been employed at
Zealand Pharma for a minimum of 3 months upon
the publication date of the engagement survey.
The engagement score is based on an anonimous
employee survey conducted by a third party.
Eligible employees respond to the question, "How
likely is it, that you would recommend others at
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
113
applying for a job at Zealand Pharma" from a scale
from 0-10. 0 is defined as "not likely at all" and 10
is defined as "very likely". The engagement score is
the average response.
In relation to the percentage of employees that
participated in regular performance and
career development reviews, a regular perfor-
mance and career development review is defined
as a review based on criteria known to the
employee and his or her superior undertaken with
the knowledge of the employee at least once per
year. The percentage is calculated by using the
headcount of employees in the denominator, and
the number of performance reviews performed in
the numerator.
Diversity, equity and inclusion
The gender distribution at the top management
level is reported as the percentage split by male/
female on December 31 of the reporting year.
Top management is defined as the Corporate
Management team (C-levels), in Zealand Pharma.
Count of, and gender distribution in percentage
of other management positions refers to the
total sum, and split between male and female
employees actively employed in Zealand Pharma
on December 31 of the reporting year. By other
management levels, we mean the two management
levels below Zealand Pharma’s Board of Directors.
The first management level is the executive
management and the individuals who are organiza-
tionally at the same management level as the exec-
utive management, in our Zealand Pharma’s case
Corporate Management. The second management
level includes individuals with personnel responsi-
bility who report directly to the first management
level. This definition is in line with the definition of
“other management level” from the Danish Gender
Balance Act
Number of nationalities refer to the total number
of different nationalities employed by Zealand
Pharma on 31 December of the reporting year.
Data is deprived from Zealand Pharma's HR
system.
Health and Safety - scope and definitions
Definition of "work related": Work-related injuries
and work-related ill health arise from exposure to
hazards at work, and are accounted for. In relation
to "work related", Zealand Pharma considers the
following work-related:
With regard to travelling for work purposes,
injuries and ill health that occur while a person
is travelling are work-related if, at the time of the
injury or ill health, the person was engaged in work
activities “in the interest of Zealand Pharma”. If
Zealand Pharma is responsible for the transport
commuting, incidents occurred while commuting
are considered to be work-related.
Ill health is defined according to the spec-
ifications of Danish regulation regarding
"Erhvervssygdomme", and cover all ilnesses high-
lighed in BEK nr 1324 af 29/11/2024. Cases are
collected through the Danish business register.
With regard to working from home, injuries and
ill health that occur when working from home are
work-related, if the injury or ill health occurs while
the person is performing work from home; and the
injury or ill health is directly related to the perfor-
mance of work rather than the general home envi-
ronment or setting.
With regard to mental illness, it is considered to
be work-related, if it has been notified voluntarily
by the person concerned and it is supported by an
opinion from a licensed healthcare professional
with appropriate training and experience; and if
such opinion states that the illness is work-related.
Health issues resulting, for example, from smoking,
drug and alcohol abuse, physical inactivity,
unhealthy diets, and psychosocial factors unre-
lated to work are not considered work-related.
Occupational diseases are not considered
work-related injuries but are covered under
work-related ill health.
Health and safety - data points
Percentage of people in its own workforce who are
covered by health and safety management system
based on legal requirements and (or) recognised
standards or guidelines refer to the percentage
of employees, by headcount, who are covered by
Zealand Pharmas health and safety management
system. It is calculated by taking the headcount
of people covered in the numerator, and the
headcount of total employees in the denominator.
Zealand Pharma's Health and Safety Management
System follow the national regulation of LBK nr
2062 af 16/11/2021, "Bekendtgørelse af lov om
arbejdsmiljø".
Number of fatalities as result of work-related inju-
ries and work-related ill health of other workers
working on undertaking's sites refer to fatalities
of non Zealand Pharma employess that occur on
Zealand Pharma premises, within the reporting
year.
Number of fatalities as result of work-related inju-
ries and work-related ill health of other workers
working on undertaking's sites refer to fatalities
of non Zealand Pharma employess that occur on
Zealand Pharma premises, within the reporting
year
Number of recordable work-related accidents for
own workforce if defined as a work-related acci-
dent which results in absence of at least one day,
in addition to the day of the accident.
Near accidents are those cases, where an acci-
dent did not occur, but a report was made. Near-
accidents can be reported by all employees, and
are handles by Zealands OSHA committee.
Rate of recordable work-related accidents for own
workforce is calculated by taking the respective
number of recordable work-related accidents and
fatalities for own workforce of the reporting year,
dividing it by the total number of actual hours
worked (in million) by own employees. Data on
working hours is coming from Zealand Pharma's HR
and payroll systems.
Number of days lost to work-related injuries and
fatalities from work-related accidents, work-re-
lated ill health and fatalities from ill health related
to employees refers to the total number of days
lost. The count includes the number of calendar
days lost such that the first full day and last day of
absence is included. Calendar days are used for
the calculation, thus days on which the affected
individual is not scheduled for work (for example,
weekends, public holidays) will count as lost days.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
114
Patient
For % of operating expenditure (OPEX) allocated
to Research and development , please see note
2.5, "Research and development expencted" of the
consolidated financial statements
% of employees working with research and devel-
opment refer to the total number of employee
working hours allocation to R&D activities, in rela-
tion to the total working hours of all employees.
Data is based on Zealand Pharma’s financial
accounts and HR system.
Number of active trials refer to active clinical trials
of Zealand Pharma products during the reporting
year, performed either by Zealand Pharma or part-
ners. As some trials are active between repoting
years, the same trial might be accounted for in
both reporting years.
Scientific communications refer to the contri-
butions made by Zealand Pharma to the scien-
tific environment and pharmaceutical industry,
including research abstracts, poster presentations,
oral presentations at international congresses,
published scientific manuscripts, and other scien-
tific publications (e.g. book chapters) within the
reporting year.
Governance
Corruption and bribery
Whistleblower cases are received in Zealand
Pharma's whistleblowing system, and handled
by an independent third-party. Cases are dealt
with by representatives of the Legal department,
Corporate management and the audit committee.
Zealand's whistleblower hotline is available for
both internal and external parties.
All whistleblowing cases are managed in accord-
ance with the Danish Whisleblowing Act, and are
supported by Zealand's internal operating proce-
dures. Only cases which are closed during the
financial year are reported. "
Number of convictions for violation of anti-corrup-
tion and anti- bribery laws refer to instances within
the reporting year, upon which Zealand Pharma
has been convicted for violating anti-corruption
and anti-bribery laws.
Amount of fines for violation of anti-corruption and
anti- bribery laws refer to the total amount of fines
received by Zealand Pharma within the reporting
year.
Number of confirmed incidents of corruption or
bribery refor to the number of cases within the
reporting year, upon which Zealand Pharma, or
Zealand Pharma own workers were confirmed to
violate corruption or bribery related matters. This
includes, but is not limited to bribery, facilitation
payments, fraud, extortion, collusion, and money
laundering. Incidents of corruption or bribery that
are still under investigation in the reporting period
are not reported.
Confirmed incidents of corruption or bribery
that resulted in dismissal or disciplinary action of
Zealand Pharma Employees, within the reporting
year. Disiplinary actions refer to reduction in work
hours, job perks, or benefits, temporary suspen-
sion of duties or demotion.
Terminations or non-renewals of contracts with
business partners due to violations related to
corruption or bribery related matters includes,
but is not limited to bribery, facilitation payments,
fraud, extortion, collusion, and money laundering.
Incidents of corruption or bribery that are still
under investigation in the reporting period are not
reported.
Management disclosures
Number of executive members refers to the exec-
utive management, who is obligated in accordance
with the Danish Companies act, to be registered in
the Danish Business authority IT register.
Board's gender diversity ratio refers to the gender
(male/female) of the shareholder-elected members
of the Board of Directors of Zealand Pharma
Percentage of independent board members refers
to the percentage of shareholder-elected board
members. Non-independent members are employ-
ee-elected board members.
Sustainability
Financial statements
Contents
The big picture
Our business
Corporate Governance
Zealand Pharma
Annual Report 2024
115
117
Consolidated financial statements
173 Financial statements
for the parent company
Financial
Statements
Zealand Pharma
Annual Report 2024
116
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
118
Consolidated statement of loss
118
Consolidated statement of comprehensive loss
119
Consolidated statement of financial position
120 Consolidated statement of cash flows
120 Consolidated statement of changes in equity
121
Consolidated notes
Consolidated
financial
statements
Zealand Pharma
Annual Report 2024
117
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Consolidated financial statements
Consolidated statement of loss for the years ended
December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Revenue
2.1
62,691
342,788
Royalty expenses
2.3
-
-9,138
Cost of goods sold
2.4
-7,874
-10,036
Gross profit
54,817
323,614
Research and development expenses
2.5
-919,866
-684,902
Sales and marketing expenses
2.6
-88,115
-30,627
General and administrative expenses
2.7
-315,907
-185,302
Other operating income
2.9
-
15,979
Other operating expenses
2.9
-3,136
-11,000
Net operating expenses
-1,327,024
-895,852
Operating result
-1,272,207
-572,238
Financial income
4.7
240,264
54,115
Financial expenses
4.7
-51,502
-190,742
Result before tax
-1,083,445
-708,865
Corporate tax
5.1
4,617
5,126
Net result for the year
-1,078,828
-703,739
Loss per share, basic/diluted (DKK)
2.10
-16.24
-12.44
Consolidated statement of comprehensive loss for the years ended
December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Net result for the year
-1,078,828
-703,739
Other comprehensive income
Items that will be reclassified to income
statement when certain conditions are met (net of tax):
Exchange differences on translation of foreign operations
-316
8,087
Total comprehensive result for the year
-1,079,144
-695,652
Financial statements
Zealand Pharma
Annual Report 2024
118
Contents
The big picture
Our business
Sustainability
Corporate Governance
Consolidated financial statements
Consolidated statement of financial position
as of December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Assets
Intangible assets
3.1
12,620
12,255
Property, plant and equipment
3.2
46,479
47,047
Right-of-use assets
3.3
78,768
102,805
Other investments
3.4
-
14,004
Deferred tax assets
5.1
985
925
Trade receivables
3.7
-
6,887
Other receivables
3.8
19,412
8,907
Marketable securities
4.5
819,632
-
Other financial assets
3.6
-
7,375
Total non-current assets
977,896
200,205
Inventory
3.5
10,698
7,935
Trade receivables
3.7
193,559
97,803
Other receivables
3.8
87,205
24,556
Corporate tax receivable
5.1
10,232
16,437
Other investments
3.4
23,626
-
Marketable securities
4.5
7,722,081
1,183,746
Cash and cash equivalents
4.4
480,303
449,311
Total current assets
8,527,704
1,779,788
Total assets
9,505,600
1,979,993
DKK thousand
Note
2024
2023
Share capital
4.8
71,024
58,751
Share premium
14,680,771
6,406,225
Currency translation reserve
22,388
22,704
Accumulated losses
-6,157,441
-4,894,841
Total shareholders' equity
8,616,742
1,592,839
Borrowings
4.6
285,332
-
Derivative financial liabilities
4.6
109,665
-
Lease liabilities
3.3
90,388
102,575
Total non-current liabilities
485,385
102,575
Lease liabilities
3.3
16,036
16,655
Trade payables
3.9
254,843
125,071
Other payables
3.10
132,594
142,853
Total current liabilities
403,473
284,579
Total liabilities
888,858
387,154
Total shareholders' equity and liabilities
9,505,600
1,979,993
Financial statements
Zealand Pharma
Annual Report 2024
119
Contents
The big picture
Our business
Sustainability
Corporate Governance
Consolidated financial statements
Consolidated statement of cash flows for the years
ended December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Net result for the year
-1,078,828
-703,739
Adjustment for other non-cash items
6.6
-80,501
202,033
Changes in working capital
6.6
122,379
52,103
Financial income received
119,010
37,887
Financial expenses paid
-24,031
-25,252
Corporate taxes received
11,155
11,300
Cash flow used in operating activities
-930,816
-425,668
Proceeds from sale of marketable securites
4,137,897
1,089,547
Purchase of marketable securities
-11,457,664
-2,159,831
Purchase of intangible assets
-3,095
-12,508
Purchase of property, plant and equipment
-10,053
-11,241
Cash flow used in investing activities
-7,332,915
-1,094,033
Proceeds from borrowings
4.6
369,867
-
Repayment of borrowings
4.6
-
-525,764
Lease installments
3.3
-16,442
-17,664
Proceeds from issuance of shares
8,492,752
1,500,000
Purchase of treasury shares
4.8
-351,834
-41,600
Proceeds from issuance of shares related to exercise of share-
based compensation
30,727
63,950
Costs related to issuance of shares
-236,579
-71,908
Cash flow from financing activities
8,288,491
907,014
Increase/(decrease) in cash and cash equivalents
24,760
-612,687
Cash and cash equivalents at beginning of year
449,311
1,069,234
Exchange rate adjustments
6,232
-7,236
Cash and cash equivalents at end of year
480,303
449,311
Consolidated statement of changes in shareholders' equity
at December 31, 2024 and 2023
DKK thousand
Share
capital
Share
premium
Currency
translation
reserve
Accu-
mulated
losses
Total
Equity at January 1, 2024
58,751
6,406,225
22,704
-4,894,841
1,592,839
Exchange differences on translation of
foreign operations
-
-
-316
-
-316
Net result for the year
-
-
-
-1,078,828
-1,078,828
Total comprehensive income
-
-
-316
-1,078,828
-1,079,144
Transactions with owners
Purchase of treasury shares
-
-
-
-270,804
-270,804
Exercise of warrants
161
30,566
-
-
30,727
Share-based compensation expenses
-
-
-
87,032
87,032
Capital increases
12,112
8,480,559
-
-
8,492,671
Costs related to capital increases
-
-236,579
-
-
-236,579
Equity at December 31, 2024
71,024
14,680,771
22,388
-6,157,441
8,616,742
Equity at January 1, 2023
51,702
4,921,232
14,617
-4,171,640
815,911
Exchange differences on translation of
foreign operations
-
-
8,087
-
8,087
Net result for the year
-
-
-
-703,739
-703,739
Total comprehensive income
-
-
8,087
-703,739
-695,652
Transactions with owners
Purchase of treasury shares
-
-
-
-81,045
-81,045
Net settlement of PSUs and RSUs
-
-
-
157
157
Exercise of warrants
470
63,480
-
-
63,950
Share-based compensation expenses
-
-
-
61,426
61,426
Capital increases
6,579
1,493,421
-
-
1,500,000
Costs related to capital increases
-
-71,908
-
-
-71,908
Equity at December 31, 2023
58,751
6,406,225
22,704
-4,894,841
1,592,839
Financial statements
Zealand Pharma
Annual Report 2024
120
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.0 Basis of preparation
122
1.1 Basis of preparation, going concern
assumption, nature of the business
and accounting policies
125
1.2 New accounting policies and disclosures
125
1.3 Management's judgements and
estimates under IFRS
2.0 Results for the year
127
2.1 Revenue
131
2.3 Royalty expenses
131
2.4 Cost of goods sold
132
2.5 Research and development expenses
133
2.6 Selling and marketing expenses
133
2.7 General and administrative expenses
134
2.8 Staff costs
134
2.9 Other operating items
135
2.10 Earnings per share
3.0 Operating assets and
liabilities
136
3.1 Intangible assets
138
3.2 Property, plant and equipment
140
3.3 Right-of-use assets and lease liabilities
142
3.4 Other investments
142
3.5 Inventories
143
3.6 Other financial assets
144
3.7 Trade receivables
144
3.8 Other receivables
145
3.9 Trade payables
145
3.10 Other payables
4.0 Capital structure, financial risk
and related items
146
4.1 Capital management
147
4.2 Financial risks
150
4.3 Financial assets and liabilities
152
4.4 Cash and cash equivalents
152
4.5 Marketable securities
154
4.6 Borrowings
158
4.7 Financial items
159
4.8 Share capital
160
4.9 Share-based instruments
5.0 Tax
164
5.1 Corporate tax
6.0 Other disclosures
167
6.1 Remuneration of the Board of
Directors and Executive Management
168
6.2 Fees to auditors appointed at the
annual general meeting
168
6.3 Contingent assets and liabilities
168
6.4 Commitments
169
6.5 Related parties
169
6.6 Cash flow adjustments
170
6.7 Collaborations and technology licenses
172
6.8 Subsequent events
Zealand Pharma
Annual Report 2024
121
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.0
Basis of
preparation
122
1.1
Basis of preparation, going concern assumption,
nature of the business and accounting policies
125
1.2
New accounting policies and disclosures
125
1.3
Management's judgements and estimates under IFRS
1.1 Basis of preparation, going concern assumption, nature of the business
and accounting policies
Basis of preparation
These consolidated financial statements include Zealand Pharma A/S (the parent company) and subsidi-
aries over which the parent company has control. The Zealand consolidated Group is referenced herein
as "Zealand" or the "Group".
This section describes Zealand's material financial accounting policies including Management's judge-
ments and estimates. New or revised EU endorsed accounting standards and interpretations are
described, in addition to how these changes are expected to impact the financial performance and
reporting of Zealand.
Accounting policies
The consolidated financial statements have been prepared in accordance with IFRS® Accounting
Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act
(class D). The consolidated financial statements were approved by the Board of Directors and authorized
for issue on February 20, 2025. Except as outlined in note 1.2 New accounting policies and disclosures,
the financial statements have been prepared using the same accounting policies as in previous years.
Zealand describes material accounting policy information in conjunction with each note with the aim to
provide a more understandable description of each accounting area.
Going concern assessment
The Company's strategy to prioritize research and development allows the Company to focus on the
research and development of innovative peptide-based medicines and leverage its peptide platform
through strategic collaborations.
Until such time where the Company becomes able to generate positive cash-flows from its operations,
additional funding is expected to be necessary to fund future research and development activities.
Therefore, the Company may raise additional funds through either public financing, debt financing,
collaboration agreements, strategic alliances and licensing arrangements, or a combination of such.
Management’s judgement and assessment of the Company’s ability to continue as a going concern
includes evaluation of the Company's operational cash-flow requirements for the forthcoming 12 months
from the balance sheet date and future sources and uses of cash. Management has assessed factors such
Zealand Pharma
Annual Report 2024
122
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.1 Basis of preparation, going concern assumption, nature of the business
and accounting policies (continued)
as its product pipeline, cash position, planned research and development activities, current license and
collaboration agreements, undrawn borrowing facilities and financing opportunities.
Management expects that the Company's cash and cash equivalents as of December 31, 2024, will be
sufficient to fund the Company's research and development activities as planned and capital require-
ments for at least 12 months from the December 31, 2024 balance sheet date. Following the capital
increases completed in January 2024 and June 2024 the Group received gross proceeds of DKK 1.5
billion and DKK 7.0 billion, respectively.
On this basis, these consolidated financial statements are prepared using the going concern assumption.
Nature of the Business
Zealand is a biotechnology company focused on the discovery, design, and development of innovative
peptide-based medicines within the three therapeutic focus areas: obesity and obesity-related
comorbidities, rare diseases, and chronic inflammation.
In obesity, our peptide capabilities place us in a unique position to address a vast global healthcare chal-
lenge and positively impact hundreds of millions of lives. Within rare diseases, we have a long-standing
commitment to deliver new and effective treatments to patients living with congenital hyperinsulinism
and short bowel syndrome. For chronic inflammatory diseases, we are progressing peptide programs
focused on high-profile targets shown to be difficult to address with small molecules and antibodies.
Zealand's strategy is to pursue global co-development and commercialization partnerships that comple-
ment and extend our capabilities across the value chain to deliver new peptide therapies to people who
need them.
Zealand Pharma A/S, founded in 1998, is incorporated in Denmark and headquartered in Copenhagen,
Denmark with a presence in the U.S.
Materiality
Zealand's Annual Report is based on the concept of materiality and the Company focuses on informa-
tion that is considered material and relevant to the users of the consolidated financial statements. The
consolidated financial statements consist of a large number of transactions. These transactions are
aggregated into classes according to their nature or function and presented in classes of similar items
in the consolidated financial statements as required by IFRS and the Danish Financial Statements Act. If
items are individually immaterial, they are aggregated with other items of similar nature in the financial
statements or in the notes.
Consolidated Financial Statements
The consolidated financial statements include Zealand A/S and subsidiaries over which the parent
company has control. The parent controls a subsidiary when the parent is exposed to, or has rights
to, variable returns from its involvement with the subsidiary and has the ability to affect those returns
through its power to direct the activities of the subsidiary.
Zealand's consolidated financial statements have been prepared on the basis of the financial statements
of the parent company and subsidiaries, prepared under Zealand's accounting policies by combining
similar accounting items on a line-by-line basis. On consolidation, intercompany income and expenses,
intercompany receivables and payables, and unrealized gains and losses on transactions between the
consolidated companies are eliminated.
The recorded value of the equity interests in the consolidated subsidiaries is eliminated with the propor-
tionate share of the subsidiaries' equity. Subsidiaries are consolidated from the date when control is
transferred to the Group.
Zealand Pharma
Annual Report 2024
123
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.1 Basis of preparation, going concern assumption, nature of the business
and accounting policies (continued)
The income statements for subsidiaries with a different functional currency than Zealand's presentation
currency, are translated into Zealand's presentation currency at average exchange rates, and the balance
sheets are translated at the exchange rate in effect at the balance sheet date.
Exchange rate differences arising from the translation of foreign subsidiaries shareholders' equity at the
beginning of the year and exchange rate differences arising as a result of foreign subsidiaries' income
statements being translated at average exchange rates are recorded in translation reserves in share-
holders' equity.
Functional and Presentation Currency
The consolidated financial statements have been presented in Danish Kroner (DKK), which is the func-
tional and presentation currency of the parent company.
Foreign Currency
Transactions in foreign currencies are translated at the exchange rates in effect at the date of the
transaction.
Exchange rate gains and losses arising between the transaction date and the settlement date are recog-
nized in the income statement as financial income or expense.
Unsettled monetary assets and liabilities in foreign currencies are translated at the exchange rates in
effect at the balance sheet date. Exchange rate gains and losses arising between the transaction date and
the balance sheet date are recognized in the income statement as financial income or expense.
Zealand Pharma A/S
Ultimate parent
Domicile: Denmark
ZP SPV 3 K/S
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
ZP General Partner 3
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
ZP Holding SPV K/S
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
ZP General Partner 1 ApS
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
Zealand Pharma U.S., Inc.
Domicile: United States
Ownership: 100%
Voting rights: 100%
ZP General Partner 2 ApS
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
ZP SPV 1 K/S
Domicile: Denmark
Ownership: 100%
Voting rights: 100%
Zealand Pharma California US, LLC.
Domicile: United States
Ownership: 100%
Voting rights: 100%
Zealand Pharma
Annual Report 2024
124
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.1 Basis of preparation, going concern assumption, nature of the business
and accounting policies (continued)
Statements of Cash Flows
The cash flow statement is presented using the indirect method.
Cash flows from operating activities are stated as the net result for the year adjusted for net financial
items, non-cash operating items such as depreciation, amortization, impairment losses, share-based
compensation expenses, provisions, and for changes in operating assets and liabilities, interest paid and
received, interest elements of lease payments and corporate taxes paid or received. Operating assets
and liabilities are mainly comprised of changes in receivables and other payables excluding the items
included in cash and cash equivalents. Changes in non-current assets and liabilities are included in oper-
ating assets and liabilities, if related to the main revenue-producing activities of Zealand.
Cash flows from investing activities consist of purchases and sales of marketable securities and other
investments, as well as purchases of intangible assets and property and equipment.
Cash flows from financing activities relate to the issuance of shares, purchase of treasury shares and
proceeds/repayments of loans including installments on lease liabilities.
Cash and cash equivalents are comprised of cash, bank deposits, and marketable securities with a matu-
rity of less than ninety days on the date of acquisition.
The statements of cash flows cannot be derived solely from the consolidated financial statements.
ESEF and iXBRL reporting
Zealand Pharma is required to file its annual report in ESEF format, and the annual report is therefore
prepared in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the
annual report in XHTML format. The consolidated financial statements are tagged using inline eXtensible
Business Reporting Language (iXBRL). The iXBRL tags comply with the ESEF taxonomy, which is included
in the ESEF Regulation and developed based on the IFRS taxonomy published by the IFRS Foundation.
Where a financial statement line item is not defined in the ESEF taxonomy, an extension to the taxonomy
has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions
which are subtotals. The Annual Report submitted to the Danish Financial Supervisory Authority consists
of the XHTML document together with certain technical files, all included in a file named zealandpharma-
2024-12-31-en.zip.
1.2 New accounting policies and disclosures
Implementation of new and revised standards and interpretations
Zealand has, with effect from January 1, 2024, applied and implemented the following new standards and
amendments, which are relevant for Zealand:
ș Amendments to IFRS 16, Leases, Lease Liability in a Sale-and-Leaseback
ș Amendment to IAS 1, Presentation of Financial Statements, Classification of Liabilities as Current or
Non-current and Non-current Liabilities with Covenants
The implementation of the above new and revised standards and amendments did not have any material
impact on amounts recognized in current and prior periods and is not expected to have a material impact
in the current or future reporting periods.
Standards and interpretations not yet effective
The IASB has issued a number of new standards and updated some existing standards, which are effec-
tive for accounting periods beginning on January 1, 2025, or later. Therefore, they are not incorporated
in these consolidated financial statements. On April 9, 2024, the IASB issued a new standard – IFRS 18,
Presentation and Disclosure in Financial Statements. IFRS 18 will be effective for annual reporting periods
beginning on or after January 1, 2027, including for interim financial statements. The key new concepts
introduced in IFRS 18 relate to the structure of the statement of profit or loss; the required disclosures
in the financial statements for management-defined performance measures and enhanced principles on
aggregation and disaggregation.
1.3 Management's judgements and estimates under IFRS
In preparing consolidated financial statements under IFRS, certain provisions in the standards require
Management's judgements, including various accounting estimates and assumptions. These judgements
and estimates affect the application of accounting policies, as well as reported amounts within the
consolidated financial statements and disclosures.
Determining the carrying amount of certain assets and liabilities requires judgements, estimates and
assumptions concerning future events that are based on historical experience and other factors, which
by their very nature are associated with uncertainty and unpredictability.
Zealand Pharma
Annual Report 2024
125
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
1.3 Management's judgements and estimates under IFRS (continued)
Accounting estimates are based on historical experience and various other factors relative to the circum-
stances in which they are applied. Estimates are generally made based on information available at the
time. An example would include Management's estimation of useful lives of intangible assets.
Accounting judgements are made in the process of applying accounting policies. These judgements are
typically made based on the guidance and information available at the time of application. Examples
would include Management's judgements utilized in determining revenue recognition.
These estimates and judgements may prove incomplete or incorrect, and unexpected events or circum-
stances may arise. Zealand is also subject to risks and uncertainties which may lead actual results to
differ from these estimates, both positively and negatively. Specific risks for Zealand are discussed in the
relevant section of this Annual Report and in the notes to the consolidated financial statements.
The areas involving a high degree of judgement and estimation that at the end of the reporting period
have a significant risk of resulting in material adjustment to the carrying amount of assets and liabilities
within the next financial year are summarized below. Refer to the identified notes for further information
on the key accounting estimates and judgements utilized in the preparation of these consolidated finan-
cial statements.
Accounting topic
Key accounting estimates and judgements
Note
reference
Estimation
risk
Revenue recognition
Judgement in assessing the nature of combined
performance obligations within contracts
2.1
Moderate
Judgement in assessing the probability of
attainment of milestones
Low
Estimation of stand-alone selling price for each
identified performance obligation
Moderate
Deferred taxes
Judgement and estimate regarding valuation of
deferred income tax assets
5.1
Low
Accrual of costs for
clinical contracts
Estimate on allocation of total contract costs
between start-up, patient treatment and wrap-up
phases for clinical trials including estimate of
value for expected change orders
2.5
Low
Derivative financial
liabilities, warrants
Estimate of fair value of cash-settled warrant
liability from disbursement of EIB loan (Tranche A)
4.6
Moderate
Zealand Pharma
Annual Report 2024
126
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.0
Results for
the year
This section includes disclosures related to the
consolidated statement of loss. A detailed description of
the results for the year is provided in the Financial Review
section in the Management’s Review.
127
2.1
Revenue
131
2.3
Royalty expenses
131
2.4
Cost of goods sold
132
2.5
Research and development expenses
133
2.6
Selling and marketing expenses
133
2.7
General and administrative expenses
134
2.8
Staff costs
134
2.9
Other operating items
135
2.10 Earnings per share
2.1 Revenue
Accounting policies
Zealand recognizes revenue when its customer obtains control of promised goods or services, in an
amount that reflects the consideration that the entity expects to receive in exchange for those goods
or services. To determine revenue recognition for arrangements that Zealand determines are within the
scope of IFRS 15, Zealand performs the following five steps: (i) identify the contract(s) with a customer;
(ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate
the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or
as) the entity satisfies a performance obligation. Zealand only applies the five-step model to contracts
when it is probable that the Company will collect the consideration it is entitled to in exchange for the
goods or services it transfers to the customer. At contract inception, once the contract is determined to
be within the scope of IFRS 15, Zealand assesses the goods and services promised within each contract
and identifies as a performance obligation each good or service that is distinct. Revenue is recognized in
the amount of the transaction price that is allocated to the respective performance obligation when (or
as) the performance obligation is satisfied.
Milestone revenue
At the inception of each arrangement that includes milestone payments, Zealand evaluates whether
the achievement of milestones is considered highly probable and estimates the amount to be included
in the transaction price using the most likely amount method. If it is highly probable that a significant
revenue reversal would not occur, the associated milestone value is included in the transaction price.
Milestone payments that are not within the control of Zealand or the license and collaboration partner,
such as milestones conditioned of regulatory approvals, are not considered probable of being achieved
until such regulatory approvals are received. The transaction price is then allocated to each perfor-
mance obligation on a relative stand-alone selling price basis, for which Zealand recognizes revenue
as or when the performance obligations under the contract are satisfied. At the end of each subse-
quent reporting period, Zealand re-evaluates the probability of achievement of such milestones and
any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such
adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in
the period of adjustment.
License revenue for intellectual property
If the license to Zealand's functional intellectual property is determined to be distinct from the
other performance obligations identified in the arrangement, Zealand recognizes revenues from
Zealand Pharma
Annual Report 2024
127
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.1 Revenue (continued)
non-refundable upfront fees allocated to the license at the point in time the license is transferred to the
licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with
other promises, Zealand utilizes judgement to assess the nature of the combined performance obli-
gation to determine whether the combined performance obligation is satisfied over time or at a point
in time and, if over time, the appropriate method of measuring progress for purposes of recognizing
revenue from non-refundable, upfront fees.
Royalties
Some of Zealand's license and collaboration agreements include sales-based royalties including
commercial milestone payments based on the level of sales. The license has been deemed to be the
predominant item to which the royalties relate under Zealand's license and collaboration agreements.
As a result, Zealand recognizes revenue when the related sales occur.
Reimbursement revenue for R&D services
Zealand’s research and development collaboration agreements include the provisions for reimburse-
ment or cost sharing for research and development services and payment for full-time equivalent
employees (FTEs) at contractual rates. R&D services are performed over time given that the customer
simultaneously receives and consumes the benefits provided by Zealand and revenue for research and
development services is therefore recognized over time. Amount is recognized net of any passthrough
cost incurred on behalf of the customer. The assessment of if a cost is incurred on behalf of the customer
is made by evaluating the nature of its promise to the customer including whether the specified good
or service to be provided to the customer is controlled by the Company before that good or service is
transferred to the customer.
Product sales
Revenue from sale of goods is recognized at a point in time when control of the goods is transferred to
the customer and recorded net of adjustments for rebates and chargebacks, all of which are estimated
at the time of sale.
Management’s judgements and estimates
Revenue recognition
Evaluating the criteria for revenue recognition under license and collaboration agreements requires
Management's judgement to assess and determine the following:
ș Identification of performance obligations within the contract and determine the nature of performance
obligations and whether they are distinct or should be combined with other performance obligations
to determine whether the performance obligations are satisfied over time or at a point in time.
ș Determine the transaction price, including an assessment of whether the achievement of milestone
payments is highly probable.
ș Allocation of transaction price to performance obligations to determine the stand-alone selling price
of each performance obligation identified in the contract using key assumptions which may include
forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates
and probabilities of technical and regulatory success.
Zealand Pharma
Annual Report 2024
128
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.1 Revenue (continued)
Recognized revenue can be specified as follows for all agreements and product sales:
DKK thousand
2024
2023
Alexion Pharmaceuticals Inc.
406
4,094
Boehringer Ingelheim International GmbH
-
223,725
Novo Nordisk A/S
54,411
34,149
Sanofi-Aventis Deutschland GmbH
-
70,784
Total revenue from license and collaboration agreements
54,817
332,752
Gross product sales
7,874
10,036
Total revenue from sale of goods
7,874
10,036
Total revenue
62,691
342,788
Total revenue recognized over time
39,817
38,244
Total revenue recognized at a point in time
22,874
304,544
Milestone revenue
15,000
294,509
Royalty revenue
985
841
Reimbursement revenue for R&D services
38,832
37,402
Product sales
7,874
10,036
Total revenue by revenue stream
62,691
342,788
Alexion Pharmaceuticals Inc. agreement
Under the Alexion license, research and development agreement, Zealand has received an upfront
non-refundable payment of USD 25 million for the Complement C3 program and a concurrent USD
15 million equity investment in Zealand at a premium to the market price. These payments have been
received and recognized in revenue in prior years. The agreement is described further in note 6.7
Collaborations and technology licenses.
Revenue of DKK 0.4 million in 2024 (2023: DKK 4.1 million) under the Alexion agreement solely relates to
compensation on a time and material basis for R&D services.
In October 2024 a termination agreement with Alexion was signed. Zealand will receive an exclusive, royal-
ty-free, worldwide, irrevocable license to use (incl. research, develop, commercialize) the a) discontinued
product intellectual property and b) the know how created by Alexion.
Boehringer Ingelheim International GmbH agreement
In June 2011, Zealand entered into a license, research and development collaboration agreement with
Boehringer Ingelheim International GmbH (BI) to advance novel dual acting glucagon/GLP-1 peptide
receptor agonists for the treatment of patients with type 2 diabetes and obesity. As part of the agreement,
Boehringer obtained global development and commercialization rights to the lead drug candidate, survodu-
tide. Boehringer funds all research, development, and commercialization activities under the agreement.
In November 2023 an EUR 30 million milestone payment was triggered as Boehringer initiated the
Phase 3 program with survodutide in patients living with obesity or overweight (SYNCHRONIZE™) that
consists of three global clinical trials. 85% of the payment was received in December 2023 with 15%
withholding taxes that will be paid out upon approval of Zealand’s withholding tax exemption applica-
tion. As of December 31, 2024, withholding taxes of DKK 35.4 million is still outstanding, refer to note 3.7
Trade receivables. For further information about potential future milestone payments refer to note 6.7
Collaborations and technology licenses.
Zealand Pharma
Annual Report 2024
129
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.1 Revenue (continued)
Novo Nordisk A/S license and development agreement
On September 7, 2022, Zealand announced a global license and development agreement with Novo
Nordisk to commercialize Zegalogue® (dasiglucagon) for injection. Under the agreement Zealand received
DKK 25 million in upfront payments and is eligible for up to DKK 45 million in development milestones and
DKK 220 million in net sales-based milestones as well as compensation on a time and material basis. The
agreement with Novo Nordisk is considered a contract with a customer as defined in IFRS 15.
In June 2023, the submission of EU marketing authorization application was completed. Total revenue
recognized over time relating to this performance obligation amounted to DKK 13 million, of which DKK 10
million was recognized in 2023.
The delivery of specified development activities are recognized over time as the activities progress.
Revenue is measured based on Zealand’s estimate of actual expenses incurred while rendering the
services during the period compared to planned service periods and budgeted expenses. As such,
Zealand applies an input-based method (budget expenses) when determining the timing of satisfaction
of performance obligations as the services related to delivery of specified development activities are
performed by an indeterminate number of acts over the development timeline. Revenue from delivery
of the specified development activities has been recognized with DKK 2 million in 2022, DKK 6 million in
2023 and DKK 5 million in 2024 respectively, resulting in a remaining obligation as of December 31, 2024,
of DKK 1 million.
On May 31, 2024, the Committee for Medicinal Products for Human Use (CHMP) recommended granting
a marketing authorization for Zegalogue© triggering DKK 15 (each of DKK 7.5 million) million in milestone
payments from Novo Nordisk A/S. Zegalogue© received the marketing authorization valid throughout the EU
in July 2024.
Sanofi-Aventis Deutschland GmbH agreement
In 2023, USD 10 million in milestone payments associated with lixisenatide were received from Sanofi. Out
of the USD 10 million from Sanofi, Zealand will pay USD 1.3 million in royalty expenses to Alkermes in line
with a termination agreement following the dissolution of a former joint venture with Elan Corporation
(now Alkermes), stipulating that Alkermes is entitled to 13% of payments received by Zealand in respect
to lixisenatide under the Sanofi License Agreement. As of December 31, 2023 and onwards, there are no
other outstanding milestone payments associated with the license agreement with Sanofi. All royalties
related to lixisenatide were sold to Royalty Pharma in 2018.
Zealand Pharma
Annual Report 2024
130
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.2 Information about geographic areas
Revenue
Non-current
assets
Revenue
Non-current
assets
(DKK thousand)
2024
2023
Denmark
62,285
125,247
44,185
136,819
United States
406
-
4,094
13,033
Germany
-
-
294,509
-
Total by geographic area
62,691
125,247
342,788
149,852
Zealand is managed and operated as one business unit, which is reflected in the organizational structure
and internal reporting. No separate lines of business or separate business entities have been identified
with respect to any licensed products, marketed products, product candidates or geographical markets
and no segment information is currently prepared for internal reporting.
The development in non-current assets in United States is a result of the US Boston office being
subleased from August 1, 2024.
2.3 Royalty expenses
Accounting policies
Royalty expenses comprise contractual amounts payable to third parties that are derived from mile-
stone payments. Royalty expenses are recognized in the income statement when the related payments
and milestone events in the corresponding collaboration agreements materialize.
Royalty expense associated with lixisenatide under the Sanofi License Agreement
We have agreed to pay some of our revenue in deferred payments or royalties to third parties. At the time
of the dissolution of a former joint venture with Elan Corporation, plc (Elan) and certain of its subsidiaries
that were party to the joint venture agreement with us, we agreed to pay royalties to Elan – now Alkermes
plc, as successor in interest to a termination agreement between us and the Elan entities - including
13% of future payments we receive in respect of lixisenatide under the Sanofi License Agreement. In
addition, we have agreed to pay a royalty of 0.5% of the total amounts we receive in connection with our
SIP-modified peptides, including lixisenatide, to one of the inventors of our SIP technology, who is one of
our employees.
As of December 31, 2024, the estimated royalty to be paid to this inventor amounts to DKK 1.5 million and
is calculated on the basis of future sales until December 31, 2026. In 2024, no royalty expenses have been
recognized (2023: DKK 9.1 million).
2.4 Cost of goods sold
Costs of goods sold in 2024 of DKK 7.9 million (2023: DKK 10.0 million) relates to inventory utilized in the
production under the supply agreement with Novo Nordisk A/S. The inventory is measured at net realiz-
able value which equals the agreed selling price with Novo Nordisk A/S. Therefore, an equivalent revenue
from sale of goods of DKK 7.9 million has been recognized, refer to note 2.1 Revenue.
Zealand Pharma
Annual Report 2024
131
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.5 Research and development expenses
Accounting policies
Research and development expenses primarily include salaries, benefits and other employee related
costs of Zealand's research and development staff, license costs, manufacturing costs, preclinical costs,
clinical trials, contractors and outside service fees, amortization and impairment of licenses and rights
related to intangible assets, and depreciation of property and equipment, to the extent that such costs
are related to the Group's research and development activities.
Management’s judgements and estimates
Treatment of research and development expenses
Research and development expenses are recognized in the income statement as incurred and in the
period in which they relate, except for development expenses for which the capitalization criteria are
met.
Please see note 3.1 Intangible assets for a more detailed description on the treatment of Zealand's
development expenses related to internal development projects.
Accrual of costs for clinical contracts
Management estimates expenses to be recognized from Contract Research Organizations (CROs) based
on an estimate on allocation of total contract costs between start-up, patient treatment and wrap-up
phases for clinical trials including an estimate of treatment cost per patient and value of expected
change orders.
Total contract costs are allocated to each phase using the below split for all Zealand’s CRO contracts
based on previous experiences:
ș Service fee: Start-up (20%), Patient treatment (75%), Wrap-up (5%)
ș Pass through: Start-up (5%), Patient treatment (90%), Wrap-up (5%)
CRO contracts are recognized over the contract period based on an estimate of the contract’s cost
driving element which could be either i) patients or ii) time. If the primary goal of the study is to get a
certain number of patients through the study, then patients is used as the cost driving element. Time is
used if the study runs through a certain timeline regardless of how many patients that are enrolled.
At the end of each reporting period, Management estimates any expected change orders, which are
recognized up front with an amount corresponding to the completion rate of the contract (patients or
time). The remaining change order amount will be recognized over the remaining contract period.
DKK thousand
2024
2023
Staff costs (note 2.8)
-336,922
-256,310
Amortization, depreciation, impairment losses on intangible assets,
property plant and equipment, and right of use assets
-19,592
-18,717
Other external research and development expenses
-563,352
-409,875
Total research and development expenses
-919,866
-684,902
The last years' capital raises have allowed Zealand to intensify its research and development activities
in line with company strategy, which have been continuously increasing throughout 2023 and 2024. The
increase compared to 2023 is mainly driven by the significant clinical advancement of the obesity pipe-
line, including preparations for large, comprehensive Phase 2b trials for the wholly owned obesity assets.
Zealand Pharma
Annual Report 2024
132
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.6 Selling and marketing expenses
Accounting policies
Selling and marketing expenses relate to Zealand’s commercial activities, including costs related to
preparing the market for Zealand’s products and administration of commercial partnerships. This
includes salaries, benefits and other headcount costs related to commercial minded departments as
well as third-party costs.
In addition, depreciation and impairment of property and equipment, to the extent such expenses are
related to commercial functions are also included. Selling and marketing expenses are recognized in the
income statement in the period to which they relate.
DKK thousand
2024
2023
Staff costs (note 2.8)
-18,896
-14,455
Amortization, depreciation, impairment losses on intangibles assets,
property, plant and equipment, and right-of-use assets
-533
-120
Other external sales and marketing expenses
-68,686
-16,052
Total sales and marketing expenses
-88,115
-30,627
In 2024, total sales and marketing expenses have increased driven by pre-launch activities for our late-
stage rare disease assets while pursuing strategic partnership.
2.7 General and administrative expenses
Accounting policies
General and administrative expenses relate to the recurring management and administration of
Zealand. This includes salaries, benefits and other headcount costs related to management and support
functions including human resources and the finance departments.
In addition, depreciation and impairment of property and equipment, to the extent such expenses are
related to administrative functions are also included. General and administrative expenses are recog-
nized in the income statement in the period to which they relate.
DKK thousand
2024
2023
Staff costs (note 2.8)
-149,670
-105,256
Amortization, depreciation, impairment losses on intangibles assets,
property, plant and equipment, and right-of-use assets
-5,722
-6,249
Other external general and administrative expenses
-160,515
-73,797
Total general and administrative expenses
-315,907
-185,302
The increase in total general and administrative expenses compared to prior year reflects additional
legal expenses related to our patent portfolio and strengthening of organizational capabilities, also in
select corporate functions.
As of December 31, 2024, Zealand has accrued DKK 35.9 million in legal expenses related to disputes.
The amount is included in other external general and administrative expenses.
Zealand Pharma
Annual Report 2024
133
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.8 Staff costs
Accounting policies
Wages and salaries are recognized in the income statement in the period in which services for wages
and salaries is rendered to the Company.
DKK thousand
2024
2023
Total staff costs can be specified as follows:
Wages and salaries
-363,202
-268,078
Share-based compensation (note 4.9)
-87,032
-61,426
Pension schemes (defined contribution plans)
-28,000
-21,189
Government grants
9
7
Other payroll and staff-related costs
-27,263
-25,335
Total staff costs
-505,488
-376,021
The amount is charged as:
Research and development expenses
-336,922
-256,310
Sales and marketing expenses
-18,896
-14,455
General and administrative expenses
-149,670
-105,256
Total staff costs
-505,488
-376,021
Average number of employees
289
235
For additional information refer to note 4.9 Share-based instruments and note 6.1 Remuneration of the
Board of Directors and Executive Management.
2.9 Other operating items
Accounting policies
Other operating items comprise non-revenue income and expenses related to Zealand’s operations that
are assessed to be non-recurring and significant for the understanding of the financial performance of
Zealand.
Other operating items also includes expenses such as impairment charges, reversal of inventory write-
downs and other significant one-time transaction expenses.
DKK thousand
2024
2023
Settlement of legal disputes
-3,136
-
Write-down of US Boston lease
-
-11,000
Reversal of inventory write-down (note 3.5)
-
15,979
Total other operating items
-3,136
4,979
Presentation in income statement:
Other operating income
-
15,979
Other operating expenses
-3,136
-11,000
In 2024, Zealand settled a legal dispute of DKK 3.1 million related to the asset agreement signed in May
2022 for the sale of V-GO.
In 2023 impairment of right-of-use assets related to an impairment of the US Boston office of DKK 11.0
million. The DKK 11.0 million comprised DKK 3.5 from impairment of furniture, fixtures & equipment
(FF&E), DKK 1.3 million from impairment of right-of-use assets ("ROU"), and DKK 6.2 million from onerous
contract (not recovered operating expenses and real estate taxes). The change in estimate of the recov-
erable amount reflected Management’s assessment of future cash flows and market conditions from
subleasing the US Boston lease, where the feedback received from the real estate agent indicated a lower
rent level than previously anticipated which triggered impairment, refer to note 3.3 Right-of-use assets
and lease liabilities.
In 2023 a reversal of Zegalogue® inventory write-down of DKK 16.0 million was made related to materials
expected to be utilized in the production and sale under the supply agreement with Novo Nordisk A/S,
reference is made to note 3.5 Inventories.
Zealand Pharma
Annual Report 2024
134
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
2.10 Earnings per share
Accounting policies
Basic result per share
Basic result per share is calculated as the net result for the period, divided by the weighted average
number of ordinary shares outstanding, excluding treasury shares held by the Company.
Diluted result per share
Diluted result per share is calculated as the net result for the period, divided by the weighted average
number of ordinary shares outstanding, excluding the treasury shares, and adjusted for the dilutive
effect of share equivalents.
DKK thousand
2024
2023
Net result used in the calculation of basic and diluted earnings/
losses per share
-1,078,828
-703,739
Weighted average number of ordinary shares
66,750,969
56,881,075
Weighted average number of treasury shares
-316,703
-292,488
Weighted average number of ordinary shares excluding treasury shares
used in the calculation of basic/diluted earnings/losses per share
66,434,266
56,588,587
Total loss per share - basic/diluted (DKK)
-16.24
-12.44
In the calculation of the diluted loss per share for 2024, 1,290,194 potential ordinary shares related to
share-based payment instruments have been excluded as they are anti-dilutive (2023: 1,970,432).
On January 8, 2024, Zealand announced an issue of 3,761,470 new ordinary shares, which represent the
remaining authorization, at a subscription price of DKK 386.45 per new share resulting in gross proceeds
of DKK 1.45 billion. The capital increase was completed in January 2024.
As announced on June 25, 2024, the Board of Directors exercised the authorization granted by Zealand's
annual general meeting held on March 20, 2024, to increase the Group's share capital by issue of
8,350,000 new ordinary shares at a subscription price of DKK 843 per new share bringing in gross
proceeds of DKK 7 billion. The capital increase was completed in June 2024.
Zealand Pharma
Annual Report 2024
135
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.0
Operating assets
and liabilities
This section covers the operating assets and related
liabilities that form the basis for Zealand’s activities.
Assets related to Zealand’s financing activities are
described in detail in section 4.0 Capital structure,
financial risks and related items.
136
3.1
Intangible assets
138
3.2 Property, plant and equipment
140
3.3
Right-of-use assets and lease liabilities
142
3.4
Other investments
142
3.5
Inventories
143
3.6
Other financial assets
144
3.7
Trade receivables
144
3.8
Other receivables
145
3.9
Trade payables
145
3.10 Other payables
3.1 Intangible assets
Accounting policies
Internal development programs
Zealand currently has not recognized internally generated intangible assets from development, as the
criteria for recognition of an asset are not met as described below.
Software
Software comprises capitalized implementation costs on IT projects initially measured at cost. Costs
include configuration and customization of the underlying software, including training and testing.
Capitalization ceases when the asset is in the condition necessary for it to be capable of operating in
the manner intended by Management. The intangible assets are subsequently measured at cost less
accumulated amortization and any impairment losses according to IAS 38. Amortization is calculated on
a straight-line basis over the estimated useful life which is 3-5 years and is included in the income state-
ment under general and administrative expenses.
Acquired licenses and rights
Acquired licenses, rights, and patents are initially measured at cost and include the net present value
of any future payments. The net present value of any future payments is recognized as a liability. When
triggered, milestone payments are accounted for as an increase in the cost to acquire licenses, rights,
and patents unless such subsequent expenditures are recognized in the income statement as Research &
Development expenses if they do not satisfy the conditions for recognition as an asset.
Amortization
Licenses, rights, and patents are amortized using the straight-line method over the estimated useful
life which is determined when the asset is available for use. Amortizations, impairment losses and gain
or losses on the disposal of intangible assets are recognized in the income statement as Research &
Development expenses.
Impairment
If circumstances or changes in Zealand's operations indicate that the carrying amount of the intangible
assets may not be recoverable, Management will review the intangibles for impairment. Intangible
assets not ready for use are reviewed for impairment on an annual basis.
Zealand Pharma
Annual Report 2024
136
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.1 Intangible assets (continued)
Management's judgements and estimates
According to IAS 38, intangible assets arising from development projects should be recognized in the
balance sheet. The criteria that must be met for capitalization are that:
ș the development project is clearly defined and identifiable and the attributable costs can be meas-
ured reliably during the development period; and
ș the technological feasibility, adequate resources to complete and a market for the product or an
internal use of the product can be documented; and
ș Management has the intent to produce and market the product or to use it internally.
Such an intangible asset should be recognized if sufficient certainty can be documented that the future
income from the development project will exceed the aggregate cost of production, development and
sale and administration of the product.
A development project involves a single product candidate undergoing a high number of tests to illus-
trate its safety profile and its effect on humans prior to obtaining the necessary final approval of the
product from the authorities. The future economic benefit associated with the individual development
projects are dependent on obtaining such approval. Considering the significant risk and duration of the
development period related to the development of biological products, Management has concluded that
the future economic benefits associated with the individual projects cannot be estimated with sufficient
certainty until the project has been finalized and the necessary final regulatory approval of the product
has been obtained. Accordingly, Zealand has not recognized such assets at this time and therefore all
research and development costs are recognized in the income statement when incurred.
DKK thousand
Software
Cost at January 1, 2024
12,508
Additions
3,094
Cost at December 31, 2024
15,602
Amortization and impairment at January 1, 2024
-253
Amortization for the year
-2,729
Amortization and impairment at December 31, 2024
-2,982
Carrying amount at December 31, 2024
12,620
Amortization and impairment for the financial year has
been charged as:
General and administrative expenses
-2,729
Total
-2,729
Zealand Pharma
Annual Report 2024
137
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.1 Intangible assets (continued)
DKK thousand
Software
Cost at January 1, 2023
-
Additions
12,508
Cost at December 31, 2023
12,508
Amortization and impairment at January 1, 2023
-
Amortization for the year
-253
Amortization and impairment at December 31, 2023
-253
Carrying amount at December 31, 2023
12,255
Amortization and impairment for the financial year has
been charged as:
General and administrative expenses
-253
Total
-253
In 2023, Zealand implemented a new budget tool along with a new enterprise resource planning system
(ERP) to further strengthen Management reporting. In 2023, a new quality assurance (QA) system has also
been implemented.
3.2 Property, plant and equipment
Accounting policies
Property, plant, and equipment is mainly comprised of plant and machinery, other fixtures and fittings,
leasehold improvements, and assets under construction, which are measured at cost less accumulated
depreciation. and any impairment losses.
The cost is comprised of the acquisition price and costs directly related to the acquisition until the asset
is ready for use. Costs include direct costs and costs to subcontractors.
Depreciaion
Depreciation is calculated on a straight-line basis to allocate the cost of the assets, net of any residual
value, over the estimated useful lives, which are as follows:
Leasehold improvements 5-13 years, but never longer than the lease term
Plant and machinery 5-10 years
Other fixtures and fittings 3-5 years
The useful lives and residual values are reviewed and adjusted if appropriate on a yearly basis. Assets
under construction are not depreciated.
Impairment
If circumstances or changes in Zealand's operations indicate that the carrying amount of property,
plant and equipment may not be recoverable, Management reviews that asset for impairment. The basis
for the review is the recoverable amount of the assets, determined as the greater of the fair value less
cost to sell or its value in use. Value in use is calculated as the net present value of future cash inflow or
savings generated from the asset.
If the carrying amount is greater than the recoverable amount, the asset is written down to the
recoverable amount. An impairment loss is recognized in the income statement when the impairment is
identified.
Zealand Pharma
Annual Report 2024
138
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.2 Property, plant and equipment (continued)
DKK thousand
Plant and
machinery
Other
fixtures and
fittings
Leasehold
improvements
Assets
under
construction
Cost at January 1, 2024
60,805
17,766
38,907
-
Additions
8,225
1,625
202
-
Disposals
-2,415
-1,215
-
-
Currency translation
-
115
187
-
Cost at December 31, 2024
66,615
18,291
39,296
-
Accumulated depreciation and impairment
at January 1, 2024
42,750
14,339
13,342
-
Depreciation for the year
5,510
2,164
2,948
-
Disposals
-2,415
-1,215
-
-
Currency translation
-
115
185
-
Accumulated depreciation and impairment
at December 31, 2024
45,845
15,403
16,475
-
Carrying amount at December 31, 2024
20,770
2,888
22,821
-
Depreciation and impairment for the financial
year has been charged as:
Research and development expenses
-5,501
-1,833
-2,480
-
Sales and marketing expenses
-2
-62
-88
-
General and administrative expenses
-7
-268
-380
-
Total
-5,510
-2,163
-2,948
-
DKK thousand
Plant and
machinery
Other
fixtures and
fittings
Leasehold
improvements
Assets
under
construction
Cost at January 1, 2023
66,828
15,997
38,193
870
Transfers
-
870
-
-870
Additions
9,043
1,386
812
-
Disposals
-15,066
-427
-
-
Currency translation
-
-60
-98
-
Cost at December 31, 2023
60,805
17,766
38,907
-
Accumulated depreciation and impairment
at January 1, 2023
52,339
11,233
7,788
-
Depreciation for the year
5,330
2,372
3,296
-
Impairment for the year
-
1,173
2,270
-
Disposals
-14,919
-427
-
-
Currency translation
-
-12
-12
-
Accumulated depreciation and impairment
at December 31, 2023
42,750
14,339
13,342
-
Carrying amount at December 31, 2023
18,055
3,427
25,565
-
Depreciation and impairment for the financial
year has been charged as:
Research and development expenses
-5,320
-1,775
-2,523
-
Sales and marketing expenses
-
-68
-51
-
General and administrative expenses
-10
-1,702
-2,992
-
Total
-5,330
-3,545
-5,566
-
Impairment in 2023 on other fixtures and fittings of DKK 1.2 million and DKK 2.3 million on leasehold
improvements related to the US Boston office and was included in other operating expenses, refer to note
2.9 Other operating items. For further information on the impairment assessment refer to Management’s
judgements and estimates in note 3.3 Right-of-use assets and lease liabilities.
Disposals on plant and machinery mainly related to scrap of old lab equipment in May 2023.
Zealand Pharma
Annual Report 2024
139
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.3 Right-of-use assets and lease liabilities
Accounting policies
Zealand determines if an arrangement is a lease at inception. Zealand leases comprise various proper-
ties and cars. Rental contracts are typically made for fixed periods. Lease terms are negotiated on an
individual basis and contain wide range of different terms and conditions.
All leases are recognized in the balance sheet as a right-of-use ("ROU") asset with a corresponding lease
liability, except for short term assets in which the lease term is 12 months or less, or low value assets.
ROU assets represent Zealand's right to use an underlying asset for the lease term and lease liabilities
represent Zealand's obligation to make lease payments arising from the lease.
Liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of fixed payments, less any lease incentives. As Zealand's leases do not provide an
implicit interest rate, Zealand uses an incremental borrowing rate based on the information available at
the commencement date of the lease in determining the present value of lease payments. Lease terms
utilized by Zealand may include options to extend or terminate the lease when it is reasonably certain
that Zealand will exercise that option. In determining the lease term, Management considers all facts
and circumstances that create an economic incentive to exercise an extension option, or not exercise a
termination option. Extension options (or periods after termination options) are only included in the lease
term if the lease is reasonably certain to be extended (or not terminated). Interest expenses related to
the lease liability are classified in financial items.
ROU assets are measured at cost and include the amount of the initial measurement of lease liability,
any lease payments made at or before the commencement date less any lease incentives received, any
initial direct costs, and restoration costs. ROU assets are depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis over the lease term.
Payments associated with short-term leases and leases of low-value assets are recognized on a
straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term
of 12 months or less and low-value assets comprise IT equipment and small items of office furniture.
Impairment
If circumstances or changes in Zealand's operations indicate that the carrying amount of right-of-use
assets ("ROU") may not be recoverable, Management reviews that ROU for impairment. The basis for
the review is the recoverable amount of the ROU, determined as the greater of the fair value less cost to
sell or its value in use. Value in use is calculated as the net present value of future cash inflow or savings
generated from the ROU. If the carrying amount is greater than the recoverable amount, the ROU is
written down to the recoverable amount. An impairment loss is recognized in the income statement when
the impairment is identified.
Management's judgements and estimates
Zealand has subleased the US Boston office with effect from August 1, 2024. As of December 31, 2023
Management estimated the recoverable amount of the right-of-use asset related to the US Boston office.
The impairment in 2023 of DKK 11.0 million reflected an assessment of the ROU's carrying amount
against its recoverable amount, considering factors such as future cash flows and market conditions
for office rentals in Boston, Massachusetts. The lease agreement was irrevocable until 2029 thereby
knowing the expected cash flows many years ahead. The initial feedback received from the real estate
agent in 2023 indicated a lower rent level than anticipated thereby triggering the impairment.
The recoverable amount was calculated by applying a discount rate of 4.5% on future cash flows being
the annual effective discount rate from the lease contract. Future cash flows were projected with 2%
annual escalations and current projections included an estimate of the recoverable rent payments until
the end of the lease term on August 31, 2029, partly offset by non-recovered operating expenses and
real estate taxes.
The estimated recoverable amount was subject to sensitivity if the projected level for base rent
per square feet changed. The final sublease agreement that Zealand entered into is in line with
Management's assessment from 2023, thus no adjustments to the impairment have been made in 2024.
The DKK 1.3 million from impairment of right-of-use assets ("ROU") was included in other operating
expenses, refer to note 2.9 Other operating items.
The total provision for onerous contract of DKK 6.2 million was been recognized as an addition to lease
liabilities as of December 31, 2023, out of which DKK 1.4 million was short-term and DKK 4.8 million
was long-term. No impairment losses were previously recognized for the right-of-use asset in Zealand
Pharma U.S., Inc.
Zealand Pharma
Annual Report 2024
140
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.3 Right-of-use assets and lease liabilities (continued)
Amounts recognized in the statement of financial position
The statement of financial position shows the following amounts relating to right-of-use assets:
DKK thousand
Office
Buildings
Other
fixtures and
fittings
As at January 1, 2024
100,884
1,921
Disposals
-12,201
-21
Depreciation expense
-11,690
-847
Currency translation
722
-
As at December 31, 2024
77,715
1,053
As at January 1, 2023
113,379
1,581
Additions
1,860
1,344
Depreciation expense
-12,557
-1,025
Impairment
-1,266
-
Currency translation
-532
21
As at December 31, 2023
100,884
1,921
The Group leases office buildings, equipment, and vehicles. The rental contract for the HQ office building
has been made for a minimum period of 13 years with no extension option (terminable by the landlord
after 15 years). Management has assessed the lease period to be 13 years.
The rental contract for the US office site has a lease expiration date of August 31, 2029 and has been
subleased from August 1, 2024 until the expiration date in 2029 why the right-of-use asset has been
derecognized and reclassified to other receivables, DKK 13.7 million in total (DKK 3.2 million short-term
and DKK 10.5 million long-term, refer to note 3.8). Equipment and vehicles are leased over a period of 3-4
years with no extension option.
Set out below are the carrying amounts of lease liabilities and the movements during the period:
DKK thousand
2024
2023
As at January 1
119,231
122,729
Additions
1,079
5,680
Accretion of interest
2,348
2,890
Payments
-15,475
-12,711
Currency translation
-759
643
As at December 31
106,424
119,231
Non-current
90,388
102,575
Current
16,036
16,655
The following amounts are recognized in the income statement:
Depreciation expense of right-of-use assets
-12,496
-13,610
Interest expense on lease liabilities
-2,332
-2,892
Total amount recognized in profit and loss
-14,828
-16,502
Cash flow
-16,443
-17,664
Total cash outflow from leases
-16,443
-17,664
Depreciation for the financial year has been charged as:
Research and development expenses
-9,778
-8,951
Sales and marketing expenses
-382
-
General and administrative expenses
-2,336
-4,659
Total amount recognized in profit and loss
-12,496
-13,610
Zealand Pharma
Annual Report 2024
141
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.4 Other investments
Accounting policies
Other investments are measured at fair value on initial recognition and subsequently. Changes in fair
value are recognized in the income statement under financial items.
Investment in Beta Bionics Inc.
The Group’s other investments consist of an investment in Beta Bionics, Inc., the developer of iLet™, a
fully integrated dual-hormone pump (bionic pancreas) for autonomous diabetes care. The investment in
Beta Bionics, Inc. is measured at fair value through profit and loss. This investment represents 0.5% (2023:
0.6%) ownership of Beta Bionics, Inc., and is measured at a fair value of DKK 23.6 million as of December
31, 2024 (2023: DKK 14.0 million).
In determining fair value, Zealand considers the value per share from the most recent closed financing
round, adjusted for valuation infliction points through the balance sheet date, including (i) discount
for lack of marketability, (ii) information obtained from third party valuation reports, and (iii) company
announcements.
The following have been recognized as financial items:
DKK thousand
2024
2023
Other investments at January 1
14,004
30,943
Fair value adjustments
9,622
-16,939
Other investments at December 31
23,626
14,004
The fair value adjustment of the investment in 2023 of DKK 16.9 million was a combination of a reduc-
tion of the implied value per share provided by a third-party valuation expert and a discount for lack of
marketability. Reference is made to note 4.3 Financial assets and liabilities for fair value disclosures.
In October 2024 a termination agreement was signed and the partnership with Beta Bionics was
concluded, refer to note 6.7 Collaborations and technology licenses. The stock purchase agreements
and associated agreements covering Zealand's equity investments in Beta Bionics are unaffected by
the termination agreement. In January 2025 all shares in Beta Bionics have been sold, refer to note 6.8
Subsequent events, with the fair value as of December 31, 2024 reflecting the agreed selling price.
3.5 Inventories
Accounting policies
Raw materials, work in progress and finished goods are measured at the lower of cost and net realiz-
able value. Cost is determined on a first in, first out basis and comprises direct materials, direct labor
and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated
on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting
rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of busi-
ness less the estimated costs of completion and the estimated costs necessary to complete the sale.
Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalized but immedi-
ately provided for, until there is a high probability of regulatory approval for the product. A write-down
is made against inventory, and the cost is recognized in the income statement as research and devel-
opment costs. Once there is a high probability of regulatory approval being obtained, the write-down is
reversed, up to no more than the original cost.
Zealand reviews inventory for excess or obsolescence and writes down inventory that has no alternative
uses to its net realizable value. Economic conditions, customer demand and changes in purchasing and
distribution can affect the carrying amount of inventory. We record provisions for potentially obsolete
or slow-moving inventory and lower of cost or net realizable value inventory adjustments. In some
instances, these adjustments can have a material effect on the financial results of an annual or interim
period. In order to determine such adjustments, we evaluate the age, inventory turns, future sales fore-
casts and the estimated fair value of inventory.
Management's judgements and estimates
In 2023, Zegalogue® related raw materials at cost amounted to DKK 7.9 million. Management estimated
the net realizable value to be DKK 7.9 million, and therefore a reversal of Zegalogue® inventory write-
down of DKK 16.0 million was made as the raw materials were expected to be utilized under the license
and development agreement with Novo Nordisk A/S.
Zealand Pharma
Annual Report 2024
142
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.5 Inventories (continued)
DKK thousand
2024
2023
Raw materials
10,698
7,935
Total
10,698
7,935
Write downs on inventory were comprised as follows:
DKK thousand
2024
2023
Accumulated write-downs, January 1
-12,643
-32,257
Utilization of write-downs
934
3,635
Reversal of write-downs
84
15,979
Effect of standard cost updates
-2,719
-
Accumulated write-downs, December 31
-14,344
-12,643
The reversal of write-downs on inventory recognized in 2023 was included in other operating income,
refer to note 2.9 Other operating items.
3.6 Other financial assets
Accounting policies
Please refer to accounting policies in note 4.3 Financial assets and liabilities.
DKK thousand
2024
2023
Other financial assets at January 1
7,375
6,901
Fair value adjustments
-7,375
474
Other financial assets at December 31
-
7,375
Other financial assets comprise the sales-related milestones from the divestment of V-GO. A maximum of
four milestones of USD 2.5 million each can be achieved under the contract based on annual sales. The
fair value has been determined using the risk-adjusted net present value method.
As of December 31, 2024, fair value has been determined to be zero based on uncertainty in future cash-
flows and whether the first sales-related milestone will be reached. In 2023, a discount rate of 4% and an
estimated probability of 50% to reach the first sales-related milestone were applied.
Reference is made to note 4.3 Financial assets and liabilities for fair value disclosures.
Zealand Pharma
Annual Report 2024
143
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.7 Trade receivables
Accounting policies
Receivables are categorized as financial assets measured at amortized cost and are initially measured
at transaction price and subsequently measured in the balance sheet at amortized cost, which generally
corresponds to nominal value less expected credit loss provision.
Zealand utilizes a simplified approach to measuring expected credit losses and uses a lifetime expected
loss allowance for all receivables. To measure the expected credit losses, receivables have been
grouped based on credit risk characteristics and the days past due. Expected credit losses as of
December 31, 2024, and December 31, 2023, are immaterial.
Prepaid expenses include expenditures related to a future financial period. Prepaid expenses are meas-
ured at historical cost.
DKK thousand
2024
2023
Trade receivables
499
1,004
Receivables related to license and collaboration agreements
86,670
68,793
Prepaid expenses
106,390
34,893
Total trade receivables
193,559
104,690
Non-current
-
6,887
Current
193,559
97,803
Receivables related to license and collaboration agreements include withholding tax receivable of DKK
35.4 million from the Boehringer Ingelheim (BI) milestone payment received in 2023.
The increase in prepaid expenses for 2024 compared to prior year is affected by large prepayments in
the second half of 2024 for drug substance related to petrelintide.
3.8 Other receivables
Accounting policies
Deposits relate to up-front payments on rental of office buildings measured at nominal value. Other
receivables include accrued interest on marketable securities and VAT receivables measured at nominal
value.
DKK thousand
2024
2023
Deposits
8,900
8,907
VAT receivables
4,370
9,933
Accrued interest
71,819
9,301
Receivable from sublease
13,697
-
Other receivables
7,831
5,322
Total other receivables
106,617
33,463
Non-current
19,412
8,907
Current
87,205
24,556
Accrued interest of DKK 71.8 million in 2024 relates to investment in marketable securities, refer to note
4.5 for further information.
As of August 1, 2024 the US Boston office has been subleased. The total receivable from sublease of DKK
13.7 million represents present value of future cash inflows until sublease expiration date on August 31,
2029. Of the DKK 13.7 million, DKK 3.2 million is short-term and DKK 10.5 million is long-term.
Zealand Pharma
Annual Report 2024
144
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
3.9 Trade payables
Accounting policies
Please refer to accounting policies in note 4.3 Financial assets and liabilities.
DKK thousand
2024
2023
Trade payables
181,279
91,607
Accruals development projects
73,564
33,464
Total trade payables
254,843
125,071
Non-current
-
-
Current
254,843
125,071
In 2024, the increase in trade payables as of December 31, 2024 is a result of Zealand's intensified
research and development activities driven by the significant clinical advancement of the obesity pipe-
line, including preparations for large, comprehensive Phase 2b trials for the wholly owned obesity assets.
3.10 Other payables
Accounting policies
Please refer to accounting policies in note 4.3 Financial assets and liabilities.
DKK thousand
2024
2023
Payable for treasury shares (note 4.8)
-
81,045
Employee benefits
92,987
51,730
Accrued interest
669
-
Deposits from sublease
1,267
-
Other payables
37,671
10,078
Total other payables
132,594
142,853
Non-current
-
-
Current
132,594
142,853
In April 2024, Zealand settled the bank credit of DKK 81.0 million with Danske Bank entered in June 2023
on the acquisition of 300,000 new treasury shares, refer to note 4.8 Share capital.
Zealand Pharma
Annual Report 2024
145
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.0
Capital structure,
financial risk and
related items
This section includes disclosures related to how Zealand
manages its capital structure, cash position and related
risks and items.
146
4.1
Capital management
147
4.2
Financial risks
150
4.3
Financial assets and liabilities
152
4.4
Cash and cash equivalents
152
4.5
Marketable securities
154
4.6
Borrowings
158
4.7
Financial items
159
4.8
Share capital
160
4.9
Share-based instruments
4.1 Capital management
Capital management
Zealand’s goal is to maintain a strong capital base to maintain investor, creditor and market confidence, and a
continuous advancement of Zealand’s product pipeline and business in general. Zealand is primarily financed
through capital increases, long-term borrowings, and partnership collaboration income.
The adequacy of our available funds will depend on various factors, including progress in our research and
development programs, our commitments to existing and new clinical collaborators, our ability to establish
commercial and licensing arrangements, our capital expenditures, market developments, and any future
partnerships and acquisitions. Accordingly, we plan to potentially raise additional funds through equity or
debt financings, collaborative agreements with partners, or from other sources.
At the annual general meeting on March 20, 2024, Zealand was authorized to increase the share capital by
nominally DKK 12,500,000 during the period until March 20, 2029. On December 31, 2024, nominally DKK
4,150,000 of the authorization remains.
On January 8, 2024, Zealand announced an issue of 3,761,470 new ordinary shares, which represented the
remaining authorization from 2023, at a subscription price of DKK 386.45 per new share resulting in gross
proceeds of DKK 1.5 billion. The capital increase was completed in January 2024.
As announced on June 25, 2024, the Board of Directors exercised the authorization granted by Zealand's
annual general meeting held on March 20, 2024, to increase the Group's share capital by issue of 8,350,000
new ordinary shares at a subscription price of DKK 843 per new share bringing in gross proceeds of DKK 7
billion. The capital increase was completed in June 2024.
On June 30, 2023, Zealand entered a new DKK 350 million Revolving Credit Facility provided by Danske Bank.
The facility was terminated in July 2024 following the equity offering in June 2024 resulting in a cash position
of DKK 9.7 billion.
In December 2023, Zealand signed a new loan agreement with the European Investment Bank (EIB) providing
a credit of up to EUR 90 million, refer to note 4.6 Borrowings for an overview of the loan terms. On March 11,
2024, Zealand received the proceeds from the first tranche under the EIB loan agreement, Tranche A, of DKK
372.8 million (EUR 50 million).
Zealand Pharma
Annual Report 2024
146
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.1 Capital management (continued)
To minimize credit risk Zealand has invested a significant amount in marketable securities, primarily excess
liquidity from previous capital raises. As of December 31, 2024, Zealand has DKK 8,542 million invested in
marketable securities, corresponding to 95% of total cash, cash equivalents and marketable securities (2023:
DKK 1,184 million, 72%). For additional information refer to note 4.5 Marketable securities.
The Company and the Board of Directors monitor the share and capital structure to ensure that Zealand’s
capital resources support the strategic goals. There was no change in the group’s approach to capital
management procedures in 2024. Neither Zealand Pharma A/S nor any of its subsidiaries are subject to
externally imposed capital requirements other than the conditions related to the loan from the European
Investment Bank (EIB), refer to note 4.6 Borrowings.
Under the revolving credit facility (RCF) in Danske Bank, Zealand was required to have a minimum collateral
value of 120% of the loan commitment (DKK 420 million) held in the designated custody accounts under
management by Danske Asset Management and Zealand’s designated cash accounts attached to the custody
accounts. Zealand was also to comply with a covenant on fulfilling certain information requirements. In April
2024 all pledges provided in relation to the credit facility (RCF) in Danske Bank were lifted, just prior to the
termination of the facility in May 2024.
The EIB loan contains a negative pledge clause preventing Zealand Pharma A/S or any of its subsidiaries from
creating or permitting to subsist any new security over any of its assets. The pledges are described further in
note 4.4 Cash and cash equivalents and a description of Zealand’s total commitments can be found in note
6.4 Commitments.
4.2 Financial risks
Zealand is exposed to various financial risks, including foreign exchange rate risk, interest rate risk, credit
risk and liquidity risk.
The objective of Zealand’s treasury policy is to reduce the Group’s sensitivity to fluctuations in exchange
rates, interest rates, credit rating and liquidity. Zealand’s financial management policy has been endorsed
by Zealand’s Audit Committee and ultimately approved by Zealand’s Board of Directors.
Exchange rate risk
Most of Zealand’s financial transactions are in DKK, USD, and EUR.
Due to Denmark’s long-standing fixed exchange rate policy vis-à-vis the EUR, Zealand has evaluated that
there is no material transaction exposure or exchange rate risk regarding transactions in EUR.
Research and development, and regulatory milestone payments in license and collaboration agreements
are denominated in foreign currencies, namely USD and EUR. However, as milestone payments are unpre-
dictable in terms of timing and materialization, the payments are not included in the basic exchange rate
risk evaluation.
As Zealand conducts clinical trials and toxicology studies around the world and has activities in US,
Zealand is exposed to exchange rate risks associated with the denominated currency, which is primarily
USD based on volume and fluctuations against DKK. To date, Zealand’s policy has been to manage the
transaction and translation risk associated with the USD passively, by having a portion of the Group's
cash and cash equivalents in a USD account to cover future payment of Zealand’s expenses denominated
in USD.
As of December 31, 2024, Zealand holds DKK 338.3 million (2023: DKK 313.9 million) of its cash, cash
equivalents and marketable securities in USD.
Zealand Pharma
Annual Report 2024
147
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.2 Financial risks (continued)
Interest rate risk
Zealand has a policy of avoiding financial instruments that expose the Group to any unintended financial
risks. During 2024, all cash has been held in current bank accounts in DKK, USD, and EUR.
Following the closure of Silicon Valley Bank in March 2023, Zealand has made a shift towards more
investments of surplus cash balances into low-risk marketable securities being fixed income instruments
with an investment graded rating of AAA to BBB-.
The excess liquidity from the capital increases completed in January 2024 and June 2024, has been
placed into the DKK portfolio and EUR portfolio. At maturity funds are reinvested to minimize lost interest
income from marketable securities. The Group’s marketable securities portfolio comprises various types
of bonds and securities as described in note 4.5 Marketable securities. All bonds held as of December
31, 2024 mature within 19 months (2023: 13 months). Refer further to note 4.5 Marketable securities for
interest sensitivity on marketable securities.
As of December 31, 2024, Zealand has borrowings amounting to DKK 285.3 million (2023: DKK 0 million),
derivative financial liabilities at fair value amounting to DKK 109.7 million (2023: DKK 0 million) and lease
liabilities amounting to DKK 106.4 million (2023: DKK 119.2 million). Lease liabilities as of December 31,
2023, included a provision for onerous contract of DKK 6.1 million as part of the impairment of the right-
of-use asset related to the US Boston office as described in detail in note 3.3 Right-of-use assets and
lease liabilities. The change in borrowings and derivative financial liabilities is a result of the EIB loan
(Tranche A) as described in note 4.6 Borrowings.
An increase in interest rates would be reflected in an increase in interest income from the group's cash
balances.
Credit risk
Zealand is exposed to credit risk in respect of receivables, bank balances and bonds. The maximum
credit risk corresponds to the carrying amount. Management believes that credit risk is limited, as the
counterparties to the trade receivables are large global pharmaceutical companies. Cash and bonds are
associated with an inherent credit risk, though not considered to be very high, as the counterparties are
banks with investment-grade ratings (i.e. A3 or higher from Standard & Poor’s).
Liquidity risk
The purpose of Zealand’s cash management is to ensure that the Group always has sufficient and flexible
financial resources at its disposal.
Zealand’s short-term liquidity is managed and monitored by means of the Company’s internal treasury
function, annual budget process and quarterly budget revisions to balance the demand for liquidity and
maximize the Company’s interest income by matching its free cash in fixed-rate, fixed-term bank deposits
and bonds with its expected future cash burn.
Zealand’s total liquidity reserve has increased significantly in 2024, with the DKK 1.45 billion and DKK
7.0 billion capital raises in January and June 2024, respectively (surplus funds invested in marketable
securities). The proceeds from the EIB loan (Tranche A) was disbursed on March 11, 2024, while the credit
facility in Danske Bank was terminated in May 2024.
EIB loan Tranches B and C are excluded as they are dependent on predefined milestones being met.
DKK thousand
2024
2023
Cash and cash equivalents
480,303
449,311
Marketable securities
8,541,713
1,183,746
Danske Bank revolving credit facility (RCF)
-
350,000
EIB loan (Tranche A)
-
372,645
Total liquidity reserve as of December 31
9,022,016
2,355,702
Reference is made to going concern considerations in note 1.1 Basis of preparation, going concern assump-
tion, nature of the business and accounting policies for further description of the going concern assessment.
Zealand Pharma
Annual Report 2024
148
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.2 Financial risks (continued)
Sensitivity analysis
The table shows the impact on profit/loss and equity of changes in valuation of the Company’s opera-
tions in USD, i.e. cash, cash equivalents, marketable securities and lease liabilities as of December 31,
2024, and December 31, 2023, assuming a 10% fluctuation in the USD conversion rate.
2024
2023
DKK thousand
Fluctuation
Effect
Fluctuation
Effect
USD
+/-10%
+/-28,550
+/-10%
+/-29,187
The table shows the impact on profit/loss and equity from changes in the yield on marketable securities
as of December 31, 2024, and December 31, 2023, assuming a 1% fluctuation in the yield rate.
2024
2023
DKK thousand
Fluctuation
Effect
Fluctuation
Effect
Effect on interest income from a yield change
on marketable securities
+/-1.0%
+/-85,417
+/-1.0%
+/-11,837
Contractual maturity (liquidity risk)
Details on the Group’s aggregate liquidity risk on financial liabilities is provided below.
The following table details the Group’s remaining contractual maturity for its financial liabilities with
agreed repayment periods. The table has been prepared using the undiscounted cash flows for financial
liabilities, based on the earliest date on which the Group can be required to pay. The table includes both
interest and principal cash flows. To the extent that the specific timing of interest or principal flows is
dependent on future events, the table has been prepared based on Management’s best estimate of such
timing at the end of the reporting period.
Except for leasing and borrowings, there are no interest cash flows to be included in the table below for
the existing financial liabilities as they are not interest-bearing financial liabilities.
DKK thousand
< 12 months
1-5 Years
> 5 Years
Total
Carrying
amount
Borrowings including derivative
financial liabilities
-
-
394,997
394,997
394,997
Lease liabilities
15,428
61,177
33,350
109,955
106,424
Trade payables
254,843
-
-
254,843
254,843
Other payables
132,594
-
-
132,594
132,594
Total financial liabilities as of
December 31, 2024
402,865
61,177
428,347
892,389
888,858
Lease liabilities
15,377
61,094
47,763
124,234
119,231
Trade payables
125,071
-
-
125,071
125,071
Other payables
142,853
-
-
142,853
142,853
Total financial liabilities as of
December 31, 2023
283,301
61,094
47,763
392,158
387,155
All cash flows are non-discounted, including interest. Contractual obligations related to payments under
agreements for development projects, including Contract Research Organizations (CROs), are disclosed in
note 6.4 Commitments, as their maturity dates are uncertain.
Cash flows denominated in USD are translated into DKK at the USD/DKK rates applicable as of December
31, 2024.
On March 11, 2024, Zealand received the proceeds from the first tranche under the EIB loan agreement,
Tranche A, of DKK 372.8 million (EUR 50 million). On May 10, 2023, Zealand settled the Oberland Capital
loan, including embedded derivatives as described in note 4.6 Borrowings.
Zealand Pharma
Annual Report 2024
149
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.3 Financial assets and liabilities
Accounting policies
Classification of Categories of Financial Assets and Liabilities:
Zealand classifies its financial assets held into the following measurement categories:
ș those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and
ș those to be measured at amortized cost.
The classification depends on the business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income.
Zealand reclassifies debt investments only when its business model for managing those assets changes.
Further details about the accounting policy for each of the categories are outlined in the respective
notes.
Fair Value Measurement
Zealand measures financial instruments, such as marketable securities, at fair value at each balance
sheet date. Management assessed that the fair value of financial assets and liabilities measured at
amortized cost such as bank deposits, receivables and other payables approximate their carrying
amounts largely due to the short-term maturities of these instruments.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
ș In the principal market for the asset or liability, or
ș In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by Zealand.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest. Zealand uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs. For financial instruments that are measured in the balance
sheet at fair value, IFRS 13 for financial instruments requires disclosure of fair value measurements by
level of the following fair value measurement hierarchy for:
ș Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities
ș Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices)
ș Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unob-
servable inputs).
For assets and liabilities that are recognized in the financial statements on a recurring basis, Zealand
determines whether transfers have occurred between levels in the hierarchy by re-assessing categoriza-
tion (based on the lowest level input that is significant to the fair value measurement as a whole) at the
end of each reporting period. Any transfers between the different levels are carried out at the end of the
reporting period.
Zealand Pharma
Annual Report 2024
150
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.3 Financial assets and liabilities (continued)
DKK thousand
Note
2024
2023
Categories of financial instruments
Trade receivables excluding prepaid expenses
3.7
87,169
69,797
Other receivables
3.8
106,617
33,464
Financial assets at amortized costs
193,786
103,261
Marketable securities (Level 1)
4.5
8,541,713
1,183,746
Other investments (Level 3)
3.4
23,626
14,004
Other financial assets (Level 3)
3.6
-
7,375
Financial assets measured at fair value through
profit and loss
8,565,339
1,205,125
Borrowings
4.6
285,332
-
Lease liabilities
3.3
106,424
119,230
Trade payables
3.9
254,843
125,071
Other payables
3.10
132,594
142,852
Financial liabilities measured at amortized cost
779,193
387,153
Cash-settled warrant liability from EIB loan, Tranche A (Level 3)
4.6
109,665
-
Financial liabilities measured at fair value through
profit and loss
109,665
-
DKK thousand
Financial
assets
(Level 3)
Financial
liabilities
(Level 3)
Carrying amount at January 1, 2024
21,379
-
Fair value adjustments through profit and loss
2,247
-
Initial fair value of cash-settled warrant liability from EIB loan, Tranche A
-
99,063
Fair value adjustment of warrant liability from EIB loan, Tranche A
-
10,602
Carrying amount at December 31, 2024
23,626
109,665
DKK thousand
Financial
assets
(Level 3)
Financial
liabilities
(Level 3)
Carrying amount at January 1, 2023
37,844
80,603
Fair value adjustments through profit and loss
-16,465
-1,161
Exchange rate effect through other comprehensive income
-
-1,916
Derecognition of call option on settlement of Oberland Capital loan
-
-77,526
Carrying amount at December 31, 2023
21,379
-
No transfers between fair value levels have occurred during 2024 and 2023.
Zealand Pharma
Annual Report 2024
151
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.4 Cash and cash equivalents
Accounting policies
Cash is measured on intitial recognition at cost.
DKK thousand
2024
2023
Cash and cash equivalents
480,303
449,311
Total cash and cash equivalents
480,303
449,311
Pledges provided in relation to the EIB loan
The EIB loan contains a negative pledge clause preventing Zealand Pharma A/S or any of its subsidiaries
from creating or permitting to subsist any new security over any of its assets.
Termination of Revolving Credit Facility in Danske Bank
The Revolving Credit Facility of DKK 350 million provided by Danske Bank was terminated in July 2024
following the equity offering in June 2024 resulting in a cash position of DKK 9.7 billion.
4.5 Marketable securities
Accounting policies
Marketable securities consist of investments in securities with a maturity of ninety days or greater at the
time of acquisition. Measurement of marketable securities depends on the business model for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories which
Zealand considers when classifying its marketable securities:
ș Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows
represent solely payments of principal and interest, are measured at amortized cost. Interest income
from these financial assets is included in finance income using the effective interest rate method. Any
gain or loss arising on derecognition is recognized directly in profit or loss and presented in other
gains/(losses), together with foreign exchange rate gains/(losses). Impairment losses are presented as
a separate line item in the statement of profit or loss.
ș Fair value through other comprehensive income (FVOCI): Assets that are held with an objective that
results in collecting contractual cash flows and selling financial assets are measured at FVOCI. A gain
or loss on assets that is subsequently measured at FVOCI is recognized in other comprehensive profit
or loss. Impairment losses and foreign exchange rate gains/(losses) are presented as a separate line
item in the statement of profit or loss.
ș Fair value through profit and loss (FVTPL): Assets that do not meet the criteria for amortized cost or
fair value through other comprehensive income (FVOCI) are measured at FVTPL. A gain or loss on a
debt investment that is subsequently measured at FVTPL is recognized in profit or loss and presented
net within financial income or expenses in the period in which it arises.
Zealand's portfolio is managed and evaluated on a fair value basis in accordance with its stated invest-
ment guidelines and the information provided internally to Management. This business model does not
meet the criteria for amortized cost or FVOCI and as a result marketable securities are measured at fair
value through profit and loss. This classification is consistent with prior year's classification.
Transactions are recognized at trade date.
Zealand Pharma
Annual Report 2024
152
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.5 Marketable securities (continued)
DKK thousand
2024
2023
DKK portfolio:
DK bonds
7,341,038
509,948
Total DKK portfolio
7,341,038
509,948
EUR portfolio:
IG Corporate bonds (investment-grade)
954,944
454,467
Total EUR portfolio
954,944
454,467
USD portfolio:
Asset-backed securities
3,963
2,738
Certificates of deposit
134,964
125,178
Commercial paper
100,003
69,823
U.S. Treasury Debt
1,637
2,664
U.S. Treasury Repurchase Agreement
5,164
18,928
Total USD portfolio
245,731
219,331
Total portfolio
8,541,713
1,183,746
Non-current
819,632
-
Current
7,722,081
1,183,746
All marketable securities have a fixed interest rate but different maturities. As of December 31, 2024, all
outstanding securities were expected to mature within 19 months (2023: within 13 months).
The excess liquidity from the capital increases completed in January 2024 and June 2024, has been
placed into the DKK portfolio and EUR portfolio. All securities in the portfolio have an investment graded
rating of AAA to BBB-.
Marketable securities acquired in 2024 are managed and evaluated on a fair value basis in accordance
with its stated investment guidelines and the information provided internally to Management. This clas-
sification is consistent with prior year's classification. Refer to note 4.3 Financial assets and liabilities for
information on fair value measurement and the fair value hierarchy.
In October 2023, the USD portfolio previously held at Silicon Valley Bank has been transferred to JP
Morgan. The DKK and EUR portfolios are held at Danske Bank.
Zealand Pharma
Annual Report 2024
153
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.6 Borrowings
Accounting policies
On initial recognition, borrowings are measured at fair value which is generally equal to the proceeds
received. Fair value is allocated between the debt host contract and, if applicable, an embedded deriv-
ative. Transaction costs attributable to the debt host contract are deducted from the initial fair value
and amortized over the term of the loan as part of the effective interest rate on the loan. Transaction
costs attributable to non-closely related embedded derivatives are expensed on initial recognition.
Subsequently, borrowings are measured at amortized cost. On initial recognition, borrowings are eval-
uated for the existence of non-closely related embedded derivatives, i.e. cash flows or potential cash
flows whose economic characteristics and risks are not closely related to the economic characteristics
and risks in the debt host contract such as prepayment options at amounts which are not substantially
equal to the loan’s amortized cost. The cash flows attributable to such non-closely related embedded
derivatives are separated and accounted for as derivative financial instruments.
Loan commitments are not recognized. Lender fees and transaction costs attributable to unconditional loan
commitments are treated as prepaid transaction costs if the Group expects to draw down on the facility.
If the Group has no specific plans for draw down on the loan commitment, the transaction costs are amor-
tized over the commitment period. If a loan commitment is subject to meeting certain conditions, it is consid-
ered an unconditional loan commitment if the Group considers it probable that the conditions will be met.
Amendment of the terms of a loan is accounted for as an extinguishment of the original loan and recog-
nition of a new liability reflecting the amended terms if the amended terms are substantially different
from the original terms. Both quantitative and qualitive factors are considered. If the present value of the
amended cash flows discounted at the original effective interest rate differs by 10% or more, the amend-
ment is treated as an extinguishment. If the presented value of the amended cash flows differs by less
than 10%, Management evaluates qualitative factors such as:
ș Change in collateral and restrictions of the use of proceeds
ș Significant change in the term of the loan
ș Change in loan currency and interest base
All fees incurred in connection with a modification of the terms accounted for as an extinguishment are
recognized as an expense.
Derecognition of financial liabilities: A financial liability is derecognized when the obligation under the
liability is settled, discharged, cancelled, or expires. The difference between the carrying amount of a
financial liability extinguished and the consideration paid is recognized through profit and loss.
DKK thousand
2024
2023
Borrowings at amortized cost
285,332
-
Derivative financial liabilities at fair value
109,665
-
Total borrowings including derivative financial liabilities
394,997
-
Loan facility from the European Investment Bank (EIB)
In December 2023, Zealand entered into a new EUR 90 million finance agreement with the European
Investment Bank (EIB). The loan, which was offered at competitive terms, is structured with part of the
interest paid at recurring intervals during the term and part being deferred (non-compounding) for
payment at maturity of each tranche. In addition, the EIB has entered into a warrant agreement with
Zealand that will entitle the EIB to receive warrants in Zealand when each tranche is drawn down. The
warrants will, subject to the warrant terms, entitle the warrant holder to subscribe for ordinary shares in
Zealand at market price.
On March 11, 2024, Zealand received the proceeds from the first tranche under the EIB loan agreement,
Tranche A, of DKK 372.8 million (EUR 50 million).
In 2024, DKK 2.3 million was capitalized through transaction costs related to the loan facility from
entering the agreement, which will be amortized over the loan term (2023: DKK 0.7 million).
Zealand Pharma
Annual Report 2024
154
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
Loan terms:
Amount:
The loan facility may be utilized in up to three tranches of EUR 50
million (Tranche A), EUR 20 million (Tranche B) and EUR 20 million
(Tranche C), respectively, with disbursement of each tranche subject
to pre-specified milestones being met. A floating rate and a deferred
interest rate shall be paid on each tranche.
Maturity date:
6 years from the disbursement date of the relevant tranche.
Repayment:
Each tranche under the EIB loan must be repaid on the maturity date.
Prepayment fee:
1-5% of principal amount if prepaid before maturity.
Floating rate:
EURIBOR + fixed margin (cash pay margin).
Deferred interest rate:
Low single digit for all tranches.
Commitment fee:
Low single digit on the daily undrawn and uncancelled balance of
the relevant tranche. The commitment fee becomes effective from
the date falling 6 months from the date of the agreement (Tranche
A) or from the date falling 6 months from conditions being fulfilled
(Tranches B and C).
Warrants:
With the disbursement of each tranche, warrants are granted to EIB
in accordance with the warrant agreement. The warrants granted will
vest as the loan(s) are repaid. If not utilized, any warrants will expire
twenty years from the signing date of the contract.
Once the warrants have vested, EIB has a put option enabling them to
sell the warrants back to Zealand at fair market value at any time.
Management's judgements and estimates
Fair value measurement of warrants, derivative financial liability (EIB, Tranche A)
In accordance with IFRS 2, the fair value of the warrants at grant date is recognized as an expense in the
income statement over the vesting period.
Fair value of the warrants granted to the European Investment Bank (EIB) with the disbursement of
the loan’s first tranche (Tranche A), classified as a derivative financial liability, is determined using
Black-Scholes valuation technique in line with Zealand’s existing warrant compensation programs. The
warrants will become exercisable as the loan(s) is/are repaid (ignoring events as delisting, default e.g.
which could also lead to exercisability). Each Tranche has a maturity date of 6 years from disbursement.
If not exercised, any warrant will expire 20 years from the signing date of the contract. Based on this, the
calculation of fair value assumes an expected life of 20 years for the options (contractual term).
Other inputs used are i) the current stock price of the Zealand share on the date of measurement, ii)
expected volatility (see below), iii) expected dividend (see below) and iv) the risk-free interest rate deter-
mined using a 20-year Danish government bond.
The strike price is a 5-day volume weighted average (VWAP) calculated from the date of the disburse-
ment offer acceptance on February 26, 2024, from which date Zealand had an unconditional right to
receive the proceeds for Tranche A.
Fair value of the warrants amounted to DKK 109.7 million as of December 31, 2024. On initial recogni-
tion in March 2024, Management has determined that the transaction price is equal to fair value and
that consequently, there is no day 1 gain/loss to account for in financial items. The warrants are subse-
quently measured at fair value through profit and loss (FVTPL) and adjustments are included under
financial items, refer to note 4.7 Financial items.
The fair value measurement of the warrants is partly determined based on unobservable input
(level 3) being the expected volatility for the Zealand share which is unobservable since there are no
traded Zealand warrants. Since expected volatility has significant impact on the valuation, especially
considering the long term, i.e. 20 years, it is classified as a level 3 input in the fair value hierarchy. As
of December 31, 2024, the applied volatility is 53% based on volatility for the Zealand share in the
Zealand Pharma
Annual Report 2024
155
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
past 5 years. Also impacting the fair value is expected dividend over the next 20 years (Level 3). As of
December 31, 2024, the applied expected dividend yield is 0%.
An increase in volatility will increase the fair value of the warrants. Further, an increase in expected divi-
dend will decrease the fair value and vice versa. The below summarizes the effect of altering the unob-
servable inputs that would change the fair value significantly.
ș Expected volatility -10%, decrease in fair value of DKK -8.0 million
ș Expected volatility +10%, increase in fair value of DKK 6.4 million
ș Expected dividend +0.5%, decrease in fair value of DKK -11.1 million
ș Expected dividend +1%, decrease in fair value of DKK -21.1 million
Fair value measurement of prepayment option (EIB loan, Tranche A)
The loan agreement contains a prepayment option whereby Zealand may irrevocably prepay all or part
of any Tranche, together with accrued interest, prepayment fee and indemnities, if any, and any amount
due in connection to such Tranche. By prepaying any Tranche, Zealand will have to pay a low single
digit prepayment fee of the prepayment amount. The fee will decrease up until the maturity date of any
Tranche, i.e. over a 6-year period.
The prepayment option will result in repayment of an amount which is not approximately equal to the
loan's amortized cost at each point of exercise, and consequently, the prepayment option shall be sepa-
rated as a non-closely related embedded derivative. As of December 31, 2024, the prepayment option
does not have any significant fair value.
Termination of Revolving Credit Facility (RCF) provided by Danske Bank
The Revolving Credit Facility of DKK 350 million provided by Danske Bank in May 2023 was terminated
in July 2024 following the equity offering in June 2024 resulting in a cash position of DKK 9.7 billion. All
pledges provided in relation to the credit facility were lifted in April 2024, refer to note 4.4 Cash and cash
equivalents. The main terms of the facility are listed below.
In 2024, there have been no significant transaction costs related to the facility, thus no transaction costs
have been capitalized from entering the agreement (2023: None). As of December 31, 2024, total amount
of undrawn borrowing facilities amounts to DKK 0 million (2023: DKK 350 million).
Settlement of Oberland Capital loan
On April 20, 2023, Oberland Capital exercised an option in the loan agreement to provide an additional
loan of USD 12.5 million on similar terms as the existing loan, bringing the total principal amount to USD
62.5 million. The additional loan of USD 12.5 million was not provided in cash.
On May 10, 2023, Zealand settled the Oberland Capital loans, including embedded derivatives, in a
one-time payment of USD 77.3 million (DKK 525.7 million). With this final repayment, the Group’s loan
agreement with Oberland Capital was fully settled. As a result of the settlement Zealand in 2023 recog-
nized a net loss of USD 19.9 million (DKK 135.6 million) under financial items, including derecognition of
Oberland Capital’s call option with a carrying value as of May 10, 2023, of USD 11.4 million (DKK 77.5
million).
For an overview of the events under the loan agreement from December 31, 2022, and until repayment
on May 10, 2023, please refer to the movement table presented below. With the final repayment in 2023,
Oberland released all rights to collateral provided for under the loan agreement.
Management's judgements and estimates
Fair value measurement of lender's call option
Fair value of the lender call option was determined as the difference between the present value of the
probability weighted contractual cash flow upon the occurrence of a call option trigger event and the
present value of the contractual cash flows without a call option trigger event occurring, discounted at
the expected internal rate of return of 14.3%. It was assumed that any call option trigger event would
result in full repayment of the loan. At the time of settlement on May 10, 2023, the fair value of the option
amounted to DKK 77.5 million. The fair value change of DKK 1.2 million in 2023 was included in financial
items, while the effect of changes to the exchange rate, DKK 1.9 million, was included in other compre-
hensive income. Valuation was based on unobservable data (level 3).
Zealand Pharma
Annual Report 2024
156
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
Changes arising from EIB loan agreement
– including changes for level 3 derivative financial liabilities
Cash changes
Non-cash changes recognized in profit and loss
Carrying value as
of December 31,
2023
Principal
received EUR 50
million
Payment of
interest
Currency
adjustments
Fair value
adjustments
Amortization
Interest accrued
Carrying value as
at December 31,
2024
Borrowings at amortized costs
-
273,697
-
-2,124
-
13,759
-
285,332
Derivative financial liabilities at fair value – warrants (Tranche A)
-
99,063
-
-
10,602
-
-
109,665
Other payables - accrued interest
-
-
-11,589
-89
-
-
12,347
669
Total impact from EIB loan agreement
-
372,760
-11,589
-2,213
10,602
13,759
12,347
395,666
Changes arising from Oberland loan agreement
– including changes for level 3 embedded derivatives
Non-cash
changes
recognized in
profit and loss
Non-cash changes over other comprehensive income
Cash changes
Carrying value as
of December 31,
2022
Loss on
settlement
Fair value
adjustments
Amortization
Interest accrued
Currency
adjustments
Repayment of
debt, Including
premium
Currency
adjustments
Carrying value as
at December 31,
2023
Borrowings at amortized costs
320,743
211,938
-
943
-
-7,960
-525,664
-
-
Embedded derivatives at fair value – Lender call option
80,603
-77,526
-1,161
-
-
-1,916
-
-
-
Other payables - accrued interest
-8,184
1,176
-
-
15,688
263
-
-8,943
-
Total impact from Oberland loan agreement
393,162
135,588
-1,161
943
15,688
-9,613
-525,664
-8,943
-
Zealand Pharma
Annual Report 2024
157
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.7 Financial items
Accounting policies
Financial items include interests, as well as foreign exchange rate adjustments, fair value adjustments of
other investments, embedded derivatives and marketable securities, banking fees from managing finan-
cial transactions, gains and losses from sale of marketable securities and dividends from marketable
securities.
DKK thousand
2024
2023
Interest income
169,639
45,324
Interest expenses from financial liabilities measured at amortized cost
-31,715
-22,941
Interest expenses from lease liabilities
-2,332
-2,890
Loss on settlement of borrowings, including embedded derivatives
under Oberland loan
-
-135,588
Fair value adjustment of lender's call option
-
1,161
Fair value adjustment of marketable securities
50,089
7,630
Fair value adjustment of other investments
2,247
-16,465
Fair value adjustment warrants, EIB (Tranche A)
-10,602
-
Exchange rate adjustments (primarily on USD deposits)
18,289
-9,708
Other financial expenses
-6,853
-3,150
Financial items in total
188,762
-136,627
Presentation in income statement:
Financial income
240,264
54,115
Financial expenses
-51,502
-190,742
Interest income in 2024 of DKK 169.6 million comprises interest on marketable securities. The increase
compared to 2023 is a result of the excess liquidity from recent capital increases invested into marketable
securities, refer to note 4.5 Marketable securities. Interest income on marketable securities is based on
coupon rates provided by J.P. Morgan and Danske Bank.
Interest expenses from financial liabilities measured at amortized cost in 2024 of DKK 31.7 million relate to
the EIB loan (Tranche A) disbursed on March 11, 2024, and commitment fee from the DKK 350 million credit
facility in Danske Bank, with the latter terminated in July 2024. In 2023, interest expenses and banking fees
related to the Oberland Capital loans which were settled in May 2023.
In 2023, loss on settlement of borrowings relates to the settlement of the Oberland loan on May 10, 2023.
Refer to note 4.6 Borrowings for further information.
Fair value adjustment of other investments comprises the accounting impact of the investment in Beta
Bionics of DKK 9.6 million as described in note 3.4 Other investments, but also a negative fair value adjust-
ment of V-GO sales-related milestones of DKK 7.4 million, refer to note 3.6 Other financial assets.
Fair value adjustment of warrants, EIB (Tranche A) of DKK 10.6 million in 2024 relates to the warrants
granted to the European Investment Bank (EIB) with the disbursement of the loan’s first tranche (Tranche A),
refer to 4.6 Borrowings.
Zealand Pharma
Annual Report 2024
158
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.8 Share capital
Accounting policies
The share capital comprises the nominal amount of Zealand Pharma A/S’s ordinary shares, each at a
nominal value of DKK 1. All shares are fully paid.
The share premium reserve is comprised of the amount received, attributable to shareholders’ equity, in
excess of the nominal amount of the shares issued at the parent company’s capital increases or exercise
of warrants, reduced by any external expenses directly attributable to the offerings. The total nominal
amount from purchase of treasury shares is recognized in retained losses, including any amount excess
of the nominal amount.
Share option schemes
The Group has share option schemes for warrants, performance share units (PSUs) and restricted share
units (RSUs) under which options to subscribe for the Group’s shares have been granted to employees,
Management and Board of Directors. Refer to note 4.9 Share-based instruments for further details.
PSUs and RSUs exercised in each respective year have been settled using the treasury shares of the
Group. Any excess of the cash received from exercise of warrants over the nominal amount of the shares
issued is recorded in share premium.
DKK thousand
2024
2023
Share capital at January 1
58,751
51,702
Shares issued for cash
12,112
6,579
Exercise of warrants
161
470
Share capital at December 31
71,024
58,751
The share capital solely consists of one class of ordinary shares all issued at DKK 1 each and all shares
rank equally. The shares are negotiable instruments with no restrictions on their transferability. All
shares have been fully paid. At the annual general meeting on March 20, 2024, Zealand was authorized
to increase the share capital by nominally DKK 12,500,000 during the period until March 20, 2029. On
December 31, 2024, nominally DKK 4,150,000 of the authorization remains. The Company has an unused
authorization to issue convertible debt instruments with access to conversion to shares in the Company
of up to a total of nominally DKK 10,850,136. This authorization covers the period until April 15, 2026.
On January 8, 2024, Zealand announced an issue of 3,761,470 new ordinary shares, which represented
the remaining authorization from 2023, at a subscription price of DKK 386.45 per new share resulting in
gross proceeds of DKK 1.5 billion. The capital increase was completed in January 2024.
As announced on June 25, 2024, the Board of Directors exercised the authorization granted by Zealand's
annual general meeting held on March 20, 2024, to increase the Group's share capital by issue of
8,350,000 new ordinary shares at a subscription price of DKK 843 per new share bringing in gross
proceeds of DKK 7 billion. The capital increase was completed in June 2024.
The costs related to the capital increases completed in January and June were DKK 22.9 million and DKK
213.6 million, respectively.
During 2024, a total of 161,249 new shares (2023: 470,106) have been issued due to exercise of warrant
programs with net proceeds of DKK 30.7 million (2023: DKK 63.9 million) corresponding to an average
exercise price of DKK 190.6 (2023: DKK 136.0). For additional information on the potential dilutive effects
refer to note 2.10 Earnings per share.
Treasury shares
As of December 31, 2024, there were 373,501 treasury shares, equivalent to 0.5% of the share capital
(2023: 373,134, 0.6%). The treasury shares are allocated to performance share units (PSUs) and restricted
share units (RSUs).
In June 2023 Zealand acquired 300,000 new treasury shares by entering a bank credit with Danske Bank.
The payable amount for treasury shares of DKK 81.0 million was recognized under equity in 2023 when
Zealand acquired the 300,000 new treasury shares. The agreement relating to the bank credit contains
both a net settlement alternative and a gross settlement alternative. Management has chosen to account
for the treasury shares gross and the chosen accounting policy reflects Management’s intention with the
acquisition of the new treasury shares.
In April 2024 Zealand gross settled the payable amount of DKK 81.0 million previously included as a
liability in other payables, refer to note 3.10.
In July 2024 Zealand acquired 300,000 treasury shares through a share buyback program with Danske
Bank to support Zealand’s Long Term Incentive programs.
Zealand Pharma
Annual Report 2024
159
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.9 Share-based instruments
To motivate and retain key employees, Management and Board of Directors and to encourage the
achievement of common goals for employees, Management and shareholders, the Group has established
equity-settled incentive plans based on Restricted share units (RSUs), Performance share units (PSUs) and
warrants.
Warrants, PSUs and RSUs are granted by the Board of Directors in accordance with authorizations given
to it by Zealand Pharma A/S’s shareholders. Grants to members of the Board of Directors and members
of the Executive Management are subject to the Remuneration Policy adopted at the Annual General
Meeting.
Share-based compensation expense
The total expense recognized for the year under staff costs arising from share-based instruments was as
follows:
DKK thousand
2024
2023
Recognized as staff costs:
Share-based compensation expenses
87,032
61,426
Total
87,032
61,426
Total share-based compensation expenses split on type of award
DKK thousand
2024
2023
PSUs
19,225
18,209
RSUs
36,392
22,481
Warrants
31,415
20,736
Total
87,032
61,426
Total share-based compensation expenses split on expense type
DKK thousand
2024
2023
The amount is presented as:
Research and development expenses
41,262
29,758
Selling and marketing expenses
3,467
1,732
General and administrative expenses
42,303
29,936
Total
87,032
61,426
Accounting policies
Share-based compensation expenses
The value of services received as consideration for share-based compensation is measured at the fair
value of the granted instrument. The fair value of equity-settled share-based compensation is deter-
mined at the grant date and is recognized in the income statement as employee benefit expense over the
period in which the instruments vest. The offsetting entry is recognized under equity. At each reporting
date, an estimate is made of the number of instruments expected to vest, so the total expense recog-
nized over the vesting period is equal to fair value of the actual number of instruments which vest. The
fair value of warrants granted is estimated using the Black–Scholes pricing model, whereas for RSUs and
PSUs the closing share price on the day of the grant is used.
In respect of performance obligations, market conditions, such as when the exercisability of an instru-
ment depends on the achievement of a specified target that is based on the market price or value of the
entity’s equity instruments, relative to an index, are taken into account when estimating the fair value of
the award at the grant date, while non-market vesting conditions, such as forfeiture rates, are taken into
account by adjusting the number of equity instruments included in the measurement of the transaction
amount so as to reflect the number of awards that are expected to vest.
Management's judgements and estimates
Estimate of fair value of share-based compensation programs
In accordance with IFRS 2, the fair value of the warrants at grant date is recognized as an expense in the
income statement over the vesting period.
Zealand Pharma
Annual Report 2024
160
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.9 Share-based instruments (continued)
The fair value of each warrant granted during the year is calculated using the Black-Scholes pricing
model. This pricing model requires the input of assumptions such as:
• The expected share price volatility, which is based upon the historical volatility of Zealand's share price.
• The risk-free interest rate, which is determined based on the interest rate on Danish government bonds
(bullet issues) with a maturity similar to the expected life of the option.
• The expected life of warrants, which is based on vesting terms, expected rate of exercise, and contrac-
tual life terms in the current warrant program.
These assumptions can vary over time and can change the fair value of future warrants granted.
Estimate of forfeiture rate for share-based compensation programs
The estimated number of shares expected to vest is based on a series of factors such as:
• The historic rate of employee turnover adjusted for significant events.
• Remaining time until vesting.
• Expected achievement of performance goals for PSUs.
Determination of fair value of the instruments granted
The exercise price is determined by the closing price of Zealand’s shares on Nasdaq Copenhagen on the
day prior to the grant date.
Warrants granted prior to April 15, 2020, expire automatically after five years. Warrants granted from
April 15, 2020, and going forward expire automatically after 5 or 10 years for warrants granted to
Corporate Management and employees, respectively. Warrants vest either after 3 years of service, with
1/36 each month from the grant date, or with 1/3 after one year, 1/3 after two years and 1/3 after three
years. The service cost is recognized over the respective vesting periods.
Warrants may be exercised four times a year during a four-week period starting from the date of the
publication of Zealand’s Annual Report or interim reports. Dividends are not expected.
For warrants granted after January 1, 2019, the volatility rate used is based on a historical volatility of
the Zealand share price calculated as the vesting period of 3 years plus 50% of the exercise period of 7
years i.e., 6.5 years (2023: 6.5 years).
The fair value of the warrants granted in 2024 and 2023 was determined using the Black-Scholes model
using the following inputs:
Grant year
2024
2023
Inputs in determining fair value of warrants:
Life of warrant
10 years
10 years
Weighted average exercise price/share price (DKK)
598.0
219.4
Volatility (%)
46.40
43.0 to 50.3
Risk-free interest rate (%)
2.46
2.68 to 2.89
Exercise period to-from
Apr '27 to
Apr '34
Apr '26 to
Oct '33
The weighted average fair value of warrants granted in 2024 is DKK 293.0 (2023: DKK 114.7).
Warrant programs
A Warrant grants the beneficiary the option to purchase a new share at a fixed price upon vesting. The
only vesting condition is time (service condition).
Incentive programs with outstanding warrants at the end of 2024 and 2023, respectively, have been
offered under different warrant programs. The number of warrants granted in 2024 consists of 146,260
warrants granted on April 19, 2024 (2023: 295,837).
The warrants granted in 2024 are valued at DKK 42.9 million (2023: DKK 33.9 million) using the Black-
Scholes model.
Warrants have either cliff vesting after 3 years or graded vesting over 3 years.
Zealand Pharma
Annual Report 2024
161
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.9 Share-based instruments (continued)
Movement table of warrants granted:
No. of warrants
2024
Weighted
average
exercise
price (DKK)
Warrants outstanding at January 1
1,334,658
141.6
Granted during the period
146,260
598.0
Forfeited during the period
-29,475
156.0
Exercised during the period
-161,249
190.6
Expired during the period
-
-
No. of warrants outstanding at December 31
1,290,194
186.88
Exercisable at the end of the period
251,734
141.9
Exercisable within 1 year
611,127
93.2
Exercisable within 1-2 years
282,932
219.4
Exercisable within 2-3 years
144,401
598.0
Warrants outstanding at the end of the period:
Range of exercise prices (DKK)
90.7-598.0
Weighted-average remaining contractual life
6.8
Number held by Executive Management
160,140
No. of warrants
2023
Weighted
average
exercise
price (DKK)
Warrants outstanding at January 1
1,549,430
124.7
Granted during the period
295,837
219.4
Forfeited during the period
-33,884
124.7
Exercised during the period
-470,106
136.0
Expired during the period
-6,619
155.8
No. of warrants outstanding at December 31
1,334,658
141.6
Exercisable at the end of the period
333,302
176.8
Exercisable within 1 year
81,277
97.2
Exercisable within 1-2 years
631,110
93.1
Exercisable within 2-3 years
288,969
219.4
Warrants outstanding at the end of the period:
Range of exercise prices (DKK)
90.7-300.4
Weighted-average remaining contractual life
7.0
Number held by Executive Management
203,101
The weighted average share price at the date of exercise for warrants exercised in 2024 is DKK 702.2
(2023: DKK 252.2).
The Board of Directors has not been granted warrants. Refer to note 6.1 Remuneration of the Board of
Directors and Executive Management for additional information.
Zealand Pharma
Annual Report 2024
162
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
4.9 Share-based instruments (continued)
PSU programs
PSUs grant the beneficiary the right to receive one already existing share upon vesting. Vesting conditions
for PSUs consist of both a service condition (time) and a performance condition. The performance condi-
tion can be either market based (cliff vesting) or operational based (graded vesting). The PSUs have either
cliff vesting after 3 years or graded vesting over 3 years.
Operational based PSUs are dependent on pre-determined performance criteria (non-market perfor-
mance conditions) set out to pursue the overall strategic objectives for the Company.
The number of performance share units granted in 2024 consists of 52,777 shares granted on April 19,
2024 and 4,102 granted on September 1, 2024, totalling 56,879 PSUs (2023: 67,576). The value per share
unit granted is determined based on the Company's closing share price on Nasdaq Copenhagen A/S on
the day of the grant.
The PSUs granted in 2024 are valued at DKK 35.2 million at grant (2023: DKK 14.7 million) based on a
share price of DKK 598.0 to 886.5 (2023: DKK 218.0). The weighted average fair value of PSUs granted
in 2024 is DKK 618.9 (2023: DKK 218.0). Dividends are not expected and thus not incorporated into the
measurement of fair value.
Movement table of PSU granted shares:
No. of PSUs
DKK thousand
2024
2023
No. of share units:
At January 1
359,827
357,801
Adjustments due to performance targets
17,747
-
Granted during the year
56,879
67,576
Vested during the year
-118,791
-65,550
Forfeited during the year
-27,775
-
At December 31
287,887
359,827
The adjustment made in 2024 of 17,747 units was due to reaching a performance target set out in the
2021 market based PSU grant.
RSU programs
RSUs grants the beneficiary the right to receive one of the Company’s already issued shares upon vesting.
There are no vesting conditions except time (service condition). The RSUs have either cliff vesting after 3
years or graded vesting over 3 years.
The number of restricted share units granted in 2024 consists of 80,345 shares granted on April 19, 2024
and 4,102 granted on September 1, 2024, totalling 84,447 RSUs (2023: 126,747). The value per share unit
granted is determined based on the Company's closing share price on Nasdaq Copenhagen A/S on the
day of the grant. The RSUs granted in 2024 are valued at DKK 51.7 million (2023: DKK 27.6 million) and are
granted at a share price of DKK 598.0 to 886.5 (2023: DKK 218.0). The weighted average fair value of RSUs
granted in 2024 is DKK 612.0 (2023: DKK 218.0). Dividends are not expected and thus not incorporated
into the measurement of fair value.
Movement table of RSU granted shares:
No. of RSUs
DKK thousand
2024
2023
No. of share units:
At January 1
275,947
283,272
Granted during the year
84,447
126,747
Vested during the year
-180,513
-91,307
Forfeited during the year
-6,192
-42,765
At December 31
173,689
275,947
Sale Instruction Scheme
In 2024, Zealand has decided to establish a Sale Instruction Scheme for its Corporate Management. The
Scheme allows the individual member of the management to give a sales instruction for future sales at a time
where the individual is not in possession of inside information. The Scheme is only to be used by the Zealand
management to sell shares to pay their taxes or the cost of exercising the incentive schemes. Zealand has
assisted the management in establishing the Scheme, however, it is at the individual management member's
own risk and liability to use the Scheme and Zealand cannot be held accountable for any liability. The
scheme was not used in 2024.
Zealand Pharma
Annual Report 2024
163
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
5.0
Tax
Zealand Pharma's Tax Policy is reviewed
annually and approved by the Board of
Directors. Please refer to our tax policy on
our website:
https://www.zealandpharma.
com/media/po0nx3b5/tax-policy-zealand-
pharma-2024.pdf.
164
5.1 Corporate tax
5.1 Corporate tax
Accounting policies
Income tax on results for the year, which comprises current tax and changes in deferred tax, is recog-
nized in the income statement, except to the extent that the tax is attributable to items which directly
relate to shareholders' equity or other comprehensive income.
Current tax liabilities and current tax receivables are measure at the amounts expected to be paid to or
recovered from the tax authorities.
Deferred tax is accounted for under the liability method which requires recognition of deferred tax on all
temporary differences between the carrying amount of assets and liabilities and the tax base of such
assets and liabilities. This includes the tax value of tax losses carried forward.
Deferred tax is calculated in accordance with the tax regulations in the local countries and the tax rates
expected to be in force at the time the deferred tax is utilized. Changes in deferred tax from changes in
tax rates is recognized in the income statement.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will
be available against which the differences can be utilized.
Management's judgements and estimates
Zealand recognizes deferred tax assets, including the tax base of tax losses carried forward, if
Management assesses that these tax assets can be offset against positive taxable income within a fore-
seeable future. This judgement is made on an ongoing basis and is based on numerous factors, including
actual results, budgets, and business plans for the coming years.
The creation and development of therapeutic products within the biotechnology and pharmaceutical
industry are subject to considerable risks and uncertainties. Zealand's future taxable income will be
driven by future events that are highly susceptible to factors outside of the groups control including
outcomes of clinical trials, regulatory approvals, and other matters.
Due to the uncertainties described, Management has concluded that no deferred tax assets should be
recognized on December 31, 2024 (none recognized in 2023), except for the US entity, which is expected
to have profitable taxable income due to the Group’s transfer pricing setup.
Zealand Pharma
Annual Report 2024
164
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
5.1 Corporate tax (continued)
DKK thousand
2024
2023
Net result for the year before tax
-1,083,445
-708,865
Corporate tax rate in Denmark
22.0%
22.0%
Expected tax benefit
-238,358
-155,950
Adjustment for foreign tax rates
-30
-2,618
Adjustment for non-deductible expenses
30,360
-6,512
Adjustment for warrants
5,322
-1,690
Adjustment for R&D extra deduction
-24,330
-21,768
Adjustment to prior year
3,625
-28,409
Change in tax assets (not recognized)
218,794
211,821
Total income tax expense/(benefit)
-4,617
-5,126
Zealand Pharma pays corporate income tax in jurisdictions where the operations are profitable.
Corporate income tax is currently only paid in the United States. We are currently in a loss-making posi-
tion in Denmark with an accumulated tax loss carryforward shown in the table below, which can be offset
in future taxable income.
Zealand Pharma accepts government sponsored tax credits and incentives with strict adherence to
the rules and in line with the economic substance of the Company’s business activities. We only accept
credits and incentives which are commonly available. Under Danish tax law, Zealand Pharma is eligible
to receive a DKK 5.5 million cash refund in 2024 (2023: DKK 5.5 million) on qualifying research and
development expenses, which at the same time equally reduces the tax loss carried forward. Zealand
is also eligible for the super deduction in Denmark on certain research and development expenditures.
Unrecognized deferred tax assets relate to tax jurisdictions in Denmark and US.
DKK thousand
2024
2023
Specification of deferred tax assets:
Tax losses carried forward (available indefinitely)
4,936,986
3,898,988
Research and development expenses
1,283,495
1,031,011
Intangible assets
76,129
76,129
Non-current assets
156,776
100,444
Liabilities
10,510
21,981
Other
543,283
412,116
Total temporary differences
7,007,179
5,540,669
Calculated potential deferred tax asset at local tax rate
1,540,864
1,219,805
Deferred tax asset not expected to be utilized
-1,539,879
-1,218,880
Recognized deferred tax asset
985
925
Adjustment for foreign tax rates
Adjustment relates to difference in the corporate tax rates between Denmark and United States.
Adjustment for non-deductible expenses
Adjustment mainly relates to interest deduction limitation, value adjustment of tax-exempt portfolio
shares in Beta Bionics Inc. and legislation limiting deduction for high salaries.
Adjustment for warrants
Adjustment relates to timing difference between deduction of warrants in the accounts and the deduction
for tax purposes, along with differences in accounting and tax values.
In accordance with IFRS 2, the fair value of warrants at grant date is recognized as an expense in the
income statement over the vesting period for accounting purposes. For tax purposes, a deduction is
claimed at the time the warrants, which fulfill certain conditions, are exercised. The deductible amount is
equal to the difference in fair value of the warrants and the exercise price for taxable warrants.
Zealand Pharma
Annual Report 2024
165
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
5.1 Corporate tax (continued)
The adjustment relates to Zealand Pharma's warrant incentive schemes and represents the deductible
amount along with an adjustment of the expected future tax deduction on incentive schemes. Deductions
are calculated based on the circumstances for the individual scheme and the recipient. Zealand Pharma
also provides, included in this adjustment, incentive schemes which are non-deductible for tax purposes.
Adjustment for R&D extra deduction
Adjustment relates to an 8% extra deduction taken on qualifying research and development expenses in
accordance with the government sponsored tax incentive.
Tax assets not recognized
In accordance with the Group’s accounting policies, the value of tax assets originating from Denmark is
not recognized, due to uncertainty regarding when and if they will be realized as a future tax advantage
within a foreseeable future.
Tax assets originating from Zealand Pharma U.S., Inc. have been recognized with an amount of DKK 1.0
million (2023: DKK 0.9 million), which is expected to be realized as a future tax advantage within a foresee-
able future.
Total tax losses carried forward for the Group amount to DKK 4,937 million (2023: DKK 3,899 million).
PFIC disclaimer
We may be a passive foreign investment company, or “PFIC,” which could result in U.S. federal income tax
consequences to U.S. investors.
Zealand Pharma
Annual Report 2024
166
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.0
Other
disclosures
167
6.1
Remuneration of the Board of Directors
and Executive Management
168
6.2
Fees to auditors appointed at the annual
general meeting
168
6.3
Contingent assets and liabilities
168
6.4
Commitments
169
6.5
Related parties
169
6.6
Cash flow adjustments
170
6.7
Collaborations and technology licenses
172
6.8
Subsequent events
6.1 Remuneration of the Board of Directors and Executive Management
2024
2023
DKK thousand
Base
board fees
Share-based
compensation
Total
fees
Base
board fees
Share-based
compensation
Total
fees
Total Board of Directors
1,100
9,361
10,461
1,100
4,891
5,991
The disclosed remuneration for board members excludes minor mandatory social security costs paid by the company.It also excludes reimbursed expenses incurred in connec-
tion with board meetings, such as travel and accommodation.
DKK thousand
Base
salary
Bonus
Pension
contribution
Other
short-term
benefits
Share-based
compensation
Severance
payments
Total
2024
Executive Management
Adam Sinding Steensberg
9,000
12,150
1,800
276
19,038
-
42,264
Henriette Wennicke
4,500
4,500
900
311
6,628
-
16,839
Total
13,500
16,650
2,700
587
25,666
-
59,103
Other Corporate Management1
11,746
11,869
1,404
1,101
15,419
3,347
44,886
Total
25,246
28,519
4,104
1,688
41,085
3,347
103,989
2023
Executive Management
Adam Sinding Steensberg
5,750
4,744
1,150
243
12,950
-
24,837
Henriette Wennicke
2,621
1,441
524
267
4,387
-
9,240
Total
8,371
6,185
1,674
510
17,337
-
34,077
Other Corporate Management1
9,696
5,300
1,016
820
15,467
-
32,299
Total
18,067
11,485
2,690
1,330
32,804
-
66,376
1 Other Corporate Management in 2024 comprised five members (2023: four).
Zealand Pharma
Annual Report 2024
167
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.2 Fees to auditors appointed at the annual general meeting
DKK thousand
2024
2023
Audit fee
2,350
2,590
Other assurance engagements
362
-
Tax advisory service
1,379
-
Other services
702
940
Total fees
4,793
3,530
At the Annual General Meeting on March 20, 2024, PricewaterhouseCoopers Statsautoriseret Revisions
partnerselskab (PwC) was elected as Zealand's new auditor for both financial and upcoming sustainability
reporting purposes as proposed by the Board of Directors in accordance with the recommendation of the
Audit Committee. In 2024 services provided to the Group by PwC consisted of audit of the annual report,
compliance review of Q1 and Q3 interim financial statements, half-year review of Q2 interim financial
statements, tax advisory services, accounting advisory services and other assistance.
In 2023 EY Godkendt Revisionspartnerselskab provided audit of the annual report, quarterly reviews,
other audit-related services on various statements for public authorities, and other accounting advisory
services.
6.3 Contingent assets and liabilities
Contingent assets and liabilities
Zealand is entitled to potential milestone payments and royalties on successful commercialization of
products developed under license and collaboration agreements with partners. Since the size and timing
of such payments are uncertain until the milestones are reached or sales are generated, future payments
under these agreements qualify as contingent assets. However, it is impossible to estimate the amount of
variable consideration for these contingent assets, and as such, no assets have been recognized.
As part of the license and collaboration agreements that Zealand has entered, once a product is devel-
oped and commercialized, Zealand may be required to make milestone and royalty payments. It is not
possible to measure the value of such future payments, but Zealand expects to generate future income
from such products which will exceed any milestone and royalty payments due, and as such, no liabilities
have been recognized.
Reference is made to note 6.7 Collaborations and technology licenses for descriptions of Zealand’s
collaboration and license agreements.
6.4 Commitments
Guarantees and collaterals
Under the revolving credit facility (RCF) in Danske Bank, Zealand was required to have a minimum collat-
eral value of 120% of the loan commitment (DKK 420 million) held in the designated custody accounts
under management by Danske Asset Management and Zealand’s designated cash accounts attached
to the custody accounts. Zealand should also comply with a covenant on fulfilling certain information
requirements. The pledges were lifted in April 2024, and in July 2024 the RCF was terminated following
the equity offering in June 2024 resulting in a cash position of DKK 9.7 billion, refer to note 4.4 Cash and
cash equivalents for further information.
The EIB loan contains a negative pledge clause preventing Zealand Pharma A/S or any of its subsidiaries
from creating or permitting to subsist any new security over any of its assets.
Other purchase obligations
As of December 31, 2024, total contractual obligations related to agreements for development projects,
including CROs, amounted to DKK 1,410.0 million of which DKK 670.9 million relates to 2025 and DKK
739.1 million to the years 2026 up to and including 2029 (2023: DKK 304.4 million).
6.3 Contingent assets and liabilities (continued)
Zealand Pharma
Annual Report 2024
168
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.5 Related parties
Zealand has no related parties with controlling interest. Zealand’s other related parties comprise the
Company’s Board of Directors and Executive Management. Aside from the remuneration and other trans-
actions described in note 6.1 Remuneration of the Board of Directors and Executive Management, there
were no other material related party transactions during 2024 and 2023.
Executive Management
During 2024 a total number of 42,961 warrants were exercised at a strike price of DKK 138.6 leading to a
net proceed to Zealand Pharma of DKK 5,954,395.
The total number of warrants outstanding held by Executive Management at the end of the period is 160,140.
The total number of performance share units granted to members of Executive Management was 33,634 in
2024. A total number of 61,883 PSUs vested during 2024, and 61,883 shares have thus been released.
The total number of PSUs outstanding held by Executive Management at the end of the period is 180,597.
The total number of restricted share units granted to members of Executive Management was 33,634 in
2024. A total number of 16,665 RSUs vested during 2024, and 16,665 shares have thus been released.
The total number of RSUs outstanding held by Executive Management at the end of the period is 59,241.
Board of Directors
The total number of restricted share units granted to members of the Board of Directors was 20,497 in
2024. A total number of 21,498 RSUs vested during 2024, and 21,498 shares have thus been released.
The total number of RSUs outstanding held by members of the Board of Directors at the end of the period
is 39,499.
6.6 Cash flow adjustments
DKK thousand
2024
2023
Depreciation, amortization and impairment losses
25,847
25,086
Reversal of inventory write-down
-
-15,980
Share-based compensation expenses
87,032
61,426
Financial income
-240,264
-54,115
Financial expenses
51,501
190,741
Corporate tax
-4,617
-5,125
Adjustments for non-cash items in total
-80,501
202,033
DKK thousand
2024
2023
Changes in accounts receivable
-48,961
-6,756
Changes in prepaid expenses
-71,426
28,534
Changes in other receivables
45,508
-11,849
Changes in inventory
-2,762
9,339
Changes in accounts payable
89,915
39,837
Changes in other liabilities
110,105
14,218
Changes in rebate and discount liabilities
-
-2,162
Changes in other liabilities and provisions
-
-19,058
Changes in working capital in total
122,379
52,103
Zealand Pharma
Annual Report 2024
169
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.7 Collaborations and technology licenses
Collaboration and license agreements
Zealand Pharma enters into collaborations with biotechnology and pharmaceutical companies to
advance the development and commercialization of our product candidates and to supplement our
internal pipeline. Zealand Pharma seeks collaborations that will allow Zealand Pharma to retain signif-
icant future participation in product sales through either profit-sharing or royalties paid on net sales.
Below is an overview of Zealand Pharma's collaboration and license agreements that have had a signifi-
cant impact or are expected in the near term to have a significant impact on financial results. With refer-
ence to note 6.3 Contingent assets and liabilities, each agreement is marked with CA (contingent asset)
and CL (contingent liability) if applicable.
Complement C3 (collaboration with Alexion, AstraZeneca Rare Disease) (CA)
Zealand Pharma and Alexion ended their collaboration on the discovery and development of novel
peptide therapies for complement-mediated diseases. Under the original terms of the agreement entered
in March 2019, Alexion and Zealand Pharma entered into an exclusive collaboration for the discovery and
development of subcutaneously delivered peptide therapies directed to up to four complement pathway
targets. Zealand Pharma received compensation on a time and material basis for certain research and
development services delivered under the contract.
In October 2024 a termination agreement with Alexion was signed. Zealand Pharma will receive an
exclusive, royalty-free, worldwide, irrevocable license to use (incl. research, develop, commercialize)
the know how created by Alexion. The lead program, ZP10068, is an investigational long-acting inhibitor
of Complement C3 which has the potential to treat a broad range of complement mediated diseases.
Zealand Pharma is currently evaluating the options for advancing the ZP10068 program. Any future regu-
latory, clinical, and development efforts will be led and conducted by Zealand Pharma.
Beta Bionics (Dasiglucagon for bi-hormonal artificial pancreas systems) (CA)
Dasiglucagon was in clinical development for use in investigational bi-hormonal artificial pancreas (BHAP)
systems containing both insulin and dasiglucagon.
In 2016, Zealand Pharma entered into collaboration with Beta Bionics, Inc., a medical technology company
leveraging lifelong, machine-learning, artificial intelligence to develop and commercialize the world’s
first autonomous bionic pancreas. The partnership aimed to combine product rights from each party to
advance a new dual-hormonal artificial pancreas system. The intent of such a system was to offer people
with diabetes on insulin therapy more efficacious, safer, and easier blood sugar control for better long-
term disease management and outcomes.
In October 2024 the partnership with Beta Bionics was concluded. Under the termination agreement any
rights and licenses, permissions and sub-licenses granted in the original agreement shall terminate. All
rights, title and interest in and to any and all intellectual property rights created as part of the perfor-
mance of the co-development activities (1) shall belong to Zealand Pharma if they are necessary or useful
for research or development of ZP4207 or its manufacture, use or sale, (2) shall belong to Beta Bionics
if they are necessary or useful for research or development of the iLet or its manufacture, use or sale
including all improvements and modifications to the iLet.
As a part of the collaboration Zealand Pharma has made an investment in Beta Bionics as described
in note 3.4 Other investments. The stock purchase agreements and associated agreements covering
Zealand Pharma's equity investments in Beta Bionics are unaffected by the termination agreement. In
January 2025 all shares in Beta Bionics have been sold, refer to note 6.8 Subsequent events.
Boehringer Ingelheim (Obesity/survodutide) (CA)
In June 2011, Zealand Pharma entered into a license, research, and development collaboration agreement
with Boehringer Ingelheim International GmbH (BI) to advance novel dual acting glucagon/GLP-1 peptide
receptor agonists for the treatment of patients with type 2 diabetes and obesity. As part of the agreement,
Boehringer obtained global development and commercialization rights to the lead drug candidate, survodu-
tide. Boehringer funds all research, development, and commercialization activities under the agreement.
As of December 31, 2024, Zealand is eligible to receive license and milestone payments of up to EUR 315.0
million, related to the achievement of pre-specified development, regulatory and commercial milestones for
the lead product. Zealand Pharma is also eligible to receive tiered royalties ranging from high single digit to
low double digit percentages on global sales by Boehringer of all products stemming from this collaboration.
In November 2023, Boehringer initiated the Phase 3 program with survodutide in patients living with obesity
or overweight (SYNCHRONIZE™) that consists of three global clinical trials, which triggered a EUR 30 million
milestone payment. No milestones were triggered in 2024.
DEKA Research & Development Corp. (CHI/dasiglucagon) (CL)
In November 2021, Zealand Pharma announced a collaboration agreement with DEKA to develop a
continuous infusion pump, for which Zealand Pharma receives a worldwide, exclusive license, to be used
in combination with dasiglucagon for treatment of CHI.
Zealand Pharma
Annual Report 2024
170
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.7 Collaborations and technology licenses (continued)
DEKA is responsible for pump development and pump manufacturing activities. Zealand Pharma is
responsible for clinical development around the drug-device combination and commercialization in all
territories.
As consideration for a global license to use the infusion pump for treatment of CHI, DEKA is eligible to
receive a low to high single digit royalty rate of the global net sales of the combination product.
Encycle Therapeutics (CL)
In October 2019, Zealand Pharma announced the acquisition of Encycle Therapeutics through a busi-
ness combination to obtain a pre-clinical asset that complements Zealand Pharma’s focus on developing
next-generation peptide therapeutics for gastrointestinal diseases. The assets were to be developed as
an orally delivered peptide drug to target integrin alpha-4-beta-7, which is involved in the pathogenesis of
inflammatory bowel disease (IBD).
In February 2025, after the balance sheet date, Zealand Pharma sent a notice of termination to the sellers
of Encycle Therapeutics, informing them of Zealand Pharma's decision to discontinue the project. Zealand
Pharma also expressed its intention to reassign all rights, title, and interest in the asset back to the sellers
in due course. The asset was impaired and disposed of in Zealand Pharma’s 2022 financial year, as
reflected in the annual reports for 2022 and 2023.
MannKind Corporation (V-GO) (CA)
In May 2022, Zealand Pharma announced an Asset Purchase Agreement with MannKind Corporation to
sell the V-GO Insulin Delivery Device. V-GO is a once-daily, wearable, insulin delivery device that helps
provide blood sugar control for everyday lifestyles. Designed to be patient-friendly, V-GO is worn like a
patch and eliminates the need for taking multiple daily shots.
As of December 31, 2024, Zealand Pharma is eligible to receive up to USD 10.0 million in sales-based
milestones.
Novo Nordisk (Zegalogue®/dasiglucagon (CA)
In September 2022, Zealand Pharma announced a global license and development agreement with Novo
Nordisk A/S to commercialize Zegalogue® (dasiglucagon) for injection. Zegalogue® is approved by the U.S.
Food and Drug Administration (FDA) for the treatment of severe hypoglycemia in pediatric and adult patients
with diabetes aged 6 and above. Under the agreement Novo Nordisk is responsible for the global commer-
cialization of Zegalogue® while Zealand Pharma is responsible for certain planned regulatory, development
and manufacturing activities to support further development and approval outside of the U.S. for which
Zealand Pharma is eligible to receive a mix of development milestones, and time and material compensation.
Zealand Pharma retained all non-licensed intellectual property rights to the Company’s other dasiglucagon
development programs.
As of December 31, 2024, Zealand Pharma is eligible to receive up to DKK 7.5 million in development mile-
stones and DKK 220.0 million in sales-based milestones as well as tiered royalties ranging from high single
digit to low double digit percentages on worldwide net sales by Novo Nordisk.
Zealand Pharma is also eligible for compensation on a time and material basis for certain product supply,
research and development services delivered under the contract.
On May 31, 2024, the Committee for Medicinal Products for Human Use (CHMP) recommended granting
a marketing authorization for Zegalogue® triggering DKK 15 (each of DKK 7.5 million) million in milestone
payments from Novo Nordisk. Zegalogue® received the marketing authorization valid throughout the EU in
July 2024.
Protagonist Therapeutics (Rusfertide) (CA)
In June 2012, Zealand Pharma and Protagonist entered into a collaboration to develop disulfide-rich
peptides. Protagonist has since taken over the full responsibility of the development.
As of December 31, 2024, Zealand Pharma is eligible to receive up to USD 60.0 million in regulatory and
commercial milestones, as well as a low single digit royalty rate on global net sales.
Sanofi/Royalty Pharma (Soliqua/Suliqua/Lyxumia/Adlyxin) (CA)
In September 2018, Zealand Pharma announced that all future royalties and all but up to USD 15.0 million of
future milestone payments relating to the Sanofi License Agreement were sold to Royalty Pharma.
In 2023, USD 10 million in milestone payments associated with lixisenatide were received from Sanofi. Out
of the USD 10 million from Sanofi, Zealand Pharma will pay USD 1.3 million in royalty expenses to Alkermes
in line with a termination agreement following the dissolution of a former joint venture with Elan Corporation
Zealand Pharma
Annual Report 2024
171
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Consolidated financial statements
6.7 Collaborations and technology licenses (continued)
(now Alkermes), stipulating that Alkermes is entitled to 13% of payments received by Zealand in respect to
lixisenatide under the Sanofi License Agreement. As of December 31, 2023 and onwards, there are no other
outstanding milestone payments associated with the license agreement with Sanofi.
6.8 Subsequent events
Investment in Beta Bionics Inc.
In January 2025, Zealand sold its shares in Beta Bionics Inc. following the signed mutual termination
agreement from October 2024. The agreed selling price was DKK 23.6 million and the sale was completed
in January 2025.
Zealand Pharma
Annual Report 2024
172
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
174
Statement of loss
175 Statement of financial position
176
Statement of cash flows
176
Statement of changes in equity
177 Notes
Financial
statements
of the parent
company
Zealand Pharma
Annual Report 2024
173
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Financial statements of the parent company
Statement of loss for the years ended December 31, 2024 and 2023
Statement of comprehensive loss for the years ended December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Revenue
68,100
278,131
Royalty expenses
16
-6,783
-7,447
Cost of goods sold
-7,874
-10,036
Gross profit
53,443
260,648
Research and development expenses
2
-923,302
-690,260
Sales and marketing expenses
3
-67,786
-29,886
General and administrative expenses
4
-339,088
-184,058
Other operating income
-
15,979
Net operating expenses
-1,330,176
-888,225
Operating result
-1,276,733
-627,577
Dividend from subsidiaries
86,600
-
Financial income
6
237,330
48,779
Financial expenses
6
-86,240
-330,569
Result before tax
-1,039,043
-909,367
Corporate tax
7
5,500
5,592
Net result for the year
-1,033,543
-903,775
DKK thousand
Note
2024
2023
Net result for the year
-1,033,543
-903,775
Other comprehensive income/(loss)
-
-
Total comprehensive result for the year
-1,033,543
-903,775
Zealand Pharma
Annual Report 2024
174
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements of the parent company
Statement of financial position as of December 31, 2024 and 2023
DKK thousand
Note
Group note
2024
2023
Assets
Intangible assets
3.1
12,620
12,255
Property, plant and equipment
3.1
46,479
47,047
Right-of-use assets
8
78,768
89,772
Other investments
3.4
-
14,004
Investments in subsidiaries
9
872
36,186
Trade receivables
10
-
6,886
Other receivables
11
8,900
8,900
Marketable securities
4.5
819,632
-
Other financial assets
3.6
-
7,375
Total non-current assets
967,271
222,425
Inventory
3.5
10,698
7,935
Trade receivables
10
254,443
153,901
Other receivables
11
76,167
24,348
Corporate tax receivable
7
5,500
11,000
Other Investments
3.4
23,626
-
Marketable securities
4.5
7,722,081
1,183,746
Cash and cash equivalents
4.4
423,054
302,157
Total current assets
8,515,569
1,683,087
Total assets
9,482,840
1,905,512
DKK thousand
Note
Group note
2024
2023
Share capital
4.8
71,024
58,751
Share premium
14,680,771
6,406,225
Accumulated losses
-6,145,937
-4,928,620
Total shareholders' equity
8,605,858
1,536,356
Trade payables
12
-
303
Borrowings
4.6
285,332
-
Derivative financial liabilities
4.6
109,665
-
Lease liabilities
8
74,029
83,977
Total non-current liabilities
469,026
84,280
Lease liabilities
8
11,797
12,024
Trade payables
12
270,774
136,033
Other payables
13
125,385
136,819
Total current liabilities
407,956
284,876
Total liabilities
876,982
369,156
Total shareholders' equity and liabilities
9,482,840
1,905,512
Zealand Pharma
Annual Report 2024
175
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements of the parent company
Statement of cash flows for the years ended December 31, 2024 and 2023
Statement of changes in shareholders' equity at December 31, 2024 and 2023
DKK thousand
Note
2024
2023
Net result for the year
-1,033,543
-903,775
Adjustment for other non-cash items
17
-56,577
336,963
Changes in working capital
18
145,098
-103,446
Financial income received
116,899
33,816
Financial expenses paid
-23,801
-8,675
Corporate taxes received
11,000
91
Cash flow used in operating activities
-840,924
-645,026
Proceeds from sale of marketable securites
4,137,897
665,336
Purchase of marketable securities
-11,457,664
-1,843,301
Purchase of intangible assets
-3,095
-12,508
Purchase of property, plant and equipment
-10,053
-11,241
Cash flow from/(used in) investing activities
-7,332,915
-1,201,714
Proceeds from borrowings
369,867
-
Lease installments
8
-12,060
-11,649
Proceeds from issuance of shares
8,492,670
1,500,000
Purchase of treasury shares
-351,834
-41,600
Proceeds from issuance of shares related to exercise of
share-based compensation
30,727
63,950
Costs related to issuance of shares
-236,579
-71,908
Cash flow from financing activities
8,292,791
1,438,793
New cash flow for the year
118,952
-407,947
Cash and cash equivalents at beginning of year
302,157
710,104
Exchange rate adjustments
1,945
-
Cash and cash equivalents at end of year
423,054
302,157
DKK thousand
Share
capital
Share
premium
Accumulated
losses
Total
Equity at January 1, 2024
58,751
6,406,225
-4,928,620
1,536,356
Net result for the year
-
-
-1,033,543
-1,033,543
Total comprehensive income
-
-
-1,033,543
-1,033,543
Transactions with owners
Purchase of treasury shares
-
-
-270,806
-270,805
Exercise of warrants
161
30,566
-
30,727
Share-based compensation expenses
-
-
87,032
87,032
Capital increases
12,112
8,480,559
-
8,492,671
Costs related to capital increases
-
-236,579
-
-236,579
Equity at December 31, 2024
71,024
14,680,771
-6,145,937
8,605,858
Equity at January 1, 2023
51,702
4,921,232
-4,005,383
967,551
Net result for the year
-
-
-903,775
-903,775
Total comprehensive income
-
-
-903,775
-903,775
Transactions with owners
Purchase of treasury shares
-
-
-81,045
-81,045
Net settlement of PSUs and RSUs
-
-
157
157
Exercise of warrants
470
63,480
-
63,950
Share-based compensation expenses
-
-
61,426
61,426
Capital increases
6,579
1,493,421
-
1,500,000
Costs related to capital increases
-
-71,908
-
-71,908
Equity at December 31, 2023
58,751
6,406,225
-4,928,620
1,536,356
Zealand Pharma
Annual Report 2024
176
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
178
1
Significant accounting policies, and
significant accounting estimates and
assessments
178
2
Research and development expenses
178
3
Sales and marketing expenses
179
4
General and administrative expenses
179
5
Information on staff and remuneration
181
6
Financial items
181
7
Corporate tax
182
8
Right-of-use assets and lease liabilities
183
9
Investments in subsidiaries
184
10 Trade receivables
184
11
Other receivables
184
12 Trade payables
184
13 Other payables
185
14 Fees to auditors appointed at the
annual general meeting
185
15 Contingent assets, liabilities and
other contractual obligations
185
16 Transactions with related parties
186
17 Adjustments for non-cash items
186
18 Changes in working capital
186
19 Significant events after the balance
sheet date
Notes
Zealand Pharma
Annual Report 2024
177
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
Significant accounting policies
Basis of preparation
The separate financial statement of the parent company has been prepared in accordance with IFRS
Accounting Standards as adopted by the EU (IFRS) and additional requirements under the Danish
Financial Statements Act (Class D). The accounting policies for the financial statements of the parent
company are unchanged from the previous financial year.
A number of new or amended standards became applicable for the current reporting period. The parent
company did not change its accounting policies as a result of the adoption of these standards. The
accounting policies are the same as for the consolidated financial statements with the supplementary
accounting policies for the parent described below. For a description of the accounting policies of the
group, please refer to section 1.0 Basis of preparation in the consolidated financial statements.
Notes have only been included in the Parent Financial Statement where amounts differ from the consoli-
dated financial statement.
Supplementary accounting policies for the parent company
Investments in subsidiaries
Please refer to note 9 Investments in subsidiaries.
1
Significant accounting policies, and significant accounting estimates and assessments
2
Research and development expenses
DKK thousand
2024
2023
Staff costs (note 5)
-313,786
-241,639
Amortization, depreciation, impairment losses on intangibles assets,
property, plant and equipment, and right-of-use assets
-18,382
-18,087
Other external research and development expenses
-591,134
-430,534
Total research and development expenses
-923,302
-690,260
3
Sales and marketing expenses
DKK thousand
2024
2023
Staff costs (note 5)
-14,776
-10,427
Amortization, depreciation, impairment losses on intangibles assets,
property, plant and equipment, and right-of-use assets
-457
-
Other external sales and marketing expenses
-52,553
-19,459
Total sales and marketing expenses
-67,786
-29,886
Zealand Pharma
Annual Report 2024
178
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
5
Information on staff and remuneration
DKK thousand
2024
2023
Total staff costs can be specified as follows:
Wages and salaries
-343,925
-247,253
Share-based compensation
-75,477
-55,130
Pension schemes (defined contribution plans)
-27,775
-20,945
Other payroll and staff-related costs
-23,698
-22,996
Total staff costs
-470,875
-346,324
The amount is charged as:
Research and development expenses
-313,786
-241,639
Sales and marketing expenses
-14,776
-10,427
General and administrative expenses
-142,313
-94,258
Total staff costs
-470,875
-346,324
Average number of employees
280
224
For remuneration to the Board of Directors please refer to note 6.1 Remuneration of the Board of
Directors and Executive Management in the consolidated financial statements and for additional informa-
tion regarding staff costs refer to note 2.8 Staff costs.
4
General and administrative expenses
DKK thousand
2024
2023
Staff costs (note 5)
-142,313
-94,258
Amortization, depreciation, impairment losses on intangibles assets,
property, plant and equipment, and right-of-use assets
-5,495
-3,601
Other external sales and marketing expenses
-191,280
-86,199
Total general and administrative expenses
-339,088
-184,058
Zealand Pharma
Annual Report 2024
179
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
5
Information on staff and remuneration (continued)
DKK thousand
Base salary
Bonus
Pension
contribution
Other
short-term
benefits
Share-based
compensation
Severance
payments
Total
2024
Remuneration to the Executive Management
Adam Sinding Steensberg
9,000
12,150
1,800
276
19,038
-
42,264
Henriette Wennicke
4,500
4,500
900
311
6,628
-
16,839
Total
13,500
16,650
2,700
587
25,666
-
59,103
Total Other Corporate Management1
9,272
11,869
1,335
855
8,851
3,347
35,529
Total
22,772
28,519
4,035
1,442
34,517
3,347
94,632
2023
Remuneration to the Executive Management
Adam Sinding Steensberg
5,750
4,744
1,150
243
12,950
-
24,837
Henriette Wennicke
2,621
1,441
524
267
4,387
-
9,240
Total
8,371
6,185
1,674
510
17,337
-
34,077
Total Other Corporate Management1
7,728
4,910
948
693
11,086
-
25,365
Total
16,099
11,095
2,622
1,203
28,423
-
59,442
1
Other Corporate Management in 2024 comprised five members (2023: four).
Zealand Pharma
Annual Report 2024
180
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
6
Financial items
DKK thousand
2024
2023
Interest income
167,529
31,778
Interest expenses from financial liabilities measured at amortized costs
-31,710
-6,050
Interest expenses from lease liabilities
-1,904
-2,075
Interest income from group companies
-
9,701
Impairment of investments in subsidiaries
-35,396
-26,042
Impairment of intercompany receivables
-
-271,897
Fair value adjustment of marketable securities
50,089
7,300
Fair value adjustment of other investments
2,247
-16,466
Fair value adjustment warrants, EIB (Tranche A)
-10,602
-
Exchange rate adjustments
17,465
-5,127
Other financial expenses
-6,628
-2,912
Financial items in total
151,090
-281,790
Presentation in income statement:
Financial income
237,330
48,779
Financial expenses
-86,240
-330,569
In 2024, an impairment of DKK 35.4 million from the investment in ZP SPV 3 K/S was triggered from an
impairment of the intellectual property rights for Alexion, refer to note 9 Investments in subsidiaries for
further information.
In 2023 impairment of investments in subsidiaries of DKK 26.0 million and impairment of intercompany
receivables of DKK 271.9 million related to the Oberland Capital loan which Zealand Pharma A/S settled
in May 2023 on behalf of Zealand Pharma U.S., Inc., refer to description in note 9 Investments in subsidi-
aries. Please also refer to note 4.7 Financial items in the consolidated financial statements for additional
information regarding financial items.
7
Corporate tax
DKK thousand
2024
2023
Net result for the year before tax
-1,039,043
-909,367
Corporate tax rate in Denmark
22.0%
22.0%
Expected tax benefit
-228,590
-200,061
Adjustment for non-deductible expenses
34,050
48,447
Adjustment for non-taxable income
-19,052
-
Adjustment for warrants
5,322
943
Adjustment for R&D extra deduction
-24,330
-21,768
Adjustment to prior years
-1,264
-30,673
Change in tax assets (not recognized)
228,364
197,520
Total income tax expense/(benefit)
-5,500
-5,592
Tax on equity
Warrants shareprice development
-86,927
-32,566
Change in tax assets (not recognized)
86,927
32,566
Total income tax expense (income)
-
-
Specification of unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely)
4,927,489
3,862,273
Research and development expenses
1,283,495
1,031,011
Licenses, rights and patents
76,129
76,129
Non-current assets
125,436
109,930
Liabilities
10,796
9,855
Other
492,629
393,640
Total temporary differences
6,915,974
5,482,838
Please refer to note 5.0 Tax in the consolidated financial statements for additional information regarding
income tax.
Zealand Pharma
Annual Report 2024
181
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
8
Right-of-use assets and lease liabilities
Amounts recognized in the statement of financial position The statement of financial position shows the
following amounts relating to lease assets:
DKK thousand
Office
buildings
Other
fixtures and
fittings
As at January 1, 2024
87,851
1,921
Disposals
-
-21
Depreciation expense
-10,136
-847
As at December 31, 2024
77,715
1,053
As at January 1, 2023
95,990
1,581
Additions
1,860
1,344
Depreciation expense
-9,999
-1,004
As at December 31, 2023
87,851
1,921
Set out below are the carrying amounts of lease liabilities and the movements during the period:
DKK thousand
2024
2023
As at January 1
96,001
102,618
Additions
1,079
3,588
Disposals
-1,103
-393
Accretion of interest
1,904
2,075
Payments
-12,055
-11,887
As at December 31
85,826
96,001
Non-current
74,029
83,977
Current
11,797
12,024
The following amounts are recognized in the income statement:
Depreciation expense of right-of-use assets
-10,984
-11,002
Interest expense on lease liabilities
-1,904
-2,075
Total amount recognized in profit and loss
-12,888
-13,077
Cash flow
-12,060
-11,649
Total cash outflow from leases
-12,060
-11,649
Zealand Pharma
Annual Report 2024
182
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
9
Investments in subsidiaries
Accounting policies
Investments in subsidiaries are measured at cost in the parent company’s financial statements. Where
the recoverable amount of the investment is lower than cost, the investments are written down to recov-
erable amount. Impairment losses are recognized under financial items.
DKK thousand
2024
2023
Cost at January 1
60,317
62,228
Additions
81
-
Divestment
-
-1,911
Cost at December 31
60,398
60,317
Value adjustments at January 1
-24,131
-
Impairment
-35,395
-24,131
Value adjustments at December 31
-59,526
-24,131
Investments in subsidiaries at December 31
872
36,186
In October 2024, a termination agreement with Alexion was signed and the intellectual property rights
of the Alexion asset in ZP SPV 3 K/S has been written down to zero. A corresponding impairment of the
investment in ZP SPV 3 K/S was triggered and recognized under financial items, refer to note 6. The write-
down of the IP rights is based on the following input/assumptions:
ș Termination of Alexion partnership in October 2024
ș No decision has been taken whether Zealand will continue the project internally
ș Zealand does not have any cash forecast/business case, and as of December 31, 2024 Zealand is not
able to reliably estimate one to base an impairment test on.
In 2023, an impairment of DKK 24.1 million was recognized on the investment in Zealand Pharma U.S.
Inc. as a result of lost equity following the settlement of the Oberland Capital loan in May 2023, which
Zealand Pharma A/S settled on behalf of Zealand Pharma U.S., Inc. Refer also to note 6 Financial items.
DKK thousand
Domicile
Ownership
Voting
rights
Zealand Pharma A/S's subsidiaries:
ZP Holding SPV K/S
Denmark
100%
100%
ZP General Partner 1 ApS
Denmark
100%
100%
Zealand Pharma US, Inc.
United States
100%
100%
ZP SPV 3 K/S
Denmark
100%
100%
ZP General Partner 3 ApS
Denmark
100%
100%
ZP Holding SPV K/S's subsidiaries:
ZP SPV 1 K/S
Denmark
100%
100%
ZP General Partner 2 ApS
Denmark
100%
100%
Zealand Pharma US Inc. subsidiary
Zealand Pharma California US, LLC.
United States
100%
100%
Zealand Pharma
Annual Report 2024
183
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
10 Trade receivables
DKK thousand
2024
2023
Trade receivables
493
987
Intercompany receivables
61,462
57,509
Receivables related to license and collaboration agreements
86,670
68,793
Prepaid expenses
105,818
33,498
Total trade receivables
254,443
160,787
Non-current
-
6,886
Current
254,443
153,901
11 Other receivables
DKK thousand
2024
2023
Deposits
8,900
8,900
VAT receivables
4,170
9,728
Accrued interest
71,819
9,301
Other receivables
178
5,319
Total other receivables
85,067
33,248
Non-current
8,900
8,900
Current
76,167
24,348
12 Trade payables
DKK thousand
2024
2023
Trade payables
161,398
90,351
Intercompany payables
37,124
12,521
Accruals development projects
72,252
33,464
Total payables
270,774
136,336
Non-current
-
303
Current
270,774
136,033
13 Other payables
DKK thousand
2024
2023
Payable treasury shares
-
81,045
Accrued interest
669
-
Employee benefits
88,544
48,009
Other payables
36,172
7,765
Total other payables
125,385
136,819
Non-current
-
-
Current
125,385
136,819
Zealand Pharma
Annual Report 2024
184
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
14 Fees to auditors appointed at the annual general meeting
DKK thousand
2024
2023
Audit fee
2,230
2,475
Other assurance engagements
362
-
Tax advisory service
1,277
-
Other services
702
940
Total fees
4,571
3,415
15 Contingent assets, liabilities and other contractual obligations
Zealand Pharma A/S is part of a Danish joint taxation. Consequently, referring to the Danish Corporation
Tax Act regulations, Zealand Pharma A/S is liable for any income taxes, etc. for the jointly taxed compa-
nies and Zealand Pharma A/S is likewise liable for any obligations to withhold tax at source on interest,
royalties and returns for the jointly taxed companies.
Under the revolving credit facility (RCF) in Danske Bank, Zealand was required to have a minimum collat-
eral value of 120% of the loan commitment (DKK 420 million) held in the designated custody accounts
under management by Danske Asset Management and Zealand’s designated cash accounts attached
to the custody accounts. Zealand should also comply with a covenant on fulfilling certain information
requirements. The pledges were lifted in April 2024, and in July 2024 the RCF was terminated following
the equity offering in June 2024 resulting in a cash position of DKK 9.7 billion, refer to note 4.4 Cash and
cash equivalents for further information.
The EIB loan contains a negative pledge clause preventing Zealand Pharma A/S or any of its subsidiaries
from creating or permitting to subsist any new security over any of its assets.
Please refer to note 6.4 Commitments in the consolidated financial statements for information on
commitments.
Zealand Pharma A/S's related parties are the Board of Directors, Executive Management, and close
members of the family of these persons. Refer to note 6.1 Remuneration of the Board of Directors and
Executive Management in the consolidated financial statements. Refer to note 5 Information on staff
and remuneration in these parent company financial statements for remuneration of the Executive
Management.
The parent company had the following transactions with subsidiaries:
DKK thousand
2024
2023
Revenue
5,409
6,127
Research and development expenses
-34,362
-23,323
Sales and marketing expenses
-6,120
-5,615
General and administrative expenses
-36,061
-20,468
Financial items
-
9,701
Receivables
3,953
-113,422
Payables
24,603
11,096
Cash flows
34,755
-157,958
Total
-7,823
-293,862
Revenue from ZP SPV 3 K/S in parent financial statements
Revenue of DKK 5.4 million (2023: 6.1 million) from ZP SPV 3 K/S relates to IP rights for the Alexion
Pharmaceutical Inc. agreement transferred from Zealand Pharma A/S to ZP SPV 3 K/S in 2020.
ZP SPV 3 K/S reimburses ZP A/S for the R&D services carried out on behalf of ZP SPV 3 K/S. The revenue
is eliminated in the consolidated financial statements.
Revenue from research and development services rendered to ZP SPV 3 K/S
Revenue from research and development services are performed and satisfied over time given that
ZP SPV 3 K/S simultaneously receives and consumes the benefits provided by Zealand Pharma A/S.
Royalty expenses
Royalty expenses of DKK 6.8 million in 2024 (2023: 7.4 million) relate to license fees payable by Zealand
Pharma A/S to ZP SPV 3 K/S for use of the IP rights under the Alexion Pharmaceuticals Inc. agreement
which were internally transferred to ZP SPV 3 K/S in 2020.
16 Transactions with related parties
Zealand Pharma
Annual Report 2024
185
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Notes to the Financial statements of the parent company
17 Adjustments for non-cash items
DKK thousand
2024
2023
Depreciation, amortization and impairment losses
24,334
21,688
Reversal of inventory write-down
-
-15,980
Share-based compensation expenses
75,477
55,130
Financial income
-237,128
-52,417
Financial expenses
86,240
334,133
Corporate tax
-5,500
-5,591
Adjustments for non-cash items in total
-56,577
336,963
18 Changes in working capital
DKK thousand
2024
2023
Changes in accounts receivable
-50,692
-4,304
Changes in prepaid expenses
-72,317
20,583
Changes in other receivables
56,413
-13,594
Changes in inventory
-2,762
9,330
Changes in intercompany receivables
34,755
-157,958
Changes in accounts payable
71,327
40,832
Changes in other liabilities
108,374
20,723
Changes in other liabilities and provisions
-
-19,058
Changes in working capital in total
145,098
-103,446
19 Significant events after the balance sheet date
Please refer to note 6.8 Subsequent events in the consolidated financial statements.
Zealand Pharma
Annual Report 2024
186
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Alternative performance measures and key ratios for the Group (non-audited)
Free cash flow
Free cash flow is calculated as the sum of cash flows from operating activities less purchase of prop-
erty, plant, and equipment. A positive free cash flow shows that the Group is able to finance its activities
and that external financing or capital raises is thus not necessary for the Group’s operating activities.
Therefore, Executive Management believes that this non-IFRS liquidity measure provides useful informa-
tion to investors in addition to the most directly comparable IFRS financial measure “Net cash flow from
operating activities”. The table below shows a reconciliation of free cash flow for 2024 and 2023:
DKK thousand
2024
2023
Cash outflow from operating activities
-930,816
-425,668
Less purchase of property, plant and equipment
-10,053
-11,241
Free cash flow
-940,869
-436,909
Liquidity reserve
Zealand’s liquidity reserve, classified as a non-IFRS liquidity measure includes assets held in cash, cash
equivalents, marketable securities, and undrawn borrowing facilities. Management believes that this APM
can provide stakeholders with valuable information regarding Zealand's ability to meet short-term obliga-
tions, navigating uncertain economic conditions and adding information about potential capital require-
ments (runway).
Equity ratio
Equity ratio is calculated as equity at the balance sheet date divided by total assets at the balance sheet
date.
Market capitalization
Market capitalization is calculated as weighted outstanding shares at the balance sheet date times the
share price at the balance sheet date.
Equity per share
Equity per share is calculated as shareholders' equity divided by weighted average total number of
shares less weighted average total number of treasury shares.
Zealand Pharma
Annual Report 2024
187
Financial statements
Contents
The big picture
Our business
Sustainability
Corporate Governance
Statements by the Executive Management and the Board of Directors
Today, the Executive Management and the Board of Directors have
discussed and approved the Zealand Pharma A/S Annual Report for
the financial year January 1 - December 31, 2024.
The Consolidated Financial Statements and the Parent Company
Financial Statements have been prepared in accordance with IFRS
Accounting Standards as adopted by the EU and further require-
ments in the Danish Financial Statements Act. Management's
report has been prepared in accordance with the Danish Financial
Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent
Company Financial Statements give a true and fair view of the
financial position at 31 December 2024 of the Group and the Parent
Company and of the results of the Group and Parent Company oper-
ations and cash flows for 2024.
In our opinion, Management's report includes a fair review of the
development in the operations and financial circumstances of the
Group and the Parent Company, of the results for the year and of the
financial position of the Group and the Parent Company as well as a
description of the most significant risks and elements of uncertainty,
which the Group and the Parent Company are facing.
In our opinion, the annual report of Zealand Pharma A/S for the finan-
cial year 1 January to 31 December 2024 with the file name zealand-
pharma-2024-12-31-en.zip is prepared, in all material respects, in
compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the Annual
General Meeting.
Søborg, February 20, 2025
Executive Management
Adam Sinding Steensberg
President and
Chief Executive Officer
Henriette Wennicke
Executive Vice President and Chief
Financial Officer
Board of Directors
Alf Gunnar Martin Nicklasson
Chairman
Kirsten Aarup Drejer
Vice Chair
Jeffrey Berkowitz
Board member
Frederik Barfoed Beck
Board member
Employee elected
Bernadette Connaughton
Board member
Leonard Kruimer
Board member
Elaine Sullivan
Board member
Enrique Alfredo Conterno Martinelli
Board member
Anneline Nansen
Board member
Employee elected
Adam Krisko Nygaard
Board member
Employee elected
Ludovic Tranholm Otterbein
Board member
Employee elected
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
188
Independent auditor’s report
To the shareholders of Zealand Pharma A/S
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Consolidated Financial Statements and the Parent
Company Financial Statements give a true and fair view of the
Group’s and the Parent Company’s financial position at December
31, 2024 and of the results of the Group’s and the Parent Company’s
operations and cash flows for the financial year January 1 to
December 31, 2024 in accordance with IFRS Accounting Standards as
adopted by the EU and further requirements in the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s Long-form Report to the
Audit Committee and the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent Company
Financial Statements of Zealand Pharma A/S for the financial year
January 1 to December 31, 2024, pp 118 - 187 comprise statement
of loss and statement of comprehensive loss, statement of financial
position, statement of changes in shareholders’ equity, statement of
cash flows and notes, including material accounting policy informa-
tion for the Group as well as for the Parent Company. Collectively
referred to as the "Financial Statements".
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (ISAs) and the additional requirements applicable in
Denmark. Our responsibilities under those standards and require-
ments are further described in the Auditor’s responsibilities for the
audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in Denmark. We have also
fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit
services referred to in Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Appointment
We were first appointed auditors of Zealand Pharma A/S on March
20, 2024 for the financial year 2024. We have been appointed by
shareholder resolution for a total period of uninterrupted engage-
ment of one year.
Key audit matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the Financial Statements for
2024. These matters were addressed in the context of our audit of the
Financial Statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Statement on Management’s Review
Management is responsible for Management’s Report.
Our opinion on the Financial Statements does not cover
Management’s Report, and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Financial Statements, our respon-
sibility is to read Management’s Report and, in doing so, consider
whether Management’s Report is materially inconsistent with the
Financial Statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Report includes the
disclosures required by the Danish Financial Statements Act.
Based on the work we have performed, in our view, Management’s
Report is in accordance with the Consolidated Financial Statements
and the Parent Company Financial Statements and has been
prepared in accordance with the requirements of the Danish
Financial Statements Act. We did not identify any material misstate-
ment in Management’s Review.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated finan-
cial statements and parent company financial statements that give a
true and fair view in accordance with IFRS Accounting Standards as
adopted by the EU and further requirements in the Danish Financial
Statements Act, and for such internal control as Management deter-
mines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or
error.
In preparing the Financial Statements, Management is responsible for
assessing the Group’s and the Parent Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless
Management either intends to liquidate the Group or the Parent
Company or to cease operations, or has no realistic alternative but
to do so.
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
189
Key audit matter
How our audit addressed the key audit matter
Research and development expenses and accruals
Research and development expenses and accruals at Zealand
Pharma relate to clinical trial expenses, preclinical study fees,
manufacturing expenses for non-commercial products, and the
development of earlier-stage programs and technologies. This
includes expenses for Contract Research Organisations and
Contract Manufacturing Organisations providing research and
development related services.
The diverse nature of these activities, along with varied contract
terms, compensation arrangements, and impact from potential
scope changes requires significant estimates and judgments by
Management in recognising expenses and accruals for research
and development activities.
Management has established accrual models used to recognise
expenses for research and development activities over the periods
which services are provided to the Group and estimate clinical trial
accruals at the balance sheet date.
We focused on the research and development expenses and
accruals because of the significance and complexity associated
with management's estimates and judgment in recognising accruals
for research and development activities, including allocation of
contract costs to clinical development phases, determination of
clinical trial service periods, and the effect from changes to clinical
trial scope.
We considered the accounting for research and development
expenses and accruals a key audit matter. Refer to note 2.5 and 3.9
in the financial statements.
We assessed whether the Group’s accounting policies related to
research and development expenses and accruals comply with
IFRS Accounting Standards.
We performed risk assessment procedures to obtain an under-
standing of relevant controls, including Group controlling proce-
dures, IT systems, and business processes related to research
and development expenses and accruals. For these controls, we
assessed whether they were designed and implemented to effec-
tively address the risk of material misstatement. For selected
controls on which we planned to rely, we tested their operating
effectiveness.
We performed tests of details, including computer-assisted analyt-
ical procedures, over research and development expenses to
verify the completeness and cut-off of recorded expenses.
We evaluated and assessed Management’s methodology related to
research and development accrual models, including challenging
significant assumptions applied and testing key input data, such as
contract costs, patient enrollment data, and treatment timelines.
We assessed the completeness and accuracy of the disclosures
of research and development expenses and accruals against the
disclosure requirements in IFRS.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs
and the additional requirements applicable in Denmark will always
detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional require-
ments applicable in Denmark, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
ș Identify and assess the risks of material misstatement of the
Financial Statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control.
ș Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the effec-
tiveness of the Group’s and the Parent Company’s internal control.
ș Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by Management.
ș Conclude on the appropriateness of Management’s use of the
going concern basis of accounting and based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s and
the Parent Company’s ability to continue as a going concern. If we
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
190
conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures
in the Financial Statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group or the Parent
Company to cease to continue as a going concern.
ș Evaluate the overall presentation, structure and content of the
Financial Statements, including the disclosures, and whether the
Financial Statements represent the underlying transactions and
events in a manner that gives a true and fair view.
ș Plan and perform the group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities or
business units within the group as a basis for forming an opinion on
the Consolidated Financial Statements. We are responsible for the
direction, supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our inde-
pendence and, where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with those charged with govern-
ance, we determine those matters that were of most significance in
the audit of the Financial Statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure
about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements we performed proce-
dures to express an opinion on whether the annual report of Zealand
Pharma A/S for the financial year January 1 to December 31, 2024
with the filename zealandpharma-2024-12-31-en.zip is prepared, in
all material respects, in compliance with the Commission Delegated
Regulation (EU) 2019/815 on the European Single Electronic Format
(ESEF Regulation) which includes requirements related to the prepa-
ration of the annual report in XHTML format and iXBRL tagging of the
Consolidated Financial Statements including notes.
Management is responsible for preparing an annual report that
complies with the ESEF Regulation. This responsibility includes:
ș The preparing of the annual report in XHTML format;
ș The selection and application of appropriate iXBRL tags, including
extensions to the ESEF taxonomy and the anchoring thereof to
elements in the taxonomy, for all financial information required to
be tagged using judgment where necessary;
ș Ensuring consistency between iXBRL tagged data and the
Consolidated Financial Statements presented in human-readable
format; and
ș For such internal control as Management determines necessary to
enable the preparation of an annual report that is compliant with
the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the
annual report is prepared, in all material respects, in compliance with
the ESEF Regulation based on the evidence we have obtained, and to
issue a report that includes our opinion. The nature, timing and extent
of procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material departures from the require-
ments set out in the ESEF Regulation, whether due to fraud or error.
The procedures include:
ș Testing whether the annual report is prepared in XHTML format;
ș Obtaining an understanding of the company’s iXBRL tagging
process and of internal control over the tagging process;
ș Evaluating the completeness of the iXBRL tagging of the
Consolidated Financial Statements including notes;
ș Evaluating the appropriateness of the company’s use of iXBRL
elements selected from the ESEF taxonomy and the creation
of extension elements where no suitable element in the ESEF
taxonomy has been identified;
ș Evaluating the use of anchoring of extension elements to elements
in the ESEF taxonomy; and
ș Reconciling the iXBRL tagged data with the audited Consolidated
Financial Statements.
In our opinion, the annual report of Zealand Pharma A/S for the finan-
cial year January 1 to December 31, 2024 with the file name zealand-
pharma-2024-12-31-en.zip is prepared, in all material respects, in
compliance with the ESEF Regulation.
Hellerup, February 20, 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab (PwC)
CVR no 3377 1231
Mads Melgaard
Torben Jensen
State Authorised
Public Accountant
State Authorised
Public Accountant
mne34354
mne18651
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
191
Company information
Zealand Pharma A/S
Sydmarken 11
2860 Søborg
Denmark
CVR no.: 20 04 50 78
Tel: +45 88 77 36 00
Fax: +45 88 77 38 98
info@zealandpharma.com
www.zealandpharma.com
Established
1998
Registered office
Gladsaxe
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab (PwC)
CVR no.: 33 77 12 31
Contents
The big picture
Our business
Sustainability
Corporate Governance
Financial statements
Zealand Pharma
Annual Report 2024
192
Zealand Pharma A/S
Sydmarken 11
DK-2860 Søborg
Denmark
Tel: +45 88 77 36 00
Fax: +45 88 77 38 98
CVR no.: 20 04 50 78
zealandpharma.com
Production: Noted