Annual Report
2022
Company reg. no. 20045078
Today
Annual General
Meeting 2021
#WithZeal
Contents
Management review
CEO Letter
Read more on page 5
Other supplementary
reports 2022
Corporate Social
Responsibility Report
Remuneration Report
See our pipeline
Read more on page 13
Follow us
Overview
Zealand Pharma in short 4
Letter from the CEO and theChairman 5
2022 Achievements 8
Consolidated key figures 9
2023 Outlook and objectives 10
R&D programs
Peptide platform 12
R&D pipeline 13
Rare diseases 14
Obesity 16
Type 1 diabetes 18
Inflammation 19
Corporate matters
Corporate matters 21
Corporate social responsibility 24
Our people and culture 26
Risk management and internal control 27
Financial review 30
Shareholder information 32
Board of Directors and
Corporate Management 34
Consolidated financial statements
Income statement 41
Statement of comprehensive income 41
Statement of financial position 42
Statement of cash flows 43
Statement of changes in equity 43
Notes 44
Financial statements of the parent company
Statement of financial position 96
Statement of cash flows 97
Statement of changes in equity 97
Notes 98
Alternative performance measures for
the Group (non-audited) 110
Reports
Statement of the Board of Directors and
Executive Management 111
Independent auditor’s report 112
Other information
Company information 117
Financial statements
Zealand Pharma ∞ Annual Report 2022 2
1998
Find out more about Zealand at
zealandpharma.com/about-us
Zealand Pharma
in short
Our mission is to change lives
with next generation peptide
therapeutics.
Our aim
to lead in rare diseases with high
unmet need:
Congenital Hyperinsulinism and
Short Bowel Syndrome
to be a key player in the fast devel-
oping obesity treatment space
to create a paradigm shift in Type 1
Diabetes management
to advance potential treatments
options for chronic inflammatory
diseases
Our DNA
defines our values and unique
company culture .
We are bold.
We empower people.
We work as one team.
We can be trusted.
Our strategy
to pursue global co-development
and commercialization partner-
ships that complement and extend
our capabilities to deliver new
therapies to patients with unmet
medical needs.
Our ambition
to be the leading peptide drug
discovery and development
company.
Our company
was founded in 1998 and head-
quartered in Copenhagen, with
207 full and part time employees
globally at end of 2022.
Our peptide expertise
and platform has been built
during our 25-year history and is
the foundation that has enabled us
to develop a broad pipeline of both
clinical and pre-clinical programs.
We discovered and developed
two novel peptide therapies that
are marketed (with our partners
Sanofi and Novo Nordisk).
Zealand Pharma ∞ Annual Report 2022 4
Letter from the CEO
and theChairman
In 2022, we announced a change in strategy to
prioritize investment in peptide R&D and scale
back commercial operations. Our core strength as
a company is in therapeutic peptide design and
development, which has led to our rich pipeline
of promising candidates targeting rare diseases,
obesity and inflammation. We have demonstrated
our ability to independently bring a product
from discovery to market through our launch of
Zegalogue
®
in the U.S. We have also recognized
that to reach more patients in more regions
around the world we should partner with global
and regional leaders.
Adam Steensberg
President and
Chief Executive Officer
Martin Nicklasson
Chairman of
theBoard of Directors
Zealand Pharma ∞ Annual Report 2022 5
Advancing our R&D pipeline
We have achieved significant progress with our R&D pipe-
line. During 2022 we reported positive results from two
of our late-stage clinical programs evaluating our novel
peptide therapies for the treatment of rare diseases. The
first was for dasiglucagon in infants with congenital hyper-
insulinism (CHI), an ultrarare pediatric disease in which
patients suffer from recurrent and persistent hypoglycemia
due to excess insulin release. The findings from our Phase
3 program have deepened our understanding of dasi-
glucagon's potential as an innovative treatment for children
with CHI who have significant unmet need managing this
challenging disease. The second clinical trial evaluated
glepaglutide, our long-acting GLP-2 analog, designed for
subcutaneous delivery by an auto-injector in patients with
short bowel syndrome (SBS). The results from the EASE-1
trial represented a tremendous milestone for our company
and people living with SBS.
A key objective for our company is to progress these rare
disease programs towards regulatory submissions in 2023
and engage in discussions with potential partners who
have the commercial infrastructure to help us bring such
treatments to patients.
We also aim to advance our pipeline of peptide candidates
targeting obesity, a complex metabolic disease and one of
the greatest healthcare challenges of our time. Our exper-
tise in peptide design has generated four differentiated
obesity assets in late pre-clinical through Phase 2 clinical
trials. These peptides are designed to provide diverse, yet
complementary mechanisms of action. These mecha-
nisms are aimed at achieving greater weight loss, as well
as the potential for addressing specific clinical needs of
obese or overweight patients, while maintaining tolera-
bility. We have used two approaches: dual pharmacology
to target two receptors with one peptide and single
receptor agonists that can be combined or co-formulated
with other peptides.
In 2022, our partner Boehringer Ingelheim reported
promising Phase 2 results in type 2 diabetes for BI
456906, a long-acting dual glucagon/GLP-1 receptor
agonist that was co-invented by our two companies.
Pending results from their Phase 2 trial in patients with
obesity in 2023, we anticipate Boehringer Ingelheim’s
decision whether to initiate Phase 3 clinical development
of the molecule.
Among our three wholly owned peptides targeting
obesity, dapiglutide, our long-acting dual GLP-1/GLP-2
receptor agonist, showed very encouraging weight loss
in a four-week Phase 1 trial in healthy volunteers. We look
forward to gaining clinical insights into the mechanism
of this first-in-class molecule through an investigator
led Phase 2 trial in obesity being initiated in 2023. Of our
single receptor agonists, we are advancing a long-acting
amylin analog, ZP8396, through initial Phase 1 dose-es-
calation studies, and expect to report results during 2023.
We also expect to advance our long-acting GIP receptor
agonist, ZP6590, into Phase 1.
Significant progress
During 2022 we reported positive
results from two of our late-stage
clinical programs evaluating our
novel peptide therapies for the
treatment of rare diseases. Our
expertise in peptide design has
generated four differentiated
obesity assets in late pre-clinical
through Phase 2 clinical trials.
Zealand Pharma ∞ Annual Report 2022 6
We look forward to increasing our momentum within
obesity into the future.
Partnering our commercial products
We believe we can maximize the potential of our pipeline
through global co-development and commercialization
partnerships that complement and extend our capabili-
ties to deliver new peptide-based therapies for patients
with unmet medical needs. During the past year we have
accomplished key objectives to implement this strategy.
Having made the decision to scale back our commercial
operations, we moved quickly to ensure that patients
would continue to have access to our two marketed
products. In May we sold the V-Go
®
insulin delivery device
to MannKind Corporation and in September we entered
into a global license and development agreement with
Novo Nordisk to commercialize Zegalogue
®
. Our part-
nership with Novo Nordisk leverages our strength and
experience in peptide drug development and we continue
to contribute to the program. Under the agreement, we
remain responsible for certain activities to support further
development and approval outside of the U.S., including
the planned Marketing Authorization Application (MAA) in
the EU this year.
As we evaluate future partnerships for other pipeline
assets, one important element for us will be our ability
to continue to participate in the partnered programs
across the value chain. We will seek to maximize
the value of our assets by leveraging our strengths
and capabilities in a commercial partnership.
Extending our runway
Our strategy to prioritize investment in R&D included
a commitment to streamline operating infrastructure
and reduce corporate costs. This led to our decision to
remove Zealand Pharma’s American Depositary Shares
(ADSs) from listing on the New York-based Nasdaq Global
Select Market. At that time the ADSs accounted for less
than 1.5% of the company’s share capital. Ordinary shares
in Zealand Pharma continue to trade on the Copenhagen
Nasdaq in DKK.
Finally, despite the challenging financial markets, we were
able to strengthen our balance sheet in 2022 through
equity raises in June and October that together amounted
to approximately one billion DKK, or USD $140 million,
extending our cash runway.
We would like to thank our dedicated colleagues, the
patients and their caregivers who take part in our clin-
ical trials, our partners and our shareholders for their
continued support of Zealand Pharma.
Thank you
We would like to thank our
dedicated colleagues, the patients
who take part in our clinical trials
and their caregivers, our partners,
and our shareholders for their
continued support of
Zealand Pharma.
Adam Steensberg
President and
Chief Executive Officer
Martin Nicklasson
Chairman of
theBoard of Directors
Zealand Pharma ∞ Annual Report 2022 7
2022
Achievements
In 2022, we delivered on
our strategic objectives and
achieved significant pipeline
progress.
2022 Achievement
Executed partnership agreements
for commercial products
• Sold V-Go
®
to MannKind Corporation and entered into a partnership with Novo Nordisk for
Zegalogue
®
Delivered on the late-stage
clinical pipeline
• Reported positive results from Phase 3 trials in two rare disease programs: dasiglucagon
for congenital hyperinsulinism and glepaglutide for short bowel syndrome
Enriched our early pipeline and developed
our next generation platform
• ZP 8396 amylin for obesity: completed dose escalation in the Phase 1 single ascending
dose trial; initiated Phase 1 multiple ascending dose trial
• Dapiglutide for obesity: reported Phase 1 results and announced decision to pursue further
clinical development in obesity
Maintained a strong financial position • Met financial operating guidance
• Extended cash runway to mid-2024 by securing approximately USD 140 million through
private placements in June and October 2022
Delivered on our environmental, social,
and governance responsibility
• Implemented activities to reduce carbon footprint: revised policies and practices for travel
and vendor selection; sourced power from wind energy for headquarters
Zealand Pharma ∞ Annual Report 2022 8
DKK thousand 2022 2021 2020 2019 2018
Income statement
Revenue 103,986 108,546 192,001 41,333 37,977
Gross margin 103,986 97,576 192,001 40,918 34,621
Research and development
expenses -614,044 -581,511 -595,847 -561,423 -438,219
Sales and marketing expenses -32,298 -62,600 -20,795 0 0
General and administrative ex-
penses -237,210 -235,609 -201,594 -67,881 -43,543
Other operating items -57,587 -2,173 0 444 1,099,526
Net operating expenses -941,139 -881,893 -818,838 -628,860 617,764
Operating result -837,153 -784,317 -626,235 -587,942 652,385
Net financial items -134,888 25,430 -47,292 11,265 -27,334
Result before tax -972,041 -754,887 -673,527 -576,677 625,051
Income tax 6,431 3,949 4,814 5,136 -43,773
Net result for the period from con-
tinuing operations -965,610 -754,938 -668,713 -571,541 581,278
Net result for the period from dis-
continued operations -236,525 -263,211 -178,016 0 0
Net result for the period -1,202,135 -1,018,149 -846,729 -571,541 581,278
Earnings/loss per share from
continuing operations
– basic/diluted (DKK) -20.90 -17.61 -17.43 -16.91 18.94
Earnings/loss per share from
discontinued operations
– basic/diluted (DKK) -5.12 -6.14 -4.64 0 0
Earnings/loss per share
– basic/diluted (DKK) -26,02 -23,75 -22.07 -16.91 18.94
DKK thousand 2022 2021 2020 2019 2018
Statement of financial position
Cash and cash equivalents 1,069,234 1,129,103 960,221 1,081,060 860,635
Marketable securities 108,611 299,042 297,345 299,448 298,611
Cash, cash equivalents
and Marketable securities 1,177,845 1,428,145 1,257,566 1,380,508 1,159,246
Total assets 1,539,806 2,067,629 1,761,949 1,599,514 1,229,797
Total shareholders' equity 815,911 927,803 1,229,311 1,242,673 1,116,281
Cash flow
Cash (used in)/provided by
operating activities -942,209 -1,211,971 -688,716 -409,455 -461,420
Cash (used in)/provided by
investing activities 281,259 -18,121 -196,807 -51,666 882,925
Cash (used in)/provided by
financing activities 587,398 1,332,751 760,941 674,480 -155,449
Purchase of property, plant
and equipment -11,710 -22,133 -25,044 -21,036 -4,038
Free cash flow -953,919 -1,234,104 -713,760 -430,491 -463,418
Other
Share price (DKK) 201.40 145.10 220.60 235.40 82.40
Number of shares ('000 shares) 51,702 43,634 39,800 36,055 30,787
Market capitalization (DKKm) 9,305 6,220 8,464 8,487 2,537
Equity ratio 53% 45% 70% 78% 91%
Equity per share (DKK) 17.66 21.26 32.04 34.52 36.33
Average number of full time em-
ployees 247 346 297 173 146
Number of full time
employees at the end of the year 196 355 329 179 149
Consolidated key figures
Zealand Pharma ∞ Annual Report 2022 9
2023 Outlook
and objectives
In 2023 we are focused on
maximizing the value potential
of our pipeline.
Financial guidance
DKK million 2023 Guidance 2022 Actual
Revenue anticipated from existing and new license
and partnership agreements
No guidance due to uncertain size
and timing 104
Net operating expenses
1
800 - 900 941
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 March 2, 2023
2023 Objectives
Engage in strategic partnership
discussions
• Engage in partnership(s) in line with commercialization strategy
Deliver on the late-stage clinical pipeline Prepare regulatory filings for our rare disease programs:
• dasiglucagon for the treatment of congenital hyperinsulinism
• glepaglutide for the treatment of short bowel syndrome
Advance programs in type 1 diabetes:
• prepare regulatory filing ex-US for Zegalogue
®
partnered with Novo Nordisk
• initiate Phase 3 program of dasiglucagon in a bi-hormonal artificial pancreas pump with
Beta Bionics
Enrich our early pipeline and develop
our next generation platform
Advance our obesity programs:
• report results from 6-week Phase 1 trials and advance to 16-week Phase 1 trial of long-
acting amylin analog ZP 8396
• support Phase 2 investigator-initiated trial of dapiglutide and advance dose titration trial
Develop our early pipeline and next generation peptide platform
Maintain a strong financial position • Meet financial guidance and ensure disciplined financial management
• Maintain sufficient cash runway
Deliver on our environmental, social, and
governance responsibility
• Advance ESG initiatives, including continued employee engagement, focus on maintaining
our unique culture and phasing out of non-electric vehicles
Zealand Pharma ∞ Annual Report 2022 10
Peptide platform
We engineer
peptides
Our core expertise is the
discovery, design and
development of peptide-based
medicines. We engineer peptide
analogs to enhance biological
activity, extend duration of
action and increase stability to
provide innovative and better
treatments for a broad range of
diseases.
Our platform
Since our founding 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 disovery and development
platform has been validated by bringing two approved
products marketed respectively by Sanofi and Novo
Nordisk, as well as the novel peptide analogs currently in
clinical development.
Why 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 regulating appetite, blood glucose or stimulating
tissue growth.
Native peptides have powerful biological functions but
many are inherently unstable and short-lived in the blood-
stream. 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
solubility, 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.
In other words, we make broad use of nature’s own inven-
tions 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 collab-
orations. Our R&D capabilities and pre-clinical programs
provide opportunities to grow our scientific and medical
presence.
Zealand Pharma ∞ Annual Report 2022 12
Product Candidate Preclinical Phase 1 Phase 2 Phase 3 Registration
Dasiglucagon: Continuous
Subcutaneous Infusion
Glepaglutide (GLP-2 Analog)
BI 456906
(GCGR/GLP-1R Dual Agonist)
1
Dapiglutide
(GLP-1/GLP-2 Dual Agonist)
ZP 8396 (Amylin Analog)
ZP 6590 (GIP Receptor Agonist)
Dasiglucagon: Bi-Hormonal
Artificial Pancreas Systems
Dasiglucagon: Mini-Dose Pen
ZP 10068
(Complement C3 Inhibitor)
2
ZP 9830 (Kv1.3 Ion Channel Blocker)
ZP 10000 (ɑ4β7 Integrin Inhibitor)
All product candidates listed are investigational compounds whose safety and efficacy have not been evaluated or approved by the FDA or any other regulatory authority
1
Co-invented by Boehringer Ingelheim and Zealand: EUR 345 million outstanding potential development, regulatory and commercial milestones + high single to low double digit %
royalties on global sales to Zealand
2
Licensed to Alexion: USD $610 million potential development, regulatory and commercial milestones + high single to low double digits % royalties on net sales
GCGR, glucagon receptor; GLP, glucagon-like peptide; GIP, glucose-dependent insulinotropic polypeptide; IBD, inflammatory bowel disease; NASH, non-alcoholic steatohepatitis; T1D,
type 1 diabetes
R&D
pipeline
Our R&D pipeline of
investigational candidates aims
to address unmet medical needs
across therapeutic areas.
Congenital Hyperinsulinism
Obesity, NASH and Type 2 Diabetes
Obesity
Obesity
Obesity
Short Bowel Syndrome
Type 1 Diabetes management
Type 1 Diabetes exercise-induced hypoglycemia
Undisclosed
Undisclosed
IBD
Rare diseasesType 1 diabetesInflammation Obesity
Zealand Pharma ∞ Annual Report 2022 13
Rare diseases
Our approach
to Congenital
Hyperinsulinism
(CHI)
CHI is a 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
genetically determined CHI in the
U.S. and Europe.
A significant burden
Frequent, recurrent and severe episodes of hypoglycemia
in patients with CHI may result in brain damage. Complex
care, including continuous enteral feeding or intravenous
glucose, can result in lengthy and frequent hospitaliza-
tions that make daily life difficult. More than half of CHI
patients may be sub-optimally treated with current ther-
apies. The most severely affected children may need to
have their pancreas removed within months of birth to
prevent hypoglycemia, which results in the development
of life-long type 1 diabetes. The burden of managing CHI
is significant for the affected children and their families
and caregivers.
We are seeking to improve the lives of
patients and their caregivers
Dasiglucagon is an investigational glucagon analog
designed to allow for continuous subcutaneous infu-
sion via a wearable pump system
1
. The potential of dasi-
glucagon in the management of CHI is supported by two
Phase 3 clinical trials in newborns and children up to 12
years of age.
In one Phase 3 trial (17103), dasiglucagon reduced the
requirement for intravenous glucose in newly diag-
nosed newborns and infants who were being treated in
a hospital setting. By the end of the 25-day, two-part
clinical study, 7 of 12 patients had weaned off intravenous
glucose without needing a pancreatectomy. The second
Phase 3 trial (17109) was conducted with children aged
between 3 months and 12 years in a homecare setting,
Rare diseases
1
Zealand Pharma has a collaborative development and supply agreement with DEKA
Research & Development Corporation and affiliates for infusion pump system.
and dasiglucagon reduced time in hypoglycemia by
approximately 50% and hypoglycemic events by 37-40%
when measured by continuous glucose monitoring in the
study. The most frequently reported adverse events in
both trials were skin reactions and gastrointestinal distur-
bances. Forty-two out of the 44 patients who participated
in these two Phase 3 trials enrolled into a long-term
extension trial that is ongoing.
Zealand Pharma ∞ Annual Report 2022 14
Our approach
to Short Bowel
Syndrome (SBS)
Short bowel syndrome
(SBS) is a rare, chronic and
debilitating condition resulting
in significantly reduced or
complete loss of intestinal
function. In the U.S. there are
an estimated 7,500 people living
with SBS with intestinal failure.
Life-long dependency on parenteral support
Short bowel syndrome (SBS) is a complex disease that
occurs due to the physical loss, most often due to surgical
removal, of half or more of the small intestine. As a result,
individuals with SBS often have a reduced ability to absorb
nutrients and fluids. In more severe cases, referred to
as SBS with intestinal failure, patients are dependent on
complex parenteral support (PS) to sustain life. SBS with
intestinal failure is associated with significant medical
complications including liver and renal failure, metabolic
complications, chronic fatigue, and life-threatening infec-
tions. Although lifesaving, management of PS is associ-
ated with a significant burden on health care systems and
reduction in the patients’ and caregivers’ quality of life.
Need for improved treatment options
SBS can be treated in highly specialized, multi-disciplinary
centers, involving the use of agents that promote reha-
bilitation of the intestinal lining, such as GLP-2 analogs.
The only currently available GLP-2 treatment requires
weight-adjusted, daily subcutaneous dosing via vial and
syringe that involves a multi-step reconstitution process.
More effective and convenient treatments to further
reduce PS are needed, with the ultimate goal of enteral
autonomy.
We are developing a next generation
GLP-2 therapy for patients with SBS
Glepaglutide is a long-acting GLP-2 analog that is stable
in aqueous solution. We are developing glepaglutide as
a ready-to-use, fixed dose product designed for subcu-
taneous delivery via auto-injector. The Phase 3 program
includes four clinical trials evaluating the potential for
glepaglutide to reduce or eliminate the need for PS in SBS
patients with intestinal failure.
In the EASE-1 trial, glepaglutide administered twice a
week reduced weekly PS volume at week 24 compared to
placebo with statistical significance. Nine of 70 patients
treated with glepaglutide in the trial weaned off paren-
teral support within 24 weeks, while no placebo treated
patients were able to wean off parenteral support. Glepa-
glutide appeared to be well tolerated; the most frequently
reported adverse events in the trial were injection site
reactions and gastrointestinal events.
Glepaglutide continues to be evaluated in two long-term
safety and efficacy extension studies, EASE-2 and EASE-3,
as well as in a mechanistic study, EASE-4.
Rare diseases
Zealand Pharma ∞ Annual Report 2022 15
Obesity
Our approach
to Obesity
Excessive weight and obesity are
among the leading risk factors
for heart disease, ischemic
stroke, liver diseases and Type
2 diabetes, as well as for some
cancers.
Facing one of the greatest healthcare
challenges of our time
The global prevalence of obesity has nearly tripled since
the mid-1970s, with 650 million adults and 124 million
children and adolescents suffering from obesity. In the
U.S. alone, more than 40% of adults are considered obese.
Obesity is a complex disease that may be treated by
targeting a number of unique metabolic pathways. While
single-modality therapies have shown profound weight
loss, it is expected that dual or triple-hormonal treatments
are needed to achieve weight loss comparable to that
seen following bariatric surgery.
We are targeting obesity with
differentiated peptide molecules
We have designed peptides with built-in dual-acting
pharmacology or with mono pharmacology that can be
combined or co-formulated with other anti-obesity treat-
ments. Our goal is to achieve increased weight loss and/or
provide supplementary effects to address specific needs
of obese and overweight subpopulations.
Dual GLP-1/GLP-2 receptor agonist: dapiglutide
GLP-1 and GLP-2 are co-secreted by intestinal L cells in
response to food. GLP-1 decreases appetite reduces food
intake, delays gastric emptying after ingesting food, and
improves glycemia. GLP-2 may improve intestinal barrier
function and tolerability of GLP-1 agonists.
Obesity
Zealand Pharma ∞ Annual Report 2022 16
Dapiglutide is a first-in-class, long-acting dual GLP-1/
GLP-2 receptor agonist suitable for weekly administra-
tion. The amino acid sequence was derived from a GLP-2
peptide backbone with GLP-1 activity ‘dialed-in’.
A Phase 1 multiple ascending dose trial in healthy volun-
teers showed dose-dependent weight loss of up to 4.3%
at 4 weeks, supporting further clinical development in
obesity.
Amylin analog: ZP8396
Amylin is derived from β-cells in the pancreas and is
co-secreted with insulin. Amylin improves glycemic
control by delaying gastric emptying and targeting post-
prandial glucose. It also modulates satiety signals in the
brain to reduce food intake.
ZP8396, is a long-acting analog of amylin suitable for
weekly dosing that is designed with the potential for
monotherapy as well as to allow for co-formulation with
other anti-obesity peptides, including GLP-1 receptor
agonists, to enhance weight loss.
ZP8396 has shown significant weight loss in pre-clinical
models of obesity. A Phase 1 single ascending dose clin-
ical trial in healthy volunteers showed a pharmacokinetic
and safety profile that supports further development as a
potential obesity treatment. A Phase 1 multiple ascending
dose trial is ongoing.
GIP analog: ZP6590
Glucose-dependent insulinotropic peptide (GIP) is
released by K cells in the upper small intestine in response
to food intake. GIP acts via receptors in the hindbrain
to suppress appetite and can have a potent anti-emetic
effect. Thus, GIP may contribute to the efficacy of other
anti-obesity peptides, such as GLP-1 receptor agonists,
by both contributing a complementary effect and by
improving the therapeutic window of the other peptide.
ZP6590 is a long-acting analog of GIP with a predicted
half-life supporting weekly dosing. The molecule is
designed to allow for co-formulation with other anti-obe-
sity peptides, including GLP-1 receptor agonists.
Pre-clinical models of obesity have shown that ZP6590
can potentiate the weight loss effect of a GLP-1 receptor
agonist. Moreover, anti-emetic properties of GIP may
improve tolerance to GLP-1 receptor agonists.
Dual glucagon/GLP-1 receptor agonist: BI456906
Engaging the glucagon and GLP-1 receptors simultane-
ously may reduce bodyweight by both increasing energy
expenditure and reducing energy intake. Co-invented by
Boehringer Ingelheim and Zealand Pharma, BI456906 is a
long-acting, dual GCGR/GLP-1R agonist for once-weekly
administration.
A Phase 1 trial of BI456906 in people with obesity or
who are overweight resulted in up to 13.7% weight loss
and no unexpected safety findings following 16 weeks of
treatment. These data supported further clinical testing.
A Phase 2 trial reduced both blood sugar, as measured by
HbA1c, as well as bodyweight and waist circumference
in people living with type 2 diabetes after 16 weeks of BI
456906 treatment. Two further Phase 2 trials are ongoing
in patients with obesity and in patients with non-alcoholic
steatohepatitis (NASH).
Boehringer Ingelheim is funding and conducting all
research, development and commercialization activities
related to BI456906. Zealand is eligible to receive up to
EUR 345 million in outstanding milestone payments, and
high-single to low-double digit royalties on global sales.
Zealand Pharma ∞ Annual Report 2022 17
Type 1 diabetes
Our approach
to Type 1
Diabetes
Despite newer insulins and
better administration systems,
most people with type 1 diabetes
are unable to reach the glycemic
goals defined by the American
Diabetes Association.
Advances have been made in insulin chemistry and
delivery systems to help patients more effectively manage
their disease. Despite this, achieving tight control over
blood-glucose levels remains a daily challenge for those
living with type 1 diabetes. The risk of diabetes complica-
tions persists particularly in those who cannot optimize
glucoce control, or are at significant risk of hupoglycmia.
Type 1 diabetes is not a single-hormone disease, and
glucagon secretion is dysfunctional in these patients. We
believe that insulin-only treatment approaches do not
mimic physiology and that therapies should be aimed at
restoring physiology through bi-hormonal supplementa-
tion. The aqueous formulation of dasiglucagon potentially
renders it suitable for chronic administration.
We aspire to change type 1 diabetes management
We are developing a pre-filled dasiglucagon cartridge
intended for use in Bihormonal Artificial Pancreas
systems. We are collaborating with Beta Bionics, devel-
oper of the Bihormonal iLet
®
Bionic Pancreas (iLet Duo™),
a pocket-sized, dual chamber (insulin and dasiglucagon),
autonomous, glycemic control system. The iLet Duo™ is
an investigational device that is limited to investigational
use only. The iLet
®
Bionic Pancreas platform is designed
to use adaptive, self-learning, control algorithms, together
with continuous glucose monitoring and pump tech-
nology, to autonomously compute and administer doses
of insulin and/or glucagon and mimic the body’s natural
ability to maintain tight glycemic control.
With Beta Bionics, we are planning a Phase 3 program
designed to support the marketing applications for the
iLet Duo and a New Drug Application for the use of dasi-
glucagon in Bihormonal Artificial Pancreas systems for the
treatment of type 1 diabetes.
Type 1 diabetes
Zealand Pharma ∞ Annual Report 2022 18
Inflammation
Inflammation
Our approach
to Chronic
Inflammatory
Diseases
We believe that peptide
medicines represent an
opportunity for innovation
in the treatment of chronic
inflammatory diseases.
We are progressing programs that represent high-profile
targets shown to be difficult to address with small mole-
cules and antibodies, as well as orally available peptides
against disease targets that have been proven clinically
with injectable antibodies.
Complement C3 inhibitor
The complement system is a part of the innate immune
system, and a central component of the complement
cascade is the C3 protein. Altered activation of the
complement cascade is implicated in many immune-me-
diated diseases and in particular rare diseases such as
paroxysmal nocturnal hemoglobinuria, cold agglutinin
disease, myasthenia gravis and C3 glomerulopathy. There
is currently only one approved drug to treat complement
mediated diseases: an antibody that blocks the comple-
ment C5, the final step in complement activation. We have
selected a candidate molecule that acts on C3, upstream
of C5, and thus offers potential differentiation and broader
utility than the current therapy. The candidate investi-
gational peptide is selective and long-acting, with the
potential to be best-in-class.
We are currently progressing this molecule in collabora-
tion with Alexion (AstraZeneca). We are leading the joint
discovery and research efforts through the preclinical
stage, and Alexion will lead development efforts begin-
ning with Investigational New Drug (IND) filing and Phase
1 trials.For the lead target, Zealand is eligible to receive up
to USD $610 million in development and sales milestone
payments, plus royalties on global sales in the high single
to low double digits.
Integrin α4β7 inhibitor
ZP10000, is being developed as an orally delivered peptide
drug to target integrin α4β7, which is involved in the patho-
genesis of inflammatory bowel disease (IBD). Specific
binding to surface α4β7 on the T cells prevents the interac-
tion with MAdCAM-1 on the endothelial cells, which plays
a critical role in immune cell recruitment to the intestinal
tissue. This mode of action has been clinically validated
in IBD by vedolizumab, an approved injection-only α4β7
integrin inhibitor antibody. ZP10000, is a peptide ligand that
selectively binds to α4β7, and its efficacy has been demon-
strated in vivo in IBD models. ZP10000, has binding prop-
erties on par with marketed antibodies and oral bioavaila-
bility as demonstrated in vivo. We are currently exploring
the optimal oral formulation for this compound while we
progress the program towards clinical testing.
Kv1.3 ion channel blockers
Kv1.3 is a potassium conducting ion channel, which is
selectively upregulated on T effector memory cells. T
effector memory cells play a key role in autoimmunity
and chronic inflammation by releasing pro-inflammatory
cytokines, which drive tissue damage. The anti-inflam-
matory effects of blocking the Kv1.3 ion channel have
been demonstrated in pre-clinical models of autoimmune
diseases. The specific and selective location of the Kv1.3 on
the effector memory T cells makes it an attractive pharma-
ceutical target, as blocking preserves the protective effects
of the rest of the immune system. ZP9830, is a potent and
selective Kv1.3 blocker with potential to treat a broad range
of T cell driven autoimmune diseases. Currently we are
progressing the molecule into IND enabling toxicity studies.
Zealand Pharma ∞ Annual Report 2022 19
Annual General Meeting
Board of Directors
Corporate Management
Organization
Nomination
Committee¹
Remuneration
Committee
Scientific
Committee
Audit
Committee
Corporate
matters
Our approach to corporate
governance is founded on
ethics and integrity and
forms the basis of our efforts
to ensure strong confidence
from our shareholders,
partners, employees, and other
stakeholders.
As a company incorporated under the laws of Denmark,
and with our shares admitted to trading and official listing
on Nasdaq Copenhagen, we are subject to various appli-
cable legislations, 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’’). On 8 August 2022
we gave notice to the Security and Exchange Commis-
sion (SEC) that Zealand Pharma would delist from the
US-based Nasdaq Global Select Market and end our Amer-
ican Depository Receipt (ADR) program. On 30 September
2022, we filed the necessary notices with the SEC in New
York to complete this process and Zealand is therefore no
longer listed on the US-based Nasdaq and will continue
with Nasdaq Copenhagen as our only listing.
Management structure
Zealand has a two-tier management structure composed
of the Board of Directors (“the Board”) and the Corporate
Management. The Board is responsible for the overall
visions, strategies and objectives, the financial and mana-
gerial supervision of Zealand as well as for regular evalua-
tion of the work of the Corporate Management. In addition,
the Board provides general oversight of our activities and
ensures that it is managed in a manner and in accordance
with applicable law and our Articles of Association.
The Board approves the policies and procedures, and
Corporate Management is responsible for the day-to-day
management of Zealand in compliance with the guidelines
and directions set by the Board of Directors.
¹ The Nomination Committee is a sub-set of the board..
Corporate governance structure
Zealand Pharma ∞ Annual Report 2022 21
The allocation of responsibilities between the Board and
the Corporate Management is stipulated in the Rules of
Procedure.
Board of Directors
The Board of Directors plays an active role in setting our
strategies and goals and in monitoring the operations and
results. The Board of Directors functions according to its
rules of procedure. Board duties include establishing our
strategy, policies and activities to achieve our objectives in
accordance with the Articles of Association.
In line with the Recommendations, the Board of Directors
annually reviews and determines the qualifications and
experience needed on the Board. The chairman supervises
the Board of Director's annual self-evaluation of its perfor-
mance.
The Board of Directors met, using a mixture of virtual and
in-person meetings, for a total of 13 times in 2022.
Board Committees
The Board has established four committees to support
the Board in its duties: Audit Committee, Remuneration
Committee, Scientific Committee, and a Nomination
Committee.
Overview of meetings in 2022
Attended Absent
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
••
Bernadette Connaughton
••••••••••••• ••••••••
N/A N/A
••
Alain Munoz
•••••••••••••
N/A
•••••••• •••• ••
Leonard Kruimer
••••••••••••• ••••••••
N/A N/A
••
Michael J Owen
•••••••••••••
N/A
•••••••• •••• ••
Jens Peter Stenvang
•••••••••••••
N/A 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
Iben Louise Gjelstrup
•••••••••••••
N/A N/A N/A N/A
Audit Committee
The Audit Committee assists the Board of Directors with
oversight of financial reporting, internal control and risk
management systems, external auditing of the annual
report, and control of the auditor’s independence,
including oversight of non-audit services and other activi-
ties delegated by the Board of Directors.
In 2022, specific topics discussed included auditor’s
reports, accounting policies, internal controls, including
SOX (Sarbanes-Oxley Act) compliance, finance, risk
management, insurance policy, de-listing of the American
Depository Shares, year-end issues and external financing.
The Audit Committee met eight times in 2022.
Remuneration Committee
The Remuneration Committee proposes the remuneration
policy as well as targets for company-operated perfor-
mance-related incentive programs. These policies and
guidelines set out the various components of the remu-
neration, including fixed and variable remuneration such as
pension schemes, benefits, retention bonuses, severance
and incentive schemes as well as the related bonus and
evaluation criteria.
In 2022, specific topics discussed included long-term
incentive programs for management and Board of Direc-
tors, US based employees, company goals, compensation
policy for eligible employees, termination package for
the former CEO and CFO, compensation package for the
new CEO and the new CFO and Board compensation and
development of Zealand peer group.
Zealand Pharma ∞ Annual Report 2022 22
The Remuneration Committee met virtually eight times in
2022.
Nomination Committee
The Nomination Committee makes recommendations for
decisions to the Board of Directors regarding Board and
CEO positions and identifies and recommend candidates
for the Board of Directors.
Specific topics discussed in 2022 included the composition
of the independent members of the Board of Directors
and a review of the organization’s needs from the revised
company strategy announced on 30 March 2022. The
Nomination Committee met twice in 2022.
Scientific Committee
The Scientific Committee is a forum with the purpose of
leveraging the scientific expertise of the appointed Board
of Directors, understanding, and challenging the approach
and assumptions of the Company’s Research & Develop-
ment strategy, provide technical assistance to the Board on
Research & Development related issues and provide guid-
ance to the Board on the risks of the Company’s Research
& Development strategy.
Specific topics discussed in 2022 included the develop-
ment of the clinical pipeline, preparation for potential
interactions with regulatory authorities and a review of the
pre-clinical pipeline. The Scientific Committee met four
times in 2022.
The charter of the Audit Committee
is available at:
zealandpharma.com/audit-committee
The charter of the Remuneration Committee,
the remuneration report, the remuneration
policy and the guidelines for incentive pay are
available at:
zealandpharma.com/remuneration-committee
The charter of the Nomination Committee is
available at:
zealandpharma.com/nomination-committee
The charter of the Scientific Committee is
available at:
zealandpharma.com/scientific-committee
Compliance with the Corporate Governance
Recommendations
Zealand complies with the Recommendations on
Corporate Governance in all material respects,
with notes on those areas where is has chosen
to depart from those recommendations set out
below. Zealand has chosen to depart or had
provided explanations in respect of the following
areas of the Recommendations:
1.1.2. The Committee recommends that the
company adopts policies on the company’s rela-
tionships with its shareholders.
1.4.2. The Committee recommends that the
board of directors adopts a tax policy to be made
available on the company’s website.
2.1.1. 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.
3.1.2. The Committee recommends that the
board of directors on an annual basis discusses
the company’s activities to ensure relevant diver-
sity 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.
Zealand Pharma ∞ Annual Report 2022 23
Corporate
social
responsibility
We are committed to being
a socially responsible
biotechnology company that
serves broader economic,
societal, and environmental
interests.
Our commitment to corporate social responsibility (CSR)
is embedded in our mission to change lives with next
generation peptide therapeutics. Our ambition to be the
best peptide drug discovery and development company is
inspired by patients and the opportunity to address their
unmet medical needs. We are committed to ensuring
that our actions benefit our direct stakeholders (patients,
shareholders, partners and colleagues) as well as society.
Our CSR policy focuses on areas most relevant to our
core business:
• Working environment, employee well-being,
and diversity
• Quality in relation to research, development and
product supply activities
• Putting patients first
• Creating strong partnerships
• Environmental sustainability
• Business ethics
Commitment to Sustainable Development Goals
We are committed to addressing global challenges
through support of the Sustainable Development Goals
established by the United Nations. Six goals that are rele-
vant to our business remain in focus, and we continue
to identify and implement initiatives and metrics to eval-
uate our progress in these areas. Additional goals may be
considered as our company evolves.
For the statutory reporting on corporate social
responsibility, gender distribution and diversity
in management cf. the Danish Financial Statement
Act §99a, §99b and §107d, please see the Corporate
Social Responsibility Report 2022 at
Zealand Pharma ∞ Annual Report 2022 24
Gender Diversity
Diversity provides better understanding of the commu-
nities in which we operate, so that we can better serve
patients and other stakeholders. We aim to achieve equal
representation of both genders at all management levels,
from the Board of Directors to the heads of departments.
Zealand has an even distribution of female and male
managers, with more women than men across the organ-
ization (female represenation is 59%; 2021: 58%). As of
December 31, 2022, Zealand's Corporate Management
included two women and four men, giving a female
representation of 33% (2021: 17%) and the Board of Direc-
tors consisted of four women and seven men, giving a
female representation of 36% (2021: 36%).
We are committed to providing equal opportunities for all
employees, by recruiting, hiring, training, promoting, and
making other personnel decisions, without regard to race,
colour, gender identity/expression, religion, age, sexual
orientation, national origin, disability, military or veteran
status or any other protected basis.
Quality in everything we do
Our quality policy describes compliance with rigorous
internationally recognized standards and guidelines at all
stages of research, development and commercial produc-
tion to ensure that we do not place patients or animals
at risk due to inadequate safety, quality or efficacy. We
maintain oversight of outsourced GxP activities to ensure
vendor compliance with the requirements of pharmaceu-
tical quality standards including Good Laboratory Practice
(GLP), Good Manufacturing, Practice (GMP), Good Clinical
Practice (GCP), Good Pharmacovigilance Practice (GVP),
appropriate standards for medical devices and others.
Focus on patients
At Zealand, we work to improve the lives of people with
unmet medical needs through collaborations with advo-
cacy groups and patient organizations. We have a long-
term commitment to patients and their caregivers to
develop better treatment options for improved outcomes.
Board of Directors
Company
Corporate Management
4 (5)
2 (1)
2022
2021
Men
Women
2022
2021
Men
Women
%
64 (64)
36 (36)
41 (42)
59 (58)
2022
2021
Men
Women
%
Zealand Pharma ∞ Annual Report 2022 25
Our people
and culture
Our team's well-being,
competency development,
and engagement are key to
realizing our ambitious business
goals. We strive to cultivate a
diverse, unique, energizing, and
respectful environment for all
employees, regardless of their
background.
Engagement
We are proud that close to 100% of employees across
geographies and functional areas believe in the future
of Zealand, according to our 2022 engagement survey
results. Our people are dedicated and ambitious, helping
to achieve major organizational goals, even with a change
in company strategy during 2022. We aspire to maintain
this level of engagement into the future.
One Team
We aim to change lives through next generation thera-
peutics, and our employees are at the center of the solu-
tions. We pride ourselves on our ability to work together
as one team, and foster a strong company culture
founded on collaboration, bold innovation, empower-
ment, and trust.
To support our employees’ well-being, we work system-
atically to maintain a safe and healthy work environment.
We have designed our policies and governance systems to
promote physical and psychosocial health. Our commit-
tees include a Works Council and an Occupational Safety
and Health Committee (OSHA Committee), on which
both management and employees are represented and
regularly discuss matters related to our work environment.
Employees are also represented on the company’s Board
of Directors per Danish law.
Talent
Zealand strives to be among the very best employers. We
are building on Zealand's unique strengths and culture,
while we evolve and diversify our workforce to meet
tomorrow's demands and keep our innovation power.
To attract and retain global talent, we foster a strong
company culture, exemplified by our "DNA". These lived
and shared values are that our employees are bold, work
as one team, can be trusted and empower each other.
Through our employees, we can continue to grow a
company with highly specialized employees committed
to changing lives by evolving our business and advancing
our pipeline.
Safe work environment
Zealand works systematically to maintain a safe and
healthy work environment. We maintain numerous proce-
dures to support our work environment and train all
Zealand employees in standard safety protocols to enable
self-management of their occupational safety.
Zealand Pharma ∞ Annual Report 2022 26
Risk
management
and internal
control
We constantly monitor and
assess the overall risk of doing
business in the pharmaceutical/
biotech industry and the
particular risks associated
with our current activities and
corporate profile.
This section contains a summary of our key risk areas and
how we attempt to address and mitigate such risks. Envi-
ronmental and ethical risks are covered in our corporate
social responsibility reporting, and risks related to finan-
cial reporting are covered in our corporate governance
reporting.
Doing business in the pharmaceutical/biotech industry
involves major financial risks. The development of novel
medicines takes several years, costs are high, and the
probability of reaching the market is relatively low due to
developmental and regulatory hurdles.
Our Management is responsible for implementing
adequate systems and policies in relation to risk manage-
ment and internal control, and for assessing the overall
and specific risks associated with our business and opera-
tions. Furthermore, our Management seeks to ensure that
such risks are managed optimally and in a responsible and
efficient manner.
The main risks related to our activities include employees’
and business partners’ violation of our anti-corruption
commitment and potential legal and financial conse-
quences thereof. Zealand’s whistle-blower program
and insider information list are two methods for miti-
gating such risk. We are developing programs to support
ongoing maintenance of code of business conduct
understanding among employees, as well as a more
robust program to ensure data privacy and protection.
Risks of particular importance to us are scientific and
development risks, commercial risks, intellectual property
risks, clinical trial risks, regulatory risks, partner interest
risks, and financial risks. Risk and mitigation plans are
monitored by Management, and the continuous risk
assessment is an integral part of the yearly reporting to
the Board of Directors.
Zealand Pharma ∞ Annual Report 2022 27
Zealand risk and mitigation
Commercial activities – products in
research and development
Research and
development
Clinical trials Intellectual property
Risk
Risks relating to the sales of our products, market
size, competition, development time and costs,
partner interest and pricing of products in develop-
ment.
Research and development of new pharmaceutical
medicines is inherently a high-risk activity. The
probability of discovering and developing an effica-
cious and safe new medicine with strong IP protec-
tion is challenging.
Our product candidates will need to undergo
time-consuming and expensive trials to document
efficacy and safety, the outcome of which is unpre-
dictable, and for which there is a high risk of failure.
If clinical trials of our product candidates fail to
satisfactorily demonstrate safety and efficacy to
the FDA, the EMA and other comparable regulatory
authorities, we may incur additional costs or experi-
ence delays in completing, or ultimately not be able
to complete, the development of these product
candidates.
If we or our partners were to face infringement
claims or challenges by third parties, an adverse
outcome could subject us or our partners to signif-
icant liabilities to such third parties or lead to the
withdrawal of the product. This could lead us or
our partners to curtail or cease the development
of some or all of their candidate drugs, or cause
our partners to seek legal or contractual remedies
against us, potentially involving a reduction in the
royalties due to us.
Mitigation
Our revised strategy is to be the partner of choice
for next generation peptides. The partnership model
works by maintaining a close dialogue with partners
to monitor the progress on the partnership with the
commercial assets.
Throughout the research and development process,
we regularly assess these risks by means of a risk
assessment of all our research and development
projects, conducted by Management together with
the department heads and project managers. This
is reviewed and escalated as appropriate during the
lifetime of the project. Highlights of this assessment
are presented to the Board of Directors, and this
includes a description of each project and measures
its progress based on milestones. It analyses the
individual risks of each project and prioritizes the
project portfolio.
Our clinical project teams work closely with
external expert clinicians and product development
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, receive training and
are continuously developed to fulfil requirements.
We also engage in meetings with regulatory author-
ities to ensure that there is alignment on the regula-
tory strategy and trial requirements.
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 defence should this be
necessary.
Our employees receive training and updates on
policies regarding the correct and lawful manage-
ment of internal and external intellectual property.
Zealand Pharma ∞ Annual Report 2022 28
Zealand risk and mitigation – continued
Regulatory
Future partnerships Financial IT
Risk
The regulatory approval processes of the FDA, the
EMA and other regulatory authorities can be lengthy,
time consuming and inherently unpredictable, and
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.
Entering into collaborations with partners can bring
significant benefits as well as involve risks. In addi-
tion, full control of the product is often given to the
partner.
Financial risks relate to cash and treasury manage-
ment, liquidity forecasts and financing opportuni-
ties.
In addition to the above there are macroeconomic
risks relating to rising interest rates and volatility in
the financial markets.
Our information technology systems are key to its
operations and need protection from intrusion from
unauthorized entry.
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 regulatory strategy and
trial requirements.
Under our revised corporate strategy, partnerships
are a key part of our future. To maximize the value
of such partnerships, we strive to foster a close and
open dialogue with our partners, thereby building
strong partnerships that work effectively.
Financial risks are regularly assessed by our
Company's Management and reported to the Audit
Committee and the Board of Directors.
The company regularly assesses its exposure to the
markets and assess all its options for its financing
needs.
We employ qualified IT professionals who use
external assistance from qualified vendors to
provide advice on cybersecurity and systems secu-
rity were 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.
Zealand Pharma ∞ Annual Report 2022 29
Financial
review
Financial review for the period
January 1 – December 31, 2022.
Financial results
In March 2022 Zealand announced a change in strategy
and intention to scale back commercial operations.
As a consequence, the result from activities related to
commercialization of products via own sales force is clas-
sified as discontinued operations. Comparative figures for
2021 have been restated to match the classification.
Revenue
DKK million 2022 2021 ∆
∆ in
percent
Revenue from collabora-
tion agreements 104.0 108.6 -4.6 -4%
Product sales from
discontinued operations 87.6 184.0 -96.4 -52%
Total revenue 191.6 292.6 -101.0 -35%
Revenue from collaboration agreements is positively
impacted by the license and development agreement
with Novo Nordisk A/S related to Zegalogue. The positive
effect is offset by a decrease in received milestones from
other collaboration agreements.
Research and development expenses
DKK million 2022 2021 ∆
∆ in
percent
Research and develop-
ment expenses from
continuing operations 614.0 581.5 32.5 6%
Research and develop-
ment expenses from
discontinued operations 4.9 6.2 -1.3 -21%
Total research and devel-
opment expenses 618.9 587.7 31.2 5%
Research and development expenses are increased
compared to last year due to the new strategy to prioritize
pipeline activities.
Sales and marketing expenses
DKK million 2022 2021 ∆
∆ in
percent
Sales and marketing
expenses from continuing
operations 32.3 62.6 -30.3 -48%
Sales and marketing ex-
penses from discontinued
operations 113.7 312.7 -199.0 -64%
Total sales and marketing
expenses 146.0 375.3 -229.3 -61%
Sales and marketing expenses are decreased compared to
2021 as a result of the change in strategy as announced in
March, 2022.
Zealand Pharma ∞ Annual Report 2022 30
General and administrative expenses
DKK million 2022 2021 ∆
∆ in
percent
General and adminis-
trative expenses from
continuing operations 237.2 235.6 1.6 1%
General and adminis-
trative expenses from
discontinued operations 17.1 25.4 -8.3 -33%
Total general and admin-
istrative expenses 254.3 261.0 -6.7 -3%
The decrease in general and administrative expenses from
discontinued operations is a result of the reduced activi-
ties in US following the change in strategy.
Financial items
DKK million 2022 2021 ∆
∆ in
percent
Financial income 133.3 41.2 92.1 224%
Financial expenses -268.2 -15.8 -252.4 1,597%
Net financial items -134.9 25.4 -160.3 -631%
Financial items is driven by the loan agreement with
Oberland. The increase in financial income is a result of
a fair value adjustment on Zealands option to prepay the
loan. The increase in expense is caused by a recognized
loss on the partial repayment of the loan, fair value adjust-
ments of Oberlands option to call for repayment of the
loan under certain conditions and the ongoing interests
on the loan.
Corporate tax
DKK million 2022 2021 ∆
∆ in
percent
Corporate tax from con-
tinuing operations 6.4 3.9 2.5 64%
Corporate tax from dis-
continued operations -13.1 4.8 -17.9 -373%
Total corporate tax -6.7 8.7 -15.4 -177%
The corporate tax is impacted by an impairment of
deferred taxes related to our US operations as a conse-
quense of the changed strategy.
Liquidity and capital resources
Equity
DKK million
Dec 31,
2022
Dec 31,
2021 ∆
∆ in
percent
Equity 815.9 927.8 -111.9 -12%
Equity ratio 53% 45% N/A N/A
The decrease in equity was mainly driven by the loss for
the period offset by capital increases in June and October
2022 amounting to DKK 1,085 million.
Cash, cash equivalents and
Marketable securities
DKK million
Dec 31,
2022
Dec 31,
2021 ∆
∆ in
percent
Cash, cash equivalents
and marketable securities 1,177.8 1,428.1 -250.3 -18%
Cash flow
DKK million 2022 2021 ∆
∆ in
percent
Cash used in
operating activities -942.2 -1,212.0 269.8 22%
Cash used in
investing activities 281.3 -18.1 299.4 1,654%
Cash flow from
financing activities 587.4 1,332.8 -745.4 -56%
Free cash flow -953.9 -1,234.1 -280.2 23%
The decrease in cash used in operating activities is caused
by a postive impact from working capital due to the
reduced sales activities.
Cash used in investing activities in 2022 relates to settle-
ment of the Groups marketable securities and proceeds
received from the divestment of V-GO.
Cash from financing activities is from the capital raises in
June and October 2022, offset by the partial repayment of
the Oberland loan.
Zealand Pharma ∞ Annual Report 2022 31
18 (28)
25 (41)
0 (0)
20 (1)
37 (29)
%
Denmark
United Kingdom
Rest of Europe
Rest of World
United States
2022
2021
Shareholder
information
We are listed on Nasdaq
Copenhagen under the ticker
symbol ZEAL.
Find out more about our investor relations at
zealandpharma.com/investor-relations
At December 31, 2022, the nominal value of our share
capital was DKK 51,702,098, divided into 51,702,098
shares with a nominal value of DKK 1 each.
In 2022 the share capital increased by a nominal value of
DKK 8.1 million through two directed issues and private
placements (DKK 7.9 million in total) and exercise of
employee warrants (DKK 0.2 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 share-
holders’ meetings.
Change in number of shareholders during 2022
The number of registered shareholders in Zealand Pharma
increased to 24,283 at December 31, 2022, from 24,097 at
December 31, 2021.
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 December
31, 2022:
• Van Herk Investments, Netherlands (14.8% of
votes/14.8% of capital)
• Polar Capital LLP, United Kingdom (11.5% of votes/11.5%
of capital)
Institutional shares by geography
Based on Nasdaq Corporate Solutions aggregated data
per October 2022 and Computershare aggregated data
per December 2021.
Zealand Pharma ∞ Annual Report 2022 32
Share price performance
The price of Zealand’s shares increased by 38.8% during
2022 with a market closing share price at year-end of DKK
201.40, compared to DKK 145.10 at year-end 2021.
Annual General Meeting
The annual general meeting is scheduled to be held elec-
tronically and in-person on Wednesday, March 29, 2023 at
3:00 PM CET. Additional information will become available
at https://www.zealandpharma.com/annual- general-
meeting no later than 3 weeks before the annual general
meeting.
Financial Calendar 2023
Date Event
March 29 Annual General Meeting
May 11 Q1 Earnings Release /
Interim Report First Quarter 2023
August 17 H1 Earnings Release /
Interim Report First Half 2023
November 9 Q3 Earnings Release /
Interim Report Third Quarter 2023
All dates are subject to NASDAQ deadlines and reporting
requirements and are subject to change
Analyst coverage
Zealand is followed by the financial institutions and
analysts listed below:
Institution Analyst
United Kingdom
Goldman Sachs
Jefferies
Morgan Stanley
Rajan Sharma
Lucy Codrington
Sarita Kapila
Netherlands
Kempen Suzanne van Voorthuizen
Denmark
Carnegie
Danske Bank
Nordea
Jesper Ilsøe
Thomas Bowers
Michael Novod
Core share data
Denmark U.S.*
Number of shares and
ADSs at Dec. 31, 2022
51,702,098 0
Listing Nasdaq
Copenhagen
Nasdaq Global Select
Market, New York
Ticker symbol ZEAL ZEAL
Index
memberships
Nasdaq
Copenhagen
* In 2022, Zealand voluntarily removed its American Depositary Shares (ADSs) from listing
on the New York-based Nasdaq Global Select Market. One ADS represented one ordi-
nary share in Zealand Pharma, and the company’s ADSs accounted for less than 1.5% of
the total share capital.
Zealand Pharma ∞ Annual Report 2022 33
Board of
Directors and
Corporate
Management
Find out more about the Board of Directors at
zealandpharma.com/board-of-directors-
and-nomination-committee
Martin Nicklasson Kirsten A. Drejer Jeffrey Berkowitz
Position Chairman Vice Chairman Board member
Year of birth 1955 1956 1966
Nationality Swedish Danish American
Gender Male Female Male
First elected 2015 2018 2019
Committee AdCom, RemCom chair and
NomCom chair
NomCom and SciCom NomCom and AdCom
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 chairman of Nykode Therapeu-
tics AS.
Chairman of the board of Antag Thera-
peutics, Bioneer and ResoTher Pharma.
Board member of Curasight A/S and Malin
Corporation.
CEO and Director of Real Endpoints.
Board member of H. Lundbeck A/S,
Esperion Therapeutics, Inc. and Uniphar
PLC.
Zealand shares at
December 31, 2022
10,570 4,800 4,200
Zealand warrants at
December 31, 2022
0 0 0
Zealand RSUs at
December 31, 2022
8,000 4,000 4,000
Change in owner-
ship in 2022
+8,000 +4,000 +4,000
Zealand Board of Directors at March 2, 2023
Zealand Pharma ∞ Annual Report 2022 34
Bernadette Connaughton Leonard Kruimer Alain Munoz Michael John Owen
Position Board member Board member Board member Board member
Year of birth 1958 1958 1949 1951
Nationality American Dutch French British
Gender Female Male Male Male
First elected 2019 2019 2005
¹
2012
Committee NomCom and AdCom NomCom and AdCom NomCom, RemCom and ScCom NomCom, RemCom and ScCom
Independent Yes Yes No
2
Yes
Special
competencies
More than 30 years of global strategic, commer-
cial and leadership expertise, and a broad
perspective on the strategy, capabilities and
governance required for successful execution in
U.S. and international markets.
More than 30 years of experience in corporate
finance, planning and strategy, including 15
years in senior executive positions in private and
publicly listed biotechnology companies.
Physician qualified cardiology and intensive care.
Experience in the pharmaceutical industry at senior
management level. Served as SVP for international
development in the Sanofi Group and in the phar-
maceutical division of Fournier Laboratories.
Research experience focusing on the immune
system and more than 150 publications. Has
held several leading positions at GlaxoSmith-
Kline, most recently as SVP and head of
biopharmaceuticals research.
Current positions Board member of the board of Halozyme Thera-
peutics Inc., Editas Medicine and Syneos Health.
Chairman of the board of BioInvent Interna-
tional AB, board member of Oncolytics Biotech
Inc., board member and Chairman of Audit
Committee of Pharming Group NV., and Basilea
Pharmaceutica Ltd. Director AI Global (Nether-
lands) PCC Ltd.
Chairman of the board of directors of Acticor
Biotech and a board member of Auris Medical
and Amryt Pharma Plc.
Chairman of the board of Ossianix Inc. and is a
member of the board of ReNeuron Group plc,
and Sareum Holdings plc.
Zealand shares at
December 31, 2022
4,500 8,000 9,750 3,820
Zealand warrants at
December 31, 2022
0 0 0 0
Zealand RSUs at
December 31, 2022
4,000 5,500 4,500 4,500
Change in owner-
ship in 2022
+4,000 +4,000 4,500 3,520
Zealand Board of Directors at March 2, 2023, continued
1
Resigned in 2006 and re-elected in 2007.
2
Not considered independent in accordance with the Danish Recommendations on Corporate Governance of 2 December 2020.
Zealand Pharma ∞ Annual Report 2022 35
Frederik Barfoed Beck Anneline Nansen Louise Gjelstrup Jens Peter Stenvang
Position Employee-elected board member
1
Employee-elected board member
1
Employee-elected board member
1
Employee-elected board member¹
Year of birth 1967 1969 1977 1954
Nationality Danish Danish Danish Danish
Gender Male Female Female Male
First elected 2020 2021 2020 2014
Committee None None None None
Independent No No No No
Current positions Senior Outsourcing Manager Principal Scientist. Principal Laboratory Technologist. Senior Application Specialist.
Zealand shares at
December 31, 2022
5,738 1,571 2,230
7,800
Zealand warrants at
December 31, 2022
7,928 10,047 2,523
1,773
Zealand RSUs at
December 31, 2022
1,500 1,500 1,500
1,500
Change in owner-
ship in 2022
+940 0 +975
+1,500
Zealand Board of Directors at March 2, 2023, continued
1
Employee-elected board members are elected for a period of four years.
Zealand Pharma ∞ Annual Report 2022 36
Adam Steensberg Henriette Wennicke David Kendall
Position Executive Management
President and Chief Executive Officer
Executive Management
Executive Vice President and Chief Financial Officer Senior Vice President and Chief Medical Officer
Year of birth 1974 1983 1961
Nationality Danish Danish American
Gender Male Female Male
Joined Zealand 2010 2022 2020
Experience Adam was appointed to the position of CEO in March 2022 having
served most recently as our Executive Vice President, Research &
Development, and Chief Medical Officer. Prior to joining Zealand,
Adam led clinical research teams as medical director at Novo
Nordisk and worked as a clinician at Rigshospitalet, University of
Copenhagen. Adam was a medical and scientific advisor in the
areas of endocrinology, cardiology, gastroenterology and rheu-
matology, and has significant experience of leading regulatory
strategies.
Adam is a chairman of the board of directors of Cessatech ApS
and board member of Dansk Biotek
Henriette has served as the Vice President and Head of Investor
Relations and Treasury at GN Store Nord, a global leader in intel-
ligent audio solutions listed on the Nasdaq Copenhagen. Prior to
that role, she was Vice President and Head of Global Finance at
GN Hearing. Henriette began her career with Novo Nordisk, rising
through financial leadership roles.
David has served as Chief Medical Officer for MannKind Corpo-
ration, Vice President, Medical Affairs and Distinguished Medical
Fellow at Eli Lilly and Company, and as Chief Scientific and Medical
Officer for the American Diabetes Association. His clinical career
includes roles as both Chief of Clinical Services and Medical
Director at the International Diabetes Center and as faculty at the
University of Minnesota.
David is a board observer of Beta Bionics, Inc.
Zealand shares at
December 31, 2022
17,611 0 1,536
Zealand warrants at
December 31, 2022
254,063 14,038 10,490
Zealand PSUs at
December 31, 2022
176,984 20,590 0
Zealand RSUs at
December 31, 2022
11,711 0 32,829
Change in owner-
ship in 2022
+17,611 0 0
Zealand Corporate Management at March 2, 2023
Zealand Pharma ∞ Annual Report 2022 37
Ivan Møller Christina Sonnenborg Bredal Ravinder Chahil
Position Executive Vice President and Chief Operating Officer Senior Vice President, People & Organization Senior Vice President and General Counsel
Year of birth 1972 1985 1968
Nationality American/Danish Danish British
Gender Male Female Male
Joined Zealand 2018 2020 2017
Experience Ivan has served at Novartis in both generics and pharmaceutical
manufacturing, as well as in strategy, quality assurance, contract
manufacturing and supply chain leadership in Germany, the U.S.
and Switzerland.
Ivan was project leader at The Boston Consulting Group in the
pharmaceutical R&D and manufacturing areas.
Christina brings experience in employment law and workforce
challenges. Prior to joining Zealand, Christina served as a consul-
tant at PwC Legal, specializing in employment law and employee
share programs, and at EY People Advisory Services, specializing in
global mobility tax and rewards.
Christina was previously a trial lawyer litigating civil court cases
and an attorney specializing in M&A and legal due diligence.
Ravinder brings international experience in intellectual property
law in the life science sector, with expertise in litigation, licensing,
mergers, acquisitions. Additionally, he has experience with
financing, securitization, and capital markets. Prior to his in-house
roles as Director of Intellectual Property at Polpharma SA and
Actavis Group Hf, he worked for 10 years in private practice in
London, practicing contentious and non-contentious intellectual
property law.
Zealand shares at
December 31, 2022
15,349 542 0
Zealand warrants at
December 31, 2022
129,915 31,761 50,261
Zealand PSUs at
December 31, 2022
90,927 35,400 33,900
Zealand RSUs at
December 31, 2022
10,739 333 2,376
Change in owner-
ship in 2022
+15,349 +542 0
Zealand Corporate Management at March 2, 2023, continued
Zealand Pharma ∞ Annual Report 2022 38
Income statement
Income statement
Statement of comprehensive income
Statement of comprehensive income
Consolidated financial statements
DKK thousand Note 2022 2021 2020
Revenue 2.1 103,986 108,546 192,001
Royalty expenses 0 -10,970 0
Gross margin 103,986 97,576 192,001
Research and development expenses 2.3 -614,044 -581,511 -595,847
Selling and marketing expenses 2.4 -32,298 -62,600 -20,795
General and administrative expenses 2.5 -237,210 -235,609 -201,594
Other operating items 2.7 -57,587 -2,173 0
Net operating expenses -941,139 -881,893 -818,236
Operating result -837,153 -784,317 -626,235
Financial income 4.7 133,270 41,211 2,022
Financial expenses 4.7 -268,158 -15,781 -49,314
Result before tax -972,041 -758,887 -673,527
Corporate tax 5.1 6,431 3,949 4,814
Net result for the year from continuing operations -965,610 -754,938 -668,713
Net result for the year from discontinued
operations 2.8 -236,525 -263,211 -178,016
Net result for the year -1,202,135 -1,018,149 -846,729
Earnings/(loss) per share from continuing
operations – basic/diluted (DKK) 2.9 -20.90 17.61 17.43
Earnings/(loss) per share from discontinued
operations – basic/diluted (DKK) 2.9 -5.12 6.14 4.64
Earnings/(loss) per share – basic/diluted (DKK) 2.9 -26.02 23.75 22.07
DKK thousand Note 2022 2021 2020
Net result for the year -1,202,135 -1,018,149 -846,729
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 462 5,178 8,977
Total comprehensive result for the year -1,201,673 -1,012,971 -837,752
Consolidated income statement for the years ended
December 31, 2022, 2021 and 2020
Consolidated statements of comprehensive income for the years ended
December 31, 2022, 2021 and 2020
Zealand Pharma ∞ Annual Report 2022 41
Statement of financial position
Statement of financial position
Consolidated financial statements
Consolidated statements of financial position
as of December 31, 2022 and 2021
DKK thousand Note 2022 2021
Assets
Non-current assets
Intangible assets 3.1 0 53,790
Property, plant and equipment 3.2 50,528 86,455
Right-of-use assets 3.3 114,960 134,994
Other Investments 3.4 30,943 26,907
Corporate tax receivable 5.1 0 1,268
Deferred tax assets 5.1 2,017 13,525
Trade and other receivables 3.6 18,105 29,094
Other financial assets 3.7 6,901 0
Total non-current assets 223,454 346,033
Current assets
Inventories 3.5 1,286 118,436
Trade and other receivables 3.6 115,622 153,453
Corporate tax receivable 5.1 21,599 21,562
Marketable securities 4.5 108,611 299,042
Cash and cash equivalents (including cash subject to certain
conditions) 4.4 1,069,234 1,129,103
Total current assets 1,316,352 1,721,596
Total assets 1,539,806 2,067,629
DKK thousand Note 2022 2021
Shareholders equity and liabilities
Shareholders equity
Share capital 4.8 51,702 43,634
Currency translation reserve 14,617 14,155
Other reserves 749,592 870,014
Total shareholders' equity 815,911 927,803
Non-current liabilities
Borrowings including embedded derivatives 4.6 401,346 647,906
Lease liabilities 3.3 108,000 124,626
Deferred revenue 3.8 0 14,551
Trade and other payables 3.9 19,058 18,426
Total non-current liabilities 528,404 805,509
Current liabilities
Lease liabilities 3.3 14,729 14,897
Deferred revenue 3.8 0 53,033
Trade and other payables 3.9 180,762 266,387
Total current liabilities 195,491 334,317
Total liabilities 723,895 1,139,826
Total shareholders' equity and liabilities 1,539,806 2,067,629
Zealand Pharma ∞ Annual Report 2022 42
Statement of changes in equity
Statement of changes in equity
Statement of cash flows
Statement of cash flows
Consolidated financial statements
DKK thousand Note 2022 2021 2020
Net result for the year -1,202,135 -1,018,149 -846,729
Adjustments for other non-cash items 6.7 269,622 17,430 63,862
Change in working capital 6.7 10,263 -166,325 97,818
Interest received 5,178 0 895
Interest paid -34,414 -3,296 -4,562
Corporate tax received/(paid) 9,277 -41,631 0
Cash flow from/(used in) operating activities -942,209 -1,211,971 -688,716
Acquisition of Valeritas business, net of cash acquired 0 0 -167,791
Change in deposits 0 4,012 -3,972
Purchase of marketable securities -700,477 0 0
Proceeds from sale of marketable securities 887,060 0 0
Proceeds from sale of V-GO 2.8 106,386 0 0
Purchase of property, plant and equipment -11,710 -22,133 -25,044
Cash flow from/(used in) investing activities 281,259 -18,121 -196,807
Proceeds from issuance of shares related to
exercise of share based compensation 23,836 26,070 41,363
Proceeds from issuance of shares 1,060,825 748,975 791,503
Purchase of treasury shares 0 -28,590 0
Repayment of borrowings 4.6 -436,088 0 0
Proceeds from borrowings 0 647,906 0
Costs related to issuance of shares -47,456 -46,895 -42,706
Lease installments 3.3 -13,719 -14,715 -29,219
Cash flow from/(used in) financing activities 587,398 1,332,751 760,941
(Decrease)/increase in cash and cash equivalents -73,552 102,659 -124,582
Cash and cash equivalents at beginning of period 1,129,103 960,221 1,081,060
Exchange rate adjustments 13,683 66,223 3,743
Cash and cash equivalents at end of period 1,069,234 1,129,103 960,221
DKK thousand
Share
capital
Trans-
lation
reserve
Other
reserves Total
Equity at January 1, 2022 43,634 14,155 870,014 927,803
Other comprehensive income 0 462 0 462
Net result for the year 0 0 -1,202,135 -1,202,135
Share-based compensation 0 0 52,576 52,576
Capital increases 8,068 0 1,076,593 1,084,661
Cost related to capital increases 0 0 -47,456 -47,456
Equity at December 31, 2022 51,702 14,617 749,592 815,911
Equity at January 1, 2021 39,800 8,977 1,180,534 1,229,311
Other comprehensive income 0 5,178 0 5,178
Net result for the year 0 0 -1,018,149 -1,018,149
Treasury shares 0 0 -70,190 -70,190
Share-based compensation 0 0 53,504 53,504
Capital increases 3,834 0 771,211 775,045
Cost related to capital increases 0 0 -46,896 -46,896
Equity at December 31, 2021 43,634 14,155 870,014 927,803
Equity at January 1, 2020 36,055 0 1,206,618 1,242,673
Other comprehensive income 0 8,977 0 8,977
Net result for the year 0 0 -846,729 -846,729
Share-based compensation 0 0 30,485 30,485
Capital increases 3,745 0 832,866 836,611
Cost related to capital increases 0 0 -42,706 -42,706
Equity at December 31, 2020 39,800 8,977 1,180,534 1,229,311
Consolidated statements of cash flows for the years
ended December 31, 2022, 2021 and 2020
Consolidated statements of changes in shareholders' equity
at December 31, 2022, 2021 and 2020
Zealand Pharma ∞ Annual Report 2022 43
Notes overview
Notes
Consolidated financial statements
Notes overview
1 Basis of preparation
1.1 Basis of preparation, going concern assumption,
nature of the business and accounting policies 45
1.2 New accounting policies and disclosures 48
1.3 Changes in accounting policies 48
1.4 Management's judgements and estimates under IFRS 49
2 Results for the year
2.1 Revenue 50
2.2 Information about geographic areas 53
2.3 Research and development expenses 54
2.4 Selling and marketing expenses 54
2.5 General and administrative expenses 55
2.6 Staff costs 55
2.7 Other operating items 57
2.8 Discontinued operations 58
2.9 Earnings per share 60
3 Operating assets and liabilities
3.1 Intangible assets 61
3.2 Property, plant and equipment 63
3.3 Right-of-use assets and lease liabilities 65
3.4 Other investments 66
3.5 Inventories 67
3.6 Trade and other receivables 68
3.7 Other financial assets 68
3.8 Deferred revenue 69
3.9 Trade and other payables 69
4 Capital structure, financial risk and related items
4.1 Capital management 70
4.2 Financial risks 71
4.3 Financial assets and liabilities 73
4.4 Cash and cash equivalents 75
4.5 Marketable securities 75
4.6 Borrowings 76
4.7 Financial items 81
4.8 Share capital 82
4.9 Share-based instruments 82
5 Tax
5.1 Corporate tax 85
6 Other disclosures
6.1 Remuneration of the Board of Directors
and Executive Management 88
6.2 Business overview 90
6.3 Fees to auditors appointed at
the annual general meeting 90
6.4 Contingent assets and liabilities 90
6.5 Commitments 90
6.6 Related parties 90
6.7 Cash flow adjustments 91
6.8 Collaborations and technology licenses 91
6.9 Subsequent events 93
Zealand Pharma ∞ Annual Report 2022 44
1 Basis of preparation
Notes to the Consolidated financial statements
1.1 Basis of preparation, going concern
assumption, nature of the business and
accounting policies 45
1.2 New accounting policies and disclosures 48
1.3 Changes in accounting policies 48
1.4 Management's judgements and estimates
under IFRS 49
Zealand Pharma ∞ Annual Report 2022 45
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 46
Notes to the Consolidated financial statements
1.1 Basis of preparation, nature of the business and accounting policies (continued)
Zealand Pharma ∞ Annual Report 2022 47
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 48
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 49
2 Results for the year
Notes to the Consolidated financial statements
2.1 Revenue 50
2.2 Information about geographic areas 53
2.3 Research and development expenses 54
2.4 Selling and marketing expenses 54
2.5 General and administrative expenses 55
2.6 Staff costs 55
2.7 Other operating items 57
2.8 Discontinued operations 58
2.9 Earnings per share 60
Zealand Pharma ∞ Annual Report 2022 50
Notes to the Consolidated financial statements
2.1 Revenue (continued)
Zealand Pharma ∞ Annual Report 2022 51
Notes to the Consolidated financial statements
2.1 Revenue (continued)
Zealand Pharma ∞ Annual Report 2022 52
Notes to the Consolidated financial statements
. Revenue (continued)
Zealand Pharma ∞ Annual Report 2022 53
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 54
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 55
Notes to the Consolidated financial statements
2.6 Staff costs (continued)
Zealand Pharma ∞ Annual Report 2022 56
Notes to the Consolidated financial statements
. Staff costs (continued)
Zealand Pharma ∞ Annual Report 2022 57
Notes to the Consolidated financial statements
. Other operating items (continued) 2.8 Discontinued operations
Zealand Pharma ∞ Annual Report 2022 58
Notes to the Consolidated financial statements
. Discontinued operations (continued)
Zealand Pharma ∞ Annual Report 2022 59
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 60
3 Operating assets and liabilities
Notes to the Consolidated financial statements
3.1 Intangible assets 61
3.2 Property, plant and equipment 63
3.3 Right-of-use assets and lease liabilities 65
3.4 Other investments 66
3.5 Inventories 67
3.6 Trade and other receivables 68
3.7 Other financial assets 68
3.8 Deferred revenue 69
3.9 Trade and other payables 69
Zealand Pharma ∞ Annual Report 2022 61
Notes to the Consolidated financial statements
3.1 Intangible assets (continued)
Zealand Pharma ∞ Annual Report 2022 62
Notes to the Consolidated financial statements
3.1 Intangible assets (continued)
Zealand Pharma ∞ Annual Report 2022 63
Notes to the Consolidated financial statements
3.2 Property, plant and equipment (continued)
Zealand Pharma ∞ Annual Report 2022 64
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 65
Notes to the Consolidated financial statements
3.3 Right-of-use assets and lease liabilities (continued)
Zealand Pharma ∞ Annual Report 2022 66
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 67
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 68
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 69
4 Capital structure, financial risk and related items
Notes to the Consolidated financial statements
4.1 Capital management 70
4.2 Financial risks 71
4.3 Financial assets and liabilities 73
4.4 Cash and cash equivalents 75
4.5 Marketable securities 75
4.6 Borrowings 76
4.7 Financial items 81
4.8 Share capital 82
4.9 Share-based instruments 82
Zealand Pharma ∞ Annual Report 2022 70
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 71
Notes to the Consolidated financial statements
4.2 Financial risks (continued)
Zealand Pharma ∞ Annual Report 2022 72
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 73
Notes to the Consolidated financial statements
4.3 Financial assets and liabilities (continued)
Zealand Pharma ∞ Annual Report 2022 74
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 75
Notes to the Consolidated financial statements
. Marketable securities (continued) 4.6 Borrowings
Zealand Pharma ∞ Annual Report 2022 76
Notes to the Consolidated financial statements
. Borrowings (continued)
Zealand Pharma ∞ Annual Report 2022 77
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
Zealand Pharma ∞ Annual Report 2022 78
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
Zealand Pharma ∞ Annual Report 2022 79
Notes to the Consolidated financial statements
4.6 Borrowings (continued)
Zealand Pharma ∞ Annual Report 2022 80
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 81
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 82
Notes to the Consolidated financial statements
4.9 Share-based instruments (continued)
Zealand Pharma ∞ Annual Report 2022 83
Notes to the Consolidated financial statements
4.9 Share-based instruments (continued)
Zealand Pharma ∞ Annual Report 2022 84
5 Tax
Notes to the Consolidated financial statements
5.1 Corporate tax 85
Zealand Pharma ∞ Annual Report 2022 85
Notes to the Consolidated financial statements
5.1 Corporate tax (continued)
Zealand Pharma ∞ Annual Report 2022 86
6 Other disclosures
Notes to the Consolidated financial statements
6.1 Remuneration of the Board of Directors
and Executive Management 88
6.2 Business overview 90
6.3 Fees to auditors appointed at
the annual general meeting 90
6.4 Contingent assets and liabilities 90
6.5 Commitments 90
6.6 Related parties 90
6.7 Cash flow adjustments 91
6.8 Collaborations and technology licenses 91
6.9 Subsequent events 93
Zealand Pharma ∞ Annual Report 2022 87
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 88
Notes to the Consolidated financial statements
6.1 Remuneration of the Board of Directors and Executive Management (continued)
Zealand Pharma ∞ Annual Report 2022 89
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 90
Notes to the Consolidated financial statements
Zealand Pharma ∞ Annual Report 2022 91
Notes to the Consolidated financial statements
6.8 Collaborations and technology licenses (continued)
Zealand Pharma ∞ Annual Report 2022 92
Notes to the Consolidated financial statements
6.8 Collaborations and technology licenses (continued)
Zealand Pharma ∞ Annual Report 2022 93
Contents –
Parent
company
Financial statements of the parent company
Income statement 95
Statement of comprehensive income 95
Statement of financial position 96
Statement of cash flows 97
Statement of changes in equity 97
1 Significant accounting policies, and
significant accounting estimates and assessments 98
2 Revenue 98
3 Information on staff and remuneration 99
4 Financial items 101
5 Other operating items 101
6 Income tax 102
7 Discontinued operations 102
8 Intangible assets 104
9 Property, plant and equipment 105
10 Right-of-use assets and lease liabilities 106
11 Investments in subsidiaries 107
12 Inventories 107
13 Trade and other receivables 108
14 Trade and other payables 108
15 Fees to auditors appointed at
the annual general meeting 108
16 Contingent assets, liabilities and
other contractual obligations 108
17 Transactions with related parties 109
18 Adjustments for non-cash items 109
19 Change in working capital 109
20 Significant events after the balance sheet date 109
Alternative performance measures for the Group
(non-audited) 110
Zealand Pharma ∞ Annual Report 2022 94
Financial statements of the parent company
Financial statements of the parent company
Financial statements of the parent company
Income statement Statement of comprehensive income
DKK thousand Note 2022 2021
Revenue 2 141,741 87,063
Royalty expenses -37,756 -10,133
Gross margin 103,985 76,930
Research and development expenses -613,993 -573,919
Sale and marketing expenses -32,285 -74,455
General and administrative expenses -236,977 -235,093
Other operating items 5 -88,188 -2,161
Net operating expenses -971,443 -885,628
Operating result -867,458 -808,698
Dividend from subsidiaries 38,624 36,745
Financial income 4 36,710 48,898
Financial expenses 4 -9,268 -15,080
Result before tax -801,392 -738,135
Income tax (expense)/benefit 6 5,005 6,925
Net result for the year from continuing operations -796,387 -731,210
Net result for the year from discontinued operations 7 -223,575 -273,393
Net result for the year -1,019,962 -1,004,603
DKK thousand Note 2022 2021
Net result for the year -1,019,962 -1,004,603
Other comprehensive income (loss) 0 0
Comprehensive result for the year -1,019,962 -1,004,603
Zealand Pharma ∞ Annual Report 2022 95
Statement of financial position
Statement of financial position
Financial statements of the parent company
Statement of financial position at December 31
DKK thousand Note Group note 2022 2021
Assets
Non-current assets
Intangibles (Intellectual property) 8 0 35,691
Property, plant and equipment 9 46,169 80,075
Right of use assets 10 97,571 107,781
Investment in subsidiaries 11 62,228 62,228
Other investments 3.4 30,943 26,906
Trade and other receivables 13 157,039 161,193
Corporate tax receivable 6 0 1,268
Other financial assets 3.7 6,901 0
Total non-current assets 400,851 475,142
Current assets
Inventory 12 1,286 78,767
Trade and other receivables 13 134,760 83,670
Corporate tax receivable 6 5,500 5,500
Marketable securities 0 299,042
Cash and cash equivalents 710,104 377,189
Total current assets 851,650 844,168
Total assets 1,252,501 1,319,310
DKK thousand Note Group note 2022 2021
Liabilities and shareholders' equity
Share capital 4.8 51,702 43,634
Other reserves 915,849 855,388
Total Shareholders' equity 967,551 899,022
Deferred revenue 3.8 0 14,551
Trade and other payables 14 19,058 18,426
Lease liabilities 10 91,096 99,769
Total non-current liabilities 110,154 132,746
Trade and other payables 14 163,274 222,823
Lease liabilities 10 11,522 11,686
Deferred revenue 3.8 0 53,033
Total current liabilities 174,796 287,542
Total liabilities 284,950 420,288
Total shareholders' equity and liabilities 1,252,501 1,319,310
Zealand Pharma ∞ Annual Report 2022 96
Statement of changes in equityStatement of cash flows
Financial statements of the parent company
Statement of cash flows Statement of changes in equity
DKK thousand Note 2022 2021
Net result for the year -1,019,962 -1,004,603
Adjustments for non-cash items 18 13,049 97,038
Change in working capital 19 -53,712 -257,057
Financial expenses paid -999 -3,296
Income tax received/(paid) 7,698 5,500
Cash flow from/(used in) operating activities -1,053,926 -1,162,418
Proceeds from sale of marketable securities 297,559 0
Proceeds from sale of V-GO 7 64,475 0
Purchase of property, plant and equipment -8,838 -16,903
Cash flow from/(used in) investing activities 353,196 -16,903
Proceeds from issuance of shares related
to exercise of warrants 23,836 26,070
Proceeds from issuance of shares 1,060,825 748,975
Costs related to issuance of shares -47,456 -46,894
Purchase of treasury shares 0 -28,590
Leasing installments 10 -11,714 -12,260
Cash flow from/(used in) financing activities 1,025,491 687,301
(Decrease)/increase in cash and cash equivalents 324,761 -492,020
Cash and cash equivalents at January 1 377,189 860,772
Exchange rate adjustments 8,154 8,437
Cash and cash equivalents at December 31 710,104 377,189
DKK thousand
Share
capital
Other
reserves Total
Equity at January 1, 2022 43,634 855,388 899,022
Comprehensive income for the year
Net result for the year 0 -1,019,962 -1,019,962
Share-based compensation 0 51,286 51,286
Capital increases 8,068 1,076,593 1,084,661
Costs related to capital increases 0 -47,456 -47,456
Equity at December 31, 2022 51,702 915,849 967,551
Equity at January 1, 2021 39,800 1,137,289 1,177,089
Comprehensive income for the year
Net result for the year 0 -1,004,603 -1,004,603
Treasury shares 0 -70,190 -70,190
Share-based compensation 0 68,577 68,577
Capital increases 3,834 771,211 775,045
Costs related to capital increases 0 -46,896 -46,896
Equity at December 31, 2021 43,634 855,388 899,022
Zealand Pharma ∞ Annual Report 2022 97
Notes to the Financial statements of the parent company Notes
Notes to the Financial statements of the parent company
Significant accounting policies
Basis of preparation
The separate financial statement of the parent company have been prepared in accordance with Inter-
national Financial Reporting 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 the consolidated financial statements.
Note disclosures have only been included in the Parent Financial Statement where amounts differ from
the Consolidation financial statement.
Supplementary accounting policies for the Parent Company
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.
Investments in subsidiaries
Please refer to note 11 Investments in subsidiaries.
Please refer to note 2.1 in the consolidated financial statements for accounting policies for the revenue
streams.
Recognized revenue can be specified as follows for all agreements:
DKK thousand 2022 2021
Boehringer Ingelheim International GmbH 0 22,311
Alexion Pharmaceuticals Inc. 69,028 30,185
Novo Nordisk A/S 34,013 0
Protagonist Therapeutics Inc. 0 25,380
ZP SPV 3 K/S 38,700 9,187
Total revenue from collaboration agreements 141,741 87,063
Product sales - External 21,292 0
Product sales - Intercompany -10,791 168,713
Total net product sales 10,501 168,713
- Hereof related to discontinued operations 10,501 168,713
Total net product sales from continuing operations 0 0
Total revenue from continuing operations 141,741 87,063
Total revenue recognized over time 114,881 39,372
Total revenue recognized at a point in time 37,361 216,404
Please refer to note 2.1 in the consolidated financial statements for additional information regarding
revenue.
1 Significant accounting policies, and significant accounting estimates and assessments 2 Revenue
Zealand Pharma ∞ Annual Report 2022 98
Notes to the Financial statements of the parent company
DKK thousand 2022 2021
Total staff salaries can be specified as follows:
Wages and salaries 220,310 217,995
Share based payment costs 51,286 39,890
Pension schemes (defined contribution plans) 17,616 18,700
Government grants -5 -759
Other payroll and staff-related costs 5,682 132
Total 294,888 275,958
The amount is charged as:
Research and development expenses 210,971 208,790
Administrative expenses 62,627 63,881
Other operating items 14,015 0
Discontinued operations 7,275 3,287
Total 294,888 276,717
Average number of employees 197 219
For remuneration to the Board of Directors please refer to note 4.8 in the consolidated financial state-
ments and for additional information regarding staff costs.
3 Information on staff and remuneration
Zealand Pharma ∞ Annual Report 2022 99
Notes to the Financial statements of the parent company
3 Information on staff and remuneration (continued)
DKK thousand Base salary Bonus
Pension
contribution
Other
short term
benefits
Share-based
compensation
Severance
payment Total
2022
Remuneration to the Executive Management
Adam Sinding Steensberg
1
4,162 2,366 832 725 11,061 0 19,146
Henriette Wennicke
2
420 168 84 41 225 0 938
Emmanuel Dulac
3
2,626 1,575 525 122 -3,265 6,564 8,147
Matthew Donald Dallas
4
308 123 0 103 0 0 534
Total 7,516 4,232 1,441 991 8,021 6,564 28,765
Total Other Corporate Management
5
6,131 2,689 898 599 10,569 0 20,287
Total 13,647 6,921 2,339 1,590 18,590 6,564 49,652
2021
Remuneration to the Executive Management
Emmanuel Dulac
3
5,099 3,059 1,020 243 12,182 0 21,603
Adam Sinding Steensberg
1
3,056 1,193 611 286 4,829 0 9,975
Matthew Donald Dallas
4
449 184 0 38 0 0 671
Total 8,604 4,436 1,631 567 17,011 0 32,249
Total Other Corporate Management
5
3,873 1,469 387 186 4,791 0 10,706
Total 12,477 5,905 2,018 753 21,802 0 42,955
1 Former EVP, R&D and CMO Adam Sinding Steensberg was appointed CEO at March 30, 2022. 4 Former CFO Matthew Donald Dallas resigned from Zealand at August 31, 2022. He had tax obligations in Denmark, so a part of his salary was paid out in Denmark.
2 Henriette Wennicke was appointed as CFO at November 1, 2022. 5 Other Corporate Management in 2022 comprised four members (2021: three).
3 Former CEO Emmanuel Dulac resigned from Zealand at March 30, 2022.
Zealand Pharma ∞ Annual Report 2022 100
Notes to the Financial statements of the parent company
4 Financial items
DKK thousand 2022 2021
Interest income 380 6,788
Interest expenses and banking fees -6,031 -3,639
Interest income from group companies 7,682 0
Loss on receivables to group companies -2,073 0
Fair value adjustments of other investments 4,036 -8,217
Fair value adjustments of marketables securities -1,164 1,852
Currency exchange rate adjustments 24,805 40,258
Other financial epenses 0 -3,224
Financial items in total 27,442 33,818
Presentation in financial statement
Financial income 36,710 48,898
Financial expense -9,268 -15,080
Please refer to note 4.7 in the consolidated financial statements for additional information regarding
financial items.
5 Other operating items
DKK thousand 2022 2021
Restructuring costs - continuing operations -14,015 0
Insurance -37,033 0
Impairment Encycle IP rights -35,691 0
Loss on sale of fixed assets -1,449 -2,161
Total other operating items from continuing operations -88,188 -2,161
Divestment of V-GO -3,072 0
Restructuring costs - discontinued operations -30,615 0
Reversal of inventory write-off 1,284 0
Impairment of production equipment -9,730 0
Total other operating items from discontinued operations -42,133 0
Impairment of Encycle IP rights is described further in note 8. Please refer to note 2.7 in the consoli-
dated financial statements for additional information regarding other operating items.
Zealand Pharma ∞ Annual Report 2022 101
Notes to the Financial statements of the parent company
6 Income tax
DKK thousand 2022 2021
Net result for the year before tax -1,024,967 -1,011,529
Corporate tax rate in Denmark 22.0% 22.0%
Expected tax benefit -225,493 -222,536
Adjustment for non-deductible expenses 868 5,469
Adjustment for non-taxable income 0 -8,084
Adjustment for warrants 6,274 6,501
Adjustment for R&D extra deduction -20,960 -14,379
Adjustment to prior years 1,839 -5,143
Change in tax assets (not recognized) 240,963 231,247
Total income tax expense/(benefit) -5,005 -6,925
Tax on equity
Warrants shareprice development -7,362 5,588
Change in tax assets (not recognized) 7,362 -5,588
Total income tax expense (income) 0 0
Specification of unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely) 3,299,214 2,231,010
Research and development expenses 956,816 842,775
Licenses, rights and patents 71,540 41,512
Non-current assets 105,961 88,676
Liabilities -98,695 73,444
Other 102,156 30,822
Total temporary differences 4,436,991 3,308,239
Please refer to note 11 in the consolidated financial statements for additional information regarding
income tax.
7 Discontinued operations
Management's judgements and estimates
On March 30, 2022, the group announced its intension to exit the US sales activities including the V-Go
activity. The activities were successfully divested on May 29, 2022 through an asset purchase agreement
with MannKind Corporation. On September 7, 2022, the group announced the transfer of the commer-
cial rights for Zegalogue to Novo Nordisk effectually ending all efforts to commercialize the group's
products via own sales force. Management has determined that the activities to supply subsidiaries
with products and aquired services from subsidiaries related to commercialization of products via own
sales force met all the criteria for classification as a discontinued operation as of September 7, 2022.
Accordingly, the activities, including the effect of the divestment of the V-GO disposal group, has been
presented separately as a discontinued operation in the income statement.
Zealand Pharma ∞ Annual Report 2022 102
Notes to the Financial statements of the parent company
The results and the cash flow of the discontinued activities are presented below as a discontinued oper-
ations for the period ended December 31, 2022 and December 31, 2021:
DKK thousand 2022 2021
Revenue 10,546 168,713
Cost of goods sold -41,113 -121,240
Gross margin -30,567 47,473
Research and development expenses -4,035 -10,780
Sales and marketing expenses -129,827 -292,054
General and administrative expenses -17,014 -18,032
Other operating items -42,132 0
Total Operating expenses -193,008 -320,866
Result before tax -223,575 -273,393
Net result from discontinued operations -223,575 -273,393
DKK thousand 2022 2021
Cash flows from discontinued operations
Net cash inflow (outflow) from operating activities -17,717 -146,218
Net cash inflow (outflow) from investing activities 64,383 -1,585
Net cash (outflow) from financing activities 0 0
Net cash increase (decrease) generated from
the discontinued operation 46,666 -147,803
Discontinued operations (continued)
All assets and liabilities included in the V-Go disposal group was derecognized as of May 29, 2022 with
the closure of the asset purchase agreement with MannKind. As a result, no assets or liabilities are clas-
sified as held for sale in relation to the discontinued operation as of December 31, 2022.
The derecognized assets and liabilities, recognized consideration and net impact on profit and loss from
the divestment of V-Go are presented below:
DKK thousand May 29, 2022
Assets included in disposal group
Property, plant and equipment 19,380
Right-of-use assets 9
Deposits and prepayments 665
Inventories 54,085
Total assets of disposal group 74,139
Liabilities directly associated with assets included in disposal group
Lease liabilities 19
Total liabilities of disposal group 19
Net assets of disposal group 74,120
Consideration:
Cash consideration 67,828
Purchase price adjustment -3,353
Other financial assets 6,573
Total consideration 71,048
Net loss - recognized as other operating items from discontinued operations -3,072
Zealand Pharma ∞ Annual Report 2022 103
Notes to the Financial statements of the parent company
DKK thousand
Licenses
rights and
patents
Cost at January 1, 2022 41,167
Transfer to V-GO disposal group (Note 7) -5,476
Disposals -35,691
Cost at December 31, 2022 0
Depreciations and impairment at January 1, 2022 5,476
Transfer to V-GO disposal group -5,476
Impairment 35,691
Disposals -35,691
Depreciation and impairment at December 31, 2022 0
Carrying amount at December 31, 2022 0
Depreciation and impairment for the financial year has been charged as:
Other operating items 35,691
Total 35,691
Licenses, rights and patents at January 1, 2022, comprised the license to the lead product candidate
acquired with Encycle Therapeutics in October 2019. During 2022 the development program with the
lead candidate was abandoned and it was decided to move on with another product candidate from the
same patent instead. As a result the recognized asset was impaired and disposed.
DKK thousand
Licenses
rights and
patents
Cost at January 1, 2021 41,167
Additions 0
Retirements 0
Cost at December 31, 2021 41,167
Depreciations and impairment at January 1, 2021 5,476
Depreciation for the year 0
Impairment 0
Depreciation and impairment at December 31, 2021 5,476
Carrying amount at December 31, 2021 35,691
Depreciation and impairment for the financial year has been charged as:
Research and development expenses 0
Sale and marketing expenses 0
Administrative expenses 0
Total 0
8 Intangible assets
Zealand Pharma ∞ Annual Report 2022 104
Notes to the Financial statements of the parent company
DKK thousand
Plant and
machinery
Other
fixtures and
fittings
Building
improve-
ments
Assets
under con-
struction
Cost at January 1, 2022 90,778 14,349 34,897 7,343
Transfer 268 0 0 -268
Additions 2,985 72 293 6,088
Transfer to V-GO disposal group (note 7) -25,770 -268 0 -2,563
Retirements -1,433 0 0 -9,730
Cost at December 31, 2022 66,828 14,153 35,190 870
Accumulated depreciation at January 1, 2022 54,201 8,388 4,703 0
Depreciation for the year 7,901 2,749 2,843 0
Impairment for the year 742 0 0 9,730
Transfer to V-GO disposal group (note 7) -9,072 0 0 -9,730
Retirements -1,433 -150 0 0
Accumulated depreciationat December 31, 2022 52,339 10,987 7,546 0
Carrying amountat December 31, 2022 14,489 3,166 27,644 870
Depreciation for the financial year has
been charged as:
Research and development expenses 6,214 2,315 2,417 0
General and administrative expenses 0 406 426 0
Other operating items 742 0 0 0
Discontinued operations 1,687 28 0 9,730
Total 8,643 2,749 2,843 9,730
Please refer to note 3.2 in the consolidated financial statements for additional information regarding
property, plant and equipment.
9 Property, plant and equipment
DKK thousand
Plant and
machinery
Other
fixtures and
fittings
Building
improve-
ments
Assets
under con-
struction
Cost at January 1, 2021 85,877 12,706 32,448 3,022
Transfer 949 204 0 -1,153
Additions 7,118 1,444 2,449 5,893
Retirements -3,166 -5 0 -419
Cost at December 31, 2021 90,778 14,349 34,897 7,343
Accumulated depreciation at January 1, 2021 43,977 5,711 1,988 0
Depreciation for the year 11,551 2,681 2,715 0
Retirements -1,327 -4 0 0
Accumulated depreciationat December 31, 2021 54,201 8,388 4,703 0
Carrying amountat December 31, 2021 36,577 5,961 30,194 7,343
Depreciation for the financial year has
been charged as:
Discontinued operations 7,143 117 0 0
Research and development expenses 3,621 2,564 2,716 0
Administrative expenses 786 0 0 0
Total 11,550 2,681 2,716 0
Zealand Pharma ∞ Annual Report 2022 105
Notes to the Financial statements of the parent company
10 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 Buildings
Other
fixtures and
fittings
As at January 1, 2022 106,158 1,623
Additions 0 736
Transfer to V-GO disposal group (note 7) -9 0
Depreciation -10,159 -778
As at December 31, 2022 95,990 1,581
As at January 1, 2021 116,824 1,178
Additions 0 1,511
Depreciation expense -10,666 -1,066
As at December 31, 2021 106,158 1,623
Set out below are the carrying amounts of lease liabilities and the movements
during the period.
DKK thousand 2022 2021
As at January 1 111,455 119,848
Additions 689 1,418
Accretion of interest 2,207 2,449
Transfer to V-GO disposal group (note 7) -19 0
Payments -11,714 -12,260
As at December 31 102,618 111,455
Current 11,522 11,686
Non-current 91,096 99,769
The following are the amounts recognized in profit and loss:
Depreciation expense of right-of-use assets -10,937 -11,732
Interest expense on lease liabilities -2,207 -2,449
Total amount recognized in profit and loss -13,144 -14,181
Cashflow -11,714 -12,260
Total cash outflow for leases -11,714 -12,260
Zealand Pharma ∞ Annual Report 2022 106
Notes to the Financial statements of the parent company
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
recoverable amount.
DKK thousand 2022 2021
Cost at January 1 62,228 62,228
Cost at December 31 62,228 62,228
Carrying amount at December 31 62,228 62,228
DKK thousand Voting Domicile Ownership Rights
Zealand Pharma A/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 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%
12 Inventories
Inventories were comprised as follows:
DKK thousand 2022 2021
Raw materials 1,286 35,816
Work in process 0 29,498
Finished goods 0 13,453
Total 1,286 78,767
Write downs recognized on inventories were reflected in the cost of goods sold. They were comprised
as follows:
DKK thousand 2022 2021
Accumulated write downs, January 1 -12,813 -16,426
Write downs in the reporting period -30,615 -8,089
Utilization of write downs 9,887 11,702
Reversal of write downs 1,284 0
Accumulated write downs, December 31 -32,257 -12,813
Please refer to note 3.5 in the consolidated financial statements for additional information regarding
inventory.
11 Investments in subsidiaries
Zealand Pharma ∞ Annual Report 2022 107
Notes to the Financial statements of the parent company
13 Trade and other receivables
DKK thousand 2022 2021
Receivables related to collaboration agreements 56,431 13,546
Intercompany receivables 170,931 144,904
Deposits 8,900 8,920
Other receivables 1,454 1,866
Prepaid expenses 54,083 75,628
Total trade and other receivables 291,799 244,864
Non-current 157,039 161,193
Current 134,760 83,671
14 Trade and other payables
DKK thousand 2022 2021
Trade payables 51,803 54,859
Employee benefits 50,275 52,736
Accruals development projects 34,063 22,547
Treasury share payables 41,600 41,600
Intercompany payables 1,425 59,078
Other payables 3,166 10,429
Total trade and other payables 182,332 241,249
Non-current: 19,058 18,426
Current 163,274 222,823
15 Fees to auditors appointed at the annual general meeting
DKK thousand 2022 2021
Audit 4,880 3,728
Audit-related services and other assurance engagements 1,310 780
Other 389 361
Total fees 6,579 4,869
16 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.
The parent company has provided floating charge collateral covering with all assets in the company
which can be collateralized, including shares in subsidiaries, as collateral for the debt to Oberland.
Please refer to note 6.5 in the consolidated financial statements for information on commitments.
Zealand Pharma ∞ Annual Report 2022 108
Notes to the Financial statements of the parent company
Zealand Pharma A/S' related parties are the board of directors, executive management, and close
members of the family of these persons. Refer to note 6.1 in the consolidated financial statements for
remuneration of Board of Directors. Refer to note 3 in these parent company financial statements for
remuneration of the executive management team.
The parent company had the following transactions with subsidiaries:
DKK thousand 2022 2021
Revenue 38,701 9,186
Research and development expenses -26,337 50,184
Sale and marketing expenses -32,285 -74,456
Admin Expenses -69,955 -74,380
Financial items 5,609 6,744
Discontinued operations -156,638 -44,904
18 Adjustments for non-cash items
DKK thousand 2022 2021
Depreciation 70,572 30,936
Share-based compensation expenses 51,286 68,577
Deferred revenue -67,584 -30,185
Corporate tax -5,005 1,426
Financial items -27,443 6,833
Exchange rate adjustments -8,777 19,451
Total adjustments 13,049 97,038
17 Transactions with related parties 19 Change in working capital
DKK thousand 2022 2021
Increase/decrease in receivables -106,679 -184,413
Increase/decrease in inventory 23,396 -33,067
Increase/decrease in payables 29,571 -39,577
Change in working capital -53,712 -257,057
20 Significant events after the balance sheet date
Please refer to note 6.9 in the consolidated financial statements.
Zealand Pharma ∞ Annual Report 2022 109
Alternative performance measures for the Group (non-audited)
Alternative performance measures for the Group (non-audited)
Alternative performance measures 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 property,
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. There-
fore, Executive Management believes that this non-IFRS liquidity measure provides useful information to
investors in addition to the most directly comparable IFRS financial measure “Net cash flow from oper-
ating activities.” The table below shows a reconciliation of free cash flow for 2022, 2021 and 2020:
DKK thousand 2022 2021 2020
Cash (outflow)/inflow from operating activities -942,209 -1,211,971 -688,716
Less purchase of property, plant and equipment -11,710 -22,133 -25,044
Free cash flow -953,919 -1,234,104 -713,760
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 total number of shares less
weighted treasury shares.
Zealand Pharma ∞ Annual Report 2022 110
Statement
of the Board
of Directors
and Executive
Management
Executive Management
Board of Directors
Reports
Zealand Pharma ∞ Annual Report 2022 111
Independent
auditor’s report
Report on the audit of the Consolidated Financial Statements
and Parent Company Financial Statements
Opinion
Basis for opinion
Key audit matters
Zealand Pharma ∞ Annual Report 2022 112
Statement on the Management's review
Zealand Pharma ∞ Annual Report 2022 113
Management's responsibilities for the financial statements
Auditor's responsibilities for the audit of the financial state-
Report on compliance with the ESEF Regulation
Zealand Pharma ∞ Annual Report 2022 114
Zealand Pharma ∞ Annual Report 2022 115
Company
information
CVR no.: 20 04 50 78
Tel: +45 88 77 36 00
Fax: +45 88 77 38 98
Zealand Pharma U.S., Inc.
44 Farnsworth Street
4th Floor
Boston, MA 02210
Established
1998
Registered office
Auditors
EY Godkendt Revisionspartnerselskab
CVR no.: 30 70 02 28
Zealand Pharma ∞ Annual Report 2022 117
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
Design og produktion: Noted