Financial Assets and Financial Liabilities

12 Months Ended

Dec. 31, 2024

Financial Instruments [Abstract]

Financial Assets and Financial Liabilities

Financial Assets and Financial Liabilities12.1 Capital Risk Management

Our capital management objectives are designed primarily to finance our growth strategy.

Our treasury committee reviews the total amount of cash and cash equivalents on a regular basis. As part of this

review, the committee considers total cash and cash equivalents, cash outflow, currency translation differences

and refinancing activities. We monitor cash using a burn rate. The cash burn rate is defined as the average

monthly net cash flow from operating and investing activities during a financial year.



(in millions €)	December 31, 2024	December 31, 2023
Cash at banks and on hand	450.0	453.1
Security investments disclosed as cash and cash equivalents	9,311.9	11,210.6
Bank deposits	1,849.4	2,589.5
Money market funds	6,947.5	7,446.1
Reverse Repo	515.0	1,175.0
Total	9,761.9	11,663.7

In general, the aim is to protect and maximize the financial resources available for further research and

development projects.

Since December 2021, we have had an investment and asset management policy in place that contains policies

and processes for managing cash and cash equivalents. Under this policy, our investment portfolio is to be

maintained in a manner that minimizes risks to the invested capital. These risks include mainly credit risk and

concentration risk. The portfolio must provide liquidity in a timely manner to accommodate operational and

capital needs. The portfolio is managed by the Treasury department.

We are not subject to externally imposed capital requirements. Our capital management objectives were

achieved in the years ended December 31, 2024 and 2023.

12.2 Categories of Financial Instruments

Financial Assets and Liabilities at Amortized Cost and at Fair Value through OCI and Profit or Loss

Set out below is an overview of financial assets and liabilities at amortized cost and at fair value through OCI and

profit or loss, as of the dates indicated:



December 31, 2024

	Carrying amount			Fair value
(in millions €)	Current	Non- current	Total	Level 1 (Fair value)	Level 2 (Fair value)	Level 3 (Fair value)	Total
Financial assets subsequently measured at fair value through profit or loss
Foreign exchange forward contracts	11.9	—	11.9	—	11.9	—	11.9
Security investments disclosed as cash and cash equivalents	6,947.5	—	6,947.5	6,947.5	—	—	6,947.5
Other financial assets	—	39.6	39.6	—	—	39.6	39.6
Financial assets subsequently measured at fair value through OCI
Non-listed equity investments	—	1.5	1.5	—	—	1.5	1.5
Listed equity investments	—	92.7	92.7	92.7	—	—	92.7
Financial assets subsequently measured at amortized costs(1)
Security investments disclosed as other financial assets	6,536.2	1,061.1	7,597.3	—	—	—	7,597.3
Security investments disclosed as cash and cash equivalents	2,364.4	—	2,364.4	—	—	—	2,364.4
Cash at banks and on hand	450.0	—	450.0	—	—	—	450.0
Trade and other receivables	1,463.9	—	1,463.9	—	—	—	1,463.9
Reimbursement asset	473.6	40.9	514.5	—	—	—	514.5
Other financial assets	—	18.2	18.2	—	—	—	18.2
Financial liabilities subsequently measured at fair value
Foreign exchange forward contracts	16.3	—	16.3	—	16.3	—	16.3
Contingent consideration	0.9	46.9	47.8	—	—	47.8	47.8
Financial liabilities subsequently measured at amortized costs(1)
Loans and borrowings	—	—	—	—	—	—	—
Trade payables and other payables	426.7	—	426.7	—	—	—	426.7
Other financial liabilities	1,426.2	—	1,426.2	—	—	—	1,426.2
Financial liabilities subsequently not measured according to IFRS 9
Lease liabilities	39.5	214.7	254.2	—	—	—	254.2

(1)Fair values for financial assets and liabilities at amortized costs are not disclosed as the book values represent a

reasonable approximation.



December 31, 2023

	Carrying amount			Fair value
(in millions €)	Current	Non- current	Total	Level 1 (Fair value)	Level 2 (Fair value)	Level 3 (Fair value)	Total
Financial assets subsequently measured at fair value through profit or loss
Security investments disclosed as cash and cash equivalents	7,446.1	—	7,446.1	7,446.1	—	—	7,446.1
Financial assets subsequently measured at fair value through OCI
Non-listed equity investments	—	27.1	27.1	—	—	27.1	27.1
Listed equity investments	—	26.0	26.0	26.0	—	—	26.0
Financial assets subsequently measured at amortized costs(1)
Security investments disclosed as other financial assets	4,885.1	1,104.6	5,989.7	—	—	—	5,989.7
Security investments disclosed as cash and cash equivalents	3,764.5	—	3,764.5	—	—	—	3,764.5
Cash at banks and on hand	453.1	—	453.1	—	—	—	453.1
Trade and other receivables	2,155.7	—	2,155.7	—	—	—	2,155.7
Other financial assets	0.2	18.4	18.6	—	—	—	18.6
Financial liabilities subsequently measured at fair value
Foreign exchange forward contracts	0.4	—	0.4	—	0.4	—	0.4
Contingent consideration	—	38.8	38.8	—	—	38.8	38.8
Financial liabilities subsequently measured at amortized costs(1)
Loans and borrowings	—	2.3	2.3	—	—	—	2.3
Trade payables and other payables	354.0	—	354.0	—	—	—	354.0
Other financial liabilities	414.9	—	414.9	—	—	—	414.9
Financial liabilities subsequently not measured according to IFRS 9
Lease liabilities	28.1	188.6	216.7	—	—	—	216.7

(1)Fair values for financial assets and liabilities at amortized costs are not disclosed as the book values represent a

reasonable approximation.

Trade and other receivables

Trade and other receivables significantly decreased compared to the previous year and predominantly comprise

trade receivables from our COVID-19 collaboration with Pfizer as well as our direct product sales to customers in

our territory. The contractual settlement of the gross profit share has a temporal offset of more than one calendar

quarter. As Pfizer’s financial quarter for subsidiaries outside the United States differs from ours, it creates an

additional time lag between the recognition of revenues and the payment receipt. Consequently, as of

December 31, 2024, our trade receivables included, in addition to the profit share for the fourth quarter of 2024,

trade receivables which related to the gross profit share for the third quarter of 2024.

Reimbursement asset

For the year ended December 31, 2024, we recognized a reimbursement asset in the amount of €514.5 million,

derived from the settlement as described below under other financial liabilities.

In connection with the Settlement Agreement with the National Institutes of Health, or the NIH, Pfizer has agreed

to reimburse us for $364.5 million (as of December 31, 2024, amounted to €350.9 million) of the claimed

royalties paid to the NIH for 2020-2023 sales under the Settlement Agreement.

In connection with the Term Sheet and the proposed Settlement Agreement with the University of Pennsylvania,

or UPenn, Pfizer has agreed to reimburse us for up to $170.0 million (as of December 31, 2024, amounts to

€163.6 million) of the claimed royalties payable to UPenn for 2020-2023 sales in connection with the proposed

Settlement Agreement.

Other financial liabilities

During the year ended December 31, 2024, the other financial liabilities increased compared to the year ended

December 31, 2023, which is essentially related to the settlement of the contractual disputes with the NIH and

UPenn in the amount of €1,146.9 million.

On December 20, 2024, we entered into a Settlement Agreement with the NIH. Under the terms of the

Settlement Agreement, we will, among other things, pay $791.5 million (as of December 31, 2024, amounts to

€761.9 million) to the NIH.

On December 23, 2024, we entered into a binding Term Sheet with UPenn to provide terms on which we retain

license rights under certain UPenn patent rights in order to allow it to continue to pursue development and

commercialization of Licensed Products. Under the terms of the Term Sheet, we and UPenn intend to enter into

a Settlement Agreement, pursuant to which we would, among other things, pay $400.0 million (as of

December 31, 2024, amounts to €385.0 million) as royalties for calendar years 2020-2023 to UPenn as well as

$52.0 million as a contribution to a research and development investment fund to be jointly managed by us and

UPenn.

Equity investments designated at Fair Value through OCI

Financial investments in equity securities measured at fair value through other comprehensive income comprise

the following effects:



	Years ended December 31,

(in millions €)	2024	2023	2022
Net gain / (loss) on equity instruments designated at fair value through other comprehensive income	(146.6)	3.7	10.5
Total	(146.6)	3.7	10.5

During the year ended December 31, 2024, the non-listed and listed equity investments increased by

€41.1 million compared to year-end 2023 mainly due to our investment in Autolus Therapeutics plc in February

2024 and offsetting subsequent fair value changes amounting to €146.6 million during the year ended

December 31, 2024.

Measurement of fair values

The following table shows the valuation techniques used in measuring fair values for financial instruments in our

consolidated statements of financial position, as well as the significant unobservable inputs used.

12.3 Recurring Fair Values (Level 3)

The following table shows the recurring fair value measurement of the royalty assets included in other financial

assets as well as contingent considerations and the effect of the measurements on our consolidated statements

of profit or loss for the current period.



	Financial assets	Financial liabilities
(in millions €)	Other financial assets	Contingent consideration
As of January 1, 2023	—	(6.1)
Additions	—	(31.8)
Net effect on profit or loss - Finance income / (expense)
Net change in fair value	—	(0.9)
As of December 31, 2023	—	(38.8)
As of January 1, 2024	—	(38.8)
Additions	43.4	—
Disposals	—	—
Net effect on profit or loss - Finance income / (expense)
Net change in fair value	(3.8)	(9.0)
As of December 31, 2024	39.6	(47.8)

The sensitivity of the fair values of contingent considerations in fair value level 3 to the significant, unobservable,

variable input factors, with all other factors remaining constant, is shown in the following table:

Contingent consideration



Input factor	Change in assumptions	Change in fair value with increasing input factor (in millions €)	Change in fair value with decreasing input factor (in millions €)
Cash flow projections	10%	4.4	(4.4)
Discount rate	1%	(0.6)	0.6

The sensitivity of the fair values of royalty assets included in other financial assets to the significant,

unobservable, variable input factors, with all other factors remaining constant, is shown in the following table:

Royalty assets



Input factor	Change in assumptions	Change in fair value with increasing input factor (in millions €)	Change in fair value with decreasing input factor (in millions €)
Cash flow projections	10%	4.1	(4.1)
Discount rate	1%	(3.1)	3.5

The estimated fair value of non-listed equity investments would, for example, increase (decrease) if the price of

the latest financing round of the respective investment were to increase (decrease) and the overall company

value were higher (lower).

12.4 Financial Instruments Risk Management Objectives and Policies

Our financial liabilities mainly comprise obligations derived from other financial liabilities such as obligation from

transactions with licensors, trade and other payables, lease liabilities, contingent consideration, liabilities from

exchanges forward contracts. The main purpose of these financial liabilities is to enable our operations. Our

principal financial assets include mainly cash, security investments, trade receivables and reimbursement assets

that derive directly from our operations.

We are exposed to market risk, credit risk and liquidity risk. Our Management Board oversees the management

of these risks.

The treasury committee provides assurance to our Management Board that our financial risk activities are

governed by appropriate policies and procedures and that financial risks are identified, measured and managed

in accordance with our policies and risk objectives. The Management Board reviews and agrees policies for

managing each of these risks, which are summarized below.

12.5 Market Risks

Market risks address the risks that the fair value or future cash flows of a financial instrument will fluctuate due to

changes in market prices. Market risks comprise three types of risk: interest risks, foreign currency risks and

other price risks. Financial instruments affected by market risks include financial assets such as security

investments, trade and other receivables, cash and cash equivalents as well as financial liabilities such as trade

payables and other financial liabilities. We do not consider interest risks as well as other price risks as material

risks to us.

There were no material changes in the way the risks were managed and valued during the years ended

December 31, 2024 and 2023.

Foreign Currency Risks

Foreign currency risks address the risks that the fair value or future cash flows of an exposure will fluctuate

because of changes in foreign exchange rates. We are subject to currency risks, as our income and

expenditures are denominated in Euro and the U.S. dollar. As such, we are exposed to exchange rate

fluctuations between these currencies. Cash inflows denominated in U.S. dollar mainly result from generating

proceeds under our collaboration agreements. Our commercial revenues are primarily collaboration revenues

from earnings based on our partners’ gross profit, which is shared under the respective collaboration agreements

and represents payments we receive in U.S. dollar. Cash outflows dominated in U.S. dollar mainly result from

amounts spent on research and development activities and license obligations as well as expanding our global

footprint further. With the aim of preserving capital, surplus liquidity is mainly invested in domestic currency

investments as exchange rate fluctuations can reduce the value of our financial positions. We limit the effects of

the identified risks by means of a coordinated and consistently implemented risk strategy. Besides applying

natural hedging relationships where possible, foreign exchange forward contracts are concluded, as a matter of

principle, as instruments to mitigate foreign currency exchange risk associated with foreign currency-

denominated payments. However, the foreign exchange forward contracts which we entered into were not

designated as hedging instruments under IFRS.

The carrying amount of the monetary assets and liabilities denominated in U.S. dollar at the dates indicated are

as follows:



(in millions €)	December 31, 2024	December 31, 2023
Cash and cash equivalents in U.S. dollar	617.6	122.6
Monetary assets in U.S. dollar	1,484.7	1,191.9
Monetary liabilities and provisions in U.S. dollar	1,858.1	567.3
Total	244.2	747.2

The following tables demonstrate the sensitivity to a reasonable, possible change in U.S. dollar exchange rates

or U.S. dollar forward rates, with all other variables held constant. The impact on our profit before tax is due to

changes in the fair value of monetary assets and liabilities. The exposure to foreign currency changes for all

other currencies is not material.



	1 € =	Closing rate		Average rate
Currency	Country	2024	2023	2024	2023
U.S. dollar	United States	1.0389	1.1050	1.0824	1.0813



(in millions €)	Change in U.S. dollar rate	Effect on profit / (loss) before tax	Effect on pre-tax equity

2024	+5 %	(11.6)	(11.6)
2024	-5 %	12.9	12.9
2023	+5 %	(35.5)	(35.5)
2023	-5 %	39.2	39.3

12.6 Credit Risk Management

Credit risks address the risks that a counterparty will not meet its obligations under a financial instrument or

customer contract, leading to a financial loss. We are exposed to credit risks from our operating activities,

including security investments, bank deposits, reverse repos, foreign exchange transactions, trade and other

receivables and cash at banks. The maximum exposure to credit risk for the components of the consolidated

statements of financial position as of December 31, 2024, and December 31, 2023, are the carrying amounts as

illustrated in Note 12.1 and Note 12.2.

Security Investments, Bank Deposits, Reverse Repos and Cash at banks

Our financial management is dedicated predominantly to the goal of capital preservation. Thus, all our financial

activities are focused towards avoiding risks and, where they cannot be avoided, actively managing and

minimizing them. Credit risks from balances with security investments, bank deposits, reverse repos and cash at

banks are managed by our Treasury department in accordance with our investment and asset management

policy.

Our security investments are solely invested in the highest-quality liquid assets (e.g. core European sovereign,

supranational and agency bonds) and bank deposits with a maturity of more than 3 months (held at selected

banks, exclusively rated as investment grade). They do not bear any currency risks or material credit risks. The

bank deposits are held at selected banks, exclusively rated as investment grade. We limit our investment

engagements individually and track each credit risk continuously. For reverse repos, only investment-grade

counterparties qualify as our business partners and secured investments are solely collateralized by high-quality

liquid assets.

Accordingly, credit risks from these financial assets are limited. Before entering into new business relationships

and during ongoing business relationships, we evaluate our business partners with regard to their individual

default risk. Therefore, we do not presume an increased credit risk as of the balance sheet date and determine

the impairment loss based on the upcoming twelve months.

The calculated expected credit losses were not material as of December 31, 2024, and December 31, 2023.

Trade and Other Receivables

Our exposure to credit risks of trade and other receivables is primarily related to transactions with corporate

customers in the biopharma / biotech industry that operate in the United States or Germany, as well as

governments which are customers, in connection with fulfilling our commercial obligations in our territories as

defined in our contracts with customers. An analysis of the aging of receivables and the creditworthiness of

customers is used to evaluate this risk at each reporting date. We follow risk control procedures to assess the

credit quality of our customers taking into account their financial position, past experience and other factors.

As of December 31, 2024, outstanding trade and other receivables were mainly due from our collaboration

partner Pfizer. Besides well-established pharmaceutical companies and governmental institutions, our other

customers – to a smaller extent – are medical universities, other public institutions and peers in the biopharma

industry. The balances with those customers are not material. Due to this customer portfolio, the credit risk on

trade and other receivables is generally very low. We have not incurred material bad debt expense and do not

expect that this will change with respect to the trade and other receivables outstanding as of December 31,

2024.

The expected credit risk on trade and other receivables and contract assets derived from applying the simplified

approach in calculating expected credit losses was not material as of December 31, 2024, and December 31,

2023.12.7 Liquidity Risk

We plan to invest heavily in R&D as we make a strong drive to build out our global development organization

and diversify our therapeutic area footprint. Additionally, we plan to enhance capabilities through complementary

acquisitions, technologies, infrastructure and manufacturing. Our liquidity management ensures the availability of

cash and cash equivalents, short term financial instruments for operational activities and further investments

through appropriate budget planning. In addition, a sufficient level of cash and cash equivalents, which are

managed centrally, is always maintained to finance the operational activities.

We monitor liquidity risks using a liquidity planning tool.

Ultimately, the responsibility for liquidity risk management lies with our Management Board, which has

established an appropriate approach to managing short-, medium- and long-term financing and liquidity

requirements. We manage liquidity risks by holding appropriate reserves based on our COVID-19 sales, as well

as by monitoring forecasted and actual cash flows and reconciling the maturity profiles of financial assets and

liabilities. Significant reserves currently exist and were generated during the Covid-19 pandemic.

Risk Concentration

Concentrations arise when the number of counterparties is small or when a larger number of counterparties is

engaged in similar business activities, or activities in the same geographical region, or has economic features

that would cause their ability to meet contractual obligations to be affected similarly by changes in economic,

political or other conditions. Concentrations indicate the relative sensitivity of our performance to developments

affecting a particular industry. We only have a limited number of customers mainly comprising pharmaceutical

companies and governmental institutions.

The maturity profile of our financial liabilities based on contractual undiscounted payments is summarized as

follows:



Year ended December 31, 2024

(in millions €)	Less than 1 year	1 to 5 years	More than 5 years	Total
Trade and other payables	426.7	—	—	426.7
Lease liabilities	48.1	152.7	90.3	291.1
Contingent consideration	—	62.5	0.1	62.6
Foreign exchange forward contracts	16.3	—	—	16.3
Other financial liabilities	1,426.2	—	—	1,426.2
Total	1,917.3	215.2	90.4	2,222.9



Year ended December 31, 2023

(in millions €)	Less than 1 year	1 to 5 years	More than 5 years	Total
Loans and borrowings	—	2.3	—	2.3
Trade and other payables	354.0	—	—	354.0
Lease liabilities	34.1	136.6	73.7	244.4
Contingent consideration	—	57.5	0.3	57.8
Foreign exchange forward contracts	0.4	—	—	0.4
Other financial liabilities	414.9	—	—	414.9
Total	803.4	196.4	74.0	1,073.8

12.8 Changes in Liabilities Arising from Financing Activities



Year ended December 31, 2024

(in millions €)	January 1, 2024	Cash flows	New leases and disposals	Reclassifi- cation	Other	December 31, 2024
Current obligations under lease contracts	28.1	(43.6)	19.4	35.6	—	39.5
Non-current obligations under lease contracts	188.6	—	56.0	(35.6)	5.7	214.7
Loans and borrowings	2.3	(2.3)	—	—	—	—
Total	219.0	(45.9)	75.4	—	5.7	254.2



Year ended December 31, 2023

(in millions €)	January 1, 2023	Cash flows	New leases and disposals	Reclassifi- cation	Other	December 31, 2023
Current obligations under lease contracts	36.0	(40.3)	(0.6)	34.1	(1.1)	28.1
Non-current obligations under lease contracts	174.1	—	51.1	(34.1)	(2.5)	188.6
Loans and borrowings	2.1	0.2	—	—	—	2.3
Total	212.2	(40.1)	50.5	—	(3.6)	219.0