Financial Risk Management

12 Months Ended

Dec. 31, 2025

Financial risk management [Abstract]

24. Financial Risk Management

The financial risks are managed centrally. The Company coordinates the access to national and international financial

markets and considers and manages continuously the financial risks concerning the Company’s activities. These relate to

credit risk, liquidity risk, interest rate risk and currency risk. The Company does not buy or trade financial instruments

for speculative purposes.

Categories of financial assets and liabilities:


	Measurement category	Carrying amount on December 31
(in thousands of $)		2025		2024		2023
Financial assets - non-current	FVTPL	$	37,130	$	25,549	$	21,715
Financial assets - non-current	FVTOCI		10,022		14,880		15,528
Research and development incentive receivables - non-current	Amortized cost		86,212		94,854		76,706
Restricted assets - non-current	Amortized cost		4,838		1,964		2,419
Trade and other receivables	Amortized cost		1,646,692		904,471		496,687
Financial assets - current	Amortized cost		948,750		1,878,890		1,131,000
Research and development incentive receivables - current	Amortized cost		10,367		4,625		2,584
Cash and bank balances	Amortized cost		5,176		5,527		20,744
Cash equivalents	FVTPL		2,541,112		1,394,409		1,678,100
Cash equivalents	Amortized cost		945,001		100,000		350,000
Trade and other payables	Amortized cost		1,267,144		649,993		414,013

The carrying amounts of research and development incentive receivables, financial assets, trade and other receivables,

and trade and other payables are considered to be the same as their fair values, due to their short-term nature.

Financial assets held at fair value through profit or loss or OCI

Financial assets held at fair value through profit or loss or OCI consisted of equity instruments of listed and non-listed

companies and money market funds.

The Company has no restrictions on the sale of these equity instruments and the assets are not pledged under any of its

liabilities. These instruments are classified as financial assets held at fair value through profit or loss or OCI which

qualify for:

•Level 1 fair value measurement with respect to current financial assets and cash equivalents based upon the closing

price (net asset value) of such securities at each reporting date.

•Level 3 fair value measurement with respect to non-current financial assets.

The market price of these financial instruments might face fluctuations and might be affected by a variety of factors,

such as the global economic situation. Current financial assets and cash equivalents include collective investment funds

denominated in € and $ of which the underlying investments include bonds and other international debt securities. Based

on the weighted average maturity of the underlying instruments, amongst others, these investments are either classified

as current financial assets or cash equivalents.

The maximum exposure to credit risk is the carrying amount at reporting date.

The Company carried the following assets at fair value on December 31, 2025, 2024 and 2023 respectively:


	As of December 31, 2025
(in thousands of $)		Level 1		Level 2		Level 3
Non-current financial assets	$	10,022	$	—	$	37,130
Cash and cash equivalents		2,541,112		—		—
Assets carried at fair value	$	2,551,134	$	—	$	37,130


	As of December 31, 2024
(in thousands of $)		Level 1		Level 2		Level 3
Non-current financial assets	$	14,880	$	—	$	25,549
Cash and cash equivalents		1,394,409		—		—
Assets carried at fair value	$	1,409,289	$	—	$	25,549


	As of December 31, 2023
(in thousands of $)		Level 1		Level 2		Level 3
Non-current financial assets	$	15,528	$	—	$	21,715
Cash and cash equivalents		1,678,100		—		—
Assets carried at fair value	$	1,693,628	$	—	$	21,715

During the disclosed calendar year, no transfers occurred between the applicable categories.

Non-current financial assets – Level 1

The Company owns shares of Zai Lab due to its license and collaboration agreement. The fair value shares of the equity

instrument at period-end is determined by reference to the closing price of such securities at each reporting date

(classified as level 1 in the fair value hierarchy), resulting in a change in fair value. The Company made the irrevocable

election to recognize subsequent changes in fair value through OCI.

Non-current financial assets – Level 3

The Company has a profit share in AgomAb Therapeutics NV which is a non-publicly listed company valued using

certain unobservable inputs and assumptions.

The changes in the value of these investments are detailed in ‘‘Note 6 — Other Non-Current Assets”.

Capital risk

The Company manages its capital to ensure that it will be able to continue as a going concern. The capital structure of

the Company consists of equity attributed to the holders of equity instruments of the Company, such as capital, reserves

and accumulated losses as mentioned in the consolidated statements of changes in equity. The Company makes the

necessary adjustments in light of changes in the economic circumstances, risks associated to the different assets and the

projected cash needs of the current and projected research activities. On December 31, 2025, cash and cash equivalents

amounted to $3.5 billion current financial assets amounted to $0.9 billion and total capital amounted to $7.3 billion. The

current cash situation and the anticipated cash generation and usage are the most important parameters in assessing the

capital structure. The Company’s objective is to maintain the capital structure at a level to be able to finance its activities

for at least twelve months. Cash income from operations is taken into account and, if needed and possible, the Company

can enter into financing agreements or issue new shares.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the

Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient

collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Concentrations in credit

risk are determined based on an analysis of counterparties and their importance on the overall outstanding contractual

obligations at year-end.

The Company's commercial revenue are concentrated as discussed in “Note 16 — Segment Reporting”, on a limited

number of U.S. customers with high quality creditworthiness. The Company sets customer specific credit limits in order

to reduce credit risk from commercial payors.

The Company applied the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime

expected loss allowance for trade receivables. To measure the expected credit losses, receivables have been grouped

based on credit risk characteristics and the days past due. The provision for expected credit losses was not significant

given that there have been no credit losses over the last three years and the high quality nature of the Company’s

customers.

Cash and cash equivalents and current financial assets are invested with several highly reputable banks and financial

institutions. The main purpose of the Cash Investment Policy is to preserve the available cash and to ensure sufficient

short-term liquidity at all times. Therefore, the Company holds its cash and cash equivalents, in addition to current

financial assets mainly with banks which are independently rated A- or higher. Amounts of cash held with banks rated

lower than A- are limited to insignificant balances. The maximum amount and tenor of term accounts depends on the

rating of the counterparty bank. The Company also holds cash equivalents in the form of money market funds with a low

historical volatility. These money market funds are highly liquid investments and can be readily convertible into a

known amount of cash. The company has adopted a policy whereby money market funds must have a minimum rating of

A, and whereby 95% of its money market funds should have a AAA-rating.

Liquidity risk

The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual

cash flows, and by matching the maturity profile of financial assets and liabilities.

The Company’s main sources of cash are the sale of commercial product and exercise of stock options. This cash is

invested in savings accounts, term accounts and money market funds. These money market funds represent the majority

of the Company’s available sources of liquidity. Since all of these are immediately tradable and convertible in cash they

have an important mitigating effect on any short-term liquidity risk.

As of December 31, 2025, the Company had lines of credit totaling $29 million with financial institutions mainly

relating to leasing guarantees.

Interest rate risk

The only variable interest-bearing financial instruments are cash and cash equivalents and current financial assets.

Changes in interest rates may cause variations in interest income resulting from short-term interest-bearing assets. Lower

short-term interests may have a negative impact on the interest income of the Company.

For the year ended December 31, 2025, if applicable interest rates would increase/decrease by 50 basis points, this would

have a positive/negative impact of $22 million (compared to $8 million for the year ended December 31, 2024 and $8

million for the year ended December 31, 2023if applicable interest rates would increase/decrease by 25 basis points).

Foreign exchange risk

The Company undertakes transactions denominated in foreign currencies, causing exposures to exchange rate

fluctuations. The Company is mainly exposed to the Euro, Japanese yen, British pound and Swiss franc. To limit this

risk, the Company attempts to align incoming and outgoing cash flows in currencies other than USD. The Company

further limits its non-USD liquidity holdings when possible.

The net exposure to exchange differences of the monetary assets (being from cash and cash equivalents, in addition to

current financial assets) of the Company at the end of the reporting period are as follows:


	As of December 31,
(in thousands of $)	2025	2024	2023
EUR	155,757	756,676	923,773
Other currencies	1,258	1,679	8,708

On December 31, 2025, if the EUR would have strengthened/weakened versus the USD by 10%, this would have had a

negative/positive impact of $16 million, compared to $76 million and $92 million on December 31, 2024 and

December 31, 2023, respectively. If other currencies would have strengthen or weakened against the USD by 10%, this

would have had no significant impact in all reported periods.