0001193125-21-076349 | 20-F | XBRL Viewer

General Information

Note 1—General Information

Ascendis Pharma A/S, together with its subsidiaries, is applying its innovative TransCon technologies to build a leading, fully integrated biopharmaceutical company. Ascendis Pharma A/S was incorporated in 2006 and is headquartered in Hellerup, Denmark. Unless the context otherwise requires, references to the “Company,” “we,” “us,” and “our”, refer to Ascendis Pharma A/S and its subsidiaries.

The address of the Company’s registered office is Tuborg Boulevard 12,

DK-2900

Hellerup, Denmark. The Company’s registration number in Denmark is 29918791.

On February 2, 2015, the Company completed an initial public offering, or IPO, which resulted in the listing of American Depositary Shares, or ADSs, representing the Company’s ordinary shares, under the symbol “ASND” in the United States on The Nasdaq Global Select Market.

The Company’s Board of Directors approved these consolidated financial statements on March 10, 2021.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Basis of Preparation

The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or IASB, and as adopted by the European Union, or EU.

The accounting policies applied when preparing the consolidated financial statements are described in detail below and are applied for all entities. Significant accounting judgements and estimates used when exercising the accounting policies are described in Note 3.

These consolidated financial statements have been prepared under the historical cost convention, apart from certain financial instruments that are measured at fair value at initial recognition.

Changes in Accounting Policies and Disclosures

Several amendments to and interpretations of IFRS applied for the first time in 2020, which has not had an impact on the accounting policies applied by the Company. Thus, the accounting policies applied when preparing these consolidated financial statements have been applied consistently to all the periods presented, unless otherwise stated.

Going Concern

The Company’s Board of Directors has, at the time of approving the consolidated financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, the Company continues to adopt the going concern basis of accounting in preparing the consolidated financial statements.

Basis of Consolidation

The consolidated financial statements include the parent company, Ascendis Pharma A/S, and all enterprises over which the parent company has control. Control of an enterprise exists when the Company has exposure, or rights to, variable returns from its involvement with the enterprise and has the ability to control those returns through its power over the enterprise. Accordingly, the consolidated financial statements include Ascendis Pharma A/S and the subsidiaries listed in Note 23.

Consolidation Principles

The consolidated financial statements comprise the parent company and its subsidiaries at December 31, 2020. Subsidiaries, which are enterprises the Company control at the reporting date, are fully consolidated from the date upon which control is transferred to the Company. They are deconsolidated from the date control ceases.

Control over an enterprise is reassessed if facts and circumstances indicate that there are changes to one or more of the three elements of control, respectively:

•

The contractual arrangement(s) with the other vote holders of the enterprise;

•

The Company’s voting rights and potential voting rights; and

•

Rights arising from other contractual arrangements.

All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between group enterprises are eliminated in full on consolidation.

Subsidiaries and associates apply accounting policies in line with the Company’s accounting policies. When necessary, adjustments are made to bring the entities’ accounting policies in line with those of the Company.

Investment in Associates

An associate is an entity over which the Company has significant influence over financial and operational decisions but without having control or joint control. The Company’s associate is accounted for using the equity method. Under the equity method, the associate is initially recognized at cost. Thereafter, the carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate since the acquisition or establishment date.

The consolidated statements of profit or loss include the Company’s share of result after tax and other interests of the associate. Transactions between the associate and the Company are eliminated proportionally according to the Company’s interest in the associate. Unrealized gains and losses resulting from transactions between the Company and its associate is eliminated to the extent of the Company’s interest in the associate.

On each reporting date, the Company determines whether there is objective evidence that the associate is impaired. If there is such evidence, the amount of impairment is calculated as the difference between the recoverable amount of the associate and its carrying value. Any impairment loss is recognized within share of profit/(loss) of associate in the consolidated statements of profit or loss.

Foreign Currency

Functional and Presentation Currency

Items included in the consolidated financial statements are measured using the functional currency of each Group entity. Functional currency is the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Euros, or EUR, which is also the functional currency of the parent company.

Translation of Transactions and Balances

On initial recognition, transactions in currencies other than the individual entity’s functional currency are translated applying the exchange rate in effect at the date of the transaction. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the reporting date are translated using the exchange rate in effect at the reporting date.

Exchange rate differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the reporting date, are recognized in profit or loss as finance income or finance expenses. Property, plant and equipment, intangible assets and other

non-monetary

items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions.

Currency Translation of Group Enterprises

When subsidiaries or associates present their financial statements in a functional currency other than EUR, their statements of profit or loss are translated at average exchange rates. Balance sheet items are translated using the exchange rates at the reporting date. Exchange rate differences arising from translation of foreign entities’ balance sheet items at the beginning of the year to the reporting date exchange rates as well as from translation of statements of profit or loss from average rates to the exchange rates at the reporting date are recognized in other comprehensive income. Similarly, exchange rate differences arising from changes that have been made directly in a foreign subsidiary’s equity are recognized in other comprehensive income.

Business Combinations

Newly acquired or newly established subsidiaries are recognized in the consolidated financial statements from the time of acquiring or establishing such enterprises. Time of acquisition is the date on which the Company obtains control over the enterprise.

When acquiring new enterprises over which the Company obtains control, the acquisition method is applied. Under this method, assets, liabilities and contingent liabilities of these enterprises are identified and measured at fair value as of the acquisition date. Restructuring costs are only recognized in the

pre-acquisition

balance sheet if they constitute a liability of the acquired enterprise. Allowance is made for the tax effect of the adjustments made.

The acquisition price for an enterprise consists of the fair value of the consideration paid for the acquired enterprise. Costs that are attributable to the acquisition of the enterprise are recognized in the consolidated statement of profit or loss when incurred.

The excess of the consideration transferred, the amount of any

non-controlling

interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired are all recorded as goodwill.

Goodwill is subject to an annual impairment test. Impairment is calculated as the difference between the recoverable amount of the cash-generating unit that the goodwill relates to, and its carrying amount. Any impairment loss is recognized in the consolidated statement of profit or loss in a separate line item.

Revenue

Revenue is primarily generated from collaboration and license agreements. Furthermore, revenue is generated from development services under development and commercialization agreements, including delivery of clinical supply material. Additionally, revenue is generated from feasibility studies for potential partners to evaluate if TransCon technologies enable certain advantages for their product candidates of interest. Such feasibility studies are often structured as short-term agreements with fixed fees for the work that the Company performs.

When contracts with customers are entered into, the goods and/or services promised in the contract are assessed to identify distinct performance obligations. A promise in the agreement is considered a distinct performance obligation if both of the following criteria are met:

•

the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and

•

the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

Under collaboration, license, and other agreements that contain multiple promises to the customer, the promises are identified and accounted for as separate performance obligations if these are distinct. If promises are not distinct, those goods or services are combined with other promised goods or services until a bundle of goods or services that is distinct is identified.

The transaction price in the contract is measured at fair value and reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In the transaction price, variable consideration, including milestone payments, is only included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation according to their stand-alone selling prices and is recognized when control of the goods or services are transferred to the customer, either over time or at a point in time, depending on the specific terms and conditions in the contracts.

Revenue is stated net of value added tax and duties collected on behalf of a third party, and discounts. Usually, the payment terms are within one to two months. No payment terms exceed twelve months, and thus transaction prices are not adjusted for financing components.

Research and Development Costs

Research and development costs consist primarily of manufacturing costs, preclinical and clinical study costs performed by Clinical Research Organizations, or CROs, and Contract Manufacturing Organizations, or CMOs, salaries and other personnel costs including pension and share-based payment, the cost of facilities, the cost of obtaining and maintaining the Company’s intellectual property portfolio, and depreciation of

non-current

assets used in research and development activities.

Research costs comprise costs incurred at the early stages of the drug development cycle from the initial drug discovery and include a variety of preclinical research activities in order to assess potential drug candidates in

non-human

subjects, prior to filing an Investigational New Drug Application, or IND, or equivalent. Research costs are recognized in the consolidated statement of profit or loss when incurred.

Development activities relate to activities following an IND or equivalent, and typically involves a single product candidate undergoing a series of studies to illustrate its safety profile and effect on human beings prior to obtaining the necessary approval from the appropriate authorities. Development activities comprise drug candidates undergoing clinical trials starting in phase I (first time drug is administrated in a small group of humans), and further into Phase II and III, which include administration of drugs in large patient groups. Following, and depending on clinical trial results, a Biologic License Application, or BLA, may be submitted to the authorities, to apply for marketing approval, which, with a positive outcome will permit the Company to market and sell the drug products. Long-term extension trials may be ongoing following submission of a BLA.

A substantial part of development activities is performed by CROs and CMOs, usually through long-term contractual collaborations, and may comprise a variety of service and deliveries, where payment terms not necessarily reflect the stage of completion. In order to recognize development costs on an accrual basis, the Company allocates contractual consideration to project stages, and recognizes development cost according to

pre-defined

attributes and measurement principles (i.e., number of patients enrolled, achieving project milestones, etc.).

Development costs also include manufacturing costs related to validation batches, or process performance qualification batches on development product candidates, and write-downs on inventories manufactured for late-stage development product candidates prior to marketing approval being obtained

(pre-launch

inventories).

Due to the risk related to the development of pharmaceutical products, the Company cannot estimate the future economic benefits associated with individual development activities with sufficient certainty until the development activities have been finalized and the necessary market approval of the final product has been obtained. As a consequence, all development costs are recognized in the consolidated statement of profit or loss when incurred.

Selling, General and Administrative Expenses

Selling, general and administrative expenses comprise salaries and other personnel costs including pension and share-based payment, office supplies, cost of facilities, and depreciation of

non-current

assets related to general, administrative activities, and

pre-commercial

activities. Selling, general and administrative expenses are recognized in the consolidated statement of profit or loss in the period to which they relate.

Share-based Incentive Programs

Share-based incentive programs under which board members, employees and select external consultants have the option to subscribe shares in Ascendis Pharma A/S (equity-settled share-based payment arrangements) are measured at the equity instrument’s fair value at the grant date. The cost of equity-settled transactions is determined by the fair value at the date of grant using the Black-Scholes valuation model. The cost is recognized together with a corresponding increase in equity over the period in which the performance and/or service conditions are fulfilled (i.e., the vesting period). The fair value determined at the grant date of the equity-settled share-based payment is expensed on a straight-line basis over the vesting period for each tranche, based on the best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for grants that do not ultimately vest. Where an equity-settled grant is cancelled, it is treated as if it vested on the date of the cancellation, and any expense not yet recognized for the grant is recognized immediately.

Where the terms and conditions for an equity-settled grant is modified, we recognize as minimum the services measured at the grant date fair value over the vesting period. Additionally, we

re-measure

the unvested grants at the date of modification and recognize any increase in the total fair value over the vesting period. If a new grant is substituted for the cancelled grant and designated as a replacement grant on the date that it is granted, the cancelled and new grants are treated as if they were a modification of the original grant.

Any social security contributions payable in connection with the grant or exercise of the warrants are recognized as expenses when incurred. The assumptions used for estimating the fair value of share-based payment transactions are disclosed in Note 7.

Finance Income and Expenses

Finance income and expenses comprise interest income and expenses, amortization of securities, and realized and unrealized exchange rate gains and losses on transactions denominated in foreign currencies.

Interest income and interest expenses are stated on an accrual basis using the principal and the effective interest rate. The effective interest rate is the discount rate that is used to discount expected future cash payments or receipts through the expected life of the financial asset or financial liability to the amortized cost (the carrying amount), of such asset or liability.

Income Taxes

Tax for the year, which consists of current tax for the year and changes in deferred tax, is recognized in the consolidated statement of profit or loss by the portion attributable to the profit or loss for the year, and recognized directly in equity or other comprehensive income by the portion attributable to entries directly in equity and in other comprehensive income. The current tax payable or receivable is recognized in the consolidated statement of financial position, stated as tax computed on this year’s taxable income, adjusted for prepaid tax.

When computing the current tax for the year, the tax rates and tax rules enacted or substantially enacted at the reporting date are used. Current tax payable is based on taxable profit or loss for the year. Taxable profit or loss differs from net profit or loss as reported in the consolidated statements of profit or loss because it excludes items of income or expense that are taxable or deductible in prior or future years. In addition, taxable profit or loss excludes items that are never taxable or deductible.

Deferred tax is recognized according to the balance sheet liability method of all temporary differences between carrying amounts and

tax-based

values of assets and liabilities, apart from deferred tax on all temporary differences occurring on initial recognition of goodwill or on initial recognition of a transaction which is not a business combination, and for which the temporary difference found at the time of initial recognition neither affects profit or loss nor taxable income.

Deferred tax liabilities are recognized on all temporary differences related to investments in subsidiaries and/or associates, unless the Company is able to control when the deferred tax is realized, and it is probable that the deferred tax will not become due and payable as current tax in the foreseeable future.

Deferred tax assets, including the tax base of tax loss carry forwards, are recognized in the statement of financial position at their estimated realizable value, either as a

set-off

against deferred tax liabilities or as net tax assets for offset against future positive taxable income. Deferred tax assets are only offset against deferred tax liabilities if the entity has a legally enforceable right to set off, and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax jurisdiction. Deferred tax is calculated based on the planned use of each asset and the settlement of each liability, respectively.

Deferred tax is measured using the tax rates and tax rules in the relevant countries that, based on acts in force or acts in reality in force at the reporting date are expected to apply when the deferred tax is expected to crystallize as current tax. Changes in deferred tax resulting from changed tax rates or tax rules are recognized in the consolidated statement of profit or loss unless the deferred tax is attributable to transactions previously recognized directly in equity or other comprehensive income. In the latter case, such changes are also recognized in equity or other comprehensive income. On every reporting date, it is assessed whether sufficient taxable income is likely to arise in the future for the deferred tax asset to be utilized.

Intangible assets

Goodwill

Goodwill acquired in a business combination is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for

non-controlling

interests over the net identifiable assets acquired and liabilities assumed.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized but is subject to impairment testing at least on a yearly basis. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or group of cash-generating units, that are expected to benefit from the synergies of the combination. Each cash-generating unit or group of cash-generating units to which goodwill is allocated represent the lowest level within the Company at which the goodwill is monitored for internal management purposes.

Software

Software assets comprise administrative applications and serve general purposes to support operations.

Development costs that are directly attributable to the design, customization, implementation, and testing of identifiable and unique software assets controlled by the Company are recognized as intangible assets from the time that; (1) the software asset is clearly defined and identifiable; (2) technological feasibility, adequate resources to complete, and an internal use of the software asset can be demonstrated; (3) the expenditure attributable to the software asset can be measured reliably; and (4) the Company has the intention to use the software asset internally.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when the development is complete, and the asset is available for use. Software assets are amortized over the period of expected future benefits. Amortization is recognized in research and development costs, and selling, general and administrative expenses, as appropriate. During the period of development, the asset is tested for impairment, at least annually, or if there are indications that a software asset is impaired. Expenditures, that do not meet the criteria above are recognized as an expense as incurred. The Company does not capitalize software with no alternative use, or where economic benefit depends on marketing approvals of drug candidates and where marketing approvals have not been obtained.

Property, Plant and Equipment

Property, plant and equipment primarily comprises leasehold improvements, office facilities, and process equipment and tools which are located at CMOs.

Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be used in operation. Property, plant and equipment also includes

right-of-use

assets. Please refer to the section “Leases”. Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the assets will flow to the Company and the costs of the items can be measured reliably. All repair and maintenance costs are charged to the consolidated statement of profit or loss during the financial periods in which they are incurred.

Plant and equipment acquired for research and development activities with alternative use, which is expected to be used for more than one year, is capitalized and depreciated over the estimated useful life as research and development costs. Plant and equipment acquired for research and development activities, which has no alternative use, is recognized as research and development costs when incurred.

If the acquisition or use of the asset involves an obligation to incur costs of decommissioning or restoration of the asset, the estimated related costs are recognized as a provision and as part of the relevant asset’s cost, respectively.

The basis for depreciation is cost less estimated residual value. The residual value is the estimated amount that would be earned if selling the asset today net of selling costs, assuming that the asset is of an age and a condition that is expected after the end of its useful life. Cost of a combined asset is divided into smaller components, with such significant components depreciated individually if their useful lives vary. Depreciation commences when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in the manner intended.

Depreciation is calculated on a straight-line basis, based on an asset’s expected useful life, being within the following ranges:


Process plant and machinery			5 - 10 years
Other fixtures and fittings, tools and equipment			3 - 5 years
Leasehold improvements			3 - 11 years
Right-of-use assets			2 - 11 years

Depreciation methods, useful lives and residual amounts are reassessed at least annually.

Property, plant and equipment is written down to the lower of recoverable amount and carrying amount, as described in the “Impairment” section below. Depreciation and impairment losses of property, plant and equipment is recognized in the consolidated statement of profit or loss as research and development costs or as selling, general and administrative expenses, as appropriate.

Gains and losses on disposal of property, plant and equipment are recognized in the consolidated statement of profit or loss at its net proceeds, as either other income or other expenses, as appropriate.

Impairment

The recoverable amount of goodwill and development projects in progress (software assets) is estimated annually irrespective of any recorded indications of impairment. Property, plant and equipment and finite-lived intangible assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows, or cash-generating units, which for goodwill represent the lowest level within the enterprise at which the goodwill is monitored for internal management purposes. Prior impairments of

non-financial

assets, other than goodwill, are reviewed for possible reversal at each reporting date.

Receivables

Receivables comprise trade receivables and other receivables, which are separately presented in the consolidated statements of financial position.

Trade receivables are classified as financial assets at amortized cost, as these are held to collect contractual cash flows and thus give rise to cash flows representing solely payments of principal and interest. Trade receivables are initially recognized at their transaction price and subsequently measured at amortized cost. Other receivables related to VAT, other indirect tax and income tax are measured at cost less impairment. Deposits are initially measured at their fair value and subsequently measured at amortized cost. The carrying amounts of receivables usually equals their nominal value less provision for impairments.

Prepayments

Prepayments comprise advance payments relating to a future financial period. Prepayments are measured at cost.

Marketable Securities

Marketable securities may comprise government bonds, treasury bills, commercial papers, and other securities traded on established markets. In addition, the Company’s investment policy only allows investments in marketable securities having investment grade credit-ratings, as assigned by international credit-rating agencies. Marketable securities are primarily held to mitigate concentration of credit risks on cash deposits and to preserve capital. In addition, liquidity risk is managed by maintaining adequate cash reserves and banking facilities, and by matching the maturity profiles of financial assets (including marketable securities), with cash-forecasts (including payment profiles on liabilities).

At initial recognition (trade-date), contractual terms of individual securities are analyzed to determine whether these give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding. This assessment is referred to as the SPPI-test. All marketable securities held at the reporting date, have passed the SPPI-test.

Marketable securities are initially recognized at fair value at trade-date, and subsequently measured at amortized cost under the effective interest method. Interest income is recognized as finance income in the consolidated statement of profit or loss. Marketable securities are subject to impairment tests to accommodate expected credit loss. Gains and losses are recognized as finance income or expenses in the consolidated statement of profit or loss when the specific security or portfolio of securities is derecognized, modified or impaired.

Marketable securities, having maturity profiles of three months or less after the date of acquisition are presented as cash equivalents in the consolidated statements of financial position, where securities having maturities of more than three months after the date of acquisition are presented separately as marketable securities as current (i.e., those maturing within twelve months after the reporting date) or

non-current

assets, as appropriate.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and

on-demand

deposits with financial institutions, and highly liquid marketable securities with a maturity of three months or less after the date of acquisition (trade-date). Cash and cash equivalents are measured at amortized cost.

Allowance for Expected Credit Losses on Financial Assets

Financial assets comprise receivables (excluding receivables relating to VAT, other indirect tax and income tax), marketable securities and cash and cash equivalents. Provision for bad debts is determined on the basis of a forward-looking Expected Credit Loss, or ECL model. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and the cash flows expected to be received, discounted by an approximation of the original effective interest rate.

For receivables, we apply a simplified approach in calculating ECLs. Therefore, we do not track changes in credit risk, but instead we assess a loss allowance based on lifetime ECL at each reporting date. Lifetime ECLs are assessed on historical credit loss experience, adjusted for forward-looking factors specific to the counterparts and the economic environment.

For cash, cash equivalents and marketable securities, ECLs are assessed for credit losses that result from default events that are possible within the next twelve months, or 12-month ECL. Marketable securities have investment grade ratings, and thus, the risk from probability of default is low. Accordingly, at initial recognition,

12-month

ECL is the same as lifetime ECL. Credit risk is continuously tracked and monitored in order to identify significant deterioration. For those credit exposures for which there ha

been a significant increase in credit risk since initial recognition, an allowance is recognized for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default.

Shareholders’ Equity

The share capital comprises the nominal amount of the parent company’s ordinary shares, each at a nominal value of DKK 1, or approximately €0.13. All shares are fully paid.

Share premium reserve comprises the amounts received, attributable to shareholders’ equity, in excess of the nominal amount of the shares issued at the parent company’s capital increases, reduced by any expenses directly attributable to the capital increases.

Foreign currency translation reserve includes exchange rate adjustments relating to the translation of the results and net assets of foreign operations from their functional currencies to the presentation currency. The accumulated reserve of a foreign operation is recognized in the consolidated statement of profit or loss at the time the Company loses control, and thus cease to consolidate such foreign operation. The foreign currency translation reserve is an unrestricted reserve that is available to be distributed as dividends to the Company’s shareholders.

Reserve for share-based payment represents the corresponding entries to the share-based payment recognized in the consolidated statement of profit or loss, arising from warrant programs. The share-based payments reserve is an unrestricted reserve that is available to be distributed as dividends to the Company’s shareholders.

Retained earnings or accumulated deficit represents the accumulated profits or losses from the Company’s operations. A positive reserve is available to be distributed as dividends to the Company’s shareholders.

Leases

On January

1, 2019, the Company adopted IFRS 16, “Leases”, or IFRS 16. Thus, until December 31, 2018, leases of property, plant and equipment, where the Company had substantially all of the risks and rewards of ownership, were classified as finance leases. Other leases were classified as operating leases.

Since

no finance leases were in place at December 31, 2018 or December 31, 2017, all leases were classified as operating leases, and accordingly, all lease payments were recognized on a straight-line basis in the consolidated statement of profit or loss over the lease term. IFRS 16 was implemented by applying the modified retrospective approach. Accordingly, no comparative information was restated. The lease liability and corresponding

right-of-use

assets was measured at the present value of the remaining lease payments, discounted using an estimated incremental borrowing rate at January 1, 2019.

From January 1, 2019, contracts are assessed at inception date to identify whether they contain a lease, i.e., if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Except for short-term leases and leases of low value assets, the Company applies a single recognition and measurement approach as described below. For short-term leases and leases of low value assets, lease payments are recognized on a straight-line basis over the lease term in the consolidated statement of profit or loss as research and development costs or as selling, general and administrative expenses, as appropriate. The Company does not act as a lessor, neither does it act as a

sub-lessor.

Right-of-use

Assets

Right-of-use

assets are recognized at the lease commencement date, defined as the date the underlying asset is available for use.

Right-of-use

assets are measured at cost, less any accumulated depreciations and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of

right-of-use

assets include the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any incentives received. In addition,

right-of-use

assets also include an estimate of costs to be incurred by the Company in dismantling or restoring the underlying asset to the condition required by the terms and condition of the lease.

Right-of-use

assets are presented as part of property, plant and equipment, and depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

Lease Liabilities

At the lease commencement date, lease liabilities are recognized and measured at the present value of fixed lease payments and variable lease payments that depend on an index or a rate, whereas variable lease payments and payments related to

non-lease

components are excluded. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the consolidated statement of profit or loss when incurred.

When interest rates implicit in the lease contracts are not readily available, the present value of lease payments are calculated by applying the incremental borrowing rate of the relevant entity holding the lease. Following the commencement date, the incremental borrowing rate is not changed unless the lease term is modified, or if the lease payments are modified and this modification results from a change in floating interest rates. From the lease commencement date and over the lease term, the carrying amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in lease term, or a change in lease payments, including changes to future payments resulting from a change in an index used to determine such lease payments.

Trade Payables and Accrued Expenses

Trade payables and accrued expenses are measured at amortized cost.

Other Liabilities

Other

liabilities

comprise payables to public authorities, and short-term employee benefits. Other

liabilities

are measured at their

net-realizable

values.

Contract Liabilities

Contract liabilities comprise deferred income from collaboration agreements and license agreements, where consideration received does not match the individual deliverables with respect to amount and satisfied performance obligations. Deferred income typically arises from

up-front

payments under collaboration and license agreements, relating to license grants or

up-front

funding of development activities.

Deferred income is measured at the fair value of the consideration received and is recognized as revenue in the consolidated statement of profit or loss when the relevant performance obligation, to which the deferred income relates, is satisfied.

Cash Flow Statement

The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year.

Cash flows from operating activities are presented using the indirect method and calculated as the profit or loss adjusted for

non-cash

items, working capital changes as well as finance income, finance expenses and income taxes paid.

Cash flows from investing activities include payments in connection with acquisitions, development, improvement and sale, etc., of intangible assets, property, plant and equipment, and group enterprises. In addition, investing activities include acquisition and settlement of marketable securities.

Cash flows from financing activities comprise payments related to lease liabilities, and changes in the share capital of Ascendis Pharma A/S and related costs.

The effect of exchange rate changes on cash and cash equivalents held or due in a foreign currency is presented separately from cash flows from operating, investing and financing activities. Cash flows in currencies other than the functional currency are recognized in the cash flow statement, using the average exchange rates.

Cash and cash equivalents comprise cash and

on-demand

deposits with financial institutions, and highly liquid marketable securities with a maturity of three months or less after the date of acquisition (trade-date).

Segment Reporting

The Company is managed and operated as one operating and reportable segment. No separate operating segments or reportable segments have been identified in relation to product candidates or geographical markets. Accordingly, except for entity wide disclosures, no segment information on business segments or geographical markets is disclosed.

Basic EPS

Basic Earnings per Share, or EPS, is calculated as the consolidated net income or loss from continuing operations for the period divided by the weighted average number of ordinary shares outstanding.

Diluted EPS

Diluted earnings per share is calculated as the consolidated net income or loss from continuing operations for the period divided by the weighted average number of ordinary shares outstanding adjusted for the dilutive effect of share equivalents. If the consolidated statement of profit or loss shows a net loss, no adjustment is made for the dilutive effect, as such effect would be anti-dilutive.

New International Financial Reporting Standards Not Yet Effective

The IASB has issued, and the European Union has adopted, a number of new or amended standards, which have not yet become effective. Therefore, these new standards have not been incorporated in these consolidated financial statements. The consolidated financial statements are not expected to be affected by such new or improved standards.

Significant Accounting Judgements, Estimates and Assumptions

12 Months Ended

Dec. 31, 2020

Significant Accounting Judgements, Estimates and Assumptions

Note 3 – Significant Accounting Judgements, Estimates and Assumptions

In the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Judgements and estimates applied are based on historical experience and other factors that are relevant, and which are available at the reporting date. Uncertainty concerning judgements and estimates could result in outcomes, that require a material adjustment to assets and liabilities in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. While the application of critical accounting estimates is subject to material estimation uncertainties, management’s ongoing revisions of critical accounting estimates have not revealed any material impact in any of the years ended December 31, 2020, 2019 or 2018.

Critical accounting judgements and key sources of estimation uncertainty, which may have a material impact on the consolidated financial statements are described in following sections.

Revenue

Revenue is primarily generated from collaboration and license agreements, which typically involve multiple promises, and thus require significant judgements by management on certain areas including:

•

Determining whether the promises in the agreements are distinct performance obligations;

•

Identifying and constraining variable consideration in the transaction price including milestone payments;

•

Allocating transaction price to identified performance obligations based on their relative stand-alone selling prices; and

•

Determining whether performance obligations are satisfied over time, or at a point in time.

Critical judgements relating to specific revenue transactions are described below.

Identifying Performance Obligations and Allocating Transaction Price

Three license agreements with the Company’s associate VISEN, or licensee, grant the licensee exclusive rights to develop, manufacture, and commercialize patented product candidates in Greater China

including the right to grant

sub-licenses

to third parties. In addition to the licenses, the Company will provide development services and deliver clinical supply material for clinical trials within

Greater China.

In determination of the performance obligations under the license agreements, the stand-alone values of the promises and the Company’s responsibility in the development activities have been considered.

Since

licensed product candidates are all in phase 1 clinical trials or later stages of development, the licensee can benefit from each promise in the contract either on their own or together with readily available resources. Accordingly, licenses, development services, and clinical trial supplies are all considered distinct performance obligations.

Classification of Licenses as

“Right-to-Use”

“Right-to-Access”

Management has considered whether the Company is obligated or expected to perform research and development activities that significantly affect the licensee’s ability to benefit from product candidates. If the Company is contractually obligated, or is expected to perform research and development activities affecting the stand-alone functionality of the product candidate, the license is classified as

“right-to-access”.

Other licenses are classified as

“right-to-use”.

Since

licensed products are patented drug formulas, future activities do not affect their stand-alone functionalities. Accordingly, all three licenses have been classified as

“right-to-use”,

with revenue recognized at the point in time, where licensee is granted access to the intellectual property.

Share-Based Payment

IFRS 2, “Share-Based Payment” requires an entity to reflect in its consolidated statement of profit or loss and financial position, the effects of share-based payment transactions. Warrant compensation costs are recognized as research and development costs or selling, general and administrative expenses, as appropriate, over the vesting period, based on management’s best estimate of the number of warrants that will ultimately vests, which is subject to uncertainty.

In addition, warrant compensation costs are measured according to the grant date fair values of the warrants granted. Estimating fair values requires the Company to apply generally accepted valuation models, and apply these models consistently according to the terms and conditions of the specific warrant program. Under all warrant programs, the Black-Scholes option-pricing model has been applied to determine the fair value of warrants granted. Subjective judgements and assumptions, which are subject to estimation uncertainties, need to be exercised in determining the appropriate input to the valuation model.

See Note 7 for additional details on the Company’s warrant programs, option-pricing model input. Warrant compensation cost recognized in the consolidated statement of profit or loss

was €53.2 million, €37.5 million and €19.7 million for

the years ended December 31, 2020, 2019 and 2018, respectively.

Internally Generated Intangible Assets

Development of Drug Candidates

IAS 38, “Intangible Assets” prescribes that intangible assets arising from development projects must be recognized in the consolidated statements of financial position if the criteria for capitalization are met. That means (1) that the development project is clearly defined and identifiable; (2) that technological feasibility, adequate resources to complete and a market for the product or an internal use of the project can be documented; (3) that the expenditure attributable to the development project can be measured reliably; and (4) that the Company has the intent to produce and market the product. Such an intangible asset shall be recognized if it can be demonstrated that the future income from the development project will exceed the aggregate cost of development, production, sale and administration of the product.

Due to the risk associated with drug development, future income from development projects related to drug candidates cannot be determined with sufficient certainty until the development activities have been completed and the necessary marketing approvals have been obtained. Accordingly, the Company does not recognize internally generated intangible assets at this time.

Joint Arrangements

Collaboration and license agreements within the Company’s industry are often structured so that each party contributes its respective skills in the various phases of a development project, and significant judgement is required by management to determine whether such agreements comprise customer/supplier relationship or joint arrangements where parties share risks and rewards.

It has been concluded that no joint control exists for the Company’s license agreements and the parties do not have any financial obligations on behalf of each other. Accordingly, since neither of the license agreements are considered to be joint arrangements, these are classified as contracts with customers.

Pre-launch

Inventories

In order to accommodate market demands, the Company initiates manufacturing of inventories for late-stage development product candidates prior to obtaining marketing approvals, or pre-launch inventories.

In determining the accounting for

pre-launch

inventories, management considers the probability of future benefits, and accordingly, whether

pre-launch

inventories qualify as assets. Manufacturing of

pre-launch

inventories are initiated for late-stage product candidates and are recognized as inventories. However, since

pre-launch

inventories are not realizable prior to obtaining marketing approvals,

pre-launch

inventories are immediately written down to zero through research and development costs. If the marketing approval is obtained, write-downs of

pre-launch

inventories will be reversed through research and development costs.

Accruals and Prepayments

Project Development Costs

Development of drug candidates requires spend of significant resources, and establishment of long-term working relationships with CROs and CMOs. Work performed by CROs and CMOs and other project suppliers, often comprise deliveries for more than one reporting period, and where payment terms for contractual work do not necessarily reflect the stage of completion of the individual projects and activities. Accordingly, determination of the stage of completion for ongoing project activities include estimation uncertainties as future efforts to complete the specific activity may be difficult to predict.

On each reporting date, all significant ongoing activities are reviewed to determine the stage of completion and compared to the invoices received. Accruals are recognized for individual projects where the stage of completion exceeds costs of invoices received. Similarly, prepayments are recognized for invoiced costs in excess of the stage of completion.

The Company has implemented accrual calculation models and policies, to ensure that consistent accrual procedures are applied, which includes analyzing significant project stages and payment structures, comparing project milestones to planned performance, and revisiting prior periods estimates.

As of December 31, 2020, the consolidated statement of financial position included prepaid project costs of €10.5 million and accrued project costs of €17.0 million, compared to €5.8 million and €10.5 million, respectively, as of December 31, 2019.

Leases

Determination of Lease Term

Certain lease arrangements include contractual rights (not obligations) to either extend the lease after the initial term, or not to terminate the lease within the enforceable lease term, i.e., periods where lessor cannot terminate the lease. Those options cover periods in the range from two to ten years in addition to the non-cancellable periods. Significant judgement is required by management to determine whether it is reasonably certain to exercise an extension option, or not to exercise a termination option, upon occurrence of an event of change in circumstances that is within the control of the Company.

Except for the above areas, judgements, estimates and assumptions are not considered to be critical to the consolidated financial statements.

Revenue

12 Months Ended

Dec. 31, 2020

Revenue

Note 4—Revenue

The Company’s revenue is primarily generated from three license agreements, which were entered into in 2018. The licenses grant VISEN Pharmaceuticals, or VISEN

exclusive rights to develop and commercialize TransCon hGH, TransCon PTH and TransCon CNP in Greater China. As consideration for the granting of such rights, the Company has received

up-front,

non-refundable,

non-cash

consideration of $40.0 million in form of 50% ownership in VISEN. Consideration received is recognized partly as license revenue, and partly as rendering of services over time. In addition to granting exclusive rights, the Company will provide clinical trial supply and development services to VISEN.

Revenue has been recognized in the consolidated statements of profit or loss with the following amounts:


	2020		2019		2018
	(EUR’000)
Revenue from external customers
Revenue from rendering of services (recognized over time)		2,140		9,919		1,215
Sale of clinical supply (recognized at a point in time)		2,206		804		—
“Right-to-use” licenses (recognized at a point in time)		2,607		2,652		9,366

Total revenue (1)		6,953		13,375		10,581


Attributable to
VISEN Pharmaceuticals (1)	6,880	13,371	10,508
Other collaboration partners	73	4	73

Total revenue	6,953	13,375	10,581


Total revenue specified per geographical location
North America	2,679	2,652	10,581
China	4,274	10,723	—

Total revenue	6,953	13,375	10,581

(1)	“Total revenue” includes recognition of previously deferred revenue/internal profit from associate of €3.5 million and €6.5 million for the years ended December 31, 2020 and 2019, respectively.

Segment Information

12 Months Ended

Dec. 31, 2020

Disclosure Of Research And Development Expense [Abstract]

Segment Information

Note 5—Segment Information

The Company is managed and operated as one business unit. No separate business areas or separate business units have been identified in relation to product candidates or geographical markets. Accordingly, except for entity wide disclosures, we do not disclose information on business segments or geographical markets. Entity wide disclosures regarding revenue are included in Note

The Company’s intangible assets and property, plant and equipment located by country are specified below,

and

defines the Company’s

non-current

segment assets:


	2020		2019
	(EUR’000)
Non-current segment assets
Denmark (domicile country)		20,288		15,738
North America		85,476		27,275
Germany		8,065		5,551

Total non-current segment assets		113,829		48,564

Investment in associate		9,176		15,538
Marketable securities		115,280		—
Other receivables		1,375		1,463

Total non-current assets		239,660		65,565

Research and Development Costs

12 Months Ended

Dec. 31, 2020

Research and Development Costs

Note 6—Research and Development Costs

Research and development costs are specified by their nature in the following table:


	2020		2019		2018
	(EUR’000)
Research and development costs
Employee costs		92,468		61,890		34,146
Depreciation		7,311		5,282		827
External costs		161,125		124,449		105,308

Total research and development costs		260,904		191,621		140,281

Employee costs

12 Months Ended

Dec. 31, 2020

Principal Accountant Fees and Services

Employee costs

Note 7—Employee costs


	2020		2019		2018
	(EUR’000)
Employee costs
Wages and salaries		77,374		49,142		29,418
Share-based payment		53,170		37,486		19,652
Pensions (defined contribution plans)		943		648		444
Social security costs		5,358		3,613		1,793

Total employee costs		136,845		90,889		51,307

Included in the profit or loss
Research and development costs		92,468		61,890		34,146
Selling, general and administrative expenses		44,377		28,999		17,161

Total employee costs		136,845		90,889		51,307

Average number of employees		410		274		167

Key Management Personnel includes the Board of Directors and Executive Board and comprises seven and two persons, respectively, for all years presented.

Compensation to Key Management Personnel comprises salaries, participation in annual bonus schemes, and share-based compensation. Share-based compensation is elaborated in further details in the section “Share-based Payment”.

Compensation to Key Management Personnel included within total employee costs are summarized below:


	Board of Directors						Executive Board						Total
	2020		2019		2018		2020		2019		2018		2020		2019		2018
	(EUR ‘000)
Employee cost
Wages and salaries		250		265		244		2,372		1,815		1,565		2,622		2,080		1,809
Share-based payment		1,913		1,864		1,607		6,359		5,303		3,505		8,272		7,167		5,112
Social security costs		—		—		—		100		94		152		100		94		152

Total employee costs		2,163		2,129		1,851		8,831		7,212		5,222		10,994		9,341		7,073

Share-based payment

Ascendis Pharma A/S has established warrant programs, equity-settled share-based payment transactions, as an incentive for all of our employees, members of the Board of Directors and select external consultants.

Warrants are granted by the Board of Directors in accordance with authorizations given to it by the shareholders of Ascendis Pharma A/S. As of December 31, 2020, 10,864,718 warrants had been granted, of which 19,580 warrants have been cancelled, 4,176,645 warrants have been exercised, 2,168 warrants have expired without being exercised, and 518,321 warrants have been forfeited. As of December 31, 2020,

the Board

of Directors was authorized to grant up to 762,569 additional warrants to employees, board members and select consultants without preemptive subscription rights for the shareholders of Ascendis Pharma A/S. Each warrant carries the right to subscribe for one ordinary share of a nominal value of DKK 1.

The exercise price is fixed at the fair market value of the Company’s ordinary shares at the time of grant as determined by the

oard of

irectors. Vested warrants may be exercised in

two or four annual exercise periods as described below. Apart from exercise prices and exercise periods, the programs are similar.

Vesting Conditions

Warrants issued generally vest over 48 months with 1/48 of the warrants vesting per month from the date of grant. However, effective from January 2015, certain warrants issued to board members vest over 24 months with 1/24 of the warrants vesting per month from the date of grant.

Warrants generally cease to vest from the date of termination in the event that (i) the warrantholder terminates the employment contract and the termination is not a result of breach of the employment terms by the Company, or (ii) in the event that the Company terminates the employment contract and the warrantholder has given the Company good reason to do so. The warrantholder will, however, be entitled to exercise vested warrants in the first exercise period after termination.

In the event that the employment contract is terminated and the warrantholder has not given the Company good reason to do so, the warrantholder may keep the right to continued vesting and exercise of warrants as if the employment was still in effect. In such case, any expense not yet recognized for the outstanding warrants is recognized immediately.

Warrants issued to consultants, advisors and board members only vest so long as the consultant, advisor or board member continues to provide services to the Company.

Exercise Periods

Vested warrants may be exercised during certain exercise periods each year. At December 31, 2020, for 403,467 outstanding warrants

, granted in the period 2012 to 2014

, there are two annual exercise periods that continue for 21 days from and including the day after the publication of (i) the annual report notification—or if such notification is not published—the annual report and (ii) the interim report

(six-month

report). For these warrants, the last exercise period is

21 days from and including the day after the publication of the interim report for the first half of 2023.

At December 31, 2020, for 52,323 outstanding warrants

granted in connection with the Preference D financing, there are four annual exercise periods that continue for

21 days following the day of publication of (i) an interim report (three-month report); (ii) the annual report notification—or if such notification is not published—the annual report; (iii) the interim report

(six-month

report); and (iv) the interim report (nine-month report). For these warrants, the last exercise period is 21 days following the publication of the interim report (nine-month report) in 2023. At December 31, 2020, for 5,692,214 warrants granted on or after December 18, 2015, there are four annual exercise periods; each exercise period begins two full trading days after the publication of the

public release of earnings data of a fiscal quarter and continues until the end of the

second-to-last

trading day in which quarter the relevant earnings release is published. The warrants granted in December 2015 and later expire ten years after the grant date.

In the event of liquidation, a merger, a demerger, a sale or share exchange of more than 50%

of the Company’s share capital, the warrantholders may be granted an extraordinary exercise period immediately prior to the transaction in which warrants may be exercised.

Warrants not exercised by the warrantholder during the last exercise period shall become null and void without further notice or compensation or payment of any kind to the warrantholder.

If the warrantholder is a consultant, advisor or board member, the exercise of warrants is conditional upon the warrantholder’s continued service to the Company at the time the warrants are exercised. If the consultant’s, advisor’s or board member’s relationship with the Company should cease without this being attributable to the warrantholder’s actions or omissions, the warrantholder shall be entitled to exercise vested warrants in the

pre-defined

exercise periods.

Adjustments

Warrantholders are entitled to an adjustment of the number of warrants issued and/or the exercise price applicable in the event of certain corporate changes. Events giving rise to an adjustment include, among other things, increases or decreases to our share capital at a price below or above market value, respectively, the issuance of bonus shares, changes in the nominal value of each share, and payment of dividends in excess of 10% of the Company’s equity.

On January 13, 2015, in preparation for the Company’s IPO, the shareholders decided at an extraordinary general meeting to issue bonus shares in the ratio of 3:1 of the Company’s authorized, issued and outstanding ordinary and preference shares. The decision had a corresponding impact on the number of warrants issued and the exercise prices for outstanding warrants. Accordingly, the number of warrants was adjusted upwards in the ratio of 3:1 with a corresponding downward adjustment of the exercise prices in the ratio of 3:1. The effect of the bonus shares has been retrospectively reflected in all periods presented in these consolidated financial statements.

Warrant Activity

The following table specifies the number and weighted average exercise prices of, and movements in warrants during the year:


	Total Warrants			Weighted Average Exercise Price EUR
Outstanding at January 1, 2018		4,621,154			17.62

Granted during the year		1,637,375			54.43
Exercised during the year (1)		(611,683	)		10.82
Forfeited during the year		(35,217	)		28.24
Expired during the year		—			—

Outstanding at December 31, 2018		5,611,629			29.03

Vested at the reporting date		2,478,770			15.81

Granted during the year		1,300,600			97.01
Exercised during the year (1)		(1,058,722	)		16.33
Forfeited during the year		(33,296	)		58.49
Expired during the year		—			—

Outstanding at December 31, 2019		5,820,211			46.36

Vested at the reporting date		2,705,693			24.93

Granted during the year		1,485,931			137.57
Exercised during the year (1)		(905,395	)		30.56
Forfeited during the year		(252,743	)		64.99
Expired during the year		—			—

Outstanding at December 31, 2020		6,148,004			69.97

Vested at the reporting date		3,044,827			37.29

(1)	The weighted average share price (listed in $) at the date of exercise was €128.32, €108.54 and €58.01 for the years ended December 31, 2020, 2019 and 2018, respectively.

The following table specifies the weighted average exercise prices and weighted average remaining contractual life for outstanding warrants at December 31, 2020, per grant year.


	Number of Outstanding Warrants		Weighted Average Exercise Price EUR		Weighted Average Remaining Life (months)
Granted in 2012-2017		2,247,134		20.83		66
Granted in 2018		1,288,400		54.56		94
Granted in 2019		1,143,436		96.98		105
Granted in 2020		1,469,034		137.63		117

Outstanding at December 31, 2020		6,148,004		69.97		91

At December 31, 2020, the exercise prices of outstanding warrants under the

Company’s warrant programs range from

€6.48 to €145.50 depending on the grant dates. The range of exercise prices for outstanding warrants was €6.48 - €107.14, and €6.48 - €60.23, for the years ended December 31, 2019 and 2018, respectively.

The weighted average remaining life for outstanding warrants was 94 months and 96 months, for the financial years ended December 31, 2019 and 2018, respectively.

Warrant Compensation Costs

Warrant compensation cost

recognized in the consolidated statement of profit or loss over the vesting period of the warrants granted.

Warrant compensation costs are determined with basis in the grant date fair value of the warrants granted and recognized over the vesting period. Fair value of the warrants is calculated at the grant dates by use of the Black-Scholes Option Pricing model with the following assumptions: (1) an exercise price equal to the estimated market price of the Company’s shares at the date of grant; (2) an expected lifetime of the warrants determined as a weighted average of the time from grant date to date of becoming exercisable and from grant date to expiry of the warrants; (3) a risk-free interest rate equaling the effective interest rate on a Danish government bond with the same lifetime as the warrants; (4) no payment of dividends; and (5) a volatility for comparable companies for a historic period equaling the expected lifetime of the warrants. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the warrants is indicative of future trends. The expected volatility has been calculated using a simple average of daily historical data of comparable publicly traded companies, as we do not have sufficient data for the volatility of the Company’s own share price.

The following table summarizes the input to the Black-Scholes Option Pricing model and the calculated fair values for warrant grants in 2020, 2019 and 2018:


	2020	2019	2018
Expected volatility	52 – 55%	52 – 54%	53 – 57%
Risk-free interest rate	(0.93) – (0.32)%	(0.77) – (0.05)%	(0.23) –0.46%
Expected life of warrants (years)	5.05 – 7.10	5.05 – 7.10	5.05 – 7.14
Weighted average exercise price	€137.57	€97.01	€54.43
Fair value of warrants granted in the year	€48.43 – 75.77	€27.24 – 55.64	€17.90 – 31.81

Principal Accountant Fees and Services

12 Months Ended

Dec. 31, 2020

Auditor's remuneration [abstract]

Note 8—

Principal Accountant Fees and Services

The following table sets forth, for each of the years indicated, the fees billed by the Company’s independent public accountants and the proportion of each of the fees out of the total amount billed by the accountants.


	2020		2019		2018
	(EUR’000)
Principal accountant fees and services
Audit fees		599		700		693
Tax fees		104		7		—
All other fees		22		—		62

Total principal accountant fees and services		725		707		755

Finance Income and Finance Expenses

12 Months Ended

Dec. 31, 2020

Finance Income and Finance Expenses

Note 9—Finance Income and Finance Expenses


	2020		2019		2018
	(EUR’000)
Finance income
Interest income		1,812		10,056		4,020
Exchange rate gains		—		7,747		20,694

Total finance income		1,812		17,803		24,714

Finance expenses
Interest expenses		1,918		1,221		127
Exchange rate losses		78,924		—		—

Total finance expenses		80,842		1,221		127

Interest income and interest expenses relate to financial assets and liabilities measured at amortized cost. Interest expense on lease liabilities are specified in Note 17.

Exchange rate losses primarily relate to U.S. Dollar/Euro fluctuations pertaining to the Company’s, cash, cash equivalents and marketable securities.

Tax on Profit/(Loss) for the Year and Deferred Tax

12 Months Ended

Dec. 31, 2020

Tax on Profit/(Loss) for the Year and Deferred Tax

Note 10—Tax on Profit/(Loss) for the Year and Deferred Tax


	2020			2019			2018
	(EUR’000)
Tax on profit/(loss) for the year:
Current tax (expense)/income		219			234			394

		219			234			394

Tax for the year can be explained as follows:
Profit/(loss) before tax		(419,174	)		(218,250	)		(130,491	)
Tax at the Danish corporation tax rate of 22%		92,218			48,015			28,708
Tax effect of:
Non-deductible costs		(11,815	)		(8,249	)		(4,327	)
Additional tax deductions		24,564			10,875			4,074
Impact from associate		(1,326	)		(1,680	)		(2,383	)
Other effects including effect of different tax rates		2,673			1,602			143
Deferred tax asset, not recognized		(106,095	)		(50,329	)		(25,821	)

Tax on profit/(loss) for the year		219			234			394

Effective tax rate		(0.05	)%		(0.11	)%		(0.30	)%


	2020			2019			2018
	(EUR’000)
Specification of Deferred Tax Assets
Tax deductible losses		227,234			123,234			74,120
Other temporary differences		7,726			5,631			4,416
Deferred tax asset, not recognized		(234,960	)		(128,865	)		(78,536	)

Total Deferred Tax Assets at December 31		0			0			0

No changes to deferred tax have been recognized in the consolidated statement of profit or loss for 2020, 2019 or 2018. Deferred tax assets have not been recognized in the consolidated statements of financial position due to uncertainty relating to future utilization. Deferred tax assets can be carried forward without timing limitations.

The Company had tax losses carried forward of €1,043.8 million and €560.2 million at December 31, 2020 and December 2019, respectively

Tax losses can be carried forward infinitely, where certain limitations exist for amounts to be utilized each year. Under Danish tax legislation, tax losses may be partly refunded by the tax authorities to the extent such tax losses arise from research and development activities. For the year ended December 31, 2020, the jointly taxed Danish entities had a negative taxable income, and accordingly were entitled to a tax refund of approximately €0.7

million

for each of the years ended December 31, 2020, 2019 and 2018, respectively.

The Company is entitled to additional tax deductions, determined by annual warrants exercised by employees. For the year ended December 31, 2020, the Company was entitled to additional tax deductions of €

16.3

million, compared to €

10.2

million and €

3.5

million for the years ended December 31, 2019 and 2018, respectively. The Company is entitled to future tax deductions, which depends on the timing and amounts of warrant exercises, and accordingly, future additional tax deductions is subject to uncertainties. Please refer to Note 7 regarding descriptions of warrant programs.

The parent company Ascendis Pharma A/S is jointly taxed with its Danish subsidiaries. The current Danish corporation tax is allocated between the jointly taxed Danish companies in proportion to their taxable income (full absorption with refunds for tax losses). These companies are taxed under the

on-account

tax scheme.

Intangible Assets

12 Months Ended

Dec. 31, 2020

Intangible Assets

Note 11—Intangible Assets


	Goodwill		Software		Total
	(EUR’000)
Cost:
At January 1, 2019		3,495		—		3,495
Additions		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2019		3,495		—		3,495

Additions		—		2,222		2,222
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2020		3,495		2,222		5,717

Accumulated amortization and impairments:
At January 1, 2019		—		—		—
Amortization charge		—		—		—
Impairment charge		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2019		—		—		—

Amortization charge		—		—		—
Impairment charge		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2020		—		—		—

Carrying amount:

At December 31, 2019		3,495		—		3,495

At December 31, 2020		3,495		2,222		5,717

Software relates to development activities on Enterprise Resource Planning system and is under development at the reporting date. The system was taken into use at January 1, 2021

. Of total additions, €0.5 million and €0 million was unpaid at December 31, 2020 and 2019, respectively.

Due to the risk associated with drug development, future income from development projects cannot be determined with sufficient certainty until the development activities have been completed and the necessary marketing approvals have been obtained. Accordingly, at the reporting date, no internally generated intangible assets from development of pharmaceutical drug candidates ha

been recognized. Thus, all research and development costs incurred for the years ended December 31, 2020, 2019 and 2018, were recognized in the consolidated statement

of profit or loss.

Goodwill relates to the acquisition of Complex Biosystems GmbH (now Ascendis Pharma GmbH) in 2007. Goodwill was calculated as the excess amount of the purchase price to the fair value of identifiable assets acquired, and liabilities assumed at the acquisition date. Ascendis Pharma GmbH was initially a separate technology platform company but is now an integral part of the Company’s research and development activities, including significant participation in the development services provided to our external collaboration partners. Accordingly, it is not possible to look separately at Ascendis Pharma GmbH when considering the recoverable amount of the goodwill. Goodwill is monitored and tested for impairment on a consolidated level as the Company is considered to represent one cash-generating unit. Goodwill is tested for impairment on an annual basis at December 31, or more frequently, if indications of impairment are identified. There have been no impairments recognized in any of the periods presented.

The recoverable amount of the cash-generating unit is determined based on an estimation of the Company’s fair value less costs of disposal. The fair value of goodwill has been determined after taking into account the market value of the Company’s ADSs as of the reporting date. The computation of the market value including an estimation of selling costs, significantly exceeded the carrying amount of the net assets, leaving sufficient value to cover the carrying amount of goodwill. Considering the excess value, no further assumptions are deemed relevant to be applied in determining whether goodwill is impaired.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment

Note 12—Property, Plant and Equipment


	Plant and Machinery			Other Equipment			Leasehold Improve- ments			Right-of-Use Assets			Total
	(EUR’000)
Cost:
At January 1, 2019		5,645			2,595			875			—			9,115
Adoption of IFRS 16, “Leases”		—			—			—			18,437			18,437
Additions		2,393			1,499			3,418			21,225			28,535
Disposals		—			(154	)		(7	)		—			(161	)
Foreign exchange translation		—			4			2			457			463

At December 31, 2019		8,038			3,944			4,288			40,119			56,389

Additions		7,169			1,635			4,849			64,582			78,235
Disposals		(296	)		(221	)		(14	)		—			(531	)
Foreign exchange translation		(289	)		(183	)		(588	)		(5,135	)		(6,195	)

At December 31, 2020		14,622			5,175			8,535			99,566			127,898

Accumulated depreciation:
At January 1, 2019		(3,448	)		(954	)		(388	)		—			(4,790	)
Depreciation charge		(523	)		(758	)		(170	)		(5,237	)		(6,688	)
Disposals		—			154			—			—			154
Foreign exchange translation		—			(5	)		—			9			4

At December 31, 2019		(3,971	)		(1,563	)		(558	)		(5,228	)		(11,320	)

Depreciation charge		(1,030	)		(956	)		(605	)		(6,857	)		(9,448	)
Disposals		204			191			7			—			402
Foreign exchange translation		16			41			22			501			580

At December 31, 2020		(4,781	)		(2,287	)		(1,134	)		(11,584	)		(19,786	)

Carrying amount:

At December 31, 2019		4,067			2,381			3,730			34,891			45,069

At December 31, 2020		9,841			2,888			7,401			87,982			108,112

Assets under construction amounts to €2.3 million and €2.7 million at December 21, 2020 and 2019, respectively. Of total additions, €1.0 million and €2.1 million was unpaid at December 31, 2020 and 2019, respectively

Depreciation charges are specified below:


	2020		2019		2018
	(EUR’000)
Depreciation charges
Research and development costs		7,311		5,282		827
Selling , g eneral and administrative expenses		2,137		1,406		53

Total depreciation charges		9,448		6,688		880

Investment in Associate

12 Months Ended

Dec. 31, 2020

Investments accounted for using equity method [abstract]

Investment in Associate

Note 13—Investment in Associate

VISEN Pharmaceuticals, or VISEN, was formed in November 2018. The Company has granted VISEN exclusive rights to develop and commercialize TransCon hGH, TransCon PTH and TransCon CNP in Greater China, and as consideration for the granting of such rights has received a

50% ownership of VISEN. The other investors contributed, in aggregate, $40.0 million in cash as their consideration for remaining 50% ownership.

VISEN is a private entity not listed on any public exchange, with business activities within development, manufacturing and commercialization of endocrinology rare disease therapies in Greater China. The Company’s interest in VISEN is accounted for as an associate using the equity method in the consolidated financial statements as the Company has determined that it has significant influence but not joint control.

The following table illustrates the summarized relevant financial information of VISEN:


VISEN Pharmaceuticals
Principal place of business			China
Ownership (at December 31, 2020)			50%


	2020			2019
	(EUR’000)
Statement of profit or loss
Profit / (loss) for the year from continuing operations		(19,049	)		(16,226	)

Total comprehensive income		(19,049	)		(16,226	)

Statement of financial position
Non-current assets		16,635			23,291
Current assets		20,373			32,446

Total assets		37,008			55,737

Equity		33,708			53,820
Non-current liabilities		152			250
Current liabilities		3,148			1,667

Total equity and liabilities		37,008			55,737

Company’s share of equity before eliminations		16,854			26,910
Elimination of internal profit recognized at December 31		(7,678	)		(11,372	)

Company’s share of equity		9,176			15,538

Investment in associate at December 31		9,176			15,538

Revenue from VISEN, recognized in the consolidated statement of profit or loss is disclosed in Note 4. Trade receivable balance with VISEN at December 31, 2020 and 2019 was €0.2 million and €0.8 million, respectively.

VISEN requires the Company’s consent to distribute dividends and incur indebtedness outside the normal course of business.

January 8, 2021, the Company entered into an equity investment of $12.5 million as part of

VISEN’s

$150 million Series B financing. Please refer to Note 24 regarding subsequent events.

Other Receivables

12 Months Ended

Dec. 31, 2020

Other Receivables [Abstract]

Other Receivables

Note 14—Other Receivables

Other receivables comprise following:


	2020		2019
	(EUR’000)
Other receivables
Deposits		1,375		1,463
Income tax receivables		778		1,473
VAT receivables		5,276		2,797
Other receivables		903		339

Total other receivables		8,332		6,072

Classified based on expected realization
Non-current assets		1,375		1,463
Current assets		6,957		4,609

Total other receivables		8,332		6,072

Share Capital

12 Months Ended

Dec. 31, 2020

Share Capital

Note 15—Share Capital

The share capital of Ascendis Pharma A/S consists of 53,750,386 fully paid shares at a nominal value of DKK 1, all in the same share class.

The number of shares of the Company are as follows:


	2020		2019		2018		2017		2016
Changes in share capital
Beginning of year		47,985,837		42,135,448		36,984,292		32,421,121		25,128,242
Increase through cash contribution		5,764,549		5,850,389		5,151,156		4,563,171		7,292,879

End of year		53,750,386		47,985,837		42,135,448		36,984,292		32,421,121

Distributable Equity

12 Months Ended

Dec. 31, 2020

Distributable Equity

Note 16—Distributable Equity

Share Premium Reserve

Share premium comprises the amounts received, attributable to shareholders’ equity, in excess of the nominal amount of the shares issued at the parent company’s capital increases, reduced by any expenses directly attributable to the capital increases. Under Danish legislation, share premium is an unrestricted reserve that is available to be distributed as dividends to a company’s shareholders. Also, under Danish legislation, the share premium reserve can be used to offset accumulated deficits.

Foreign Currency Translation Reserve

Exchange rate differences relating to the translation of the results and net assets of the Company’s foreign operations and associate from their functional currencies to the Company’s presentation currency are recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve. The foreign currency translation reserve is an unrestricted reserve that is available to be distributed as dividends to a company’s shareholders.

Share-Based Payment Reserve

Warrants granted under

the Company’s

warrant programs carry no rights to dividends and no voting rights. The share-based payment reserve represents the fair value of warrants recognized from grant date. Further details of the warrant programs are provided in Note 7. Share-based payment reserve is an unrestricted reserve that is available to be distributed as dividends to a company’s shareholders.

Retained Earnings or Accumulated Deficits

Retained earnings or accumulated deficits represent the accumulated profit or losses from the Company’s operations. A positive balance of retained earnings is available to be distributed as dividends to a company’s shareholders.

Leases

12 Months Ended

Dec. 31, 2020

Text Block Abstract [Abstract]

Leases

Note 17—Leases

The Company primarily leases office and laboratory facilities. Lease arrangements contain a range of different terms and conditions and are typically entered into for fixed periods. Generally, the lease terms are between two and eleven years,

and in addition, in order to improve flexibility to the Company’s operations, may provide the Company with options to extend the lease, or terminate the lease within the enforceable lease term. In the Company’s current lease portfolio, extension and termination options range

between two to ten years, in addition to the non-cancellable period.

To accommodate the current and future development of the Company, additional leases related to office facilities were entered into in 2020,

and included recognition of right-of-use assets of

€64.6

million. In December 2020, the Company entered into two office facility leases in Denmark, which commence in the first quarter of 2021. The leases are enforceable

until January 2037, and July 2029, respectively, whereas the Company has rights to terminate the leases in January 2027, and July 2026, respectively. In addition, a new lease is expected to commence in 2021, and relates to laboratory facilities in Heidelberg, Germany.

Leases Liabilities and Payments

Development in lease liabilities are specified below:


	Beginning of period			Additions		Accretion of interests		Cash out-flow (2)			Foreign exchange translation (non-cash item)			End of period
	(EUR’000)
Lease liabilities
December 31, 2020		36,619			64,582		1,617		(5,990	)		(4,853	)		91,975

December 31, 2019		17,700	(1)		21,240		1,014		(3,870	)		535			36,619

(1)	Beginning balance, December 31, 2019, includes the impact from implementing IFRS 16.

(2)	Total cash outflow, including prepaid leases was €6.0 million and €4.5 million for the years ended December 31, 2020 and 2019, respectively.

The maturity analysis of lease liabilities is disclosed in Note 20 “Financial Risk Management and Financial Instruments” in the section “Liquidity Risk Management”.

Expenses Relating to Leases

The following expenses relating to lease activities are recognized in the consolidated statements of profit or loss (IFRS 16 was adopted by applying the modified retrospective approach. Accordingly, no comparative information for 2018 is disclosed):


	2020		2019
	(EUR’000)
Lease expense
Depreciation (research and development, Note 12)		4,885		3,943
Depreciation (selling, general and administration, Note 12)		1,972		1,294
Expenses relating to short term leases and leases of low value assets (research and development and selling, general and administration)		470		202
Lease interest (finance expenses, Note 9 )		1,617		1,014

Total lease expenses		8,944		6,453

Contract liabilities

12 Months Ended

Dec. 31, 2020

Contract liabilities

Note 18—Contract Liabilities

Deferred income was €0.4 million and €0.9 million for the years ended December 31, 2020 and 2019, respectively,

and relates

to partially satisfied performance obligations regarding feasibility studies and research and development of licensed product candidates. The remaining balance of deferred income is expected to be recognized as revenue in 2021, as services are transferred.

Revenue recognized from deferred income was €1.0 million, €6.1 million and €0.0 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies

Note 19—Commitments and Contingencies

Contractual commitments for the construction of property

, plant and equipment were €15.8 million and €8.5 million for the years ended December 31, 2020 and 2019, respectively. With certain suppliers, the Company has agreed minimum

commitments related to the manufacturing

of product supply, subject to continuous negotiation and adjustments according to the individual contractual terms and conditions. Delivery of product supply is recognized when the Company obtains control of the goods.

In addition, the Company has entered into short-term leases and leases of low value assets, contracts of various lengths in respect of research and development with Clinical Research Operators, and IT and facility related services. Costs relating to those commitments are recognized as services are received.

We are not aware of any significant legal claims or disputes.

Financial Risk Management and Financial Instruments

12 Months Ended

Dec. 31, 2020

Financial Risk Management and Financial Instruments

Note 20—Financial Risk Management and Financial Instruments

Financial assets and financial liabilities comprise the following:


	2020		2019
	(EUR’000)
Financial assets
Trade receivables		387		804
Other receivables		2,251		1,463
Marketable securities		249,558		—
Cash and cash equivalents		584,517		598,106

Financial assets measured at amortized cost		836,713		600,373

Financial liabilities
Lease liabilities		91,975		36,619
Trade payables and accrued expenses		21,897		27,765

Financial liabilities measured at amortized cost		113,872		64,384

Marketable Securities

Marketable securities are measured at amortized cost, and fair values are determined based on quoted market prices (Level 1 in the fair value hierarchy). The composition of the portfolio and its fair values are specified in the following table (the Company did not hold any marketable securities at December 31, 2019):


	Carrying amount		Fair value
	(EUR’000)
December 31, 2020
Marketable securities
U.S. Treasury bills		46,243		46,245
U.S. Government Bonds		62,088		62,101
Commercial papers		10,583		10,581
Corporate bonds		121,282		121,234
Agency bonds		9,362		9,369

Total marketable securities		249,558		249,530

Classified based on maturity profiles
Non-current assets		115,280		115,277
Current assets		134,278		134,253

Total marketable securities		249,558		249,530

Specified by rate structure
Fixed rate		175,757		175,732
Floating rate		16,975		16,972
Zero-coupon		56,826		56,826

Total marketable securities		249,558		249,530

Specified by credit-rating
AAA- – AA-		93,229		93,240
A+ – A-		99,503		99,464
A-1+		56,826		56,826

Total marketable securities		249,558		249,530

Capital Management

The Company manages capital to ensure that all group enterprises will be able to continue as going concerns while maximizing the return to shareholders through the optimization of debt and equity balances. The overall strategy in this regard has remained unchanged since 2012.

The Company’s capital structure consists only of equity comprising issued capital, reserves and retained earnings/accumulated deficits. Although the Company is not subject to any externally imposed capital requirements, the capital structure is reviewed on an ongoing basis. Since the Company does not hold external debt, such review currently comprises a review of the adequacy of the Company’s capital compared to the resources required for carrying out ordinary activities.

Financial Risk Management Objectives

The Company regularly monitors the access to domestic and international financial markets, manages the financial risks relating to its operations, and analyze exposures to risk, including market risk, such as foreign currency risk and interest rate risk, credit risk and liquidity risk.

The Company’s financial risk exposure and risk management policies are described in following sections.

Market Risk

The Company’s activities expose the group enterprises to the financial risks of changes in foreign currency exchange rates and interest rates. Derivative financial instruments are not applied to manage exposure to such risks.

Foreign Currency Risk Management

The Company is exposed to foreign exchange risks arising from various currency exposures, primarily with respect to the U.S. Dollar, or USD, the British Pound, or GBP, and the Danish Krone, or DKK. Foreign exchange rate risks are unchanged to prior year. The proceeds from the series D financing in November 2014, the IPO in February 2015 and

follow-on

offerings, the latest being in July 2020, were in USD

The exposure from foreign exchange risks are managed by maintaining cash positions in the currencies in which the majority of future expenses are denominated, and payments are made from those reserves.

Foreign Currency Sensitivity Analysis

There is an official target zone of

4.50% between DKK and EUR, which limits the likelihood of significant fluctuations between those two currencies in a

short timeframe. At December 31, 2020

, the net carrying amount of monetary assets and liabilities was €702.1 million, where the direct exposure from USD (USD monetary assets and liabilities held by non-USD entities) was €797.9, which primarily related to the proceeds from the follow-on offering completed in July 2020 and marketable securities.

The following table details how a strengthening of the USD and the GBP would impact profit and loss and equity before tax, at the reporting date. A similar weakening of the USD and the GBP would have the opposite effect with similar amounts. A positive number indicates an increase in profit or loss and equity before tax, while a negative number indicates the opposite. The sensitivity analysis is deemed representative of the inherent foreign exchange risk associated with the operations.


			Hypothetical impact on consolidated financial statements
	Nominal positions		Increase in foreign exchange rate			Profit and loss before tax		Equity before. tax
	(EUR ‘000)
December 31, 2020
USD/EUR		797,927		10	%		79,793		79,793
GBP/EUR		1,555		10	%		155		155


				Hypothetical impact on consolidated financial statements
	Nominal positions			Increase in foreign exchange rate			Profit and loss before tax			Equity before tax
	(EUR ‘000)
December 31, 2019
USD/EUR		477,764			10	%		47,776			47,776
GBP/EUR		(858	)		10	%		(86	)		(86	)

Interest Rate Risk Management

The Company has no interest-bearing debt to third parties. In addition, since the Company holds no derivatives or financial assets and liabilities measured at fair value, the exposure to interest rate risk primarily relates to the interest rates for cash, cash equivalents and marketable securities. Future interest income from interest-bearing bank deposits and marketable securities may fall short of expectations due to changes in interest rates.

The effects of interest rate fluctuations are not considered a material risk to the Company’s financial position. Accordingly, no interest sensitivity analysis has been presented.

Credit Risk Management

The Company has adopted an investment policy with the primary purpose of preserving capital, fulfilling liquidity needs and diversifying the risks associated with cash, cash equivalents and marketable securities. This investment policy establishes minimum ratings for institutions with which the Company holds cash, cash equivalents and marketable securities, as well as rating and concentration limits for marketable securities held.

All material counterparties are considered creditworthy. While the concentration of credit risk may be significant, the credit risk for each individual counterpart is considered to be low. The exposure to credit risk primarily relates to cash, cash equivalents, and marketable securities. The credit risk on bank deposits is limited because the counterparties, holding significant deposits, are banks with high credit-ratings (minimum

A3/A-)

assigned by international credit-rating agencies. The banks are reviewed on a regular basis and deposits may be transferred during the year to mitigate credit risk.

each reporting date, the Company considers the risk of expected credit loss on bank deposits, including the hypothetical impact arising from the probability of default

which is considered in conjunction with the expected loss caused by default by banks with similar credit-ratings and attributes. In line with previous periods, this assessment did not reveal a material impairment loss, and accordingly no provision for expected credit loss has been recognized.

Since March 2020, in order to mitigate the concentration of credit risks on bank deposits and to preserve capital, a portion of the bank deposits have been placed into primarily U.S. government bonds, treasury bills, corporate bonds, and commercial papers. The Company’s investment policy, approved by the Board of Directors, only allows investment in marketable securities having investment grade credit-ratings, assigned by international credit-rating agencies. Accordingly, the risk from probability of default is low. The risk of expected credit loss over marketable securities has been considered, including the hypothetical impact arising from the probability of default, which is considered in conjunction with the expected loss caused by default from securities with similar credit-rating and attributes. This assessment did not reveal a material expected credit loss, and accordingly no provision for expected credit loss has been recognized.

For other financial assets, including deposits and receivables, the credit risk is considered low and no provision for expected credit loss has been recognized.

Liquidity Risk Management

Historically, the risk of insufficient funds has been addressed through proceeds from sale of the Company’s securities in private and public offerings.

Liquidity risk is managed by maintaining adequate cash reserves and banking facilities, and by matching the maturity profiles of financial assets (including marketable securities), with cash-forecasts (including payment profiles on liabilities). The risk of shortage of funds is monitored, using a liquidity planning tool, to ensure sufficient funds available to settle liabilities as they fall due.

Besides marketable securities and deposits, the Company’s financial assets are recoverable within twelve months after the reporting date. Marketable securities have a weighted average duration of

6.0 and 17.3

months, for current (i.e., those maturing within twelve months after the reporting date) and non-current positions, respectively. The entire portfolio of marketable securities (current and non-current) has a weighted average duration of

11.2 months.

Maturity analysis for financial liabilities recognized in the consolidated statements of financial position are specified below.


	< 1 year		1-5 years		>5 years		Total contractual cash-flows		Carrying amount
	(EUR’000)
December 31, 2020
Lease liabilities		6,974		38,321		68,516		113,811		91,975
Trade payables and accrued expenses		21,897		—		—		21,897		21,897

Total financial liabilities		28,871		38,321		68,516		135,708		113,872


	< 1 year		1-5 years		>5 years		Total contractual cash-flows		Carrying amount
	(EUR’000)
December 31, 2019
Lease liabilities		6,020		19,405		17,606		43,031		36,619
Trade payables and accrued expenses		27,765		—		—		27,765		27,765

Total financial liabilities		33,785		19,405		17,606		70,796		64,384

Related Party Transactions

12 Months Ended

Dec. 31, 2020

Related Party Transactions

Note 21—Related Party Transactions

The Board of Directors and Executive Board (Key Management Personnel) are considered related parties as they have authorities and responsibilities with planning and directing the Company’s operations. Related parties also include undertakings in which such individuals have a controlling or joint controlling interest. Additionally, all group enterprises and associates are considered related parties.

Neither the Company’s related parties or major shareholders hold a controlling, joint controlling, or significant interest in the Group.

The Company has entered into employment agreements with and issued warrants to Key Management Personnel. In addition, the Company pays fees for board tenure and board committee tenure to the independent members of the Board of Directors. Please refer to Note 7.

Transactions between the parent company and group enterprises comprise management and license fees, research and development services, and clinical supplies. These transactions have been eliminated in the consolidated financial statements. Transactions and outstanding balances with the associate VISEN are disclosed in Note 13. In addition, the parent company Ascendis Pharma A/S is jointly taxed with its Danish subsidiaries, where the current Danish corporation tax is allocated between the jointly taxed Danish companies. For

furth

details, please refer to Note 10.

Indemnification agreements have been entered with the board members and members of senior management.

Except for the information disclosed above, the Company has not undertaken any significant transactions with members of the Key Management Personnel, or undertakings in which the identified related parties have a controlling or joint controlling interest.

Investments in Group Enterprises

12 Months Ended

Dec. 31, 2020

Investments In Group Enterprises [Abstract]

Investments in Group Enterprises

Note 22—Investments in Group Enterprises

Ascendis Pharma A/S’s (parent company) investments in Group enterprises comprise:


Subsidiaries	Domicile		Ownership
Ascendis Pharma GmbH		Germany		100	%
Ascendis Pharma, Inc.		USA		100	%
Ascendis Pharma Endocrinology, Inc.		USA		100	%
Ascendis Pharma Ophthalmology Division A/S		Denmark		100	%
Ascendis Pharma Endocrinology Division A/S		Denmark		100	%
Ascendis Pharma Bone Diseases A/S		Denmark		100	%
Ascendis Pharma Growth Disorders A/S		Denmark		100	%
Ascendis Pharma Oncology Division A/S		Denmark		100	%

Associate	Domicile		Ownership
VISEN Pharmaceuticals		Cayman Island		50	%

Ownership

12 Months Ended

Dec. 31, 2020

Ownership

Note 23—Ownership

The following investors, or groups of affiliated investors, are known by us to beneficially own more than 5% of the Company’s outstanding ordinary shares at December 31, 2020:

•

T. Rowe Price Associates, Inc., USA

•

Entities affiliated with RA Capital Management, LLC, USA

•

Entities affiliated with Artisan Partners Limited Partnership, USA

•

Entities affiliated with FMR LLC, USA

•

Baker Bros. Advisors LP, USA

•

Entities affiliated with Wellington Management Group LLP, USA

•

Entities affiliated with Janus Henderson Group plc, United Kingdom

The Company’s American Depository Shares are held through BNY (Nominees) Limited as nominee, of The Bank of New York Mellon, UK (as registered holder of the Company’s outstanding ADSs).

Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events

Note 24—Subsequent Events

On January 8, 2021, the Company entered into an equity investment of

$12.5

million in its associate VISEN as part of VISEN’s

$150

million Series B financing. Following VISEN’s Series B financing, the Company retains

approximately

of VISEN’s issued and outstanding shares. As a result, Ascendis expects to recognize a

non-cash

gain in the first quarter of 2021 of €42.3 million.

The Series B financing does not change the Company’s accounting treatment of VISEN.

No other events have occurred after the reporting date that would influence the evaluation of these consolidated financial statements.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Changes in Accounting Policies and Disclosures

Basis of Preparation

These consolidated financial statements have been prepared under the historical cost convention, apart from certain financial instruments that are measured at fair value at initial recognition.

Going Concern

Basis of Consolidation

Consolidation Principles

Control over an enterprise is reassessed if facts and circumstances indicate that there are changes to one or more of the three elements of control, respectively:

•

The contractual arrangement(s) with the other vote holders of the enterprise;

•

The Company’s voting rights and potential voting rights; and

•

Rights arising from other contractual arrangements.

All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between group enterprises are eliminated in full on consolidation.

Investment in Associates

Foreign Currency

Functional and Presentation Currency

Translation of Transactions and Balances

non-monetary

items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions.

Currency Translation of Group Enterprises

Business Combinations

pre-acquisition

balance sheet if they constitute a liability of the acquired enterprise. Allowance is made for the tax effect of the adjustments made.

The excess of the consideration transferred, the amount of any

non-controlling

interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired are all recorded as goodwill.

Revenue

•

Research and Development Costs

non-current

assets used in research and development activities.

non-human

subjects, prior to filing an Investigational New Drug Application, or IND, or equivalent. Research costs are recognized in the consolidated statement of profit or loss when incurred.

pre-defined

attributes and measurement principles (i.e., number of patients enrolled, achieving project milestones, etc.).

(pre-launch

inventories).

Selling, General and Administrative Expenses

Selling, general and administrative expenses comprise salaries and other personnel costs including pension and share-based payment, office supplies, cost of facilities, and depreciation of

non-current

assets related to general, administrative activities, and

pre-commercial

activities. Selling, general and administrative expenses are recognized in the consolidated statement of profit or loss in the period to which they relate.

Share-based Incentive Programs

Where the terms and conditions for an equity-settled grant is modified, we recognize as minimum the services measured at the grant date fair value over the vesting period. Additionally, we

re-measure

Finance Income and Expenses

Income Taxes

Deferred tax is recognized according to the balance sheet liability method of all temporary differences between carrying amounts and

tax-based

Deferred tax assets, including the tax base of tax loss carry forwards, are recognized in the statement of financial position at their estimated realizable value, either as a

set-off

Intangible assets

Goodwill

Goodwill acquired in a business combination is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for

non-controlling

interests over the net identifiable assets acquired and liabilities assumed.

Software

Software assets comprise administrative applications and serve general purposes to support operations.

Property, Plant and Equipment

Property, plant and equipment primarily comprises leasehold improvements, office facilities, and process equipment and tools which are located at CMOs.

right-of-use

Depreciation is calculated on a straight-line basis, based on an asset’s expected useful life, being within the following ranges:


Process plant and machinery			5 - 10 years
Other fixtures and fittings, tools and equipment			3 - 5 years
Leasehold improvements			3 - 11 years
Right-of-use assets			2 - 11 years

Depreciation methods, useful lives and residual amounts are reassessed at least annually.

Impairment

non-financial

assets, other than goodwill, are reviewed for possible reversal at each reporting date.

Receivables

Receivables comprise trade receivables and other receivables, which are separately presented in the consolidated statements of financial position.

Prepayments

Prepayments comprise advance payments relating to a future financial period. Prepayments are measured at cost.

Marketable Securities

non-current

assets, as appropriate.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and

on-demand

Allowance for Expected Credit Losses on Financial Assets

12-month

ECL is the same as lifetime ECL. Credit risk is continuously tracked and monitored in order to identify significant deterioration. For those credit exposures for which there ha

Shareholders' Equity

Shareholders’ Equity

The share capital comprises the nominal amount of the parent company’s ordinary shares, each at a nominal value of DKK 1, or approximately €0.13. All shares are fully paid.

Leases

On January

Since

right-of-use

assets was measured at the present value of the remaining lease payments, discounted using an estimated incremental borrowing rate at January 1, 2019.

sub-lessor.

Right-of-use

Assets

Right-of-use

assets are recognized at the lease commencement date, defined as the date the underlying asset is available for use.

Right-of-use

assets are measured at cost, less any accumulated depreciations and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of

right-of-use

assets include the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any incentives received. In addition,

right-of-use

assets also include an estimate of costs to be incurred by the Company in dismantling or restoring the underlying asset to the condition required by the terms and condition of the lease.

Right-of-use

assets are presented as part of property, plant and equipment, and depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

Lease Liabilities

non-lease

components are excluded. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the consolidated statement of profit or loss when incurred.

Trade Payables and Accrued Expenses

Trade payables and accrued expenses are measured at amortized cost.

Other Liabilities

Other

liabilities

comprise payables to public authorities, and short-term employee benefits. Other

liabilities

are measured at their

net-realizable

values.

Contract Liabilities

up-front

payments under collaboration and license agreements, relating to license grants or

up-front

funding of development activities.

Cash Flow Statement

The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year.

Cash flows from operating activities are presented using the indirect method and calculated as the profit or loss adjusted for

non-cash

items, working capital changes as well as finance income, finance expenses and income taxes paid.

Cash flows from financing activities comprise payments related to lease liabilities, and changes in the share capital of Ascendis Pharma A/S and related costs.

Cash and cash equivalents comprise cash and

on-demand

deposits with financial institutions, and highly liquid marketable securities with a maturity of three months or less after the date of acquisition (trade-date).

Segment Reporting

Basic EPS

Basic Earnings per Share, or EPS, is calculated as the consolidated net income or loss from continuing operations for the period divided by the weighted average number of ordinary shares outstanding.

Diluted EPS

New International Financial Reporting Standards Not Yet Effective

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Asset's Expected Useful Life

Depreciation is calculated on a straight-line basis, based on an asset’s expected useful life, being within the following ranges:


Process plant and machinery			5 - 10 years
Other fixtures and fittings, tools and equipment			3 - 5 years
Leasehold improvements			3 - 11 years
Right-of-use assets			2 - 11 years

Revenue (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Revenue Recognized in Consolidated Statement of Profit or Loss

Revenue has been recognized in the consolidated statements of profit or loss with the following amounts:


	2020		2019		2018
	(EUR’000)
Revenue from external customers
Revenue from rendering of services (recognized over time)		2,140		9,919		1,215
Sale of clinical supply (recognized at a point in time)		2,206		804		—
“Right-to-use” licenses (recognized at a point in time)		2,607		2,652		9,366

Total revenue (1)		6,953		13,375		10,581


Attributable to
VISEN Pharmaceuticals (1)	6,880	13,371	10,508
Other collaboration partners	73	4	73

Total revenue	6,953	13,375	10,581


Total revenue specified per geographical location
North America	2,679	2,652	10,581
China	4,274	10,723	—

Total revenue	6,953	13,375	10,581

(1)	“Total revenue” includes recognition of previously deferred revenue/internal profit from associate of €3.5 million and €6.5 million for the years ended December 31, 2020 and 2019, respectively.

Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of intangible assets, and property, plant and equipment

The Company’s intangible assets and property, plant and equipment located by country are specified below,

and

defines the Company’s

non-current

segment assets:


	2020		2019
	(EUR’000)
Non-current segment assets
Denmark (domicile country)		20,288		15,738
North America		85,476		27,275
Germany		8,065		5,551

Total non-current segment assets		113,829		48,564

Investment in associate		9,176		15,538
Marketable securities		115,280		—
Other receivables		1,375		1,463

Total non-current assets		239,660		65,565

Research and Development Costs (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure Of Research And Development Expense [Abstract]

Summary of Research and Development Costs

Research and development costs are specified by their nature in the following table:


	2020		2019		2018
	(EUR’000)
Research and development costs
Employee costs		92,468		61,890		34,146
Depreciation		7,311		5,282		827
External costs		161,125		124,449		105,308

Total research and development costs		260,904		191,621		140,281

Employee Cost (Tables)

12 Months Ended

Dec. 31, 2020

Statement [LineItems]

Summary of Employee Cost


	2020		2019		2018
	(EUR’000)
Employee costs
Wages and salaries		77,374		49,142		29,418
Share-based payment		53,170		37,486		19,652
Pensions (defined contribution plans)		943		648		444
Social security costs		5,358		3,613		1,793

Total employee costs		136,845		90,889		51,307

Included in the profit or loss
Research and development costs		92,468		61,890		34,146
Selling, general, and administrative expenses		44,377		28,999		17,161

Total employee costs		136,845		90,889		51,307

Average number of employees		410		274		167

Summary of Weighted Average Exercise Prices and Movements in Warrants

The following table specifies the number and weighted average exercise prices of, and movements in warrants during the year:


	Total Warrants			Weighted Average Exercise Price EUR
Outstanding at January 1, 2018		4,621,154			17.62

Granted during the year		1,637,375			54.43
Exercised during the year (1)		(611,683	)		10.82
Forfeited during the year		(35,217	)		28.24
Expired during the year		—			—

Outstanding at December 31, 2018		5,611,629			29.03

Vested at the reporting date		2,478,770			15.81

Granted during the year		1,300,600			97.01
Exercised during the year (1)		(1,058,722	)		16.33
Forfeited during the year		(33,296	)		58.49
Expired during the year		—			—

Outstanding at December 31, 2019		5,820,211			46.36

Vested at the reporting date		2,705,693			24.93

Granted during the year		1,485,931			137.57
Exercised during the year (1)		(905.395	)		30.56
Forfeited during the year		(252,743	)		64.99
Expired during the year		—			—

Outstanding at December 31, 2020		6,148,004			69.97

Vested at the reporting date		3,044,827			37.29

Schedule of Weighted Average Exercise Price and Weighted Remaining Contractual Life for Outstanding Warrants

The following table specifies the weighted average exercise prices and weighted average remaining contractual life for outstanding warrants at December 31, 2020, per grant year.


	Number of Outstanding Warrants		Weighted Average Exercise Price EUR		Weighted Average Remaining Life (months)
Granted in 2012-2017		2,247,134		20.83		66
Granted in 2018		1,288,400		54.56		94
Granted in 2019		1,143,436		96.98		105
Granted in 2020		1,469,034		137.63		117

Outstanding at December 31, 2020		6,148,004		69.97		91

Summary of Fair Values for Warrant Grants

The following table summarizes the input to the Black-Scholes Option Pricing model and the calculated fair values for warrant grants in 2020, 2019 and 2018:


	2020	2019	2018
Expected volatility	52 – 55%	52 – 54%	53 – 57%
Risk-free interest rate	(0.93) – (0.32)%	(0.77) – (0.05)%	(0.23) –0.46%
Expected life of warrants (years)	5.05 – 7.10	5.05 – 7.10	5.05 – 7.14
Weighted average exercise price	€137.57	€97.01	€54.43
Fair value of warrants granted in the year	€48.43 – 75.77	€27.24 – 55.64	€17.90 – 31.81

Key management personnel of entity or parent [member]

Statement [LineItems]

Summary of Employee Cost

Compensation to Key Management Personnel included within total employee costs are summarized below:


	Board of Directors						Executive Board						Total
	2020		2019		2018		2020		2019		2018		2020		2019		2018
	(EUR ‘000)
Employee cost
Wages and salaries		250		265		244		2,372		1,815		1,565		2,622		2,080		1,809
Share-based payment		1,913		1,864		1,607		6,359		5,303		3,505		8,272		7,167		5,112
Social security costs		—		—		—		100		94		152		100		94		152

Total employee costs		2,163		2,129		1,851		8,831		7,212		5,222		10,994		9,341		7,073

Principal Accountant Fees and Services (Tables)

12 Months Ended

Dec. 31, 2020

Auditor's remuneration [abstract]

Summary of Principal Accountant Fees and Services


	2020		2019		2018
	(EUR’000)
Principal accountant fees and services
Audit fees		599		700		693
Tax fees		104		7		—
All other fees		22		—		62

Total principal accountant fees and services		725		707		755

Finance Income and Finance Expenses (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Finance Income and Finance Expenses


	2020		2019		2018
	(EUR’000)
Finance income
Interest income		1,812		10,056		4,020
Exchange rate gains		—		7,747		20,694

Total finance income		1,812		17,803		24,714

Finance expenses
Interest expenses		1,918		1,221		127
Exchange rate losses		78,924		—		—

Total finance expenses		80,842		1,221		127

Tax on Profit/(Loss) for the Year and Deferred Tax (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Tax on Profit/Loss and Deferred Tax


	2020			2019			2018
	(EUR’000)
Tax on profit/(loss) for the year:
Current tax (expense)/income		219			234			394

		219			234			394

Tax for the year can be explained as follows:
Profit/(loss) before tax		(419,174	)		(218,250	)		(130,491	)
Tax at the Danish corporation tax rate of 22%		92,218			48,015			28,708
Tax effect of:
Non-deductible costs		(11,815	)		(8,249	)		(4,327	)
Additional tax deductions		24,564			10,875			4,074
Impact from associate		(1,326	)		(1,680	)		(2,383	)
Other effects including effect of different tax rates		2,673			1,602			143
Deferred tax asset, not recognized		(106,095	)		(50,329	)		(25,821	)

Tax on profit/(loss) for the year		219			234			394

Effective tax rate		(0.05	)%		(0.11	)%		(0.30	)%


	2020			2019			2018
	(EUR’000)
Specification of Deferred Tax Assets
Tax deductible losses		227,234			123,234			74,120
Other temporary differences		7,726			5,631			4,416
Deferred tax asset, not recognized		(234,960	)		(128,865	)		(78,536	)

Total Deferred Tax Assets at December 31		0			0			0

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Goodwill and Software


	Goodwill		Software		Total
	(EUR’000)
Cost:
At January 1, 2019		3,495		—		3,495
Additions		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2019		3,495		—		3,495

Additions		—		2,222		2,222
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2020		3,495		2,222		5,717

Accumulated amortization and impairments:
At January 1, 2019		—		—		—
Amortization charge		—		—		—
Impairment charge		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2019		—		—		—

Amortization charge		—		—		—
Impairment charge		—		—		—
Disposals		—		—		—
Foreign exchange translation		—		—		—

At December 31, 2020		—		—		—

Carrying amount:

At December 31, 2019		3,495		—		3,495

At December 31, 2020		3,495		2,222		5,717

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Property, Plant and Equipment


	Plant and Machinery			Other Equipment			Leasehold Improve- ments			Right-of-Use Assets			Total
	(EUR’000)
Cost:
At January 1, 2019		5,645			2,595			875			—			9,115
Adoption of IFRS 16, “Leases”		—			—			—			18,437			18,437
Additions		2,393			1,499			3,418			21,225			28,535
Disposals		—			(154	)		(7	)		—			(161	)
Foreign exchange translation		—			4			2			457			463

At December 31, 2019		8,038			3,944			4,288			40,119			56,389

Additions		7,169			1,635			4,849			64,582			78,235
Disposals		(296	)		(221	)		(14	)		—			(531	)
Foreign exchange translation		(289	)		(183	)		(588	)		(5,135	)		(6,195	)

At December 31, 2020		14,622			5,175			8,535			99,566			127,898

Accumulated depreciation:
At January 1, 2019		(3,448	)		(954	)		(388	)		—			(4,790	)
Depreciation charge		(523	)		(758	)		(170	)		(5,237	)		(6,688	)
Disposals		—			154			—			—			154
Foreign exchange translation		—			(5	)		—			9			4

At December 31, 2019		(3,971	)		(1,563	)		(558	)		(5,228	)		(11,320	)

Depreciation charge		(1,030	)		(956	)		(605	)		(6,857	)		(9,448	)
Disposals		204			191			7			—			402
Foreign exchange translation		16			41			22			501			580

At December 31, 2020		(4,781	)		(2,287	)		(1,134	)		(11,584	)		(19,786	)

Carrying amount:

At December 31, 2019		4,067			2,381			3,730			34,891			45,069

At December 31, 2020		9,841			2,888			7,401			87,982			108,112

Summary of Depreciation Charges

Depreciation charges are specified below:


	2020		2019		2018
	(EUR’000)
Depreciation charges
Research and development costs		7,311		5,282		827
Selling , g eneral and administrative expenses		2,137		1,406		53

Total depreciation charges		9,448		6,688		880

Investment in Associate (Tables)

12 Months Ended

Dec. 31, 2020

VISEN Pharmaceuticals [member]

Statement [LineItems]

Schedule of Financial Information of Investment in VISEN

The following table illustrates the summarized relevant financial information of VISEN:


VISEN Pharmaceuticals
Principal place of business			China
Ownership (at December 31, 2020)			50%


	2020			2019
	(EUR’000)
Statement of profit or loss
Profit / (loss) for the year from continuing operations		(19,049	)		(16,226	)

Total comprehensive income		(19,049	)		(16,226	)

Statement of financial position
Non-current assets		16,635			23,291
Current assets		20,373			32,446

Total assets		37,008			55,737

Equity		33,708			53,820
Non-current liabilities		152			250
Current liabilities		3,148			1,667

Total equity and liabilities		37,008			55,737

Company’s share of equity before eliminations		16,854			26,910
Elimination of internal profit recognized at December 31		(7,678	)		(11,372	)

Company’s share of equity		9,176			15,538

Investment in associate at December 31		9,176			15,538

Other Receivables (Tables)

12 Months Ended

Dec. 31, 2020

Other Receivables [Abstract]

Disclosure of Detailed Information OF Other Receivables Explanatory [Text Block]

Other receivables comprise following:


	2020		2019
	(EUR’000)
Other receivables
Deposits		1,375		1,463
Income tax receivables		778		1,473
VAT receivables		5,276		2,797
Other receivables		903		339

Total other receivables		8,332		6,072

Classified based on expected realization
Non-current assets		1,375		1,463
Current assets		6,957		4,609

Total other receivables		8,332		6,072

Share Capital (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Number of Shares

The number of shares of the Company are as follows:


	2020		2019		2018		2017		2016
Changes in share capital
Beginning of year		47,985,837		42,135,448		36,984,292		32,421,121		25,128,242
Increase through cash contribution		5,764,549		5,850,389		5,151,156		4,563,171		7,292,879

End of year		53,750,386		47,985,837		42,135,448		36,984,292		32,421,121

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Development In Lease Liabilities

Development in lease liabilities are specified below:


	Beginning of period			Additions		Accretion of interests		Cash out-flow (2)			Foreign exchange translation (non-cash item)			End of period
	(EUR’000)
Lease liabilities
December 31, 2020		36,619			64,582		1,617		(5,990	)		(4,853	)		91,975

December 31, 2019		17,700	(1)		21,240		1,014		(3,870	)		535			36,619

(1)	Beginning balance, December 31, 2019, includes the impact from implementing IFRS 16.

(2)	Total cash outflow, including prepaid leases was €6.0 million and €4.5 million for the years ended December 31, 2020 and 2019, respectively.

Summary of Expenses, Relating To Lease Activities In The Consolidated Statements


	2020		2019
	(EUR’000)
Lease expense
Depreciation (research and development, Note 12)		4,885		3,943
Depreciation (selling, general and administration, Note 12)		1,972		1,294
Expenses relating to short term leases and leases of low value assets (research and development and selling, general and administration)		470		202
Lease interest (finance expenses, Note 9 )		1,617		1,014

Total lease expenses		8,944		6,453

Financial Risk Management and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Financial Assets and Liabilities

Financial assets and financial liabilities comprise the following:


	2020		2019
	(EUR’000)
Financial assets
Trade receivables		387		804
Other receivables		2,251		1,463
Marketable securities		249,558		—
Cash and cash equivalents		584,517		598,106

Financial assets measured at amortized cost		836,713		600,373

Financial liabilities
Lease liabilities		91,975		36,619
Trade payables and accrued expenses		21,897		27,765

Financial liabilities measured at amortized cost		113,872		64,384

Summary of Marketable securities

The composition of the portfolio and its fair values are specified in the following table (the Company did not hold any marketable securities at December 31, 2019):


	Carrying amount		Fair value
	(EUR’000)
December 31, 2020
Marketable securities
U.S. Treasury bills		46,243		46,245
U.S. Government Bonds		62,088		62,101
Commercial papers		10,583		10,581
Corporate bonds		121,282		121,234
Agency bonds		9,362		9,369

Total marketable securities		249,558		249,530

Classified based on maturity profiles
Non-current assets		115,280		115,277
Current assets		134,278		134,253

Total marketable securities		249,558		249,530

Specified by rate structure
Fixed rate		175,757		175,732
Floating rate		16,975		16,972
Zero-coupon		56,826		56,826

Total marketable securities		249,558		249,530

Specified by credit-rating
AAA- – AA-		93,229		93,240
A+ – A-		99,503		99,464
A-1+		56,826		56,826

Total marketable securities		249,558		249,530

Summary of Foreign Currency Sensitivity Analysis


			Hypothetical impact on consolidated financial statements
	Nominal positions		Increase in foreign exchange rate			Profit and loss before tax		Equity before. tax
	(EUR ‘000)
December 31, 2020
USD/EUR		797,927		10	%		79,793		79,793
GBP/EUR		1,555		10	%		155		155


				Hypothetical impact on consolidated financial statements
	Nominal positions			Increase in foreign exchange rate			Profit and loss before tax			Equity before tax
	(EUR ‘000)
December 31, 2019
USD/EUR		477,764			10	%		47,776			47,776
GBP/EUR		(858	)		10	%		(86	)		(86	)

Summary of Maturity Analysis For Financial Liabilities

Maturity analysis for financial liabilities recognized in the consolidated statements of financial position are specified below.


	< 1 year		1-5 years		>5 years		Total contractual cash-flows		Carrying amount
	(EUR’000)
December 31, 2020
Lease liabilities		6,974		38,321		68,516		113,811		91,975
Trade payables and accrued expenses		21,897		—		—		21,897		21,897

Total financial liabilities		28,871		38,321		68,516		135,708		113,872


	< 1 year		1-5 years		>5 years		Total contractual cash-flows		Carrying amount
	(EUR’000)
December 31, 2019
Lease liabilities		6,020		19,405		17,606		43,031		36,619
Trade payables and accrued expenses		27,765		—		—		27,765		27,765

Total financial liabilities		33,785		19,405		17,606		70,796		64,384

Investments in Group Enterprises (Tables)

12 Months Ended

Dec. 31, 2020

Investments accounted for using equity method [abstract]

Summary of Investments in Group Enterprises

Ascendis Pharma A/S’s (parent company) investments in Group enterprises comprise:


Subsidiaries	Domicile		Ownership
Ascendis Pharma GmbH		Germany		100	%
Ascendis Pharma, Inc.		USA		100	%
Ascendis Pharma Endocrinology, Inc.		USA		100	%
Ascendis Pharma Ophthalmology Division A/S		Denmark		100	%
Ascendis Pharma Endocrinology Division A/S		Denmark		100	%
Ascendis Pharma Bone Diseases A/S		Denmark		100	%
Ascendis Pharma Growth Disorders A/S		Denmark		100	%
Ascendis Pharma Oncology Division A/S		Denmark		100	%

Associate	Domicile		Ownership
VISEN Pharmaceuticals		Cayman Island		50	%

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020 Segment kr / shares	Dec. 31, 2020 € / shares	Dec. 31, 2018 Leases
Disclosure of summary of significant accounting policies [line items]
Nominal value common shares \| kr / shares	kr 1
Number of finace leases \| Leases			0
Number of reportable segment \| Segment	1
Ordinary shares [member]
Disclosure of summary of significant accounting policies [line items]
Nominal value common shares \| € / shares		€ 0.13

Summary of Significant Accounting Policies - Schedule of Asset's Expected Useful Life (Detail)	12 Months Ended
	Dec. 31, 2020
Bottom of range [member] \| Process plant and machinery [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	5 years
Bottom of range [member] \| Other fixtures and fittings tools and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	3 years
Bottom of range [member] \| Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	3 years
Bottom of range [member] \| Right-of-use assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	2 years
Top of range [member] \| Process plant and machinery [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	10 years
Top of range [member] \| Other fixtures and fittings tools and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	5 years
Top of range [member] \| Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	11 years
Top of range [member] \| Right-of-use assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Asset's expected useful life	11 years

Significant Accounting Judgements, Estimates and Assumptions - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020 EUR (€) Licenses	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 EUR (€)
Disclosure of changes in accounting estimates [line items]
Project Cost Prepayments, Current	€ 10,500,000	€ 5,800,000
Project Cost Accruals, Current	17,000,000	10,500,000
Warrant compensation cost	53,200,000	€ 37,500,000	€ 19,700,000
Research and development cost [member]
Disclosure of changes in accounting estimates [line items]
Pre-Launch inventories written down	€ 0
Bottom of range [member]
Disclosure of changes in accounting estimates [line items]
Additional lease period in additon to Non cancellable period	2 years
Top of range [member]
Disclosure of changes in accounting estimates [line items]
Additional lease period in additon to Non cancellable period	10 years
Right to use [member]
Disclosure of changes in accounting estimates [line items]
Number of licenses classified as right to use \| Licenses	3

Revenue - Additional Information (Detail) - Visen Pharmaceuticals [Member] $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Disclosure of operating segments [line items]
Upfront payment received non cash consideration towards license revenue	$ 40.0
Percentage of ownership in the customer company	50.00%

Revenue - Schedule of Revenue Recognized in Consolidated Statements of Profit or Loss (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of operating segments [line items]
Revenue from the rendering of services (recognized over time)	€ 2,140	€ 9,919	€ 1,215
Sale of clinical supply (recognized at a point in time)	2,206	804
"Right-to-use" licenses (recognized at a point in time)	2,607	2,652	9,366
Total revenue	6,953	13,375	10,581
Revenue from external customers (geographical)
Total revenue	6,953	13,375	10,581
VISEN Pharmaceuticals [Member]
Disclosure of operating segments [line items]
Total revenue	6,880	13,371	10,508
Revenue from external customers (geographical)
Total revenue	6,880	13,371	10,508
Other collaboration partners [Member]
Disclosure of operating segments [line items]
Total revenue	73	4	73
Revenue from external customers (geographical)
Total revenue	73	4	73
North America [member]
Disclosure of operating segments [line items]
Total revenue	2,679	2,652	10,581
Revenue from external customers (geographical)
Total revenue	2,679	2,652	€ 10,581
China [member]
Disclosure of operating segments [line items]
Total revenue	4,274	10,723
Revenue from external customers (geographical)
Total revenue	€ 4,274	€ 10,723

Revenue - Schedule of Revenue Recognized in Consolidated Statements of Profit or Loss (Parenthetical) (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue [abstract]
Deferred revenue from associate	€ 3.5	€ 6.5

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2020 Segment
Disclosure of operating segments [line items]
Number of reportable segment	1

Segment Information - Summary of Intangible Assets, and Property, Plant and Equipment (Detail) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement [LineItems]
Non-current segment assets	€ 113,829	€ 48,564
Investment in associate	9,176	15,538
Marketable securities	115,280
Other receivables	1,375	1,463
Total non-current assets	239,660	65,565
Denmark [member]
Statement [LineItems]
Non-current segment assets	20,288	15,738
North America [member]
Statement [LineItems]
Non-current segment assets	85,476	27,275
Germany [member]
Statement [LineItems]
Non-current segment assets	€ 8,065	€ 5,551

Research and Development Costs - Summary of Research and Development Costs (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Research And Development Expense [Abstract]
Employee costs	€ 92,468	€ 61,890	€ 34,146
Depreciation	7,311	5,282	827
External costs	161,125	124,449	105,308
Total research and development costs	€ 260,904	€ 191,621	€ 140,281

Employee Cost - Summary of Employee Cost (Detail) € in Thousands	12 Months Ended
	Dec. 31, 2020 EUR (€) Employee	Dec. 31, 2019 EUR (€) Employee	Dec. 31, 2018 EUR (€) Employee
Disclosure of employee compensation costs [line items]
Wages and salaries	€ 77,374	€ 49,142	€ 29,418
Share-based payment	53,170	37,486	19,652
Pensions (defined contribution plans)	943	648	444
Social security costs	5,358	3,613	1,793
Total employee costs	€ 136,845	€ 90,889	€ 51,307
Average number of employees \| Employee	410	274	167
Research and development expenses [member]
Disclosure of employee compensation costs [line items]
Total employee costs	€ 92,468	€ 61,890	€ 34,146
General and administrative expense [member]
Disclosure of employee compensation costs [line items]
Total employee costs	44,377	28,999	17,161
Board of Directors [member]
Disclosure of employee compensation costs [line items]
Wages and salaries	250	265	244
Share-based payment	1,913	1,864	1,607
Total employee costs	2,163	2,129	1,851
Executive Board [member]
Disclosure of employee compensation costs [line items]
Wages and salaries	2,372	1,815	1,565
Share-based payment	6,359	5,303	3,505
Social security costs	100	94	152
Total employee costs	8,831	7,212	5,222
Key management personnel of entity or parent [member]
Disclosure of employee compensation costs [line items]
Wages and salaries	2,622	2,080	1,809
Share-based payment	8,272	7,167	5,112
Social security costs	100	94	152
Total employee costs	€ 10,994	€ 9,341	€ 7,073

Employee Cost - Additional Information (Detail) - Employee	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Board of Directors [member]
Disclosure of employee compensation costs [line items]
Number of persons	7	7	7
Executive Board [member]
Disclosure of employee compensation costs [line items]
Number of persons	2	2	2

Employee Cost - Warrant Activity - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020 € / shares shares	Dec. 31, 2019 € / shares	Dec. 31, 2018 € / shares	Dec. 31, 2017	Jan. 13, 2015
Disclosure of terms and conditions of share-based payment arrangement [line items]
Minimum percentage of share capital for equity transctions	50.00%
Payment of dividend from equity, maximum percentage	10.00%
Ratio of issuance of bonus shares					3
Warrant adjustment ratio based on bonus share issuance					3
Warrant exercise price adjustment ratio based on bonus share issuance					3
Weighted average remaining contractual life of outstanding	91 months	94 months	96 months
Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Aggregate number of other equity instruments granted	10,864,718
Aggregate number of other equity instruments cancelled \| shares	19,580
Aggregate number of other equity instruments exercised	4,176,645
Aggregate number of other equity instruments expired	2,168
Aggregate number of other equity instruments forfeited	518,321
Number of other equity instruments authorized	762,569
Vesting description	Up to 48 months
Warrant outstanding	6,148,004	5,820,211	5,611,629	4,621,154
Information about how fair value was measured, share options granted	Warrant compensation costs are determined with basis in the grant date fair value of the warrants granted and recognized over the vesting period. Fair value of the warrants is calculated at the grant dates by use of the Black-Scholes Option Pricing model with the following assumptions: (1) an exercise price equal to the estimated market price of our shares at the date of grant; (2) an expected lifetime of the warrants determined as a weighted average of the time from grant date to date of becoming exercisable and from grant date to expiry of the warrants; (3) a risk free interest rate equaling the effective interest rate on a Danish government bond with the same lifetime as the warrants; (4) no payment of dividends; and (5) a volatility for comparable companies for a historic period equaling the expected lifetime of the warrants. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the warrants is indicative of future trends. The expected volatility has been calculated using a simple average of daily historical data of comparable publicly traded companies, as we do not have sufficient data for the volatility of our own share price.
Warrants [member] \| Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price	€ 6.48	€ 6.48	€ 6.48
Warrants [member] \| Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price	€ 145.50	€ 107.14	€ 60.23
Warrants issued December 2012 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting description	Warrants granted generally vest over 48 months with 1/48 of the warrants vesting per month from the date of grant.
Vesting period	48 months
Warrants issued January 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting description	Effective from January 2015, certain warrants issued to board members vest over 24 months with 1/24 of the warrants vesting per month from the date of grant.
Vesting period	24 months
Outstanding warrants granted in connection with publishing annual or interim report [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of annual excercised period	2
Warrant excercised period	21 days
Warrant outstanding	403,467
Outstanding warrants granted in connection with preference D financing [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of annual excercised period	4
Warrant excercised period	21 days
Warrant outstanding	52,323
Warrants granted after December 18, 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of annual excercised period	4
Warrant outstanding	5,692,214

Employee Cost - Schedule of Warrant Activity (Detail)	12 Months Ended
Employee Cost - Schedule of Warrant Activity (Detail)	Dec. 31, 2020 € / shares	Dec. 31, 2019 € / shares	Dec. 31, 2018 € / shares
Disclosure Of Warrant Activity [line items]
Granted during the year	6,148,004
Granted during the year	€ 69.97
Warrants [member]
Disclosure Of Warrant Activity [line items]
Beginning balance	5,820,211	5,611,629	4,621,154
Granted during the year	1,485,931	1,300,600	1,637,375
Exercised during the year	(905,395)	(1,058,722)	(611,683)
Forfeited during the year	(252,743)	(33,296)	(35,217)
Expired during the year		0	0
Ending balance	6,148,004	5,820,211	5,611,629
Vested at the reporting date	3,044,827	2,705,693	2,478,770
Beginning balance	€ 46.36	€ 29.03	€ 17.62
Granted during the year	137.57	97.01	54.43
Exercised during the year	30.56	16.33	10.82
Forfeited during the year	64.99	58.49	28.24
Expired during the year		0	0
Ending balance	69.97	46.36	29.03
Vested at the reporting date	€ 37.29	€ 24.93	€ 15.81

Employee Cost - Schedule of Warrant Activity (Parenthetical) (Detail) - € / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
U.S. dollars [member]
Disclosure Of Warrant Activity [line items]
Weighted average share price	€ 128.32	€ 108.54	€ 58.01

Employee Cost - Schedule of Weighted Average Exercise Price and Weighted Remaining Contractual Life for Outstanding Warrants (Detail)	12 Months Ended
	Dec. 31, 2020 € / shares	Dec. 31, 2019	Dec. 31, 2018
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of Warrants, Granted	6,148,004
Weighted Average Exercise, Granted	€ 69.97
Weighted Average Life, Granted	91 months	94 months	96 months
Granted In 2012-2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2012-2017
Number of Warrants, Granted	2,247,134
Weighted Average Exercise, Granted	€ 20.83
Weighted Average Life, Granted	66 months
Granted in 2018 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2018
Number of Warrants, Granted	1,288,400
Weighted Average Exercise, Granted	€ 54.56
Weighted Average Life, Granted	94 months
Granted In 2019 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2019
Number of Warrants, Granted	1,143,436
Weighted Average Exercise, Granted	€ 96.98
Weighted Average Life, Granted	105 months
Granted In 2020 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2020
Number of Warrants, Granted	1,469,034
Weighted Average Exercise, Granted	€ 137.63
Weighted Average Life, Granted	117 months

Employee Cost - Summary of Fair Values for Warrant Grants (Detail) - Warrants [member]	12 Months Ended
	Dec. 31, 2020 yr € / shares	Dec. 31, 2019 yr € / shares	Dec. 31, 2018 yr € / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average exercise price	€ 137.57	€ 97.01	€ 54.43
Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Expected volatility	52.00%	52.00%	53.00%
Risk-free interest rate	(0.93%)	(0.77%)	(0.23%)
Expected life of warrants (years) \| yr	5.05	5.05	5.05
Fair value of warrants granted in the year	€ 48.43	€ 27.24	€ 17.90
Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Expected volatility	55.00%	54.00%	57.00%
Risk-free interest rate	(0.32%)	(0.05%)	0.46%
Expected life of warrants (years) \| yr	7.10	7.10	7.14
Fair value of warrants granted in the year	€ 75.77	€ 55.64	€ 31.81

Principal Accountant Fees and Services - Summary of Principal Accountant Fees and Services (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Auditor's remuneration [abstract]
Audit fees	€ 599	€ 700	€ 693
Tax fees	104	7
All other fees	22		62
Total principal accountant fees and services	€ 725	€ 707	€ 755

Finance Income and Finance Expenses - Schedule of Finance Income and Finance Expenses (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finance income
Interest income	€ 1,812	€ 10,056	€ 4,020
Exchange rate gains		7,747	20,694
Total finance income	1,812	17,803	24,714
Finance expenses
Interest expenses	1,918	1,221	127
Exchange rate losses	78,924
Total finance expenses	€ 80,842	€ 1,221	€ 127

Tax on Profit/(Loss) for the Year and Deferred Tax - Summary of Tax on Profit/Loss and Deferred Tax (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Tax on profit/(loss) for the year:
Current tax (expense)/income	€ 219	€ 234	€ 394
Current tax expense (income) and adjustments for current tax of prior periods	219	234	394
Tax for the year can be explained as follows:
Profit/(loss) before tax	(419,174)	(218,250)	(130,491)
Tax at the Danish corporation tax rate of 22%	92,218	48,015	28,708
Tax effect of:
Non-deductible costs	(11,815)	(8,249)	(4,327)
Additional tax deductions	24,564	10,875	4,074
Impact from associate	(1,326)	(1,680)	(2,383)
Other effects including effect of different tax rates	2,673	1,602	143
Deferred tax asset, not recognized	(106,095)	(50,329)	(25,821)
Tax on profit/(loss) for the year	€ 219	€ 234	€ 394
Effective tax rate	(0.05%)	(0.11%)	(0.30%)
Tax deductible losses	€ 227,234	€ 123,234	€ 74,120
Other temporary differences	7,726	5,631	4,416
Deferred tax asset, not recognized	(234,960)	(128,865)	(78,536)
Total Deferred Tax Assets at December 31	€ 0	€ 0	€ 0

Tax on Profit/(Loss) for the Year and Deferred Tax - Summary of Tax on Profit/Loss and Deferred Tax (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Major components of tax expense (income) [abstract]
Applicable tax rate	22.00%	22.00%	22.00%

Tax on Profit/(Loss) for the Year and Deferred Tax - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Major components of tax expense (income) [abstract]
Income taxes refund	€ 0.7	€ 0.7	€ 0.7
Tax losses carryforwards	1,043.8	560.2
Additional tax deductions, determined by annual warrants exercises by employees	€ 16.3	€ 10.2	€ 3.5

Intangible Assets - Summary of Goodwill (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period		€ 3,495
Intangible assets at ending period	€ 5,717
Goodwill [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period		3,495
Intangible assets at ending period	3,495
Computer software [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period
Intangible assets at ending period	2,222
Gross carrying amount [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period	3,495	3,495
Additions	2,222
Disposals
Foreign exchange translation
Intangible assets at ending period	5,717	3,495
Gross carrying amount [member] \| Goodwill [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period	3,495	3,495
Additions
Disposals
Foreign exchange translation
Intangible assets at ending period	3,495	3,495
Gross carrying amount [member] \| Computer software [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period
Additions	2,222
Disposals
Foreign exchange translation
Intangible assets at ending period	2,222
Accumulated impairment [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period
Amortization Charge
Impairment charge
Disposals
Foreign exchange translation
Intangible assets at ending period
Accumulated impairment [member] \| Goodwill [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period
Amortization Charge
Impairment charge
Disposals
Foreign exchange translation
Intangible assets at ending period
Accumulated impairment [member] \| Computer software [member]
Disclosure of detailed information about intangible assets [line items]
Intangible assets at beginning period
Amortization Charge
Impairment charge
Disposals
Foreign exchange translation
Intangible assets at ending period

Intangible Assets - Additional Information (Detail) - EUR (€) € in Millions	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about intangible assets [abstract]
Total unpaid additions to software	€ 0.5	€ 0.0

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	€ 45,069
Depreciation charge	(9,448)	€ (6,688)	€ (880)
Property, plant and equipment at ending period	108,112	45,069
Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	56,389	9,115
Adoption of IFRS 16 "Leases"		18,437
Additions	78,235	28,535
Disposals	(531)	(161)
Foreign exchange translation	(6,195)	463
Property, plant and equipment at ending period	127,898	56,389	9,115
Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(11,320)	(4,790)
Depreciation charge	(9,448)	(6,688)
Disposals	402	154
Foreign exchange translation	580	4
Property, plant and equipment at ending period	(19,786)	(11,320)	(4,790)
Plant and machinery [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	4,067
Property, plant and equipment at ending period	9,841	4,067
Plant and machinery [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	8,038	5,645
Additions	7,169	2,393
Disposals	(296)
Foreign exchange translation	(289)
Property, plant and equipment at ending period	14,622	8,038	5,645
Plant and machinery [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(3,971)	(3,448)
Depreciation charge	(1,030)	(523)
Disposals	204
Foreign exchange translation	16
Property, plant and equipment at ending period	(4,781)	(3,971)	(3,448)
Other equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	2,381
Property, plant and equipment at ending period	2,888	2,381
Other equipment [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	3,944	2,595
Additions	1,635	1,499
Disposals	(221)	(154)
Foreign exchange translation	(183)	4
Property, plant and equipment at ending period	5,175	3,944	2,595
Other equipment [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(1,563)	(954)
Depreciation charge	(956)	(758)
Disposals	191	154
Foreign exchange translation	41	(5)
Property, plant and equipment at ending period	(2,287)	(1,563)	(954)
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	3,730
Property, plant and equipment at ending period	7,401	3,730
Leasehold improvements [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	4,288	875
Additions	4,849	3,418
Disposals	(14)	(7)
Foreign exchange translation	(588)	2
Property, plant and equipment at ending period	8,535	4,288	875
Leasehold improvements [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(558)	(388)
Depreciation charge	(605)	(170)
Disposals	7
Foreign exchange translation	22
Property, plant and equipment at ending period	(1,134)	(558)	€ (388)
Right-of-use assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	34,891
Property, plant and equipment at ending period	87,982	34,891
Right-of-use assets [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	40,119
Adoption of IFRS 16 "Leases"		18,437
Additions	64,582	21,225
Foreign exchange translation	(5,135)	457
Property, plant and equipment at ending period	99,566	40,119
Right-of-use assets [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(5,228)
Depreciation charge	(6,857)	(5,237)
Foreign exchange translation	501	9
Property, plant and equipment at ending period	€ (11,584)	€ (5,228)

Property, Plant and Equipment - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [line items]
Assets under construction amounts	€ 2.3	€ 2.7
Construction expenditure incurred but not paid	€ 1.0	€ 2.1

Property, Plant and Equipment - Summary of Depreciations Charges (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	€ 9,448	€ 6,688	€ 880
Research and development costs [member]
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	7,311	5,282	827
Selling, general and administrative expense [member]
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	€ 2,137	€ 1,406	€ 53

Investment in Associate - Additional Information (Detail) € in Millions, $ in Millions		12 Months Ended
	Jan. 08, 2021 USD ($)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 EUR (€)
Major business combination [member]
Disclosure of associates [line items]
Consideration received	$ 150.0
VISEN
Disclosure of associates [line items]
Ownership		50.00%	50.00%
Consideration received			$ 40.0
Revenue from associate \| €		€ 0.2		€ 0.8
VISEN \| Major business combination [member]
Disclosure of associates [line items]
Consideration received	$ 12.5

Investment in Associate - Schedule of Financial Information of Investment in VISEN (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Profit or loss
Total comprehensive income/(loss)	€ (418,997)	€ (218,053)	€ (130,080)
Statement of financial position
Non-current assets	239,660	65,565
Current assets	740,133	611,167
Total assets	979,793	676,732
Equity	838,711	597,114	€ 280,050	€ 187,211
Non-current liabilities	88,278	31,628
Current liabilities	52,804	47,990
Total equity and liabilities	€ 979,793	676,732
VISEN Pharmaceuticals [member]
VISEN Pharmaceuticals
Principal place of business	China
Ownership	50.00%
Statement of Profit or loss
Profit / (loss) for the year from continuing operations	€ (19,049)	(16,226)
Total comprehensive income/(loss)	(19,049)	(16,226)
Statement of financial position
Non-current assets	16,635	23,291
Current assets	20,373	32,446
Total assets	37,008	55,737
Equity	33,708	53,820
Non-current liabilities	152	250
Current liabilities	3,148	1,667
Total equity and liabilities	€ 37,008	€ 55,737

Investment in Associate - Equity (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of associates and joint ventures [line items]
Investment in associate	€ 9,176	€ 15,538
VISEN Pharmaceuticals [member] \| Associates [member]
Disclosure of associates and joint ventures [line items]
Company's share of equity before eliminations	16,854	26,910
Elimination of internal profit recognized	(7,678)	(11,372)
Company's share of equity after eliminations	9,176	15,538
Investment in associate	€ 9,176	€ 15,538

Other Receivables (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Receivables [Abstract]
Deposits	€ 1,375	€ 1,463
Income tax receivables	778	1,473
VAT receivables	5,276	2,797
Other receivables	903	339
Total other receivables	8,332	6,072
OtherNoncurrentReceivables	1,375	1,463
Current assets	6,957	4,609
Total other receivables	€ 8,332	€ 6,072

Share Capital - Additional Information (Detail) - kr / shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of classes of share capital [abstract]
Number of shares issued	53,750,386	47,985,837	42,135,448	36,984,292	32,421,121	25,128,242
Share nominal value	kr 1

Share Capital - Summary of Number of Shares (Detail) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of classes of share capital [abstract]
Share capital beginning of year	47,985,837	42,135,448	36,984,292	32,421,121	25,128,242
Increase through cash contribution	5,764,549	5,850,389	5,151,156	4,563,171	7,292,879
Share capital end of year	53,750,386	47,985,837	42,135,448	36,984,292	32,421,121

Leases - Additional Information (Detail) € in Millions	12 Months Ended
Leases - Additional Information (Detail) € in Millions	Dec. 31, 2020 EUR (€)
Lease liabilities [member]
Disclosure of maturity analysis of operating lease payments [line items]
Right-of-use assets	€ 64.6
Bottom of range [member]
Disclosure of maturity analysis of operating lease payments [line items]
Optional Lease Extension Period	2 years
Lease Term	2 years
Lease Term Enforceable Year	2029
Lease Terminate	2026
Top of range [member]
Disclosure of maturity analysis of operating lease payments [line items]
Optional Lease Extension Period	10 years
Lease Term	11 years
Lease Term Enforceable Year	2037
Lease Terminate	2027

Leases - Summary of Development In Lease Liabilities (Detail) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Foreign exchange translation (non-cash item)

Beginning of period

€ 36,619

€ 17,700

^[1]

Additions

64,582

21,240

Accretion of interests

1,617

1,014

Cash out-flow

^[2]

(5,990)

(3,870)

(4,853)

535

End of period

€ 91,975

€ 36,619

[1]	Beginning balance, December 31, 2019, includes the impact from implementing IFRS 16.
[2]	Total cash outflow, including prepaid leases was €6.0 million and €4.5 million for the years ended December 31, 2020 and 2019, respectively.

Leases - Summary of Development In Lease Liabilities(Parenthetical) (Detail) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Lease liabilities [abstract]

Total Cash outflow for Leases

^[1]

€ 5,990

€ 3,870

[1]	Total cash outflow, including prepaid leases was €6.0 million and €4.5 million for the years ended December 31, 2020 and 2019, respectively.

Leases - Summary of Expenses, Relating To Lease Activities In The Consolidated Statements (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of quantitative information about right-of-use assets [line items]
Expenses relating to short term leases and leases of low value assets (research and development and selling, general and administration)	€ 470	€ 202
Lease interest	1,617	1,014
Total lease expenses	8,944	6,453
Research And Development Member
Disclosure of quantitative information about right-of-use assets [line items]
Depreciation	4,885	3,943
General And Administration Member
Disclosure of quantitative information about right-of-use assets [line items]
Depreciation	€ 1,972	€ 1,294

Contract Liabilities - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Contract liabilities [abstract]
Deferred income	€ 0.4	€ 0.9
Revenue recognized from deferred income	€ 1.0	€ 6.1	€ 0.0

Commitments and Contingencies - Additional Information (Detail) - EUR (€) € in Millions	Dec. 31, 2020	Dec. 31, 2019
Leasehold improvements [member]
Disclosure of commitments and contingencies [line items]
Contractual commitments	€ 15.8	€ 8.5

Financial Risk Management and Financial Instruments - Schedule of Financial assets and Liabilities (Detail) - EUR (€)
€ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Financial assets:

Other receivables

€ 8,332

€ 6,072

Cash and cash equivalents

584,517

598,106

€ 277,862

€ 195,351

Financial liabilities

Financial liabilities at amortised cost, class [member]

91,975

36,619

€ 17,700

^[1]

Financial liabilities

91,975

36,619

Financial liabilities measured at amortized cost

21,897

27,765

113,872

64,384

Financial assets at amortised cost, class [member]

Financial assets:

Trade receivables

387

804

Other receivables

2,251

1,463

Marketable Securities

249,558

Cash and cash equivalents

584,517

598,106

Financial assets measured at amortized cost

€ 836,713

€ 600,373

[1]	Beginning balance, December 31, 2019, includes the impact from implementing IFRS 16.

Financial Risk Management and Financial Instruments - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020 EUR (€)
Disclosure of detailed information about financial instruments [line items]
Current assets (liabilities)	€ 702,100
Direct Exposure \| Follow On Offering
Disclosure of detailed information about financial instruments [line items]
Current assets (liabilities)	797,900
Proceeds From Common Stock And Marketable Securities	€ 797,900
Liquidity risk [member]
Disclosure of detailed information about financial instruments [line items]
Weighted Average Duration Of Marketable Securities Current	6 years
Weighted Average Duration Of Marketable Securities Noncurrent	17 years 3 months 18 days
Weighted Average Duration Of Marketable Securities	11 years 2 months 12 days
Financial Assets Duration Period	0 months
Danish Kroner (DKK) [member]
Disclosure of detailed information about financial instruments [line items]
Foreign currency target percentage	4.50%

Financial Risk Management and Financial Instruments -Summary of Marketable securities (Details) € in Thousands	Dec. 31, 2020 EUR (€)
Disclosure Detailed Information About Marketable Securities [Line Items]
Non-current financial assets available-for-sale	€ 115,280
Current financial assets available-for-sale	134,278
Financial assets at amortised cost, class [member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	249,558
Non-current financial assets available-for-sale	115,280
Current financial assets available-for-sale	134,278
Financial assets at amortised cost, class [member] \| AAA- – AA [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	93,229
Financial assets at amortised cost, class [member] \| A+ – A [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	99,503
Financial assets at amortised cost, class [member] \| A-1+ [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	56,826
Financial assets at amortised cost, class [member] \| Fixed interest rate [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	175,757
Financial assets at amortised cost, class [member] \| Floating interest rate [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	16,975
Financial assets at amortised cost, class [member] \| Zero Coupon [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	56,826
Financial assets at amortised cost, class [member] \| US Treasury bills [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	46,243
Financial assets at amortised cost, class [member] \| US Government Bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	62,088
Financial assets at amortised cost, class [member] \| Commercial papers [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	10,583
Financial assets at amortised cost, class [member] \| Corporate bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	121,282
Financial assets at amortised cost, class [member] \| Agency bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	9,362
Financial assets at fair value, class [member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	249,530
Non-current financial assets available-for-sale	115,277
Current financial assets available-for-sale	134,253
Financial assets at fair value, class [member] \| AAA- – AA [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	93,240
Financial assets at fair value, class [member] \| A+ – A [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	99,464
Financial assets at fair value, class [member] \| A-1+ [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	56,826
Financial assets at fair value, class [member] \| Fixed interest rate [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	175,732
Financial assets at fair value, class [member] \| Floating interest rate [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	16,972
Financial assets at fair value, class [member] \| Zero Coupon [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets	56,826
Financial assets at fair value, class [member] \| US Treasury bills [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	46,245
Financial assets at fair value, class [member] \| US Government Bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	62,101
Financial assets at fair value, class [member] \| Commercial papers [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	10,581
Financial assets at fair value, class [member] \| Corporate bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	121,234
Financial assets at fair value, class [member] \| Agency bonds [Member]
Disclosure Detailed Information About Marketable Securities [Line Items]
Financial assets available-for-sale	€ 9,369

Financial Risk Management and Financial Instruments - Schedule of Foreign Currency Sensitivity Analysis (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
US dollars to Euro [member]
Disclosure of detailed information about financial instruments [line items]
Nominal positions	€ 797,927	€ 477,764
Increase in foreign exchange rate	10.00%	10.00%
Profit and loss before tax	€ 79,793	€ 47,776
Equity before tax	79,793	47,776
British pounds to Euro [member]
Disclosure of detailed information about financial instruments [line items]
Nominal positions	€ 1,555	€ (858)
Increase in foreign exchange rate	10.00%	10.00%
Profit and loss before tax	€ 155	€ (86)
Equity before tax	€ 155	€ (86)

Financial Risk Management and Financial Instruments - Liquidity Risk Management (Detail) - EUR (€)
€ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

^[1]

Disclosure of maturity analysis for derivative financial liabilities [line items]

€ 91,975

€ 36,619

€ 17,700

21,897

27,765

113,872

64,384

113,811

43,031

21,897

27,765

Disclosure of maturity analysis for derivative financial liabilities [line items]

135,708

70,796

Within 1 year [member]

6,974

6,020

21,897

27,765

Within 1 to 5 years [member]

28,871

33,785

Disclosure of maturity analysis for derivative financial liabilities [line items]

38,321

19,405

Disclosure of maturity analysis for derivative financial liabilities [line items]

38,321

19,405

After 5 years [member]

68,516

17,606