View Filing Data

Print Document View Excel Document

Cover Page	12 Months Ended
Cover Page	Dec. 31, 2019 shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	ASND
Entity Registrant Name	Ascendis Pharma A/S
Entity Central Index Key	0001612042
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	47,985,837
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Document Accounting Standard	International Financial Reporting Standards
Entity Incorporation, State or Country Code	G7
Entity Address, Country	DK
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Registration Statement	false
Title of 12(b) Security	Ordinary shares
Security Exchange Name	NASDAQ
Entity File Number	001-36815
Business Contact [member]
Document Information [Line Items]
Contact Personnel Name	Jan Møller Mikkelsen
City Area Code	+45
Local Phone Number	70 22 22 44
American Depositary Shares [member]
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true

Consolidated Statements of Profit or Loss and Other Comprehensive Income - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Profit or loss [abstract]

Revenue

€ 13,375

€ 10,581

€ 1,530

Research and development costs

(191,621)

(140,281)

(99,589)

General and administrative expenses

(48,473)

(25,057)

(13,482)

Operating profit/(loss)

(226,719)

(154,757)

(111,541)

Share of profit/(loss) of associate

(8,113)

(321)

Finance income

17,803

24,714

923

Finance expenses

(1,221)

(127)

(13,756)

Profit/(loss) before tax

(218,250)

(130,491)

(124,374)

Tax on profit/(loss) for the year

234

394

477

Net profit/(loss) for the year

(218,016)

(130,097)

(123,897)

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations

(37)

Other comprehensive income/(loss) for the year, net of tax

(37)

Total comprehensive income/(loss)

(218,053)

(130,080)

(123,832)

Profit/(loss) for the year attributable to owners of the Company

(218,016)

(130,097)

(123,897)

Total comprehensive income/(loss) for the year attributable to owners of the Company

€ (218,053)

€ (130,080)

€ (123,832)

Basic and diluted earnings/(loss) per share

€ (4.69)

€ (3.17)

€ (3.68)

Number of shares used for calculation (basic and diluted)

^[1]

46,506,862

41,085,237

33,626,305

[1]

A total of 5,820,211 warrants outstanding as of December 31, 2019 (a total of 5,611,629 warrants and 4,621,154 warrants outstanding as of December 31, 2018 and 2017, respectively) can potentially dilute earnings per share in the future but have not been included in the calculation of diluted earnings per share because they are antidilutive for the periods presented.

Consolidated Statements of Profit or Loss and Other Comprehensive Income (Parenthetical) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Warrants [member]
Statement [LineItems]
Warrants outstanding	5,820,211	5,611,629	4,621,154

Consolidated Statements of Financial Position - EUR (€) € in Thousands	Dec. 31, 2019	Dec. 31, 2018
Non-current assets
Intangible assets	€ 3,495	€ 3,495
Property, plant and equipment	45,069	4,325
Investment in associate	15,538	17,083
Deposits	1,463	1,158
Total non-current assets	65,565	26,061
Current assets
Receivable from associate	804
Trade receivables		6
Other receivables	3,136	1,775
Prepayments	7,648	12,415
Income taxes receivable	1,473	849
Cash and cash equivalents	598,106	277,862
Total current assets	611,167	292,907
Total assets	676,732	318,968
Equity
Share capital	6,443	5,659
Distributable equity	590,671	274,391
Total equity	597,114	280,050
Non-current liabilities
Lease liabilities	30,720
Other payables	908
Total non-current liabilities	31,628
Current liabilities
Lease liabilities	5,899
Contract liabilities	858	6,902
Trade payables	27,765	19,740
Other payables	13,349	12,267
Income taxes payable	119	9
Total Current liabilities	47,990	38,918
Total liabilities	79,618	38,918
Total equity and liabilities	€ 676,732	€ 318,968

Consolidated Statements of Changes in Equity - EUR (€) € in Thousands	Total	Issued Capital [member]	Share Premium [member]	Foreign Currency Translation Reserve [member]	Share-based Payment Reserve [member]	Accumulated Deficit [member]
Equity at Dec. 31, 2016	€ 176,613	€ 4,354	€ 298,567	€ (79)	€ 13,084	€ (139,313)
Statement [LineItems]
Loss for the year	(123,897)					(123,897)
Other comprehensive loss, net of tax	65			65
Total comprehensive income/(loss)	(123,832)			65		(123,897)
Share-based payment (Note 6)	9,709				9,709
Capital increase	133,109	613	132,496
Cost of capital increase	(8,388)		(8,388)
Equity at Dec. 31, 2017	187,211	4,967	422,675	(14)	22,793	(263,210)
Statement [LineItems]
Loss for the year	(130,097)					(130,097)
Other comprehensive loss, net of tax	17			17
Total comprehensive income/(loss)	(130,080)			17		(130,097)
Share-based payment (Note 6)	19,652				19,652
Capital increase	216,385	692	215,693
Cost of capital increase	(13,118)		(13,118)
Equity at Dec. 31, 2018	280,050	5,659	625,250	3	42,445	(393,307)
Statement [LineItems]
Loss for the year	(218,016)					(218,016)
Other comprehensive loss, net of tax	(37)			(37)
Total comprehensive income/(loss)	(218,053)			(37)		(218,016)
Share-based payment (Note 6)	37,486				37,486
Capital increase	529,332	784	528,548
Cost of capital increase	(31,701)		(31,701)
Equity at Dec. 31, 2019	€ 597,114	€ 6,443	€ 1,122,097	€ (34)	€ 79,931	€ (611,323)

- Definition

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2019-01-01
-Paragraph 18
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=7&code=ifrs-tx-2019-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2019-03-27

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 24
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2019-03-27

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2019-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2019-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2019-03-27

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 28
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2019-03-27

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
-Number 4
-IssueDate 2019-01-01
-Paragraph 39L
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=4&code=ifrs-tx-2019-en-b&anchor=para_39L_e&doctype=Standard
-URIDate 2019-03-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 23
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_23&doctype=Standard
-URIDate 2019-03-27

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2019-03-27

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2019-03-27

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2021-01-01
-Name IFRS
-Number 17
-IssueDate 2019-01-01
-Paragraph 113
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2019-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2019-03-27

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 81A
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2019-03-27

+ Details

Consolidated Cash Flow Statements - EUR (€) € in Thousands	12 Months Ended
Consolidated Cash Flow Statements - EUR (€) € in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net profit/(loss) for the year	€ (218,016)	€ (130,097)	€ (123,897)
Reversal of non-cash consideration regarding revenue	(6,522)	(10,508)
Reversal of share of profit/(loss) of associate	8,113	321
Reversal of finance income	(17,803)	(24,714)	(923)
Reversal of finance expenses	1,221	127	13,756
Reversal of tax charge	(234)	(394)	(477)
Adjustments for:
Share-based payment	37,486	19,652	9,709
Depreciation and amortization	6,689	880	734
Changes in working capital:
Deposits	(305)	(865)	(25)
Receivables	(1,877)	(183)	(671)
Prepayments	4,766	(5,508)	(4,945)
Trade payables and other payables	7,530	8,262	10,755
Contract liabilities (deferred income)	(6,044)		(94)
Cash flows generated from/(used in) operations	(184,996)	(143,027)	(96,078)
Finance income received	10,056	4,020	923
Finance expenses paid	(717)	(127)	(97)
Income taxes received/(paid)	(279)	332	153
Cash flows from/(used in) operating activities	(175,936)	(138,802)	(95,099)
Investing activities
Acquisition of property, plant and equipment	(5,159)	(2,648)	(941)
Cash flows from/(used in) investing activities	(5,159)	(2,648)	(941)
Financing activities
Finance lease liabilities	(4,038)
Capital increase	529,332	216,385	133,109
Cost of capital increase	(31,701)	(13,118)	(8,388)
Cash flows from/(used in) financing activities	493,593	203,267	124,721
Increase/(decrease) in cash and cash equivalents	312,498	61,817	28,681
Cash and cash equivalents at January 1	277,862	195,351	180,329
Effect of exchange rate changes on balances held in foreign currencies	7,746	20,694	(13,659)
Cash and cash equivalents at December 31	598,106	277,862	195,351
Restricted cash included in cash and cash equivalents	€ 5,776	€ 5,566	€ 63

General Information

12 Months Ended

Dec. 31, 2019

Text block [abstract]

General Information

Note 1—General Information

Ascendis Pharma A/S, together with its subsidiaries, is a biopharmaceutical company 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 April 1, 2020.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Text block [abstract]

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. Unless otherwise stated under the section “Changes in Accounting Policies and Disclosures” below, these policies have been applied consistently to all years presented. Significant accounting judgements and estimates used when exercising the accounting policies are described in Note 3.

Our 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

Adoption of

IFRS 16 “Leases”

As of January 1, 2019, the Company has adopted IFRS 16, “Leases” (“IFRS 16”). IFRS 16 requires, with a few exceptions, lessees to recognize assets

(“right-of-use

assets”) and liabilities for most leases. Accordingly, lease payments under most contracts previously classified as operating leases, will be recognized over the

non-cancellable

lease period as depreciation included in research and development costs and general and administrative expenses, and as interest expenses included in finance expenses. Previously, lease payments under all operating leases were recognized as either research and development costs or general and administrative expenses.

We have implemented IFRS 16 by applying the modified retrospective approach. Accordingly, no comparative information is restated. The lease liability and corresponding

right-of-use

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

In connection with the transition to IFRS 16, we have reviewed our operating lease agreements’ contractual terms including the lease payment structure. Fixed payments, and variable lease payments that depend on an index or a rate, are included in lease payments, whereas variable lease payments and payments related to

non-lease

components are excluded.

For lease arrangements other than those relating to short-term leases and leases of low value assets, lease liabilities have been determined according to the fixed lease payments and variable lease payments that depend on an index or a rate in the

non-cancellable

periods, discounted by the incremental borrowing rate. Accordingly, at January 1, 2019, we have recognized a lease liability of €17.7 million.

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 general and administrative expenses,

as a

pprop

riate

Operating lease commitments under IAS 17 “Leases”, and as disclosed for the annual reporting period ended December 31, 2018 was €19.6 million. The transition to the lease liabilities recognized in the consolidated financial position at January 1, 2019, in accordance with IFRS 16, is summarized below:


	(EUR ‘000)
Operating lease commitments as per December 31, 2018		19,627
Short-term contracts and low value assets		(169	)

Undiscounted, operating lease commitments as per January 1, 2019		19,458

Lease liabilities discounted by incremental borrowing rates as per January 1, 2019		17,700

At January 1, 2019,

right-of-use

assets of €18.4 million, which include prepaid leases, were recognized as property, plant and equipment.

The transition to IFRS 16

at January 1, 2019

had no impact on

accumulated deficits

Other New and Amended Standards and Interpretations

Several other amendments to and interpretations of IFRS apply for the first time in 2019, but do not have an impact on the accounting policies applied by the Company. Thus, except for the adoption of IFRS 16, 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, we continue to adopt the going concern basis of accounting in preparing the financial statements.

Recognition and Measurement

Assets are recognized in the consolidated statements of financial position when it is probable, as a result of a prior event, that future economic benefits will flow to us and the value of the asset can be measured reliably.

Liabilities are recognized in the consolidated statements of financial position when we have a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow from us and the value of the liability can be measured reliably.

On initial recognition, assets and liabilities are measured at cost or at fair value, depending on the classification of the items. Measurement subsequent to initial recognition is affected as described below for each financial statement item. Events that arise before the time of presentation of the consolidated financial statements and that confirm or invalidate affairs and conditions existing at the consolidated financial statements date are considered. Financial statement items affected by those events are adjusted if those events provide evidence of conditions that existed at the consolidated financial statements date.

Income is recognized in the consolidated statements of profit or loss when earned, whereas costs are recognized by the amounts attributable to the financial year.

Basis of Consolidation

The consolidated financial statements include our parent company, Ascendis Pharma A/S, and all enterprises over which the parent company has control. We control an enterprise when we are exposed to, or have rights to, variable returns from our involvement with the enterprise and have the ability to control those returns through our power over the entity. Accordingly, the consolidated financial statements include Ascendis Pharma A/S and the subsidiaries listed in Note 19.

Consolidation Principles

The consolidated financial statements comprise the

parent company

and its subsidiaries at December 31, 2019. Subsidiaries, which are enterprises where we have control at the

reporting

date, are fully consolidated from the date upon which control is transferred to us. They are deconsolidated from the date control ceases.

We reassess whether the

parent company

controls an enterprise 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 our group enterprises are eliminated in full on consolidation.

Subsidiaries and our associate 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 we have significant influence over financial and operational decisions but where we have neither control nor 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 our 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.

After application of the equity method, we determine whether it is necessary to recognize an impairment loss related to the associate. Accordingly, at each reporting date, we determine whether there is objective evidence that the associate is impaired. If there is such evidence, we calculate the amount of impairment 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 Euro (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 at the dates of the initial transactions.

Currency Translation of Group Enterprises

When subsidiaries or associates that present their financial statements in a functional currency other than EUR are recognized in the consolidated financial statements, 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 we obtain control over the enterprise.

When acquiring new enterprises over which we obtain control, the acquisition method is applied. Under this method, we identify assets, liabilities and contingent liabilities of these enterprises and measure them at fair value at 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

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

Our revenue is primarily generated from collaboration and license agreements. Further, we also generate revenue 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 our 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 we perform.

When we enter into contracts with customers, we assess the goods and/or services promised in the contract and 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 goods or

services

either on its own or together with other resources that are readily available to the customer (i.e.

the goods or

services

is capable of being distinct); and

•

the entity’s promise to transfer the goods or service to the customer is separately identifiable from other promises in the contract (i.e

the promise to transfer the goods 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, we combine those goods or services with other promised goods or services until we identify a bundle of goods or services that is distinct.

The transaction price in the contract is measured at fair value and reflects the consideration we expect 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. We have no payment terms exceeding 12 months, and thus transaction prices are not adjusted for financing components.

Research and Development Costs

Our research and development costs consist primarily of manufacturing costs, preclinical and clinical study costs, salaries and other personnel costs including pension and share-based payment, the cost of facilities, the cost of obtaining and maintaining our intellectual property portfolio, and the 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 are recognized in the consolidated statement of profit or loss when incurred.

Research activities that evolve into a development project, 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. Due to the risk related to the development of pharmaceutical products, we cannot estimate the future economic benefits associated with individual development projects with sufficient certainty until the development project has 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

Development costs also comprise manufacturing costs related to validation batches, or process performance qualification batches, on late-stage development projects. In addition, manufacturing costs related to

pre-launch

inventories are recognized as development costs, up until a biologics license application

, or

BLA

for the relevant drug candidate has been submitted and accepted by the authorities for further review.

General and Administrative Expenses

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 administrative activities.

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 purchase 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, 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 our 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, as described in the previous paragraph.

Any social security contributions payable in connection with the grant or exercise of the warrants are recognized

expenses

when

incurred.

The assumptions used for estimating the fair value of share-based payment transactions are disclosed in Note 6.

Finance Income and Expenses

Finance income and expenses comprise interest income and expenses 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 balance sheet, 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 our subsidiaries

and

/or

associate

, unless we are 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 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.

Deferred tax assets, including the tax base of tax loss carry forwards, are recognized in the balance sheet 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, having recognized deferred tax assets has a legally enforceable right to set off current tax assets against current liabilities, and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax jurisdiction.

At 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.

Property, Plant and Equipment

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 comprise

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 us 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 are expected to be used for more than one year, are capitalized and depreciated over the estimated useful life as research and development costs

, as appropriate

. Plant and equipment acquired for research and development activities, which have no alternative use, are 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 following ranges:


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

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

Property, plant and equipment are 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 are recognized in the consolidated statement of profit or loss as research and development costs or as 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 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 deposits, receivables from associate, trade receivables, and other receivables, which are separately presented in the consolidated statements of financial position.

Receivables (excluding receivables related to VAT and other indirect tax 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. Deposits are initially measured at their fair value and subsequently measured at amortized cost.

Other receivables comprise VAT and other indirect tax receivables, and thus not classified as financial assets, are measured at cost less impairment.

The carrying amounts of receivables usually equals their nominal value less provision for impairments.

Prepayments

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

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and

on-demand

deposits with financial institutions. 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 and other indirect tax receivables) and cash and cash equivalents. Provision for bad debts is determined on the basis of a forward-looking expected credit loss (“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 and cash equivalents, ECLs are assessed for credit losses that result from default events that are possible within the next

12-months

(“12-month

ECL”). In addition, since cash and cash equivalents are

on-demand

deposits,

12-month

ECL are the same as lifetime ECL. However, being subject to assessing lifetime ECL following the general approach, credit risk is continuously tracked and monitored in order to identify significant deterioration. For those credit exposures for which there has 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 our foreign operations from their functional currencies to our presentation currency. The accumulated reserve of a foreign operation is recognized in the consolidated statement of profit or loss at the time we lose 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 our warrant programs.

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

With reference to “Changes to

ccounting

olicies and

Disclosures”,

the

Company has adopted IFRS 16 “Leases

” (“IFRS 16”),

effective from January 1, 2019. Thus, until December 31, 2018, leases of property, plant and equipment, where we have substantially all of the risks and rewards of ownership, were classified as finance leases. Other leases were classified as operating leases. While 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.

From January 1, 2019, upon adoption of IFRS 16, we assess at contract inception whether a contract is, or contains, 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, we apply 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 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

ssets

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 us 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

iabilities

At the lease commencement date, we recognize lease liabilities 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 relevant lease holding entities’ incremental borrowing rates. 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

Trade payables including accrued expenses are measured at amortized cost.

Other Payables

Other payables comprise payables to public authorities, and short-term employee benefits. Other payables 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 our 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 comprise payments in connection with acquisitions, development, improvement and sale, etc. of intangible assets, property, plant and equipment, and group enterprises.

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 at hand and deposits with financial institutions.

Any restricted cash included in the balance of cash and cash equivalents is presented as an additional disclosure in the cash flow statement.

Segment Reporting

We are 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, we do not disclose segment information on business segments or geographical markets.

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. Our financial reporting is not expected to be affected by such new or improved standards.

Critical Accounting Judgments and Key Sources of Estimation Uncertainty

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Note 3—Critical Accounting Judgments and Key Sources of Estimation Uncertainty

In the application of our accounting policies, we are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The 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.

Critical Judgments in Applying Accounting Policies

The following are the critical judgments, apart from those involving estimates, please see below, made in the process of applying our accounting policies and that have the most significant effect on the amounts recognized in our consolidated financial statements.

Revenue Recognition

We evaluate all our revenue generating transactions to ensure recognition in accordance with IFRS. Revenue is primarily generated from collaboration and license agreements, which typically involve multiple promises, and thus require significant judgments by us 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 judgments relating to specific revenue transactions are described below.

License Agreements

Judgments that significantly affect the determination of the amount and timing of revenue from contracts with customers relates to three license agreements, which were entered into in 2018.

Identifying Performance Obligations and Allocating Transaction Price

The three license

agreements with our associate Visen (“licensee”), grant the licensee exclusive rights to develop, manufacture, and commercialize patented product candidates in Greater China (the “Territory”), including the right to grant

sub-licenses

to third parties. In addition to the licenses, we will deliver development services and clinical supply material to be used in clinical trials within the Territory.

In determination of the performance obligations under the license agreements, we have considered the stand-alone values of the promises in the contracts, and our responsibility in the future development activities including bringing the licensed products to market in the Territory.

While licensed product candidates are all in phase 1 clinical trials or later stages of development, we have concluded that 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”

We have considered whether we are obligated or expected to perform research and development activities that significantly affect the licensee’s ability to benefit from product candidates. If we are contractually obligated, or if we determine that we are 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”.

While licensed products are patented drug formulas, our 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 profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees. We have granted warrants to employees, select consultants and board members under three different programs.

We use the Black-Scholes option-pricing model to value the warrants granted and critical judgments need to be exercised in determining the appropriate input to the valuation model as well as to determine the appropriate way of recognizing the expenses under IFRS 2.

Warrants granted under our warrant programs vest on a monthly basis over periods of up to 48 months. Due to the graded vesting, the related expenses are recognized on an accelerated basis; i.e.

each tranche of a warrant grant is treated separately for expense recognition purposes. Accordingly, the expenses related to each warrant grant is treated in up to 48 tranches, all being recognized over the vesting period.

See Note 6 for additional details on our warrant programs and recognition of expenses under IFRS 2.

Internally Generated Intangible Assets

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 we have the intent to produce and market the product or use it internally.

Such an intangible asset shall be recognized if it can be documented that the future income from the development project will exceed the aggregate cost of development, production, sale and administration of the product.

Joint Arrangements / Collaboration Agreements

Collaboration agreements within our industry are often structured so that each party contributes its respective skills in the various phases of a development project. No joint control exists for such collaborations and the parties do not have any financial obligations on behalf of each other. Accordingly, neither of our collaborations nor license agreements are considered to be joint arrangements as defined in IFRS 11, “Joint Arrangements”.

Key Sources of Estimation Uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Revenue Recognition—Allocation of Transaction Price to Performance Obligations

Transaction prices for our license agreements include

up-front,

non-refundable,

non-cash

consideration. Additionally, the agreements comprise separate cash remuneration for clinical supplies and development services, which approximate their stand-alone-selling prices.

For two license agreements, entered in 2018, we have allocated

up-front

considerations to licenses and development services, respectively. While no active market exists for the licenses, we have determined the stand-alone value of the licenses according to an approximate market approach based on readily available information, which includes estimation uncertainties.

Impairment of Goodwill

Determining whether goodwill is impaired requires an estimation of the recoverable amount, being the higher of fair value less costs of disposal or value in use, of the cash-generating units to which goodwill has been allocated. The Company is determined to be a single cash-generating unit. Accordingly, the recoverable amount is determined based on an estimation of the Company’s fair value less costs of disposal. We have determined the fair value of goodwill after taking into account the market value of our ADSs representing the enterprise value of the group enterprise as of the

reporting

date. No impairment loss has been recognized in 2019, 2018 or 2017. The carrying amount of goodwill at December 31, 2019 and 2018 was €3.5 million. See

ote 9 for further details.

Recognition of Accruals and Prepayments for Development, Manufacturing and Clinical Trial Activities

Payment terms for contractual work related to development, manufacturing, and clinical trial activities do not necessarily reflect the stage of completion of the individual projects and activities. Determination of the stage of completion for ongoing activities include estimation uncertainties as future efforts to complete the specific activity may be difficult to predict. We have reviewed all significant ongoing activities at the reporting date to determine the stage of completion compared to the invoices received and recognized accruals for any additional costs or prepayments for any invoiced costs in excess of the stage of completion. As of December 31, 2019, the consolidated statement of financial position included prepaid project costs of €5.8 million and accrued project costs of €10.5 million, compared to €11.4 million and €9.1 million, respectively, as of December 31, 2018.

Useful Lives of Property, Plant and Equipment

We review the estimated useful lives of property, plant and equipment at the end of each reporting period. We have concluded that the useful lives applied for 2019, 2018 and 2017 are appropriate.

Leases

In connection with adopting IFRS 16, the following are assessed as key assumptions concerning estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of

right-to-use

assets and

/or

lease liabilities within the next financial year.

Lease Term

Certain lease arrangements provide us with a contractual right (not obligation) to either extend the lease after the initial term, or 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

1-6

years in addition to the

non-cancellable

periods. Based on our assessment at December 31, 2019, the lease terms reflect only the

non-cancellable

periods.

Incremental Borrowing Rate

Lease payments are discounted over the

non-

cancellable

periods, applying each contract’s incremental borrowing rate. In determining incremental borrowing rates, we have considered the contracts’ specific payment profiles and relevant currencies, and applied a corresponding risk-free interest rate, credit spread, and an asset specific adjustment, if applicable. The incremental borrowing rates applied are

2.25-2.5%

and

4.25-5.0%

for lease contracts denominated in EUR or Danish Kroner, and U.S. Dollars, respectively.

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

Revenue

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Revenue

Note 4—Revenue

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


	2019		2018		2017
	(EUR’000)
Revenue from external customers
Revenue from rendering of services (recognized over time)		9,919		1,215		1,530
Sale of clinical supply (recognized at a point in time)		804		—		—
“Right-to-use” licenses (recognized at a point in time)		2,652		9,366		—
Total revenue		13,375		10,581		1,530


	2019		2018		2017
	(EUR’000)
Total revenue specified per geographical location
North America		2,652		10,581		1,530
China		10,723		—		—
Total revenue		13,375		10,581		1,530

Revenue from a single customer was €13.4 million, €10.5 million, and €1.5 million for the financial years ended December 31, 2019, 2018 and 2017, respectively.

Segment Information

12 Months Ended

Dec. 31, 2019

Text block [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 4.

The Company’s intangible assets, and property, plant and equipment

(“non-current

segment assets”) located by country are specified below (for 2019, the amounts include

right-of-use

assets, please also refer to Note 10):


	2019		2018
	(EUR’000)
Non-current segment assets
Denmark (domicile country)		15,738		4,922
North America		27,275		341
Germany		5,551		2,557
Total non-current segment assets		48,564		7,820
Investment in associate		15,538		17,083
Deposits		1,463		1,158
Total non-current assets		65,565		26,061

Staff Cost

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Staff Cost

Note 6—Staff Cost


	2019		2018		2017
	(EUR’000)
Wages and salaries		49,142		29,418		19,918
Share-based payment		37,486		19,652		9,709
Pensions (defined contribution plans)		648		444		324
Social security costs		3,613		1,793		1,156
Total staff costs		90,889		51,307		31,107
Average number of employees		274		167		121

Staff costs are recognized in the consolidated statement of profit or loss as follows:


	2019		2018		2017
	(EUR’000)
Research and development costs		61,890		34,146		21,845
General and administrative expenses		28,999		17,161		9,262
Total staff costs		90,889		51,307		31,107

Key Management Personnel includes our Board of Directors and Executive Board

and comprises 7 and

2 persons,

respectively, for 2019 and 2018, and 8 and

persons

respectively

, for 2017.

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 “

hare-based

ayment”.

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


	2019		2018		2017
			(EUR’000)
Wages and salaries		2,080		1,809		1,731
Share-based payment		7,167		5,112		3,576
Social security costs		94		152		70
Total Compensation to Key Management Personnel		9,341		7,073		5,377

Out of the total compensation to key management personnel, €

2,129

thousand (2018: €1,851 thousand, 2017: €1,467 thousand) related to the Board of Directors, and €

7,212

thousand (2018: €5,222 thousand, 2017: €3,910 thousand) related to the Executive Board. Out of the share-based payment to key management personnel, under the warrant programs described below, €1,864 thousand (2018: €1,607 thousand, 2017: €1,202 thousand) related to the Board of Directors, and €

5,303

thousand (2018: €3,505 thousand, 2017: €2,374 thousand) related to the Executive Board.

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 our 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, 2019, 9,378,787 warrants had been granted, of which 19,580 warrants have been cancelled, 3,271,250 warrants have been exercised, 2,168 warrants have expired without being exercised, and 265,578 warrants have been forfeited. As of December 31, 201

, our Board of Directors was authorized to grant up to 1,237,525 additional warrants to our 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 our ordinary shares at the time of grant as determined by our board of directors. 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 during the period from 2008 to 2012 generally vested over 36 months with 1/36 of the warrants vesting per month from the date of grant. However, some of these warrants were subject to shorter vesting periods, to a minimum of 24 months. All such warrants have been exercised or have expired as of December 31, 2018.

Effective from December 2012, warrants granted generally vest over 48 months with 1/48 of the warrants vesting per month from the date of grant.

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 us, or (ii) in the event that we terminate the employment contract and the warrantholder has given us 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 we terminate the employment contract and the warrantholder has not given us 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 us.

Exercise Periods

Vested warrants may be exercised during certain exercise periods each year. For 519,049 outstanding warrants, 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) our interim report

(six-month

report). For these warrants, the last exercise period is 21 days from and including the day after the publication of our interim report for the first half of 2023. For 68,436 outstanding warrants granted in connection with our Preference D financing, there are four annual exercise periods that continue for 21 days following the day of publication of (i) our interim report (three-month report); (ii) the annual report notification—or if such notification is not published—the annual report; (iii) our interim report

(six-month

report); and (iv) our interim report (nine-month report). For these warrants, the last exercise period is 21 days following the publication of our interim report (nine-month report) in 2023. For 5,232,726 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 our 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 our 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 us at the time the warrants are exercised. If the consultant’s, advisor’s or board member’s relationship with us 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

and movements in warrants during the year:


	Total Warrants			Weighted Average Exercise Price EUR
Outstanding at January 1, 2017		3,691,765			13.05
Granted during the year		1,196,000			30.15
Exercised during the year (1)		(193,171	)		8.49
Forfeited during the year		(73,440	)		16.42
Expired during the year		—			—
Outstanding at December 31, 2017		4,621,154			17.62
Vested at the reporting date		2,034,791			11.48
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

(1)	The weighted average share price ( listed in $) at the date of exercise was €108.54, €58.01, and €26.75 for the financial years ended December 31, 2019, 2018 and 2017, respectively.

The following table specifies the weighted average exercise prices and weighted average remaining contractual life for outstanding warrants at December 31, 2019, per grant year.


	Number of Outstanding Warrants		Weighted Average Exercise Price EUR		Weighted Average Remaining Life (months)
Granted in 2012-2016		1,889,205		14.43		67
Granted in 2017		1,093,659		30.15		94
Granted in 2018		1,546,947		54.43		106
Granted in 2019		1,290,400		97.01		117
Outstanding at December 31, 2019		5,820,211		46.36		94

At December 31, 2019, the exercise prices of outstanding warrants under our warrant programs range from €6.48 to €107.14 depending on the grant dates. The range of exercise prices for outstanding warrants was €6.48 - €60.23, and €6.48 - €31.60, for the financial years ended December 31, 2018 and 2017, respectively.

The weighted average remaining life for outstanding warrants was 96 months and 112 months, for the financial years ended December 31, 2018 and 2017, respectively.

Warrant Compensation Costs

Warrant compensation cost is recognized in the consolidated statement of profit or loss over the vesting period of the warrants granted.


	2019		2018		2017
	(EUR’000)
Research and development costs		22,357		10,225		4,775
General and administrative expenses		15,129		9,427		4,934
Total warrant compensation costs		37,486		19,652		9,709

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.

The following table summarizes the input to the Black-Scholes Option Pricing model and the calculated fair values for warrant grants in 2019, 2018 and 2017:


	2019	2018	2017
Expected volatility	52 - 54%	53 – 57%	54 – 60%
Risk-free interest rate	(0.77) – (0.05)%	(0.23) – 0.46%	(0.34) – 0.25%
Expected life of warrants (years)	5.05 – 7.10	5.05 – 7.14	5.05 – 7.10
Weighted average exercise price	€ 97.01	€ 54.43	€ 30.15
Fair value of warrants granted in the year	€ 27.24 – 55.64	€ 17.90 – 31.81	€ 9.65 – 17.29

Finance Income and Finance Expenses

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Finance Income and Finance Expenses

Note 7—Finance Income and Finance Expenses


	2019		2018		2017
	(EUR’000)
Interest income		10,056		4,020		923
Exchange rate gains		7,747		20,694		—
Total finance income		17,803		24,714		923
Interest expense s		207		127		97
Lease interest		1,014		—		—
Exchange rate losses		—		—		13,659
Total finance expenses		1,221		127		13,756

Interest income and interest expense

relate to financial assets and liabilities measured at amortized cost.

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

12 Months Ended

Dec. 31, 2019

Text block [abstract]

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

Note 8—Tax on Profit/(Loss) for the Year and Deferred Tax


	2019			2018			2017
	(EUR’000)
Tax on profit/(loss) for the year:
Current tax (expense)/income		234			394			477
		234			394			477

Tax for the year can be explained as follows:
Profit/(loss) before tax		(218,250	)		(130,491	)		(124,374	)
Tax at the Danish corporation tax rate of 22%		48,015			28,708			27,362

Tax effect of:
Non-deductible costs		(8,249	)		(4,327	)		(1,553	)
Additional tax deductions		10,875			4,074			356
Impact from associate		(1,680	)		(2,383	)		—
Tax credits		—			—			(1,028	)
Other effects including effect of different tax rates		1,602			143			598
Deferred tax asset, not recognized		(50,329	)		(25,821	)		(25,258	)
Tax on profit/(loss) for the year		234			394			477
Effective tax rate		(0.11	) %		(0.30	)%		(0.38	)%

No changes to deferred tax ha

been recognized in the consolidated statement of profit or loss for 2019, 2018 or 2017.


	2019			2018			2017
	(EUR’000)
Specification of Deferred Tax Asset s
Tax deductible losses		123,234			74,120			52,084
Other temporary differences		5,631			4,416			631
Deferred tax asset, not recognized		(128,865	)		(78,536	)		(52,715	)
Total Deferred Tax Asset s at December 31		0			0			0

eferred tax assets have not been recognized in the consolidated statements of financial position due to uncertainty relating to future utilization.

eferred tax asset

can be carried forward without timing limitations.

The Company had tax losses carried forward of €560.2 million, and €336.9 million at December 31, 2019 and December 2018, respectively, and relate to Danish entities. 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, 2019, the jointly taxed Danish entities had a negative taxable income, and accordingly were entitled to a tax refund of approximately €

0.7

million, compared to approximately €0.7 million and €0.7 million for the years ended December 31, 2018 and 2017, respectively.

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, 2019

Text block [abstract]

Intangible Assets

Note 9—Intangible Assets


	Goodwill
	(EUR’000)
Cost:
At January 1, 2018		3,495
Additions		—
December 31, 2018		3,495
Additions		—
December 31, 2019		3,495

Accumulated impairment:
At January 1, 2018		—
Impairment charge		—
At December 31, 2018		—
Impairment charge		—
At December 31, 2019		—

Carrying amount:
At December 31, 2018		3,495
At December 31, 2019		3,495

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, we do not recognize internally generated intangible assets at this time. Thus, all research and development costs incurred for the financial years ended December 31, 2019, 2018 and 2017, 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 our 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 we are 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. We have determined the fair value of goodwill after taking into account the market value of our ADSs as of the

reporting

date. The computation of our 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, we have concluded that no further assumptions need to be applied in determining whether goodwill is impaired.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Property, Plant and Equipment

Note 10—Property, Plant and Equipment


	Plant and Machinery			Other Equipment			Leasehold Improve- ments			Right-of-Use Assets			Total
	(EUR’000)
Cost:
At January 1, 2018		4,507			1,641			650			—			6,798
Additions		1,206			1,270			225			—			2,701
Disposals		(68	)		(316	)		—			—			(384	)
At December 31, 2018		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

Accumulated depreciation:
At January 1, 2018		(3,054	)		(854	)		(333	)		—			(4,241	)
Depreciation charge		(410	)		(415	)		(55	)		—			(880	)
Disposals		16			315			—			—			331
At December 31, 2018		(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	)

Carrying amount:
At December 31, 2018		2,197			1,641			487			—			4,325
At December 31, 2019		4,067			2,381			3,730			34,891			45,069

Included in leasehold improvements was an amount of €2.7 million, and €0.2 million relat

to expenditures for improvements under construction at December 31, 2019 and 2018, respectively. Of total additions regarding leaseholds improvements, €2.1 million and €0.0 million was unpaid at December 31, 2019 and 2018, respectively.

At December 31, 2019, the Company had

non-cash

additions on

right-of-use

assets of €39.0 million, which includes impact from implementing IFRS 16

For detailed information about our lease arrangements, please refer to Note 14.

Depreciations charges are specified below:


	2019		2018		2017
	(EUR’000)
Research and development costs		5,282		827		701
General and administrative expenses		1,406		53		33
Total depreciation charges		6,688		880		734

Investment in Associate

12 Months Ended

Dec. 31, 2019

Investments accounted for using equity method [abstract]

Investment in Associate

Note 11—Investment in Associate

Visen Pharmaceuticals (“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 (the “Territory”), 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 the Territory. 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 our investment in Visen:


Visen Pharmaceuticals
Principal place of business		China
Ownership		50 %

	2019			2018
	(EUR’000)
Profit or loss
Profit / (loss) for the yea r		(16,226	)		(642	)
Financial position
Non-current assets		23,291			34,819
Current assets		32,446			34,155
Non-current liabilities		250			—
Current liabilities		1,667			9
Equity		53,820			68,965
Company’s share of equity before eliminations		26,910			34,483
Elimination of internal profit recognized at December 31		(11,372	)		(17,400	)
Company’s share of equity		15,538			17,083
Investment in associate at December 31		15,538			17,083

Revenue from Visen, recognized in the consolidated statement of profit

loss

for 2019 and 2018, was €13.4 million and €10.5 million, respectively.

Trade receivable balance with Visen

at December 31,

2019 and 2018 was €0.8 million and €0.0 million, respectively.

Visen requires the Company’s consent to distribute dividend

and incur indebtedness outside the normal course of business. At the reporting date, the Company has not given such consent.

Visen had no contingent liabilities or capital commitments as

December 31, 2019 or December 31, 2018. At the date these consolidated financial statements are authorized for use, no events have occurred after the

reporting

date that would influence the evaluation of these consolidated financial statements

. Please refer to Note 21 regarding subsequent events

Share Capital

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Share Capital

Note 12—Share Capital

The share capital of Ascendis Pharma A/S consists of 47,985,837 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:


	2019		2018		2017		2016		2015
Changes in share capital
Beginning of year		42,135,448		36,984,292		32,421,121		25,128,242		16,935,780
Increase through cash contribution		5,850,389		5,151,156		4,563,171		7,292,879		8,192,462
End of year		47,985,837		42,135,448		36,984,292		32,421,121		25,128,242

Distributable Equity

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Distributable Equity

Note 13—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 our foreign operations and associate from their functional currencies to our 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 our employee warrant program 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 employee warrant program are provided in Note 6. 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, 2019

Text Block Abstract [Abstract]

Leases

Note 14—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 2 and 10 years, and in addition, in order to improve flexibility to our operations, may provide us options to extend the lease or terminate the lease within the enforceable lease term. In our current lease portfolio, extension and termination options range between

1-6

years, in addition to the

non-cancellable

period.

We have implemented IFRS 16 by applying the modified retrospective approach. Accordingly, no comparative information is disclosed.

Leases Liabilities and Payments

Development in lease liabilities

in 2019

are specified below:


	Beginning of period (1)		Additions		Accretion of interests		Cash out-flow			Foreign exchange translation (non-cash item)		End of period
	(EUR’000)
Lease liabilities		17,700		21,240		1,014		(3,870	)		535		36,619

(1)	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Total cash outflow for lease

in 2019 was €4.5 million which include prepaid leases at January 1, 2019 and at commencement date of new leases in 2019.

The maturity analysis of lease liabilities is disclosed in Note 17, “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:


	2019
	(EUR’000)
Lease expenses
Depreciations (research and development) (Note 10)		3,943
Depreciations (general and administration) (Note 10 )		1,294
Expenses relating to short term leases and leases of low value assets		202
Lease interests (Note 7)		1,014
Total lease expenses		6,453

Contract liabilities

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Contract liabilities

Note 15—Contract Liabilities

Deferred income was €0.9 million and €6.9 million for the financial years ended December 31, 2019 and 2018, respectively, and relate to partially satisfied performance obligations due to our ongoing research and development of licensed product candidates. The remaining

balance of

deferred income is expected to be recognized as revenue in 2020, as services are transferred.

Revenue recognized from deferred income was €6.1 million, €0.0

million and €0.0

million for the financial years ended December 31, 2019, 2018 and 2017, respectively.

Other Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Other Commitments and Contingencies

Note 16—Other Commitments and Contingencies

Contractual commitments for

the

construction of leasehold improvements w

ere

€8.5 million and €0.0 million for the financial years ended December 31, 2019 and 2018, respectively.

With certain suppliers, the Company has agreed minimum commitments related to 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.

Of other contractual commitments, the Company has entered into short term leases and leases of low value equipment, and service contracts of various lengths in respect of research and development,

IT-

and facility related services. In addition, the Company’s lease activities establish contractual commitments in relation to

non-lease

components which consists of utilities, maintenance, levies, and other services. Costs relating to those commitments are recognized as services are received.

Financial Risk Management and Financial Instruments

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Financial Risk Management and Financial Instruments

Note 17—Financial Risk Management and Financial Instruments

Our financial assets and financial liabilities comprise the following


	2019		2018
	(EUR’000)
Financial assets
Deposits		1,463		1,158
Receivables		804		6
Cash and cash equivalents		598,106		277,862
Financial assets measured at amortized cost		600,373		279,026
Financial liabilities
Lease liabilities		36,619		—
Trade payables		27,765		19,740
Financial liabilities measured at amortized cost		64,384		19,740

Except for lease liabilities, the carrying amounts of the financial assets and financial liabilities are estimated being in line with the fair value due to the short-term (<1 year) nature of the balances.

Capital Management

We manage our capital to ensure that all group enterprises will be able to continue as going

concern

while maximizing the return to shareholders through the optimization of our debt and equity balance. Our overall strategy in this regard has remained unchanged since 2012.

Our capital structure consists only of equity comprising issued capital, reserves and retained earnings/accumulated deficits. We do not hold any external debt.

We are not subject to any externally imposed capital requirements. We review our capital structure on an ongoing basis. As we do not have external debt, such review currently comprises a review of the adequacy of our capital compared to the resources required for carrying out our activities.

Financial Risk Management Objectives

We regularly monitor the access to domestic and international financial markets, manage the financial risks relating to our operations, and analyze exposures to risk, including market risk, such as foreign currency risk and interest rate risk, credit risk and liquidity risk.

We seek to minimize the effects of these risks by managing transactions and holding positions in the various currencies used in our operations. We do not enter into or trade financial instruments for speculative purposes.

Market Risk

Our activities expose our group enterprises to the financial risks of changes in foreign currency exchange rates and interest rates. We do not enter into derivative financial instruments to manage our exposure to such risks.

Foreign Currency Risk Management

Our foreign exchange rate risks are unchanged to prior year. We are exposed to foreign exchange risks arising from various currency exposures, primarily with respect to the US Dollar, the British Pound and the Danish Krone.

Future milestone payments, which we are entitled to upon meeting underlying thresholds, are

denominated

in US Dollar. Further, the proceeds from our series D financing in November 2014, our IPO in February 2015 and our

follow-on

offerings, the latest being in March 2019, were in US Dollars. We seek to minimize our exchange rate risk by maintaining cash positions in the currencies in which we expect to incur the majority of our future expenses and we make payments from those reserves.

Foreign Currency Sensitivity Analysis

We are primarily exposed to US Dollars (USD), British Pounds (GBP), and Danish Kroner (DKK). 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.

The following table details our sensitivity to a 10% increase and decrease in EUR against USD and GBP, respectively. 10% represents our assessment of the reasonably possible change in foreign currency rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the

reporting date

for a 10% change in foreign currency rate.

A positive number indicates an increase in profit

loss, and equity before tax, while a negative number indicates the opposite. We believe the sensitivity analysis is representative of the inherent foreign exchange risk associated with our 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, 201 9
USD/EUR		477,764			10	%		47,776			47,776
GBP/EUR		(858	)		10	%		(86	)		(86	)

				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, 2018
USD/EUR		178,308			10	%		17,831			17,831
GBP/EUR		(816	)		10	%		(82	)		(82	)

Interest Rate Risk Management

We have no interest-bearing debt to third parties. In addition, while we have no derivatives or financial assets and liabilities measured at fair value, our exposure to interest rate risk primarily relates to the interest rates for our positions of cash and cash equivalents. Our future interest income from interest-bearing bank deposits and short-term investments may fall short of expectations due to changes in interest rates. We do not consider the effects of interest rate fluctuations to be a material risk to our financial position. Accordingly, no interest sensitivity analysis has been presented.

Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss. We consider all of our material counterparties to be creditworthy. Our exposure to credit risk is continuously monitored, in particular, if agreed payments are delayed.

While the concentration of credit risk is significant, we consider the credit risk for each of our individual counterparts to be low. Accordingly, since we had no significant trade receivables at December 31, 2019 or December 31, 2018, and our deposits are held with suppliers that are frequently used in our operations, we have made no provision for trade receivables or deposits.

Our maximum exposure to credit risk primarily relates to our cash and cash equivalents. The credit risk on cash and cash equivalents is limited because the counterparties, holding significant deposits, are banks with high credit-ratings assigned by international credit-rating agencies.

The banks are reviewed on a regularly basis and our deposits may be transferred during the year to mitigate credit risk.

We have considered the risk of expected credit loss over our cash deposits, including the hypothetical impact arising from the probability of default considering in conjunction with the expected loss given default from banks with similar credit rating and attributes. Our assessment did not reveal an expected material impairment loss, and accordingly we have made no provision for bank deposits.

Liquidity Risk Management

We manage our liquidity risk by maintaining adequate cash reserves and banking facilities, and by continuously monitoring our cash forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. We monitor the risk of a shortage of funds using a liquidity planning tool, to ensure enough funds available to settle liabilities as they fall due.

Historically we have addressed the risk of insufficient funds through proceeds from our series D financing, our IPO, and our

follow-on

public offerings. 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.

Maturity analysis for financial liabilities recognized in the consolidated statements of financial position at December 2019 are specified below. A

December 2018, all

financial liabilities recognized in the consolidated statements of financial position fell due within 12 months.


	< 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		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, 2019

Text block [abstract]

Related Party Transactions

Note 18—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 our operations. Related parties also include undertakings in which such individuals have a controlling or joint controlling interest. Additionally, all our group enterprises and our associate are considered related parties.

Neither our related parties nor our major shareholders hold a controlling-, joint controlling-, or significant interest in the Group.

We have entered into employment agreements with and issued warrants to Key Management Personnel. In addition, we are paying fees for board tenure and board committee tenure to the independent members of our Board of Directors. Please refer to

ote 6.

Transactions between the parent company and group enterprises comprise management and license fees, research & development services, and clinical supplies. These transactions have been eliminated in the consolidated financial statements. Transactions and outstanding balances with our associate Visen are disclosed in Note 11.

We have entered into indemnification agreements with our board members and members of our senior management.

Except for the information disclosed above, we have 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, 2019

Investments accounted for using equity method [abstract]

Investments in Group Enterprises

Note 19—Investments in Group Enterprises

Investments in Group enterprises comprise:


Subsidiaries	Domicile	Ownership
Ascendis Pharma GmbH	Germany		100	%
Ascendis Pharma, 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, 2019

Text block [abstract]

Ownership

Note 20—Ownership

The following investors, or groups of affiliated investors, are known by us to beneficially

own

than 5% of our outstanding ordinary shares:

•

T. Rowe Price Associates, Inc., USA

•

Entities affiliated with FMR LLC, USA

•

Entities affiliated with RA Capital Management, LLC, USA

•

Entities affiliated with OrbiMed Private Investments V, L.P., USA

•

Baker Bros. Advisors LP, USA

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, 2019

Text block [abstract]

Subsequent Events

Note 21—Subsequent Events

Coronavirus (“COVID-19”) Outbreak

In December 2019, a novel strain of coronavirus, COVID-19, was reported to have surfaced in Wuhan, China. Since then, the COVID-19 has spread around the world into a pandemic, including into countries where we have planned or have ongoing clinical trials, and countries where we rely on third parties to manufacture preclinical and clinical supplies, as well as commercial supply. If COVID-19 continues to spread in the United States and rest of the world, we may experience disruptions that could severely impact our business in many areas.

Due to the COVID-19 pandemic, there is potential evolving impact on the conduct of clinical trials of investigational therapeutic candidates, and any challenges which may arise, for example, from quarantines, site closures, travel limitations, interruptions to the supply chain for our product candidates, or other considerations if site personnel or trial subjects become infected with COVID-19, which may lead to difficulties in meeting protocol-specified procedures, including administering or using the therapeutic candidate or adhering to protocol-mandated visits and laboratory/diagnostic testing, unavoidable protocol deviations due to COVID-19 illness and/or COVID-19 control measures, which will likely vary depending on many factors, including the nature of disease under study, the trial design, and in what region(s) the study is being conducted.

In addition, while we rely on third parties to manufacture preclinical and clinical supplies and materials, we can potentially experience delays in providing sufficient product supplies according to our planned and ongoing clinical trials. Further, if our product candidates are approved, we will need to secure sufficient manufacturing capacity with our third-party manufacturers to produce the quantities necessary to meet anticipated market demand. The COVID-19 pandemic, that currently impacts multiple jurisdictions worldwide, may impact the business of our existing or future manufacturers to perform their manufacturing obligations, which could have a negative impact on our operations.

We have assessed the COVID-19 outbreak impact on our consolidated financial statements, and since COVID-19 was not classified as an outbreak in 2019, the outbreak is considered a non-adjusting subsequent event, where any impact on the consolidated financial statement is accounted for subsequent to December 31, 2019. At the time these consolidated financial statements are authorized for issue, we have not found any adjustments necessary to the amounts recognized or disclosed in the consolidated financial statements.

At the time these consolidated financial statements are authorized for issue, we haven’t identified significant disruptions to our clinical trial operations or identified any of our third-party manufacturers not being able to meet their obligations. However, while the global outbreak of COVID-19 continues to rapidly evolve, the extent to which COVID-19 impacts our business will depend on future developments, which are highly uncertain and cannot be reliably predicted.

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, 2019

Text block [abstract]

Basis of Preparation

Our 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

Adoption of

IFRS 16 “Leases”

As of January 1, 2019, the Company has adopted IFRS 16, “Leases” (“IFRS 16”). IFRS 16 requires, with a few exceptions, lessees to recognize assets

(“right-of-use

assets”) and liabilities for most leases. Accordingly, lease payments under most contracts previously classified as operating leases, will be recognized over the

non-cancellable

We have implemented IFRS 16 by applying the modified retrospective approach. Accordingly, no comparative information is restated. The lease liability and corresponding

right-of-use

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

non-lease

components are excluded.

non-cancellable

periods, discounted by the incremental borrowing rate. Accordingly, at January 1, 2019, we have recognized a lease liability of €17.7 million.

as a

pprop

riate


	(EUR ‘000)
Operating lease commitments as per December 31, 2018		19,627
Short-term contracts and low value assets		(169	)

Undiscounted, operating lease commitments as per January 1, 2019		19,458

Lease liabilities discounted by incremental borrowing rates as per January 1, 2019		17,700

At January 1, 2019,

right-of-use

assets of €18.4 million, which include prepaid leases, were recognized as property, plant and equipment.

The transition to IFRS 16

at January 1, 2019

had no impact on

accumulated deficits

Other New and Amended Standards and Interpretations

Going Concern

Recognition and Measurement

Income is recognized in the consolidated statements of profit or loss when earned, whereas costs are recognized by the amounts attributable to the financial year.

Basis of Consolidation

Consolidation Principles

The consolidated financial statements comprise the

parent company

and its subsidiaries at December 31, 2019. Subsidiaries, which are enterprises where we have control at the

reporting

date, are fully consolidated from the date upon which control is transferred to us. They are deconsolidated from the date control ceases.

We reassess whether the

parent company

controls an enterprise 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 our group enterprises are eliminated in full on consolidation.

Investment in Associates

Foreign Currency

Functional and Presentation Currency

Translation of Transactions and Balances

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 at 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.

Goodwill is subject to

Revenue

•

the customer can benefit from the goods or

services

either on its own or together with other resources that are readily available to the customer (i.e.

the goods or

services

is capable of being distinct); and

•

the entity’s promise to transfer the goods or service to the customer is separately identifiable from other promises in the contract (i.e

the promise to transfer the goods or service is distinct within the context of the contract).

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.

Research and Development Costs

non-current

assets used in research and development activities.

when incurred

pre-launch

inventories are recognized as development costs, up until a biologics license application

, or

BLA

for the relevant drug candidate has been submitted and accepted by the authorities for further review.

General and Administrative Expenses

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 administrative activities.

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

The cost of equity-settled transactions is determined by the fair value at the date of grant using the Black-Scholes valuation model.

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.

Any social security contributions payable in connection with the grant or exercise of the warrants are recognized

expenses

when

incurred.

The assumptions used for estimating the fair value of share-based payment transactions are disclosed in Note 6.

Finance Income and Expenses

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

Income Taxes

When computing the current tax for the year, the tax rates and tax rules enacted or substantially enacted at the

reporting

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

tax-based

Deferred tax liabilities are recognized on all temporary differences related to investments in our subsidiaries

and

/or

associate

, unless we are 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 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

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

set-off

At 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.

generating units to which goodwill is allocated represent the lowest level within the Company at which the goodwill is monitored for internal management purposes.

Property, Plant and Equipment

right-of-use

assets. Please refer to the section “Leases”.

, as appropriate

. Plant and equipment acquired for research and development activities, which have no alternative use, are recognized as research and development costs when incurred.

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 following ranges:


Process plant and machinery		5 - 10 years
Other fixtures and fittings, tools and equipment		3 - 5 years
Leasehold improvements		3 - 10 years
Right-of-use asset s		2 - 10 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 deposits, receivables from associate, trade receivables, and other receivables, which are separately presented in the consolidated statements of financial position.

Other receivables comprise VAT and other indirect tax receivables, and thus not classified as financial assets, are measured at cost less impairment.

The carrying amounts of receivables usually equals their nominal value less provision for impairments.

Prepayments

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

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and

on-demand

deposits with financial institutions. Cash and cash equivalents are measured at amortized cost.

Allowance for Expected Credit Losses on Financial Assets

For cash and cash equivalents, ECLs are assessed for credit losses that result from default events that are possible within the next

12-months

(“12-month

ECL”). In addition, since cash and cash equivalents are

on-demand

deposits,

12-month

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.

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 our warrant programs.

Leases

With reference to “Changes to

ccounting

olicies and

Disclosures”,

the

Company has adopted IFRS 16 “Leases

” (“IFRS 16”),

From January 1, 2019, upon adoption of IFRS 16, we assess at contract inception whether a contract is, or contains, 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.

as appropriate

The Company does not act as a lessor, neither does it act as a

sub-lessor.

Right-of-use

ssets

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 us 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

iabilities

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

Trade payables including accrued expenses are measured at amortized cost.

Other Payables

Other payables comprise payables to public authorities, and short-term employee benefits. Other payables are measured at their

net-realizable

values.

Contract Liabilities

up-front

payments under our 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.

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 at hand and deposits with financial institutions.

Any restricted cash included in the balance of cash and cash equivalents is presented as an additional disclosure in the cash flow statement.

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, 2019

Text block [abstract]

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 following ranges:


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

Summary of Lease Liabilities Recognized in the Consolidated Interim Financial Position

The transition to the lease liabilities recognized in the consolidated financial position at January 1, 2019, in accordance with IFRS 16, is summarized below:


	(EUR ‘000)
Operating lease commitments as per December 31, 2018		19,627
Short-term contracts and low value assets		(169	)

Undiscounted, operating lease commitments as per January 1, 2019		19,458

Lease liabilities discounted by incremental borrowing rates as per January 1, 2019		17,700

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

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:


	2019		2018		2017
	(EUR’000)
Revenue from external customers
Revenue from rendering of services (recognized over time)		9,919		1,215		1,530
Sale of clinical supply (recognized at a point in time)		804		—		—
“Right-to-use” licenses (recognized at a point in time)		2,652		9,366		—
Total revenue		13,375		10,581		1,530


	2019		2018		2017
	(EUR’000)
Total revenue specified per geographical location
North America		2,652		10,581		1,530
China		10,723		—		—
Total revenue		13,375		10,581		1,530

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Disclosure of intangible assets, and property, plant and equipment

The Company’s intangible assets, and property, plant and equipment

(“non-current

segment assets”) located by country are specified below (for 2019, the amounts include

right-of-use

assets, please also refer to Note 10):


	2019		2018
	(EUR’000)
Non-current segment assets
Denmark (domicile country)		15,738		4,922
North America		27,275		341
Germany		5,551		2,557
Total non-current segment assets		48,564		7,820
Investment in associate		15,538		17,083
Deposits		1,463		1,158
Total non-current assets		65,565		26,061

Staff Cost (Tables)

12 Months Ended

Dec. 31, 2019

Statement [LineItems]

Summary of Staffing Cost


	2019		2018		2017
	(EUR’000)
Wages and salaries		49,142		29,418		19,918
Share-based payment		37,486		19,652		9,709
Pensions (defined contribution plans)		648		444		324
Social security costs		3,613		1,793		1,156
Total staff costs		90,889		51,307		31,107
Average number of employees		274		167		121

Summary of Staff Costs Recognized in the Statement of Profit and Loss

Staff costs are recognized in the consolidated statement of profit or loss as follows:


	2019		2018		2017
	(EUR’000)
Research and development costs		61,890		34,146		21,845
General and administrative expenses		28,999		17,161		9,262
Total staff costs		90,889		51,307		31,107

Summary of Weighted Average Exercise Prices and Movements in Warrants

The following table specifies

the

number and weighted average exercise prices

and movements in warrants during the year:


	Total Warrants			Weighted Average Exercise Price EUR
Outstanding at January 1, 2017		3,691,765			13.05
Granted during the year		1,196,000			30.15
Exercised during the year (1)		(193,171	)		8.49
Forfeited during the year		(73,440	)		16.42
Expired during the year		—			—
Outstanding at December 31, 2017		4,621,154			17.62
Vested at the reporting date		2,034,791			11.48
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

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, 2019, per grant year.


	Number of Outstanding Warrants		Weighted Average Exercise Price EUR		Weighted Average Remaining Life (months)
Granted in 2012-2016		1,889,205		14.43		67
Granted in 2017		1,093,659		30.15		94
Granted in 2018		1,546,947		54.43		106
Granted in 2019		1,290,400		97.01		117
Outstanding at December 31, 2019		5,820,211		46.36		94

Summary of Warrant Compensation Cost

Warrant compensation cost is recognized in the consolidated statement of profit or loss over the vesting period of the warrants granted.


	2019		2018		2017
	(EUR’000)
Research and development costs		22,357		10,225		4,775
General and administrative expenses		15,129		9,427		4,934
Total warrant compensation costs		37,486		19,652		9,709

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 2019, 2018 and 2017:


	2019	2018	2017
Expected volatility	52 – 54%	53 – 57%	54 – 60%
Risk-free interest rate	(0.77) – (0.05)%	(0.23) – 0.46%	(0.34) – 0.25%
Expected life of warrants (years)	5.05 – 7.10	5.05 – 7.14	5.05 – 7.10
Weighted average exercise price	€ 97.01	€ 54.43	€ 30.15
Fair value of warrants granted in the year	€ 27.24 – 55.64	€ 17.90 – 31.81	€ 9.65 – 17.29

Key management personnel of entity or parent [member]

Statement [LineItems]

Summary of Staffing Cost

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


	2019		2018		2017
			(EUR’000)
Wages and salaries		2,080		1,809		1,731
Share-based payment		7,167		5,112		3,576
Social security costs		94		152		70
Total Compensation to Key Management Personnel		9,341		7,073		5,377

Finance Income and Finance Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Schedule of Finance Income and Finance Expenses


	2019		2018		2017
	(EUR’000)
Interest income		10,056		4,020		923
Exchange rate gains		7,747		20,694		—
Total finance income		17,803		24,714		923
Interest expense s		207		127		97
Lease interest		1,014		—		—
Exchange rate losses		—		—		13,659
Total finance expenses		1,221		127		13,756

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

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Summary of Tax on Profit/Loss and Deferred Tax


	2019			2018			2017
	(EUR’000)
Tax on profit/(loss) for the year:
Current tax (expense)/income		234			394			477
		234			394			477

Tax for the year can be explained as follows:
Profit/(loss) before tax		(218,250	)		(130,491	)		(124,374	)
Tax at the Danish corporation tax rate of 22%		48,015			28,708			27,362

Tax effect of:
Non-deductible costs		(8,249	)		(4,327	)		(1,553	)
Additional tax deductions		10,875			4,074			356
Impact from associate		(1,680	)		(2,383	)		—
Tax credits		—			—			(1,028	)
Other effects including effect of different tax rates		1,602			143			598
Deferred tax asset, not recognized		(50,329	)		(25,821	)		(25,258	)
Tax on profit/(loss) for the year		234			394			477
Effective tax rate		(0.11	) %		(0.30	)%		(0.38	)%

No changes to deferred tax ha

been recognized in the consolidated statement of profit or loss for 2019, 2018 or 2017.


	2019			2018			2017
	(EUR’000)
Specification of Deferred Tax Asset s
Tax deductible losses		123,234			74,120			52,084
Other temporary differences		5,631			4,416			631
Deferred tax asset, not recognized		(128,865	)		(78,536	)		(52,715	)
Total Deferred Tax Asset s at December 31		0			0			0

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Summary of Goodwill


	Goodwill
	(EUR’000)
Cost:
At January 1, 2018		3,495
Additions		—
December 31, 2018		3,495
Additions		—
December 31, 2019		3,495

Accumulated impairment:
At January 1, 2018		—
Impairment charge		—
At December 31, 2018		—
Impairment charge		—
At December 31, 2019		—

Carrying amount:
At December 31, 2018		3,495
At December 31, 2019		3,495

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

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, 2018		4,507			1,641			650			—			6,798
Additions		1,206			1,270			225			—			2,701
Disposals		(68	)		(316	)		—			—			(384	)
At December 31, 2018		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

Accumulated depreciation:
At January 1, 2018		(3,054	)		(854	)		(333	)		—			(4,241	)
Depreciation charge		(410	)		(415	)		(55	)		—			(880	)
Disposals		16			315			—			—			331
At December 31, 2018		(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	)

Carrying amount:
At December 31, 2018		2,197			1,641			487			—			4,325
At December 31, 2019		4,067			2,381			3,730			34,891			45,069

Summary of Depreciations Charges


	2019		2018		2017
	(EUR’000)
Research and development costs		5,282		827		701
General and administrative expenses		1,406		53		33
Total depreciation charges		6,688		880		734

Investment in Associate (Tables)

12 Months Ended

Dec. 31, 2019

VISEN Pharmaceuticals [member]

Statement [LineItems]

Schedule of Financial Information of Investment in VISEN

The following table illustrates the summarized relevant financial information of our investment in Visen:


Visen Pharmaceuticals
Principal place of business		China
Ownership		50 %

	2019			2018
	(EUR’000)
Profit or loss
Profit / (loss) for the yea r		(16,226	)		(642	)
Financial position
Non-current assets		23,291			34,819
Current assets		32,446			34,155
Non-current liabilities		250			—
Current liabilities		1,667			9
Equity		53,820			68,965
Company’s share of equity before eliminations		26,910			34,483
Elimination of internal profit recognized at December 31		(11,372	)		(17,400	)
Company’s share of equity		15,538			17,083
Investment in associate at December 31		15,538			17,083

Share Capital (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Summary of Number of Shares

The number of shares of the Company are as follows:


	2019		2018		2017		2016		2015
Changes in share capital
Beginning of year		42,135,448		36,984,292		32,421,121		25,128,242		16,935,780
Increase through cash contribution		5,850,389		5,151,156		4,563,171		7,292,879		8,192,462
End of year		47,985,837		42,135,448		36,984,292		32,421,121		25,128,242

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Summary of Development In Lease Liabilities


	Beginning of period (1)		Additions		Accretion of interests		Cash out-flow			Foreign exchange translation (non-cash item)		End of period
	(EUR’000)
Lease liabilities		17,700		21,240		1,014		(3,870	)		535		36,619

(1)	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

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

The following expenses relating to lease activities are recognized in the consolidated statements of profit or loss:


	2019
	(EUR’000)
Lease expenses
Depreciations (research and development) (Note 10)		3,943
Depreciations (general and administration) (Note 10 )		1,294
Expenses relating to short term leases and leases of low value assets		202
Lease interests (Note 7)		1,014
Total lease expenses		6,453

Financial Risk Management and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Schedule of Financial Assets and Liabilities

Our financial assets and financial liabilities comprise the following


	2019		2018
	(EUR’000)
Financial assets
Deposits		1,463		1,158
Receivables		804		6
Cash and cash equivalents		598,106		277,862
Financial assets measured at amortized cost		600,373		279,026
Financial liabilities
Lease liabilities		36,619		—
Trade payables		27,765		19,740
Financial liabilities measured at amortized cost		64,384		19,740

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, 201 9
USD/EUR		477,764			10	%		47,776			47,776
GBP/EUR		(858	)		10	%		(86	)		(86	)

				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, 2018
USD/EUR		178,308			10	%		17,831			17,831
GBP/EUR		(816	)		10	%		(82	)		(82	)

Summary of Maturity Analysis For Derivative Financial Liabilities

Maturity analysis for financial liabilities recognized in the consolidated statements of financial position at December 2019 are specified below. A

December 2018, all

financial liabilities recognized in the consolidated statements of financial position fell due within 12 months.


	< 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		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, 2019

Investments accounted for using equity method [abstract]

Summary of Investments in Group Enterprises

Investments in Group enterprises comprise:


Subsidiaries	Domicile	Ownership
Ascendis Pharma GmbH	Germany		100	%
Ascendis Pharma, 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)
€ / shares in Units, € in Thousands

12 Months Ended

Dec. 31, 2019

EUR (€)

Segment

€ / shares

Dec. 31, 2019

kr / shares

Jan. 01, 2019

EUR (€)

Dec. 31, 2018

EUR (€)

Leases

Disclosure of summary of significant accounting policies [line items]

Nominal value common shares | kr / shares

kr 1

Number of finace leases | Leases

Number of reportable segment | Segment

Lease liabilities

€ 36,619

€ 17,700

^[1]

Operating lease commitments

19,627

IFRS 16 [Member]

Disclosure of summary of significant accounting policies [line items]

Right-of-use assets

18,400

Lease liabilities

€ 17,700

Operating lease commitments

€ 19,600

Ordinary shares [member]

Disclosure of summary of significant accounting policies [line items]

Nominal value common shares | € / shares

€ 0.13

[1]	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Summary of Significant Accounting Policies - Schedule of Asset's Expected Useful Life (Detail)	12 Months Ended
	Dec. 31, 2019
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	10 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	10 years

Summary of Significant Accounting Policies - Summary of Lease Liabilities Recognized in the Consolidated Financial Position (Detail) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2019

Jan. 01, 2019

Presentation of leases for lessee [abstract]

Operating lease commitments as per December 31, 2018

€ 19,627

Short-term contracts, and low value assets

(169)

Undiscounted, operating lease commitments as per January 1, 2019

€ 19,458

Lease liabilities discounted by incremental borrowing rates as per January 1, 2019

€ 17,700

^[1]

€ 36,619

€ 17,700

[1]	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Critical Accounting Judgments and Key Sources of Estimation Uncertainty - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 EUR (€) Agreement Licenses Tranche	Dec. 31, 2018 EUR (€)	Dec. 31, 2017 EUR (€)
Disclosure of changes in accounting estimates [line items]
Number of collaboration agreement \| Agreement	2
Impairment loss	€ 0	€ 0	€ 0
Goodwill	3,495,000	3,495,000	€ 3,495,000
Project Cost Prepayments, Current	5,800,000	11,400,000
Project Cost Accruals, Current	€ 10,500,000	€ 9,100,000
Bottom of range [member]
Disclosure of changes in accounting estimates [line items]
Additional lease period in additon to Non cancellable period	1 year
Bottom of range [member] \| EUR or DKK [member]
Disclosure of changes in accounting estimates [line items]
Incremental borrowing rates for lease contracts	2.25%
Bottom of range [member] \| US Dollars (USD) [member]
Disclosure of changes in accounting estimates [line items]
Incremental borrowing rates for lease contracts	4.25%
Top of range [member]
Disclosure of changes in accounting estimates [line items]
Additional lease period in additon to Non cancellable period	6 years
Top of range [member] \| EUR or DKK [member]
Disclosure of changes in accounting estimates [line items]
Incremental borrowing rates for lease contracts	2.50%
Top of range [member] \| US Dollars (USD) [member]
Disclosure of changes in accounting estimates [line items]
Incremental borrowing rates for lease contracts	5.00%
Right-of-use assets [member]
Disclosure of changes in accounting estimates [line items]
Number of licenses classified as right to use \| Licenses	3
Warrants [member]
Disclosure of changes in accounting estimates [line items]
Description of vesting requirements	Up to 48 months
Number of tranches \| Tranche	48

Revenue - Schedule of Revenue Recognized in Consolidated Statements of Profit or Loss (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of operating segments [line items]
Revenue from the rendering of services (recognized over time)	€ 9,919	€ 1,215	€ 1,530
Sale of clinical supply (recognized at a point in time)	804
"Right-to-use" licenses (recognized at a point in time)	2,652	9,366
Total revenue	13,375	10,581	1,530
Revenue from external customers (geographical)
Total revenue	13,375	10,581	1,530
North America [member]
Disclosure of operating segments [line items]
Total revenue	2,652	10,581	1,530
Revenue from external customers (geographical)
Total revenue	2,652	€ 10,581	€ 1,530
China [member]
Disclosure of operating segments [line items]
Total revenue	10,723
Revenue from external customers (geographical)
Total revenue	€ 10,723

- Definition

Expiry date 2020-01-01: The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants. Effective 2020-01-01: The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2019-03-27

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2019-03-27

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_32&doctype=Standard
-URIDate 2019-03-27

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2019-03-27

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2019-01-01
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2019-en-r&anchor=para_34&doctype=Standard
-URIDate 2019-03-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2019-03-27

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_103&doctype=Standard
-URIDate 2019-03-27

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_102&doctype=Standard
-URIDate 2019-03-27

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2019-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2019-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2019-03-27

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2019-03-27

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2019-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2019-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2019-03-27

+ Details

Revenue - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Customer One [member]
Statement [line items]
Revenue from single customer	€ 13.4	€ 10.5	€ 1.5

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2019 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, 2019	Dec. 31, 2018
Statement [LineItems]
Non-current segment assets	€ 48,564	€ 7,820
Investment in associate	15,538	17,083
Deposits	1,463	1,158
Total non-current assets	65,565	26,061
Denmark [member]
Statement [LineItems]
Non-current segment assets	15,738	4,922
North America [member]
Statement [LineItems]
Non-current segment assets	27,275	341
Germany [member]
Statement [LineItems]
Non-current segment assets	€ 5,551	€ 2,557

Staff Cost - Summary of Staffing Cost (Detail) € in Thousands	12 Months Ended
	Dec. 31, 2019 EUR (€) Employee	Dec. 31, 2018 EUR (€) Employee	Dec. 31, 2017 EUR (€) Employee
Disclosure of employee compensation costs [line items]
Wages and salaries	€ 49,142	€ 29,418	€ 19,918
Share-based payment	37,486	19,652	9,709
Pensions (defined contribution plans)	648	444	324
Social security costs	3,613	1,793	1,156
Total costs	€ 90,889	€ 51,307	€ 31,107
Average number of employees \| Employee	274	167	121
Key management personnel of entity or parent [member]
Disclosure of employee compensation costs [line items]
Wages and salaries	€ 2,080	€ 1,809	€ 1,731
Share-based payment	7,167	5,112	3,576
Social security costs	94	152	70
Total costs	€ 9,341	€ 7,073	€ 5,377

Staff Cost - Summary of Staff Costs Recognized in the Statement of Profit and Loss (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of employee compensation costs [line items]
Total costs	€ 90,889	€ 51,307	€ 31,107
Research and development expenses [member]
Disclosure of employee compensation costs [line items]
Total costs	61,890	34,146	21,845
General and administrative expense [member]
Disclosure of employee compensation costs [line items]
Total costs	€ 28,999	€ 17,161	€ 9,262

Staff Cost - Additional Information (Detail) € in Thousands	12 Months Ended
Staff Cost - Additional Information (Detail) € in Thousands	Dec. 31, 2019 EUR (€) Employee	Dec. 31, 2018 EUR (€) Employee	Dec. 31, 2017 EUR (€) Employee
Disclosure of employee compensation costs [line items]
Total staff costs	€ 90,889	€ 51,307	€ 31,107
Share-based payment	37,486	19,652	9,709
Warrants [member]
Disclosure of employee compensation costs [line items]
Share-based payment	€ 37,486	€ 19,652	€ 9,709
Board of Directors [member]
Disclosure of employee compensation costs [line items]
Number of persons \| Employee	7	7	8
Total staff costs	€ 2,129	€ 1,851	€ 1,467
Board of Directors [member] \| Warrants [member]
Disclosure of employee compensation costs [line items]
Share-based payment	€ 1,864	€ 1,607	€ 1,202
Executive Board [member]
Disclosure of employee compensation costs [line items]
Number of persons \| Employee	2	2	2
Total staff costs	€ 7,212	€ 5,222	€ 3,910
Executive Board [member] \| Warrants [member]
Disclosure of employee compensation costs [line items]
Share-based payment	€ 5,303	€ 3,505	€ 2,374

Staff Cost - Warrant Activity - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 € / shares shares	Dec. 31, 2018 € / shares	Dec. 31, 2017 € / shares	Dec. 31, 2016	Jan. 13, 2015
Disclosure of terms and conditions of share-based payment arrangement [line items]
Warrant outstanding	5,820,211
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	94 months	96 months	112 months
Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Aggregate number of other equity instruments granted	9,378,787
Aggregate number of other equity instruments cancelled \| shares	19,580
Aggregate number of other equity instruments exercised	3,271,250
Aggregate number of other equity instruments expired	2,168
Aggregate number of other equity instruments forfeited	265,578
Number of other equity instruments authorized	1,237,525
Vesting description	Up to 48 months
Warrant outstanding	5,820,211	5,611,629	4,621,154	3,691,765
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	€ 107.14	€ 60.23	€ 31.60
Warrants issued from 2008 to 2012 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting description	Warrants issued during the period from 2008 to 2012 generally vested over 36 months with 1/36 of the warrants vesting per month from the date of grant.
Vesting period	36 months
Warrants issued from 2008 to 2012 [member] \| Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	24 months
Warrants issued December 2012 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting description	Effective from December 2012, 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	519,049
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	68,436
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	5,232,726

Staff Cost - Summary of Warrant Compensation Cost (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	€ 37,486	€ 19,652	€ 9,709
Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	37,486	19,652	9,709
Research and development cost [member] \| Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	22,357	10,225	4,775
General and administrative expense [member] \| Warrants [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total warrant compensation costs	€ 15,129	€ 9,427	€ 4,934

Staff Cost - Schedule of Warrant Activity (Detail)	12 Months Ended
Staff Cost - Schedule of Warrant Activity (Detail)	Dec. 31, 2019 € / shares	Dec. 31, 2018 € / shares	Dec. 31, 2017 € / shares
Disclosure Of Warrant Activity [line items]
Ending balance	5,820,211
Ending balance	€ 46.36
Warrants [member]
Disclosure Of Warrant Activity [line items]
Beginning balance	5,611,629	4,621,154	3,691,765
Granted during the year	1,300,600	1,637,375	1,196,000
Exercised during the year	(1,058,722)	(611,683)	(193,171)
Forfeited during the year	(33,296)	(35,217)	(73,440)
Expired during the year	0	0	0
Ending balance	5,820,211	5,611,629	4,621,154
Vested at the reporting date	2,705,693	2,478,770	2,034,791
Beginning balance	€ 29.03	€ 17.62	€ 13.05
Granted during the year	97.01	54.43	30.15
Exercised during the year	16.33	10.82	8.49
Forfeited during the year	58.49	28.24	16.42
Expired during the year	0	0	0
Ending balance	46.36	29.03	17.62
Vested at the reporting date	€ 24.93	€ 15.81	€ 11.48

Staff Cost - Schedule of Warrant Activity (Parenthetical) (Detail) - € / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
U.S. dollars [member]
Disclosure Of Warrant Activity [line items]
Weighted average share price	€ 108.54	€ 58.01	€ 26.75

Staff Cost - Schedule of Weighted Average Exercise Price and Weighted Remaining Contractual Life for Outstanding Warrants (Detail)	12 Months Ended
	Dec. 31, 2019 € / shares	Dec. 31, 2018	Dec. 31, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of Warrants, Outstanding	5,820,211
Weighted Average Exercise, Outstanding	€ 46.36
Weighted Average Life, Granted	94 months	96 months	112 months
Granted In 2012-2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2012-2016
Number of Warrants, Granted	1,889,205
Weighted Average Exercise, Granted	€ 14.43
Weighted Average Life, Granted	67 months
Granted in 2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Year of grant	2017
Number of Warrants, Granted	1,093,659
Weighted Average Exercise, Granted	€ 30.15
Weighted Average Life, Granted	94 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	1,546,947
Weighted Average Exercise, Granted	€ 54.43
Weighted Average Life, Granted	106 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	1,290,400
Weighted Average Exercise, Granted	€ 97.01
Weighted Average Life, Granted	117 months

Staff Cost - Summary of Fair Values for Warrant Grants (Detail) - Warrants [member]	12 Months Ended
	Dec. 31, 2019 yr € / shares	Dec. 31, 2018 yr € / shares	Dec. 31, 2017 yr € / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average exercise price	€ 97.01	€ 54.43	€ 30.15
Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Expected volatility	52.00%	53.00%	54.00%
Risk-free interest rate	(0.77%)	(0.23%)	(0.34%)
Expected life of warrants (years) \| yr	5.05	5.05	5.05
Fair value of warrants granted in the year	€ 27,240	€ 17,900	€ 9,650
Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Expected volatility	54.00%	57.00%	60.00%
Risk-free interest rate	(0.05%)	0.46%	0.25%
Expected life of warrants (years) \| yr	7.10	7.14	7.10
Fair value of warrants granted in the year	€ 55,640	€ 31,810	€ 17,290

Finance Income and Finance Expenses - Schedule of Finance Income and Finance Expenses (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finance income expense [abstract]
Interest income	€ 10,056	€ 4,020	€ 923
Exchange rate gains	7,747	20,694
Total finance income	17,803	24,714	923
Interest expenses	207	127	97
Lease interest	1,014
Exchange rate losses			13,659
Total finance expenses	€ 1,221	€ 127	€ 13,756

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, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax on profit/(loss) for the year:
Current tax (expense)/income	€ 234	€ 394	€ 477
Current tax expense (income) and adjustments for current tax of prior periods	234	394	477
Tax for the year can be explained as follows:
Profit/(loss) before tax	(218,250)	(130,491)	(124,374)
Tax at the Danish corporation tax rate of 22%	48,015	28,708	27,362
Tax effect of:
Non-deductible costs	(8,249)	(4,327)	(1,553)
Additional tax deductions	10,875	4,074	356
Impact from associate	(1,680)	(2,383)
Tax credits			(1,028)
Other effects including effect of different tax rates	1,602	143	598
Deferred tax asset, not recognized	(50,329)	(25,821)	(25,258)
Tax on profit/(loss) for the year	€ 234	€ 394	€ 477
Effective tax rate	(0.11%)	(0.30%)	(0.38%)
Tax deductible losses	€ 123,234	€ 74,120	€ 52,084
Other temporary differences	5,631	4,416	631
Deferred tax asset, not recognized	(128,865)	(78,536)	(52,715)
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, 2019	Dec. 31, 2018	Dec. 31, 2017
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, 2019	Dec. 31, 2018	Dec. 31, 2017
Major components of tax expense (income) [abstract]
Income taxes refund	€ 0.7	€ 0.7	€ 0.7
Tax losses carryforwards	€ 560.2	€ 336.9

Intangible Assets - Summary of Goodwill (Detail) - EUR (€)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about intangible assets [line items]
Goodwill at beginning period	€ 3,495,000	€ 3,495,000
Impairment charge	0	0	€ 0
Goodwill at ending period	3,495,000	3,495,000	3,495,000
Gross carrying amount [member]
Disclosure of detailed information about intangible assets [line items]
Goodwill at beginning period	3,495,000	3,495,000
Additions
Goodwill at ending period	3,495,000	3,495,000	3,495,000
Accumulated impairment [member]
Disclosure of detailed information about intangible assets [line items]
Goodwill at beginning period
Impairment charge
Goodwill at ending period

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	€ 4,325
Depreciation charge	(6,688)	€ (880)	€ (734)
Property, plant and equipment at ending period	45,069	4,325
Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	9,115	6,798
Adoption of IFRS 16 "Leases"	18,437
Additions	28,535	2,701
Disposals	(161)	(384)
Foreign exchange translation	463
Property, plant and equipment at ending period	56,389	9,115	6,798
Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(4,790)	(4,241)
Depreciation charge	(6,688)	(880)
Disposals	154	331
Foreign exchange translation	4
Property, plant and equipment at ending period	(11,320)	(4,790)	(4,241)
Plant and machinery [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	2,197
Property, plant and equipment at ending period	4,067	2,197
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	5,645	4,507
Additions	2,393	1,206
Disposals		(68)
Property, plant and equipment at ending period	8,038	5,645	4,507
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	(3,448)	(3,054)
Depreciation charge	(523)	(410)
Disposals		16
Property, plant and equipment at ending period	(3,971)	(3,448)	(3,054)
Other equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	1,641
Property, plant and equipment at ending period	2,381	1,641
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	2,595	1,641
Additions	1,499	1,270
Disposals	(154)	(316)
Foreign exchange translation	4
Property, plant and equipment at ending period	3,944	2,595	1,641
Other equipment [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(954)	(854)
Depreciation charge	(758)	(415)
Disposals	154	315
Foreign exchange translation	(5)
Property, plant and equipment at ending period	(1,563)	(954)	(854)
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	487
Property, plant and equipment at ending period	3,730	487
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	875	650
Additions	3,418	225
Disposals	(7)
Foreign exchange translation	2
Property, plant and equipment at ending period	4,288	875	650
Leasehold improvements [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning period	(388)	(333)
Depreciation charge	(170)	(55)
Property, plant and equipment at ending period	(558)	€ (388)	€ (333)
Right-of-use assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at ending period	34,891
Right-of-use assets [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Adoption of IFRS 16 "Leases"	18,437
Additions	21,225
Foreign exchange translation	457
Property, plant and equipment at ending period	40,119
Right-of-use assets [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation charge	(5,237)
Foreign exchange translation	9
Property, plant and equipment at ending period	€ (5,228)

Property, Plant and Equipment - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
IFRS 16 [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Additions to right-of-use assets	€ 39.0
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Expenditure for improvements under construction	2.7	€ 0.2
Leaseholds Improvements Payable	€ 2.1	€ 0.0

Property, Plant and Equipment - Summary of Depreciations Charges (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	€ 6,688	€ 880	€ 734
Research and development costs [member]
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	5,282	827	701
General and administrative expense [member]
Disclosure of detailed information about depreciations charges [Line Items]
Depreciations charges	€ 1,406	€ 53	€ 33

Investment in Associate - Additional Information (Detail) - Visen Pharmaceuticals [member] $ in Millions	12 Months Ended
	Dec. 31, 2019 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 EUR (€)
Disclosure of associates and joint ventures [line items]
Ownership	50.00%	50.00%
Consideration received \| $		$ 40.0
Contingent liabilities or capital commitments	€ 0
Revenue from associate	13,400,000		€ 10,500,000
Trade receivables from associate	€ 800,000		€ 0

Investment in Associate - Schedule of Financial Information of Investment in VISEN (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financial position
Non-current assets	€ 65,565	€ 26,061
Current assets	611,167	292,907
Non-current liabilities	31,628
Current liabilities	€ 47,990	38,918
Visen Pharmaceuticals [member]
Visen Pharmaceuticals
Principal place of business	China
Ownership	50.00%
Profit or loss
Profit / (loss) for the year	€ (16,226)	(642)
Financial position
Non-current assets	23,291	34,819
Current assets	32,446	34,155
Non-current liabilities	250	0
Current liabilities	€ 1,667	€ 9

Investment in Associate - Equity (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of associates and joint ventures [line items]
Equity	€ 597,114	€ 280,050	€ 187,211	€ 176,613
Elimination of internal profit recognized	218,016	130,097	€ 123,897
Investment in associate	15,538	17,083
VISEN Pharmaceuticals [member]
Disclosure of associates and joint ventures [line items]
Equity	53,820	68,965
VISEN Pharmaceuticals [member] \| Associates [member]
Disclosure of associates and joint ventures [line items]
Company's share of equity before eliminations	26,910	34,483
Elimination of internal profit recognized	(11,372)	(17,400)
Company's share of equity after eliminations	15,538	17,083
Investment in associate	€ 15,538	€ 17,083

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

+ Details

Share Capital - Additional Information (Detail) - kr / shares	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of classes of share capital [abstract]
Number of shares issued	47,985,837	42,135,448	36,984,292	32,421,121	25,128,242	16,935,780
Share nominal value	kr 1

Share Capital - Summary of Number of Shares (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of classes of share capital [abstract]
Share capital beginning of year	42,135,448	36,984,292	32,421,121	25,128,242	16,935,780
Increase through cash contribution	5,850,389	5,151,156	4,563,171	7,292,879	8,192,462
Share capital end of year	47,985,837	42,135,448	36,984,292	32,421,121	25,128,242

Leases - Additional Information (Detail) € in Millions	12 Months Ended
Leases - Additional Information (Detail) € in Millions	Dec. 31, 2019 EUR (€)
Disclosure of maturity analysis of operating lease payments [line items]
Cash out-flow includes prepaid leases	€ 4.5
Bottom of range [member]
Disclosure of maturity analysis of operating lease payments [line items]
Optional Lease Extension Period	1 year
Lease Term	2 years
Top of range [member]
Disclosure of maturity analysis of operating lease payments [line items]
Optional Lease Extension Period	6 years
Lease Term	10 years

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

12 Months Ended

Dec. 31, 2019

EUR (€)

Text block [abstract]

Beginning of period

€ 17,700

^[1]

Additions

21,240

Accretion of interests

1,014

Cash out-flow

(3,870)

Foreign exchange translation (non-cash item)

535

End of period

€ 36,619

[1]	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Leases - Summary of Expenses, Relating To Lease Activities In The Consolidated Statements (Detail) € in Thousands	12 Months Ended
	Dec. 31, 2019 EUR (€)
Disclosure of quantitative information about right-of-use assets [line items]
Expenses relating to short term leases and leases of low value assets	€ 202
Lease interests	1,014
Total lease expenses	6,453
Research And Development Member
Disclosure of quantitative information about right-of-use assets [line items]
Depreciations	3,943
General And Administration Member
Disclosure of quantitative information about right-of-use assets [line items]
Depreciations	€ 1,294

Contract Liabilities - Additional Information (Detail) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contract liabilities [abstract]
Deferred income	€ 0.9	€ 6.9
Revenue recognized from deferred income	€ 6.1	€ 0.0	€ 0.0

Other Commitments and Contingencies - Additional Information (Detail) - EUR (€) € in Millions	Dec. 31, 2019	Dec. 31, 2018
Leasehold improvements [member]
Disclosure of commitments and contingencies [line items]
Contractual commitments	€ 8.5	€ 0.0

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

Dec. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Financial assets:

Deposits

€ 1,463

€ 1,158

Cash and cash equivalents

598,106

277,862

€ 195,351

€ 180,329

Financial liabilities

Lease liabilities

36,619

€ 17,700

17,700

^[1]

Financial liabilities at amortised cost, class [member]

Financial liabilities

Lease liabilities

36,619

Trade payables

27,765

19,740

Financial liabilities measured at amortized cost

64,384

19,740

Financial assets at amortised cost, class [member]

Financial assets:

Deposits

1,463

1,158

Receivables

804

Cash and cash equivalents

598,106

277,862

Financial assets measured at amortized cost

€ 600,373

€ 279,026

[1]	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Financial Risk Management and Financial Instruments - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 EUR (€)
Disclosure of detailed information about financial instruments [line items]
Sensitivity decrease/increase percentage	10.00%
Provisions for doubtful accounts	€ 0
Danish Kroner (DKK) [member]
Disclosure of detailed information about financial instruments [line items]
Foreign currency target percentage	4.50%
US Dollars (USD) [member]
Disclosure of detailed information about financial instruments [line items]
Increase Decrease In Foreign Currency Exchange Rate	10.00%
British Pounds (GBP) [member]
Disclosure of detailed information about financial instruments [line items]
Increase Decrease In Foreign Currency Exchange Rate	10.00%

Financial Risk Management and Financial Instruments - Schedule of Foreign Currency Sensitivity Analysis (Detail) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
US dollars to Euro [member]
Disclosure of detailed information about financial instruments [line items]
Nominal positions	€ 477,764	€ 178,308
Increase in foreign exchange rate	10.00%	10.00%
Profit and loss before tax	€ 47,776	€ 17,831
Equity before tax	47,776	17,831
British pounds to Euro [member]
Disclosure of detailed information about financial instruments [line items]
Nominal positions	€ (858)	€ (816)
Increase in foreign exchange rate	10.00%	10.00%
Profit and loss before tax	€ (86)	€ (82)
Equity before tax	€ (86)	€ (82)

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

Dec. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

^[1]

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

Lease liabilities

€ 36,619

€ 17,700

Trade payables

27,765

Total financial liabilities

64,384

Lease liabilities

43,031

Trade payables

27,765

Total financial liabilities

70,796

Within 1 year [member]

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

Lease liabilities

6,020

Trade payables

27,765

Total financial liabilities

33,785

Within 1 to 5 years [member]

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

Lease liabilities

19,405

Trade payables

Total financial liabilities

19,405

After 5 years [member]

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

Lease liabilities

17,606

Trade payables

Total financial liabilities

€ 17,606

[1]	Beginning balance includes the impact from implementing IFRS 16, “Leases” at January 1, 2019.

Investments in Group Enterprises - Summary of Investments in Group Enterprises (Detail)	12 Months Ended
	Dec. 31, 2019
Ascendis Pharma GmbH [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma GmbH
Domicile	Germany
Ownership	100.00%
Ascendis Pharma, Inc [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma, Inc.
Domicile	USA
Ownership	100.00%
Ascendis Pharma Ophthalmology Division A/S [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma Ophthalmology Division A/S
Domicile	Denmark
Ownership	100.00%
Ascendis Pharma Endocrinology Division A/S [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma Endocrinology Division A/S
Domicile	Denmark
Ownership	100.00%
Ascendis Pharma Bone Diseases A/S [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma Bone Diseases A/S
Domicile	Denmark
Ownership	100.00%
Ascendis Pharma Growth Disorders A/S [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma Growth Disorders A/S
Domicile	Denmark
Ownership	100.00%
Ascendis Pharma Oncology Division AS [member]
Disclosure of subsidiaries [line items]
Company	Ascendis Pharma Oncology Division A/S
Domicile	Denmark
Ownership	100.00%
Visen Pharmaceuticals [member]
Disclosure of subsidiaries [line items]
Company	Visen Pharmaceuticals
Domicile	Cayman Island
Ownership	50.00%

Ownership - Additional Information (Detail)	12 Months Ended
Ownership - Additional Information (Detail)	Dec. 31, 2019
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership percentage	5.00%
Description of nature of related party relationship	investors, or groups of affiliated investors, are known by us to beneficially own more than 5% of our outstanding ordinary shares
USA [member]
Disclosure of beneficial ownership [line items]
Description of American depository shares	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).
T Rowe Price Associates Inc [member] \| USA [member]
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership	T. Rowe Price Associates, Inc., USA
Entities affiliated with FMR LLC [member] \| USA [member]
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership	Entities affiliated with FMR LLC, USA
Entities affiliated with RA capital management LLC [member] \| USA [member]
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership	Entities affiliated with RA Capital Management, LLC, USA
Entities Affiliated With OrbiMed private investments VLP [member] \| USA [member]
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership	Entities affiliated with OrbiMed Private Investments V, L.P., USA
Baker Bros. advisors LP [member] \| USA [member]
Disclosure of beneficial ownership [line items]
Minimum beneficial ownership	Baker Bros. Advisors LP, USA