Investment in Associate

12 Months Ended

Dec. 31, 2023

Investments accounted for using equity method [abstract]

Investment in Associate

Note 12—Investment in Associate

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

The Company has granted VISEN exclusive rights to develop and commercialize TransCon hGH, TransCon PTH and TransCon CNP in Greater China, and as consideration for the granting of such rights has received a 50% ownership of VISEN’s issued and outstanding shares. On January 8, 2021, the Company entered into an equity investment of $12.5 million as part of VISEN’s $150.0 million Series B financing. Following VISEN’s Series B financing, the Company retained 43.93% of VISEN’s issued and outstanding shares. As a result, a non-cash gain of €42.3 million was recognized in the consolidated statement of profit or loss as part of share of profit/(loss) of associate in 2021. The Series B financing did not change the accounting treatment of VISEN.

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

	VISEN Pharmaceuticals
Principal place of business	China
	2023			2022
	(EUR’000)
Statement of profit or (loss)
Profit/(loss) for the year from continuing operations		(41,873	)		(40,283	)
Total comprehensive income		(41,859	)		(40,273	)
Statement of financial position
Non-current assets		9,596			21,410
Current assets		48,041			92,204
Total assets		57,637			113,614
Equity		51,078			100,062
Non-current liabilities		140			180
Current liabilities		6,419			13,372
Total equity and liabilities		57,637			113,614
Company’s share of equity before eliminations		22,438			43,957
Elimination of internal profit and other equity method adjustments		(16,752	)		(21,025	)
Company’s share of equity		5,686			22,932
Investment in associate at December 31		5,686			22,932
Present ownership at December 31		43.93	%		43.93	%
Transactions and outstanding balances as of December 31
Invoicing of goods and services to associate		15,026			22,327
Trade receivables from associate		991			3,554
Contract liabilities		7,133			14,213