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Revenues from Contracts with Customers
9 Months Ended
Sep. 30, 2021
Revenues from Contracts with Customers  
Revenues from Contracts with Customers

4Revenues from Contracts with Customers

in EUR k

Three Months Ended September 30, 2021

    

Pharmaceutical

    

Diagnostics

COVID-19

    

Total

Rendering of services

2,532

7,261

20,203

29,996

Sales of goods

200

200

Total Revenues from contracts with external customers

2,732

7,261

20,203

30,196

Recognized over time

2,532

7,261

109

9,902

Recognized at a point in time

200

20,094

20,294

Total Revenues from contracts with external customers

2,732

7,261

20,203

30,196

    

Geographical information

 

Europe

 

2

1,479

19,971

21,452

—Germany*#

 

48

19,913

19,961

—Netherlands**

1

64

65

Middle East

 

18

4,033

4,051

North America

 

2,696

908

232

3,836

—United States#

2,696

867

232

3,795

Latin America

 

16

661

677

Asia Pacific

 

180

180

Total Revenues from contracts with external customers

 

2,732

 

7,261

20,203

 

30,196

*Country of the incorporation of Centogene GmbH

**Country of the incorporation of Centogene N.V.

#

Countries contributing more than 10% of the Group’s total consolidated revenues for the three months ended September 30, 2020, and 2021, respectively.

in EUR k

Three Months Ended September 30, 2020

    

Pharmaceutical

    

Diagnostics

    

COVID-19

Total

Rendering of services

3,598

5,069

26,795

35,462

Sales of goods

202

641

843

Total Revenues from contracts with external customers

3,800

5,069

27,436

36,305

Recognized over time

3,598

5,069

8,693

17,360

Recognized at a point in time

202

18,743

18,945

Total Revenues from contracts with external customers

3,800

5,069

27,436

36,305

Geographical information

Europe

 

39

1,547

 

27,238

28,824

—Germany*#

 

20

52

 

26,568

26,640

—Netherlands**

 

2

2

Middle East

 

26

2,648

 

2,674

North America

 

3,735

333

 

197

4,265

—United States#

 

3,735

299

 

197

4,231

Latin America

 

398

 

1

399

Asia Pacific

 

143

 

143

Total Revenues from contracts with external customers

 

3,800

 

5,069

 

27,436

36,305

in EUR k

Nine months ended September 30, 2021

    

Pharmaceutical

    

Diagnostics

COVID-19

Total

Rendering of services

8,578

20,359

117,505

146,442

Sales of goods

583

2

585

Total Revenues from contracts with external customers

9,161

20,359

117,507

147,027

Recognized over time

8,578

20,359

19,081

48,018

Recognized at a point in time

583

98,426

99,009

Total Revenues from contracts with external customers

9,161

20,359

117,507

147,027

    

Geographical information

 

Europe

 

200

4,013

116,253

120,466

—Germany*#

 

158

112,581

112,739

Netherlands**

6

3,603

3,609

Middle East

 

73

12,118

12,191

North America

 

8,832

2,062

1,176

12,070

Latin America

 

56

1,679

1,735

Asia Pacific

 

487

78

565

Total Revenues from contracts with external customers

 

9,161

20,359

117,507

147,027

*Country of the incorporation of Centogene GmbH

**Country of the incorporation of Centogene N.V.

#

Countries contributing more than 10% of the Group’s total consolidated revenues for the nine months ended September 30, 2020, and 2021, respectively.

in EUR k

Nine months ended September 30, 2020

    

Pharmaceutical

    

Diagnostics

    

COVID-19

Total

Rendering of services

11,478

16,308

28,848

56,634

Sales of goods

812

683

1,495

Total Revenues from contracts with external customers

12,290

16,308

29,531

58,129

Recognized over time

11,478

16,308

9,215

37,001

Recognized at a point in time

812

20,316

21,128

Total Revenues from contracts with external customers

12,290

16,308

29,531

58,129

    

Geographical information

 

Europe

 

106

4,282

29,323

33,711

—Germany*#

 

58

144

28,645

28,847

Netherlands**

3

2

5

Middle East

 

74

8,852

8,926

North America

 

12,110

1,446

206

13,762

—United States#

 

12,110

1,254

206

13,570

Latin America

 

1,362

2

1,364

Asia Pacific

 

366

366

Total Revenues from contracts with external customers

 

12,290

16,308

29,531

58,129

The Group collaborated with a range of pharmaceutical partners on a worldwide basis in 2021 and 2020. In addition, in cases where pharmaceutical partners are developing a new rare disease treatment, it is generally anticipated that the final approved treatment will be made available in several countries or globally. As a result, the Group allocates the revenues of the pharmaceutical segment by geographical region by reference to the location where each pharmaceutical partner mainly operates, which is based on the region from which most of their revenues are generated. The allocation of revenues in the diagnostics segment and COVID-19 segments is based on the location of each customer.

Pharmaceutical Segment

During the three and nine months ended September 30, 2021, revenues from one pharmaceutical partner represented 6.5% and 4.8%, respectively, of the Group's total revenues (the three and nine months ended September 30, 2020: 7.3% and 14.4%, respectively).

COVID-19 Segment

During the three months ended September 30, 2021, revenues from two COVID-19 partners represented 2.1% and nil, respectively, of the Group’s total revenues (the three months ended September 30, 2020: 25.4% and 23.9%, respectively). In the nine months ended September 30, 2021, revenues from two COVID-19 partners represented 4.2% and 12.1%, respectively, of the Group’s total revenues (the nine months ended September 30, 2020: 15.9% and 15.0%, respectively).

To support the COVID-19 test offerings, the Company acquired laboratory facilities and equipment, developed CENTOGENE’s Corona Test Portal and leased laboratory space at several locations in Germany. Additionally, COVID-19 testing capacity is provided through custom-built CentoTrucks, mobile laboratories in a container setup to carry out the COVID-19 analysis. Total investments in COVID-19 testing for the three and nine months ended September 30, 2021 amounted to EUR 35k and EUR 2,069k, respectively, in property, plant and equipment (the three and nine months ended September 30, 2020: EUR 2,927k and EUR 4,800k, respectively). There were no additions to right-of-use assets for the three and nine months ended September, 2021 (the three and nine months ended September 30, 2020: EUR nil and EUR 600k, respectively).

An amount of EUR 354k is included in intangible assets and relates to the development of CENTOGENE’s Corona Test Portal for the nine months ended September 30, 2021 (the three and nine months ended September 30, 2020: EUR 373k and EUR 900k, respectively).

The COVID-19 pandemic and its effects on Centogene’s COVID-19 testing business and its core business segments have been and remain a source of uncertainty. The Group’s management has continually monitored the development of the COVID-19 pandemic and the need for testing on a broader scale in making decisions concerning the allocation of the Group’s resources.

Due to changes during the COVID-19 pandemic, particularly developments in vaccination campaigns with increasing vaccination numbers and relaxation of testing regulations by several countries, the Group has reassessed its long-term plans on how to continue the Company’s initiative of providing COVID-19 testing, including the likelihood of renewing certain nonprofitable lease and service agreements related to providing COVID-19 testing solutions at the conclusion of their contract terms. As a result, in line with the Group’s accounting policies for long-lived assets, management reviewed the estimated useful lives of long-lived assets utilized in the COVID-19 test offerings given changes in circumstances and management’s expectations. Management considered how the underlying assets are currently deployed, including whether the assets are utilized in leased facilities or service agreements which management is unlikely to renew, and potential alternative uses of the assets within the COVID-19 business or diagnostics and pharmaceutical businesses. Consequently, the Group prospectively adjusted the estimated useful lives of its long-lived assets which include property, plant and equipment, right of use assets and intangible assets which had in aggregate carrying amount of € 8,549k to a remaining estimated useful life of 8 months, with effect at the beginning of the third quarter of 2021. This prospective change in estimate resulted in accelerated depreciation expense of € 2,384k during the three months and nine months, respectively ended September 30, 2021.

Following the closure of the Hamburg lab, the Group recognized an accelerated depreciation of property, plant and equipment and right-of-use assets in the aggregate amount of € 1,026k in the three and nine months ended September 30, 2021 (nil in the three and nine months ended September 30, 2020).

The carrying value of COVID-19 related long-lived assets was subject to an impairment test after all adjustments were recorded. However, no further impairments were identified.

Additionally, management assessed inventory obsolescence on all COVID-19 related inventories which resulted in an inventory write-off included within cost of sales in the amount of € 603k and € 1,795k for the three and nine months ended September 30, 2021, respectively (nil in the three and nine months ended September 30, 2020).