ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
E CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6
6 INTANGIBLE ASSETS
64/111
Total
Product
Intangible assets
2021
Cost at 1 January
Goodwill
DKKm
rights¹
Other
rights²
Projects in
intangible
progress²
assets
DKKm
DKKm
DKKm
DKKm
Intangible assets
Product
Other
Projects in
Total
intangible
Goodwill
rights'
rights²
progress²
assets
DKKm
DKKm
DKKm
DKKM
DKKm
2020
4,845
30,253
1,731
171
37,000
Cost at 1 January
Effect of foreign exchange differences
347
1,209
9
1
1,566
Effect of foreign exchange differences
Transfers
110
(121)
(11)
Transfers
Additions
102
18
82
202
Additions
5,278
31,610
1,826
134
38,848
(409)
(1,357)
(12)
(1)
(1,779)
55
(55)
21
93
114
Additions through acquisitions, change in opening
balance
185
185
Additions through acquisitions, change in opening
balance
(24)
(24)
Disposals
(90)
(29)
(119)
Disposals
(159)
(159)
Cost at 31 December
5,377
31,474
1,839
133
38,823
Cost at 31 December
4,845
30,253
1,731
171
37,000
Amortization and impairment losses at 1 January
Effect of foreign exchange differences
12,621
572
1,641
14,262
Amortization and impairment losses at 1 January
10,878
1,712
3
12,593
8
580
Effect of foreign exchange differences
(597)
(10)
(607)
Amortization
1,274
68
1,342
Transfers
3
(3)
Disposals
(90)
(21)
(111)
Amortization
1,548
63
1,611
Amortization and impairment losses at 31 December
14,377
1,696
16,073
Impairment losses
792
792
Carrying amount at 31 December
5,377
17,097
143
133
22,750
Disposals
(127)
(127)
Amortization and impairment losses at 31 December
Carrying amount at 31 December
12,621
1,641
14,262
4,845
17,632
90
171
22,738
1) In 2021, product rights not yet commercialized amounted to DKK 5,992 million (DKK 5,890 million in 2020).
2) Other rights and projects in progress include items such as the IT system SAP. The amounts include directly attributable internal expenses.
In 2021, Lundbeck adjusted the goodwill related to the acquisition of Alder BioPharmaceuticals (subsequently
renamed to Lundbeck Seattle BioPharmaceuticals, Inc.) due to the identification of accounting errors in the
purchase price allocation in prior years related to the fair value of a future milestone payment to a third party
of Alder BioPharmaceuticals of DKK 273 million (see note 18 Other payables) and an unrecognized
prepayment of DKK 39 million.
The 2021 changes to the purchase price allocation are (a) a net increase in goodwill of DKK 185 million, (b)
an increase in other payables of DKK 273 million, (c) an increase in prepayments of DKK 39 million, and
(d) a net decrease in deferred tax liabilities of DKK 49 million.
Due to immateriality, the accounting errors are recognized in 2021 and not as an adjustment to prior years.
In 2020, Lundbeck changed the initial purchase price allocation relating to the acquisition of Alder
BioPharmaceuticals (subsequently renamed to Lundbeck Seattle BioPharmaceuticals, Inc.) due to
prepayments to a supplier expensed prior to the acquisition date and due to a reassessment of the inventory
valuation. This resulted in a decrease in goodwill of DKK 24 million, comprising of an increase in prepayments
of DKK 164 million and a decrease in inventories, net of tax, of DKK 140 million.View entire presentation