ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
= CONTENTS
FINANCIAL STATEMENTS OF THE PARENT COMPANY
NOTES 12-18
12 CONTINGENT ASSETS AND CONTINGENT LIABILITIES - CONTINUED
16 AUDIT FEES
102/111
Joint taxation
The Parent company is part of a Danish joint taxation scheme with Lundbeckfonden (Lundbeckfond Invest A/S
including subsidiaries), according to which the Company has partly a joint and several liability and partly a
secondary liability with respect to corporate income taxes, etc. for the jointly-taxed companies. In addition, the
Parent company has partly a joint and several liability and partly a secondary liability with respect to any
obligations to withhold tax on interest, royalties and dividends for these companies. However, in both cases
the secondary liability is capped at an amount equal to the share of the capital of the company directly or
indirectly owned by the ultimate parent company. The total tax obligation under the joint taxation scheme is
shown in the financial statements of Lundbeckfond Invest A/S.
Letters of intent
The Parent company has entered into agreements to cover operating losses in certain subsidiaries.
As collateral for bank guarantees, the Parent company has issued letter of intent to the banks in the amount of
DKK 7 million (DKK 6 million in 2020) on behalf of subsidiaries.
13 BANK DEBT AND BOND DEBT
Bank debt and bond debt falling due after more than five years from the balance sheet date amounted to
DKK 3,700 million at 31 December 2021 (DKK 3,699 million in 2020).
14 PAYABLES TO SUBSIDIARIES
Payables to subsidiaries falling due after more than five years from the balance sheet date amounted to DKK
9,066 million at 31 December 2021 (DKK 6,226 million in 2020).
15 FINANCIAL INSTRUMENTS
Foreign currency management is handled by the Parent company. See note 19 Financial instruments in the
consolidated financial statements.
The fair value of derivatives at year-end is disclosed in note 19 Financial instruments in the consolidated
financial statements. The fair value adjustment recognized in equity is disclosed in the statement of changes
in equity in the financial statements of the Parent company. All fair value adjustments are initially recognized
in equity.
Statutory audit
Assurance engagements other than audit
Tax advisory
Other services
Fee to PricewaterhouseCoopers
17 CONTRACTUAL OBLIGATIONS
Research and development milestones and collaborations
2021
DKKm
2020
DKKm
3
4
1
2
3
3
1
9
8
The Parent company has entered into a number of agreements relating to research and development as well
as other collaborations. According to the agreements, the Company is committed to pay certain milestones. At
31 December 2021, potential future milestone payments covering the coming ten-year period totalled up to
DKK 1,031 million (DKK 300 million in 2020).
Sales milestones
The Company is committed to pay certain commercial sales milestones. The amount depends on future sales.
Other purchase obligations
The Company has undertaken purchase obligations relating to property, plant and equipment in the amount of
DKK 48 million (DKK 82 million in 2020).
18 RELATED PARTIES
For information on related parties exercising controlling influence on the Parent company, see note 22 Related
parties in the consolidated financial statements.
The Parent company is included in the consolidated financial statements of Lundbeckfonden.View entire presentation