argenx(US:ARGX)2019-03-26 20:39Revenue and Income - Total revenue for the year ended December 31, 2018, decreased by €14.9 million to €21.5 million, a 41% decline compared to €36.4 million in 2017[811]. - Total operating income for 2018 was €29.2 million, a 29% decrease from €41.3 million in 2017[810]. - The company reported a total comprehensive loss of €66.6 million for 2018, a 137% increase from €28.1 million in 2017[810]. - Loss before taxes for 2018 was €65.8 million, a 140% increase from €27.5 million in 2017[810]. - The company had accumulated losses of €169.6 million as of December 31, 2018, and expects to continue incurring significant operating losses in the foreseeable future[863]. Expenses - Research and development expenses totaled €83.6 million for the year ended December 31, 2018, a 62% increase from €51.7 million in 2017, driven by higher external research and personnel expenses[818]. - Selling, general and administrative expenses increased to €27.5 million in 2018, a 121% rise from €12.4 million in 2017, mainly due to higher personnel and consulting fees[822]. - Personnel expenses in research and development increased by €10.0 million in 2018, largely due to share-based compensation and additional personnel costs[818]. - Upfront payments decreased by 57% to €8.6 million in 2018 from €20.1 million in 2017, primarily due to the completion of preclinical activities under collaborations with LEO Pharma and AbbVie[811][812]. - Research and development service fees decreased by €5.2 million, or 79%, to €1.4 million in 2018 compared to €6.6 million in 2017, linked to the completion of preclinical activities[811][815]. Research and Development - External research and development expenses rose to €48.9 million in 2018, up 75% from €27.9 million in 2017, primarily due to increased clinical trial costs[820]. - The lead product candidate efgartigimod incurred external research and development expenses of €30.9 million in 2018, a 150% increase from €12.4 million in 2017[820]. - The company employed 75 research and development personnel as of December 31, 2018, compared to 58 employees in 2017, indicating a significant increase in workforce[818]. Financial Position - Cash and cash equivalents at the end of the period increased to €281.0 million in 2018 from €190.9 million in 2017, a rise of €90.2 million[852]. - Net cash used in operating activities increased to €53.8 million in 2018, up €17.3 million from €36.5 million in 2017[852]. - The net cash inflow from financing activities was €244.7 million for the year ended December 31, 2018, compared to €305.4 million in 2017[856]. - The company expects existing cash and cash equivalents to fund operating expenses and capital expenditure requirements for at least the next 12 months[864]. Commitments and Obligations - The total commitment under the commercial supply agreement with Lonza for efgartigimod amounts to a minimum of £25.3 million over a period of five years starting from 2020[873]. - The company has outstanding commitments for efgartigimod of approximately €42.2 million and for cusatuzumab of approximately €4.5 million starting from 2019[873]. - The operating lease commitments total €3,004,000, with €1,028,000 due within one year[869]. - The purchase obligation amounts to €46,626,000, with €13,610,000 due within one year[869]. Other Financial Information - Financial income for 2018 amounted to €3.7 million, up from €1.3 million in 2017, reflecting a €2.4 million increase primarily from higher interest on cash and equivalents[826]. - Exchange gains totaled €12.3 million for the year ended December 31, 2018, attributed to favorable fluctuations in the EUR/USD exchange rate[827]. - The company has no off-balance sheet arrangements as defined by SEC regulations[867]. - The company is unable to estimate the amounts of increased operating expenses associated with completing the research and development of its product candidates due to numerous risks and uncertainties[864].