0001558370-21-014446 | 6-K | XBRL Viewer

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2021
Document And Entity Information Abstract
Entity Registrant Name	ProQR Therapeutics N.V.
Entity Central Index Key	0001612940
Document Type	6-K
Document Period End Date	Sep. 30, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

Condensed Consolidated Statement of Financial Position - EUR (€)	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	€ 156,141,000	€ 75,838,000
Prepayments and other receivables	20,407,000	3,762,000
Social securities and other taxes	511,000	421,000
Total current assets	177,059,000	80,021,000
Property, plant and equipment	17,559,000	18,601,000
Investments in associates	92,000	107,000
Investments in financial assets	621,000
Total assets	195,331,000	98,729,000
Equity
Equity attributable to owners of the Company	128,606,000	57,091,000
Non-controlling interests	(585,000)	(545,000)
Total equity	128,021,000	56,546,000
Current liabilities
Borrowings	1,791,000	1,135,000
Lease liabilities	1,395,000	1,260,000
Derivative financial instruments	2,263,000	839,000
Trade payables	894,000	221,000
Current income tax liability	0	0
Social securities and other taxes	546,000	22,000
Pension premiums		6,000
Deferred income	19,987,000	700,000
Other current liabilities	7,812,000	6,118,000
Total current liabilities	34,688,000	10,301,000
Borrowings	17,513,000	16,189,000
Lease liabilities	15,109,000	15,693,000
Total liabilities	67,310,000	42,183,000
Total equity and liabilities	€ 195,331,000	€ 98,729,000

Condensed Consolidated Statement of Profit or Loss and OCI - EUR (€)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statement of Profit or Loss and OCI
Revenue	€ 872,000		€ 1,115,000
Other income	286,000	€ 251,000	838,000	€ 9,188,000
Research and development costs	(11,124,000)	(8,304,000)	(29,764,000)	(29,716,000)
General and administrative costs	(4,591,000)	(2,809,000)	(12,052,000)	(10,173,000)
Total operating costs	(15,715,000)	(11,113,000)	(41,816,000)	(39,889,000)
Operating result	(14,557,000)	(10,862,000)	(39,863,000)	(30,701,000)
Finance income and expense	266,000	(1,863,000)	(2,491,000)	(2,024,000)
Results related to associates	(132,000)	(84,000)	(239,000)	(270,000)
Gain on recognition of financial asset			621,000
Results related to financial liabilities measured at fair value through profit or loss	(611,000)	(305,000)	(1,373,000)	(305,000)
Result before corporate income taxes	(15,034,000)	(13,114,000)	(43,345,000)	(33,300,000)
Income taxes	(35,000)	(75,000)	(95,000)	(86,000)
Result for the period	(15,069,000)	(13,189,000)	(43,440,000)	(33,386,000)
Other comprehensive income (foreign exchange differences on foreign operation)	206,000	(255,000)	461,000	(134,000)
Total comprehensive income	(14,863,000)	(13,444,000)	(42,979,000)	(33,520,000)
Result attributable to
Owners of the Company	(15,047,000)	(13,181,000)	(43,400,000)	(33,348,000)
Non-controlling interests	(22,000)	(8,000)	(40,000)	(38,000)
Result for the period	(15,069,000)	(13,189,000)	(43,440,000)	(33,386,000)
Total comprehensive income attributable to
Owners of the Company	(14,841,000)	(13,436,000)	(42,939,000)	(33,482,000)
Non-controlling interests	(22,000)	(8,000)	(40,000)	(38,000)
Total comprehensive income	€ (14,863,000)	€ (13,444,000)	€ (42,979,000)	€ (33,520,000)
Share information
Weighted average number of shares outstanding	68,263,034	50,143,262	61,804,367	50,017,990
Earnings per share attributable to the equity holders of the Company (expressed in Euro per share)
Basic loss per share	€ (0.22)	€ (0.26)	€ (0.70)	€ (0.67)
Diluted loss per share	€ (0.22)	€ (0.26)	€ (0.70)	€ (0.67)

Condensed Consolidated Statement of Changes in Equity - EUR (€) € in Thousands	Share capital	Share Premium [Member]	Equity Settled Employee Benefit Reserve	Option premium on convertible loan	Translation Reserve	Accumulated Deficit	Total	Non-controlling interests [Member]	Total
Balance at beginning of period at Dec. 31, 2019	€ 2,159	€ 287,214	€ 16,551		€ 151	€ (211,746)	€ 94,329	€ (496)	€ 93,833
Balance at beginning of period (in shares) at Dec. 31, 2019	53,975,838
Result for the period						(33,348)	(33,348)	(38)	(33,386)
Other comprehensive income					(134)		(134)		(134)
Recognition of share-based payments	€ 2	283	6,218				6,503		6,503
Issuance of ordinary shares	€ 2	270					272		272
Issuance of ordinary shares (in shares)	100,902
Treasury shares transferred (in shares)	(299,615)
Recognition of equity component of convertible loan				€ 280			280		280
Shares options lapsed			(63)			63
Share options exercised		724	(466)			466	724		724
Share options exercised (in shares)	299,615
Balance at end of period at Sep. 30, 2020	€ 2,163	288,491	22,240	280	17	(244,565)	68,626	(534)	68,092
Balance at end of period (in shares) at Sep. 30, 2020	54,076,740
Balance at beginning of period at Dec. 31, 2020	€ 2,165	288,757	23,825	280	(189)	(257,747)	57,091	(545)	56,546
Balance at beginning of period (in shares) at Dec. 31, 2020	54,131,553
Result for the period						(43,400)	(43,400)	(40)	(43,440)
Other comprehensive income					461		461		461
Recognition of share-based payments	€ 5	382	4,435				4,822		4,822
Recognition of share-based payments (in shares)	112,657
Issuance of ordinary shares	€ 820	107,657					108,477		108,477
Issuance of ordinary shares (in shares)	20,498,451
Treasury shares transferred (in shares)	(217,933)
Shares options lapsed			(391)			391
Share options exercised	€ 5	1,150	(821)			821	1,155		1,155
Share options exercised (in shares)	338,653
Balance at end of period at Sep. 30, 2021	€ 2,995	€ 397,946	€ 27,048	€ 280	€ 272	€ (299,935)	€ 128,606	€ (585)	€ 128,021
Balance at end of period (in shares) at Sep. 30, 2021	74,863,381

Consolidated Statement of Cash Flows - EUR (€) € in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net result	€ (15,069)	€ (13,189)	€ (43,440)	€ (33,386)
Adjustments for:
Depreciation	544	651	1,777	1,703
Share-based compensation	1,716	1,676	4,435	6,348
Other income				(8,423)
Financial income and expenses	(266)	1,863	2,491	2,024
Results related to associates	(132)	(84)	(239)	(270)
Gain on recognition of financial asset			(621)
Results related to financial liabilities measured at fair value through profit or loss	(611)	(305)	(1,373)	(305)
Net foreign exchange gain / (loss)	206	(255)	461	(134)
Income tax expenses	35	75	95	86
Changes in working capital	4,630	(321)	5,197	(3,440)
Cash used in operations	(7,461)	(9,111)	(27,993)	(34,647)
Corporate income tax paid	(35)	(157)	(95)	(168)
Interest received		27	5	118
Interest paid	(561)	(569)	(1,714)	(607)
Net cash used in operating activities	(8,057)	(9,810)	(29,797)	(35,304)
Cash flow from investing activities
Purchases of property, plant and equipment	(175)	(264)	(259)	(806)
Net cash used in investing activities	(175)	(264)	(259)	(806)
Cash flow from financing activities
Proceeds from issuance of shares, net of transaction costs	23,223		108,477
Proceeds from exercise of share options	402	12	1,155	724
Proceeds from borrowings	284		853	579
Proceeds from convertible loans		13,477		13,542
Repayment of lease liability	(347)	(235)	(597)	(542)
Net cash generated by financing activities	23,562	13,254	109,888	14,303
Net increase (decrease) in cash and cash equivalents	15,330	3,180	79,832	(21,807)
Currency effect cash and cash equivalents	1,369	(1,474)	471	(1,296)
Cash and cash equivalents, at beginning of the period	139,442	87,141	75,838	111,950
Cash and cash equivalents at the end of the period	€ 156,141	€ 88,847	€ 156,141	€ 88,847

General Information

9 Months Ended

Sep. 30, 2021

General Information

General Information

1. General information

ProQR Therapeutics N.V., or “ProQR” or the “Company”, is a development stage company domiciled in the Netherlands that primarily focuses on the development and commercialization of novel therapeutic medicines.

Since September 18, 2014, the Company’s ordinary shares are listed on the NASDAQ Global Market under ticker symbol PRQR.

The Company was incorporated in the Netherlands, on February 21, 2012 and was reorganized from a private company with limited liability to a public company with limited liability on September 23, 2014. The Company has its statutory seat in Leiden, the Netherlands. The address of its headquarters and registered office is Zernikedreef 9, 2333 CK Leiden, the Netherlands.

ProQR Therapeutics N.V. is the ultimate parent company of the following entities:

●	ProQR Therapeutics Holding B.V. (100%);

●	ProQR Therapeutics I B.V. (100%);

●	ProQR Therapeutics II B.V. (100%);

●	ProQR Therapeutics III B.V. (100%);

●	ProQR Therapeutics IV B.V. (100%);

●	ProQR Therapeutics V B.V. (100%);

●	ProQR Therapeutics VI B.V. (100%);

●	ProQR Therapeutics VII B.V. (100%);

●	ProQR Therapeutics VIII B.V. (100%);

●	ProQR Therapeutics IX B.V. (100%);

●	ProQR Therapeutics I Inc. (100%);

●	Amylon Therapeutics B.V. (80%);

●	Amylon Therapeutics Inc. (80%);

ProQR Therapeutics N.V. is also statutory director of Stichting Bewaarneming Aandelen ProQR (“ESOP Foundation”) and has full control over this entity. The Company holds an 8% minority shareholding in Yarrow Biotechnology, Inc.

As used in these condensed consolidated financial statements, unless the context indicates otherwise, all references to “ProQR” or the “Company” refer to ProQR Therapeutics N.V. including its subsidiaries and the ESOP Foundation.

Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

These condensed consolidated financial statements have been prepared in accordance with the recognition and measurement criteria of IFRS. Certain disclosures required by IAS 34 Interim Financial Statements have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2020. In the opinion of management, all events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period are disclosed in these condensed consolidated financial statements.

Revenue is recognized in accordance with the recognition and measurement criteria of IFRS 15 Revenue from contracts with customers.

The Company’s financial results have varied substantially, and are expected to continue to vary, from period to period. The Company believes that its ordinary activities are not linked to any particular seasonal factors.

The Company operates in one reportable segment, which comprises the discovery and development of innovative, RNA based therapeutics.

Adoption of new and revised International Financial Reporting Standards

9 Months Ended

Sep. 30, 2021

Adoption of new and revised International Financial Reporting Standards

Adoption of new and revised International Financial Reporting Standards

3. Adoption of new and revised International Financial Reporting Standards

The accounting policies adopted in the preparation of the condensed consolidated financial statements are consistent with those applied in the preparation of the Company’s annual financial statements for the year ended December 31, 2020.

New Standards and Interpretations, which became effective as of January 1, 2021, did not have a material impact on our condensed consolidated financial statements.

Critical Accounting Estimates and Judgments

9 Months Ended

Sep. 30, 2021

Critical Accounting Estimates and Judgments

Critical Accounting Estimates and Judgments

4. Critical Accounting Estimates and Judgments

In the application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Research and development expenditures

Research expenditures are currently not capitalized but are reflected in the income statement because the criteria for capitalization are not met. At each balance sheet date, the Company estimates the level of service performed by the vendors and the associated costs incurred for the services performed.

Although we do not expect the estimates to be materially different from amounts actually incurred, the understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in reporting amounts that are too high or too low in any particular period.

Convertible debt

The terms of our convertible debt agreements are evaluated to determine whether the convertible debt instruments contain both liability and equity components, in which case the instrument is a compound financial instrument. Convertible debt agreements are also evaluated to determine whether they contain embedded derivatives, in which case the instrument is a hybrid financial instrument. Judgement is required to determine the classification of such financial instruments based on the terms and conditions of the convertible debt agreements, the currencies in which the debt instruments are denominated and the Company’s functional currency.

Estimation methods are used to determine the fair values of the liability and equity components of compound financial instruments and to determine the fair value of embedded derivatives included in hybrid financial instruments. The determination of the effective interest used for the host contracts of hybrid financial instruments and the liability

components of compound financial instruments is dependent on the outcome of such estimations. Evaluating the reasonableness of these estimations and the assumptions and inputs used in the valuation methods requires a significant amount of judgement and is therefore subject to an inherent risk of error.

Cash and Cash Equivalents

9 Months Ended

Sep. 30, 2021

Cash and Cash Equivalents.

Cash and Cash Equivalents

5. Cash and Cash Equivalents

At September 30, 2021, the Company’s cash and cash equivalents were € 156,141,000 as compared to € 75,838,000 at December 31, 2020. The cash balances are held at banks with investment grade credit ratings. The cash at banks is at full disposal of the Company.

Property, plant and equipment

9 Months Ended

Sep. 30, 2021

Property, plant and equipment.

Property, plant and equipment

6. Property, plant and equipment

At September 30, 2021 and December 31, 2020, property plant and equipment consisted of buildings and leasehold improvements, laboratory equipment and other assets. Buildings and leasehold improvements include a right-of-use asset relating to the lease of our Leiden office and laboratory space, with a carrying amount of € 15,978,000 at September 30, 2021 (December 31, 2020: € 16,775,000).

Current liabilities

9 Months Ended

Sep. 30, 2021

Current liabilities.

Current liabilities

7. Current liabilities

At September 30, 2021 and December 31, 2020, the other current liabilities consisted principally of accruals for services provided by vendors not yet billed, payroll related accruals and other miscellaneous liabilities.

Borrowings

9 Months Ended

Sep. 30, 2021

Borrowings

Borrowings

8. Borrowings


	September 30,	December 31,
	2021	2020
	€ 1,000	€ 1,000
Innovation credit	3,623	2,770
Accrued interest on innovation credit	548	307
Convertible notes	14,564	13,812
Accrued interest on convertible notes	569	435

Total borrowings	19,304	17,324
Current portion	(1,791)	(1,135)
	17,513	16,189

On December 10, 2018 ProQR was awarded an Innovation credit for the sepofarsen program for LCA 10. Amounts will be drawn under this facility from 2018 through 2022. The total credit of € 4.7 million will be used to conduct the Phase 2/3 clinical study for sepofarsen and to finance efforts to obtain regulatory and ethical market approval (NDA/MAA). The credit, including accrued interest of 10% per annum, is repayable depending on ProQR obtaining market approval for sepofarsen. An amount of € 3.6 million had been received as at September 30, 2021. Accumulated interest amounted to € 0.5 million as at September, 2021. The assets that are co-financed with the granted innovation credit are subject to a right of pledge for the benefit of RVO.

Convertible loans

On July 14, 2020, the Company entered into a convertible debt financing agreement with Pontifax Medison Debt Financing. Under the agreement, up to $ 20 million in convertible debt financing is available to the Company in two tranches of $ 10 million each that will mature over a 54 month period and have an interest-only period of 24 months. One tranche of $ 10 million had been drawn down as of September 30, 2021.

A second close of the convertible debt financing agreement was completed on August 6, 2020 with Kreos Capital. Under the second agreement, up to € 10 million in convertible debt financing is available to the Company in two tranches of € 5 million each that will mature over a 54 month period and have an interest-only period of 24 months. One tranche of € 5 million had been drawn down as of September 30, 2021.

Pontifax and/or Kreos may elect to convert the outstanding loans into ProQR ordinary shares at any time prior to repayment at a fixed conversion price. ProQR also has the ability to convert the loans into its ordinary shares, at the same conversion price, if the Company’s stock price reaches a pre-determined threshold. In connection with the loan agreement, the Company issued to Pontifax and Kreos warrants to purchase up to an aggregate of 302,676 shares of its common stock at a fixed exercise price.

Pontifax’ conversion option and warrants are accounted for as embedded derivatives and are recognized separately from the host contract as financial liabilities at fair value through profit or loss. The host contract is recognized at amortized cost.

The Kreos loan is accounted for as a compound financial instrument. The liability component is recognized at amortized cost. The equity component is initially recognized at fair value as option premium on convertible loan and will not be subsequently remeasured. Kreos’ warrants are accounted for as embedded derivatives and are recognized as financial liabilities at fair value through profit or loss.

Convertible loans were issued to Amylon Therapeutics B.V. and are interest-bearing at an average rate of 8% per annum. They are convertible into a variable number of ordinary shares within 36 months at the option of the holder or the Company in case financing criteria are met. Any unconverted loans become payable on demand after 24 – 36 months in equal quarterly terms.

Lease Liabilities

9 Months Ended

Sep. 30, 2021

Lease liabilities

Lease Liabilities

9. Lease liabilities

At September 30, 2021 and December 31, 2020, lease liabilities primarily consisted of the Company’s lease of office and laboratory facilities at Zernikedreef in Leiden, the Netherlands.

The lease agreement for our Leiden headquarters, where our main offices and laboratories are located, was put in place on July 1, 2020 and the current lease term is 11 years. The lease agreement may be further extended for subsequent 5 year terms. The carrying amount of the right-of-use asset is disclosed in note 6 Property, plant & equipment.

Shareholders equity

9 Months Ended

Sep. 30, 2021

Shareholders equity

Shareholders' equity

10. Shareholders’ equity

The authorized share capital of the Company amounting to € 13,600,000 consists of 170,000,000 ordinary shares and 170,000,000 preference shares with a par value of € 0.04 per share. At September 30, 2021, 74,863,381 ordinary shares were issued and fully paid in cash, of which 3,708,810 were held by the Company as treasury shares (December 31, 2020: 3,926,743).

On November 7, 2018, the Company filed a shelf registration statement, which permitted the offering, issuance and sale by the Company of up to a maximum aggregate offering price of $ 300,000,000 of its ordinary shares, warrants and/or units.

On March 31, 2020, the Company entered into a sales agreement, which permitted the offering, issuance and sale by the Company of up to a maximum aggregate offering price of $ 75,000,000 of its ordinary shares that may be issued and sold

in one or more at-the-market offerings with Citigroup Global Markets, Inc. and Cantor Fitzgerald & Co. In 2020, no shares were issued pursuant to this ATM facility.

In January 2021, the Company issued 585,398 ordinary shares under our sales agreement for at-the-market offerings with Citigroup Global Markets Inc. and Cantor Fitzgerald & Co. The gross proceeds from this sale amounted to € 2,767,000, with transaction costs amounting to € 114,000, resulting in net proceeds of € 2,653,000.

In April 2021, the Company consummated an underwritten public offering of 15,923,077 ordinary shares at an issue price of $ 6.50 per share. The gross proceeds from this offering amounted to € 88,115,000 while the transaction costs amounted to € 5,499,000, resulting in net proceeds of € 82,616,000.

In September 2021, the Company issued 3,989,976 shares to Eli Lilly and Company (‘Lilly”) pursuant to the global licensing and research collaboration between the Company and Lilly, resulting in net proceeds of € 23,223,000.

Translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

Share options

The Company operates an equity-settled share-based compensation plan, which was introduced in 2013. Options may be granted to employees, members of the Supervisory Board, members of the Management Board and consultants. The compensation expenses included in operating costs for this plan in the nine month period ended September 30, 2021 were € 4,435,000 (nine month period ended September 30, 2020: € 6,218,000), of which € 2,580,000 (nine month period ended September 30, 2020: € 3,331,000) was recorded in general and administrative costs and € 1,855,000 (nine month period ended September 30, 2020: € 2,887,000) was recorded in research and development costs.

Revenue

9 Months Ended

Sep. 30, 2021

Revenue.

Revenue

11. Revenue

In September 2021, the Company entered into a global licensing and research collaboration with Eli Lilly and Company (‘Lilly’) focused on the discovery, development, and commercialization of potential new medicines for genetic disorders in the liver and nervous system. ProQR and Lilly will use ProQR’s proprietary Axiomer® RNA editing platform to progress new drug targets toward clinical development and commercialization.

Under the terms of the agreement, ProQR is eligible to receive upfront and milestone payments, and royalties on the net sales of any resulting products. Deferred revenue resulting from this transaction amounts to € 19,209,000 as of September 30, 2021. This amount includes the up-front payment (€ 17,272,000) and the premium paid by Lilly on the share issue described in note 10 (€ 2,098,000) and is partly off-set by the revenue recognized in the three-month period ended September 30, 2021 (€ 161,000). The up-front payment of € 17,272,000 is recognized under prepayments and other receivables.

In May 2021, the Company entered into an exclusive worldwide license and discovery collaboration for an undisclosed target with Yarrow Biotechnology, Inc. (“Yarrow”). Under the terms of the agreement, ProQR is eligible to receive upfront and milestone payments, and royalties on the net sales of any resulting products. ProQR also received 8% of the shares of Yarrow’s common stock.


	Nine month period
	ended September 30,

	2021	2020
	€ 1,000	€ 1,000

Eli Lilly collaboration revenue	161	—
Yarrow collaboration revenue	954	—
	1,115	—

Other income

9 Months Ended

Sep. 30, 2021

Other income

Other income

12. Other income


	Nine month period
	ended September 30,
	2021	2020
	€ 1,000	€ 1,000

Grant income	808	9,081
Other income	30	107
	838	9,188

On February 9, 2018, the Company entered into a partnership agreement with Foundation Fighting Blindness (FFB), under which FFB has agreed to provide funding of $7.5 million for the pre-clinical and clinical development of QR-421a for Usher syndrome type 2A targeting mutations in exon 13.

In June 2020 ProQR received a final waiver of the full amount of the Innovation credit for the Company’s cystic fibrosis

program. Consequently, the carrying amount of €8.4 million, including accumulated interest, was recognized in Other

Income in June 2020.

Grants are recognized in other income in the same period in which the related R&D costs are recognized.

Research and development costs

9 Months Ended

Sep. 30, 2021

Research and development costs

Research and Development Costs

13. Research and development costs

Research and development costs amount to € 29,764,000 for the nine month period ended September 30, 2021 (nine month period ended September 30, 2020: € 29,716,000) and are comprised of allocated employee costs including share-based payments, the costs of materials and laboratory consumables, outsourced activities, license and intellectual property costs and other allocated costs.

General and administrative costs

9 Months Ended

Sep. 30, 2021

General and administrative costs

General and administrative costs

14. General and administrative costs

General and administrative costs amount to € 12,052,000 for the nine month period ended September 30, 2021 (nine month period ended September 30, 2020: € 10,173,000).

Results related to associates

9 Months Ended

Sep. 30, 2021

Results related to associates

Results related to associates

15. Results related to associates

In January 2021, ProQR’s associate company Wings Therapeutics Inc. merged into Phoenicis Therapeutics Inc. Consequently, Wings Therapeutics Inc. ceased to exist and the related investment was derecognized. ProQR does not

have significant influence in Phoenicis Therapeutics Inc. Our interest in Phoenicis is recognized as a financial asset, as disclosed in note 16.

As disclosed in note 11, in May 2021, the Company obtained an 8% share in the common stock of Yarrow Biotechnology, Inc. Although ProQR only owns 8% of Yarrow’s shares, the Company has significant influence over Yarrow by virtue of its right to appoint one of Yarrow’s three board members, as well as its participation in Yarrow’s policy-making process, amongst other factors. As such, our interest in Yarrow amounting to € 92,000 at September 30, 2021 is recognized as an investment in associate.

The results related to associates for the nine month period ended September 30, 2021 amounting to € 239,000 consist of a loss on derecognition of Wings Therapeutics Inc. of € 107,000 and ProQR's share in the loss of Yarrow, amounting to € 132,000. The results related to associates for the nine month period ended September 30, 2020 amount to a loss of € 270,000 and consist of our share of the net losses of Wings Therapeutics Inc.

Gain on recognition of financial asset

9 Months Ended

Sep. 30, 2021

Gain on recognition of financial asset

Gain on recognition of financial asset

16. Gain on recognition of financial asset

In January 2021, Wings Therapeutics Inc. merged into Phoenicis Therapeutics Inc. by means of a non-cash transaction. ProQR holds a 3.9% interest in Phoenicis Therapeutics Inc.

The gain on recognition of financial asset for the nine month period ended September 30, 2021 of € 621,000 relates to the gain realized on our investment in the equity instruments of Phoenicis Therapeutics Inc. The Company elected to recognize subsequent changes in the fair value of our investment in Phoenicis in Other Comprehensive Income. There have been no changes in the fair value of our investment in Phoenicis since the initial recognition.

Income taxes

9 Months Ended

Sep. 30, 2021

Income taxes

Income taxes

17. Income taxes

The current income tax liability amounts to € nil at September 30, 2021 (December 31, 2020: € nil). No significant temporary differences exist between accounting and tax results. Realization of deferred tax assets is dependent on future earnings, if any, the timing and amount of which are uncertain. Accordingly, the Company has not yet recognized any deferred tax asset related to operating losses.

On October 5, 2020, the Dutch State Secretary for Finance submitted an amendment to the Tax Plan 2021 to the House of Representatives, which provides for changes in the loss offset rules. On May 28, 2021, the amendment was substantively enacted. Effective from January 1, 2022, losses may be carried forward indefinitely. However, the offset of losses will be limited in a given year against the first € 1 million of taxable profit. For taxable profit in excess of this amount, losses may only be offset up to 50% of this excess.

Events after balance sheet date

9 Months Ended

Sep. 30, 2021

Events after balance sheet date

Events after balance sheet date

18. Events after balance sheet date

No significant events occurred after the balance sheet date.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2021
Significant Accounting Policies
Recognition of revenue	Revenue is recognized in accordance with the recognition and measurement criteria of IFRS 15 Revenue from contracts with customers.

Critical Accounting Estimates and Judgments (Policies)	9 Months Ended
Critical Accounting Estimates and Judgments (Policies)	Sep. 30, 2021
Critical Accounting Estimates and Judgments
Research and development expenditures	Research and development expenditures Research expenditures are currently not capitalized but are reflected in the income statement because the criteria for capitalization are not met. At each balance sheet date, the Company estimates the level of service performed by the vendors and the associated costs incurred for the services performed. Although we do not expect the estimates to be materially different from amounts actually incurred, the understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in reporting amounts that are too high or too low in any particular period.
Convertible debt	Convertible debt The terms of our convertible debt agreements are evaluated to determine whether the convertible debt instruments contain both liability and equity components, in which case the instrument is a compound financial instrument. Convertible debt agreements are also evaluated to determine whether they contain embedded derivatives, in which case the instrument is a hybrid financial instrument. Judgement is required to determine the classification of such financial instruments based on the terms and conditions of the convertible debt agreements, the currencies in which the debt instruments are denominated and the Company’s functional currency. Estimation methods are used to determine the fair values of the liability and equity components of compound financial instruments and to determine the fair value of embedded derivatives included in hybrid financial instruments. The determination of the effective interest used for the host contracts of hybrid financial instruments and the liability components of compound financial instruments is dependent on the outcome of such estimations. Evaluating the reasonableness of these estimations and the assumptions and inputs used in the valuation methods requires a significant amount of judgement and is therefore subject to an inherent risk of error.

Borrowings (Tables)

9 Months Ended

Sep. 30, 2021

Borrowings

Schedule of borrowings


	September 30,	December 31,
	2021	2020
	€ 1,000	€ 1,000
Innovation credit	3,623	2,770
Accrued interest on innovation credit	548	307
Convertible notes	14,564	13,812
Accrued interest on convertible notes	569	435

Total borrowings	19,304	17,324
Current portion	(1,791)	(1,135)
	17,513	16,189

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue.

Schedule of collaboration revenue


	Nine month period
	ended September 30,

	2021	2020
	€ 1,000	€ 1,000

Eli Lilly collaboration revenue	161	—
Yarrow collaboration revenue	954	—
	1,115	—

Other income (Tables)

9 Months Ended

Sep. 30, 2021

Other income

Other income


	Nine month period
	ended September 30,
	2021	2020
	€ 1,000	€ 1,000

Grant income	808	9,081
Other income	30	107
	838	9,188

General Information (Details)	1 Months Ended	9 Months Ended
General Information (Details)	May 31, 2021	Sep. 30, 2021
Yarrow Biotechnology, Inc
Disclosure of subsidiaries [line items]
Proportion of ownership interest in associate	8.00%	8.00%
ProQR Therapeutics Holding B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics I B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics II B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics III B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics IV B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics V B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VI B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VII B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics VIII B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
ProQR Therapeutics IX B.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%
Amylon Therapeutics B.V [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		80.00%
Amylon Therapeutics Inc [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		80.00%
ProQR Therapeutics I Inc. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary		100.00%

Significant Accounting Policies (Details)	9 Months Ended
Significant Accounting Policies (Details)	Sep. 30, 2021 segment
Significant Accounting Policies
Number of reportable segment	1

Cash and Cash Equivalents (Details) - EUR (€) € in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash and Cash Equivalents.
Cash and cash equivalents	€ 156,141	€ 139,442	€ 75,838	€ 88,847	€ 87,141	€ 111,950

Property, Plant and Equipment (Details) - EUR (€) € in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment
Property, plant and equipment	€ 17,559	€ 18,601
Building And Leasehold Improvements
Property, Plant and Equipment
Right-of-use assets	€ 15,978	€ 16,775

Borrowings (Details) € in Thousands, $ in Millions			3 Months Ended		9 Months Ended
Borrowings (Details) € in Thousands, $ in Millions	Aug. 06, 2020 EUR (€) tranche	Jul. 14, 2020 USD ($) tranche shares	Sep. 30, 2021 EUR (€)	Sep. 30, 2020 EUR (€)	Sep. 30, 2021 EUR (€)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 EUR (€)	Dec. 31, 2020 EUR (€)	Dec. 10, 2018 EUR (€)
Disclosure of detailed information about borrowings [line items]
Borrowings			€ 19,304		€ 19,304			€ 17,324
Total borrowings			19,304		19,304			17,324
Current portion			(1,791)		(1,791)			(1,135)
Non Current portion			17,513		17,513			16,189
Proceeds from borrowings			284		853		€ 579
Debt convertible				€ 13,477			€ 13,542
Innovation credit
Disclosure of detailed information about borrowings [line items]
Borrowings			3,623		3,623			2,770
Accrued interest			548		548			307
Total borrowings			3,623		3,623			2,770
Interest rate (as percent)									10.00%
Proceeds from borrowings					3,600
Innovation credit \| Maximum
Disclosure of detailed information about borrowings [line items]
Notional amount									€ 4,700
Convertible notes
Disclosure of detailed information about borrowings [line items]
Borrowings			14,564		14,564			13,812
Accrued interest			569		569			435
Total borrowings			€ 14,564		€ 14,564			€ 13,812
Convertible notes \| Minimum
Disclosure of detailed information about borrowings [line items]
Unconvertible Debt Maturity					24 months	24 months
Convertible Debt
Disclosure of detailed information about borrowings [line items]
Number of shares excercisable for issued warrants \| shares		302,676
Convertible Debt Pontifax Medison Debt Financing
Disclosure of detailed information about borrowings [line items]
Proceeds from borrowings \| $						$ 10
Number of tranches \| tranche		2
Maximum borrowing capacity per tranche \| $		$ 10
Term of debt		54 months
Debt, interest only payment term		24 months
Convertible Debt Pontifax Medison Debt Financing \| Maximum
Disclosure of detailed information about borrowings [line items]
Notional amount \| $		$ 20
Convertible Debt Kreos Capital Debt Financing
Disclosure of detailed information about borrowings [line items]
Proceeds from borrowings					€ 5,000
Number of tranches \| tranche	2
Maximum borrowing capacity per tranche	€ 5,000
Term of debt	54 months
Debt, interest only payment term	24 months
Convertible Debt Kreos Capital Debt Financing \| Maximum
Disclosure of detailed information about borrowings [line items]
Notional amount	€ 10,000
Convertible loans Amylon Therapeutics B.V. [Member]
Disclosure of detailed information about borrowings [line items]
Interest rate (as percent)			8.00%		8.00%
Debt instrument convertible term					36 months	36 months
Convertible loans Amylon Therapeutics B.V. [Member] \| Maximum
Disclosure of detailed information about borrowings [line items]
Unconvertible Debt Maturity					36 months	36 months

Lease Liabilities (Details) - Leiden headquarters	Jul. 01, 2020
Disclosure of quantitative information about right-of-use assets [line items]
Lease agreement period	11 years
Lease renewal term	5 years

Shareholders equity - Share capital (Details)	1 Months Ended			3 Months Ended	9 Months Ended
Shareholders equity - Share capital (Details)	Sep. 30, 2021 EUR (€) € / shares shares	Apr. 30, 2021 EUR (€) shares	Jan. 31, 2021 EUR (€) shares	Sep. 30, 2021 EUR (€) € / shares shares	Sep. 30, 2021 EUR (€) € / shares shares	Sep. 30, 2020 EUR (€)	Apr. 30, 2021 $ / shares	Dec. 31, 2020 shares	Mar. 31, 2020 USD ($)	Nov. 07, 2018 USD ($)
Shareholders' Equity
Authorized share capital	€ 13,600,000			€ 13,600,000	€ 13,600,000
Par value per share \| € / shares	€ 0.04			€ 0.04	€ 0.04
Net proceeds from issuance of shares				€ 23,223,000	€ 108,477,000
Shares issued in the period					€ 108,477,000	€ 272,000
Eli Lilly and Company
Shareholders' Equity
Net proceeds from issuance of shares	€ 23,223,000
Issuance of ordinary shares (in shares) \| shares	3,989,976
Ordinary
Shareholders' Equity
Maximum aggregate offering of ordinary shares \| $										$ 300,000,000
Number of shares authorised \| shares	170,000,000			170,000,000	170,000,000
Shares were issued and fully paid in cash \| shares	74,863,381			74,863,381	74,863,381
Treasury shares \| shares	3,708,810			3,708,810	3,708,810			3,926,743
Preferred
Shareholders' Equity
Number of shares authorised \| shares	170,000,000			170,000,000	170,000,000
Market offering program \| Ordinary
Shareholders' Equity
Number of shares issued \| shares								0
Maximum aggregate offering of ordinary shares \| $									$ 75,000,000
At The Market Offering
Shareholders' Equity
Issuance of ordinary shares (in shares) \| shares			585,398
Gross proceeds from issuance of shares			€ 2,767,000
Transaction cost			114,000
Net proceeds			€ 2,653,000
Underwritten public offering
Shareholders' Equity
Issuance of ordinary shares (in shares) \| shares		15,923,077
Share price \| $ / shares							$ 6.50
Gross proceeds from issuance of shares		€ 88,115,000
Transaction cost		5,499,000
Net proceeds		€ 82,616,000

Shareholders equity - Share options (Details) - EUR (€)	9 Months Ended
Shareholders equity - Share options (Details) - EUR (€)	Sep. 30, 2021	Sep. 30, 2020
Shareholders equity
Compensation expenses	€ 4,435,000	€ 6,218,000
Compensation expenses recorded in general and administrative costs	2,580,000	3,331,000
Compensation expenses recorded in research and development costs	€ 1,855,000	€ 2,887,000

Revenue (Details) - EUR (€) € in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
Revenue (Details) - EUR (€) € in Thousands	May 31, 2021	Sep. 30, 2021	Sep. 30, 2021
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue		€ 872	€ 1,115
Eli Lilly and Company
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred revenue		19,209	19,209
Revenue		161
Eli Lilly and Company \| Up-front payments
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred revenue		17,272	17,272
Eli Lilly and Company \| Up-front payments \| Prepayments and other receivables
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred revenue		17,272	17,272
Eli Lilly and Company \| Premiums on share issue
Disclosure of disaggregation of revenue from contracts with customers [line items]
Deferred revenue		€ 2,098	€ 2,098
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Proportion of ownership interest in associate	8.00%		8.00%

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2020-01-01
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2020-01-01

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2020-01-01
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2020-01-01

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2020-01-01
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_32&doctype=Standard
-URIDate 2020-01-01

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2020-01-01
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2020-01-01

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2020-01-01
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2020-en-r&anchor=para_34&doctype=Standard
-URIDate 2020-01-01

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2020-01-01
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2020-01-01

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2020-01-01
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_103&doctype=Standard
-URIDate 2020-01-01

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2020-01-01
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_102&doctype=Standard
-URIDate 2020-01-01

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2020-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2020-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2020-01-01

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2020-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2020-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2020-01-01

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2020-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2020-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2020-01-01

+ Details

Revenue - Collaboration revenue (Details) € in Thousands	9 Months Ended
Revenue - Collaboration revenue (Details) € in Thousands	Sep. 30, 2021 EUR (€)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Collaboration revenue	€ 1,115
Eli Lilly and Company
Disclosure of disaggregation of revenue from contracts with customers [line items]
Collaboration revenue	161
Yarrow Biotechnology, Inc
Disclosure of disaggregation of revenue from contracts with customers [line items]
Collaboration revenue	€ 954

Other income (Details) - EUR (€) € in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
Other income (Details) - EUR (€) € in Thousands	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disclosure of detailed information about borrowings [line items]
Grant income				€ 808	€ 9,081
Other income				30	107
Total other income		€ 286	€ 251	€ 838	€ 9,188
Innovation credit
Disclosure of detailed information about borrowings [line items]
Grant income	€ 8,400

Other income - Narrative (Details) $ in Millions	Feb. 09, 2018 USD ($)
Clinical support agreement \| Foundation Fighting Blindness
Other Income [Line Items]
Contribution received to support clinical development	$ 7.5

Research and development costs (Details) - EUR (€) € in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Research and development costs
Research and development costs	€ 11,124	€ 8,304	€ 29,764	€ 29,716

General and administrative costs (Details) - EUR (€) € in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
General and administrative costs
General and administrative expense	€ 4,591	€ 2,809	€ 12,052	€ 10,173

Results related to associates (Details)	1 Months Ended	3 Months Ended		9 Months Ended
Results related to associates (Details)	May 31, 2021	Sep. 30, 2021 EUR (€) director	Sep. 30, 2020 EUR (€)	Sep. 30, 2021 EUR (€) director	Sep. 30, 2020 EUR (€)	Dec. 31, 2020 EUR (€)
Disclosure of associates [line items]
Investments in associates		€ 92,000		€ 92,000		€ 107,000
Results related to associates		(132,000)	€ (84,000)	€ (239,000)	€ (270,000)
Yarrow Biotechnology, Inc
Disclosure of associates [line items]
Proportion of ownership interest in associate	8.00%			8.00%
Investments in associates		€ 92,000		€ 92,000
Total number of board members \| director		3		3
Right to appoint number of board member \| director		1		1
Results related to associates				€ (132,000)
Wings Therapeutics Inc
Disclosure of associates [line items]
Results related to associates				€ (107,000)	€ (270,000)

Gain on recognition of financial asset (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 EUR (€)	Sep. 30, 2021 USD ($)	Jan. 31, 2021
Disclosure of financial assets [line items]
Gain on recognition of financial asset \| €	€ 621,000
Phoenicis Therapeutics Inc.
Disclosure of financial assets [line items]
Proportion of ownership interest			3.90%
Changes in fair value of investment \| $		$ 0

Income Taxes (Details) - EUR (€)	Sep. 30, 2021	Dec. 31, 2020
Income taxes
Current income tax liability	€ 0	€ 0