UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
February 24, 2022
Commission File Number: 001-36622
PROQR THERAPEUTICS N.V.
Zernikedreef 9
2333 CK Leiden
The Netherlands
Tel: +31 88 166 7000
(Address, Including ZIP Code, and Telephone Number,
Including Area Code, of Registrant’s Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ⌧ Form 40-F ◻
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ◻
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ◻
Furnished as Exhibit 99.1 to this Report on Form 6-K are the unaudited financial statements of ProQR Therapeutics N.V. (the “Company”) for the three-month period and the year ended December 31, 2021, and furnished as Exhibit 99.2 to this Report on Form 6-K is a press release of ProQR Therapeutics N.V. dated February 24, 2022, announcing the Company’s results for the three-month period and the year ended December 31, 2021.
INDEX TO EXHIBITS
Number |
| Description |
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99.1 | | |
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99.2 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| PROQR THERAPEUTICS N.V. | |
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| | |
Date: February 24, 2022 | By: | /s/ Smital Shah |
| | Smital Shah |
| | Chief Financial Officer |
PROQR THERAPEUTICS N.V.
Index to Unaudited Condensed Consolidated Financial Statements
| PAGE |
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2 | |
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4 | |
Notes to Unaudited Condensed Consolidated Financial Statements | 5 |
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Financial Position
December 31, | December 31, | |||
2021 | 2020 | |||
€ 1,000 | € 1,000 | |||
Assets |
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Current assets |
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Cash and cash equivalents | ||||
Prepayments and other receivables | ||||
Other taxes | ||||
Total current assets | ||||
Property, plant and equipment | ||||
Investments in associates | ||||
Investments in financial assets | — | |||
Total assets | ||||
Equity and liabilities |
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Equity |
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Equity attributable to owners of the Company | ||||
Non-controlling interests | ( | ( | ||
Total equity | ||||
Current liabilities |
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Borrowings | ||||
Lease liabilities | ||||
Derivative financial instruments | ||||
Trade payables | ||||
Current income tax liability | — | — | ||
Social securities and other taxes | ||||
Pension premiums | — | |||
Deferred income | ||||
Other current liabilities | ||||
Total current liabilities | ||||
Borrowings | ||||
Lease liabilities | ||||
Deferred income | — | |||
Total liabilities | ||||
Total equity and liabilities |
The notes are an integral part of these condensed consolidated financial statements.
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Profit or Loss and OCI
(€ in thousands, except share and per share data)
Three month period | Year | |||||||
ended December 31, |
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| 2021 | 2020 |
| 2021 | 2020 | ||
€ 1,000 | € 1,000 | € 1,000 | € 1,000 | |||||
Revenue | — | — | ||||||
Other income | ||||||||
Research and development costs | ( | ( | ( | ( | ||||
General and administrative costs | ( | ( | ( | ( | ||||
Total operating costs | ( | ( | ( | ( | ||||
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Operating result | ( | ( | ( | ( | ||||
Finance income and expense | ( | ( | ( | ( | ||||
Results related to associates | ( | ( | ( | ( | ||||
Gain on disposal of associate | — | — | — | |||||
Results related to financial liabilities measured at fair value through profit or loss | ( | ( | ( | |||||
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Result before corporate income taxes | ( | ( | ( | ( | ||||
Income taxes | ( | ( | ( | ( | ||||
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Result for the period | ( | ( | ( | ( | ||||
Other comprehensive income (foreign exchange differences on foreign operation) | ( | ( | ||||||
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Total comprehensive income | ( | ( | ( | ( | ||||
Result attributable to |
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Owners of the Company | ( | ( | ( | ( | ||||
Non-controlling interests | ( | ( | ( | ( | ||||
( | ( | ( | ( | |||||
Total comprehensive income attributable to | ||||||||
Owners of the Company | ( | ( | ( | ( | ||||
Non-controlling interests | ( | ( | ( | ( | ||||
( | ( | ( | ( | |||||
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Share information |
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Weighted average number of shares outstanding1 | ||||||||
Earnings per share attributable to owners of the Company (Euro per share) | ||||||||
Basic loss per share1 | ( | ( | ( | ( | ||||
Diluted loss per share1 | ( | ( | ( | ( | ||||
The notes are an integral part of these condensed consolidated financial statements.
| 1. |
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the Company | ||||||||||||||||||||
| Number |
| Share |
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| Equity settled |
| Option |
| Translation |
| Accumulated |
| Total |
| Non- |
| Total | |
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| € 1,000 | € 1,000 | € 1,000 | € 1,000 | € 1,000 | € 1,000 | € 1,000 | € 1,000 | € 1,000 | ||||||||||
Balance at January 1, 2020 |
| — | ( | ( | ||||||||||||||||
Result for the period |
| — | — | — | — | — | — | ( | ( | ( | ( | |||||||||
Other comprehensive income |
| — | — | — | — | — | ( | — | ( | — | ( | |||||||||
Recognition of share-based payments |
| — | — | — | — | |||||||||||||||
Issuance of ordinary shares | — | — | — | — | — | |||||||||||||||
Treasury shares transferred | ( | — | — | — | — | — | — | — | — | — | ||||||||||
Recognition of equity component of convertible loan | — | — | — | — | — | — | — | |||||||||||||
Share options lapsed | — | — | — | ( | — | — | — | — | — | |||||||||||
Share options exercised | — | ( | — | — | — | |||||||||||||||
Balance at December 31, 2020 |
| ( | ( | ( | ||||||||||||||||
Balance at January 1, 2021 |
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Result for the period |
| — | — | — | — | — | — | ( | ( | ( | ( | |||||||||
Other comprehensive income |
| — | — | — | — | — | — | — | ||||||||||||
Recognition of share-based payments |
| — | — | — | — | |||||||||||||||
Issuance of ordinary shares | — | — | — | — | — | |||||||||||||||
Treasury shares transferred | ( | — | — | — | — | — | — | — | — | — | ||||||||||
Recognition of equity component of convertible loan | — | — | — | — | — | — | — | |||||||||||||
Share options lapsed | — | — | — | ( | — | — | — | — | — | |||||||||||
Share options exercised | ( | — | — | — | ||||||||||||||||
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Balance at December 31, 2021 |
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The notes are an integral part of these condensed consolidated financial statements
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Cash Flows
Three month period | Year | |||||||
ended December 31, |
| ended December 31, | ||||||
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| 2021 | 2020 | 2021 | 2020 | |||
€ 1,000 | € 1,000 | € 1,000 | € 1,000 | |||||
Cash flows from operating activities |
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Net result | ( | ( | ( | ( | ||||
Adjustments for: | ||||||||
— Depreciation | ||||||||
— Share-based compensation | ||||||||
— Other income | — | — | — | ( | ||||
— Financial income and expenses | ||||||||
— Results related to associates | ||||||||
— Gain on disposal of associate | — | — | ( | — | ||||
— Results related to financial liabilities measured at fair value through profit or loss | ( | |||||||
— Income tax expenses | ||||||||
Changes in working capital | ( | ( | ||||||
Cash gained (used) in operations | ( | ( | ( | |||||
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Corporate income tax paid | ( | ( | ( | ( | ||||
Interest received | — | |||||||
Interest paid | ( | ( | ( | ( | ||||
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Net cash gained (used) in operating activities | ( | ( | ( | |||||
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Cash flow from investing activities | ||||||||
Purchases of property, plant and equipment | ( | ( | ( | ( | ||||
Sales of property, plant and equipment | — | — | ||||||
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Net cash used in investing activities | ( | ( | ( | ( | ||||
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Cash flow from financing activities |
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Proceeds from issuance of shares, net of transaction costs | — | — | — | |||||
Proceeds from exercise of share options | ||||||||
Proceeds from borrowings | — | |||||||
Proceeds from convertible loans | ||||||||
Repayment of lease liability | ( | ( | ( | ( | ||||
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Net cash generated by financing activities | ||||||||
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Net increase (decrease) in cash and cash equivalents | ( | ( | ||||||
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Currency effect cash and cash equivalents | ( | ( | ||||||
Cash and cash equivalents, at beginning of the period | ||||||||
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Cash and cash equivalents at the end of the period | ||||||||
The notes are an integral part of these condensed consolidated financial statements.
PROQR THERAPEUTICS N.V.
Notes to Unaudited Condensed Consolidated Financial Statements
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. ( |
| ● | ProQR Therapeutics I B.V. ( |
| ● | ProQR Therapeutics II B.V. ( |
| ● | ProQR Therapeutics III B.V. ( |
| ● | ProQR Therapeutics IV B.V. ( |
| ● | ProQR Therapeutics V B.V. ( |
| ● | ProQR Therapeutics VI B.V. ( |
| ● | ProQR Therapeutics VII B.V. ( |
| ● | ProQR Therapeutics VIII B.V. ( |
| ● | ProQR Therapeutics IX B.V. ( |
| ● | ProQR Therapeutics I Inc. ( |
| ● | Amylon Therapeutics B.V. ( |
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 a
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.
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
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.
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.
The significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those described in the Company’s annual financial statements for the year ended December 31, 2020, except for the addition of significant judgements and key sources of estimation uncertainty in relation to revenue recognition for the Eli Lilly collaboration and license agreement.
Revenue recognition for the Eli Lilly collaboration and license agreement
a. Identification of the performance obligation
Note 11 describes the Company’s collaboration and license agreement with Eli Lilly. Under this agreement, ProQR provides Eli Lilly with a license (with a right to sub-license) to exploit compounds resulting from the collaboration. A significant amount of judgement is required to determine whether the license is distinct from the other promises in the contract. The license was concluded not to be distinct from the other promises in the contract based on the following considerations:
| ● | the license has no stand-alone value to Eli Lilly without the Company being involved in the research and development collaboration, and; |
| ● | there are significant interdependencies between the license and the research and development services to be provided by the Company. |
b. Determining the timing of satisfaction of performance obligations
For the Eli Lilly collaboration, the Company recognizes revenue over time, using an input method that estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services. As our estimate of the total labor hours required is dependent on the evolution of the research and development activities, it may be subject to change. If the progression and/or outcome of certain research and development activities would be different from the assumptions that were made during the preparation of these financial statements, this could lead to material adjustments to the total estimated labor hours, which might result in a reallocation of revenue between current and future periods.
c. Determining the transaction price
The Company applied judgement to determine whether the equity investment made by Eli Lilly in ProQR is part of the transaction price for the collaboration and license agreement. The Company concluded that the premium that Eli Lilly paid above the closing price on the day of entering into the equity investment agreement was paid because of the Company’s existing obligations to deliver research and development services to Eli Lilly under the terms of the collaboration and license agreement. Therefore, the premium paid by Eli Lilly on the equity investment is considered to be part of the transaction price. The contract also includes variable consideration, but no variable consideration was included in the transaction price, as it is not highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
Research and development expenditures
Development 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.
5. Cash and Cash Equivalents
At December 31, 2021, the Company’s cash and cash equivalents were €
6. Property, plant and equipment
At December 31, 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 €
7. Current liabilities
The following table summarizes details of deferred income at December 31, 2021 and December 31, 2020. The nature of the deferred income relating to Eli Lilly and Yarrow is described in Note 11.
December 31, | December 31, | |||
2021 | 2020 | |||
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| 2021 | 2020 | |
€ 1,000 | € 1,000 | |||
Eli Lilly up-front payment and premium on equity consideration | — | |||
Yarrow up-front payment and premium on equity consideration | ||||
Foundation for Fighting Blindness grant | ||||
Horizon 2020 grant | ||||
Total deferred income | ||||
Current portion | ( | ( | ||
— |
At December 31, 2021, other current liabilities amount to €
8. Borrowings
| December 31, | December 31, | ||
| 2021 | 2020 | ||
€ 1,000 | € 1,000 | |||
Innovation credit | ||||
Accrued interest on innovation credit | ||||
Convertible loans | ||||
Accrued interest on convertible loans | ||||
|
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Total borrowings | ||||
Current portion | ( | ( | ||
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 €
credit, including accrued interest of
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 $
A second close of the convertible debt financing agreement was completed on August 6, 2020 with Kreos Capital. Under the second agreement, up to €
In connection with the loan agreement, the Company issued to Pontifax and Kreos warrants to purchase up to an aggregate of
On December 29, 2021, the Company amended its convertible debt financing agreement with Pontifax and Kreos (the ‘Lenders’). Under the amended agreement, the Company will have access to up to $
In connection with the loan agreement, the Company issued to the Lenders warrants to purchase up to an aggregate of
The Lenders may elect to convert the outstanding loan into ProQR ordinary shares at any time prior to repayment at a fixed conversion price. ProQR also has the ability to convert the loan into its ordinary shares, at the same conversion price, if the Company’s stock price reaches a pre-determined threshold.
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
Company in case financing criteria are met. Any unconverted loans become payable on demand after
9. Lease liabilities
At December 31, 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
10. Shareholders’ equity
The authorized share capital of the Company amounting to €
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 $
In April 2021, the Company consummated an underwritten public offering of
In September 2021, the Company issued
On November 4, 2021, 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 $
On November 4, 2021, 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 $
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 year ended December 31, 2021 were €
11. Revenue
Eli Lilly
In September 2021, the Company entered into a global licensing and research collaboration with Eli Lilly and Company (‘Eli Lilly’) focused on the discovery, development, and commercialization of potential new medicines for genetic disorders in the liver and nervous system. ProQR and Eli 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 received an upfront payment and equity consideration, and is eligible to receive milestone payments and royalties on the net sales of any resulting products. In September 2021, the Company issued
With regard to its collaboration with Eli Lilly, the Company concluded as follows:
| ● | There is one single performance obligation under IFRS 15, which is the transfer of a license combined with the performance of research and development activities. The Company concluded that the license is not capable of being distinct and is not distinct in the context of the contract. |
| ● | The transaction price of this agreement currently only includes fixed parts, consisting of an up-front fee and an equity component. The agreement also contains variable parts, but those are not yet included in the transaction price. Milestone payments will only be included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the milestones is subsequently resolved. Sales-based milestones and sales-based royalties will be included as the underlying sales occur. |
| ● | The Company recognizes revenue over time, using an input method that estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services. |
Yarrow Biotechnology
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 received an upfront payment, equity consideration and reimbursement for ongoing R&D services. ProQR is also eligible to receive milestone payments and royalties on the net sales of any resulting products. In May 2021, ProQR received an up-front payment of €
With regard to its collaboration with Yarrow, the Company concluded as follows:
| ● | There is one single performance obligation under IFRS 15, which is the transfer of a license combined with the performance of research and development activities. The Company concluded that the license is not capable of being distinct and is not distinct in the context of the contract. |
| ● | The transaction price of this agreement currently includes both fixed and variable parts. The fixed part consists of an up-front fee and an equity component. The variable part consists of a cost reimbursement for research and development activities. The agreement also contains other variable parts, but those are not yet included in the transaction price. Milestone payments will only be included to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the milestones is subsequently resolved. Sales-based milestones and sales-based royalties will be included as the underlying sales occur. |
| ● | The Company recognizes revenue over time, using an input method that estimates the satisfaction of the performance obligation as the percentage of labor hours incurred compared to the total estimated labor hours required to complete the promised services. |
Year | ||||
ended December 31, | ||||
|
| 2021 | 2020 | |
€ 1,000 | € 1,000 | |||
Eli Lilly collaboration revenue | — | |||
Yarrow collaboration revenue | — | |||
— | ||||
12. Other income
Year | ||||
ended December 31, | ||||
|
| 2021 | 2020 | |
€ 1,000 | € 1,000 | |||
Grant income | ||||
Other income | ||||
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 $
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 €
Income in June 2020.
Grants are recognized in other income in the same period in which the related R&D costs are recognized.
13. Research and development costs
Research and development costs amount to €
14. General and administrative costs
General and administrative costs amount to €
15. Investments in associates and 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
The results related to associates for the year ended December 31, 2021 amounting to €
16. Investment in financial asset and gain on disposal of associate
In January 2021, Wings Therapeutics Inc. merged into Phoenicis Therapeutics Inc. by means of a non-cash transaction. ProQR holds a
The net gain on disposal of associate for the year ended December 31, 2021 of €
17. Income taxes
The current income tax liability amounts to €
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.
18. Events after balance sheet date
On February 11, 2022, the Company announced the top-line results from the phase 2/3 Illuminate trial of sepofarsen in CEP290-mediated LCA10. The study did not meet its primary endpoint nor any notable secondary endpoints. No benefit was observed in either treatment arm versus the sham arm. These results do not affect the financial figures included in this report.
Exhibit 99.2
ProQR Announces Fourth Quarter and Full Year 2021 Operating and Financial Results
| ● | Additional analyses ongoing from Phase 2/3 Illuminate trial of sepofarsen in LCA10 with updates on any potential next steps with this program and overall strategy anticipated in Q2 2022 |
| ● | Phase 2/3 Sirius and Celeste clinical trials of ultevursen (QR-421a) in Usher syndrome and retinitis pigmentosa underway; interim data readout from Helia extension study of ultevursen planned by year end 2022 |
| ● | Repeated dose study planned for QR-1123 for autosomal dominant retinitis pigmentosa and initial data from molecular proof-of-concept biomarker study QR-504a for Fuchs endothelial corneal dystrophy to be reported in 2022. |
| ● | Cash runway into mid-to-late 2024 |
LEIDEN, Netherlands & CAMBRIDGE, Mass., February 24, 2022 -- ProQR Therapeutics N.V. (Nasdaq: PRQR) (the “Company”), a company dedicated to changing lives through the creation of transformative RNA therapies for genetic eye diseases, today reported its financial and operating results for the fourth quarter and full year ended December 31, 2021, and provided a business update.
“Following the disappointing readout of top-line results from the Illuminate trial of sepofarsen, we are conducting a comprehensive analysis of the data with the goal of providing an update to on any potential next steps with this program and our overall strategy in Q2,” said Daniel A. de Boer, Founder and CEO of ProQR. “Based on the previous data we have reported, we remain very confident in our RNA approach and will continue to follow the data to determine how to best position ProQR for success.
De Boer continued, “In the coming year, we anticipate sharing data from our Helia extension trial of ultevursen, as well as the initial data from our QR-504a biomarker study. In parallel, our Sirius and Celeste trials of ultevursen are enrolling patients with USH2A-mediated Usher syndrome and retinitis pigmentosa. Beyond our clinical pipeline, we are excited by the potential of our next-generation Axiomer RNA editing technology. In addition to using this platform to develop therapies for our wholly-owned pipeline, we anticipate continuing to develop collaborations on a target-by-target basis, similar to the partnership with Lilly we announced last fall. ProQR is in a strong financial position with a cash runway into mid-to-late 2024 and we will
continue to be diligent with our capital, as we work to advance RNA therapies for individuals with high unmet need in genetic eye diseases.”
Business Operations and Program Updates
Program updates:
| ● | In February, the Company announced that the Phase 2/3 Illuminate trial of sepofarsen for CEP290-mediated Leber congenital amaurosis 10 (LCA10) did not meet the primary endpoint, nor notable secondary endpoints. No benefit was observed in either treatment arm versus sham. Additional analyses are ongoing and an update is expected in Q2 2022. |
| ● | In December, the first patients were dosed in the pivotal Phase 2/3 Sirius and Celeste trials of ultevursen (formerly QR-421a) for USH2A-mediated Usher syndrome and retinitis pigmentosa. The Company has begun enrolling eligible individuals from the Phase 1/2 Stellar trial in the Helia open-label extension study, which will include multiple dose treatments for both eyes. The Company expects to share an update from the Helia study by year end 2022. |
| ● | In November, the Company reported initial clinical data from the Phase 1/2 Aurora trial of QR-1123 for RHO-mediated autosomal dominant retinitis pigmentosa (adRP) in Q4. A single dose of QR-1123 (gapmer) showed early evidence of target engagement and was well tolerated with no serious adverse events. Based on these findings, ProQR plans to advance QR-1123 to a repeated dose Phase 2 trial in 2022. |
| ● | The Fuchs Focus study of QR-504a for Fuchs Endothelial Corneal Dystrophy (FECD) is currently open for enrollment. This study is evaluating safety, tolerability, and molecular biomarker(s), i.e., target engagement, in the corneal endothelium following a single intravitreal injection of QR-504a in patients with FECD who are scheduled for corneal transplant with concurrent lens replacement. ProQR anticipates reporting initial data from this trial in 2022. |
| ● | ProQR has been further optimizing the Axiomer® Editing Oligonucleotide (EON) designs and will develop selected genetic eye disease targets with Axiomer®. The Company anticipates providing further guidance on this in H2 2022.. |
Business updates:
| ● | In February 2022, Theresa Heggie assumed the role of Chief Operating Officer. Theresa joined ProQR in 2021 as Chief Commercial Officer after serving as a member of the Supervisory Board since 2019. Previously, she served as Chief Executive Officer of Freeline Therapeutics and held senior roles with Alnylam and Shire. |
| ● | In December, ProQR amended its convertible debt financing agreement entered into in 2020 with Kreos and Pontifax. $30 million was drawn by the Company at closing of the amendment. |
| ● | In September, Eli Lilly and Company (Lilly) and ProQR entered into a licensing and research collaboration related to ProQR’s proprietary Axiomer RNA base-editing platform. Under the terms of the agreement, ProQR received $50 million upfront, consisting of an upfront payment of $20 million, as well as an equity investment of $30 million . ProQR is eligible to receive up to approximately $1.25 billion in milestones, plus royalties. |
| ● | In May, ProQR entered into an exclusive worldwide license and discovery collaboration for a non-ophthalmic target with Yarrow Biotechnology, an RTW Investments, LP incubated company. |
Financial Highlights
At December 31, 2021, ProQR held cash and cash equivalents of €187.5 million, compared to €75.8 million at December 31, 2020. Net cash used or gained in operating activities during the three month period and full year ended December 31, 2021 was €3.8 million gained and €26.0 million used respectively, compared to €11.8 million used and €47.1 million used for the same period last year.
Research and development costs were €12.5 million for the quarter ended December 31, 2021, compared to €8.4 million for the same period in 2020. Research and development costs for the year ended December 31, 2021 were €42.2 million, compared to €38.1 million for the same period in 2020.
General and administrative costs were €5.3 million for the quarter ended December 31, 2021 compared to €3.5 million for the same period in 2020. General and administrative costs for the year ended December 31, 2021 were €17.4 million, compared to €13.7 million for the same period in 2020.
Net loss for the three month period ended December 31, 2021 was €18.2 million or €0.26 per diluted share, compared to a €13.2 million loss or €0.26 per diluted share for the same period in 2020. Net loss for the year ended December 31, 2021 was €61.7 million or €0.96 per diluted share, compared to €46.6 million, or €0.93 per diluted share for the same period ended December 31, 2020. For further financial information for the period ended December 31, 2021, please refer to the financial statements at the end of this release.
2021 Annual Reports
The consolidated statement of financial position of ProQR Therapeutics N.V. as of December 31, 2021 and December 31, 2020, the consolidated statements of comprehensive loss for the years and three month periods ended December 31, 2021 and 2020, the related consolidated statement of changes in equity for the years ended December 31, 2021 and 2020, and the consolidated statements of cash flows for the years and three month periods ended December 31, 2021 and 2020 as presented in this press release are unaudited. ProQR Therapeutics N.V. will publish its 2021 Annual Report on Form 20-F and its Statutory Annual Report later in H1 2022 on our website at www.proqr.com.
About Leber Congenital Amaurosis 10 (LCA10)
Leber congenital amaurosis (LCA) is the most common cause of blindness due to genetic disease in children. It consists of a group of diseases of which LCA10 is the most frequent and one of the most severe forms. LCA10 is caused by mutations in the CEP290 gene, of which the c.2991+1655A>G (p.Cys998X) mutation has the highest prevalence. LCA10 leads to early loss of vision causing most people to lose their sight in the first few years of life. To date, there are no treatments approved that treat the underlying cause of the disease. Approximately 2,000 people in the Western world have LCA10 because of this mutation.
About Sepofarsen
Sepofarsen (QR-110) is an investigational RNA therapy designed to restore vision in Leber congenital amaurosis 10 due to the c.2991+1655A>G mutation (p.Cys998X) in the CEP290 gene. The mutation leads to aberrant splicing of the mRNA and non-functional CEP290 protein. Sepofarsen is designed to enable normal splicing, resulting in restoration of normal (wild type) CEP290 mRNA and subsequent production of functional CEP290 protein. Sepofarsen is intended to be administered through intravitreal injections in the eye and has been granted orphan drug designation in the United States and the European Union and received fast-track designation and rare pediatric disease designation from the FDA as well as access to the PRIME scheme by the EMA.
About Usher Syndrome Type 2 and Non-Syndromic Retinitis Pigmentosa (nsRP)
Usher syndrome is the leading cause of combined deafness and blindness. People with Usher syndrome type 2a are usually born with hearing loss and start to have progressive vision loss during adulthood. The vision loss can also occur without hearing loss in a disease called non-syndromic retinitis pigmentosa. Usher syndrome type 2a and non-syndromic retinitis pigmentosa can be caused by mutations in the USH2A gene. To date, there are no
pharmaceutical treatments approved or in clinical development that treat the vision loss associated with mutations in USH2A.
About ultevursen
Ultevursen (formerly QR-421a) is a first-in-class investigational RNA therapy designed to address the underlying cause of vision loss in Usher syndrome type 2a and non-syndromic retinitis pigmentosa due to mutations in exon 13 of the USH2A gene. QR-421a is designed to restore functional usherin protein by using an exon skipping approach with the aim to stop or reverse vision loss in patients. Ultevursen is intended to be administered through intravitreal injections in the eye and has been granted orphan drug designation in the US and the European Union and received fast-track and rare pediatric disease designations from the FDA.
About Autosomal Dominant Retinitis Pigmentosa (adRP)
Autosomal dominant retinitis pigmentosa, or adRP, is a severe and rare genetic disease that causes progressive problems in night vision during childhood, leading to visual field loss and frequently resulting in blindness in mid adulthood. In the United States, the most prevalent mutation associated with adRP is the P23H point mutation (also known as the c.68C>A mutation) in the rhodopsin (RHO) gene and affects approximately 2,500 people. This mutation causes misfolding of the rhodopsin protein that becomes toxic to the photoreceptor cells and at the same time diminishes the function of the wild type allele. Over time this results in cell death and progressive vision loss. There are currently no therapies approved or in clinical development for P23H adRP. A natural history study in patients with P23H adRP has been conducted.
About QR-1123
QR-1123 is a first-in-class investigational RNA therapy designed to treat adRP due to the P23H mutation in the RHO gene. QR-1123 was discovered and developed by Ionis Pharmaceuticals using Ionis’ proprietary antisense technology. The therapy aims to inhibit the formation of the mutated toxic version of the rhodopsin protein by specifically binding the mutated RHO mRNA. Binding of QR-1123 causes allele specific knockdown of the mutant mRNA by a mechanism called RNase H mediated cleavage without affecting the normal RHO mRNA. QR-1123 is intended to be administered through intravitreal injections in the eye. QR-1123 has been granted Orphan Drug designation in the United States and received Fast Track designation from the FDA.
About Fuchs Endothelial Corneal Dystrophy (FECD)
Fuchs endothelial corneal dystrophy (FECD) type 3 is a common genetic disease that leads to progressive degeneration of the corneal endothelium resulting in corneal edema, scarring and vision loss. Blisters on the cornea are a major cause of pain in patients with advanced FECD. Currently there are no treatment options available to stop or slow down FECD and disease management is aimed to reduce symptoms. The only effective therapy for late-stage FECD is corneal transplantation. The availability of donors, risk of rejection, and the inherent risk of such surgeries are some of the limitations of this option. FECD is a common disorder affecting more than 4% of people over the age of 40 in the United States, with similar numbers reported for other parts of the World. Trinucleotide repeat (TNR) expansion mutations in the TCF4 gene are a common cause of FECD. In people of European descent, around 75% of FECD patients have TNR expansions in TCF4.
About QR-504a
QR -504a is a first-in-class investigational RNA therapy designed to address the underlying cause of Fuchs endothelial corneal dystrophy (FECD) due to trinucleotide repeat (TNR) expansion mutations in the TCF4 gene. The TNR expansions cause the TCF4 RNA to aggregate in the corneal endothelial cells forming the characteristic nuclear RNA foci and eventually resulting in FECD. QR-504a is designed to target the TNRs in the TCF4 RNA. The aim is to reduce aggregation and the formation of RNA foci to prevent or stop corneal degeneration in patients with FECD. QR-504a is intended to be administered through intravitreal injections in the eye.
About Axiomer® and Trident®
ProQR is pioneering a next-generation RNA technology called Axiomer®, which could potentially yield a new class of medicines for genetic diseases. Axiomer® “Editing Oligonucleotides”, or EONs, mediate single nucleotide changes to RNA in a highly specific and targeted way using molecular machinery that is present in human cells. The Axiomer® EONs are designed to recruit an endogenously expressed RNA editing system called ADAR, which can direct the change of an Adenosine (A) to an Inosine (I) in the RNA – an Inosine is translated as a Guanosine (G).
Our TRIDENT® RNA pseudouridylation platform enables the suppression of nonsense mutations and premature stop codons (PTC) that cause human genetic diseases. Since all premature stop codons contain uridine, pseudouridylation of that uridine converts those nonsense codons into sense codons. TRIDENT ® technology harnesses endogenously expressed pseudouridylation machinery to guide RNAs to inhibit nonsense mRNA-mediated decay (NMD) in a sequence-specific manner and promote PTC readthrough. The TRIDENT ® technology has the potential to be applied in approximately 11% of all genetic mutations.
About ProQR
ProQR Therapeutics is dedicated to changing lives through the creation of transformative RNA therapies for the treatment of severe genetic rare diseases such as Leber congenital amaurosis 10, Usher syndrome and retinitis pigmentosa. Based on our unique proprietary RNA repair platform technologies we are growing our pipeline with patients and loved ones in mind.
Learn more about ProQR at www.proqr.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "look forward to", "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions. Such forward-looking statements include, but are not limited to, statements regarding our product candidates, including sepofarsen (QR-110) and the clinical development and the therapeutic potential thereof, statements regarding ultevursen (QR-421a) and the clinical development and the therapeutic potential thereof, statements regarding QR-1123 and the clinical development and therapeutic potential thereof, statements regarding the QR-504a and the clinical development and therapeutic potential thereof, statements regarding our pipeline of programs targeting inherited retinal dystrophies, including timing of commencing clinical trials and enrollment of patients therein, our other programs and business operations (including Axiomer® and TRIDENT ®), the expected impact of the ongoing COVID-19 pandemic on our business operations, including our research and development plans and timelines and the supply chain for our clinical and development programs, statements regarding the collaboration with Lilly and the intended benefits thereof, including the upfront payment, equity investment, and milestone and royalty payments from commercial product sales, if any, from the products covered by the collaboration, statements regarding the collaboration with RTW and Yarrow and the intended benefits thereof, statements relating to our debt facility with Pontifax and Kreos and our financial position and cash runway. Forward-looking statements are based on management's beliefs and assumptions and on information available to management only as of the date of this press release. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, without limitation, the risks, uncertainties and other factors in our filings made with the Securities and Exchange Commission, including certain sections of our annual report filed on Form 20-F. These risks and uncertainties include, among others, the cost, timing and results of preclinical studies and clinical trials and other development activities by us and our collaborative partners whose operations and activities may be slowed or halted by the ongoing COVID-19 pandemic; the likelihood of our clinical programs being executed on timelines provided and reliance on our contract research organizations and
predictability of timely enrollment of subjects and patients to advance our clinical trials and maintain their own operations; our reliance on contract manufacturers to supply materials for research and development and the risk of supply interruption from a contract manufacturer; the potential for future data to alter initial and preliminary results of early-stage clinical trials; the unpredictability of the duration and results of the regulatory review of applications or clearances that are necessary to initiate and continue to advance and progress our clinical programs; the ability to secure, maintain and realize the intended benefits of collaborations with partners; the possible impairment of, inability to obtain, and costs to obtain intellectual property rights; possible safety or efficacy concerns that could emerge as new data are generated in research and development; our ability to maintain and service our loan facility with Pontifax and Kreos; general business, operational, financial and accounting risks; and risks related to litigation and disputes with third parties. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements, and we assume no obligation to update these forward-looking statements, even if new information becomes available in the future, except as required by law.
Cautionary Note on Future Updates
The statements contained in this press release reflect our current views with respect to future events, which may change significantly as the global consequences of the ongoing COVID-19 pandemic rapidly develop. Accordingly, we do not undertake and specifically disclaim any obligation to update any forward-looking statements.
ProQR Therapeutics N.V.
Investor Contact:
Sarah Kiely
ProQR Therapeutics N.V.
T: +1 617 599 6228
skiely@proqr.com
or
Hans Vitzthum
LifeSci Advisors
T: +1 617 430 7578
hans@lifesciadvisors.com
Media Contact:
Robert Stanislaro
FTI Consulting
T: +1 212 850 5657
robert.stanislaro@fticonsulting.com
Financial Tables
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Financial Position
| | December 31, | | December 31, |
| | 2021 | | 2020 |
| | € 1,000 | | € 1,000 |
Assets | |
| |
|
Current assets | |
| |
|
Cash and cash equivalents | | 187,524 | | 75,838 |
Prepayments and other receivables | | 3,404 | | 3,762 |
Other taxes | | 555 | | 421 |
| | | | |
Total current assets | | 191,483 | | 80,021 |
| | | | |
Property, plant and equipment | | 17,467 | | 18,601 |
Investments in associates | | 8 | | 107 |
Investments in financial assets | | 621 | | — |
| | | | |
Total assets | | 209,579 | | 98,729 |
| | | | |
Equity and liabilities | |
| |
|
Equity | | | |
|
Equity attributable to owners of the Company | | 113,833 | | 57,091 |
Non-controlling interests | | (604) | | (545) |
Total equity | | 113,229 | | 56,546 |
| | | | |
Current liabilities | |
| |
|
Borrowings | | 4,771 | | 1,135 |
Lease liabilities | | 1,534 | | 1,260 |
Derivative financial instruments | | 3,995 | | 839 |
Trade payables | | 191 | | 221 |
Current income tax liability | | — | | — |
Social securities and other taxes | | 1,230 | | 22 |
Pension premiums | | — | | 6 |
Deferred income | | 5,115 | | 700 |
Other current liabilities | | 10,760 | | 6,118 |
| | | | |
Total current liabilities | | 27,596 | | 10,301 |
| | | | |
Borrowings | | 39,319 | | 16,189 |
Lease liabilities | | 14,748 | | 15,693 |
Deferred income | | 14,687 | | — |
| | | | |
Total liabilities | | 96,350 | | 42,183 |
| | | | |
Total equity and liabilities | | 209,579 | | 98,729 |
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Profit or Loss and OCI
(€ in thousands, except share and per share data)
| | Three month period | | Year | ||||
| | ended December 31, |
| ended December 31, | ||||
|
| 2021 | | 2020 |
| 2021 | | 2020 |
| | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 |
Revenue | | 239 | | — | | 1,354 | | — |
| | | | | | | | |
Other income | | 205 | | 264 | | 1,043 | | 9,452 |
| | | | | | | | |
Research and development costs | | (12,456) | | (8,419) | | (42,220) | | (38,135) |
General and administrative costs | | (5,316) | | (3,512) | | (17,368) | | (13,685) |
Total operating costs | | (17,772) | | (11,931) | | (59,588) | | (51,820) |
| |
| |
| |
| |
|
Operating result | | (17,328) | | (11,667) | | (57,191) | | (42,368) |
Finance income and expense | | (298) | | (1,692) | | (2,789) | | (3,716) |
Results related to associates | | (85) | | (52) | | (217) | | (322) |
Gain on disposal of associate | | — | | — | | 514 | | — |
Results related to financial liabilities measured at FVTPL | | (507) | | 221 | | (1,880) | | (84) |
| |
| |
| |
| |
|
Result before corporate income taxes | | (18,218) | | (13,190) | | (61,563) | | (46,490) |
Income taxes | | (22) | | (38) | | (117) | | (124) |
| |
| |
| |
| |
|
Result for the period | | (18,240) | | (13,228) | | (61,680) | | (46,614) |
Other comprehensive income (foreign exchange differences on foreign operation) | | 158 | | (206) | | 619 | | (340) |
| |
| |
| |
| |
|
Total comprehensive income | | (18,082) | | (13,434) | | (61,061) | | (46,954) |
| | | | | | | | |
Result attributable to | |
| |
| |
| |
|
Owners of the Company | | (18,221) | | (13,217) | | (61,621) | | (46,565) |
Non-controlling interests | | (19) | | (11) | | (59) | | (49) |
| | (18,240) | | (13,228) | | (61,680) | | (46,614) |
Total comprehensive income attributable to | | | | | | | | |
Owners of the Company | | (18,063) | | (13,423) | | (61,002) | | (46,905) |
Non-controlling interests | | (19) | | (11) | | (59) | | (49) |
| | (18,082) | | (13,434) | | (61,061) | | (46,954) |
| |
| |
| |
| |
|
Share information | |
| |
| |
| |
|
Weighted average number of shares outstanding1 | | 71,239,299 | | 50,166,394 | | 64,182,492 | | 50,060,565 |
| | | | | | | | |
Earnings per share attributable to owners of the Company (Euro per share) | | | | | | | | |
Basic loss per share1 | | (0.26) | | (0.26) | | (0.96) | | (0.93) |
Diluted loss per share1 | | (0.26) | | (0.26) | | (0.96) | | (0.93) |
| 1. | For this period presented in these financial statements, the potential exercise of share options is not included in the diluted earnings per share calculation as the Company was loss-making in all periods. Due to the anti-dilutive nature of the outstanding options, basic and diluted earnings per share are equal in this period. |
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Changes in Equity
| | Attributable to owners of the Company | | | | | ||||||||||||||
|
| Number of |
| Share |
| Share |
| Equity settled |
| Option |
| Translation |
| Accumulated |
| Total |
| Non- |
| Total |
|
|
| | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 |
Balance at January 1, 2020 |
| 53,975,838 | | 2,159 | | 287,214 | | 16,551 | | — | | 151 | | (211,746) | | 94,329 | | (496) | | 93,833 |
Result for the period |
| — | | — | | — | | — | | — | | — | | (46,565) | | (46,565) | | (49) | | (46,614) |
Other comprehensive income |
| — | | — | | — | | — | | — | | (340) | | — | | (340) | | — | | (340) |
Recognition of share-based payments |
| 102,007 | | 4 | | 538 | | 7,838 | | — | | — | | — | | 8,380 | | — | | 8,380 |
Issuance of ordinary shares | | 53,708 | | 2 | | 270 | | — | | — | | — | | — | | 272 | | — | | 272 |
Treasury shares transferred | | (303,408) | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Recognition of equity component of convertible loan | | — | | — | | — | | — | | 280 | | — | | — | | 280 | | — | | 280 |
Share options lapsed | | — | | — | | — | | (91) | | — | | — | | 91 | | — | | — | | — |
Share options exercised |
| 303,408 | | — | | 735 | | (473) | | — | | — | | 473 | | 735 | | — | | 735 |
| | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2021 |
| 54,131,553 | | 2,165 | | 288,757 | | 23,825 | | 280 | | (189) | | (257,747) | | 57,091 | | (545) | | 56,546 |
| | | | | | | | | | | | | | | | | | | | |
Balance at January 1, 2021 |
| 54,131,553 | | 2,165 | | 288,757 | | 23,825 | | 280 | | (189) | | (257,747) | | 57,091 | | (545) | | 56,546 |
Result for the period |
| — | | — | | — | | — | | — | | — | | (61,621) | | (61,621) | | (59) | | (61,680) |
Other comprehensive income |
| — | | — | | — | | — | | — | | 619 | | — | | 619 | | — | | 619 |
Recognition of share-based payments |
| 112,657 | | 5 | | 382 | | 6,216 | | — | | — | | — | | 6,603 | | — | | 6,603 |
Issuance of ordinary shares | | 20,498,451 | | 820 | | 107,657 | | — | | — | | — | | — | | 108,477 | | — | | 108,477 |
Treasury shares transferred | | (352,167) | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Recognition of equity component of convertible loan | | — | | — | | — | | — | | 1,146 | | — | | — | | 1,146 | | — | | 1,146 |
Share options lapsed | | — | | — | | — | | (522) | | — | | — | | 522 | | — | | — | | — |
Share options exercised | | 474,887 | | 5 | | 1,513 | | (1,076) | | — | | — | | 1,076 | | 1,518 | | — | | 1,518 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
Balance at December 31, 2021 |
| 74,865,381 | | 2,995 | | 398,309 | | 28,443 | | 1,426 | | 430 | | (317,770) | | 113,833 | | (604) | | 113,229 |
PROQR THERAPEUTICS N.V.
Unaudited Condensed Consolidated Statement of Cash Flows
| | Three month period | | Year | ||||
| | ended December 31, |
| ended December 31, | ||||
| | | | | | | | |
|
| 2021 | | 2020 | | 2021 | | 2020 |
| | € 1,000 | | € 1,000 | | € 1,000 | | € 1,000 |
Cash flows from operating activities | |
| |
| |
| |
|
Net result | | (18,240) | | (13,228) | | (61,680) | | (46,614) |
Adjustments for: | | | | | | | | |
— Depreciation | | 552 | | 652 | | 2,329 | | 2,355 |
— Share-based compensation | | 1,781 | | 1,490 | | 6,216 | | 7,838 |
— Other income | | — | | — | | — | | (8,423) |
— Financial income and expenses | | 298 | | 1,692 | | 2,789 | | 3,716 |
— Results related to associates | | 85 | | 52 | | 217 | | 322 |
— Gain on disposal of associate | | — | | — | | (514) | | — |
— Results related to financial liabilities measured at fair value through profit or loss | | 507 | | (221) | | 1,880 | | 84 |
— Income tax expenses | | 22 | | 38 | | 117 | | 124 |
| | | | | | | | |
Changes in working capital | | 19,337 | | (1,900) | | 24,995 | | (5,474) |
Cash gained (used) in operations | | 4,342 | | (11,425) | | (23,651) | | (46,072) |
| |
| |
| |
| |
|
Corporate income tax paid | | (22) | | (20) | | (117) | | (188) |
Interest received | | — | | 195 | | 5 | | 313 |
Interest paid | | (535) | | (506) | | (2,249) | | (1,113) |
| |
| |
| |
| |
|
Net cash gained (used) in operating activities | | 3,785 | | (11,756) | | (26,012) | | (47,060) |
| |
| |
| |
| |
|
Cash flow from investing activities | | | | | | | | |
Purchases of property, plant and equipment | | (225) | | (118) | | (484) | | (924) |
Sales of property, plant and equipment | | 59 | | — | | 59 | | — |
| |
| |
| |
| |
|
Net cash used in investing activities | | (166) | | (118) | | (425) | | (924) |
| |
| |
| |
| |
|
Cash flow from financing activities | |
| |
| |
| |
|
Proceeds from issuance of shares, net of transaction costs | | — | | — | | 108,477 | | — |
Proceeds from exercise of share options | | 363 | | 11 | | 1,518 | | 735 |
Proceeds from borrowings | | 284 | | — | | 1,137 | | 579 |
Proceeds from convertible loans | | 26,520 | | 249 | | 26,520 | | 13,791 |
Repayment of lease liability | | (223) | | (63) | | (820) | | (605) |
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Net cash generated by financing activities | | 26,944 | | 197 | | 136,832 | | 14,500 |
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Net increase (decrease) in cash and cash equivalents | | 30,563 | | (11,677) | | 110,395 | | (33,484) |
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Currency effect cash and cash equivalents | | 820 | | (1,332) | | 1,291 | | (2,628) |
Cash and cash equivalents, at beginning of the period | | 156,141 | | 88,847 | | 75,838 | | 111,950 |
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Cash and cash equivalents at the end of the period | | 187,524 | | 75,838 | | 187,524 | | 75,838 |