Annual Report 2025

Annual Report 2025

15. Other Operating Income

Other Operating Income

 

 

Year Ended December 31,

(in thousands of $)

 

2025

 

20241)

 

20231)

Research and development incentives

 

62,503

 

46,106

 

27,815

Payroll tax rebates

 

19,061

 

11,855

 

11,925

Collaboration revenue

 

2,166

 

4,348

 

35,533

Change in fair value on non-current financial assets

 

11,581

 

3,834

 

Other operating income

 

1,423

 

13

 

2,538

Total other operating income

 

96,734

 

66,156

 

77,811

1)

Comparative figures have been aligned with the presentation adopted in the current year.

For the year ended December 31, 2025, the collaboration revenue was generated under the agreement with Zai Lab. This note should be read alongside “Note 2.18 Other operating income – Collaboration and license agreements”.

15.1. Research and development incentives

The Company has accounted for tax incentives following a research and development tax incentive scheme in Belgium according to which the incentive will be refunded after a five years period, if not offset against the current tax payable over the period.

15.2. Payroll tax rebates

The Company accounted for payroll tax rebates as a reduction in withholding income taxes for its highly qualified personnel employed in its research and development department.

15.3. Collaboration revenue – AbbVie

In April 2016, the Company entered into the AbbVie Collaboration Agreement to develop and commercialize ARGX-115 (ABBV-151). In October 2023, the Company achieved the second development milestone upon initiation of a non-pivotal clinical trial, triggering a $30 million payment.

Subject to the continuing progress of ARGX-115 (ABBV-151) by AbbVie, the Company is eligible to receive future development, regulatory and commercial milestone payments in aggregate amounts of up to $50 million, $190 million and $325 million, respectively, as well as tiered royalties on sales at percentages ranging from the mid-single digits to the lower teens, subject to customary reductions.