Note 25: Operating Expenses
The operating expenses are made of the next three components:
| • | Research & development expenses |
| • | General and administrative expenses |
| • | Non-recurring operating income and expenses |
Research and development expenses
| (€‘000) | For the year ended December 31, | |||||||||||
| 2017 | 2016 | 2015 | ||||||||||
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Salaries |
7,007 | 8,160 | 5,785 | |||||||||
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Share-based payments |
862 | — | — | |||||||||
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Travel and living |
359 | 577 | 168 | |||||||||
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Preclinical studies |
1,995 | 4,650 | 2,398 | |||||||||
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Clinical studies |
3,023 | 4,468 | 6,723 | |||||||||
|
Raw materials & consumables |
1,825 | — | — | |||||||||
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Delivery systems |
430 | 964 | 173 | |||||||||
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Consulting fees |
1,522 | 791 | 1,842 | |||||||||
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External collaborations |
885 | — | — | |||||||||
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IP filing and maintenance fees |
513 | 799 | 763 | |||||||||
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Scale-up & automation |
1,892 | 4,164 | 642 | |||||||||
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Rent and utilities |
371 | 939 | 1,045 | |||||||||
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Depreciation and amortization |
1,488 | 1,345 | 1,033 | |||||||||
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Other costs |
735 | 817 | 2,196 | |||||||||
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Total Research and Development expenses |
22,908 | 27,675 | 22,767 | |||||||||
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Until year end 2016, the share-based payments were recorded as general and administrative expenses. Since 2017, the proportion of the share-based payments related to the R&D employees are presented as research and development expenses.
General and administrative expenses
| (€‘000) | For the year ended December 31, | |||||||||||
| 2017 | 2016 | 2015 | ||||||||||
|
Employee expenses |
2,630 | 2,486 | 2,761 | |||||||||
|
Share-based payments |
1,707 | 2,847 | 796 | |||||||||
|
Rent |
1,053 | 791 | 617 | |||||||||
|
Communication & Marketing |
761 | 728 | 891 | |||||||||
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Consulting fees |
2,227 | 2,029 | 1,511 | |||||||||
|
Travel & Living |
211 | 450 | 509 | |||||||||
|
Post employment benefits |
— | (24 | ) | (45 | ) | |||||||
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Depreciation |
229 | 173 | — | |||||||||
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Other |
490 | 265 | 190 | |||||||||
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Total General and administration |
9,310 | 9,744 | 7,230 | |||||||||
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Until year end 2016, the share-based payments were recorded as general and administrative expenses. Since 2017, the proportion of the share-based payments related to the R&D employees are presented as research and development expenses.
Amendments of Celdara Medical and Dartmouth College agreements and write-off of C-Cure and Corquest assets and liabilities
| (€‘000) |
For the year ended December 31, |
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| 2017 | 2016 | 2015 | ||||||||||
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Amendments of Celdara Medical and Dartmouth College agreements |
(24,341 | ) | — | — | ||||||||
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C-Cure IP asset impairment expense |
(6,045 | ) | — | — | ||||||||
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C-Cure RCA reversal income |
5,356 | — | — | |||||||||
|
Corquest IP asset impairment expenses |
(1,244 | ) | — | — | ||||||||
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Write-off C-Cure and Corquest assets and derecognition of related liabilities |
(1,932 | ) | — | — | ||||||||
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In 2017, the Group recognized non-recurring expenses related to the amendment of the agreements with Celdara Medical LLC and Dartmouth College (totalling €24.3 million, out of which an amount of €10.6 million was settled in shares, and thus a non-cash expense). The Group also proceeded with the write-off of the C-Cure and Corquest assets and derecognition of related liabilities (for net expense amounts of €0.7 million and €1.2 million respectively). There were no non-recurring items reported in the income statement of 2016 and 2015.