UCB has put measures in place to protect the health and wellbeing of its employees and other key stakeholders especially its patients, while remaining focused on ensuring business critical activities are properly maintained.
The direct impact of the COVID-19 pandemic on UCB’s financial position, performance and cash-flows has been limited.
Revenues of the UCB Group were impacted by a slower growth of new patients using UCB’s drugs.
There have been no disruptions in supply chains and/or production. UCB has been closely monitoring its supply chain for potential impact to the supply of its medicines around the world. UCB maintains strategic buffer stock and leverages multi-sourcing for key materials in its global supply chain to mitigate the impact of supply disruptions due to events such as the current coronavirus outbreak. UCB’s global manufacturing and distribution network has remained fully operational and in constant contact with its global network of key suppliers, manufacturing partners, and distributors to identify potential risks and take appropriate measures to avoid any disruption. No supply disruptions of UCB’s products are currently anticipated. As this global situation evolves, UCB will continue to take the steps necessary to safeguard the reliable supply of its medicines.
In March, the evolving COVID-19 pandemic led UCB to pause new patient recruitment into ongoing clinical studies and to delay all new study starts. This has led to some delays of UCB’s clinical studies. As from end-May 2020, UCB began to restart clinical study recruitment, including new study starts, at clinical trials sites that meet the restart criteria. The updated timelines for UCB’s clinical development program can be found in the Business Performance Review under 1.2 Key Events .
UCB will continue to monitor the impact of COVID-19 on all ongoing clinical trials and will implement changes as necessary.
UCB has not applied for any relief or support measure issued by governments or other public institutions. The COVID-19 situation has not substantially impacted UCB’s income tax expenses but UCB is continuously monitoring for potential impacts.
UCB has not benefited from any COVID-19-related lease concessions. Therefore, there is no impact on the accounting of lease agreements from the IASB’s amendments to IFRS 16.
UCB has assessed that the COVID-19 situation has not at present given any indication that any asset may be impaired and therefore concluded that none of the impairment indicators in IAS 36 have been triggered. No significant risk of material adjustment to the carrying amounts of assets and liabilities has arisen as a result of the COVID-19 pandemic.
UCB uses a provision matrix in order to determine lifetime expected credit losses (ECL). However, if there is an indication or evidence of impairment for a specific receivable, this receivable will be impaired for the amount of lifetime ECL. Forward-looking information has been incorporated in the ECL estimate and assumptions used in the ECL model have not changed significantly over the period. Up till now, there is no indication that the COVID-19 pandemic will be impacting the lifetime ECL for receivables. No impairment for specific receivables as a result of the pandemic has been accounted for.
The COVID-19 pandemic has not had any major impact on the liquidity position of UCB Group. The liquidity risk management strategy is adequate and appropriate and has not changed, and there was no need for any cancellation or reduction of the dividend pay-out in 2020.
UCB also did not change its credit risk management practices because of the COVID-19 pandemic.
Financial risks are described under Note 5 and have not been materially impacted by the COVID-19 situation. UCB’s access to financing under its existing credit facilities has not been affected as a consequence of COVID-19. There have no changes in existing terms of borrowings or other financial liabilities during the reporting period.
UCB’s ability to continue as a going concern is not in any question.