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43. Commitments and contingencies

43.1 Capital and other commitment

43.1 Capital and other commitment

At December 31, 2020, the Group has committed to spend € 150 million (2019: € 62 million) mainly with respect to expected capital expenditures for the new biological production unit, the new Gene-Therapy plant and lab equipment on the Braine site (Belgium).

UCB has entered into long-term development agreements with various pharmaceutical enterprises, clinical trial operators and financial investors. Such collaboration agreements may include milestone payments which are dependent on successful clinical development or on meeting specified sales targets. The table below sets out the maximum that would be paid if all milestones, however unlikely, are achieved but excludes variable royalty payments based on unit sales and amounts accrued for milestones already achieved. The amounts are not risk-adjusted or discounted, and the timing of the payments is based on the Group’s current best estimate of achievement of the relevant milestones.

€ million

2020

2019

Less than 1 year

147

29

Between 1 and 5 years

492

171

More than 5 years

781

642

Total

1 420

842

UCB has concluded several agreements with Contract Manufacturing Organizations for the supply of its products. Total outstanding commitments towards these CMOs amount to € 536 million as per end of 2020 (2019: € 482 million).

As part of UCB’s innovation strategy, UCB has established a corporate venture fund, UCB Ventures. The main objectives of the fund are to add breadth to UCB’s innovation ecosystem, to create a window on new technologies, products, platforms and channels to augment or complement UCB’s existing activities, to develop network and strategic relationships in the venture capital investor community to identify opportunities that UCB might not otherwise see. Within this framework UCB has outstanding commitments at the end of 2020 for a total amount of US$ 18 million relating to investments in venture capital funds.