iso4217:DKKxbrli:pure460322172019-01-012019-12-31460322172019-01-012019-12-311460322172018-01-012018-12-31460322172019-01-012019-12-311460322172019-01-012019-12-311460322172019-01-012019-12-312460322172019-01-012019-12-313460322172019-01-012019-12-31fsa:ContributedCapitalMember460322172019-01-012019-12-31fsa:RetainedEarningsMember460322172019-01-012019-12-31fsa:ProposedDividendRecognisedInEquityMember460322172019-01-012019-12-31fsa:RetainedEarningsMember460322172018-01-012018-12-31fsa:RetainedEarningsMember460322172019-01-012019-12-31fsa:ProposedDividendRecognisedInEquityMember460322172018-01-012018-12-31fsa:ProposedDividendRecognisedInEquityMember460322172019-12-31460322172018-12-31460322172019-01-01fsa:ContributedCapitalMember460322172019-01-01fsa:RetainedEarningsMember460322172019-01-01fsa:ProposedDividendRecognisedInEquityMember460322172019-01-01460322172019-12-31fsa:ContributedCapitalMember460322172019-12-31fsa:RetainedEarningsMember460322172019-12-31fsa:ProposedDividendRecognisedInEquityMemberAnnual reportAuditor's report on audited financial statementstruefalseBasis for OpinionOpinion2019-01-012019-12-312018-01-012018-12-312020-06-152020-06-15Ballerup2020-06-15KøbenhavnJan Ulrik StevsborgJan LarsenState-Authorised Public Accountantmne1654133963556Deloitte Statsautoriseret RevisionspartnerselskabWeidekampsgade62300København SDanmarkDK12838840Toldbodens Revision & RegnskabSuomisvej 1, 1. tv1927 Frederiksberg CReporting class C, medium-size enterprisefalse46032217MEDA A/SBorupvang12750BallerupDanmarkDKBallerup1822Jan Ulrik StevsborgDirektørJose Javier CotareloKurt GludJan Ulrik StevsborgChairman481242493367800012016649168120003610760016866000589548107800035518052157880007655415355200027862637122360000178626371000000017862637122360001000000000000296701525070001468476524750004435491549820002010403314830001456536929242000028500018026400004438141110000148125935421600000319460001525614261290880001525614261290880002100000210000052660518347980001000000006476051836898000210000034797881036897881210000052660518100000006283439666900029722906433712273500000763347255030009249646651800087800908921900008780090892190000152561426129088000<table class="richtext-table"><thead><tr><th><th><th><th></tr></thead><body><tr><td>Staff costs</td><td></td><td></td><td>DKK´000</td></tr><tr><td>Wages and salaries </td><td>10.229.567</td><td></td><td>14.521</td></tr><tr><td>Pension costs </td><td>914.961</td><td></td><td>1.108</td></tr><tr><td>Other social security costs </td><td>137.731</td><td></td><td>129</td></tr><tr><td>Other staff costs</td><td>734.390</td><td></td><td>1.055</td></tr><tr><td></td><td>12.016.649</td><td></td><td>16.813</td></tr><tr><td>Number of employees at balance sheet date</td><td>18</td><td></td><td>22</td></tr><tr><td>In accordance with the Danish Financial Statements Act section 98B (3), remu-</td><td></td><td></td><td></td></tr><tr><td>neration to the Executive Board and Board of Directors has not been disclosed. </td><td></td><td></td><td></td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th></tr></thead><body><tr><td>Financial expenses</td><td></td><td></td><td></td></tr><tr><td>Interest paid to group enterprises</td><td>567.518</td><td></td><td>1.005</td></tr><tr><td>Other financial expenses </td><td>22.030</td><td></td><td>73</td></tr><tr><td></td><td>589.548</td><td></td><td>1.078</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th></tr></thead><body><tr><td>Tax on profit for the year</td><td></td><td></td><td></td></tr><tr><td>Current tax for the year</td><td>7.633.472</td><td></td><td>3.560</td></tr><tr><td>Adjustments concerning prior years</td><td>15.988</td><td></td><td>0</td></tr><tr><td>Adjustments concerning deferred tax</td><td>5.955</td><td></td><td>-8</td></tr><tr><td></td><td>7.655.415</td><td></td><td>3.552</td></tr></table><table class="richtext-table"><thead><tr><th><th></tr></thead><body><tr><td></td><td>Acquired</td></tr><tr><td></td><td>concessions</td></tr><tr><td></td><td>and use rights</td></tr><tr><td>Intangible assets</td><td></td></tr><tr><td>Cost beginning of year</td><td>47.557.689</td></tr><tr><td>Cost end of year</td><td>47.557.689</td></tr><tr><td>Depreciation and impairment losses beginning of the year</td><td>-47.557.689</td></tr><tr><td>Depreciation and impairment losses end of the year</td><td>-47.557.689</td></tr><tr><td>Carrying amount end of year</td><td>0</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th></tr></thead><body><tr><td>Deferred tax assets</td><td>DKK</td><td></td><td>DKK´000</td></tr><tr><td>Equipment</td><td>18.026</td><td></td><td>40</td></tr><tr><td></td><td>18.026</td><td></td><td>40</td></tr><tr><td>Changes during the year</td><td></td><td></td><td></td></tr><tr><td>Beginning of year</td><td>39.969</td><td></td><td></td></tr><tr><td>Recognised in the income statement</td><td>-21.943</td><td></td><td></td></tr><tr><td></td><td>18.026</td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td></tr><tr><td>Prepayments</td><td></td><td></td><td></td></tr><tr><td>Prepayments comprise prepaid expenses.</td><td></td><td></td><td></td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th><th><th><th><th></tr></thead><body><tr><td>Equity</td><td></td><td></td><td></td><td></td><td>Pro-</td><td></td><td></td></tr><tr><td></td><td>Share</td><td></td><td>Retained</td><td></td><td>posed</td><td></td><td></td></tr><tr><td></td><td>capital</td><td></td><td>earnings</td><td></td><td>dividend</td><td></td><td>Total</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th><th><th><th><th></tr></thead><body><tr><td>2019</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity at 1 January 2019</td><td>2.100.000</td><td></td><td>34.797.881</td><td></td><td>0</td><td></td><td>36.897.881</td></tr><tr><td>Paid regular dividends</td><td>0</td><td></td><td>0</td><td></td><td>0</td><td></td><td>0</td></tr><tr><td>Net profit/loss for the year</td><td>0</td><td></td><td>17.862.637</td><td></td><td>10.000.000</td><td></td><td>27.862.637</td></tr><tr><td>Equity at 31 December 2019</td><td>2.100.000</td><td></td><td>52.660.518</td><td></td><td>10.000.000</td><td></td><td>64.760.518</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th><th><th><th><th></tr></thead><body><tr><td>2018</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity at 1 January 2018</td><td>2.100.000</td><td></td><td>22.561.878</td><td></td><td>0</td><td></td><td>24.661.878</td></tr><tr><td>Paid regular dividends</td><td>0</td><td></td><td>0</td><td></td><td>0</td><td></td><td>0</td></tr><tr><td>Net profit/loss for the year</td><td>0</td><td></td><td>12.236.003</td><td></td><td>0</td><td></td><td>12.236.003</td></tr><tr><td>Equity at 31 December 2018</td><td>2.100.000</td><td></td><td>34.797.881</td><td></td><td>0</td><td></td><td>36.897.881</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th><th><th><th><th><th><th></tr></thead><body><tr><td>The share capital consists of:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>10 shares at DKK 100, 49 shares at DKK 1.000, 35 shares at DKK 10.000, </td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>4 shares at DKK 50.000 5 shares at DKK 100.000, 1 share at DKK 1.000.000.</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Movements in share capital:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>2019</td><td></td><td>2018</td><td></td><td>2017</td><td></td><td>2016</td><td></td><td>2015</td></tr><tr><td>Contributed capital 01.01.</td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td></tr><tr><td>Increase of capital</td><td>0</td><td></td><td>0</td><td></td><td>0</td><td></td><td>0</td><td></td><td>0</td></tr><tr><td>Contributed capital 31.12.</td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td><td></td><td>2.100.000</td></tr></table><table class="richtext-table"><thead><tr><th><th><th><th><th><th><th><th></tr></thead><body><tr><td> Unrecognised lease commitments</td><td></td><td></td><td></td><td></td><td>DKK´000</td><td></td><td>DKK´000</td></tr><tr><td>Commitments under leases until expiry</td><td></td><td></td><td></td><td></td><td>425</td><td></td><td>1.165</td></tr></table>Contingent liabilities The Entity participate in a Danish Joint taxation arrangement in which Mylan Denmark ApS serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Company is therefore jointly and severally liable with the other jointly taxed companies for income taxes etc. for the jointly taxed companies, and for obligation, if any, relating to the witholding of tax on interest, royalties and dividends for the jointly taxed companies. The jointly taxed companies total known net liability in the joint taxation arrangement is stated in the financial statements of the administration company.Transaction with related parties Meda A/S is 100% owned by Meda AB , Box 906 17009 Solna, Sweden. Referring to section 98 c (7) of the Danish Financial Statements Act, Meda A/S has not disclosed transactions with related parties. Group Relations Name and registrered office of the Parent preparing consolidated financial statements for the largest group: Mylan N.V., The Netherlands, Building 4, Trident Place Mosquito Way, Hatfield, Hertfordshire AL10 9UL Name and registrered office of the Parent preparing consolidated financial statements for the smallest group: Meda AB, Box 906, 17009 Solna, Sweden.The Board of Directors and the Executive Board have today considered and approved the annual report of Meda A/S for the financial year 2019.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2019 and of the results of its operations for the financial year 01.01.2019 -31.12.2019.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.To the shareholders of Meda A/S OpinionWe have audited the financial statements of Meda A/S for the financial year 01.01.2019 - 31.12.2019, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2019 and of the results of its operations for the financial year 01.01.2019 - 31.12.2019 in accordance with the Danish Financial Statements Act.Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s responsibilities for the audit of the financial statements section of this auditor’s report. We are independent of the Entity in accordance with the International Ethics Standards Board of Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Management's responsibilities for the financial statementsManagement is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.INDEPENDENT AUDITOR´S REPORTAuditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exits. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.INDEPENDENT AUDITOR´S REPORTWe communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Statement on the management commentaryManagement is responsible for the management commentary.Our opinion on the financial statements does not cover the management commentary, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management commentary. Main activitiesThe company markets and sells pharmaceuticals and medical equipment. Most of the products are imported and sold to the health sector in Denmark.Developments throughout the yearThe company’s profit and loss account for 2019 shows a profit of DKK 27.862.637 and the company's balance on 31 December 2019 shows an equity of DKK 64.760.518.The past year and follow-up of the last year's expected developmentsThe company’s expectations of a gradual increase in activity and income for 2019 were met.Goals and expectations for the coming year.Management expects positive results for the coming year, but lower than this year's results, which were positively affected by sales of inventory to Mylan Denmark ApS. In future, Meda A/S will act as intercompany distributor to Mylan Denmark ApS, which gives reason to expect results for 2020 between DKK 5-10 million.External environmentThe Meda Group is aware that our actions must be in harmony with economic and ecological needs and must also reflect our responsibility to society as a whole. The central management principles in the Meda Group are therefore, attention to human health and safety, sound economic exploitation of resources, and the maintenance of a clean environment.Events after the balance sheet dateIn early 2020, the outbreak of the coronavirus disease (COVID-19) has escalated, and on 11 March 2020 the WHO declared it a worldwide pandemic. The outbreak has led to a number of precautions that affect the planning and execution of day-to-day operations, and the Group’s vendors and customers may be affected as well. Their financial impact cannot be determined at this point in time.Aside from this, no material events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. Reporting classThis annual report has been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class C (medium).The acouting policies applied to these financial statements are consistent with those applied last year.The financial statements are presented in Danish kroner.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably.On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item.Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement.Income is recognised in the income statement when earned, whereas costs are recognised by the amounts at tributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the one in effect at the payment date, or the rate at the balance sheet date are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates.ACCOUTING POLICIES APPLIEDIncome statementRevenueRevenue is measured ex. discounts and bonuses etc. and is recognised in the income statement provided that transfer of risk to the buyer has taken place before year end. Revenue is measured ex. VAT and taxes charged on behalf of third parties. Revenue also includes intercompany recharges.Administrative expensesAdministrative expenses comprise expenses for administrative staff, management, office premises and office expenses, and depreciation.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s primary activities.Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including interest income on receivables from group enterprises, net capital gains on securities, payables and transactions in foreign currencies, amortisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion to entries directly in equity.The Entity is jointly taxed with all Danish Entities of Mylan inc. The current Danish income tax is allocated among the jointly taxed entities proportionally to theis taxable income (full allocation with refund concerning tax losses). ACCOUTING POLICIES APPLIEDBalance sheetAcquired concessions and use rightsAcquired concessions and use rights are measured at cost less accumulated depreciation and impairment or at recoverable amount if this is lower.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. Interest expenses on loans for the financing of the manufacture of property, plant and equipment are included in cost if they relate to the manufacturing period. All other finance costs are recognised in the income statement.Depreciation is provided on a straight-Line basis over the expected useful lives of the assets. The expected useful lives are as follows:Acquired concessions and use rights 10 yearsGain and losses on the disposal of property, plant and equipment are recognised in the income statement as other operating income or on other operation expenses.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale. ReceivablesReceivables are measured at amortised cost, usually equaling nominal value less write-downs for bad and doubtful debts.Deffered taxDeffered tax is recognised on all temporary differences between the carryng amount and tax-based value of assets and liabilities, for which the tax-based value of assets is calculated based on the planned use of each asset.ACCOUTING POLICIES APPLIEDDeffered tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost. CashCash comprises cash in hand and bank deposits.Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Income tax receivable or payableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax calculated on this year’s taxable income, adjusted for prepaid tax.Cash flow statementPursuant to section 86 (4) of the Danish Financial statement Act the Entity has not prepared any cash flow statement, as its included in the annual report of Mylan Inc.