Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity
• Human Rights
• Anti-Corruption

Social Achievements

• Maintained a highly satisfactory employee turnover rate.
• 65.5% female and 34.6% male employees, including 67% female and 33% male employees at director level or above.
• Implemented a whistleblower policy in 2018 with mandatory annual meetings for all employees to address potential violations of respect for diversity and human rights.
• Included in supplier contracts a new condition requiring compliance with the Declaration of Helsinki since 2018.

Governance Achievements

• Established a whistleblower policy to report potential violations of laws and internal policies, including fraud and anti-corruption.
• Familiarized all new employees with company policies regarding anti-corruption via the Employee Handbook.

Climate Goals & Targets

Environmental Challenges

• Lack of sufficient financing.
• Non-compliance with legislation and industry standards.
• Attraction and retention of talent.

Mitigation Strategies

• Raised additional capital through a directed share issue and private placement in February 2020, expected to cover financing needs until well into 2021.
• Increased regulatory resources to facilitate interactions with regulators, actively monitor the regulatory environment, and ensure compliance.
• Implemented new IT-security procedures to reduce the risk of cybercrime.
• Established an attractive workplace with high ethical standards, initiatives for personal and professional development, improved health-wellbeing, work-life flexibility, and participation in Orphazyme’s success through long-term incentive plans.

Supply Chain Management

Responsible Procurement

• Requires all suppliers to comply with the Declaration of Helsinki.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Human Rights
• Anti-Corruption & Bribery
• Environment & Climate
• Social / Employees
• Business Ethics
• Data Ethics

Social Achievements

• Reached board of directors diversity target (40% women at year-end 2021).
• Maintained a diverse workforce consisting of 58% women and 42% men.
• Workplace assessment survey: 92% satisfaction with physical work environment; 82% satisfaction with psychosocial work environment.

Governance Achievements

• Continued to train existing employees in business ethics and conflict of interest.
• Continued to include business ethics and conflict of interest in onboarding training of all new employees.

Climate Goals & Targets

Environmental Challenges

• Phase 2/3 trial in IBM did not meet its primary and secondary endpoints.
• Phase 3 trial in ALS did not meet its primary and secondary endpoints.
• Received a Complete Response Letter (CRL) from the FDA for arimoclomol in NPC.
• Negative trend vote by the EMA's CHMP for arimoclomol in NPC.
• Financial difficulties leading to in-court restructuring and sale of assets.

Mitigation Strategies

• Restructuring plan implemented, including employee redundancies and termination of onerous contracts.
• Re-focused activities on gaining approval for arimoclomol in Europe and evaluating the regulatory path forward in the U.S.
• Sale of substantially all assets and business activities to KemPharm Denmark A/S.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Human Rights
• Anti-Corruption & Bribery
• Environment & Climate
• Social / Employees
• Data Ethics

Environmental Achievements

• Closed its laboratory space in Q1 2022, minimizing potential environmental risks from hazardous substances.
• Continued to focus on efficient energy use and management of office materials in 2022.

Social Achievements

• Assisted staff with IT and health support both in-office and at home working.
• Established a resilient culture centered on trust and collaboration.
• Conducted redundancy processes in accordance with applicable laws and regulations, with a focus on transparency and support.

Governance Achievements

• Maintained highest standards of conduct and did not tolerate bribery or corruption.
• Conducted anti-corruption and bribery training for employees.

Climate Goals & Targets

Environmental Challenges

• Securities litigation in the United States.
• Retention of key personnel.
• Limited operating business activities and employees following the sale of assets.
• Uncertainty regarding future prospects.
• Potential need to adjust gross to net revenue estimate due to rebates granted to co-financing healthcare authorities.
• Risks related to the Sale of Assets (liability based on contractual obligations).
• Non-compliance with legislation and industry standards.
• Currency risk (DKK, USD, EUR).
• Political and geopolitical conflict (Ukraine conflict).

Mitigation Strategies

• Reached an agreement in principle to settle the class action lawsuit in its entirety.
• Measures in employment contracts to provide time and flexibility to seek alternative solutions in the event of an executive departure.
• Employment agreement with CEO/CFO Anders Vadsholt (six-month notice period).
• Operating business activities in a lean and cost-efficient manner to conserve capital.
• Ongoing assessment of ways to maximize value for shareholders.
• Continued to respect internationally declared human rights and did not employ child labor.
• Followed established procedures for the use and disposal of hazardous substances (no longer relevant due to laboratory closure).

Supply Chain Management

Climate-Related Risks & Opportunities