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TAG overview

Results

(12) Research and development costs

Operating Activities

(12) Research and development costs

Accounting and measurement policies

Research and development costs

The item comprises the costs of the Group’s own research and development departments, the expenses incurred as a result of research and development collaborations as well as the costs of clinical trials in the Healthcare business sector (both before and after approval is granted).

For information on the capitalization of development costs, see Note (19) “Other intangible assets”.

Cost reimbursements for research and development are offset against research and development costs.

The net income from repayments of subsidies received and reimbursements recognized within research and development costs amounted to € 127 million in 2020 (2019: € 99 million). The increase was mainly due to the strategic alliance with GlaxoSmithKline plc, United Kingdom, in the field of immuno-oncology (see Note (7) “Collaboration agreements”).

Net income from repayments of subsidies received and reimbursements included reimbursements from governmental institutions as well as repayments of previously recognized governmental subsidies, which amounted to net income of € 2 million in total (2019: net expenses of € 5 million).