(13) Other operating income
Accounting and measurement policies
Other operating income
Other operating income comprises all income that cannot be allocated to net sales or finance income on account of its character.
Income from upfront payments, milestone payments, and royalties
Income from upfront and milestone payments, royalties, and license payments comprises consideration received by the Group from contract partners that are not customers. This relates in particular to collaboration and out-licensing agreements in the Healthcare business sector (see Note (7) “Collaboration agreements”).
Income from the revaluation of contingent considerations
The accounting treatment of contingent consideration agreed at the sale of a business as defined in IFRS 3 is shown in Note (36) “Other financial assets”.
Other operating income was broken down as follows:
€ million |
|
2020 |
|
2019 |
|---|---|---|---|---|
Income from the reversal of provisions for litigation |
|
424 |
|
18 |
Income from upfront payments, milestone payments and royalties |
|
229 |
|
557 |
Income from disposal of businesses and non-current assets |
|
97 |
|
44 |
Income from miscellaneous services |
|
5 |
|
3 |
Income from the revaluation of contingent considerations |
|
1 |
|
8 |
Remaining other operating income |
|
81 |
|
84 |
Other operating income |
|
838 |
|
715 |
Income from the reversal of provisions for litigation totaling € 424 million (2019: € 18 million) primarily related to the legal dispute with Biogen Inc., United States, concerning the sale of the product Rebif®, as well as the adjustment of the provision for the EU antitrust proceedings in connection with the acquisition of Sigma-Aldrich Corporation, United States. Additional information can be found in Note (27) “Other provisions”.
Income from upfront payments, milestone payments, and royalties totaling € 229 million (2019: € 557 million) resulted in particular from the collaboration agreement with GlaxoSmithKline plc, United Kingdom (2020: € 85 million/2019: € 92 million). The prior-year figure also included income from the strategic alliance with Pfizer Inc., United States, in the amount of € 281 million. For further information see Note (7) “Collaboration agreements”. License income primarily resulted from interferon beta products (Biogen Inc., United States) in the amount of € 74 million (2019: € 89 million) and a license for the antidepressant Viibryd® (AbbVie Inc., United States) in the amount of € 38 million (2019: € 0 million). It also included a milestone payment in connection with the out-licensing of atacicept to Vera Therapeutics, Inc., United States, in the amount of € 14 million.
The income from the disposal of businesses and non-current assets was largely attributable to the sale of the Allergopharma allergy business to Dermapharm Beteiligungs GmbH, Grünwald (€ 35 million), the out-licensing of the osteoarthritis drug candidate M6495 to Novartis AG, Switzerland (€ 27 million), and the sale of atacicept to Vera Therapeutics, Inc., United States (€ 13 million).
As in the previous year, other operating income included income from services performed in connection with the Consumer Health business that was divested in 2018.