Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk .
We are exposed to a variety of financial risks in the normal course of our business, including market risk (including currency, price, and interest rate risk), credit risk and liquidity risk. Our overall risk management program focuses on preservation of capital and the unpredictability of financial markets and has sought to minimize potential adverse effects on our financial performance and position.
Market Risk
Currency risk
We are exposed to foreign exchange risk arising from various currencies, primarily with respect to the U.S. dollar and euro and to a lesser extent to the British pound and the Swiss franc. As our U.S. operating entity primarily conducts its operations in U.S. dollars, its exposure to changes in foreign currency is insignificant. Similarly, the exposure to changes in foreign currencies of our Swiss and French entities are insignificant as well.
Our Dutch entities hold significant amounts of U.S. dollars in cash and cash equivalents and investment securities, have debt and interest obligations to Hercules denominated in U.S. dollars, generate collaboration revenue denominated in U.S. dollars, receive services from vendors denominated in U.S. dollars and occasionally British Pounds and fund the operations of our U.S. operating entity in U.S. dollars. Foreign currency denominated account receivables and account payables are short-term in nature (generally 30 to 45 days).
Variations in exchange rates will impact earnings and other comprehensive income or loss. On December 31, 2025, if the euro had weakened 10% against the U.S. dollar with all other variables held constant, the pre-tax loss for the year would have been $12.4 million higher (December 31, 2024: pre-tax loss $25.0 million higher), and other comprehensive loss would have been $2.5 million lower (December 31, 2024: other comprehensive loss $11.0 million higher). Conversely, if the euro had strengthened 10% against the U.S. dollar with all other variables held constant, the pre-tax loss for the year would have been $12.4 million lower (December 31, 2024: pre-tax loss $25.0 million lower), and other comprehensive loss would have been $1.9 million higher (December 31, 2024: other comprehensive loss $12.1 million lower).
We strive to mitigate foreign exchange risk through holding sufficient funds in euro and U.S. dollars, to finance budgeted cash flows for generally 18 months.
The sensitivity in other comprehensive income to fluctuations in exchange rates primarily relates to the translation of the net assets of our Dutch entities from their functional currency, the euro, into our reporting currency, the U.S. dollar.
Price risk
The market prices for the provision of preclinical and clinical materials and services, as well as external contracted research, may vary over time.
The commercial prices of any of our products or product candidates are currently uncertain.
We are not exposed to commodity price risk.
We do not have a material exposure to equity securities price risk, as we do not hold marketable equity securities.
Interest rate risk
Our interest rate risk arises from short- and long-term debt and investment securities.
In June 2013, we entered into a venture debt loan facility with Hercules, which was last amended in September 2025, under which our borrowings bear interest at a variable rate with a fixed floor. Long-term debt issued at fixed rates expose us to fair value interest rate risk. As of December 31, 2025, the loan bore a nominal interest rate of 9.45%.
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As of December 31, 2025, if interest rates on borrowings had been 1.0% higher with all other variables held constant, pre-tax earnings for the year would have been $0.5 million lower (2024: $0.8 million lower; 2023: $1.0 million lower.)
We invest in government debt in accordance with our investment policy. We are exposed to interest rate risk as market interest rates could differ from the interest rates that we fix at the time of acquiring these investment securities. As we intend to hold these to maturity, we do not recognize changes in the fair value of our investment which are caused by changes in market interest rates. This means that a change in prevailing interest rates may cause the fair value of the investment to fluctuate. For example, if we hold a security that was issued at a fixed interest rate at the then-prevailing rate and the prevailing interest rate later rises, the fair value of our investment will probably decline.
All of our investment securities held as of December 31, 2025, had maturities ranging between one to nine months. Due to the relatively short-term nature of these financial instruments and our ability and intention to hold these investments to maturity, we believe there is no material exposure to interest rate risk.
Credit Risk
Credit risk is managed on a consolidated basis. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, outstanding receivables and committed transactions with collaboration partners and a third-party manufacturer, along with security deposits paid to landlords. As of December 31, 2025, our primary counterparties include CSL Behring and Genezen.
Our cash and cash equivalents include bank balances, demand deposits and other short-term highly liquid investments (with maturities of less than three months at the time of purchase) that are readily convertible into a known amount of cash and are subject to an insignificant risk of fluctuation in value.
Restricted cash includes deposits made in relation to facility leases in Amsterdam, the Netherlands and Lexington, Massachusetts, and Basel, Switzerland. The deposits are neither impaired nor past due.
We also have short-term investment securities in U.S. and European government bonds maturing within one to nine months. Our investment policy requires us to invest in U.S. and European government bonds with a high investment credit rating. Due to the high credit quality of our counterparties, we believe there is no material exposure to credit risk in our portfolio of investment securities.
Liquidity Risk
Based on our current operating plan, research and development plans and our timing expectations related to the progress of our programs, we believe our cash and cash equivalents, restricted cash, and investment securities will be sufficient to fund our projected operating expenses into the second half of 2029. Such operating expenses include expenses to fund the ongoing clinical trials of AMT-130, AMT-162, AMT-191 and AMT-260, as well as the potential investment of a material portion of the proceeds from our September 2025 public follow-on offering primarily into advancing certain of our clinical candidates into late stage development. The amount and timing of our actual expenditures may vary significantly depending on when we commence, as well as the design of, any Phase III trials for AMT-130, AMT-191, and AMT-260 that we may conduct. We have based our estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect, and as such, we may require additional funding.
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The table below analyzes our financial liabilities in relevant maturity groupings based on the length of time until the contractual maturity date, as of the balance sheet dates. Disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying value as the impact of discounting is not significant.
Less than
Between
Between
Undefined
1 year
1 - 3 years
3 - 5 years
Over 5 years
(in thousands)
At December 31, 2025
Long-term debt (including payments of nominal interest and back end fees)
$
—
$
4,791
$
15,659
$
51,472
$
—
Accounts payable, accrued expenses and other current liabilities
—
46,462
—
—
—
Commitments related to uniQure France Acquisition (maximum nominal amounts) (1)
188,000
—
—
—
—
Total
$
188,000
$
51,253
$
15,659
$
51,472
$
—
At December 31, 2024
Long-term debt (including payments of nominal interest and back end fees)
$
—
$
8,616
$
57,403
—
—
Accounts payable, accrued expenses and other current liabilities
—
58,175
—
—
—
Commitments related to uniQure France Acquisition (maximum nominal amounts) (2)
166,195
—
—
—
—
Total
$
166,195
$
66,791
$
57,403
$
—
$
—
(1) Payments are due in EUR and have been translated at the foreign exchange rate as of December 31, 2025, of $1.18 / €1.00
(2) Payments are due in EUR and have been translated at the foreign exchange rate as of December 31, 2024, of $1.04 / €1.00
The table of contractual undiscounted cash flows excludes the liability in relation to pre-funded warrants as these are expected to be settled in ordinary shares and do not require cash settlement.
In relation to the uniQure France Acquisition, we entered into commitments to make payments to the former shareholders upon the achievement of certain contractual milestones. The commitments include payments related to post-acquisition services that we agreed to as part of the transaction. The timing of achieving these milestones, as well as whether the milestone will be achieved at all, and consequently the timing of payments is generally uncertain. We expect these obligations will become payable between 2028 and 2033. If and when due, up to 25% of the milestone payments can be settled with our ordinary shares .
Item 8. Financial Statements and Supplementary Data .
The information required by this Item 8 is included in Part IV, Item 15, and is incorporated by reference.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure .
None.