ASCENDIS PHARMA A/S INDEX TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Page Unaudited Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income / (Loss) for the Three

INDEX TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Unaudited Condensed Consolidated Interim Statements of Profit or Loss

and Other Comprehensive Income / (Loss) for the Three Months Ended March 31

Unaudited Condensed Consolidated Interim Statements of Financial Position

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

Unaudited Condensed Consolidated Interim Cash Flow Statements for the

Three Months Ended March 31

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

Note 1 General Information

Pharma A/S, together with its subsidiaries, is a biopharmaceutical company applying its innovative TransCon technologies to build a leading, fully integrated biopharmaceutical company. Ascendis Pharma A/S was incorporated in 2006 and is

headquartered in Hellerup, Denmark. Unless the context otherwise requires, references to the Company, we, us and our refer to Ascendis Pharma A/S and its subsidiaries.

The address of the Company s registered office is Tuborg Boulevard 12, DK-2900, Hellerup,

On February 2, 2015, the Company completed an initial public offering which resulted in the listing of American Depositary

Shares, or ADSs, representing the Company s ordinary shares, under the symbol ASND in the United States on The Nasdaq Global Select Market.

The Company s Board of Directors approved these unaudited condensed consolidated interim financial statements on May 19, 2020.

Note 2 Summary of Significant Accounting Policies

Basis of Preparation

condensed consolidated interim financial statements of the Company are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Certain information and disclosures normally included in the

consolidated financial statements prepared in accordance with International Financial Reporting Standards ( IFRS ) have been condensed or omitted. Accordingly, these unaudited condensed consolidated interim financial statements should be

read in conjunction with the Company s annual consolidated financial statements for the year ended December 31, 2019 and accompanying notes, which have been prepared in accordance with IFRS as issued by the International Accounting

Standards Board, and as adopted by the European Union.

The accounting policies applied are consistent with those of the previous

financial year. Our accounting policies for marketable securities included within cash and cash equivalents, applied for the first time in this reporting period, are described below. A description of our accounting policies is provided in the

Accounting Policies section of the audited consolidated financial statements as of and for the year ended December 31, 2019.

preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company s accounting policies. The areas

involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the unaudited condensed consolidated interim financial statements are disclosed in Note 3.

Cash and Cash Equivalents

Securities with Short-Term Maturity

In order to mitigate concentration of credit risks, the Company s business model comprise

objectives to hold marketable securities in order to collect contractual cash-flows.

Marketable securities comprise investments in

government bonds and similar securities ( securities or instruments ). Contractual terms of the individual securities give rise on specified dates to cash flows that are solely payments of principal and interest on the

principal amount outstanding. This assessment is referred to as the SPPI-test and is performed at an instrument level.

2020, the Company held short-term marketable securities with a maturity of three months or less on the date of acquisition, that are presented as cash and cash equivalents in the unaudited consolidated interim statements of financial position.

Marketable securities are initially recognized at fair value and subsequently measured at amortized cost and are subject to impairment

according to expected credit loss. Gains and losses are recognized in the consolidated statement of profit or loss when the specific security or portfolio of securities is derecognized, modified or impaired.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

New and Amended IFRS Standards Adopted by the Company

Several new amendments and interpretations became applicable for the current reporting period, but do not have an impact on the accounting

policies applied by the Company.

Note 3 Critical Accounting Judgments and Key Sources of Estimation Uncertainty

In the application of our accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts

of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in

the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgments made in the process of applying our accounting policies and that have the most significant effect on the amounts recognized

in our unaudited condensed consolidated interim financial statements relate to revenue recognition, share-based payment, internally generated intangible assets, and to our collaboration agreements.

The key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and

liabilities within the next financial year, primarily relate to recognition of accruals for manufacturing and clinical trial activities. No significant adjustments to accruals have been recognized during the first three months of 2020 or 2019, due

to conditions that existed at December 31, 2019, or 2018, respectively. Additionally, there have been no changes to the application of significant accounting estimates, and no impairment losses have been recognized during the first three months

The unaudited condensed consolidated interim financial statements do not include all disclosures for critical accounting

estimates and judgments that are required in the annual consolidated financial statements and should be read in conjunction with the Company s audited consolidated financial statements as of and for the year ended December 31, 2019.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

Note 4 Significant Events in the Reporting Period

As reported in the Company s Annual Report on Form 20-F, as of and for the year ended December 31, 2019, a novel strain of

coronavirus, ( COVID-19 ), was reported to have surfaced in Wuhan, China, in December 2019. Since then, COVID-19 has spread around the world into a pandemic,

including into countries, where we are operating from, where we have planned or have ongoing clinical trials, and where we rely on third parties to manufacture preclinical and clinical supplies, as well as commercial supply.

The COVID-19 pandemic may negatively impact our business in many ways. There is a potential evolving

impact on the conduct of clinical trials of our product candidates, and any challenges which may arise, may lead to difficulties in meeting protocol-specified procedures. In addition, while we rely on third parties to manufacture preclinical and

clinical supplies and materials, we can potentially experience delays in providing sufficient supplies according to our planned and ongoing clinical trials. Further, if our product candidates are approved, we will need to secure sufficient

manufacturing capacity with our third-party manufacturers to produce the quantities necessary to meet anticipated market demand.

minimize the risk of spread of the COVID-19, we have taken precautionary measures within our organization, including encouraging our employees to work remotely, reducing travel activity, and minimizing face-to-face meetings. As of the reporting date we have not identified significant COVID-19 related disruptions to our business, including clinical trial operations, or

identified any of our third-party manufacturers not able to meet their obligations. In addition, no significant transactions, as a result of COVID-19, have been recognized during the first three months of

However, while the global outbreak of COVID-19 continues to rapidly evolve, the extent to

which COVID-19 impacts our business will depend on the future development, which is highly uncertain and cannot be reliably predicted. Obviously, while COVID-19

continues to impact the world in several aspects, the development is monitored closely by management, including any impact this may have on the Company s financial performance and financial position.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

Revenue has been recognized in the consolidated statements of profit or loss with the following amounts:

Note 6 Segment Information

managed and operated as one business unit. No separate business areas or separate business units have been identified in relation to product candidates or geographical markets. Accordingly, we do not disclose information on business segments or

geographical markets.

Note 7 Warrants and Share-based Payment

Pharma A/S has established warrant programs, equity-settled share-based payment transactions, as an incentive for all its employees, members of its Board of Directors and select external consultants.

Warrants are granted by the Company s Board of Directors in accordance with authorizations given to it by the shareholders of the

Company. As of March 31, 2020, 9,568,987 warrants had been granted, of which 19,580 warrants have been cancelled, 3,271,250 warrants have been exercised, 2,168 warrants have expired without being exercised, and 334,625 warrants have been

forfeited. As of March 31, 2020, the Company s Board of Directors was authorized to grant up to 1,047,325 additional warrants to employees, board members and select consultants without pre-emptive

subscription rights for the shareholders of the Company. Each warrant carries the right to subscribe for one ordinary share of a nominal value of DKK 1. The exercise price is fixed at the fair market value of the Company s ordinary shares at

the time of grant as determined by the Company s Board of Directors. The exercise prices of outstanding warrants under the Company s warrant programs range from 6.48 to 130.96 depending on the grant dates. Vested warrants may

be exercised in two or four annual exercise periods. Apart from exercise prices and exercise periods, the programs are similar.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

The following table specifies the warrant activity during the three months ended March 31, 2020:

Warrant Compensation Costs

Warrant compensation costs are determined with basis in the grant date fair value of the warrants granted and recognized over the vesting

Note 8 Share Capital

The share capital of Ascendis Pharma A/S consists of 47,985,837 outstanding shares at a nominal value of DKK 1, all in the same share class.

Note 9 Subsequent Events

events have occurred after the balance sheet date that would have a significant impact on the results or financial position of the Company.