ANNUAL REPORT 2012 - TiGenix

(2) Operating expenses
The operating expenses consist of the following elements :
Cost of sales
Years ended December 31
Thousands of Euro (€) 2012 2011 2010
Employee benefits expenses 363 206 112
Depreciations, amortisations and impairment losses 3 13 8
Other operating costs 540 237 190
Total 905 455 310
Cost of sales includes all costs directly attributable to the production of ChondroCelect, such
as consumables, quality control tests, personnel and fix expenses. The cost of sales reflects the
economic reality of the costs incurred in producing one unit of ChondroCelect. The cost of sales
has increased through the years in accordance with the increase in the number of units sold.
Research and development expenses
Years ended December 31
Thousands of Euro (€) 2012 2011 * 2010 *
Employee benefits expenses 3,398 3,042 3,342
Depreciations, amortisations and impairment losses 3,686 2,388 1,994
Lab fees and other operating expenses 5,866 4,289 4,430
Other expenses 987 875 423
Total 13,936 10,595 10,189
* The 2010 and 2011 consolidated financial statements have been adjusted to reflect the capitalization of the expenses incurred
that were essential to bring the Dutch manufacturing facility into operations.
The research and development expenses mainly relate to expenses of pre-clinical research,
of Phase I, Phase II and Phase III clinical studies, as well as of the manufacturing facilities and
related running costs. Therefore the increase in 2012 is explained by the fact that the full year
expenses related to the products in development by TiGenix SAU are included as well as
the full year amortization of the intellectual property acquired in the context of the business
combination with TiGenix SAU (in line with IFRS 3, only the expense for the period May to
December was included in 2011).
126 TiGenix I annual report 2012