LEASES

3 Months Ended

Mar. 31, 2026

The Company as a lessee

The Company has leases for office, research laboratory and manufacturing facilities, equipment, vehicles, and land. The terms of the leases vary, although most generally have lease terms between 3 and 29 years. Lump sum payments were made upfront to acquire the leasehold land from the owners with lease periods of 50 years, and no ongoing payments will be made under the terms of these leasehold land. Leases with terms of 12 months or less are expensed as incurred. Collaboration assets represent the Company’s share of assets leased to the collaboration from Janssen Biotech, Inc., a Johnson & Johnson company ("Janssen"), which purchased the assets on behalf of the collaboration, in connection with our collaboration and license agreement (the "Janssen Agreement"). Collaboration assets under construction that will be leased to the collaboration from Janssen when placed into service are classified as collaboration prepaid leases on the consolidated financial statements.

(a)Right-of-use assets

The carrying amounts of the Company’s right-of-use assets and the movements for the three months ended March 31, 2026 are as follows:


(Dollars in millions)	2026
Right-of-use assets at January 1, 2026	$	285.2
Additions	62.8


Exchange realignment	(3.7)
Depreciation of right-of-use assets	(13.2)
Right-of-use assets at March 31, 2026	$	331.1

(b)Lease liabilities

At the commencement date of a lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The balance of the Company’s lease liabilities and the movements for the three months ended March 31, 2026 are as follows:


(Dollars in millions)	2026
Carrying amount at January 1, 2026	$	94.6
Additions	30.7
Accretion of interest recognized during the period	0.9
Payments	(2.3)
Exchange realignment	(0.6)
Carrying amount at March 31, 2026	$	123.3
Analyzed into:
Current portion	$	11.2
Non-current portion	112.1
Carrying amount at March 31, 2026	$	123.3

The Company has a lease that commenced in February 2026, with Janssen located in Raritan, New Jersey. The Company expects to receive 50% of the future lease payments from Janssen from profit sharing under the Janssen Agreement. The Company recognizes the full lease liability of approximately $30.6 million, rather than its share because the Company has the primary responsibility for making the lease payments. A finance sublease receivable of approximately $15.3 million is subsequently recognized when the related right-of-use asset is subleased to the collaboration. The total sublease receivable of $15.3 million has been classified in prepayments, other receivables and other assets of $1.8 million, and other non-current assets of $13.5 million.