The Audit Committee is established with the purpose of assisting the Board of Directors with the monitoring of the financial reporting process, the statutory audit of the Company’s financial reports (including the process for presentation of accounts), internal control and risk management systems and the Company’s whistleblowing procedures and complaints. The Audit Committee shall also assess the external auditor’s independence and provision of services and the procedure for the election of the external auditor, and annually consider whether there is a need for an internal audit and if so, submit a recommendation to the Board of Directors in this respect including recommendations regarding the appointment, employment and dismissal of the chairman of any internal audit and the budget of the internal audit. The Audit Committee is expected to comply with the Danish Corporate Governance Recommendations Sections 3.4.2 and 3.4.3.

The specific assignments of the Audit Committee are:

·         The financial reporting processes

o    To ensure that the financial information presented in the Pharma Equity Group’s annual and interim financial reports provides the basis and correctness of financial information, which can make basis for existing and future shareholders’ decision-making, regarding investment in the current and future companies in the portfolio.

o    To ensure a high degree of efficiency in the financial reporting processes.

o    To assess and if necessary, investigate Management’s actions and assessments for the annual and interim financial reporting before they are submitted to the Board of Directors.

o    Review assessment and explanation of the central conclusions in the annual financial reports, interim reports and forecast, including drafts of the board’s report on the same reports prior to the board’s review.

·         The external audits

o    To make a critical assessment of the independence, objectivity, and competence of the external auditors in relation to, among others, audit and supply of additional services to the Company.

o    Review and assess the draft of the audit protocol with the external auditors.

o    Review of the external auditors’ audit plan and review of the financial departments’ plan for finalizing the financial reports.

o    To submit recommendations to the Board of Directors for its recommendation to the general meeting on the appointment of external auditors.

·         Investment and financing policies

o    Control and monitoring of the investment- and financing policies and future strategies, including the degree of debt financing and the underlying factors such as interest rate risk and refinancing risk as well as assessment of the financial reserves.

·         The internal control and risk management systems

• • Continuous monitoring of the company’s internal control and risk management systems and procedures.