Crossject released its H1 19 results. Revenues reached €1,844k (vs €2,840k), operating result €-5,873k (vs €-5,337k), and the net result €4,953k (vs €-4,744k). Net cash at the end of H1 19 was €1.5m (vs €0.8m) and €4.82m at the end of FY18.
As always, results as such are not very important since no product has reached the market yet, except for the cash-burn (excluding new financing) which has reached €4.3m, a “decent” number. Turnover reached €0.5m, a direct consequence of the agreement with German Desitin on the licensing, distribution and promotion, until 10 years after commercial launch, of Zeneo Midazolam in Germany (see our paper dated 18 June 2019). The company also indicated that the calendar for product filings is unchanged, with Naloxone, Midazolam and Adrenaline as the first candidates in FY20. On the P&L front, it is worth mentioning that external charges were well under control (-21.7% to €3.2m) due to the decrease in external staffing and a tight control of inventories. As a result, and despite the decrease in total revenues due to a lower production level, the operating result was almost flat year-on-year, “only” down from €-5.3m to €-5.7m. In terms of financing, the group asserts it is expecting an additional €4m cash-inflow in the next 12 months (from the Piave programme, tax credits or Desitin’s milestones) while it is working on other options, with a priority put on non-dilutive ones. The potential signature of new commercial agreements could ease things, but it is of course impossible to bet on it and even harder to guess what the timing of such a prospect could be.
No big change to our numbers and valuation to be expected after this release. The question mark on financing remains, which is no surprise and certainly caps the share price performance before more is known on potential commercial agreements. This does not change our positive view on the group’s progress on its way to reach the market, with a very significant upside potential for the share price once the first launches actually take place.
