AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
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Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Some patience still required
Earnings/sales releases10/09/2019

H1 19: no surprise

Fact

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.


Analysis

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.


Impact

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.


Target
Upside 302%
Price (€) 2.58
Market Cap (€M) 65.4
Perf. 1W: -8.67%
Perf. 1M: -19.4%
Perf. 3M: -19.9%
Perf Ytd: -15.8%
10 day relative perf. to stoxx600: -12.5%
20 day relative perf. to stoxx600: -14.5%
Updates

23 Dec 19 Financing issue
Extra-financing to increase visibility

20 Nov 19 Financing issue
A €2.6m non-dilutive issue

10 Sep 19 Earnings/sales releases
H1 19: no surprise

10 Jul 19 Financing issue
Warrants to existing shareholders

19 Jun 19 Latest
A commercial success

18 Apr 19 EPS change
The 2018 bonds fully converted

18 Mar 19 EPS change
No major change post FY18 results

15 Mar 19 Earnings/sales releases
Slowly but surely

04 Feb 19 Financing issue
Some extra non-dilutive financing

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