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Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Things get moving
Target
Upside 196%
Price (€) 3.31
Market Cap (€M) 120
Perf. 1W: -9.81%
Perf. 1M: -15.1%
Perf. 3M: -2.38%
Perf Ytd: 16.8%
10 day relative perf. to stoxx600: -12.8%
20 day relative perf. to stoxx600: -21.7%
Earnings/sales releases29/03/2022

FY21: not very meaningful, as expected

Crossject released an expected set of FY21 results

The industrialisation process of Zeneo is on track

The group’s financing for FY22 seems to be secured

We will adjust our model to account for the latest developments


Fact

Crossject released FY21 results. Revenues reached €6,772k vs €5.73m, operating result €-11,823k vs €-10,672k, and net result €-10,698k vs €-9,844k. Gross cash at the end of FY21 amounted to €10.0m vs €8.2m the year before.


Analysis

As a start, it is worth mentioning, much the same as after each release from the group that, as usual, the numbers are of little relevance since the story of Crossject is based on the future launch of Zeneo combined with the NTEs the group is targeting. In particular, the group’s top line has so far little meaning, as well as the losses posted by the company. That said, and as is also often the case, we note that operating expenses have been kept under control, reaching €18,595k vs €16,403k a year earlier. This had enabled the company to post a net result close to where it landed last year as well, thanks to the higher level of “CIR” (credit on research) which reached €1.8m.

On the operating front, the company indicated that the production of batches concerning Zeneo Hydrocortisone and Zeneo Midazolam has made progress, with a target to ask for a marketing authorisation (“AMM”) by 2023. The same work is in progress, though at an earlier stage, concerning Zeneo Adrenaline, while the group also announced it no longer has ambitions to invest in Zeneo Apomorphine (Parkinson’s disease) to pursue more promising opportunities. As a reminder, the company is also still waiting for the results of a call for tender of Barda (Biomedical Advanced Research and Development Authority), the timing of which is still unknown. As far as FY22 in concerned, the company intends to produce the products needed to apply for marketing authorisations, carry on the bioequivalence study for Zeneo Midazolam and sign new commercial agreements after the one reached with Eton Pharmaceuticals on Zeneo Hydrocortisone. Altogether, the group estimates that the total turnover achievable by its distributors could reach as much as €900m (half of which from the three main applications under development). Assuming a 35-40% share of this turnover for Crossject, this would imply €320-360m in net revenues which is substantially higher than the c.€300m that we expect by…FY28. Lastly, the financing for FY22 should be secured by the gross cash in the company, the research credits, as well as potential licensing revenues, even if other options (capital increase) could be considered.


Impact

We will adjust our model on the back of this release. In particular, we will fine-tune our numbers based on the latest information available concerning the expected market launches of the group’s products.


Updates

26 Sep 22 EPS change
Minor changes after H1 22

23 Sep 22 Earnings/sales releases
A rather reassuring H1 22

29 Mar 22 Earnings/sales releases
FY21: not very meaningful, as expected

17 Dec 21 Financing issue
New financing

24 Sep 21 Earnings/sales releases
H1 21: unsurprising (as usual)

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