AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Things get going
Target
Upside 234%
Price (€) 3.43
Market Cap (€M) 125
Perf. 1W: -19.5%
Perf. 1M: -34.0%
Perf. 3M: -22.0%
Perf Ytd: -31.1%
10 day relative perf. to stoxx600: -16.2%
20 day relative perf. to stoxx600: -35.5%
Earnings/sales releases15/03/2019

Slowly but surely

Fact

Crossject released its FY18 results. Revenues reached €3.52m vs €4.14m, operating result €-11,556k vs €-8,621k, and the net result €-10,711k vs €-7,611k. Net cash at the end of FY18 amounted to €4.82m vs €2.8m a year before.


Analysis

As usual, we recall that 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, and, in particular, that the group’s top-line has so far little meaning, as well as the losses posted by the company. Still, we note that operating costs have gone up (roughly from €13m to €15m, particularly on higher wages and depreciation, which illustrates the ramp-up of production capacities as well as the “structuring” of Crossject ahead of product launches (and accounting for the production incident last autumn, a mold of a Zeneo component having been damaged during the summer). The numbers are nonetheless in line with ours (operating result €-11.8m) except for the (negative) tax level, but no big issue there. In terms of cash flows, no surprises either, with a net cash position up €2m after the financing initiatives carried out in FY18 (convertible bonds in February and July, capital increase in December). With respect to its financing, the group indicates that it is pursuing its strategy of focusing on non-dilutive tools (incentives, loans from local/national public bodies such as the €1.1m one granted in January 2019) which we see as a support for its share price evolution.

Looking forward, Crossject indicated that the calendar for the product filings is unchanged, with Naloxone, Midazolam and Adrenaline as the first candidates in FY20, with some licensing agreements in Europe/the US expected in the current year. Also, Naloxone should benefit from the stronger focus on drugs enabling to fight overdoses in the US, with the potential possibility of buying them over-the-counter. Lastly, the group has obtained the “pharma” status, (“Etablissement Pharmaceutique”), granted by ANSM (Agence Nationale de Sûreté du Médicament) in February. This enables Crossject to certify their production and carry in-house quality controls, which is another milestone for the company on its way to the market.


Impact

We will not materially change our forecasts after the release. This said, products are getting closer to the market, while financing issues are progressively addressed which comforts our positive stance on the stock and its prospects.


Updates

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

24 Dec 18 EPS change
Adjustment in the number of shares

28 Nov 18 Financing issue
A €3.9m capital increase

.