Crossject released H1 16 results. Revenues reached €1.6m vs €1,238k in H1 15 (+29%), the operating result was €-2,279k (vs €-3,765k), and the net result €-2,831k (vs €-3,558k). Net cash at the end of H1 16 amounted to €3.2m (€5.2m).
Numbers as such are not very telling since the story of Crossject is based on the future launch of Zeneo combined with the NTEs the group is targeting (seven at this stage, with no sales before H2 17/H1 18) and the market approvals the group is looking to obtain (see our initiating study dated 25 February 2016). As a quick reminder, Crossject plans to launch Naloxone, Sumatriptan, Midazolam, Apomorphine, Epinephrin, Methotrexate and Hydrocortisone (formerly referred to as « L15 ») which will be delivered though its proprietary device, Zeneo. However, we note that the operating loss is decreasing, mainly on lower R&D expenditures (both due to the developments already achieved on Zeneo and expenses related to regulatory approvals). It is also worth mentioning that the equity-line put in place in H1 with Kepler could enable the company to issue new shares (up to 1.2m shares, 0.23m of which were issued in H1).
On the governance/management side, three new members will join the Management Board: Dr Isabelle Liebschutz (Head of Quality), Olivier Giré (Head of Sales) and Henri de Parseval (Production and Supply Chain) who will strengthen management as product launches become closer.
No changes to our numbers given the fact these are essetially based on future sales, once the first products reach the market. We welcome the strengthening of Crossject’s management team and see it as a sign, if one is needed, that things are going the right way, i.e. that Zeneo should reach the market sooner rather than later. We have so far anticipated a (limited) level of revenues for FY17 (on Methotrexate only) but our valuation and recommendation are of course based on future product launches and ramp-ups which offer considerable upside potential to the share.
