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Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Things get going
Target
Upside 205%
Price (€) 3.79
Market Cap (€M) 138
Perf. 1W: -9.11%
Perf. 1M: -28.6%
Perf. 3M: -12.4%
Perf Ytd: -23.7%
10 day relative perf. to stoxx600: -8.00%
20 day relative perf. to stoxx600: -30.3%
Latest15/10/2019

Cooperation agreement with the US Department of Defense

Fact

Crossject announced yesterday it had signed a Cooperative Research and Development Agreement (CRADA) with the US Department of Defense.


Analysis

This cooperation agreement consists, in our understanding, in developing Zeneo Midazolam (and potentially other speciality products) to be used in the case of chemical/bacteriological attacks on the battlefield or elsewhere. This is, of course, very positive news for Crossject, which indicated an audit had been carried out in July in Dijon. Not only could the agreement give Crossject new opportunities on the US market (with the Federal state as a client), but it certainly strengthens its current position and increases the likelihood of positive news on the FDA front, with filings expected for Naloxone, Midazolam and Adrenaline in FY20 and commercial launches in FY21. This also comes after the first commercial agreement signed last summer with German Desitin on Midazolam (see our Latest dated 19 June), which has already contributed to validate the group’s technology and support its prospects. As a reminder, the Department of Defense and the FDA announced in late 2018 that they intended to formalise collaboration to advance medical products in support of American military personnel. In short, a success in Crossject’s collaboration with the DoD could only lead to an increased probability for the FDA to approve the group’s products.


Impact

There will be no short-term impact on our numbers, given the lack of details on the potential quantitative consequences of the announcement. That said, such a release can only support Crossject’s prospects and management’s credibility. Our target price, based on the success of the group’s technology, leaves ample room for a share price re-rating once products actually reach the market. Therefore, the share price reaction is not only justified, but also not as strong as one may have believed.


Updates

31 Mar 21 Earnings/sales releases
FY20 unsuprising; waiting for more

15 Dec 20 Financing issue
A double bond issue

21 Sep 20 Earnings/sales releases
Update on the group's business

29 Mar 20 Earnings/sales releases
Meaningless FY19 results and product update

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

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