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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 releases23/09/2022

A rather reassuring H1 22

The H1 22 results came in line with expectations, “as usual”

The group continues with its efforts on Midazolam, Hydrocortisone and Adrenaline

The bioequivalence study for Midazolam should be ready this autumn

After the positive result of the BARDA, we expect more on the commercial front


Fact

Crossject released H1 21 results. Revenues reached €3,374k vs €3,176k, operating result €-6,959k vs €-6,204k, and net result €-5,874k vs €-5,450k. Gross cash at the end of H1 21 amounted to €5.7m vs €9.9m at the end of FY21.


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. In particular, the group’s top line has so far little meaning, as well as the losses posted by the company. That said, the group’s P&L looks roughly as it looked last year over the same period at the profit level, a statement that we are used to making. We view this as rather positive, since it is a sign that operating expenses are under control despite the fact the company is still in a development phase. Operating expenses are up some +10% (mainly due to external charges and salaries) which explains the slightly lower operating results, while the top line has benefited from the agreement with Eaton Pharmaceutical (€O.45m). On the balance sheet side, it is worth noting that shareholders’ funds become positive after the exercise of convertible bonds (€12m) and subscription rights (€2.4m). Gross cash amounted to €5.7m, which may seem a bit low compared to the end of FY21 and is explained by the investments made necessary by the future filing of the group’s products. Still, we believe that further licensing agreements, subsidies or simply bank debt could make it possible for the group not to resort to dilutive instruments. This is not a given though since some €4.2m was burnt in H1, and management can not at this stage rule out it will resort to the market once again to complete its financing.

In operating terms, the group insists on the milestones it has reached during the first half, including the agreement with the BARDA (with a total value of US$155m if all options are exercised) on Midazolam, the development of Zeneo Midazolam and Zeneo Hydrocortisone or the ISO13485 certification obtained in August. Interestingly, the group mentions that negotiations with potential partners have been boosted by the latter as well as by the agreement with the BARDA. Management is confident that the result of the clinical study for Zeneo Midazolam will further support such negotiations.


Impact

All in all, no real surprise in the group’s results. At the same time, we acknowledge that the group’s development is going in the right direction and, after the agreement with the BARDA, we expect more on the commercial side in the short term, not to mention further progress for the group’s products on their way to the market. We will marginally adjust our numbers for FY22 with no major impact on our valuation of the stock.


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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