Crossject

Crossject released H1 23 results. Revenues reached €7,926k vs €3,374k, operating result €-6,535k vs €-6,959k, and net result €-4,462k vs €-5,874k. Gross cash at the end of H1 23 amounted to €5.4m vs €5.7m a year ago and €8m at the end of FY23.

As we regularly write, the numbers are of little relevance at this stage since the story of Crossject is based on the future launch of Zeneo. That said, we see as good news that the operating result is about the same as year. In short, the revenues are covering rising costs “as much” as last year, despite a strong increase in depreciation (+2.3m).

The cash burn looks reasonably contained even if net debt is not released at this stage (it includes a €1.2m tax receivable due to a delay in VAT reimbursement as well as an increase in inventories), so not bad news on that front (at least before we have more details) and the liquidity is preserved. Note the group has cashed in €8m from the €14m non-dilutive financing (bank debt). Note also that the group will publish a full set of accounts before the end of October, on which we will comment of course, and that will give even better visibility on Crossject’s financing going forward.

The successful audits in Europe and the US are also supporting the case. The former confirms that the group is getting nearer a clearance from US health authorities concerning the deal with BARDA (Biomedical Advanced Research and Development Authority). H1 23 revenues include US$3.2m as part of this cooperation (note the contract could be worth US$155m in revenues in total for the French group). Also, see our Latest dated 20 June 2022 concerning the cooperation with BARDA.

More recently (July), we remind that the company announced the signing of an Australia & New Zealand commercial agreement for ZENEO® Midazolam (treatment of epileptic crisis) with AFT Pharmaceuticals, to cover this region of the world (i.e. a total population of around 30m). AFT is a listed New Zealand Pharma with sales of about NZS130m (c. €65m), addressing Australasia. AFT’s product portfolio comprises both proprietary and in-licensed products (skin care, supplements, allergy).

All in all, this set of results looks ok, even if we lack the details on the accounts at this stage (to be released before the end of October; only a short simplified P&L has been made public so far). We will of course revert to these numbers for H1 23 once the full set of results is released, again before the end of October. Expect no change to our numbers at this stage.