FY20 unsuprising; waiting for more
FY20 unsuprising; waiting for moreEARNINGS/SALES RELEASES
Crossject released an expected set of FY20 results
The industrialisation process of Zeneo is on track
The group’s financing for FY21 is secured
We will fine-tune our model to account for the latest developments
FACT
Crossject released FY20 results. Revenues reached €5,994k vs €5.73m, operating result €-10,672k vs €-8,643k, and the net result €-9,844k vs €-7,174k. Cash at the end of FY20 amounted to €8.2m vs €7.9m a year before.
ANALYSIS
As usual, we remind that 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. However, we note that the group’s expenses remain under control taking into account that Crossject is still in the development phase, and this is despite the investment (in human resources in particular, with the workforce having increased by 20% in FY20 to 94 employees for an extra charge of c. €1m). On the commercial front, the company should launch the bioequivalence study for Zeneo Midazolam in the current year (with a potential result by year-end), a prerequisite to ask for a marketing authorisation in both Europe and the US. In terms of industrialisation of the company, management claims it is now able to produce as many as 500,000 units a year, with a target to reach 6m over the next two years for a total capex of €7.5m. In FY21, the group intends to produce the quantities of Zeneo necessary to file for marketing authorisations on both sides of the Atlantic, be in a position to answer Barda’s tender offer (with a potential first market launch in H2 22), carry on the bioequivalence study for Zeneo Midazolam and sign new marketing agreements, particularly in the US. In terms of calendar, the group is mainly expecting new commercial agreements and the call for tender from Barda while it remains rather unclear on potential market authorisations, partly disturbed by the pandemic this year, and which will not appear before next year at best.
The gross cash position has remained almost stable (+€0.3m), while management indicates cash needs for the current year to be slightly above last year’s (€14-15m). This should be financed by the bond issued in December (€5.2m see our Latest dated 15 December 2020, paid in April), €3m of public financing part of the €1.5m subsidy granted in February 2021, which could be completed by commercial agreements and/or further public financing. In other words, the gross cash situation enables the group to face its needs for the current year, which is good news.
IMPACT
We will revise our forecasts in the light of these FY20 results. The main change will be that the Zeneo will reach the market at the end of FY22 at the earliest in our new forecasts (vs H2 21 previously), which should moderately reduce our target price, all other things being equal.
Crossject SA is a France-based company that designs and develops medical injection systems. The Company specializes in needle-free, pre-filled, single-use injection systems for intradermal, subcutaneous and intramuscular applications for pharmaceutical companies. Is also has a pipeline and three drugs in the preclinical or clinical phase of research. The Company's products, which are based on well-known injectable drugs (chemicals and biologics), are designed to enhance patients' safety, compliance and comfort. Crossject's first ZENEO SUPERGENERIC product is expected to reach the market in the year 2015. The Company has industrial partnerships with Hirtenberger and Recipharm.
AlphaValue Corporate Services capitalise on the research and credit analysis expertise deployed by AlphaValue with major institutional investors at European level over the past nine years. The proprietary tools and processes enabling AlphaValue Corporate Services to establish a valuation and/or a credit risk assessment are identical to those used by AlphaValue to the benefit of its institutional clients. The only difference is the recognition that a company evaluation cannot be dissociated from the fact that the latter is paying for the service (AlphaValue Corporate Services), as opposed to the investor footing the bill (AlphaValue). AlphaValue’s research tools are characterised by the transparency of the valuation methodologies, their responsiveness to market data and by nine years’ experience of a universe numbering more than 450 European companies. Through its coverage and sector exhaustiveness, AlphaValue ranks alongside the major research houses in Europe and constitutes the only new entrant to the European space in the past decade. This significant presence is reflected in an unrivalled distribution capability via platforms commonly adopted by investors to access research: Factset, Bloomberg, Capital IQ and the numerous websites. AlphaValue is one the largest research contributors to these platforms, to the benefit of AlphaValue Corporate Services issuer clients. The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.