Some extra non-dilutive financing
Some extra non-dilutive financingFINANCING ISSUE
FACT
Crossject announced it had obtained a €1.1m financing from Bpifrance and the Bourgogne-Franche Comté region.
ANALYSIS
The financing is made up of two loans (one relating to R&D and, the second one, interest-free, to support innovation). The total maturity is eight years with the first instalments in three years. The aim is to help/accelerate the ramp-up of the industrial production of Zeneo as well as its future growth. This comes after the capital increase of last December (€3.9m) and the loans are part of the “non-dilutive financings†the group was mentioning at that time, reminding that Crossject had estimated it needs €11m in financing for the next twelve months (to be covered by incentives, tax credit, upfront fees…). The news comes after Crossject had also announced it had obtained the “pharma†status, (“Etablissement Pharmaceutiqueâ€), granted by ANSM (Agence Nationale de Sûreté du Médicament). This enables Crossject to certify its production and carry out in-house quality controls, which is another milestone for the company on its way to the market. The news was (rightly) cheered by the market, with a c.28% jump last week.
IMPACT
No direct impact on our numbers (thus no change to our numbers/valuation), but this is another good piece of news for the company, i.e. another step to secure short-term needs before its products reach the market. As such, the release should be welcomed by the market, even if the big trigger for the share price will remain the first filings of its products, expected in 2020.
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.
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