Meaningless FY19 results and product update

  • FY19 results meaningless as usual
  • Some calendar delay due to the COVID-19 crisis
  • The company on track though for first filings in FY20/21
  • No change to our opinion after the release

Crossject released FY19 results. Revenues reached €5,994k vs €3.52m, operating result €-8,643k vs €-11,556k, and the net result €-7,174k vs €-10,711k. Net cash at the end of FY19 amounted to €7.9m vs €4.8m a year before.

As usual, we recall 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 topline has so far little meaning, as well as the losses posted by the company. That said, the FY19 numbers still show a rather good control of operating expenses (staff as well as purchases) which has enabled the group to contain operating losses (actually down €3m), helped by higher capitalised production. In terms of cash position, the group has benefited from a number of sources (upfront from Desitin, subscription rights, convertible bonds…) which has enabled it to close the year with a very decent cash position, offering some visibility over the current year.

As far as the COVID-19 outbreak is concerned, the group has taken necessary steps (home office, production stopped), although it is not too impacted since the industrial production has of course not started yet. However, Crossject also indicated that the calendar for the NTE filings will be impacted (without quantifying such a delay). We understand that little will happen on that front before year-end 20/beginning of FY21. By product, the focus is still on Midazolam (particularly in the US) and Adrenalin for which the group has bought back the rights from its former partner (which will include a future single-digit royalty).

All in all, full-year results are not meaningful but the company seems on track (barring unexpected news on the COVID-19 front) to meet its targets in terms of marketing authorisation in a foreseeable future. The financial situation looks OK for the time being, with the prospects for some upfront payments that could hopefully avoid new issues.

We will not change our numbers after the release (other than adjusting FY19 numbers), since forecasts are based on future product launches and, as such, are not impacted by short-term financial results.

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