Crossject released H1 20 results. Revenues reached €2,086k (vs €1,844k), operating result €-5,632k (vs €-5,873k), and net result €-5,258k (vs €-4,953k). Net cash at the end of H1 20 was €-1.3m (vs €1.5m) and €1.8m at the end of FY19.

As always, the results as such are surprise-free and not very important since no product has reached the market yet, except for the cash-burn (ex new financing) which was limited to €4.6m, a “decent” number.

Compared to H1 19, no turnover was achieved (keeping in mind that last year saw turnover reaching €0.5m, after the agreement with German Desitin on the licensing, distribution and promotion, until 10 years after commercial launch, of Zeneo Midazolam in Germany). The company also indicated that the calendar for the product filings is unclear, given the uncertainties having emerged due to the pandemic (with Midazolam and Adrenaline still as the first candidates in our understanding).

However, the production of batches has resumed in May, which is good news for the group. On the P&L front, it is worth mentioning that external charges were well under control (-16% to €2.6m) due to the decrease in external staffing and a tight control of inventories.

As a result, and despite the increase in in-house staff (+16 to 88, mainly in production and technical development), the operating result was almost flat year-on-year, “only” down from €-5.3m to €-5.9m. In terms of financing, the group asserts it is expecting the signature of licences with upfront fees as well as further undetailed incentives, also reminding that the company is still working on long-term options, with a priority put on non-dilutive ones.

The group also indicates that its US subsidiary is now actively promoting partnerships and increasing the group’s presence with health institutions.

No big change to our numbers or valuation to be expected after this release. Our valuation is, of course, based on the various product launches to take place in the years to come and not on current numbers.

Any change can therefore only stem from news/facts on that front. Although the exact timing of filings (and subsequent launches) is unknown, we remain confident and acknowledge the progress the company is making to reach its goals.

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