H1 21: unsurprising (as usual)

  • The H1 21 results were in line with expectations
  • The group continues its efforts on Midazolam, Hydrocortisone and Adrenaline
  • The bioequivalence study for Midazolam should start before year-end
  • The result of the Barda call for tender is still expected

Crossject released H1 21 results. Revenues reached €3,176k vs €2.86m, operating result €-6,204k vs €-5,632k, and the net result €-5,450k vs €-5,258k. Gross cash at the end of H1 21 amounted to €9.2m vs €8.3m at the end of FY20.

As usual, we recall that the 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 does the losses posted by the company. That said, the group’s P&L looks roughly as it looked last year over the same period at the profit level. This is rather encouraging since expenses have gone up in line with the development of the group’s projects, and mainly due to the increase of production and the licensing agreement with Eton Pharmaceuticals (Hydrocortisone) with a positive c. €450k impact on revenues.

The operating free cash flow reached €-2.9m, here too in line with the usual cash-burn of the company. Even if the level of cash probably does not cover the group’s need over the next one or two years, more licensing agreements are expected. The group also participated in July in the Barda call for tender (Zeneo Midazolam for paediatric use), the results of which are yet to come, with a degree of uncertainty concerning the timeframe (year-end?).

This could, however, be a significant trigger for the group’s visibility and, as a consequence, its share price. Crossject continues to prioritise Midazolam, Hydrocortisone and Adrenaline, particularly focusing its efforts on the US where prices are higher (as a reminder, the group created a subsidiary there last year). As far as Midazolam is concerned, the last batch has been produced and the bioequivalence study should be launched before year-end. For Adrenaline, technical batches were produced and stability tests are ongoing.

All in all, no real surprise in the group’s results and communication. A potential launch on the market is not yet in sight but some progress is being made by the day. Some patience is still required though.

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