(News Bulletin 247) – The company saw its net loss amount to 11.16 million euros last year while its operating expenses increased by 24%. It says it is confident that it will obtain the financing necessary for the pursuit of its development.

If Crossject won last year a major call for tenders from Barda (Biomedical Advanced Research Development Authority, an office of the Department of Health in the United States), its annual accounts have nevertheless deteriorated.

Crossject is the inventor of the Zeneo needle-free auto-injection system so that the patient can administer doses of a treatment in an emergency situation. The company recorded a marked increase in its operating income, which amounted to 9.7 million euros in 2022, compared to 6.77 million euros in 2021. However, the amount remains lower than the forecast of Invest Securities, which stood at 10.1 million euros.

Most of these products come from capitalized production (ie created by the company for its own operation), at 6.1 million euros. Sales strictly speaking amounted to 954 million euros against 912 million euros.

Increase in charges

At the same time, operating expenses rose sharply, up 24% to 23 million euros. To explain this increase, the company cites in particular “the performance of the various clinical studies and batches on several drugs in the portfolio and the costs inherent in the “ramp-up” [la montée en cadence, NDLR] industry in the broad sense” as well as “the progress of production operations related to the Barda contract”.

Won last June, this contract concerns an initial order for Zeneo Midazolam, the product developed by Crossject to treat epilepsy. The initial amount of this order amounts to 59 million dollars but could increase to 155 million in the event of full exercise of all the options. The French company plans to begin deliveries under this contract from the end of 2023 subject to obtaining emergency use authorization from the Food and Drug Administration (FDA), the American health authority. .

In the end, Crossject’s net loss increased to 11.16 million euros over the whole of 2022 against 10.70 million euros in 2021, and 8.9 million euros expected by Invest Securities.

Price drop

At the end of 2022, the group’s cash position stood at 8 million euros. The company specifies that it has since collected six million euros from a financing of 14 million euros recently granted by several banks and must still collect 3.8 million of which 2 million are conditional on obtaining the FDA emergency use.

“Given the contracts in progress (and in particular the monthly billing to Barda) and the very strong visibility acquired by Crossject over the past few months, the company is confident in its ability to find the means of financing necessary for the continuation of its development”, assured the company.

On the Paris Stock Exchange, these announcements are coolly received by the market, the Crossject action losing 12% around 10:30 a.m.