Edison Issues Initiation on Crossject

Jun 13, 2016, 11:58 ET from Edison Investment Research

LONDON, June 13, 2016 /PRNewswire/ --

Crossject has developed a deep pipeline of products that are based on its proprietary needle-free injection system, ZENEO, across a variety of indications. The benefits of ZENEO include no need for needles, as well as a simple and quick (~1/10th of a second) delivery of the drug. Its first commercial product, ZENEO Methotrexate for rheumatoid arthritis, should reach the market in 2017. We value the company at €11.96 per share, which is based on the value of four of its nearer-term disclosed programmes.

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Using a risk-adjusted NPV method valuing Crossject's disclosed nearer-term products (methotrexate, sumatriptan, adrenaline and midazolam), we value the company at €81.1m or €11.96 per basic share. As of 2015 year-end, the company had €5.2m in cash. It expects to receive an additional €3.1m in grants in 2016 and has also recently announced an equity line, which could provide up to ~€10m. Between now and projected profitability in 2018, we forecast a total funding need of €15m for all projects. This would be mitigated in part by additional upfront payments from partners, as well as milestone payments on product approvals.

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