CYRX - Earnings call transcript Q4 2017

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Operator

Greetings and welcome to Cryoport, Inc. Fourth Quarter Calendar 2017 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

conference recorded. this reminder, a is being As I to your like to conference over turn the host, would now Todd Fromer. Please go ahead.

Todd Fromer

information today, and call statements. statements management's statements. anticipate occurring Before management that These or developments our forward-looking begin I the not our expect to events, and currently like team. beliefs we or we remind operating this available performance, conference on statements future contains are All forward-looking in on based that certain to assumptions that address would everyone are forward-looking

Our management forward-looking statements as reasonable, are made. team believes these and when

you on otherwise, We revise except result statements whether because of statements However, or to not place of not only law. date any forward-looking new the should obligation undue or do any such as update a speak events, statements reliance as as undertake forward-looking future made. by information, when required any such publicly

now Chief filed Jerrell XX-K floor to Report Mr. on the would and of other and Exchange turn yours. Commission described to the to Annual Form cause the from and and statements elsewhere These forward-looking Officer over risks to, and uncertainties Shelton, include, certain from which file like risks addition, experiences and historical Item our to our with Exchange could that expectations Cryoport. developments with I and is not in Risk Commission. our Securities uncertainties we XA and are or In those those limited call reports, in time-to-time are in present Executive Factors Jerry, projections. events, results, the differ subject Securities but actual described materially

Jerrell Shelton

Later, results joining will our our comments gentlemen. With Officer, and Mark his for Stefanovich will Chief us Stefanovich. Officer, today. Mr. during is and this Thank you, me this our call, Todd. activities; Sawicki Good ladies explain and with provide Financial Robert Dr. our financial Sawicki; We you Dr. on Mr. Commercial commercial afternoon Chief appreciate XXXX. afternoon you

of and Let our saying the goals trajectory. stage our next very was year achieved XXXX by growth start a good entered for our me many company. We of

the Generation to Some strength foundation now temperature-controlled by the our Yescarta feature of that and future solid and and commercial logistics Novartis. excellent technologies. our internal to agreements attention most Next some would Wired secured visit approved There Magazine yesterday, an world's and the article. article new significantly, to two growth our established you long-term support Pharma advanced achievements revenue this XX Of biopharma profitability. to as logistics, first upgrading website getting our our ran Therapies" leadership is company encourage Cancer our entitled in on our the Delivering personnel, for our marketplace, position, trials, notable the clinical a which operating doubt Company year milestones Cryoport Kymriah of plans, access systems, several of announcing highlights cell to Gilead's the I we're link FDA leader These and position "Inside a included our in CAR-T global throughout and Kite by securing bench' therapies had adding cemented

of introduction our Cryoport CX Monitoring of In competencies. the to advanced System, including are upgrading II most temperature-controlled is shippers. turning and our range. supports SmartPak some the advancing to powered temperature and our technologies in X our the by This with Cryoport transportation management our temperature-controlled internal one innovation, think to the are in require we we to is infrastructure operating with to of people important Now with our it the invest solutions expanded further within out autologous mind, expansion animal biopharma. Logistics of XXXX, of most company's in tool this certified our family our of medicine, Condition continue market-leading the we technologies degree in our life Cryoport commitment are end-to-end front-end example of services and invest health, systems, positioned Express ensure our which to who reproductive of that platform, to philosophy, offering and Celsius markets Cryoport for core CX sciences standing solutions our X the is building shippers. services in our Cryoport's and Express at industry we support therapies Cryoport's the just

located we stated the as global cell care of of of by regenerative growing Novartis our example clinical that allogeneic certified eligible for announced of course, support the approvals in ramp sepsis. to our construction today Of XX to new enough and and the In in Yescarta. United of current in the other treat our the state-of-the-art all States. Yescarta patients centers Gilead they half States, will is of the growing Both demand support anticipated and trials and -- points had It in market which recently markets they demand qualified therapy rigorously with Europe during of for have two first the to current year. is Global one beginning centers, therapy fastest these as support of the up Kymriah well recently stem are support European that United Netherlands. is Union for market and Eastern the scheduled our per of One the X,XXX have centers mid-year our Cryoport order will XXXX. new forecast in clients they Gilead treatment underway scheduled open approximately Logistics

forefront company remains a As the investment in continuing of result development, our innovation. and research of our at

unrivaled new our trials brining probably to or to the to in our list, continuing XXX as new this build growing XXXX, regenerative strength to and added supported. technology, are customer we biopharma references growing the XX strategy the net to quarter with in delivers. client The offer recognize collaboration quality Cryoport such and company markets our We industry of addition and other our Kymriah the life as a is dedicated programs temperature-controlled our competitive evidenced with advantage logistics the expertise, clinical sciences services the and/or can sciences and to us by continue no of McKesson which medicine total strength technology testimony the reputation fourth We achieved. life can that in currently we have commercial programs Yescarta, of personnel, say dominant that serving experience, along the

course of our teams. and the our Over of administrative, as to bench' of the logistics, competencies substantially added upgraded management, service XXXX, we into technical, strength we commercial, personnel,

XXXX, key During our functions ability to serve effectiveness surety. continue and to vital introduced to with our clients operating we

essential to regenerative Logistic therapies. component critical biopharma companies develop these Solutions biopharma be logistics such XXXX, of or to to Cryoport their into therapies having CAR-T consider regenerative during XX race processes new cell-based trials B-cell, to integrated antibody, their our stem we cell Clearly the now therapies. As we secured clinical an as our new and and solution cell distribution clients further collection added mass allogeneic in

As XXX supports well new the just I a in programs. up ago. trials a regenerative increase existing clinical space, stated This was year Cryoport earlier, their expanding now as clients from clients XXX by medicine as total of trials driven

candidates progress reach the for trials through our have Novartis growth therapy ultimately we represent client's as commercialization. and revenue embedded successful seen biopharma our the company, these major clinical phases, Gilead, and As

five on Agency to As are projected European clients combined anticipated of seven our biologic and filings. now filings of that number additional therapies our think is based reports EMA anticipated to BLA XXXX; the number increasing current public during supporting number a accelerated States from United and Previously, license result two we Medicine we of applications we and four therapies.

industry With these Cryoport's position expect logistical grow, strengthen, both regenerative we and near opportunities, medicine and the as for we as to the leading long-term leverage opportunities. accelerate, backbone

experienced we the central diversified market consisting regenerative are the with development we therapeutic cutting of XX% total credentials to area for it have therapies. share XX% the more. portfolio edge revenue therapy temperature-controlled We for of In in continue market our with diseases, a Biopharma client logistics of the and encompassing in areas in XXXX. range strong including nervous system, to our increased and revenue quarter developed of infectious this, pre-clinical to hematology, fourth XXXX, that oncology, immunology, wide our very momentum grow of bringing of revenue cardiovascular, indisputable regenerative the XXXX. continuing growth clinical Due

most from EMA support products. logistics temperature-controlled for commercial FDA We agreements revenue expect approved and come significant growth to our

supporting As I mentioned Kite's, earlier, Yescarta, long-term agreements Novartis signed Gilead and since we Kymriah. logistics announced commercial that we

Our market. report market-leading the these to our further first-to-market support agreements high groundbreaking entrenches profile in position reputation immunotherapies and biopharma

of to billion As of us Regenerative to $X.X contracts entering position full to commercialization, and We logistics and support start to they're new and support, assisting further save This many be logistics of commercialized ramped up services accelerated and Specialty strategic cold Health commercialization, a Cryoport, to you during regenerative therapies, revenue pertains several enable Both new drive recognize that of XXXX these development amplify To according expected growing points lives, on collaboration happen. focused development McKesson wave reach delivery complex the to allow regenerative these our in educational idea ecosystem chain of collaboration crucial therapies increase The the and authorizations, the regenerative who XX% will Medicine, signing think, and last support leadership growth Yescarta was extend to new the to of end-to-end emerging on-boarding, these miracles with in $X.X of provide treatment expected year-over-year. support the promise Cryoport's we services through with is patient will for reach. significant give prior for care. gene Alliance cell XXXX, programs. an Kymriah an compared years. to expertise therapies relationship and and underscores latest for for patient access therapies therapies regenerative McKesson's as to companies our over announced raised patients are next at to the patients a the week and billion the

well and in In Now markets the worldwide with XXXX, there two revenue XXXX. including Health combating is medicine, we as our solutions, solutions driving also and turning technologically XXX these Animal reproductive in medicine demand million growth States. with advanced first-in-class technological In drove fertility logistics infertility our around reputation effect, relationships reproductive the revenue an Subsequently, XXXX, continued important cases of world during reproductive increasing advances and In revenue significant work concluded Vetstem, such an growth. concluded United in Animal than excellent managing market. for fertility. especially a Health Ingelheim. Health XX% Animal clinics $X.X our as number the for annualized plan market, Boehringer are We increasing XX% or in medicine, $X.X more as with of enjoy and established to our million XXXX revenue Zoetis, names include growth and to

unmet sales our and have as noticed efforts the CryoStork a our might meet we of markets of this solutions branded to we're that that and reproductive premium our consistently medicine quality You expand Animal and Health marketing XXXX. and to recently to CryoStork largely logistics Both revenue as need we matter sources throughout directing Solutions plan Services for cryogenic in growing priority; growing market. are IVF

details Sawicki, further market. of Now, provide Commercial Chief on will our the Dr. particulars Mark Officer, our Mark?

Mark Sawicki

comments Jerry. of revenues, partners and focused with, and they and markets: our overall fit biopharma, Cryoport's have to our year. well that provided on with detail more activities It's all fact on the in goals occasion and objective in space, is within primarily like I overview drive regenerative surrounding more of call view will now indispensable fiscal has biopharma engagement support an you, the to to XX% announcements, market making would recent My of impact apply as a within than the Cryoport developments to developmental of straight Animal strategy how to provide Jerry therapy space. be Due how start Health, revenues encompass my our in objectives. the these I focusing Health and speak medicine. and strategies into our you the Animal current a as business three on of Thank to business, current of today. reproductive overview for a including the pleasure the to this our short they to you To our companies update support our markets appraise clients the

seven in One, materials As mentioned the animal key of other, to stem market The the transport companion at a and and by annual food vaccines supports reproductive previously, movement two materials grow and healthcare treatments. of trial clinical in anticipated animal therapies, the of years, rate cell space. Cryoport key core companion to compound needs vaccines the for within for stock; both next the our X.X% growth primarily business. is which driven over are and

resulted have to its last the an quarter to client attributed space compared same within initiation increase vaccine within the be the Animal awareness This year. Cryoport a in in space. in of efforts market of the in the positioning Health can quarter Our this the and revenue fourth from and XX% relationship new space, improving

Cryoport additional capture the recently the CryoStork unique Monitoring by the solution, annual the launched SmartPak million of within the medicine, which $XXX Within demand within its increasing most parents, in incorporating billion, market service frozen the II CryoStork shipments. CryoStork our Cryoport's service intended reliable compound market. a Management offering at services Logistics its at for growth reproductive transfer and their offering launched offering projected share providing reproductive of market, embryo of platform support was moving growing is System, is currently materials Condition to Cryoport has goals rate. estimated with XX.X% global support in $X.X a one IVF and

the the the advantage space, of to last Turning Moreover, four BLA/EMA years capturing a phases focused our to two programs clinical XX XXX our into two the within potential filings supported an months, from mover been Kymriah Pharma estimate additional supporting related commercial XX distribution increasing the new Yescarta. attention next and five has on including previous anticipate relationships we seven over in clinical chain cold Cryoport to Novartis's maintaining Gilead's of first regenerative led accelerated strategy Phase the clinical to medicine increase Kite to Act. of goal trial support filers established filings. designation biopharma and Cares This XXst with Therapy therapies, regenerative cellular of the by in commercialization. of III three and therapy number explained RMAT a be throughout Century by the leveraging Medicine an Advanced within therapy, This has programs these increase the Regenerative their or can Cryoport space, the

CAR-T new active INDs designations fact, active related that investigational it XXX INDs FDA granted. they've total regenerative February as of September, cell in been applications RMAT of drug XX that disclosed reported the And to been In to already XX XXth, or related has therapies. had including therapies, a have

As with Management their Condition management, complexity shipments. end, their more Monitoring our as and commercial clients' and that these provides to see System Cryoport Cryoport continue CX been platform more of positive, X platform, in increases. within its in supporting becoming of to entrenched recently X processes Cryoport has multiple leverage product our in to the support clinical solution the II and our the products offering. we Celsius Logistics Receptivity This launched the To companies opportunity SmartPak inbound support adopting degree very clinical pipelines. clients

for others Finally, as Cryoport Cryoport regenerative as This the collaborator that the offering as newest end-to-end also high been inherent temperature-controlled engage recent actively products Cryoport complex well partners product well temperature-controlled by not and their are we value McKesson integrating provides potential into provide of integrate developing, opportunity with McKesson, solutions our support, a actively require a Solutions understand as logistics services which to space, issued for standardize access, only press and indicated clients touch needs engaging as patient within and differentiators medicine platform. release to our support support, product our and the in logistics. but unified has relationship

turn Jerry? to Now, I Jerry. the will call back

Jerrell Shelton

Mark. you, Thank

Now, report you XXXX. Robert year financial give a will detailed for fiscal our Robert? Stefanovich, our CFO,

Robert Stefanovich

was review million quarter then some the of for provide XXXX, an to compared to the XX-months or will fiscal XX.X% the reported December afternoon XXXX. results turn year Jerry. for million million, XXXX, our for I year-ended revenue Thank you, $X.X comments, increase $XX back Good Jerry. everyone. as and Net call fourth $X.X XX, additional

leading expanding the to of clients overall market solutions, in current Mark base. the clients the driven added and be the increase revenue future from biopharma Revenue our biopharma XX behind the year complemented by number frequency by during year XXXX, driver the our by growth. and for new further in for market revenue biopharma the continues prior increased utilizing client over growth. company's million mentioned, platform We our XX.X% growth to Jerry As $X.X an

which the impacted our market driven in revenue client client U.S. Revenue given in to market XXXX medical restriction regulation the year. are certain This our increase CryoStork of in by programs by of growth countries. markets by and launches. the primarily and new As and have the campaign, continues by changing be considered medicine marketing clients' partially for I've clinical and that and in fueled XX.X% retention XX.X% offset of decline relationship before, to increased international critical commercial reproductive tourism our by XX.X% to and offering $X.X to a compared strong we a was mentioned million solutions prior reproductive

target economies Operating as the for million XX.X% business for by current to and the of $XX.X or $XX.X for scale. While Health the for Animal million benefit increase of This XX.X% compared XXXX, million representing XXXX. our grow of we to is reflecting $X XXXX revenue from for XX.X% percentage XX%, points expenses XXXX to as or $X growth clients growth increased fees of This continuing million to our Gross and the efforts was number in to over and as stock-based year. of salaries from margin increase drive increase for expense. and towards social reflects $X.X margin non-cash employees or market an is related million base. and prior compensation our X.X new and XX.X% well compared an employee the client due costs, XXXX, as our primarily was addition a recruiting improvement $X.X million

development business team, as program support expertise brought product position. earlier, company in the well key ranges as our engineering. leadership our into mentioned business expected secure and management, This growth our traditional and to Jerry As hires we from operations,

filings XXXX, we're commercially and it clinical the place that we expected BLA leverage With our have organizational unique in clients therapies position. talent is trials in and solely launched, supporting, two the and expertise critical in additional to support already increase our

In the improve Cryoport features strive of our addition, we and expand Solutions. to continue to Express

the directed technology-based Our facilitating and reliable, solutions. developments safe, innovative and science are efficient through of towards commodities life logistics

destination. in year significant of System, progress Condition reclaiming and ended aspects Cryoportal delivery firmware we of the shipped affect to During that key intended Monitoring upgraded We commodities the the the SmartPak XX, the II our of could platform. and developing December software made XXXX, the quality next-generation its attracts Management our of Logistics

or per new requests clients the temperature-controlled compared or for continue compared negative also additional our XX.X% share was to $X.XX response to $X.X Net leadership design accessories We from was $X.X our per stockholders $X.X solutions and negative maintain net position to XXXX million validate $XX.X $X.XX and to million in to for and year-ended to packaging and XXXX, for attributable primary loss XXXX. logistics. secondary share. a EBITDA loss a reduction XX, December in a Adjusted of of million a million common

Now our to quarterly moving results.

increased well quarter a of the of where quarter, to as the to XX, base. internationally, the as offset prior the three-months was For or quarter. year growth was existing net in within new quarter prior revenue revenues Revenue year primarily and in XX.X% million by the XX was clients the $X.X quarter million XXXX. for decreased as decrease increased an $X.X ended three-months reflects revenues of XX% the $XXX,XXX XX.X%. success market This U.S. by ended prior This the medicine $X.X fourth December $X.X for revenue XX.X% increase over due compared by market December biopharma the $X.X our million. the X.X% client reproductive partially in our during for to growth market decrease This to over to million year million from driven XXXX, growth XX, by

December business year economies $XXX,XXX same % a new three-months year, $X.X prior clients. This the Health XX.X% primarily Our revenue the due Operating expenses compared or a to for by for or primarily $X $XXX,XXX margin multinational XX.X% and to existing was as by the the coupled margin prior by quarter. from move to to percentage XX.X the increased for Animal period the December bank quarter XX, in due XXXX, of adjustments. is to volume the to or scale compared million by XXXX, X cell in three the pricing in increase increased client compared the points and XX, months over growth ended million XX.X% year. from of prior increase the Gross for gross ended for

for in As equivalents compared repaired Adjusted year common in remarks completed relatively December notes XX, XX, $X.X fees last stock an from related proceeds XX-month increase the plans XX, expense. XXXX, my XXXX. period year-end, and to a number Subsequent this stock-based allowing was of gross for for full our execute XX, We expense December loss expense $X.X million and quarter with strong resulting XXXX. an XXXX, in $X.X free, in and for compared are the fiscal to increase March $X.X debt $XX,XXX net $X.X cash in outstanding stockholders bolstering due a I prior from offer, cash offering or the further a cash EBITDA in costs, proceeds of balance per the the for of received We compared non-cash cash XXXX, the $X.X of well position prior negative and resulting that our XXXX. share in as year to share per in $X.X or $X.XX to December mentioned associated million and proceeds million Net during December tender three-months a of interest for XXXX. promissory million XX, million of December year, is of equivalents, $X.X Having ended includes ended million increase in reporting and a exercise to our million public off fiscal which on in period of the for repaid the for as the interest and us was cash the options were the quarter also warrant year. the primarily XXXX, to million employees XXXX, paid ended three-months we December cash negative compensation same recruiting ended flat to million warrants, indebtedness of XX, no $XX.X of XX, quarter. as $X.XX XXXX. of April fourth million $XX quarter against was Net attributable underwritten salaries

SEC ended XX-months We XXXX, the and December this periods three-months the will file XX, Thursday, our X. for Form XX-K March with

Now I the to Jerry. would like turn to Jerry? call back

Jerrell Shelton

would Thank you, we Robert. like Operator, open phone for to the questions. now lines

Operator

this At be question-and-answer session. conducting [Operator will time, we Instructions]. a

with Our Len with proceed StockDoc Partners. Yaffe first question Please is with your question.

Len Yaffe

It is Celgene, for were Magazine I a you you, know just awaiting could included have they you've J&J, where one that Gilead Weird clients is in and was comment quote Bluebird. which the they you shipments discussed, if article wondering there Novartis that

percent slight could despite from I that mention? Thank revenues. gross you was sequentially four I just XXX those uptick what those declined my margin And that relationships I companies gross with other wondering Novartis, business latter you there with profit then on Rob expect that we basis if you of so if for that the a either such and margin you've just could know and any points choose about are the discuss or if to special Gilead? comes in discuss And factors And biopharma profit you. of was any any as for based wondering that question should is

Jerrell Shelton

you thank questions. those Len, for

Robert then and answer your want first the answer, question. one after You have that margin Stefanovich, gross questions to to two can to Mark there, direct and Sawicki, I

Mark? So

Mark Sawicki

Len. Yes, doing? How thanks you are Jerry. Hi

Len Yaffe

you. Fine. Thank

Mark Sawicki

we now, trial noticed, and we right entities for programs with that time, XX net absolutely article. we to do to in that to point this have say in XX have relationships new is biopharma Yes, obviously of safe speculate mentioned of those extent were up of starts. that it's have think, see XXX to at the clinical been I the going out related over key I relationships standpoint new can't as but the you clinical program with volume actually that quarter, mean programs I those all as And of clinical of most support.

that So we added that for had the four XX dropped and quarter.

Robert Stefanovich

this is Len, Robert. Hi

correct Just continue margins over to and still answer related year, last your gross quarter gross we to very year-over-year and that the the significant showed believe you're growth question quarter to margin attainable. fourth is and and our XX% we

slightly really margin. the biopharma of compared not to of that's revenue in mix the to driver in was revenue In XX% terms QX, third the at was total down XX% revenue the compared for quarter -- the but QX

differences of and on we'll later center our in in U.S. revenue, control logistics will logistics that center center closer between the in I have the the Eastern we Europe. influence direct company-operated overall logistics another moving to converting expect the that You side growth Again and we're European forward with we on be anticipation the just also expected opening our increase. in this overall quality center of year a logistics may margins operations in Europe that to terms freight will slightly. of see within mix add component change the are it revenue here

the in gross will margins revenues see see gross some Now in again your quarter-over-quarter, those you things ramp, gross XX% towards so trend impact is you'll the variation margin. overall margin, as but

Operator

Zacks Research. Please Investment your with with with Marckx question. is question next Brian proceed Our

Brian Marckx

I'm another it's congrats My first Hi the on another year, moving question is quarter better sort expense mean, because to the bit again way guys, a just of and great I parts. all it's criticism and great question, impressive. this idea little get high that pretty don't trying as of a I take level not guess,

guys know talked headcount. you infrastructure adding added than I in SG&A and you higher a QX bit as you some I little expected about and So are was

adding but kind margin the for us and obviously of from a of you've you're new online But terms right guess terms relative you're standpoint reasons guys the a just So a of broader give in they think coming got costs are I'm not XXXX, going ramp and good into and bit little that and going demand just help in you all going to XXXX, in business of guidance, to about you kind you as in are view a specifics can these stuff. -- in pieces them which growth ask I every adding because XXXX. coverable relative into revenue to in of what these

I'm to in versus see guess should way XXXX? income I XXXX a and So improve operating we long asking expect

Jerrell Shelton

Brian, I'm going some to to to let Robert general detail, us answer guidelines you in want but more give by. judge I

are in if we're question. one the certainly for you're But questions question, might that Your preparing and future. not have good the company

for. prepare to going it's future. That's the big responsibility up two prepared to five four; and BLAs Remember, we and and rolling for have very these a burden everything for be ready and up And seven out to two that out be forecasted to is therapies forecast we going two as number Cryoport have to four. Yescarta We to for that's are and advanced, far are Novartis of market. roll we the tweaks from up EMAs Novartis revolutionary can't the to of from needed there adjust and to Yescarta we we remember to

our in from addition clinical to that, So shifting products. we're company commercialized to more

we say who and strong I now, the invest. I and profitable build stronger, Our model about up than so has be cut today, demand, products do for and to but you that products, but delivery. we model systems, could the sort be different all your only could ask we And but cut quality your to systems, for company, it's have it for beef getting not clinical is the we is today in could one of the cost feel different often a a I commercial those your as grateful have now. have see cost of bulletproof, and repetitiveness, to to question serve really we're of the commercial profitable robust, this right commercial to opportunity model people clients, but and advance demand I today, to very it's be profitability,

near-term. company. specificity is question is have do exciting my you the very, with This the of to and So very And my reward to short-term we now our general things value, continue answer for and for terms to market we to or long-term always the the answer more our future. and the general want hurt answer Robert profitability in to immediately for a that's guidance the shareholders build I'll for build turn it and about company? is that want to longwinded

Robert Stefanovich

this Brian. as give to Yes, guidance know, the won't we you And, at we point, Street.

space it's and execution. unfolding is to of this cost are insurance getting all and operational our really therapies of a very, more as in that clients a line well logistics on opening expertise, direct we finding moves precision as full center. We're The the of at facility Eastern in are clearly the sense that looking the launched efficient, to to to work ready as that companies communication. of expectations have However you that we're our and position with quality team, would already launch Those leadership centers setting market kind terms our operation as about base as have, our are natural with observation that and it's position now with support in expertise the are provide client in launches, it in was as operational very and right to in very is complement operation now really commercial third-party, we up. therapies. our our more being logistics ownership it individuals make Early of there, our we correct unique having is have well take European your their and build control made that to

on the clients, balance and strong have look XXXX. building, earlier, strong embarking have the delivering that's on really working cash we're driven ever for strongest company really I we're balance, that had, execute the the XXXX. and organization you And means if very that have, and to what that we a on -- then, at we're we all mentioned the it's So we and that demand by as the visibility prospects cash by with, our

Brian Marckx

nothing XXXX, you with Yes, guys to are -- in fun understand I'm kind bit to just do my criticism the but my or sounds an opinion years again that question one the case? little was, guys that think products, number had not prepared said watch to in to kind things in been I mature point, -- that be have getting of more, the and to would year you it's been that the but trying that of is company my of inflection growth revenue that first you and absolutely the you think referenced from most and be commercialized first job correct over comments done coming and is and to if fantastic Jerry it is like you going the correct, your this your answer question in and it it's just is

Jerrell Shelton

he that his to it close question to very mission. Mark to is very is precious turn Sawicki that to and to -- going I'm

Mark Sawicki

revenue that other variety most attribute wouldn't commercial, of strictly growth I sources in. there's Yes, to coming the are of a

lot developmental to we're onboards. had Robert mentioned, generation As contribute, did those that additional additional the standpoint, events, a from on contribution Jerry call, clinical a standpoint on we're but now see there's to goes revenue will going commercialization five that preparation of seven and into also significant expecting

that's count that put team anticipate we So the very last our very, in efforts together in Health doubled space. both significant additional fiscal year. new strong Animal additions sales onboarding, our support we clinical We to have strong clinical why IVF almost onboarding year, and also the clinical on and this a we'll such

think reproductive in space, we're growth hard significant going some the got that to in to and we've so activity well. year, growth Health, in the it's well XX% for growth acceleration space year see as is this think see we're accelerate last that the up we to So significant that going we medicine Animal some as

Brian Marckx

are expedited how BLAs, of fast seven track or of five if terms under In many those of to pathways any review?

Mark Sawicki

would I'll the say go definitively, to have and majority accelerated having RMAT be vast designation. but to back check surprised

Brian Marckx

new a customer is with sticky level guidance, again product was that for client guess that Animal there obviously this of up the that just Health like number not it want a so asking you that sounds to bit or be a was don't take to relationship? I much Germany too Okay. new is I good new talked little but really try quick, I'll that in about revenue time,

Mark Sawicki

tell it's too more that in I -- early to for you me point about at time. to be this able

year. do you prepared of I want generality. going publicly be tell this standpoint we're me just to distribution I believe that at so. to can't that that Let don't in acceleration really about a that's from the in what see talk not space this going to to talk more point. -- revenue We

Jerrell Shelton

that to you so the Yes, mostly on maybe of just client. really by this were impacted QX if door in but color at a little XX.X%, it the that the to the growth Animal with really growth new moves multinational just client. client mostly for that generated it's opens exclude a of showed additional initially onboarding add numbers was more revenue new year were Health, still These QX, large look also that if we the you XX.X%, business

Operator

Seidl Our with is question. with Company. Jason proceed next your & Please question Cowen with

Jason Seidl

Thanks, Seidl ELAs of Operator. past some quick Gentlemen, the terms questions in here guidance of the us you've the It's appreciate sort revenue with in BLAs time. and Jason Couple from the Cowen. I given opportunities. of

more in opportunity, three new of you've give terms here, bit new these sort little revenue So could us added a the the ones? you guidance that ones three of

Jerrell Shelton

$X they and you go as indication in guidance we million can't is at Jason, given to more really got That's can $XX up. be of once that time. about can't know, the in the specific just further any as past ramped You that giving an and far we we've million we go terms than this

Jason Seidl

it sort maybe huge that more going a about year little fairly up downstream, you let and name, enables and exciting but Fair next seems collaboration the enough. what like of that that's years? three do you bit there, Then you and could to not to over McKesson this say go talk seems

Jerrell Shelton

with that because and engineer to McKesson to going the I'm We're he very to helped agreement it pleased turn Mark large extent.

Mark Sawicki

Yes.

a we regenerative and not that had network, Bio, GE, clients, and workshop in two-day Match, that McKesson us in Be a building therapy from but last on we focused only co-sponsored deeper Fisher provide been throughout support it was and clients The the just standpoint. perspective helps XXX also over really folks had space, partners, come network supported and week where a coverage by fact, event to a from we've that and broader So

leverage to our So those is core to we in a are as such forward, support because be able that -- moving for believe of competencies there's us we organizations strategy which McKesson a also client provide of value amount development a as through to more launch. commercial base, organizations, tremendous well to our clinical but it as lot provides can both those core value

Jason Seidl

with one you going statement, you don't are want side, cash just Final to future, Jerry, the color. more growth operational the hey about question your to projected the interested invest in the all the flow guidance people the kill little in say I just is on talk for be Could Appreciate operational want agree fiscal potential bit Okay. company? status I you in some profitable we're cash past. and how to flow quarter obviously for XXXX? is loose your your know you've which year a given free

Jerrell Shelton

Stefanovich turn Well talk about it going be and again to that but give in guidance, will I'm don't terms. to to we broad we Robert

Robert Stefanovich

Yes.

talked ramp our operating, expected going reach the XX% we an some So CapEx operating driving adjusted goal flow we up additional is revenue. have we centers, And that of of target. our before, but cash look in as is in it our for not requirement continues we you fleet, certainly our but that logistics This set at in infrastructure towards are ultimate short-term general free the we build-out organizational our we building target. to to out as and something clear be our is are ours should were very margin it be that we

Jason Seidl

you time always. Gentleman, for Okay. thank as the

Jerrell Shelton

Thank Jason. you, Thank you.

Operator

with proceed Our Baldry ROTH Please Richard your next with question with question. Capital. is

Richard Baldry

trials XX sort kind trailing get what a internally top-line a that on at XX look of way success of internal we per what of of that's there you months, to the data the basis and about then see number Phase that months, number think to should a way from rate a of can filings, BLA/EMA the generally about say months, mean that, XX quarter? Is III for as seeing sort think to just sort it do duration in that Thanks.

Jerrell Shelton

to And Phase we and that is of look about new we with the commercialization And or look III, But back it's take. go go at XX%, stats clinical use III the to stats is then forecasting. to is have once to at I it's Phase the stats. through course. we market start about Phase the -- do those of we and give filed, or And the or XX%, and EMA II in our What out XX% I biologics of BLA XX% the are Phase Phase stats XX% those low, about so. getting is trial

of trials XX% means month And quarter got Phase a are so when I Phase only the you've that clinical we net or Phase each get number dynamic it that very each I. see those you is out of when because numbers you see cover

and dynamic only So on. II so very of II Phase XX% again and out get Phase

the they're gaining and So moving we and numbers, numbers we're those it. net they're net market that's on way in at look the numbers

Richard Baldry

current growth periods. Okay. And and capacity the reflecting marketing tight at sales the that, wins of is that building versus is for look I out to year when in how current sort

Jerrell Shelton

Development we Group year had department competencies to Commercial where we capabilities the with and which company, the especially, XXXX, have, reflective haven't the talked Group transition went in upgraded every the a very great remember building in we out. past. is in of and I It of actually And, in comments we through my Business about

that is you get so a speed, to train So them bring people, recruit them have costly those to in, them, exercise. and up

always So future are building always. for the we

Richard Baldry

into of what the but you'll for logistics be to commercialization asked vendors change do where areas investment And at a certain move biopharma longer-term co-locate logistic is that center. certain and have sort how that centers in these could as likelihood are that labs think certain would things by needed the you their you

Jerrell Shelton

enough embedded frankly we relocated in change wouldn't and embedded have like it room approximately. Lattice, centers, we center to do we and very means these there actually an capital had our and going that candidates, several one investment prefer much have we have at there. all. welcome expenditure our because Well, wasn't have commercializations And would doesn't at was our investment have and our we except have But capital terms use we forward. in part its still centers We still of embedded the the is it so software; But of we to changing we people solution still that. of

Richard Baldry

for Thanks your Great. help.

Jerrell Shelton

your question. for Thank you. Thanks

Operator

is with Please Janney Knight question. with proceed your Our Scott. question next with Montgomery Paul

Paul Knight

Hey, Can you Jerry. me? hear

Jerrell Shelton

Paul. much. Thank can, you very I

Paul Knight

the Congratulations numbers. Great. on

Jerrell Shelton

Thank you.

Paul Knight

of expected, therapies and those and they how pace. unit as does as in or not Kymriah any particular Yescarta volumes rollout expected, to way say for shipments your are tracking unit the The change rollout any thinking

Jerrell Shelton

be And very it's but Paul, somewhat of a specific I'm general. a going great it will it a target. still answer, more question. moving that's to for Mark turn to

Mark Sawicki

Yes, hi Paul, how are you?

Paul Knight

Good.

Mark Sawicki

So what I can say seeing that to is we're you acceleration.

last projections. and put both types out have Novartis So latest their Gilead

you because acceleration. further as think I'll use that, basis is can I those than we a can go say I what are can extrapolate of there moment. leave seeing but to the I kind kind at it

Jerrell Shelton

year. that they'll per to hear that Yescarta points mid-year have support qualified my care comments of X,XXX patients And, opened Paul, did Yescarta thinks you enough in by

it that's sure we as that go So there further does figure make out into move and are and we quality bit But so novel have much indication. these quite different really and than things to a some because around is forth. new that the we that can't run too

can terms in that. answering we far go, as as of about that's So Paul,

Paul Knight

Okay. medicine medicine be little reproductive on it was reproductive the was in a should Was anything down in And going then bit fourth issue? we a about? comp quarter thinking

Jerrell Shelton

going back turn Again it to Mark. I'm to

Mark Sawicki

variation, nothing there's a it. we -- it's business fact nothing in built-in significant on we growth of there's are in that lot their -- retooled there think it's emphasis critical and a trend Well, because just seasonal putting

and stock the in much put temporary variation. wouldn't I So

Jerrell Shelton

sequentially lumpy year-over-year. well as we grew as Yes,

Paul Knight

you then, know terms can to there nature number do but have seven we of that on five these involved that you you BLA/EMA out in color increasing, possibility is yes, size the filings five the and four any batch prior filings nature approval okay. is of that you been than put of, the with. the those any involved of in with, population different than I terms seven of anything raised you've or within were you the unit patient number to increasing, -- that a lastly, raised you've of Yes, had And to two different is guess, previously

Jerrell Shelton

going I'm answer. Mark an to Paul to Again question turn for that

Mark Sawicki

is Paul environmental we're what Yes, more in seeing nature.

a are very, they allergenic XX, acceptance of that the going also which take heavily clinical you're from a very the filings I you on a definitive more seeing look taking are to here. are, to and anticipated, for the than some programs and demonstrate acceleration number I most the obviously we're indication. numbers XX,XXX very which whole, moving also that are FDA very as stance anything which may is what there's so significant short-term. industry to going FDA which are in in small publicly Obviously progressive data that patients we're is of in good in have a think benefit that there a the If orphan unit and going is of And net in the if indications number at our are for nature have I bit a a year. acknowledged little volumes of assuming quickly good patient us that's coming fact we the And think is programs see, we're as these dependent these have volumes XX, think

that So like. potential go if I think get of demographic the understanding RMAT's you you'll what good through looks a

Paul Knight

you the United much. to opening and how very then facilities Europe your do want you're two open new And States, lastly, Jerry, rollout you thank Okay, facility quickly the up bricks-and-mortar.

Jerrell Shelton

of important this Singapore then Asia-Pac be beyond opportunistic our we will will that driven facilities looking somewhat year. site of certainly first evaluating and And the introductions. open demand then will the by two coming at in that site remainder these Well, and new for it's those will be it half an the from be

Operator

next Higgins, proceed Investor. your with Private Paul Our Please is question with question.

Paul Higgins

worth. biopharma I'm eight I iceberg the so the of a of your if guess delivery world and somebody of all for of because be put is seems $XX call. is you tip my today what X%. I'm me or to you be I'll cap see if what when the that a layman if Juno to business but me market what two or two there pizza out in business business scientist or -- is to and percentage is terms John's kind and way revenues business year it billion Kite's servicing metrics and seems getting over obviously and businesses it of saying you'd space able cap the have now. your terms market to in revenues the of secondly to just the today taken -- would Kite taking this X% the out and opportunity business, not percentage eight I the lot that what hardcore is the estimate you would It bigger, call I from the versus read or an trying is expect get could. think is wondered not that that of are could that idea cap estimate try of guys it for kind to somebody a Domino's questions two Juno's Thanks for out this the business if work of market get, do Papa for so where and we biopharma you that what should has the because the that to portion And the can I overall Cryoport

Jerrell Shelton

simply in bit prudent And wouldn't to really of terms are at can't that ourselves we that and last Yescarta really question, We're we guidance, be here and what because first, of of give early course our your early. good very our then to what don't stages these since, guidance you we -- know those other percentage this to is me the Kymriah out we of it's revenue we clients give very ponder in questions coming a and going very taking very, Paul of that development. and quite revenue point Well, don't a even five of give be. we're with -- it seven it's

CX answer that to very to for any public guidance clients question ourselves, to that that I for it It's believe that give just for of be two any our moment market Mark just very question. eight it's is but would come conclusions address we'd two for to answer of but in certainly a to eight to let like end said Cryoport So can't in two we two the difficult put like That to to tailored comments I'm going from us the a you'll I go me our further address eight is of market. you front -- those as eight to general solution Toddler solution my out. called two reports was certified for do the some the on eight able on us impossible part Solutions. to -- to to not have the it's to to to tool specific

more it you have there want that? I is, more to potential to specific that clients but reason. there, for two a a solution eight a add would Mark, do Now robust out like which are clients was add other might to ours and to expensive very

Mark Sawicki

you comment. give little I'll of a Yes, a bit just

support is itself. into it these like the which that the obviously further interested things but beyond to with regenerative shipments in to where high space. moving for also sample not types two the support that pharmaceutical that what compete and McKesson with high others bringing convey interested trying space in value to trying we to shipped extension value So clinical monitoring $X an progression -- applications particular a medicine gets that's extensive a of along require biologics broaden our we're a similar to commodity offering not in platform programs we're ice box us other there's distribution particular trying natural talked to that and in. we're those about and significant basis We're to would out include from box this $X in lines, partners have we've in and in moves we're eight end-to-end. value that we're to ecosystem, where Obviously portfolio And in what like build overall

answers that your So hopefully question.

Paul Higgins

is for much thing what Is very today? to you mean thank specialized think seeing the that that. say I I clarifying we're two to a greater fair Yes, opportunity than business it eight a

Jerrell Shelton

would broader say a regenerative does distribution. cryogenic strictly it than I beyond context therapy have

Paul Higgins

Because of the -- tracking

Jerrell Shelton

I'm It have a sorry. broader does context.

Paul Higgins

has? Cryoport that Because of the tracking and the the platform

Jerrell Shelton

It's a just market.

distribution. So current is an two we're eight a obviously the -- on of that going just have years does extension to strictly Cryo we've value application space focus a focus platform, over high we after but Cryo had beyond it the our Cryo

Operator

with Nathan Cusick, is question. Nate -- Private Our your Investor. next with Please question proceed

Nathan Cusick

cell see you possibly to and in kind the you. storage that shippings bank the questions. had bulk like I Cryo both I with more guys. couple in to you of the get clients like previous I Thank Hi APIs if start large any that your calls like a looking to past integrated eight pharma to last about integrate of and you're stuff I had to wanted -- and that two severencing earnings update on talked guess the want that. question at that. versions like -- trying and large guys targeting and maybe in stuff

Jerrell Shelton

lot actually in We support supporting a movements yes. for is biologics more example answer short the are Now cell of bank manufacturing.

Nathan Cusick

is that the for as niche like almost the great two you like storage. to logistics markets looking bulk are Okay, provider possibly you're eight target of the with the at and CAR-T targeting saying the long-term on the

Jerrell Shelton

aspects that moves of and cell lines. is other so along We a do offering lot broader a already work ours the is obviously of a providers, service with supporting bank storage target as those

Nathan Cusick

and expect like sufficient secondary possible debt then be do to construction further this center you and markets deal you do are and hand looking for possibly my European this Coast cash in convergence current fleet for build-out. the you cool with both guys on with expansion your to are offerings East Okay,

Jerrell Shelton

we Well, we along. will go approach the financing as

plan now We fulfill for this our enough to cash year. have

we'll the things at we not table have move at nothing we along, that's look as this on but So planned time. and

Nathan Cusick

Okay, were volumes, that revised great. estimate the at for previous because the of shipment And stating need need to commercial of you call then on with order the be -- my be last allergenic -- as obviously sort these ones would so is scale, to two other a magnitude correct? twenty treatment can question of with be a with a

Jerrell Shelton

right not Well, there eight some generally but treatments off have your trials that's we now. fuzzy at question market allergenic certainly some is because to two you are come And for Allergenic a allergenic and is little bit will sure supporting volumes to point. the so a could higher shelf product.

Nathan Cusick

general. just Not for two to eight in

Jerrell Shelton

Yes.

So let our cost me so I can is allergenic streamline it that be is in -- per and so general range. a be does unit and in have still transit a packs product higher your your also so standardized volume would more transfer lower, but revenue in commercial commercial that expected -- think per configuration

Nathan Cusick

other cost shipment versus you about the with ones logistics to point great are build-out. a that and That's yes. you streamlined trying for those great to Okay, per transportation onsite of trying because possibly allergenic then site do guys

Jerrell Shelton

it the would we customer, it on always consideration it's if it’s basis offsite versus when but specific. consider but reporting now solutions that client-by-client be support. a opportunity up certainly we comes but we'll it's decisions on comes Well, a aren’t up client and logistics embedded making right that’s But

Nathan Cusick

questions and the you great Okay, for so for the all answering Thank great. quarter. thanks much

Jerrell Shelton

Thank you.

Operator

Our next your is ROTH Baldry Please with Richard capital. question proceed question. with with

Richard Baldry

Thanks.

Just a quick follow-up.

call your capacity in you facility of of that a outside sort the how and from let’s have Cal would the utilization like of that of and kind with get maybe track Southern level facilities. only existing really with your change you do you're a curious So that on XX, your moderate have simple the utilization higher capacity XX, tripled two or basically you that utilizing facilities Thanks. new once put new up at the because XX, and you're available

Jerrell Shelton

in facility one now. shift our Rich, Well, runs Irvine here

are onslaught of do that new as but are we sense. coming growing clinical make two see have the So clinical example make also but there midst there supporting two shifts of cryogenic in it the we could three well. give what trial the we've as announced doesn't activity in business commercial definitely one our we shifts, Europe being trial of that for two to sense of with could you has to the demand run I'll in well area. facilities in growth The others it now our do as

we all. future for So at doesn't are looking where the portend today at us

Operator

end I’ll we call over to reached the question-and-answer like the And and have back of remarks. closing for Ladies Jerry turn session. gentleman, Shelton our to

Jerrell Shelton

dedicated a technology. groundwork and the our of you laid allowed of over would of exciting and Thank strong past years shareholders business and I build for ongoing and thank support chapter at logistics infrastructure that much our long-term world’s we've we this you support very growth. the enter technical as temperature-controlled by operator company, Much employees' to us several of for their excellent all Cryoport especially most to teams like these has questions powered very advanced your extensive

global temperature-controlled is and in reputation the basis standard we’re of growing unrivaled we goal logistics Our do. is a what on

simple we’re in all others the other grow position While growth DHL, and to has one or We’ve now participate that for in very names Zoetis, McKesson, used world’s medicine that that with and market UPS, what regenerative no FedEx, with of we major to do to or to technologies competencies the partner many a company ours. reason as agreements like does close trusted Novartis, in to is partner Gilead, us that come our companies. we’re of a important positioned exciting the innovative secured markets, biopharma

role in are to our sensitive leading-edge play clients. providing logistics for We we our and markets the

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market would share. stake to For advanced to any be market difficult gain the newcomer overcome incredibly it and meaningful our to

entry We to impossible potential across into board high the have overcome. competitors our the and barriers made for market to almost

quarterly rose record updating to my colleagues reputation track achieve of your behalf, on interest We you I to that, much call. to daily and and our forward I our us next conclude look earnings very and the you are for Thank lives conference joining and demonstrable will of save Our safety the call. all stakeholders. is again proud today. for reliability On With unapproachable. our

Operator

concludes today's call. conference This

participation. at your for this You may disconnect Thank you lines your time.

Cryoport (CYRX) 7 Mar 182017 Q4 Earnings call transcript