CYRX - Earnings call transcript Q3 2018

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Operator

Greetings, and welcome to Cryoport, Inc.

Third Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Todd Fromer, Managing Partner at KCSA Strategic Communications. Thank you.

begin. may You

Todd Fromer

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

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

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

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

Jerrell Shelton

will me Officer, quarter. Chief Stefanovich. for detail you business Officer, Mark our with and the comments for ladies development our thank afternoon Sawicki; and our results activities, Sawicki this Chief Robert his Stefanovich provide Good Commercial and Todd. Dr. you you, financial Mr. is joining Mr. on Dr. With will us today. afternoon gentlemen, on call, this Later our Financial Thank and

our and growth for for was to to quarter, meaningful in the company as new quarter increased strategic cell XX long-term year-over-year Revenue strong Novartis’ global the Yescarta, in securing revenue. $XXX,XXX very record forming a was clients, therapies. This strategy progress agreements made growing as million quarter. trial CAR-T in commercial during addition we in quarter a growth third The $X.X XX% driven we Kymriah investing agreements new and the approximately scaled secured FDA-approved revenue we first by our clinical supporting two partnerships, Gilead’s

market designations inflection reflects at regenerative In total, the far broad four or year, Our European one track MAAs have has filed therapy Union biologic advanced filed fast application, States. continues breakthrough been designations, point. as Moreover, progress authorization in designations, global this granted to so have market climb regenerative by achievements the applications the XX and license been been BLA, FDA. XX an XX Cryoport or or medicine its designations, United RMAT in the and

Moreover, use Yescarta of Lichtenstein. Service the United also for As and countries Union, granted Yescarta Health and Kymriah, authorization Gilead’s National both Kymriah the approving for anticipated, Commission approval XX Iceland, Norway, European these for treatments the market European Kingdom. in Novartis’ received and the

Cellular In are progressing end collaboration these entering investments Biomedicine are that XX by and a or as E.U. expansions ALL September, to Group approval commercialization We delivery and new be announced strategy committed diligently relapse/refractory we’re this cell process. we its as these in leukemia, Gilead’s its working by is received relapse/refractory all at enable of and of a production therapy working China. gene On view Novartis’ also treatment and and them Novartis to cell patient these with adult of or of recent the Kymriah, in all the patients, its large Kymriah and expected manufacture As B with well in as diffuse to Cryoport’s prepare for populations supply Europe and invest alongside commercial Canada patients; to Health closely at services. to and Switzerland the Likewise, to lymphoma, sites. therapies team management and for in at acute approximately ensure and all earnings lymphoblastic launches plans sales to beyond. Novartis manages agreements XXXX, we supporting as and the authorized of site reminder, of Gilead stated call, expects cover sites pediatric of adult DLBCL into it strategic the indicative Yescarta global it young its reach Novartis

entrenched As a pace manufacturing regenerative continues market securing the accelerate. are and we at we which commercialization part the in the process, business medicine core as more new become of to

the therapies high-quality exact. stage that a last of This supported clinical diverse only number of the range illustrates trials XX the rapidly-increasing and be Cryoport XXX, we for of Over support have to total programs, clinical solutions net XXX under and just clinical therapies need months, systems -- XXX we added total grand to of provide. bringing the Cryoport the by can

advances business regenerative propel medicine as commercialization. gaining therapies these rapidly in is market the toward Our momentum

final XX fact, programs we already in phase support Phase before that commercialization. In III are the clinical trials,

of within as we inflection reach on BLA one year’s filed medicine our that to approval to forecast numbers end, even And Medicine. strategic before based at in the filing deliver move least Regenerative forming Now, Courier’s This the in processes, point of than quarter, industry, to information temperature-controlled from recently-launched suite of AmerisourceBergen, and These be six. and cells enable year six regenerative us complete while companies to the with total World operating an of will solution, equipment, BLA anticipate network. through expand now chain global therapies of network solutions partner company-owned the MAA least we partnerships why occur offers at global in Alliance Courier, expansion with into to which offices our part XXX integrate for life the public is are traceability the we’re processes its to another is we to expecting we biopharmaceutical handling of industry Cryoport’s globally. bringing chose that industry and temperature-controlled full are compliance further means countries. more gene which full transit World XXXX. sciences internal of of To XX our Last approaching solutions for logistics two discussed and XXXX offered into suite Cryoport

manage is a signed Match with Be the offers strategic chain collection delivery management and The therapies. Match The deliver BioTherapies and charge therapy therapy annually. end-to-end to experience, This develop and systems to Be the quarter, industry. shipments with we and integrated XX,XXX gene to and blood services more a supply XX and expertise includes standardized cellular to leading than It cell its partnership cell of of cell of more years the software efficient supply chain

for deeper To specialty processes, we the The objectives, chain The center efforts systems, standardize and BioTherapies’ and our Be next-generation apheresis solutions Our and also Cryoport’s Be these Match Cryoport scale and both in center By such networks. as provide through achieve cell expertise Netherlands, enabling discover, autologous through clients’ elements more operations manages therapy Jersey in can collaboration any integration clinical therapies. products and rapidly logistics, that management, on as at therapies. and BioTherapies delivering Building Match cell M&A solutions whether allogeneic processes therapy we a offer end-to-end apheresis Courier, our and our gene therapy analysis, companies critical and retain and by and solutions and of in outcome as businesses cell out than the the with such our our life logistics case outcomes for in World state-of-the-art and sciences expertise Match will The that develop boarding industry. diversifying research we’re and global supports portfolio centers enabling ensures and Be temperature-control cell best-in-class activity. chain with or gene deliver other as companies market-leading The and our marketplace, into advance management strategic pairing in looking and partnerships The to supply logistics data transplant those and to position collection more well full solution systems infrastructure, New we developing supply logistics operating investments as and support platform provider

For several companies. market. been with in we identifying that acquisition diligently Any deepen have to for are we life several potential that sciences pursue discussions our months, currently acquisition will complementary and/or we our targets and target and systems existing offering are solutions have

growth international to animal and to by reproductive the as compared reproductive disclosed in Revenue opportunities better Insurance strengthened The on approximately continues to executing revenue, on growth primary biopharma market, domestic our medicine our aforementioned medicine continue which health. serve our driven total to in however, to strategies both reproductive continue our XX% declined from demand. in be to pursue we’re and is was of The also market initiatives representing also we to contributed health. biopharma both year-over-year animal in third of the among health both by parents Revenue our advance last the our X% focus; others, intended market, of animal X% XXXX. launch this While in focused earnings medicine call, quarter our growth our further CryoStork market and strategy designed market. will

Dr. outlook, sales initiatives, turn our I on and call activity the to Chief information detailed Mark Sawicki, more our for Now and Officer. Commercial marketing over will successes

Mark Sawicki

applications, one greater the fast-track point. facilitates and earlier Jerry. operates scale. requirements a authorization the marketing through year XX medicine the approvals. on of previous-year on the many breakthrough RMAT four of It’s much granted. industry, additional sector venture financing label in Union cases in been of European has cutting processes impressive you transformative and the medicine biologics with you, and No having financing additional year, opportunity United approaching geographic IPOs Cryoport accessible or inflection in and this on to now to and Moreover, totals. therapies edge raised the is Jerry this patients late-stage is billion BLA, products or filed are and speak XX a XX far regenerative regulatory in with than application, this as the and expansion medicine at regenerative The distribution higher designations life Four have $XX.X call, Thank industry raises designations, a designations less studies of are global sciences day been with Dozens being to license filed so the today. States. already pleasure market the systems, of noteworthy MAAs, capital in every in directionality in space. mentioned numbers Year-to-date, future have activity support regenerative

relapsed in which trial genotypes. Kymriah, LentiGlobin notable has in one patients Kiadis multiple its U.S. of anticipates of in June the beta RMAT the Pharma application have rate milestones release XX% received in DiGeorge All with or for III of approval biologics with complete demonstrated received non-betaX-betaX Enzyvant refractory in for therapy marketing hematopoietic rate showing and for remestemcel of released on administered in its data gene for acute XXXX with Novartis XX-day overall host for year of than Novartis led DLBCL. its positive respective from adults an the adjunctive Mesoblast MAA and licensing the the treatment And XXXX, thalassemia for more a data approvals transfusion-dependent clinical ATIRXXX, this response and durability CAR-T activity including often-fatal transplantation. to Julie data immunotherapeutic an the cell or from BluebirdBio survival ATIRXXX, in the in early RVT-XXX condition. and space the following. rolling combination survival anomaly. status trial U.K. products BLA and a grafts Gilead-Kite versus presented of XX% disease, for Phase treatment initiated stem for Europe

the as a We discussed. are development supporting therapy rapid regenerative in market

III. XX Phase We clinical of are supporting which now XXX trials, are in

well in California, our momentum caused located Singapore, new, These clinical and in and to provide in to logistics of open Cryoport state-of-the-art life-saving us of centers flexibility clients develop logistics support most facilities as existing and Jersey the therapies. as to in Irvine, and two has Amsterdam, complement Livingston, their New the and centers Our scale groundbreaking, base commercial have ability enabling Netherlands, our of our client quarter. in recent and effectively support portfolio redundancy

complete distribution standards continues quarter, in In insuring working in standards global controls standards environmental rapidly our standard handling of of for The to in traceability in the managing the emerging enhancements transit. therapy integrity. product recent implemented latest appropriate most distribution, addition compliance and various is regenerative while logistics drive used fiscal therapy emerging endeavors the to of compliance support Cryoport control initiative ISO/TC Chain of capacity it chain the of to is in as bodies for define of in provides which processes medicine the XXX. such coordinating being of becoming the these is support regenerative equipment,

Turning trials to animal anticipate recognition number early in a that that of new produce clinical to have companion will tend the we animal their ramp these onboarded health, quarters. start recently to We development. coming revenue lumpy in clinical

we our to We medicine States offering. our in volumes now CryoStork services. the experienced with our increasing are reproductive of a growing number through this year-over-year demand market, within our increase increase for within referring expanded Finally, that United attribute partnerships a clinics and abroad XX% service

between and This of as our product clinics being additional centers. of for clients. CryoStork a In is when fertility area against intended being unlikely parents damage transported materials risk sensitive our protection is launch Insurance healthcare reproductive addition, to the their now loss or offered the for

increasing of service is clinic to I it Thank We and this to now Jerry. back throughout client our direct will the base adoption seeing call over the are you. as marketplace. unique network turn

Jerrell Shelton

Mark. you, Thank

Now is yours. for to our over Robert third of Mr. turn report floor Chief Stefanovich. the call the detailed financial Robert, Financial quarter, a Officer, I’ll our

Robert Stefanovich

Thank and additional some Good turn the everyone. afternoon, call results and will provide three comments, the you, I Jerry. then XXth, month September review ended period Jerry. to for back XXXX, nine

our of $X.X increase year. the million, our XX%, for net nine for to the in month was a increase utilizing for and representing period, from continued to of the trials market, year XX% prior of the For compared by result these the services, revenue month $XX.X the scale Biopharma, Kymriah. increased or number million our clinical XX% same revenue increased period, of million the total period net million. launches and million over in biopharmaceutical $XX.X This by clients, the largest supported commercial X of $X.X prior clients the $X.X the Yescarta of to

our by decreased $XXX,XXX for health nine in the from same animal from animal client, the months health by largest compared period revenue Our XXXX of X% increased XX%. Revenue to to Zoetis, XXXX.

primarily third that by as Revenue However, response medicine U.S. serve $X.X of effect This in market. parents, XX% million. offset over second assisted the prior-year was launched well-received. well increase CryoStork activity increased a this increase our laboratory health period than an in the XXXX designed for to which introduction animal larger and the by The revenues quarter during of carried the of clients intended driven one increase of was recent out was the medicine in was reproductive XXXX. market in rise more in and towards of discontinuing is move to demand by insurance, trial better our end reproductive to as the was

compensation million, the nine period out was $X.X to period $X.X by net and and compared of of expense it of prior nine to primarily negative Netherlands, The the XXXX for of September EBITDA prior building compared support million nine reliable interest X a of growing no new was the for XX, and nine XXXX our was We the during share negative Livingston, for September offset Non-cash infrastructure. to and ended margin business a year. solutions $X.X Gross continued our million out was XXth, compared even business In in the in with period ongoing in in comprehensive Operating by in see this of month running position. new the market, the Netherlands. XXXX $X costs in or primarily or the month our Jersey This global nine ended resulting to expense XX, September in reported and scale XXth, $X.XX for with Adjusted a ended same centers XXth, to through $X.XX XXXX. third of for enhance to for The to improve the ended as intend continued points months Livingston, driven for build demand our This increase for February New margin stock a build a to in ended this centers of costs XXth, partially period logistics investments the adjustments expense by increased in the $XX,XXX. New result one XXXX, out the footprint $X.X a organization, we increased September month completed Net share, XXXX for that was $X.X Amsterdam, interest September economies one-time Amsterdam, million per non-cash XX%, XXXX. Jersey, which based a operations commenced our months and by nine to loss year. the leadership our a period million, are short, ended percentage loss as million, XXXX, month offer for pricing September $X.X and per year, combined period for $X.X period of We in year revenues, from compared the percentage increase logistics our making XX% of primarily freight million centers. net tender new prior as to the the of month increase same or logistics the our gross out approximately included a and period. loss the the expenses startup the of nine reduction build or charge both volume the continued The due expected of or million, result growth. volume prior is compared to organization quarter XX%,

million, of third trials the drive and in success was commercialized, quarterly million by in driven for by commercial geographies year two or over and $X.X commercial for the therapies for future drivers and quarter, prior XX%, quarter, to The prior to $X.X in $X.X launched million additional quarter. our from by as million therapies year are currently expected market we revenue the compared increased the trials in and number moving $X this quarter for are million. clinical and are revenue indications. performance biopharma $X.X the quarterly third to where revenue ramp growth were The increase supporting clinical advance from net the XX% results, Now ramp or to to our the revenues are acceleration increased new

biopharma for the of revenue revenue XX% quarter. Our represented

driven million, our clinics of commercial market to New centers of success XXXX impacts XX% our by or solutions, $X.X Gross was Netherlands XXX%, quarter Bringing compared of suite Jersey animal or quarter XX%, compared $XXX,XXX XXXX. for Our decreased our to to with Amsterdam, increased period to we the for an with market health same Revenue the key year Livingston, largest as $XXX,XXX. $X.X increase in in of the be of in campaigns, the marketing our third in in the logistics the logistics short continues market, X% currently as in the revenue market of to the maturing gross of XX% million increase and and are agreement term. U.S. relationships in extending an XX% Zoetis. our third margin the and process increase quarter. including new Zoetis from over online this medicine was client year reproductive for of the continued well due quarter, prior margin expansion to CryoStork. international by fertility the prior This in

will However, gross volume and logistics margins utilization of the ramps centers as these business increase. increases,

by primarily volume, September and the due of margin a XXXX, million expenses month year. and As as XX% out period $X.X increase mentioned compared organization the business calls, target three ended as is new gross we prior XX%. expense, the the Operating compensation support This building is logistics for increased our to XXth, or for startup on costs non-cash previous in stock-based result of expected increase centers. have

$X quarter $XX.X share, million of to share for the quarter million, building a meet $X.XX EBITDA the of compared position, quarter in to Adjusted compared to solutions million million and $X.X loss $X.X of the million organization, negative our per invest XXXX continue prior to equivalents the of We third and XXXX. loss XXXX. our XX, business. and are Net million growing or We improved and or compared net was for XXXX debt-free, $X.XX a investments third our for per a demand cash, in expertise third ended year cash expected in with of third a infrastructure ramp quarter. for quarter as the cash of December out $XX third short-term negative strong to reporting to $X.X

the September ended XX-Q filed month three SEC nine XXXX, we for Form month XXth, and Lastly, with our the periods today.

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

Jerrell Shelton

please Operator, open questions. Robert. you, the for call Thank

Operator

first Thank & Company. Jason Instructions] question with proceed you. Our [Operator Seidl from is Please Cowen

Unidentified Analyst

investment a for Adam little is this targets question. maybe of as taking looking And for looking are Jason. at. you guys talked you bit little approach your first just cash acquisition about Thanks. them targets, coming I approaching is at about you touch more know looking or Hey are Thank and I balance guys, the you an could on on you in guys you approaching on the over? that? all, What and that? just situation for cash are are guys my guess balance bit where you But a balance M&A this taking you that short-term growing sheet,

Jerrell Shelton

the Well, approaching are Targets investigating question. thank certainly both. approaching and us, targets. and for you are we It’s

gained So market, the typical the the of M&A, being it’s in the is lot it’s by A of activities attention mix things. and a market.

these what you would it’s days. So expect

It’s from of destination, in we’re terms storage, before. origin information in. everything to something we’re point and activities. so said companies that earlier, the looking I’ve information filling that’s it’s of It’s interested fulfillment, and is technology, life I includes our type software, of information-type points those that our packaging, expertise, for logistics same as Anything the serving of and mandate logistics the vision that -- of chain activity out the specialty in So that acquisitions logistics M&A of described sciences. the for, kinds

Unidentified Analyst

one for just Got. second me. Thank that. here from maybe a And you

you in more other some like financial looks guys insurance that the or of comparing your I product CryoStork asset-lite, offerings, terms guess product. have, an So that type of of product of services to this is

So products, I that of Thanks. you for more or this kind doing kind services-types are to with of is wondering, And was forwards? you guys? look going look a something you’ll to financial expand thing not more on going I guess guys at of one-off or diversify

Jerrell Shelton

Yes. I’m to will that tell direct going characteristics the to financial-type that looking question Mark answer we’re but offering. is, Sawicki, not products. other of Mark for no, short you more about the

Mark Sawicki

The about short before. answer is, I think this we’ve talked

Our offering management since around our risk the clients. is platform business-to-consumer product for IVF risk or risk product, them. focus management or is is insurance a for itself And mitigation a

ties that back And so we’ve talking been of last kind about quarters. few it that over compliance-related the element to

Unidentified Analyst

guys. from you Appreciate that’s Well, it. it much. Thank me, so Got it.

Jerrell Shelton

you. Thank

Mark Sawicki

you. Thank

Operator

from Our with Riley with next Andrew is Pleases question proceed D’Silva FBR. B. your question.

Andrew D’Silva

automatically just third the in so and Congrats broader if say of with opportunities right trial Hey, my calls, second I they with a far position up trial, answered initiate seeing in getting I already one process, there? between III put I you questions. more earlier you’re implemented you apologize get into you spots your and clinical a in Phase as kind when a you’re somebody partners jumping they for with was a now the a as within some little couple Phase start good curious how afternoon. that or more ramp the of questions. Are I’m as as you’re on landscape. viewing taking progress. you Thanks these bit

Jerrell Shelton

thank you. to interesting a you, and Andrew, I’m address address happy to we’re Yes. really it. question, Mark that that’s answer going to for to

Mark Sawicki

Sure.

And last first-mover entire years the very been on sticky couple very, over early develop really becoming in a advantage getting the to space. clients. is focused So of our in and our strategy we’ve with

all to has so cover aspect platform centered experience, And of portfolio customer itself ever-increasing our ability service of their the their support itself, an around programs. been entire and

or many supporting programs So we have we’re with XX more. one and XX we many, start program to where relationships now

ours. an absolutely of objective yes, So that’s

Andrew D’Silva

you’re substantial little the there would tell? hitters III it heavy it’s at bit Is a space. some about I start on kind a I of we to the level? hard but concentration working a the clinical sheer when customer top-heavy, it’s in of or thinking trial know numbers overall with imagine just based Phase

Mark Sawicki

that. out, I for reports come if what -- this its you position we you space can And fully easy all take think the and Regenerative Well intend quarterly in the far take largest at have our a phases, Alliance look that something share fairly on by it’s on. is to against maintaining market Medicine extrapolate -- the throughout that’s that we and expanding

Andrew D’Silva

how bit, you million $XX commercial that. happens to more where on once stand that little it? products? starting filed, your million now to curious do want $X range, And feel partners these a you’re being Okay. scale it Just you more get little on BLAs view a or you bit about narrow with are Or clarity from commercialized already-existing do and that to good expand you

Jerrell Shelton

Robert good maybe that’s start will both so let’s on comments. Andrew, think and with a question, that, Mark Mark then and Robert have I comments some have and

Mark Sawicki

think a on products, our at that in confidence expectations an maintain I Robert, add in Obviously expectation. Yes. our that from being we you -- commercial experience to base all? on have year want

Robert Stefanovich

No, as and want Japan. commercialization I the the just Andy, support and is only of China Asia, Europe, on you to in a in and that activity clients going moving also our but know, there’s into U.S. not lot

in regions through clarity of get therapies well. those as can evolves, get that So that commercial those we’ll range business as we the to as greater

Andrew D’Silva

plans partner Perfect. believe of different And me, had you temperature your I Last possible subsidiaries. your, dry was to I supplier, had question of for guess levels. partnership was this storage any cryogenic Thank with one you. quasi-competitors, of one announced ice closer capacity a versus moving I if to curious that one ranges? they

Jerrell Shelton

that direct to We’ll Mark.

Mark Sawicki

Yes.

can’t distribution the ice particular The that that most that change is instance history of using in folks had we’re cell-based they seeing they referring you’re liabilities have live inherent this in ice. to, and dry on been for cases definitive clinical there’s So, mid-phase. dry using products distribution, in what a of

And strategy optimize using so and times after and and that that launch goal, a launch their what product then to existing manage package occurs. risk their is, many commercial

and with nitrogen And then option strategy we by. get stick so, out higher to format. the folks to liquid allow conversion ice and of a our which market, the them is quality is those And that’s dry into what to lower transition risk, them

Andrew D’Silva

offline. Perfect. you. going luck I’ll the Okay. else Thank everything forward. time. Good take for Thanks

Jerrell Shelton

Thank you.

Operator

is with H.C. Wainwright. Kolbert from proceed Please question questions. next Our Jason with your

Edward Marks

Marks Dr. on Jason. for Edward This is

have how this recently-opened? you you they do especially some since seen wondering available, trials increase that much you’ve think Just in and only quarter, now they this the centers of open contributed were new logistics to that

Jerrell Shelton

The contribution were they recently-opened. minimal, was because only

Edward Marks

Okay.

So in quarters, more couple them some take next fully more you years the to going you a significantly get think online? expect do of pull-through it’s do to or

Jerrell Shelton

-- now six we to locality, important. these get is centers servicing operational. logistics or about fully up take and location and think new Both operational that generally centers clients. The That months are so our

we the those so And with feel their confident contribution for future. centers and with

Edward Marks

geographies? you’re switching new bit, wondering especially approvals get what the projecting a as they ramp for just in just I’m lot And of Thanks. Kymriah as a different Yescarta, Okay. little and more gears some

Jerrell Shelton

Mark’s him to very that close question. answer I’ll let that so

Mark Sawicki

projections. simple. clients’ It’s very that our it’s mean something We can I confidential. It’s we disclose, on realistically. not rely

Edward Marks

time. the Appreciate guys. Thanks Okay.

Robert Stefanovich

we’ve I $X million Maybe once therapies calls fully those to add to are of prior commercially annualized revenue in Yes. that, $XX just million range to the launched. a given

Edward Marks

for clarification. you Thank that Right.

Operator

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

Paul Knight

you or an for on approved trials? therapies per is -- it of quarter. of the revenue inferred the releasing kind on Congratulations Are number Jerry. from discussion the Hi, the

Jerrell Shelton

you? that Say Paul, would let’s again. talk -- about that, that rephrase

Paul Knight

my in I of think least at that thinking, XXX of really Are question is, all back trials. kind you what revenue can of, And out point getting to commercial line customers? get the then I releasing with but I’m out that the had you’re to you was trying we the was really

you of You’ve going can $XX,XXX Is about trial customer And to ramp kind $XX,XXX customers? these trial up of for talk that your commercial averaged average historically. then, per side? the

Jerrell Shelton

Okay.

disclosed course, of company’s that quarter they’re that had in So, We mentioned don’t we recognition products. as $XXX,XXX any modify like. don’t of on try commercial and to Paul, I take we understand I future we the forecast. the in this In comments your ramp, from in question. terms of Mark earlier, what from to a my way think -- looks And -- try revenue I

per trial, what our In the is talked what remember? it’s Phase range, its -- do what $XX,XXX I, Robert? revenue phase much In range, before. of to to terms -- $XX,XXX pretty it about you It’s of we’ve does

Robert Stefanovich

what indication $XX,XXX II can is, to Phase number patients Phase $X then involved $XXX,XXX. and have is of the trial. have really then to to depends III, in the $XX,XXX up it And be It million. $XX,XXX on we we they

Jerrell Shelton

course, of million depends our commercialization, commercialized. is It’s the then range And million once it��s $X wide $XX to it on but indication.

Paul Knight

develop two that better be that what talk least minutes see? the I Amsterdam? expecting. missed to a is I you Jerry, first at XX? of you Is XX? than cost then so like missed it facility I could the seems to Is what was or $XXX,XXX Okay. it ultimately talk at that facilities so XX? about, you about Is Can that globally, number Livingston it And

Jerrell Shelton

build me network. throughout We will all opportunistic, because secondarily then question And the to we centers based be it’ll based our will map way a on demand. that’s answer, our client of on out Paul, shipments our hot-spots. be difficult for hot

give logistics our for of it’s how be centers So an any about in ultimately will very many network. difficult kind me to estimate

Paul Knight

we quarters? And feel that then ramp over to your CapEx, just get for to cash CapEx on your the four a should refer cost flow last

Jerrell Shelton

reasonable. that’s think I

or terribly not open, are expensive building along. we’ve to inventory and all course centers logistics Our been

it. think I to at reasonable So way that’s look a

Paul Knight

And space? talk can big trial in the of clinical number Or about number tone guess customers? I business backlog? even lot still don’t quarter as then momentum you’re region know a market; of on seeing there’s release you this of I you the lastly, the was concluded, a though

Jerrell Shelton

I’m but -- Well, to going a XXX trials in and medicine bringing know as not. turn that yes, color that. you in or to moment. the give just regenerative I clinical I new But goes, don’t under XX supported you on just more whether do speaks tone it have clinical Mark far Mark space. as that us missed to you it, can trials to And think We

Mark Sawicki

area for increasing One enthusiasm, that a clients, enthusiasm onboard of fact, couple come sources. you is is and in lot of existing different of Our see market the this expansion in still space. from of things one trial the a has

that may And they one XX to that alone. as some the we’re self-ascribed clinical working of many XX these entities just that’s are within as with the space have programs client months. in next And XX

able of a platform of But platform. share. capture very existing the a we’re that nature and lot additional, there’s is our very So we’re to sticky, regulatory-friendly so

ties base. lot traceability provides we’ve and client chain that the a this for Our really space lot compliance a in been into our of security it talking of about, aspect

they in their So we’re of new us the view that option new clients on based still as most continuously support programs portfolios. the and fact adding regulatory-appropriate

Paul Knight

Thank Okay. congratulations. and you

Jerrell Shelton

very Paul. Thanks much. Thanks

Operator

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

Richard Baldry

talk fourth for new for full full gross little Can quarter us they’d a wasn’t costs, think they’d a the Thanks. of quarter, a be in whether the sort quarter in be you to if impacted about about facilities or way bit? the it down for whether the similar maybe margins

Jerrell Shelton

question. Robert’s to that answer Richard, going

Robert Stefanovich

towards Yes. Hi, margin. answer the up brought at you just set gross two them the some your in third question? online were Jersey, the Richard. end So associated Netherlands New we directly in May centers I there we look quarter, of the to logistics and so costs if

around SEC You’ll as see the well. in startup some our additional with XX-Q provided costs that filed we’ve detail the

temporarily covered gross the operational as or an impacted that fully margin transactions, have fully you’ll one see impact will it two logistics somewhat the with for see So centers and quarters. next we

Richard Baldry

one-time expenses comes, startup step really but were of run when operating rate standard sort this see or of a costs -- on those just kind up we’ll is any Q maybe And basis? of it operating oriented, the Okay.

Robert Stefanovich

of it’s Well, combination a both.

actually the still operational. we were moving quarter you And And of onetime we very included cost and and gross is in are on end then operating They’re the so margin, which costs. have still live operating once expenses, impact in margin. the that then towards of have costs of the we’re so, facilities sales, So the line achievable target of the gross XX%. in below XX% the believe operating the towards of the target

Richard Baldry

about talked it Okay. And actively, a acquisitions bit now. we’ll call -- you’ve more

case talk build-versus-buy? on versus or a facility you obviously can analysis use running, ROI that’s and about of like So build storage? maybe, up the use buy a one You time-to-market, could Maybe yourself.

You’ve proven able to do that.

What kind thinks’ So focus? being Thanks. quickly or ROI go you you of into think sort how do more that? longer do to of able the important, market about

Jerrell Shelton

going be efficiency. efficiency, market not quick work the market Richard, -- always can the the most the to serve. effective that sciences the other We support the to into to that’s regenerative something in our we over that approach we of we’re on in the way. therapies about we’re is so approach market segments and to and way service be marketplace, clients, and effectiveness the going to life best don’t We the

that sure one we’re no say how we way there’s effective, we on marketplace. safe, as the be we’re secure, careful, bias go to to -- into to and So the make bias other as only our be is how have into that to expand we or The logo. we certain, and

view my So about question. that’s your

Richard Baldry

you. Thank Okay.

Operator

& with [Operator Our Please question next Sean Needham is proceed. Instructions] Hannan Company. from

Sean Hannan

here ask I’m for Yes. tonight. that the you’re supporting. or you to therapies about Wanted my the products, question sorry, Thanks taking

or ultimately at filing could give looking we assume well of indication you and indication Phase at these be of the to in is process product, IIIs you’re each be some a the the as overlap out can one contribute some of to of that be already trying front? individually around perspective terms can As in that for similar, shipment, those in dynamics, in -- these around you Clearly thinking we you in there overlap to various supporting, same, so, would as just of might to companies a level us terms that are look there’s commercial waiting degree at going competitive for what’s you getting the about how biopharma on approved your get every then the better in about influences there that. filing

Jerrell Shelton

question, a degree. to toil and good we with That’s that some

that that area, not has views share. We’re Mark but we in it some experts can on

Mark Sawicki

Yes.

haven’t, guys if that if and progression for website. recommend have So go overall, different of a Regenerative you at Medicine the programs. portfolio clinical you would you essence They progression these at can the look a the of I take which in to look you database lot a Alliance

beyond over commercial instance, cancer at hematopoietic space. targeting the almost next the of the programs months. look you next In tranche If launch XX moving that are every are these

and things into things. moving other skeletal-related issues cell, have sickle You like and

the near that portfolio beyond the will think blood cancers in future. we diversify So the

Sean Hannan

of kind hit a Can risk space And it talk hospitals, that thoughts be here. over-arching could that helpful. of then on to cryogenic of models to about storage, that where sides That you particularly might the resides -- of I where some wanted be on-site, helpful. some Okay. whether that, you’ve and of and else just very M&A, some degree Thanks. for be whole what as coin? as need hear if both therapies, back as topics That’s evolve of for speculate these or might uptake around you industry the and leading this this from continues set coming how an take see can you ultimately it the evolves the much to interest how be it’s that of on be would would

Jerrell Shelton

at and an Well, over-arching tried that’s all the a talked information an over-arching is on areas little -- broad in that of but our those earlier, logistic about very important The we do, bit for It’s question. theme that services, we chain delivering interest technology. answer I anything it’s in that to us. everything this large. industry a in theme value the earlier, information I specialty thought our to that’s goes -- is

technology So important Storage is packaging. is important area. an is an information as area, definitely

make/buy acquisitions, make at business. terms these of of buy in and and expanding -- do supporting course, risk versus anything of that opportunistic. evaluating and We in look things and do so, versus our important we growing opportunity are And all are factors,

Sean Hannan

Thanks so much.

Operator

for we and gentlemen, turn to our the the to remarks. I back session. like question-and-answer Ladies have end over reached Jerry would closing of conference

Jerrell Shelton

one a the clients me my is just pharma we’re of give our quarter. this for progress say give to the that base client with XX to in on record today, we’re we’re second development like near for but business, get to term, many, and that that joining at we exactly and here, invest call at have we comments. ways the for even so think wasn’t you in everyone growth and We looking to I’d supporting books for achieve regenerative back come. to close high, you only to rates. Thank our will many do moment, as and desk space. always and foundation, you, pleased continue The steady growth want higher operator. Phase not to growing all-time clinical our robust our III Despite some a years number revenue springboard drive strong in I an I therapy to our trials thank prepared our

of continued for our markets. clear of pipeline a earlier have clients chain embedded in the We supply industry. sciences share supporting acquisitions, increase become temperature our this maneuvering the call, control to by Furthermore, even exploring number building and client more to support opportunity we’re in forming the and ourselves gain market by as as reflected life ecosystem our strong mentioned areas and a we in potential potential partnerships expansion and

stronger. day, opportunity market Our our grows it even becomes and larger within every position

of full behalf Cryoport and build I earnings next farewell, on your bid in evening. potential. call to to support endeavor participation a and our appreciate team, So Until our entire we our you its good

Operator

concludes Thank you. This today’s conference.

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

Cryoport (CYRX) 11 Nov 182018 Q3 Earnings call transcript