CYRX - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to Cryoport, Inc. Full Year 2018 Earnings Q&A Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mr. Todd Fromer. Mr. you, Thank Fromer.

begin. You may

Todd Fromer

Jessie. everyone Good good you, everyone evening the West to on afternoon Coast. Thank and

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

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

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

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

Jerrell Shelton

and is this Officer, Mark Robert Dr. Chief us ladies Officer and afternoon, gentlemen. Good Financial Chief Commercial joining you for our our Stefanovich. Mr. today. me With afternoon Thank Sawcki

announced have our call. changed format we this for As

a a our Relations This of encourage answer year not, and remarks, you've call go website This business will to by session, chance of document from in have to we a if conference would uploaded of and in a the therefore and today's I format investors analysts we explaining now, release and document that presentation in seen regarding XXXX format page it, outlook. are our conference results. we you've Instead general performance website. delivering Investor provides hopefully So where prepared but you our download financial be and our earnings our had will to a call events different operational in company's the and today's address using queries, Hopefully recent for instructions the questions have call. it. read review of review

room resource in more interested expectation understanding of discussion. Our provide will those this as in is new our the then you approach that a serve will acquiring useful a for document And year deeper review progress. of for

the over Now I'll open to operator for the turn call the telephone lines to Q&A.

Operator

Instructions] you. Thank you. [Operator Thank

is line B. of the with FBR. question. question first Please proceed Our from your Riley with Andrew D'Silva

Andrew D'Silva

so review. I'm admit, review for Thanks one have have another time, reporting the I year read afternoon. company did I going I'd mentioned in your those taking of did partners? Good questions. to curious, same was through my those were to six, more how you year. of last see Cryoport I time, that filed I and but were MAAs BLAs out that many two it four

Jerrell Shelton

that question. will Mark answer Andrew,

Mark Sawicki

related supporting. to that business six that five we're of were the Of filed, were them

Andrew D'Silva

this catalyst least been Are in, the quarter-over-quarter number that as seen during at biggest history. or is at you that in shipping you And probably well. have - more storage that recent what has maybe And you then standpoint, place and are cryogenic - utilizing was - clinical shift trials Could this view what internally Novartis, from you've quarter? great. numerous with customer, increase subsidiaries you're of since you the you're were total Okay, and who trials over a you to the ongoing took to previously a for seeing newer related describe forms as within looking existing perhaps offering? clients example, other what

Jerrell Shelton

certainly components to long has it, of question. that lot Andrew, Well, a a it's

of to it its because Sawicki. to over So, Mark complexity, going I'm turn

Mark Sawicki

so take yeah, couple Andrew, quarter. number at to particular account of when looking this things you're into trial for our

us of yes, this of Europe network First in But clinical being comes Europe option. we've we've trials sources, of because and from alternative trials one and and our component base. client in it mass number additional and or critical the foremost our as growth is, XX may a the two about within for second was, portfolios by an a the number that hit reported for has have net well, quarter out reporting trial supported base And an of that trial existing second started is, number. add been are is, the is, also that of expansion seen playing trials third-parties different supported additional the number overall

And so of combination it's both. a

Andrew D'Silva

Okay. I see.

US just in quarters it the you or past that so was - And that were you the trials not did including years past, number?

Mark Sawicki

mass Correct. Well Europe. we hit in a critical

appropriate we as reporting on that So was to well. start it felt

Jerrell Shelton

the Andrew, on a actually year you'll there's in see trials the different page color in the on for chart European review, X.

Andrew D'Silva

XXX, how doing together? see view And you're know, just out it. potentially curious were it I was digested how effective, this event will with that and all I current you that anything absolutely. just last curious haven't saw that, tied the just quarter month. Gottlieb fully guess that one is yet, just And of I you I you review a impacting, I obviously more or next kind time, I see, benefiting but Scott if I pursuing everything ISO just resigning

Jerrell Shelton

didn't get So it? - the question. you get Did full I

Mark Sawicki

Yes.

early or any not the So, from medicine Gottlieb our the it's regenerative whether get honestly impact space. far have too announcement perspective, understanding of it'll an to on really

to he filings year is everybody out timeframe. before. that XX up within the January a back He anticipated think seeing in XXXX-XXXX I quotes put he resigned where

early correct. too or far his obviously Our on will whether not expectation that that's to it's strategy. any But is have overall resignation understand impact absolutely and hope that,

Andrew D'Silva

perfect. Okay, two-part last And question, actually.

a potential investors to repository is from your a when space? you off-the-shelf it related strategy, off-the-shelf question And M&A, the or to a are to aspect? you're how related is from the this M&A so different and about thinking thinking things play just lot activity in get related market about I you Just

Jerrell Shelton

look look on Andrew, terms now of of we'll area the space talked we and number adjacencies other mean today, companies, footprint. the like, again, that look in look and we're increasing manufacturing services what we our are this we that talked and I we at software we'll about adjacencies entertain strategic our where expand those to depth very past company. think things our in have a fit in We'll at at M&A in in of at about with what what times of we right do, the And in components by advantage. provide we're storage that software at we'll we'll also some we the and look past, measured and or could like

yet at So, we looking have definitely trigger. but to pull the are them, we

Andrew D'Silva

of off-the-shelf the side on business? And Great.

Jerrell Shelton

Allogen? [indiscernible] the about talking You're

Andrew D'Silva

Yes.

Jerrell Shelton

are developing forward great because Let I'll me to it turn we looking development. it's Mark, part business, to business our a and and turn that Mark, part is that a of our to of that

Mark... So,

Mark Sawicki

big well a portfolio late allogeneic are players launch we're any therapies on dealing in support of basis. those allogeneic We're space very extremely to with pipeline our of the any Yes, on active activity strong. is situated and that phase clinical with the eventual most global

Andrew D'Silva

guys and perfect. offline. forward very you that's all much I Great. to look Okay, Well, talking have. Thank

Jerrell Shelton

Andrew. you, Thank

Mark Sawicki

Thanks.

Operator

with Our Instructions] [Operator next Please proceed you. Thank from with question Baldry line the of question. your Richard Roth Capital. is

Richard Baldry

Thanks. QX the not smaller either appears is of data. a or in for reasons think XXXX's periods about or past you when cadence? than necessarily and ending is the look versus the there's think revenue too year amount we it seasonal including seasonality QXs. real When a couple believe It's XXXX's in that's in years of seasonality that pattern XXXX maybe there at stronger starting sample, Do small year to I not, data commercial it a

Jerrell Shelton

deal weather, by lab number things. it's us with call call clarity. any and by we early can seasonality of Rich, kind we can affected affected to We But we releases affected products we a for be do - with of be to can early too that's, it's by by be think that. too

Richard Baldry

systems. Okay. an too expansion approval in saw you put to and And about feel its that, Japan need there Europe beyond? for we what early think a is we plans area, the infrastructure Do it done like or in is facility through how APAC you've of in first recently in regenerative XXXX your similar dedicated do therapy its another

Jerrell Shelton

a in own number is no Rich, and APAC, developing APAC today. question we there we and is trials of support certainly have our that

this on be more will no evaluating we it, point. that I comment come So there at have further but and are to on that

Richard Baldry

right. you. Thank All

Operator

Thank you.

Please is question. Our of Stocks. next from line proceed question On the with Smith Smith your Larry with

Larry Smith

Thank calculation your you. Kymriah I to to do try to a those revenues Yescarta. and of relate

is what and reported and revenues by I Gilead the by that divide revenues do products report simply So you commercial from take Novartis.

that the do the your in the fourth - X.XX% Yescarta X.XX% quarter. recorded X.XX% quarter X.XX% if second quarter, the third I in my So get quarter, that, just is your of were can explained and in I that to increase of in correct, sales revenues be receive that first going Kymriah of random, kind are If as it's CAR-T or curious very significant revenues numbers a in you were along? percentage I'm the numbers this those whether it's and whether - and

Mark Sawicki

answer Yes, happy I'd that. to be

activities consulting, always supporting streams ancillary program these these diversify as So there's given tie one of lot activities the things particular that the work our our is the standpoint, launch on within that things from ongoing global to and other projects. our a relationships support do or validation of a other working - existing and other of therapies launch into more management revenue basis, ramps we're and

doing increase design, by reach it's to goal the the for to always depth So of try is we're and accounts. obviously our what you these know,

And effort. so that that's of evidence

Larry Smith

in I I over to in forward XQ, into revenues? used a then If are something revenues that like opposed the X.XX% as XQ of revenues use to should that my and use increase XXXX should I there project of Yescarta numbers percentage is Kymriah quarters? the correct big X.XX% -

Jerrell Shelton

to question Larry. We'll Stefanovich, direct Robert that

Robert Stefanovich

we as stream as and terms at revenues, I'd work in support. you I with other Kite, already well an months you engineering we that the launch both mean, provide Mark activities to additional broadening that then with increase we the go that commercial part as next last revenue the into as are directly Novartis further services, it consulting when that with average and within year, on related see going Kite provide broadening response, tying you But the the in revenue, and of revenue both Novartis. forward. use percentage percentage. should to latter mentioned the we two, based of of three can Yes, other just look services his services probably to

Larry Smith

Okay.

you a me hypothetical ask Let question.

gene - were moving that and from to estimate number patient. net in may from price which or less, you're number million, I'm products doesn't that company be CAR-T are or to a where the about or amount you company patient much proportional million is million [indiscernible] supply a $X revenues about net $X that three be What to and therapy to of curious price derive less my net where revenues be population CAR-Ts, you would is, patients treated? patients, $XXX,XXX where gene number of patients proportional as same As but be you of calculation my the dealing selling of a per gene might you a and of somewhat of therapy logistics therapy have Kymriah to Yescarta the the $X with such if only might

Jerrell Shelton

related the and for so, the It's the indication revenue therapy. on more and be It more so, - it to depends it'd dosages, Larry. or depends patients, on patients protocol

So, both to the relate patient would things as to the those opposed revenue. of

Larry Smith

site. if your or of the new the are could is Okay. And will course, that meaningful question. perspective facility, one way kept of cold down allogeneic are assumption probably my case which And part that a of if the me if in seems I cells an line, therapies you would to allogeneic you on-site final if - correct? ask on so, is put In that it how CAR-T business need therapies,

Jerrell Shelton

bulk correct. both a of allogeneic, now as for assumption your be There variety in models is on-site. partially developing and of as is will being Larry, autologous and shipments there right well allogeneic Well,

touch are market with And so, we are we our various are with models. clients in and and in the we developing touch

to and evolving move not I of sort this athletic market yet this to an serving company be evolving stance, be is As direction any is I business, the in always we're an that you say, clarity in have mean in evolving there. ready the market. because

serve clear but to that They both not and very be market. how will allogeneic several us deploy think it's So are impact for models very, allogeneic of required. to exactly we we either ready when market we have we the the - are ready do good

Larry Smith

Okay. you. Thank

Jerrell Shelton

Do you anything to add, have Mark?

Mark Sawicki

Yes, that. add let other just element me on one

key client a with very strategic our looks the we work product almost what that very, closely of that cycle One help on is, do basis like. base, to define life we

these large would through as and that role in that a we process so sit we go And - commercial folks they down fairly with we strategy. play readiness

design ability helping to overall that. from so strategy, a they market whatever standpoint, have role the we significant access And regardless, of in have have Jerry a like - said

Larry Smith

Terrific for my Okay. execution. thanks taking and questions. quarter. Great Congratulations,

Jerrell Shelton

Larry. you, Thank

Mark Sawicki

Thanks.

Operator

are further Thank you. this at There questions no time.

to over closing to back comments. for like management I'd floor the turn So

Jerrell Shelton

you very exciting Cryoport. I thank It format our today. was we brief see us joining and future of you discussion. for simulating new you ahead helps hope Well, us like all see that the at a it And

bid next you the we call, until So farewell.

Operator

Thank teleconference. today's concludes you. This

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

Cryoport (CYRX) 7 Mar 192018 Q4 Earnings call transcript