CYRX - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. This is the conference operator. Welcome to the Cryoport, Inc.'s First Quarter 2020 Earnings Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to question. Instructions] [Operator

like of conference KCSA. now Fromer, to turn Partner Managing Please to would over the Todd I go ahead.

Todd Fromer

operator. you, Thank

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

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

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

are events addition, to subject results, projections. actual to statements and from could present cause risks certain our expectations and historical and or In our forward-looking experience uncertainties developments materially differ that

but Securities uncertainties and described those report Exchange risks reports, other in with from Securities Form to filed annual the described with factors and are XA, and Commission Commission. include, not elsewhere our limited and on filed time in XX-K in and These Exchange Item the to, risk time those which we

Shelton, Chief of now would Officer call like over I Executive to Jerrell turn Jerrell, Mr. is the to Cryoport. floor yours. the

Jerrell Shelton

ladies joining during time. us Good Todd. for afternoon this you, gentlemen. and you Thank Thank special

integrity them, actions the entire with our we dedication, operations. want Cryoport a pandemic pandemic was ready the and our declared, of of people safety the when plans I about coronavirus talk actions, to begin, and and our ensure we the Before team. of to Thanks to were commitment moment

people people missed working appropriate We have entire and No some network the aid of practicing function do or remotely continued communications to seamlessly. missed technologies, from logistics been precautions. has a have Our shipments we offices have collaboration global and working operations while have delayed, not beat. with our and the

In actions when by effects I'm we and COVID-XX large controlled pandemic. total, the at and our our and planned, taken have impressed way of the have the responsibly personnel appropriate acted acted necessary. the team

afternoon Chief With me this Robert Chief Sawicki. Officer, is Mark Financial our and Officer, Mr. Stefanovich; Dr. Commercial our

the we uploaded in have As & the review It first general website. Events in review of section document reminder, XXXX recent a section. operational our Presentations a financial under and outlook. performance document provides quarter Investor our can our be and to Relations found This business

go to download you would not the If it. encourage I and chance you have had to to it, a read website

will As addressing regarding move quarters, we queries with you Then with on call, your previous provide update. to general we'll this brief results. company's our a conference

XXXX, representing million of $X.X quarter commercial from contributed XXXX. Novartis' first revenues first primarily quarter the of XXXX. a our of supporting quarter and increase from the reported driven $X.X the of XXXX, the first increase KYMRIAH, was in to record We revenues quarter an by YESCARTA million first which for of Gilead's compared agreements XXX% XX% This of

In addition, million and was in last numbers. year's not bioservices revenue included $X.X

for entire solutions. April, covers with that therapies which We for in well are portfolio as -- Cryoport, temperature-controlled Gilead all as YESCARTA report its development pleased renewed to Gilead's in agreement of our

these commercial to YESCARTA in APAC patients products. the and Americas, expect agreements activity, supporting to as ongoing EMEA, ramp drive continued rollouts and of related our KYMRIAH the We both to in

bringing from the the the even life-saving market and challenges with pandemic. continued commercial resulting focus biopharma for the filed market, first end, on therapies these a and XXXX quarter Cryoport-supported to approval the quarter uncertainties during of third therapies subsequent current in potentially Two filed to the COVID-XX demonstrating

are the our we industry, healthcare have spread any the impact COVID-XX clients. to and of on solutions logistics carefully potential may mission-critical monitoring of providers it As

the resulting a we meaningful our portfolio to trials number COVID-XX paused. pandemic, commercial of have disruption experienced have we minimal support temporarily While been from our clinical

none have that COVID-XX. trials, been our pleased a are result of our as knowledge, to terminated of We

proud world As I I said our confident team mitigation of today. ability business implemented our markets the in who at uncertainties our navigate have great leaders plans, the plaguing beginning, I'm multiple and of am to the and

have one is cleaning that during As considerable continue lynchpin best-in-class this processes a and as disposal, have business sciences industry continued a a and life on our mitigating -- that is allowing resilient at validated having and the to supply risk disinfection supporting a us chains, prides we time. to resources business fortunate that to business, operate are this itself effectiveness, in ensure and to

off soon not as be and, to a laid course, our soon approved. paused have commercial pandemic employees a expect as trials We of trials the and begin in result are as as restarted, any ramp of they new products they on as to support position they're immediately as up

meantime, we power everything to will against the to the In contribute in do COVID-XX. our fight

logistics currently and clinical means Cryoport, COVID-XX providing we vaccines. For that trials support for that treatments six this potential potential for comprehensive are COVID-XX --

development and life in industry proud to a these needed and high-value in leader position our biologics, expertise life-saving sciences cell temperature-controlled vaccines. the therapies use gene therapies, the and logistics support much of vaccines As of other be and we to biostorage and advanced to fragile are

which technologies. strong based pioneers from on unparalleled our solutions care sheet, Fortunately, we cutting-edge advanced most sciences with base, also along leaders health consistent which life long-term balance includes we and are exceptionally to the and loyal benefit to agreements partnering solutions and vital We the with client supported attribute industry. an performance, industry providing by experience, a our

we to solutions. expected in for continue we be our in future, supply growth execute our will the confident demand capabilities result, can chain a our and in As our plans anticipation of to on expand

the the Now, your I'd the turn for open over call like to lines to to operator telephone questions.

Operator

Thank you.

Instructions] session. [Operator question-and-answer the begin now will We

of Puneet Please Souda from is question SVB ahead. go first Leerink. The

Scott Mafale

taking is Thanks the for This question. Hi guys. Scott Mafale Puneet. for on

bit seeing in do slowing dive little the curious pauses be kind recent to the trials paused, and to want you you weeks. a expect rate Or it's Was delays been trial going that new been of have other most of if kind paused has words, in more of are mentioned. behind of the that into I already So, that you're you?

Jerrell Shelton

I think a Sawicki. that's question for Dr.

Mark Sawicki

starting Thanks. from seen and perspective already our Yes. actually the We've improvement we're in see activity volumes. bottom some out, to

cautiously going we're if So, obviously, it. to that over But optimistic that's to we time. come starting we're out can't of consistent be determine

Scott Mafale

on Is kind in of it's even moving expect Should trials. was Okay, And great got some to would more can beginning as a be year? that the Just And expect commentary -- of can we it. that the out this it? COVID just throughout you more you from we more this involved tailwind of we forward? guys provide helpful. are move see business any

Jerrell Shelton

support in COVID-XX us there's that of say asking more asking? to Well, that's the for you're really -- can issue. Is terms hard if we give to what you're

Scott Mafale

Yes, on bring from mentioned? if you you more six maybe any expect to the trials

Jerrell Shelton

Go ahead, Mark.

Mark Sawicki

to I programs, that the do portfolio companies is determination we're constantly requested we them additional expectation line If Yes, a make different them. will bottom that is to aspects. being mean, of support get start any our by our

a net there's of upside So I six mean, already.

we're and impact we any obviously, seen supporting of that commercial trial clinical haven't our total material the But from activity on trials number activity, core perspective. that of

year. we be commercial which that going still commercial year. still filings, So, had And already more to XX forward six three think looking approvals there's filings three we're and next this to

we're So, very positive.

Scott Mafale

maybe shipping the the Okay, Could any international Thanks you're over to of the got difficulty the how you just in talk could just just business. due European of more there. business internationally speak slip guys. about If doing restrictions? is if into one just general, state it. the I And and in on business kind about running

Jerrell Shelton

Mark, you-- don't why

Mark Sawicki

very I the an Yes, tracking We impact to to last COVID. U.S. activity similar due mean, saw is Europe the due month to

there over are loosen restrictions, activity. starting to an to With the starting the we up in of some increase see countries

Operator

is next The Couillard question Jefferies. Please of Brandon ahead. go from

Brandon Couillard

of time. existing color new in with later you we've were Thanks. coming perhaps now clients additions later-stage II, that Phase trial of Any those in outsourcing can Phase mostly from move share new new in Jerry, but those number gross are clients they some in-sourced into just or Are some as adds? III clinical were -- stages? seen the

Jerrell Shelton

Mark -- from but mostly It's clients, and a progression. that. natural on end let combination it's a comment though, I'll just it's

Mark Sawicki

I on a a whole. we mean, acquisition very our sales have Yes. that, with add organization marketing But aggressive policy to as and

And So, represent to much quarter. over in our we can. actually is to biopharma focus that capture trying on that clients here is on-boarded new time we XX market the as really share

think that I going well. is strategy So, acquisition

as as Jerry in-source been has in client activity portfolio. adds so had trials mentioned, a that of combination well the clinical existing our as And

Brandon Couillard

respect to with us update with you can existing share Any asset--? sort of with cross-selling customers

Mark Sawicki

you what out. With sorry, assets? cut I'm

Brandon Couillard

cross-selling or think traction customers newly biostorage, existing with business? of You the progress acquired any terms in bioservices

Jerrell Shelton

progress it of Yes, has there. coming using we Most made been Cryogene. Cryoport to from systems have clients

So -- that yes, we're progress but anticipate continuing. and making

Brandon Couillard

Okay.

on with up soon? update coming in Lastly, contract and for nice Kite. progress term of which I the a think Novartis is KYMRIAH renewal, terms side Any the maybe with per-year renewal

Jerrell Shelton

working on Mark on comment it? Yes, is Why that. don't you

Mark Sawicki

that extension I and short Yes, we time in those along negotiation able with to for active period. Novartis, we'll that lines in something anticipate announce we're mean, relatively be

Brandon Couillard

you. Very good. Thank

Operator

Knight The of go next Paul Janney. from question Please ahead. is

Paul Knight

the academics quarter, the on largely suspended Jerry, Hey this? were in XX that is doing that

Jerrell Shelton

to answer have don't you Mark, so--

Mark Sawicki

Yes.

the at sites. seeing is, clinical we're accessibility issue an what So, it's

So, COVID. activity you supporting announcements clinical Hutch have and they're Anderson any MD they're essence, not focused in because Fred like accepting folks from and that on

supporting they seeing across are these clinical So, we're majority are phases. the of spread of that vast access But is around COVID. what out programs sites all into focused

Phase to not spread it's It's II, over demographic. phase, and given particular III I, So, programs. any anything out

Paul Knight

numbers us, -- within XX? that excuse gave that me, of XX in the Yes. gain COVID six Are client you the total trials

Mark Sawicki

because No, after first initiated they end the not they quarter. are of the all

Paul Knight

XX that feel hoping had five it's XXXX. then also release, approvals this Thanks. you additional Okay. now? commercial don't I announced, but the you you and are in filings in previously How year for about And do BLA think

Mark Sawicki

more. had to year least we're date supporting, that and We've three this already at filings anticipate we six

track So, I think put with that projections initial we those we're relatively out. on

Paul Knight

it. about Jerry? on you the things are how side And can the Okay, got there, talk reproductive of business, going

Jerrell Shelton

Yes, and reproductive COVID eggs -- the business personal and most because impacted it's sperm of in It's the most embryos side business transporting the the of we're the pandemic people. of many ways. by part was

was so And impacted. it

recover larger month. active to practical. the of that now. business again to their we in operations come stage to recovery But suspended that They anticipate clinics as and Some is starting a are for now soon back it as be actually

Paul Knight

I the you operating, lastly, commercial air in of affecting airfreight's under course. FedEx guess, all? disruptions travel airlines obviously, the are is I know, others then and pressure But And commercial Okay. side. still from But at

Jerrell Shelton

And to able for it's any We've able been had that No, due has definitely it openings impact, and is shipments fantastic to -- lot we've and a we -- missed all. consequently, logistics we without at department, we've workarounds created so reason of people, and it's work. you're haven't been a that. establish our alternatives the missed have though. But handle an and right, and any or -- to

Paul Knight

Thanks. Okay.

Operator

question Please ahead. The from next Johnson of Stephens. go Jacob is

Jacob Johnson

Hey thanks.

First, we Or should of just this on renewal Does of change of sort the the this any agreement? three-year as Kite/Gilead. just extension? economics view a with that

Mark Sawicki

We view as three-year a extension. this

Jacob Johnson

there out lanes it. seen traffic. on in in to big longer term. able seems up you the It there. some near shipping slowdown of could But air commercial been Got then look it following using? pretty types Obviously, you've Paul's the term, a maybe And structural like shift mitigate were as question in be we we've

Jerrell Shelton

we no. No, the answer short is No, -- no.

so fully Our do logistics have what's control forth. a happening on vision folks under the and in and future have it

dialogue on. constant have We going

Mark Sawicki

-- consumer our obviously, we very very network us has volume mean, integrator network the in freight be shift creative strong and in the with in can ensuring freight into I Yes, to pretty networks seamlessly. flexible relationships the allowed that from

Jacob Johnson

shipper expense as maybe you're it. on of work? the we more is And question, particularly the that for or Thanks line, additional investments making final to side, color sort you on the of this Got engineering related the And think can some itself just that. then should there? on operating give software

Jerrell Shelton

It's broader that to actually I'm to he'll more just give Robert, it's and a you broadly. shipper. some detail. But going than turn more

So--

Robert Stefanovich

and significant there's while solution underway bringing for and number underway to now, a level. our relate are Yes, the next all to of a it that been have broadening and they initiatives

really software, initiatives significant shipper in So, we're having to some related also the advancements communication, to potential technology.

to in last have the and really as and we as in and one reach that, are then chain client discussed in EMEA, of to and expanded the our New to sales two we start process in a supporting Houston sales global we addition quarter, global up that, centers, in one our force. Americas, We've handle regionalized expanding And And we Jersey. Asia-Pacific addition organization the restructured now supply to base. setting be

Jacob Johnson

Got and taking for it. Robert a lot the thanks Thanks question.

Operator

question Unger The of is from Needham. next Steve go ahead. Please

Steve Unger

been Cryoport regarding And the regarding a so, Hi getting any and of and make Is vaccines? of how Moderna. developers, your -- specifically is COVID-XX from lot vaccine in COVID-XX everybody. if opportunity in revenue I've Thanks. Great. can this investors you a involvement questions how meaningful comments in near-term? there

Jerrell Shelton

Okay.

anything -- specifically for vaccines to they depth. specific and policy are much there comment a development These don't supporting. us any that are So, very in are it's and it's really we client. in right about too that we're on treatments We early comment now,

group, like a are that? to that's we add but as would So, to what supporting. you Mark, --

Mark Sawicki

of add I a Yes, to can little color that. bit

bottom-line or that locations. distribution programs as logistics to that physical But our their any we're vaccines, programs we're for any -- out we're of is, with can manufactured relationship of COVID being supporting it all six product is, one -- things space. in obviously example, the I point in Lonza, in supporting treatments relates supporting So, six the of

So, contract role play if manufacturers, they're in that. we going into will third-party a

Steve Unger

believe second suspensions? Got able then in in it. to the some is expectation the comes suspensions, Are the it what your that? impact And the first for there to from And quantify I the when impact quarter quarter. you was

Jerrell Shelton

look, some the patients the with the some of access to -- that continued And for suspensions, mean, in the just facility. inoculations the trials the has up points-of-care their will are and some staffing haven't we -- It's forth start and I at at exist, quantified this -- that. to again. to and run, particular we cases, the so do way

up, it, So, that and for more any think unfold it's -- here hard We will it we quantified tell to it's that and you on unfold. but can't think so you now. that's loosening color to we how haven't us right going But shortly. we give

Steve Unger

it. Got

then there whether States, the or either patients in United in And commercial on heightened a or to of be just is Okay. this KYMRIAH during period get it involved therapies, YESCARTA, reluctance Europe of lastly, COVID-XX? sort the

Jerrell Shelton

answer is the No, no.

on saving pandemic. we that save And throughout lot commercial activity Our has are tragic with helping absolutely this the -- a up. whole stayed we lives situation we're have going

continued has So, no been in as answer stay reluctance the tell commercial up. by short no. volume, There could the is you to our increase, has

Steve Unger

Excellent. Appreciate everybody. the Thanks answers.

Operator

from go Andrew The of B. is FBR. next Riley question D'Silva ahead. Please

Andrew D'Silva

afternoon. Hey doing hear glad and my sounds thank everybody question you. and also to Good is just Thanks for well. healthy taking

COVID-XX of ones is question to to out way. First get the

therapy You shipper. advanced previously the mentioned

point I clients just as if to that So, a more talking was talking you're became right curious of now.

obviously, just macro then disruption of a And a from lot standpoint.

bit on new You M&A Any now. have a that Any up falling capital companies little are looking to amount scale a right with opportunities partner? maybe times harder that a ideas up? significant of pop and

Jerrell Shelton

Cryosphere on -- advanced the an shipper? and first there advanced So, the question was therapy the Andy,

Mark Sawicki

Yes.

Jerrell Shelton

yes. yes, Yes,

I'll Mark part. should So, take that, take the and last

Mark Sawicki

Yes.

interest short include does -- is, defined hasn't but the reduction in in only very general COVID, has So, against product a call methodology what been space because the that ATS, has clean -- yes, a is answer demonstrates contaminants, tested uses against cleaning coronavirus doing, coronaviruses. six-log which, in interest implicitly patented which in our been It general. tested in a the validated is methodology, in it there ATS we particular line increased our

the I'll second let on piece. Jerry comment

Jerrell Shelton

do But is mission for have are broaden we we're pipeline, in we looking looking have our this and question But that the at nothing second and companies -- strong opportunities our particular that time. a opportunities. Your our acquisitions and can was at in And footprint underway further are definitely we at we our support in footprint adjacencies. the and position. strategy and the answer about

with actively are right So, but that. that's now, where Nothing we underway looking. we're

Andrew D'Silva

was you're some implement that upon bioservices if And spending of expand I website. I to some time additional trying you through great. just now. was just right combing could the Okay, curious your

Outside tie how regulatory of that ahead. things services, can you and the well, packaging drug leasing to go would like Cryogene, about storage, logistics and QP return, right, -- talk

Jerrell Shelton

I'll bioservices or Those the Plains, first of year. let this Cryogene, and was bioservices Yes, that New that and Houston, next supply this. -- Texas. is Morris be beginning. we global supplement Mark two then should Yes. in end have But we're of developing we're year at the in building the facilities Jersey centers part do And on line operations new chain

and be labeling been they revolutionary-type in supported before. kitting supporting way a they'll facilities, never that and have providing But therapies

those So, that that's evolutionary. we are is that -- in is have Cryogene. and The today. It's services, Those today primarily, thing biostorage development. don't we offer

at can we is do in precious just that. about other but we -- biostorage cetera. And It's services process. we're et specimens, particularly we that operation handling looking offer there, There's -- new nothing that

on may comment that. So want Mark, further you to

Mark Sawicki

Yes, is behind it's I point by being the bioservices request. mean, whole the competency client driven

very have the portfolio. come allogeneic to and needs, side support on have able us -- storage very a their track and record They the particular, the of strong business. to in asked of to aspects, strong the We us with effectively they've support relationships we being

in particular, of And a have BLA in them. the lot bent pending to an filings XXXX, allogeneic

expanded requests something significant that's as also temperature well which So, ranges, competency. into bioservices had fall as would on that we've that

Andrew D'Silva

Okay.

between under mentioned many calls so MAAs now, Do you And have been bit currently was and/or great. a earlier. hopping already are filed? may this. right how little Okay, review BLAs have I know you

Mark Sawicki

Three. Three in XXXX to-date.

Andrew D'Silva

more-- And how many

Mark Sawicki

approximately year. I'm this sorry, six -- we And another we six I anticipate year. anticipate this another another approximately said

Andrew D'Silva

XXXX? how many from know outstanding you Do were

Mark Sawicki

XXXX yes, outstanding. From from well, three as --

Andrew D'Silva

Okay.

great. for just Okay, me. question And last

that per just is just we bioservices, when do storage P&L? over from kind of and talking falling should Cryogene expect about costs that, bioservices see just you that in integrate shipment you or increased ASPs how additional to result something exclude we're the to As

Jerrell Shelton

to coming supplementary to be of I as it's what XX% our logistics. We down pathway, be that we'll -- allogeneic. it's know trials new we're down to service commercialized. there it's And is ready for We It'll mean, come quickly. and going allogeneic. getting are the category

Andrew D'Silva

Okay, and XXXX. you very healthy great. luck much. throughout Stay thank best Hey, of

Jerrell Shelton

Thanks.

Operator

session. any This I question-and-answer back over the Shelton the for Jerry like concludes turn remarks. to conference closing would to

Jerrell Shelton

like to we I'd operator. and crisis. you, the challenges ability ongoing highlighting Thank this our health-driven adapt by to uncertainties to new confident that in by are close call presented the

strong. Our is foundation

expenses Our out and are market that, delays mature and potential its processes, due carefully will products, continue regenerative of and position systems. and the managed, its have Cryoport to confidence build continue to to provide opportunities to we extend market-leading medicine partners, further ecosystem to notwithstanding COVID-XX,

relationships to difficult strong, prove across-the-board our harder ever importantly, ourselves clients and we partner as during our an Most are working are outstanding to than these times.

closing, to your our our good In to our our future. Until thanks business in a all next loyal we evening. heartfelt I'd ongoing earnings and extend you bid like of for belief call, shareholders our

Operator

conference today's call. concludes This

lines. you for may and disconnect Thank participating You your pleasant have a day.

Cryoport (CYRX) 10 May 202020 Q1 Earnings call transcript