CYRX - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Cryoport, Inc.'s Second Quarter 2020 Earnings Results Call. Today’s conference is being recorded. At this time, I like to turn the conference over to Mr. Todd Fromer. Please go ahead sir.

Todd Fromer

operator. you, Thank

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

Jerrell Shelton

Development this Mr. is call Investor We our Relations, Heinzen. Sawicki; appreciate Commercial Robert today. Officer, our of our and Chief Thomas Todd. you, With joining you gentlemen. Corporate Officer, President Thank our Vice afternoon Stefanovich; and Mark and Chief Financial ladies earnings afternoon me Good

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

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

to and We company, focused our continue supply chain we previous we'll general the by addressing conference technologies regarding sciences compared the external that, I'd this realities to of for saw reported will world, of our your a continued the around solutions Then million quarter and network. life successfully supply our health supporting increase $X.X second mission reflect our work through of colleagues results challenging and life innovation, our comprehensive XXXX. on growth Thanks tireless this chain second update. the and our of with temperature call, remain reliable navigate global caused like of the provide industry delivering XX% the XXXX, where when pandemic. despite year-on-year second you strength control to move quarter for by the brief an Company's resilience and call of queries on with we advanced quarter the environment revenue of start As COVID-XX quarters, the by stating to results. to we we

quarter in when Gilead's compared by $X.X increase Our the XX% with of quarter contributed our agreements from a Novartis' the representing primarily KYMRIAH, YESCARTA growth and XXXX. XXXX, which revenue was commercial of million to driven second second

acquired. was as from year, which the addition, was to by compared $X.X it which partial was represented a $XXX,XXX.last quarter Cryogene million was In revenue bioservices in revenue quarter,

knowledge had sponsors remaining the of and trials to quarter None treated. restarted our the were the end second suspended second terminated. Although clinical quarter suspended as clinical worked we pandemic, COVID-XX due trials been only during three remains of the to are get that patients of hard XX pleased their trials to as

the manufactured therapies solutions intensifies Gilead's We by temperature life to see Cryoport KYMRIAH control second approved momentum which YESCARTA and FedEx brings commercial demand TECARTUS of Novartis the chain to therapies for our continue the solutions regenerative development control temperature Gilead's accelerates supply with and their industry The support number Kite, Bio. TECARTUS we to for agreements the as quarter. by ZYNTEGLO by YESCARTA both sciences of Gilead's FDA in regenerative and renew and Kite X by during Bluebird

the Through support capabilities global supply by innovation, Maraleucel Bristol advanced supply our recently technology leading network European for was position and cell further support developed by Squibb, In growing, high providing and our chain continuous alliances extending global industry. Cryoport Agency. our sciences We especially value, Myers also control for in industry, position which and temperature achieved building gene therapy a market. saving validated fast and Medicines the has leadership the chain life life of

special step solution to are network. I closing This balance to flexibility debt chain with Express important region, Medipal comments, for to supply gene grow We services successful Cryoport us this to to the advanced and and to or is our million, and of significant to us footprint. network the development an market our that offering acquisitions and like further and integrated specialty complimentary In one robust cell the position to Express sheet of development with of our within in distributors $XXX is competencies have technologies continue signed with supply either my team, therapies. supplementary develop us Japan for our chain our Holdings, invest would global addition, provides convertible of partnership a our an provide helps supplement that new partnership leading our Cryoport in distribution global in and our APAC crowd mention pharmaceutical

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

Operator

first And Instructions]. go our Please [Operator SVB Leerink. you. Puneet Souda Thank question with ahead.

Unidentified Analyst

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

are to how I doing So, want Jerry. --. Hey,

products you're in about supporting. ramp in TECARTUS business you the to products two to between the And the trajectory It's business. host should XH add and commercial of that closer ‘XX BLA I to and about given in to dynamics into these terms past cell overall the first want commercial in of firm advancing life-saving So we the with and you're of the great the of talked the get commercialization, just business? how the monitoring, guys up think see

Jerrell Shelton

Dr. great question for a Sawicki. That's

Mark Sawicki

a so Thanks, products as obviously, From fiscal and the start with will Jerrell. launch, think absolutely associated TECARTUS revenue I let's think Yes, we these I year that with perspective, in this TECARTUS. see have our KYMRIAH. ramp seen in out than bit a either be YESCARTA than time. on or you at this slightly less Probably up would point will KYMRIAH from YESCARTA [indiscernible] and top little faster

going ZYNTEGLO, be a bit that's to to As it relates slower. I think

probably year. revenue XXXX, start we'll see this nominal with it’s a be I to in associated fact, way. In think meaningful And in contribution

Unidentified Analyst

I a quarters incremental appreciate you color it. Thank on and the guys be that, trials expect supporting, as just into if participate that scale there one there's got of these Cryoport that. COVID you in the into we kind of should to of that so Okay, out rollout? XXXX, supporting Cryoport And future candidates we are large vaccine the commercialization for expect look to we

Jerrell Shelton

think that. Sawicki I going answer Dr. to

Mark Sawicki

high little of give me level just of a bit a kind let here. you Yes,

the warp confusion there around still in operation state, time, support States rollout done from completed from perspective amount this vaccines coordinated a of and plans at or the part this So are is significant are that for logistic unfortunately, COVID-XX the a speed in far of point point. vaccine the are United our fluid in at

whom, our companies -- our confidentiality, -- to -- likely We obviously, early goal that’s point. will So another patient effort, support to global of support to this program, XX we to to And with or XX be disclose figure point perspective, population tell due clinical treat out going to a we're to it's kind in but one have how from it's time. and and most we're lot thing to a it's at supporting going involved. is doing it's of be you what quite definitive this this too convoluted can't anything to in

Unidentified Analyst

Absolutely, funding you recent biotech for does seen, clinical trial been sure of on guys kind How the definitely an I'm there's just market. uplift your lastly business, the views that. as guys okay, the I at capital top seeing kind point in of to and the impact begin And trial have the appreciate in more kind months, them? this Thanks. the just into could start of you support you where trials business? are move clinical funnel these And of of activity

Jerrell Shelton

We're seeing to a you want do of activity. lot that? Mark, comment on

Mark Sawicki

of bullish assets on Yes, into we're continues amount space. the I put obviously, medicine, industry the clinical to regenerative the mean, substantial a and very space trial

next year. And MAA alliance year the year-over-year financing for for today up published first think this year the of generic another just we I of of X a that and upwards expect XX upwards filing report or the that half shows XXX%. BLA medicine

So the we're very excited about space.

Unidentified Analyst

that's all Thanks, for me. Great, guys.

Operator

ahead. question Stephens. And Jacob Johnson from with go comes our next Please

Jacob Johnson

Maybe trials long-term growth following of clinical in will much just on increase the an those a you're number of questions. just up this how the about How clinical that overall by I be your couple trials of trial mean, we revenues? driven through advancing process thanks. versus Hey, think should supporting? the of

Jerrell Shelton

Jacob. did you rephrase you you -- your would Could Jacob, we rephrase I Could -- that? you it? -- didn't quite understand didn't question, quite

Jacob Johnson

long-term about maybe progressing is it revenues I'm so your Yes, growth way that for as it's is how and to many long-term there clinical should like on mean, just a just number trials or like that how add a trials? think can the quarter the I not about we -- simple of me? in people dependent from growth of you think

Jerrell Shelton

not early, to of stages a very trials the in this it’s early We're simple going are Jacob, just number. those And continue. industry.

are we of trials they do continue will further report next trials a why we we number to net -- that And trials So activity That's advance, to and that? as ads there each then goes Tom, to stage. you want report in the have on net our to course, get numbers of trials of if do and up ads, out. comment trial. revenue call there's the as because lot And quarter.

Thomas Heinzen

it -- Yes, it's blend. a is

sees the trials. maturation it COVID the trials that like came is of all of It pandemic of you it these trials. come out nowhere of addition into current a So And that things have with new is sudden. nobody to

pickup thing going in pipeline. with the globally So report diversification associated region. pickup on it's factors. domestic, clinical seen is it's of also only The the not be we the now And it's confluence is I'd the great other in APAC our revenue And add the Europe. just to we've a the streams thing of

overtime. bioservices lines, So and our increase continue ranges roll-out as product and we share will of other average to spend that temperature our

Jacob Johnson

Got chain alongside guess I ago, with the then I cell cold with a get Dr. like efforts? the tag their team gene on Lonza is the and follow then expand he you relationship It up, webinar certainly is logistics appreciate how where continue maybe seems or Lonza CDMOs it, Sawicki, the they on and therapy update there. progressing? in as space. two Are a week focusing more attended I Lonza with answer presented And a just to an

Jerrell Shelton

the relationship. Yes, demonstrates obviously, content I to the fact we the that think are market of that strength co-presenting

work relationship.Our standpoint to can towards industry meet development that critical into space of the is continue a that volume the that We the maturation the to is overtime. perspective ensuring that space from projections

And to so, very the have CDMO goal industry. relationships strong is with our

Jacob Johnson

Great. Thanks guys. I'll it questions. taking Thanks there. the for leave

Operator

go And our next ahead. from Please Needham. Steve with comes question Unger

Steve Unger

Great. Hi, guys.

First question --

Jerrell Shelton

Hi, Steve.

Steve Unger

for color relationship relationship implications it's you significance sort across in border are some of do you that chain us revenues? my the -- what cold broad actually is to of start see the on understanding just a cryogenic products only that give distribution is the you then more and Could as the the type different Medipal -- of of it's and Hi.

Jerrell Shelton

But and is region Pac more in the world it's you're No, most Asia Board. remember, develop, beginning the activity Pac mean future. and EMEA, the regions three into each companies Americas we then to see to the into I the going to across divide into lot like as a EMEA, Asia

own forth. seen trials that drug in that -- Medipal peculiarities in -- the be its and region other of Japan. it region one in expand expanding wholesalers, You've our go strongest we in our important so network there'll that up trials. It's wholesalers and is has

the So network supply -- which and we're ground speak in distinctive in, to in stake chain capabilities Japan, partner our and us with complimentary some so and Medipal to is they that building to have global out. gives a

look could and operation you JV, it arrangement at you at the could could an you So look a independent -- [Lonza]. look or at

this us. we is quite with going So alliance and -- an that we here of both that a Medipal, partnership what here good for think we to have is be

Steve Unger

you'll to think that from you revenues do when And see start relationship?

Jerrell Shelton

time. some take will that that Well,

the signed just agreement. have We

We have our to develop plan.

So I Steve? when can't tell that will you happen, exactly

Thomas Heinzen

Tom. like would I is Yes, – this

Japan. clinical Just that And trials to approved that Novartis is be has in will now in on point now APAC. things. going also KYMRIAH One, out two

the will driven the or the So alliance That be demand more than partnership. by customers make sense?

Steve Unger

does. it Yes,

then now to in occurred shipments flipping could with revenues. more talk that shipments? for understand to manufacture manufacturing like their change those international commercial YESCARTA, about And Okay. It implications European sounds the I from your able just now Europe domestic you that you're they're and

Jerrell Shelton

really question. that's it's are that good And Steve, one we to certainly answer. a prepared

Mark, would So comment on that? you

Mark Sawicki

you're bottom are increase basis. on working right. line positive view manufacturing We tirelessly very No, exactly their as The a to as companies this a these capacity development. global

more a have provide to from the a short-term impact going to very domestic European long-term, So which effectively. substantial on a international standpoint from revenue. support complex to short-term, markets In upside straightforward shipments it's has you able the volume shipments be transition obviously, and

Steve Unger

TECARTUS Yes, to centers distribution that to far that that either as guess, or investment make just running? need mostly up anything relationship there you okay. but -- And primarily then to get as occur on else and I is that needs and centers, finally, distribution

Jerrell Shelton

that's we're for. all. mean, built at No, -- what I not we're

for TECARTUS we So volume. ready TECARTUS are and

Steve Unger

you much. Thank okay. very Absolutely,

Jerrell Shelton

you, Steve. Thank

Steve Unger

Thanks.

Operator

FBR. our Andrew Please question next D'Silva ahead. Riley is And from B. with go

Andrew D'Silva

Hey, taking Thanks questions. afternoon. my good for

trouble of And different but to out so had of give clarity a the maybe Myers little XXXX? about liso-cel couple actually start, answered where of had for was process? announcements viable you And questions, is in maybe typically, a than getting and these could is sorry, Bristol announcement that bit late most regulatory an of just I on it call it something the XXXX kinds those early Squibb to little of make

Jerrell Shelton

don't take why Tom, you Yes, that?

Thomas Heinzen

right. you're times. had a news And confusing over to It read Yes. was few release a that we

the process approved And EMA submission at review year. it's been in this before validated. now next it the hopefully So -- year early for their the gets later has or

Andrew D'Silva

much Okay, that's more that clear.

as cell if color aspects you've little year referencing then that could on cryogenic the for while that leading it were the they the of shipments? great. are standards, Okay, draft were just you some drafting were transportation And fine logistics it. the those were And the least or involved at to it give learned what bit specifically are a therapy in of the process you tuned so, really in of I-CELL, as relates same standards you to earlier helping

Jerrell Shelton

be other Yes, view specifically actually of your participated colleagues were points our to Mark some be and supply in those but and we on question. and to panels of comment Mark delighted able a position information, can some to on

Mark Sawicki

ISO/TC the And through, calibration of compliance usage all our -- cleaning, calls so about or logistics developing the platform call ourselves ISO lot to similar XXXXX the just traceability we within the of with XXXXX. validation and group is we had which ISO on in of the as and are the ISO that the talked which things they what is element space, that XXX, traceability ISO, recommendations chain in do was we've that launched for equipment, associated traceability which cleaning traceability recommended on working protocol cleaning requirements the and behind introduces a which validated previous all key it protocols, traceability, includes which Yes, for regulatory recommendations marketplace. differentiate in history, been talking

to do entry we to the are So higher believe for recommendations in that future. create going a those competitors barrier potential

Andrew D'Silva

okay. Interesting,

of doubt a And maybe so, therapy are vaccine. is about but have couple dry therapies, vaccine I to you that these therapy cryogenic ago, a have potential gene little would a a talking therapy being cell that cell through will these bit gene standards regulations go path, but this is you if closer or no data that months [indiscernible] some Novartis developing to transportation they expect follow to ice? recall,

Thomas Heinzen

recommendations. been Andy now. -- future, Tom hopefully they've are for FDA half recommendations standards presented the First already The it’s these here. And will in the

So bodies world, until recommendation. a these around standards by are regulatory the it's adopted

started That a product that's half. first COVID hopefully for on So trials hasn't vaccine Novartis yet. even

and Novartis early of a it's trial it's the contributing how believe on an how that's control it's technology, So going the is design ship implemented. to institution academic it'll to I comment little but and

Andrew D'Silva

it's commercial some recognize during increasing? in the commercial or revenue were that really for sequentially my commercial to revenue. it with the Is there the your And quarter manufacturing the resulted increase hope there that question other I Okay, perfect. related because -- of I in change of align a reason but just declining, just Gilead in last for terms is that sales -- location then didn't you in Can revenue nuances their

Jerrell Shelton

in Yes, change Its manufacturing the definitively related location. to

Andrew D'Silva

Okay, Thank forward. you very, of much and best luck very okay. Perfect. going

Jerrell Shelton

Thank you, Andy.

Operator

question next go Please Jefferies. from Brandon is our And ahead. with Couillard

Brandon Couillard

I walk demand sometime in Good you think launched U.S. offering you Thanks. early whether the afternoon, CRYOSHUTTLE and through globally, it's or we feedback of initial offering does CRYOSHUTTLE, that and way just the it some launched Europe? around where the late June, guys XQ it's you for the in include offered of also kind what parts

Jerrell Shelton

is CRYOSHUTTLE our you the Mark, But CRYOSHUTTLE we a to it's to our, keep time. under comment our customers, with control products want clients? further longer the de-risk advantage The on process period do of the because for

Mark Sawicki

in sense, is or proximal we each fleet put done what centers. that surface of within we've Yes, our so logistics

surface have in fleet we So Irvine.

it. understand fleet couriers Houston is the fleet this surface local many third-party it partners have at equipment We are with provides cases have surface we utilize point surface Amsterdam and our of instead what untrained and we in Livingston, in fleet does fleet and to surface who And ability have in in time. don't it that the

how locations facilities. do our those have distance will significant of in delivered within being and control is so equipment and approximate instead more over is they growing continue trained our parties that drivers the strongly, utilizing our courier very we utilize and hiring it think and -party we of in equipment flexibility see increase that And we that the that a to into Adoption future. continuous that our are third foreseeable

the the service. decreased well. So Brandon, are again, important an the are we that people reliability, have by the we've improved the cost built improving that you're handling de-risking some got we've it And CRYOSHUTTLE we as It's into advantages and reliability, process. less risk

Brandon Couillard

That's it.

trials, two-thirds -- share some at trials, Your if problem -- type higher of ceiling a you X include Phase all continue of share just we of to of and almost much as at curious at will of if trend? level far the level, logistics or it high kind continues the share and how your a to higher look which companies go continue can which do you think house outsourcing portion as the much to your perceive

Jerrell Shelton

rest we We continuous ample the room improvement in we're won't think share at Yes, until XXX%. and that marketplace. there's overall for in

of adoption I platform. the we demonstrates coming continual them think our us us versus there's to And cases market have chasing many folks down.

of still So improvement room -- we think there's then share. capture significant for continual

Mark Sawicki

of footprint. gain the market facilities, market When our more our our did person Brandon, also a share share us in go so we would services, you growing and and leader first the we're There'll used intend quarter. will will our in quite and footprint We're this we company. lot we dynamic, share the gain product are expanding every terms and and quarter, have covering we're some market we more room you in started market of of a to changes some share, change. to remember, of be different company, course, trials and we're see terms a

we're that space. means we're to grow and it's that and position -- all to keep up for to a to -- about us. in going going grow to That's we're what that So claim

Brandon Couillard

guys. Okay, you. Thank

Operator

further appears remarks. additional now to Mr. this are It Shelton at turn for Jerrell like the no time. to there questions conference back I'd any

Jerrell Shelton

client control it. has ago, Thank comprehensive day, as day, and supporting to place supply the delivering you, a the respect consequently reliable, continue faith stronger, our services our leading our I of by medicine over we us. chain in the been globally. the regenerative solutions, temperature we and on efforts chain years vision we Through took sustained operator. and will Through around passing have When base. industry the grows providing supply our of Every their leadership I that clients have colleagues earned collective believe commitment advanced company our and since the have our established business world, and execution, a temperature this eight of that innovation control team loyal clients had

resilience. year-over-year and Our second to pleased quarter the despite results growth report environment. reflect challenging And this strength we're continued

and growth execute to support. Each products, position Express and consequently, and on value software earnings infrastructure, industry, therapy our these will an future, be continue shareholders. on capabilities infrastructure to believe years for sciences requirement further you committed collectively to our chain and of we To our support and come. strengthening endeavors many additional prove number of you. leadership a in trials the therapies competencies, advanced market chain control, temperature enhance endeavors forever to We and anticipation sciences the evening. new that our competencies continue including Cryoport our a life Thank and build-out we precision to the industry supply industry our network. initiatives we're that will commercial bid to grow Until and and initiatives in these our cellular investment will economic the sciences solutions global technology release proactively organic and supply extend continue good effectiveness. Thereby The new of call, further within to our our continue gene number life life we position, greater position industry to strategic next value coming accelerating core basis to will for of

Operator

your for you today's participation. And this concludes call. Thank

disconnect. now may You

Cryoport (CYRX) 9 Aug 202020 Q2 Earnings call transcript