CYRX - Earnings call transcript Q3 2020

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Operator

Good day everyone, and welcome to the Cryoport Incorporated Third Quarter 2020 Earnings Results Call. Today's conference is being recorded. At this time, I would 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

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

Jerrell Shelton

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

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

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

previous XXXX, growth with quarter reproductive addressing The you a will company's last XX% compared increase of queries of update results. regarding and with move general brief the to of medicine call, conference we'll third provide on we then As and for your and to when of million revenue We was this when third of the XX% in quarters the to revenue our $XX.X biopharma quarter markets. quarter. XXXX sequential a compared to primarily increase an due growth reported

revenue the TECARTUS. quarter third first commercial recently approved generated also The therapy another Cryoport-supported marked Gilead's from

from ramp fourth generated it and with commercial launch the XXXX the activity its during the along ZYNTEGLO, Bluebird's was third throughout therapy continue in revenue fourth the quarter, small While to quarter. is will in which quarter to the expected

now supports September as Our revenue Cryoport XX, of trial global clinical compared reservoir the continues biopharma a and activity future to important a XX, total commercialization for September our coming strategy of to increase trials years in of our XXXX growth XXX of cornerstone an as XXXX. through clinical and XXX

end all the COVID-XX clinical quarter to is beginning XX for we're platform temperature comprehensive first been due The trials have the quarter for fourth this of in delivering needs quarter. the business our the that logistics where suspended pandemic and flexibility. position during Cryoport's major the much marked from especially will of and in conclusion control specialty the its supply Solutions all acquisition report the solutions the quarter our global milestones of position the supply benefit pharmaceutical of were markets Cryoport's biopharma, and global chain of they as solutions advance largest and enjoy the of MVE growth our strengthen our as two capabilities of remember, These and the to control CRYOPDP. restarted leader will you customers greater third MVE our the and pleased acquisitions CRYOPDP These with expanded provider the strategically third As industry. in for and clients supply of of is Biological chain cryogenic temperature acquisitions solutions

growing years. tenets share Cryoport provide One that capture of over of derived bigger the growth from of they that the is believe overall strong revenue we will a the ability five to drive to a key XX these commercial the pipeline spend continuous acquisitions next

grows. our trials revenue advance later new to As stages,

addition a in advancements the heretofore. to more and in fully of CRYOPDP, we're ways not available these position unique With MVE support

seven platform clinical to Cryoport-supported have support fourth marketing commercial trials applications distribution and to global license makes and As choice scale before two therapies us in companies to bring or as stage, A applications depth. now ever be enhanced gene we a help our believe the the more therapies a been in on authorization of better cell filed and are global positioned quarter. XXXX, clear we we biopharma total market that than expect reach biologic their commercial further with filed of to

supporting for with facilities YESCARTA, We fifth by growth Agency TECARTUS of launch KYMRIAH number know-how for by we Gilead to competencies support Cryoport which potential of by of Novartis, and to by long-term the also by equipment personnel marking and the the and opportunities next thereafter. Kite, include which MAA over dozens XX Myers Gilead's therapy years validated forecast TECARTUS new agreement equipped selected liso-cel, launch technology submissions with or and are and Recently cell gene global years anticipate therapy, ZYNTEGLO been commercial a up Cryoport-supported European for approved was and products commercial to XXXX. global recently several Squibb preparing support Bristol Cryoport's commercial the and the of in this the Medicine Bluebird. We've BLA a

working clinical of deep we a relationship it's think with of we each useful and I companies have each pipelines. their that, these to support remember

with to over telephone call renewed contract all cell I to Novartis gene quarter, lines clinical the its for therapy. operator in commercial this their would that, questions. open your and turn the to us With programs supporting this During and like

Operator

Thank from we'll Jefferies. you. to Couillard First, [Operator Instructions] Brandon go

Your is open. line

Unidentified Analyst

guys. look rolling into guidance the philosophy questions. then This But the has we two start we that on MVE PDP base changed XQ? provide Quick deals? can most around And at for one for Jerry, for this Matt and all you taking given as here, guidance. your recent Brandon is Robert. any afternoon. have to Thanks goalposts given you the initial us Traditionally, for Hey, guys not have for at following

Robert Stefanovich

Yeah.

we in the October X, deals that. out allocations we're of the working aspects. on price so comments few other closed a Obviously, and both midst Just purchase

very at two historical We're our In terms about we we performance in guidance, we're of growth of million MVE the careful $XX CRYOPDP you about early QX, acquired, with million look the revenues, of But in of stages at if very did giving $XX beyond in terms companies in company. the did guidance. the and noted calls of that previous revenues.

at both look towards the fold If that of performance, the accelerating we of now of obviously them that family bringing characteristics that into move at look you of Cryoport growth and companies. will companies those you historic

forward the in historic in we insight we revenue however $XXX have the in statements. you So said mentioned they having kind expectations consolidated generate do is One consolidated a at other terms pro to which time. companies of point this the on aspect the of over will the performance million that that or we over will further that, filing give to grow is targets we forma $XXX four is to be Again, years. obviously be a growth both can't company, moving five our revenues, give and aspirational terms will and financials next next quite pro at overall What revenue and guidance substantially million years will for of financial our forma basis. for

with commercial backlog can covers get you significant you of do to Cryoport as point, this basis. a of pipeline ask growth Now consolidated trials a Systems ramp through revenues that Cryoport Systems, in know at significant and how clinical a XXX combination over on That's we therapies providing solutions the expected the cryogenic the their MVE on over and to global see then acquisition, target based years; the that CRYOPDP we the the already and market markets that growth basis. through next a further, synergies are equipment hitting and leveraging through

the So the over growth we next feel expectations years. confident pretty about

more In the what on, market that a of lot the ramp as depends call. bit so of that forth. terms curve part and about hit acceleration therapies talk obviously little how a the like And we'll this looks the

Unidentified Analyst

supporting Can from the side, size And tenders lines do vaccines then handful That's those help received And under the on you're you over two grow there any the roll time a various Thanks. leading on can what Systems? noted the you unit on that across is government you. of Cryoport to vaccine across has here? those umbrella, of to including out anything Cryoport's separate you Cryogene then color what as kind the MVE Thank candidate. business could or potentially today the trials PDP helpful. COVID-related supporting provide or clinical XX of

Mark Sawicki

suffice Yeah. We're obviously, long-term of equipment product on and not this evaluating lines. to it MVE in products different in the to working obviously line relates consists time we're overall the we opportunities breaking down specifically active portfolio COVID. at around are say, XX disclosing what point of product storage what But divisions utilization as

that in active as space very are well. we so And

Unidentified Analyst

That's helpful. Thanks.

Operator

right. from All We'll next Andrew D'Silva B. Riley to go Securities.

Your line open. is

Andrew D'Silva

question. Good taking Thanks afternoon. for my

map so any locations was when sitting but in? though. hopping give of at add also geographic reading want any you're else Can might just review at quarterly But logistics sorry, don't be mentioned you there lot, I'm about insight blank did coming as forgive a thinking just helps through you some these, this we in there that looking should of answer if think still as out your me. might your I various management new you where into to locations, out still pipeline? I calls. you Obviously, the And be CRYOPDP locations looking that sites curious between are I'm potential you

Jerrell Shelton

time. logistics chain Andrew, we centers will supply centers add and over

the absorption now where With from maps additional evaluation at locations current under an us we'll MVE We will as But that do where you look came place heat the any that's kind demand on in of centers and be the have right we it's activity to put locations that CRYOPDP the of they those takes XX where exactly. places for indication give and too early to dictates. now.

Mark Sawicki

we only and higher is, considerations one service do geographic thing, to obviously is level. facilities, I'd volume what a our and we to that of other looks a commercial portfolio obviously the And like from the willingness subsidize take is standpoint, that as clients' provide add evaluation to this

are evaluate that locations. And so as considerations those we other look at we

Andrew D'Silva

the the a CAGR. about to think being think growth and Cryogene consolidated company, long-term thinking you per Okay. we do we should kind just a guess the – segments about past growth different into curious, No acquisitions, see four And makes I us segments that revenue just MVE consolidated consolidated insight allocation within in CRYOPDP legacy segments give will subsidiary? about Cryoport you Do of the situations? As how various think sense. fastest while you start or expedite kind XX% company, we Logistics? and referenced segment? of Or the three legacy the Cryoport's how parent of Just start can Logistics you being the should

Jerrell Shelton

made about segmentation that we haven't concluded Well yet. some Andrew, assumptions you've

it's are it will and holding time medicine at and They and companies. company. agreements process and our cross are between those in subsidiary continue to we decisions markets health. focus at between These cut operating the -- looked thought operate we animal way synergies is an -- entities. actually as as the the operating we markets dividing do that we we Because our look so is And the make between as on But across those our reproductive past. company and biopharma having have four

reproductive medicine. I to would continue biopharma and regenerative at So that and animal especially medicine look within health and

Andrew D'Silva

was about in facility around therapy for me. thinking site PDP is else adequately Asia? there Novartis its facilities having in opportunities just And located approved place question the curious I footprint Perfect. first the there's there be if taking just for last anything CAR-T Okay. were that manufacturing or Asia. as commercialization if And are cell we expanded a should

Mark Sawicki

and are closely APAC parties that looking hard activity. working with and at that the and Novartis very expansion Yes. looking at particular other We're

some facilities of good evaluating operated folks we're fourth So launching in in for business. also opportunities two we this and quarter be that will our And Osaka of jointly coming quarters. the in support targets additional expansion first year. base gives obviously the these That in us the other Singapore to portfolio existing have the a launch

space that active we very are So right now. in

Andrew D'Silva

Okay. those Congrats acquisitions the the luck progress and out and on good Perfect. you closing much. Thank very year. integrating

Mark Sawicki

Thank you, Andrew.

Jerrell Shelton

Thanks.

Operator

Conway from & And next, Joseph we'll Company. Needham go to

open. is line Your

Joseph Conway

Hi, guys.

Just reproductive of one are your catch-up much question this the expansion the today, from concerning you the guys that of attributing How facilities? versus strength second Thanks. quarter. to in quarter

Mark Sawicki

catch-up So COVID-related some obviously, is QX associated from with there activities. depression

-- we've strategy which had well-defined six earlier also large under been like these last operating over focused this really However, quarters a is year. that very around we we've Inception announcement the made the clinic networks capturing

now that We are that revenue signed starting a number all and contribution have to a those positive and to space to we material anticipate in very agreements impact additional in of direction. that continue drive contribution have on

Jerrell Shelton

more to because to add not to the Europe penetrated global and the that And what parts taking have more that available. and we is of would Steve other world -- just a and medicine degree that approach we're reproductive and I Asia

direction. we're pushing is It of in And truly market. growth a globally, so up. cycles certainly number that the is And

So it's a market for us. good

Joseph Conway

great to file could detail you Okay. the do two actually the fourth that hear. all expect If more. to MAA or in at have candidates quarter? I you possible, one BLA That's

Jerrell Shelton

don't We can. that. you through And Why Tom Tom? that has go

Thomas Heinzen

Sure. Gamida be I pronouncing Omidubicel. and Atara It Cell their Happy Tab-cel is with poorly. could that product to. their

Joseph Conway

Great. you. Thank

Operator

for to time, like this at turn And remarks. Jerry I'd it to back Shelton closing

Jerrell Shelton

acquisitions execution time, achieved Thank the of from a and the you much our is two of you Folks and operator. beginning the to through for call growth. would I that the built the fourth quarter we of takeaway platform third conclusion have that very for At quarter. the this new like we've extended

and solutions industry our in footprint an to to sciences the our the new. especially we an better and chain us have grow and force life market our believe the business regenerative continue industry our company temperature-controlled true will that position are extraordinary relationships supply and revenue the leading scale is supporting the of company's Innovation life for ever-increasing We our medicine. hallmark be position position that industry the success globally increased as to that drive strong sciences strong existing perpetual enhanced in allow for will and serve in be We're leadership and We drives client performance. Cryoport. that and provides continuously

until you earnings a joining been next you has evening. call for we brighter. future Our never We good bid thank and us today our

Operator

And participation. our for this today. does call for conclude you Thank your

You may now disconnect.

Cryoport (CYRX) 8 Nov 202020 Q3 Earnings call transcript