CYRX - Earnings call transcript Q2 2021

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Operator

Good day, everyone and welcome to the Cryoport, Inc.

Second Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Todd Fromer. sir. ahead, go please

Todd Fromer

operator. you, Thank

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

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

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

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

Jerrell Shelton

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

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

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

brief happy update quarter report second regarding quarter that for questions XXXX our record Cryoport. a second by results. followed quarter your to Now, of was another I'm for the

strong commercial MVE Cryoport clinical grew quarter performance follows of on growth Solutions the units, geographic heels quarter record in in trials international from continue all reflecting acquisitions, supported, revenue in business achieved our We've of Biological first agreements, our in to locations. strategy. successful the CRYOGENE, of second continued key by and the the number performance our results the Our and expand and growth was closed scale in on businesses, across footprint two driven CRYOPDP continued to further and outstanding our Systems legacy execution

to As sciences growth temperature-control continue with build solutions we our organic industry, market we achieved XX% rate leadership the life supply leading year-over-year. a for chain position

most And contributions CRYOPDP. from which in Biological serve, markets we robust all benefited Animal importantly, we from our Biopharma, of acquisitions and Solutions significant MVE also recent We Medicine. Health delivered Reproductive and growth are

XX% - This represents in growth period the pleased trials. therapy, in advancement clinical from now prior and we see the same medicine We we regenerative cell now are are the year. XXX with particularly where gene supporting XXX an we of are

commercial our the potential customers is largest of pipeline Our in currently, history.

the July the gene European supporting granted therapy XXXX. including Commission SKYSONA, XXst, also eight for market a commercial bluebird one-time cerebral regenerative authorization We in on adrenoleukodystrophy by early was of therapies bio, treatment medicine, are which by

year, of the up same $X.X of of from million in revenue the XXXX total prior XXX%. front, financial in period was the an million, the second On quarter $XX.X increase representing

of XX% quarter in remained approximately for XXX% XXXX. the of This period second of a accounted our business over strong. revenue the Biopharma/Pharma and total increase was revenue Our

rate in an Revenue purposes, was eight organic For this impressive comparison market commercial growth increased agreements XX%. from XX% year-over-year. our

acquired to of are continue Australia. to Critical to our globally CTSA, expect time the and market the initiative medical months, on in us, an accelerate the continue for the commercial and healthcare we markets solutions market regenerative Expanding premium a as Australia In To back or temperature medicine end, we've solutions experiencing for therapies in medicine increasing there been a for headquartered as half significant leader in year Transport ahead, specializing ramp management demand basis. critical regenerative we focused market. global revenue the that the milestones Biopharma/Pharma world. have in Solutions accomplished is logistics Looking recent important on Sydney, services, recently in around

in and approvals, F-airGate, support cell in that KYMRIAH which chain set which to also Australia acquired accelerate EMEA trials of up commercial launched are an will - innovative growth a activities launch to we Cryoport Belgium, our our which excuse as temperature-controlled quarter, of Japan, XXXX. as global of new Osaka, presence the as we support of we our underway February headquartered in also further solutions, strategic We needs hundreds the Systems/CRYOPDP where approval This expansion client - locations, in logistics in believe APAC. gene are Brussels, center number provider such where commercial we supply of marketing second well me, supports adds In set - and we additions in Cryoport in therapy the these increasing to region.

results. is and the we proceeding CRYOPDP pleased and that pledge Our Systems with very In facilities growth are and our of underway are revenue are especially to in now The execute positioned people. countries, on million have in clusters to Americas, of the XX XX we our We're progress our making. well generating covering of summary, synergies Asia-Pac. key are quarterly initiatives We $XXX and biopharmaceutical Consequently, on schedule. plans. we proud EMEA cost and underway between Cryoport continue

markets passion remarks. questions. prepared support dedicated Operator, driven the contributions Our life we for the and sciences please and gentlemen, open the that serve to Ladies of make the lines advancement the for industry. global my teams concludes the are and we by

Operator

Thank you. first Brandon Instructions] come with from [Operator will our question Jefferies. And Couillard

Matt Andrews

is Hey, guys. today. for taking question. on for Matt the Brandon Thanks this

Just little you partners, of CRO that's and been Can spiked number guys a you as to out as a CDMO most start off, within increasingly more portfolio? Cryoport relationships, you're a you the and the on. about the well benefits focused maybe, guys evolution been just Cryoport have talk partners then what bit and of at those seeing those traction broader gets the space

Robert Stefanovich

good I'll a that's to question. Matt, turn Mark. it

Mark Sawicki

question. the for Thanks appreciate it. Matt. Yes, we

and tie which guys industry strategy, CDMO new. a risk support. into base We initiated with mitigated Lonza providing isn't first that our ago their and announced clinical of better around with strategy CRO programs client our couple for CRO and obviously, distribution CDMO benefits platform that a the engagement years the was So with in the to products these of really the relationship

And mature. so We of extension or risk-related to and they to really element continue them - these view trial clinical quality associated allows an their eliminate support. as in things it with see this platform product distribution

specifically, we growth think In see and around this will initiative strategic space continue. that in fact, nice the we

Matt Andrews

on one PDP Thanks. And here. helpful. of then and nice That's growth quarter another

is can increase like Cryoport new looking call driving in also any just that provide guys that terms just increase, existing to volume services, noted for quotations it additional what's year-on-year. the of just color guys can platform, on of PDP Thanks? XX% something share? customers you customers think you I Any there the you

Jerrell Shelton

Liquide of mean, big CRYOPDP Yes, I Air bowl. part Matt. was small a very a a companies, An these award earlier, fish remember is large company, focused, a in

thing, primary is and - the is our they're focused management team on outstanding and focus So, gene the cell therapy.

company certainly, that's - this point, a those of some - benefits getting they of are the they're but being So, the at Cryoport drivers.

Robert Stefanovich

other Cryoport is on add synergy-related seeing I as the we is, thing some Jerry, contribution which that an are well. Systems And of between and the activities driving would impact CRYOPDP,

Matt Andrews

Okay, great. then one. and last

that capacity the Just Robert, on will terms facility, could second additional then on And Thanks, there? guys. that out to to - spike the any And you're facility? we to adding up think, and I about think for color a when stepped-up shift fully that then essentially or your that to second be you shift add anything going said MVE running? as of related cost doubling in at

Todd Fromer

Chengdu, have we the Prague, New factories Georgia. three within location; Minnesota MVE China; and Matt, Ball Ground,

reduce added of them and then The referred being to and we second Georgia, larger will freezers, in of couple the is what lead recruit will the MVE Ground, expect you methods. appropriate a months, to we on that. capacity doing. takes takes Ball capacity, the It of efficiency to a after the shift freezers. the stainless-steel about - train it I It that people months to the continue to objective would increase expect manufacture which times, substantially then thereby, so have where you've the won't and quite the we it couple double improve but is would our

Robert Stefanovich

Yes. to an capacity our to certainly, in out demand but is and of to MVE. or is related were Yes. really Robert. expected terms capability the or it. there's there. and unusual extraordinary is in our upgrade parts growth this to there nothing nothing add to solutions, adding really of There organization, unusual the we making in nothing all point just

Matt Andrews

I'll there. leave thanks. it Thanks. Super

Operator

will Riley And with D'Silva from Andrew come question B. our next Securities.

Andrew D'Silva

to or effectively some I of be two this continue progress. of the there grow an And another then tuck-in? on the your the place additional start do was total guys. But to call was can so the expect happened. do missed a was price Hey. infrastructure doc I'm you current good though, with that that share? was view, that that in I Congrats thank expect also as business acquisitions reviewed these you integrate as on far in and able to curious as you afternoon, you. there if tuck-ins, I set have you'll any to too, sorry, you

Jerrell Shelton

leadership requires people, et of additional fantastic, they're normal Andrew, financing point, things. the team, are fundamental investments, accounts capital at fantastic they're teams. --both and cetera. working growth the so infrastructure, some of just But are But those teams receivable, team those certainly

the accustomed business markets getting in focused the be is addition way they're that particular gene of therapy, in being to we the serve to sciences. area other to a that and cell doing life - and on So, Cryoport and

very come So, growth. that than it's I well demands don't other with going anything anticipate the and

Robert Stefanovich

it. to add to just maybe, Yes.

it's that, yield a with accretive both of what it's revenue our revenue of I as considerations, it's well item is Belgium, a the purchase impact, perspective in accretive, was but from capabilities, combined combination was and and - to below They of previously the - range in from both X as a the upfront the as terms perspective. tactical acquisition of million earn terms the sorry, out think that obviously, out Jerry in the they referred are are both really CTSA the footprint F-airGate In and global strategic key. acquisitions,

Andrew D'Silva

perfect. Okay, I've But the then that. they're we in a and clinical that started thank you're seems have down you as second kind was the related pandemic what again, the curious much anything that as noticed it little to since was about? going COVID-XX far if once in. for thinking really And growth, a if slowed was improving? I accelerated quarter very in Phase of there directly that's trial trials bit. involved should Or be to else I on, the dynamics

Robert Stefanovich

to going take… you're Mark,

Mark Sawicki

think our there's a nothing nature into numbers and that programs It's portfolio. of a between the I Phase shift I in on II. being the strictly, nothing, are just don't influencing COVID-related brought impact that. There's the there's that's Phase

Jerrell Shelton

it but is all that the data-driven, quarter say, this telling; - And another, it's one Andrew, all I should it smooth is it's say, time-driven. would you to telling, I to need not And smooth is be not it is would And biology. trends. curves

Thomas Heinzen

a out. just on number of the as it's Andy, We're biotech thing number just know, starts one trial Tom. of IPOs for an to Maybe, well. record point you as it's increasing. and IPOs, FPOs, The pace

Jerrell Shelton

Yes.

Andrew D'Silva

related for shipper the makes Yes, I the inventory. And that color. have sense. to just Thanks last is question

work feel I it was or now, you're or as that? and and things adding stands volume approved eight how you more quickly therapies you just your doors increases and to do obviously today, fast there more current capacity need do about curious, going you very there. the that You're is growing some to on of have be, supporting

Jerrell Shelton

one that's the well. of we acquiring I of manufacture - MVE. part as Andrew, the that reasons of part look, mean, was of the doers

there. pretty So, we're in shape good

Robert Stefanovich

inventory a management provided to Yes. To be honest, by are our we track client relates really the that there it specific And in for our base. obviously, as contingency growth. forecasts adding

well-defined supply inventory an in have a very, we there. need to address So, we know requirements chain well of and when advance very we any

Mark Sawicki

as Systems So, Mark know Cryoport you is speaking, at level?

Andrew D'Silva

Correct.

Mark Sawicki

Okay.

companies, - a four well we're legacy that like question. as remember, as sounds we at question and manufacture So, different

Jerrell Shelton

Yes.

Andrew D'Silva

Perfect.

one. quarter forward, one you sequential should or just continuing. to? indication that got was some that year segment I Obviously, Sorry, we of continue any or you else point more going if strong the throughout a very the gave CRYOPDP and grow quick curious to anything expect was just that sort uptick had I it's seasonality it is to could

Robert Stefanovich

don't not but them specifically, on a and a for give that's can continued track you that why quizzed in we these for we are them? We guidance stated. about now they're future, the track, expect growth very past the acquired When Andrew, they're on bought exciting. companies

So, you continued expect can performance.

Andrew D'Silva

and questions hop back my in queue. I'll taking for Thanks job. Great

Jerrell Shelton

you. Thank

Robert Stefanovich

Thanks, Andrew.

Operator

Needham. we will take question And now David Saxon with from

Unidentified Analyst

you curious, with I maybe, some CRYOPDP maybe, of your Cryoport kind capacity I has referring David. on in? of relationship there guess been I understanding, just Cellenkos how are How going? with the the guys this providing from the of generally my A relationship and Joseph guess synergies or really clients been form more of guess, for to has CRYOGENE? questions less in Cryoport providing the have maybe are whole using that more and with MVE them. announcement here, logistics is excluding how services more This storage - [indiscernible], CRYOPDP played the to Systems At to guys. you And Hey, now suite that's System turned in services I least all that previously favor? with couple recent more for are was

Robert Stefanovich

be their part is for to is network Cryoport entire of the into was of our strategy, relationships And versa. Systems goal overall part This synergy - our leverage the and purchased companies supported continued to to our past. vice and and by a we our able that right. CRYOPDP one portfolio this Inc. reason about in Jerry to be synergy ongoing talked able is for strategy that family the it. of this it'll the are There's at to other be time that of absolutely Cryoport, example examples targets revenue be Ultimately, has

Unidentified Analyst

looking III. for months trend Okay, pandemic And is trials, another year, to I, these then Are going responses all, involved at Phase clinical record trial great. just maybe, back that guess at back trials six Cryoport the the III seeing a one, a helpful. obviously, that that's you or on under I clinical starts the recovery? high, looking this or up throughout last

Jerrell Shelton

guys grow, numbers quarterly quarter. I give on mean a the continue numbers saw to in our you the right. When we that again strong most growth presence sharing this publish indication a We of recent an in basis space.

any space. resulting the capture that meeting addition anticipate Our share that. to growth continue is ultimate don't I objectives in - the of based to goal on obviously of the to the and change overall strategy to performance

Thomas Heinzen

to from be filed add drop quarter, to the just one halt, approved maybe get for It's going that going starting every Joseph, some phase just trials another number reminder or of there's it's of net combination that other. that. and the or to trials a new maturation approval. a out trials, or And

that very, it's all very mix, all all it's So bullish it's now. the but into right looking

Unidentified Analyst

I? Sure, sure, maybe, our maybe queue. drop absolutely. on So, vague in more, much. Phase back too from to bit hard the I'll us. initiation that thank Phase II, Phase little guess guys is guess obviously you it's which very out I trials a the see, hop to to I is or But progress end, it from I

Robert Stefanovich

the there know. Yes. you behind is than lot scenes more - guys there a is more flux

there's attrition said, always rate. like Just Tom

a new net And change. are the quarterly starts higher than numbers so at much the

Operator

question from next our David with will Larsen BTIG. And come

David Larsen

on good this to a is $XX get most fiscal quarter. million I on commercially-supported any it area, about you And much Did last how there? $X.X came this revenue the was congratulations or it from Thanks. SKYSONA like ABECMA? disclose from you expect very Hi, million products products? any thoughts thoughts 'XX, growth think and then which in in quarter

Robert Stefanovich

quarter and for that's Yes. increased previous can't up so, mix, up has disclose the the about quarter. confidential. million the number to increased XX%, from $X.X obviously it's nicely, We

that Our number. launches that have time a of all the over expectation new to will is contribution definitive

David Larsen

Thanks. Okay. and this are New the thoughts supply the of that then process of that chain in I Jersey And any I on in we think then launch year? centers the Houston the status thoughts that where do And think in there? opening, shipper also any stand CRYOSPHERE we'll on

Robert Stefanovich

think all I to is those closer issues. Mark

he'll So, that answer question.

Mark Sawicki

Yes.

So, Morris initiate the days, will phase. and quarter. regulatory both article. construction both in in CRYOSPHERE and the which next validation-related fourth end first their The called the Plains will open are in the of activities facilities what's already They of nearing their Houston XX and is

with the So that basically, anticipated manufacturing year. starting commercial of are rollout early inventory the of next final testing we for the now in the product QX

David Larsen

Thanks Okay, great. much. so Appreciate it.

Mark Sawicki

pleasure. My

Robert Stefanovich

Thank David. you,

Operator

Stephens our And Jacob Johnson next with question. has

Jacob Johnson

everybody. good long-term? quarter, CRYOPDP just quarter you freight CRYOPDP customers. much with be look the this of attributable in putting you've replicate third as that? talked then Hey. uptick more elsewhere How that's I parties pictures I could bigger think last we about evening, guess, versus may the think, about to question, first Maybe, something revenues to for And of

Robert Stefanovich

in or the to real XX% say, over five years the it We we from is this phases. The maybe, revenue million uptake disclose synergies see it but overall which do specific don't of revenue synergies, the still about. an I'll of we early take that of to $XXX revenue. we Suffice of is next expect quick. synergies have Yes. that talked four see

as year next second throughout well. to We expect and that continue grow to the half

and want cooperation to know, is on us if there. it working call anything it the you So, don't I Mark, very well

Mark Sawicki

there's or is on on we a And vendor because with planned. is, I through bringing new approval have associated regulatory new you think are expectation a no, a time, go Obviously, said, as it's that Robert process a very that takes active. Yes. going seeing very, as growth. process partner to our

Our coming accelerate into quarters we'll expectation the that in continue and to XXXX. is

Jacob Johnson

Robert million And about Got then million per that my big to $XX Mark. this and of kind it. for you picture commercial question of approval. a Thanks revenues $X that, I talk used guess just is to follow-up,

year guess the so businesses, million think - I to $XX have million found give maybe, you've you that confidence opportunities with owned to maybe, I $X almost expectation that? is for moved or think a that $X million, $X larger it $XX additional the I MVE Can and the than to almost more deals. million some you million CRYOPDP these just to million something you that it maybe, guess in or $XX now.

Robert Stefanovich

changing, are to these are No. and therapies those ranges not ramp. Jacob just beginning

with we're customers. confident So, our

Jacob Johnson

That's Thank all. you.

Robert Stefanovich

Jerry. you, Thank

Operator

a we'll from [Operator Instructions] follow-up And take Saxon David now Needham. question with

Unidentified Analyst

small, back. months Hey, guys. are the of couple now that Singapore trial Europe? guys the facility terms fast. Thanks. I've sampled, but the a in involved Cryoport levels what with Joseph could and you guys of landscape, that guess get facility APAC obviously, processing we you guys started I trial this see is do in in and more maybe, in clinical again, up through see or expansion that generally, you America to growing the importantly Where announced landscape more clinical long-term, anything is

Robert Stefanovich

for it a Yes. is us. definitively target

product a Australia acquisition itself. putting entity perfect building is resources to ability in that out within of are build of the out into Australia distribute our We to example the

expectation that the the we as besides be will share in is capturing in the we have that and future geography much as U.S. in near second on intend the fastest-growing market Our market U.S.

Unidentified Analyst

very you, much. Thank Okay. guys

Just me. that for one

Robert Stefanovich

Thank you.

Operator

from next And with we'll Knight our question move KeyBanc. Paul to

Paul Knight

in talk least is that It Hi, you're to it about seems dynamics? most want competitor, it and firms share at Jerry like really you Could little about competitive that keeping is bit a and significant do the team. your Jerry? themselves

Jerrell Shelton

competitive Well yes, on front, nothing the has changed Paul.

has so, front. We in unique. think actually have edge. but an changed that we do competitive we are nothing

stage really at add it that? is early I. want doing some Phase maybe, after themselves to you do Mark, an Some not option, But point to

Mark Sawicki

the of think actually our a I competitive that there's from some agree. I space. slight environment, overall No, weakening

I of accelerate I an fact, So, think in to time capture. over there's - opportunity our share some

Paul Knight

most phase, they're the the in they Is Phase What's at stage? is I critical when or stage? early are filing that BLA it it when

Jerrell Shelton

retention early So, a our portfolio, a client rate is to possible, nearly, have we is as in because XXX%. goal them as capture once our our

earlier that a opportunity obviously, but single so the chasing basis. things we're perspective, And better. from standpoint, from even always mid-phase are every a that late-phase from portfolio or capture

well. definitive So, are those targets as

Paul Knight

Thank you.

Operator

have with one remaining the And Instructions] Richard now to we'll queue Roth this Capital. And go we at in time. Baldry name [Operator

Richard Baldry

at to current how you Since acquisition, of in sort major think was closed don't about it the that quarter current you the we from XX are number - a sort mid-level go-forward? had that move? that Thanks. do levels, give XXxX. it of performance fourth sort one-time Thanks. line you splitting a the How The line a higher items any of down I is what know talk whether a the SG&A how guide there? in that acquisitions in quarter. staccato us of about to stable and on of at sorry has moving should that the XX, pace Can

Robert Stefanovich

EBITDA just compensation reconciliation. Yes. we this year, things. adjusted Robert. expense is at had the few maybe, stock-based One a

included see that about expense compensation of QX had You'll about $X stock-based from X QX that million. in is million up that

all build capabilities. to of new the Among equity issued continue and of resources going companies; and top MVE out that, Biological we our As we're CRYOPDP. to Solutions employees to

demand I additional are and some increase will years. the Again, we significant we look see bringing quarters use should QX, over expect moderate if you you So, it in and and QX increase resources out on at be increase. in next the capabilities but building think as QX a for target.

to the quarter-over-quarter. But from increase there that as build I'll going an that's again, use of kind and continue. So metric

Richard Baldry

there bit of should we that as Animal then up down within build a our we pretty Thanks. be And start any general to of closely seasonal well trends models? a again, watching was perspective; sequentially. sort are those little each was Biopharma strongly now, segments Health from very

Robert Stefanovich

probably - and give There's part breeding especially, significant it of some there's matter, have seasonality be the can't it's Health Animal area but we to as a Rich, as probably - I can't the tell we I relates that seasonality curve happy but But in it share that's since seasons. that; some you of just experience information a seasonality we on to more share. you you as we'll yet, that, to the with MVE

Richard Baldry

Right.

Robert Stefanovich

And Reproductive expect XX% then look, where our Medicine business, growth. growth. about just Biopharma is significant market shown of significant has that's I

I think the only time, where you'll see, it's not seasonality, it's really just timing.

look timing at Solutions, orders. MVE and you size If Biological there's of of orders

So, it's have seasonality, timing, that solutions and strong for for very Solutions but our it's has. Biological product less and demand more the we MVE offering

Jerrell Shelton

said, small XX% not as portion. It's have to Robert probably, a any impact your And modeling. and going on Biopharma it's

Robert Stefanovich

then QX, we revenue, significant QX And record from at just their look growth QX to profiles showed Yes. historically. reiterate. and departure Look,

So, we're strong continued performance. expecting

Richard Baldry

thanks. right. All

Operator

at And we have no further questions this queued time.

So over Jerry, or closing additional things to remarks. you I'll back any for turn

Jerrell Shelton

an from therapies. the the commercial In the the another We continue thank global track in revenue and new strategy. questions. of for continuing year, being both let year the increasing of clinical to customers, deliver We're number quarters. appreciate the include ramp support this an that events of achieved pleased me they we company. interest much execute growth, as our supported, increasing of we're business Thank half in first momentum key and with Fueling second in successfully that we've you confidence year to trials biopharma your our very closing, of you and are on your all with on solid record first of which continue our number say

serve. and therapy, filings next for you very and the forward chain joining to on the look you advanced and in this supply meantime, us We New much you. we we quarter. and Thank therapy wish And with commercial solutions prosperity. the yours, the approvals, Thank interest health and you best overall temperature-controlled afternoon. of commercial new markets our speaking again,

Operator

that conference. Once And conclude you, us. does for again, today's joining everyone thank

Cryoport (CYRX) 8 Aug 212021 Q2 Earnings call transcript