CYRX - Earnings call transcript Q4 2021

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Operator

Good afternoon. And welcome to the Cryoport Fourth Quarter and Full Year 2021 Earnings Conference Call.

As a reminder, this call is being recorded. It is my pleasure to turn the call over to Todd Fromer, President, KCSA Strategic Communications. 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

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

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

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

Jerrell Shelton

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

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

If you our you’ve you it, provide brief on not our to it. with update will had a to questions. would and website I to a encourage and then I we’ll on go read your business download answering move to chance

cash, CRYOPDP. short-term We competencies performance continue to in new investing certainty, by growth leading our and client in brands, double-digit product the completed In equivalents expansion, Strong strong our million and MVE operating and turn, company’s closed engines by excellence and ahead. grew the in industry in growth years our history us year and sharpening revenue. successfully to our we multiple investments. driving with across business in was productivity. execute November, results Having $XXX fueled the excellent This positioned a embracing focus, gains strongest financing specifically having we in position delivering all a and well the cash continue delivered XXXX in this services, strong with geographic as of -- of in innovation, and

which This revenue Our the in strong of in is -- high year-over-year core for very year, a financial quarter first our team XXX% at our fourth with represents growth $XXX.X XX% organic level. is business and and revenue solid full executing the million total is results growth. reflected of

new agreements ramped our eight pharma/biopharma a XXX revenue onboarded basis. global commercial we quarter, customers, on the During from

Phase label in Cryoport supported XX XXXX. have medicine Currently, record are supported around total new were filed of of markets reaching our commercial regenerative significant in the an as a these approvals, medicine now our We many filings a continued XXX, clinical X. trials number life of and and with to of set for stage Amongst in experience total noting for our additional or business XXXX. build chains XX% trials the from which In Complementing we additional the four growing supply of that XX In and XXXX, world, been six in rising It’s increase an the a expect out regenerative or XXXX. activity anticipate reflects XXXX a drivers, our is therapy significant and footprint initiative potential worth recent growth we accomplished additional XX pipeline in XX months, was MAAs expansion customers, the we there geographic as geographic milestones record BLAs alliances. we market filings Cryoport comprehensive via acquisitions, in an beyond. strong and other this, short, therapies solutions gene partnerships an the to believe pipeline Expanding sciences. demand important in approvals an and cell this in accomplished XXXX. for market, industry-leading

world, demands As result, countries, Americas, serve. support in market well from the the in regions the we’ll our APAC. operate the EMEA capabilities, we’re gene a key biopharmaceutical we to and rapidly and this expand market in cell XX increasing throughout growing positioned to to and we facilities now customers our of XX covering Today, competencies the and therapy meet footprint continue needs

shareholders. brands with cell pleased of building market and with our on share achieving the maximum we’ll continue focus results our and to our our the and for gene XXXX markets, strengthen out ultimate value therapy We’re sharpen leadership our objective

open Now lines questions. Operator, to the the answer we’ll please be your participants. happy for

Operator

question Thank with from you. the of Souda SVB. [Operator Instructions] Our Puneet line comes first

proceed your may with question You

Michael Jones

you to XX% guide if year. know the Great quarter. offers you’ve quickly color that something could CRYOPDP continue? just spoken in just Michael and I for ask on to on Yes. Hi. on expect you also for and I want us expectation MVE is the past, how to some you growth could Puneet. performed if

Jerrell Shelton

Michael, Yeah. we of don’t guidance. course, give

-- mid-XXs the on year and had the the So, but -- will year, performing year. in rate comment I into during your CRYOPDP MVE excellent mid-XXs growth performance over question.

very their So happy with we’re performance.

Michael Jones

Great.

Robert Stefanovich

I mean, add… just to

Michael Jones

have I another And one…

Robert Stefanovich

right. if it, full add you to going performance look No. absolutely to at Jerrell I for the is the was just year,

QX transportation that challenges in mention, some MVE did look we had slippage for have. we we you of scheduling at just performance, revenue $X and about If because million QX, into the of

were our results you you to $X close would double-digit So -- for also to if XX% strong as QX, you rates growth would well. include million see QX, that quarter-over-quarter into

Jerrell Shelton

to do Yeah. is referring purely with delays That had was shipping in that because he third-party to shipped of scheduling finished not transportation. goods were

Michael Jones

to if supply to you’re from transfer an Got it. your and that that production and I ongoing see any was guess, lot as challenge pricing you increases in since about for been hearing companies. we’ve able and I a chain, wondering if other I MVE businesses, other customers? know rate

Jerrell Shelton

-- to the the pervasive be of not worldwide. immune problems gotten They’ve supply in chain. the Yeah. we’re Michael, to

So But can’t think we are manageable not do -- most problems chain The supply time is think better see but MVE. will that them We problems. that order. we they’re through. are two, for we these be effective we in going another the continuing, or but they quarter manage

Michael Jones

Thank Great. very you much.

Operator

question comes next Our Sourbeer from UBS. the John of with line

proceed may your question. You with

John Sourbeer

on Congrats my question. thanks quarter taking and for the

trial on Just in market noticed pre-revenue ever. XXXX, biotech? trial RFPs is But year-to-date any second in that color can that portion provide biotech probably, you light strong you changes a any was pretty funding it’s your business or what little clinical of curious, Have business maybe or been year-to-date. best year

Jerrell Shelton

and Mark go seen ahead, I answer -- we much, haven’t Sawicki Mark. is that that. will let market Dr. but to He close

Dr. Mark Sawicki

been has Activity No. robust. Yeah.

We it to activity. have any issue relates as real clinical not seen

fundraising and I think are And overall, that to to about clinical which gene we well in saw a overall XXX be billion. is continue you year really positive. count who companies funded $XX increased space on trial are our funded last extremely based of well programs year and the record cell

So that will we’re very that confident continue.

Jerrell Shelton

And referring at drill and on in growth to The and systems for Cryoport QX for commercial revenue look trial you we for the in XX%. by increased further, Mark look company by about about XX% for was CAGR you about our biopharma the biopharma down bit current XXX Cryoport clinical XX%. systems little clinical if performance non-commercial systems and had increased a the even a five-year Cryoport at trials particular

to So see we’re the in biopharma significant growth market. continuing

about of total XX% is biopharma our for revenue business. overall Our

we’re bullish forward. the outlook very about So going

Robert Stefanovich

know your I to bow we it River a and certainly key overkill But Charles any earlier ICON which today, slowdown. and that because cell and view. and Lonza strong don’t of it, see then point just And Maybe markets and John, and put and appreciate Repugene call they’re we just gene from others I the period. question, leader’s opinion conference at this it on Danaher bullish and either, do firm’s looked is seemed on to fixated seeing not

John Sourbeer

for wins bit there this I Right. there. to contract of can you seeing you good might new color hear contract those trials? there, to what at you wins look and on X do and think to way That’s you’re continue kind talk kind a any little thanks ramp out in competitive normalized share -- think share COVID of take if of of market of some Phase to continuing backed you’re you your be guess

Jerrell Shelton

and with really in to going capture very Yeah. cell and MVE we gene to space. not, continue, the and and mature acquisitions continue overall We’ve the to honestly, I our COVID believe we’re opportunity year-after-year very, minimal that’s continue accelerate. CRYOPDP, and diversify quarter-after-quarter, We impact that capture if like believe on platform, portfolio. have to to share demonstrated have do going mean, our share. the And trials shown it as we

John Sourbeer

And in into of just any into that just maybe Was on on additional there? saying, the shipping from XXXX? following issue? or business no issues, think last there’s one-time they’re other increasing confirmed impacts do of even questions then me, kind Okay. the maybe kind year more been that the be, And that going MVE areas earlier, one impact you of the up -- I XQ, guess, to for just

Jerrell Shelton

to any -- because other happening. certainly the it in the taking we now. so we’re answer don’t take event But right there’s a supply I This there’s not your And was at Certainly, But don’t repetition of all, that. sure of could. of any event no question, caution it to we we business. every situational, of impact that -- first and Well, condition could don’t chain extra happen the future? -- far. in foresee experienced make we’ve But foresee part that

don’t you in So -- see disruption the I we’re -- think -- future. you a -- you’ll can we

Robert Stefanovich

be the to for continues very very, And strong backlog Yeah. MVE.

expanding We capabilities meet demand. our are the manufacturing to

to important as that’s think I So well. note

John Sourbeer

congrats quarter. on questions for Thanks the my and color. Great taking

Jerrell Shelton

Thank you.

Operator

next The David the from of line Saxon Needham & with comes question Co.

with may your question. proceed You

David Saxon

same backing out you mid-XX% is headwind fourth in these that to and quarter about in range. the range our of an kind by was Good MVE growing the questions. two assets earlier indicated year. million the for Hi. the question, of and up kind were was the in CRYOPDP on mean $X afternoon math, I My response taking thanks first revenue. earlier just mid-teens

the in revenue single-digit there So I what slowdown was was quarter. of kind kind wondering just And the same then along commercial fourth lines, the caused of low sequentially.

to So you just guess, with if I do to if we line start sequential that start have expectations, that think up. one commercial that growth in your revenue I’ll follow accelerate? will was see really wondering and so, when

Robert Stefanovich

Maybe to the just growth. revenue Yeah. address

Overall, to slowdown, and if right. the some that about historic grew about in you MVE, both absolutely XXs year-over-year year-over-year, but XX% slippage and MVE. of the a XX%. We significant, is for high grew did without want MVE CRYOPDP You’re at not information that growth CRYOPDP look of somewhat see

some supply have been the and been forth. already just implemented. overall challenges, related Initiatives there inflationary impact so has to in So trends QX chain

those of place take Some immediately.

certain example price of Some increases. over happen is, those One time.

Mark let terms for to I’ll In commercial revenue of commercial QX the revenue, results. the speak and outlook

Dr. Mark Sawicki

Robert. Thanks, Yeah.

at If its commercial manufacturing capacity. conversations, right our a you of issue all the their isn’t now commentaries customers look biggest and demand, -- take the

time. a a are in Those see of demand is And capacity to impact a Maryland. significant outstripping There’s that going huge in on new have Stein outside ramp the open, -- constraints fairly is and Amsterdam. capacity opening Frederick, that’ll significantly. a facility bringing Kite Novartis is new opening so, they facility Switzerland you’ll once of facility amount coming accelerate capacity this in is substantial online. point BMS at new online.

for will addressable second-line patient and also will is population, demand second-line the top move also to population, capacity the substantially YESCARTA here increase of on patient aspect BREYANZI, from which The the significantly increased expansion. the which third-line

David Saxon

that. it. shot And you for Okay. you -- give a Thanks Got guidance, but take know didn’t I don’t I’ll at then it.

there’s that of range estimates XXXX. a just So, for given wide

reflects the current Just my it’s think Do Prague of capacity hear with -- the around MVE screen wanted according comfort these level you constraints headwind, and to adequately impact your New maybe million just head XXX. to some you that of consensus mentioned? net $X

Jerrell Shelton

And we can, have to to starting in to us unlocked give months to indirectly, then place next to years, goals over do. however. terms an see restate margin million. can, a of That ramp in cannot asking million of goal. we terms we the expect for things. is gross revenue Well, some of growth guidance, of overall, firm. you’re put $XXX some EBITDA in in which commercial revenue few Again, effect, still We our reach $XXX improvement aspirational and can we and One to quarters XX% the we the XX% see and of target our also adjusted in XXXX

those are we biopharma strong. again, continue then, very So be reiterate. still within things can market that And to dynamics the

have X clinical from to trials trials and continue his clinical X X to X grow Phase commercialization. We and of that Phase to that flywheel to Phase to continues migrate Phase up

maturing commercial very stages at coming we’re understand therapies of market and this to have we the So market. to early

David Saxon

much the for questions. Thanks Got it. taking so

Jerrell Shelton

Welcome.

Operator

next Jefferies. Couillard of Instructions] comes the [Operator from with Our Brandon question line

you question. your may may proceed with You

Brandon Couillard

Butchered right. All one. that

Jerrell Shelton

Exactly.

Brandon Couillard

I wasn’t front, A me if in first any the of was your the given of questions, I that couple sure not? the guess, M&A on change or conversations Jerry, tenor priorities? target an update that of Do and maybe little making some of on and market just you the volatility more assets kind more reasonable general equity maybe a recently? see thinking guys.

Jerrell Shelton

of do Brandon, pipeline to recent as say a don’t certainly attention a and clients values it’s that a And and entertain close have us forward are pipeline, we continue we’ll We look our that and from -- workflows have up. and and companies services to us. nothing robust for and still we do I hear the will and private acquisitions look M&A we robust holding changed to of -- don’t pay Yeah. move of anything softening result that’s our their we workflows. clients sort But continue we software market. biostorage and you. help to the and the assist that But at But in then -- logistics has thing. do good

Robert Stefanovich

lucky And we are I think raising to to in it, add we terms and when funds of just smart did. were the

did we the So convertible.

of cash in investments. and We have cash strong a now $XXX short-term million balance

right talked the very global in well that then a we’ve drive about positioned. But the as One M&A solution the past for organic our discipline, want the such offer the the haven’t gene to developments, to creative, growth centers, fit strategy. the Cryosphere, cell chain are criteria that to also and such changed, to we the drive initiatives, overall the supply of We engineering as in good terms and corporate culture, the space. therapy continue

Brandon Couillard

any for be you few about stage to existing earlier do XXXX? -- likely biostorage in including to that those for it think initiatives then whereas Is incremental Cryosphere the revenues swapped commercial out there will can as that adopted materially are And of with to we new solution be do Thanks. Okay. a And then Cryosphere with XXXX, on expanded be more think products, programs? tap call out way of you services. and additive that kind a

Jerrell Shelton

Yeah.

take those turn. we’ll in So

two that will we’re So, as in relates centers Houston, be to this global in Texas, opening, quarter. the New one Jersey, it opening bioservices they one

is the on actually the and at this complete. active. So We CEOs construction point audits facilities are in have time

things. see Obviously, will those through revenue and audit time year. processes with takes to assets we this So go it associated a contribution

overall in you’ll impact facilities business. substantial systems start I Cryoport the it material against So see those a But XXXX contribution historical relates would to will XXXX, the from impact, to say, be business. as the in

so Cryosphere, to itself technology. next-generation relates a is it Cryosphere As

in as risk relates to it convey our and related security the built user and in and other consideration, to to mobility substantial and -- usability, field base been provide so, And client substantial securitization mitigation things. benefits designed essence, it’s

already we to on adoption So commercial to the think time. clients across that a it’s over our very board. going into have transition we’ve And strong very, fact, some commitment equipment in of had product

growing. is market overall very rapidly very, the However,

had up use. the of This on we will have still a significant equipment As utility share, we to mentioned, pick so that. in is just historical continue top

us a long-term. So flexibility it’ll our give more lot and capacity overall increase

Brandon Couillard

hop the That’s Okay. I’ll great. key. Thanks. back in

Operator

BTIG. next Our comes from David with of Larsen the line question

You may your question. with proceed

David Larsen

a like SG&A up looks costs. modeling. Robert, had Hi. talk a It basis higher on we little you little bit they can a what than about popped the been sequential bit

thoughts Just helpful. there be or would any color a Thanks lot.

Robert Stefanovich

Yes. And you’re right.

and both our but ready resources, up for at look and of there. costs You usually a then launch resources number as as the and units. increase Jersey importantly, and related business play in the There that for because this centers see you factors some implementation the reasons. to increase we’re the are overall, it’s SOX is audit also development additional for purpose. expect MVE in One, we’re year-end, continued of have SG&A. getting adding New resources stepping to bioservices added really capacity. and work that business throughout typically in a CRYOPDP Texas, by the role of of adding more to number But, engineering we’ve work of we we just added One, a units Yeah,

you compared performance we million adjusted last If in at by year perspective, look year. is about $XX breakeven as compared adjusted million, a million to last an a increase about from $X.X by operations things, the an of EBITDA perspective, general one, cash which $XX year EBITDA to We the for increased a number have from operating provided well.

increase things substantial out at understanding we activity SG&A in commercial in are the is over next same a that building what the that the moving So the expect years, but time, in direction, part number for increase again, of right a of we’re expense. that

David Larsen

that. supporting. than helpful. to rate was higher be that increase the in growth XX% the trials -- organic Thanks. which of incremental is revenue a trial, you’re What helpful. cells the any then, clinical there’s That’s noticed or And I clinical into trials number like But Great. there thoughts very color in those revenue incremental clinical much per would seems be or driving, just Okay.

Jerrell Shelton

It’s very, simple. very

strategy is our That’s paying the straightforward. of streams revenue of off. So very, very diversification

David Larsen

revenue… Multiple Okay.

Jerrell Shelton

want do Sawicki, elaborate you to that? Dr. on

Dr. Mark Sawicki

Yeah. Sure.

David Larsen

A little elaboration great. would be

Dr. Mark Sawicki

So we’re clinical to these programs, it moving relates right. support beyond strictly just as transportation of

been And the in distribution. out synergy-related are acquisition. so CRYOPDP We and now we’ve historically, revenue of we packaging -- pulling

activity. support is to business consulting us as are Our coming to to more so developmental clinical it lot maturing, work folks relates a

trial that so And clinical acceleration. see on where average manifested and that a the you spend that’s increasing us for is

Robert Stefanovich

key in there… another think point I

David Larsen

Okay.

Robert Stefanovich

contradict to just seeing one stage is because at pipeline more into not into that, the Mark in it’s … twos is maturing, all, trials. patient you’re turn additive twos, the threes, turn population later

David Larsen

Okay. very Great. Thanks much.

Operator

the for At of reached remarks. the any Jerry I back end question-and-answer this session. And over we have now to the turn time, will call closing

Jerrell Shelton

reach record support look to global talented Cryoport you results. wide We We number closing, our regarding due you balance we of continuing to executing who winning year us your our forward be of believe the strong and geographic footprint a another all our joining again interest our quarter. Thank next are position history. with of solid you successfully company’s in very a strongest sheet and your and the speaking for XXXX questions. and them. portfolio, our expansion trials year progress employees appreciate for diverse brand today. supported, will We strategy. further with reflecting XXXX being This in Thank appreciate growth, for top was clinical In a With topline was -- successful closing Cryoport.

you bid good now a evening. For we

Operator

This conference. today’s concludes

and may your disconnect at your a great participation time. Thank You day. you lines this for have

Cryoport (CYRX) 25 Feb 222021 Q4 Earnings call transcript