Earnings call transcript Q1 2023

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Operator

Welcome to the Cryoport First Quarter 2023 Earnings Conference Call.

Our host for today’s call is Todd Fromer, KCSA. [Operator Instructions] I would now like to turn the call over to your host, Todd Fromer.

You may begin.

Todd Fromer

Thank you, operator.

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

when management that forward-looking these Our statements are made. do believe reasonable as and

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

XA, in present time file Form the to cause and Securities risks or Commission. include, In addition, and filed with projections. Risk but elsewhere differ events uncertainties report described subject to, and limited with are and annual our uncertainties to certain time actual and Exchange those are on those expectations Item which in results, Exchange we that described could XX-K other forward-looking and reports These developments from and statements Factors Securities not from the our Commission in to risks materially

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

Jerrell Shelton

and afternoon, Sawicki; Heinzen. he Development of our COVID Officer, Dr. as Financial remotely Scientific Chief Officer, Thank Vice he appreciate and Investor you who gentlemen. afternoon is joining Relations, and With our President discovered Good and us virus, you, joining Todd. Chief today. contracted We Robert ladies this Mark Thomas our earnings Corporate our us call just is the Stefanovich,

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

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

today demand biopharma, quarter line results XX% continued and currency, first fueled achieved health. medicine each supply growth life was chain double-digit our by including or We in animal reproductive markets, for control $XX.X which temperature reported the at million. of Cryoport represents for revenue constant with of top solutions This XX% our sciences. growth of

Kite expand raw existing said located capacities, Maryland, The XXXX in to example, We Patient warehouse been foot to and the see and for global its XX,XXX momentum first Having produce commercial biopharma working facility for square CDMOs XX%. of XX% and growth capacity cellular has robust material continue cell has regenerative is which plans continues purpose in Frederick, of increase with current cellular supply for adjacent therapy its its revenue growth announced that, companies we storage to to the to the continue demand supply, restricted quarter. market and therapy constraints. biopharma industry’s in in outpace consistent continued with increasing by manufacturing centralizing drove medicine revenue Pharma testing. its chain commercial to operations therapy a

chain in therapy, new an our increased anticipated technology continued demand. as advanced As temperature-control our our in solutions and facilities investment the demand, is meet well with to the this industry capacity benefit excellent industry position in as therapy to from to manufacturing Cryoport gene growth advanced has and supply support cell

These and driving this the was growth trends of increased driven to population, Animal companion favorable demand animal Turning This XX% therapeutic demand developed emerging industry. in animals innovation year-over-year. by for animal increased for ownership are revenue protein and rising greater Health, markets. increased in

supply Cryoport future. this has chain and for higher market Health animal the serve the industry. growth solid health significant believe global We is positioned and top needs seeing activity companies of pharmaceutical potential from is to We’re Animal well a

significant Inception by presence rising supporting our by IPO of reproductive reproductive Boston key highlighted fertility market this progress recent solutions, Cryoport Systems challenges the quarter advancements is reproductive demographic which IVF. support the and to here, This brand medicine driven as growth increasing announcements technology and CryoStore. We which its this driven contracting also continued are our clinics potential number medicine and see in fertility regarding fertility primarily growth name in due under networks, with environmental child was bearing. during area, clinic grew our a our primarily in for for sold across strengthening the globe and is to XX% quarter. Cryoport

Our potential depth that. the financial team operations, around reflect the reflected strength goes the The as and results are of the breadth your supply also our performance our And our we of for chain at only serve. saying the The customers end Cryoport, the believe as dedication as and the people. of diversified we world. good first you strength solutions advanced as well of technologically quarter

and our Looking for remainder macroeconomic manufacturing through capacity gene momentum to cell recognizing current headwinds, the and of XXXX. we months the plan therapies constraints ahead, to continue

benefit We are the gene cell attractive advancements and and expect growth therapy to from that trends driving medical in industry.

and quarter, Phase XXX supported of XX X. first the of trials of end the with total XX clinical therapies Cryoport a of globally, in these As commercial

an or anticipated and to approvals XX filings, approvals additional XXXX. application expansion therapy up geographic expect new XX We additional in an XX label

at lines, the by for advanced leader solutions therapy temperature enhance clear competitive supply industry, We is validated intend features control X forefront are provides and solution X of and Cryoportal a chain advanced further life – sciences we to innovation. The management ISPE an the system. the advantages development remaining Version in and many our the launched those Version Along new logistics we Cryoportal GAP X enhancements. of recently

battle it the sciences X serving management is logistics knowledge, our to life ISPE first fact, system the In GAP industry. dated

therapy near additional derisking The Ultra follow customers. Cryosphere communication advanced shippers new security next-generation more Elite introduction out beginning This longer month, we will advanced began our Cold. provide – our Elite rolling with hold line, Elite times, will controls cutting-edge These and longer-term for Shipper the Cryoport temperature features with year-end.

pleased the are early Cold. condition cryogenic temperatures for This launch has advanced SkyTrax the room ranges been platform monitoring year-end. is temperature on temperatures feedback quite with the an system leap Elite release monitoring positive. revolutionary by a Customer system inclusively. technology sophisticated feedback system, is condition that Ultra scheduled condition supports control from to monitoring of generational to We a

Turning to CRYOPDP.

in the of We Philippines, most build in networks. one includes logistics United Poland expansion advanced and to Ireland, Japan, increased the continue out This the further biopharma global India, Spain. and States build-out world’s

into operations during regions San of the Antonio and expanding the the biostorage Additionally, Cryogene, our Philadelphia course will year. be

which these our also to supply for our through therapies. cell other standardized our growth addition means, autologous apheresis process new leukapheresis This continue and platform end-to-end In to we allogeneic activities, and therapies, cryopreservation as platform. a with to Syneos, such is partnerships integration with provides IntegriCell derived that increase collection is intended for prospects IntegriCell services

has We about to therapy and and the believe cell for transformative it are excited be potential very IntegriCell gene industry.

and support the want many floor the stronger deliver Cryoport please lines. is In Cryoport our can summary, that life thank for questions. supply solution, open I work life-saving solutions through temperature-controlled ever best than our open in sciences, sure for the commitment to make turn the which before. Operator, our gene to chain supporting selling you actions, therapies, team and

Operator

first comes Puneet Securities. with you. Thank Instructions] from today [Operator Souda Our SVB question

Puneet Souda

guys. hi my Yes, taking Thanks question. for

I evolving on So environment the And low first there there that to here given know provided change the as cryogenic PDP I I don’t you the just MVE you services? well change missed macro and the of one the for number. this in MVE there of sort for apologize business believe, and I if had year? as in the biotech products growth CRYOPDP, if expectations is sort teens, seeing in for Are funding, the and that any shipping demand any

Jerrell Shelton

are Is look, Puneet, questions. And – to macroeconomic this this Puneet? they not immune is headwinds. are we good

forth, is can levels, are Cryogene. and – it with Current on And to and also we definition so nothing see you general immune we disruptive Systems and mix so or going nicely is tell MVE forecasted. but Cryoport activity very mixed And conditions. is levels. I working. – CRYOPDP production finger had currently along there production that not production as put is that that anything a to some we those normal moving and returning what is normal normal is on

across our So have fingers board, the we crossed.

We’re reiterated optimistic that what our exactly continue to be guidance – will and what be this quarter. is it we’ve

Puneet Souda

the just up follow maybe That’s overall, tougher. – been funding on helpful. Okay. environment biotech has I if could And

capital. out quarter We on Phase with some to Just seeing to some the that X here and the been attrition past, trying preserve customers well. in what CDMOs headwinds of the you’ve biotechs. In emerging as your related the have trials might called directly this be wondering some and in saw conversations

maybe biotechs. Mark what from us curious to Can just So And business customers? give there, sort is a earlier-stage you’re question with hear the you’re for activities. of if hearing more hearing development on it’s you he what the

Jerrell Shelton

the it. If Puneet, and would that continue said macroeconomic unclear. to hear then don’t question, – certainly is anyone see before, it look, start I to and off, I we’ve I earlier because it, to it environment turn have said But Yes. clarity it, I’ll don’t things Mark. on and your has the just what we like I

So that is how it. do you face

some well, places, places you’re some not doing in So well. doing so you’re

about you sometimes not get trials, to magnification X Phase perhaps. – wasn’t about, customers in and probably MVE reservation of of said you It I time. this is was times. returned mix of it’s has encouragement, discussions there asked discouragement. a contraction new products with earlier, But you It’s Sometimes Phase But starting normal normal X. I as get think that just business some most our its indicate in our

mixed. it’s So

it And who turn to marketplace. is the so closer to I’ll Mark,

Mark Sawicki

to their as Overall, folks the is have programs driving you’re really winners I that what are as focusing possible. highest and probability on think seeing quickly monetize really those that

consistent And to robust Phase X. of so we year. a to progression do throughout a And Xs balance see activity programs see Phase Phase pipeline. through continuing that We of the robust We going going to activity. anticipate what we see the see X. Phase filing Xs the

think I a environment. necessarily negative it’s So don’t

market. have I return investment. programs that That’s think I against we’re the putting the seeing for environment is really on around the their focused will quickest cash think what those

cell the very Our of and very, view gene contract optimistic partners have overall. space all a

from reservation So I contract cell there’s or any manufacturing right around now. research a and gene the space that think standpoint, don’t

Jerrell Shelton

more add to versus other some here, XX piece of And thing not may terminated. of Puneet, chance have completed trials XX review out, one you for through. QX, a go those in I’d But in for topped XX color. The the had QX that were just you trials that

good the those next So that’s on because a to sign can move phase. trials

number the the had And that’s Mark maturation about. was XX. So number adds adds last in of the that we quarter quarter was of had fourth first the and of XX talking was the year we in

trials the So in we trial come new is news are good the maturing. and starts seeing and pipeline new keeps still

Mark Sawicki

So the are is there. They activity focusing still it. just

Unidentified Analyst

around just terms more are in Got capacity hearing if smaller around it. a the That’s capacity commercial, therapy. And because companies therapies I of efforts or larger companies some one of we companies from squeeze for cell larger and expansions are they helpful. in the cell larger among seeing capacities last projects resources could have of expansions maybe just some the about

of maybe for therapies expansion that? the What year? you. Are of the Thank this you you – your the expectations for are upside seeing from through a sort existing question are any commercial Mark. So is

Mark Sawicki

to at chart is in conveys there think additional our Page clearly a quarter Puneet, it best revenue a X capacity end So that online. the – coming associated is impact to take the really in There really do on thing and volume review. I to good starts look with

bringing than that around in very is obviously, volume site BMS see lines. in very, period of short both there a additional and active efforts Kite more online. doubled It time. online And that very support capacity, to product we brought when can very clearly You their with that, Janssen Maryland know their their very, ongoing

we online, cadence. wholeheartedly soon seeing that as similar As anticipate comes capacity that

Jerrell Shelton

product also or week last making this Novartis, with have You whereby it J&J/Janssen/Legend week, for early just deal I was be may seen J&J/Legend/Janssen. is think Novartis – going did late a to

Mark Sawicki

the of Plains. Moore in Out facility

Jerrell Shelton

Yes, correct.

Unidentified Analyst

the was Yes, one referring I Legend to. was what

so Okay. guys. much. Thanks Great, Alright.

Jerrell Shelton

Thanks.

Operator

Goulard will come from with Your Brandon Jefferies. next question

Matthew Stanton

of around a point? Revenue that? color do on margins. then Matt seeing supply Robert, couple gross start Can supply was And expect million chain the costs still you the for to the to but bit is moving color contracted you’re headwinds drove low rest like elevated through any some This year hopefully a provide should a of quarter-over-quarter, the abate? gross be those actually more gross up It chain. you Brandon. when dollars on tied sounds margins here. maybe on And margins XQ bit what just

Robert Stefanovich

a last year’s slight want the improvement clarity that’s that you Well, gross margin. to great overall the for do because margins question. compared some to if give look on quarter, the I for quarter a gross it’s at

XX.X% increase If X.X you look is we at margin, This actually to positive. points the about from percentage have services an XX.X%.

So we’re little leverage on Cryoport both well seeing CRYOPDP’s for business. operating a of Systems side, the bit as services for as

one-time If product impact. the you a at that’s look side, really

So only related that product year up mentioning. really business partially favorable unusual during the was for safety as unfavorable that we expect pressures variances Jerry XX%. second a is of result QX. of And only building from specifically to well XX% as see a by That’s half to stock mix offset drop, was MVE you which manufacturing to the see in the inflationary as

So only this is expect something in that QX. we

that in rest and expect for We the the normalize year. of QX to

So MVE the again, for part And unusual previous for the you really event of to the latter in margin and year. related if positive buildup to compared of year safety upside stock an look last QX. QX at on QX one-time last of the services,

Matthew Stanton

helpful you mentioned about as specific maybe has lot, know new recap, That’s color. their guys the share talk approval. Thanks. then been a don’t much companies, I you it regulatory XQ but the potential in Sarepta really And

any time, could collection, storage, today, you them you some you provide how whether might fulfillment, of the kind on serve on color it over where given of exactly portfolio expands chance supporting the and Just be potentially it’s evolution where them?

Mark Sawicki

clear not Sarepta. doing exactly what We it knowledge, I next tell them. extent what of that think the months will Yes. honestly couple is. I do It’s we’re do the relationship relationship for with in that become a you have public guys. of can’t you for

Matthew Stanton

New we Texas. then anniversary opening approach formal for one in Jerry, new of of logistics and as Jersey in And maybe global Thanks. the Okay. June the two the facilities X-year

you brought Just talk utilization various that your about those quarters a at today there? fully now under the up and few Thanks. Are how services for expected and running is your progress all got is to belt, been trended online centers where today? you’ve have

Jerrell Shelton

Systems. Yes, absolutely. They of part are Cryoport a

get a take does progress. capacity going defer their Mark full to nature add basically lot making schedule, facilities to up to moment. own this of to just but we’re to I’m But Mark, want So a that? it in time to of do you

Mark Sawicki

The are client averaging facilities which No, week a now, right Jerry right. The very a are good They of is are very, activity. fully assets audit operational. is onboarding indication one absolutely open. over

positive. of the based at so process. extremely is associated there And if is through time that take that, a you onboarding with look cycle obviously on going supplier a approval audit robust schedule And an

Matthew Stanton

Thank Super. you.

Operator

Your John question UBS. next come will Sourbeer from with

John Sourbeer

Hi, taking question. for the thanks

for approvals here the couple There currently a serve allogeneic of you is throughout year. potential therapy. think I one additional

you’re that out currently, on additional and on some allogeneic those Just some color, you here just next therapies playing back if year? the serving given potentially there where revenue look of opportunities over you how of see the any

Mark Sawicki

Yes. clinical in as allogeneic initiate supported which portfolio late-stage XX% commercialization time, Atara, our commercial do mean, I of you fairly I as very, mean, see a those obviously, and ratio. well this launch as activity number in getting is historically of good can And their are a significant ready activity. support point very which to we’ve at our activity, in over is

John Sourbeer

earlier. capacity or and biotech digging pharma Puneet Okay, your with that to the revenues in how on partners this guess going some asked months is talk think on ramp adding when you do partners to those that guess to I got CDMO XX you I what guess, further it. I coming online? next commercial over of

Mark Sawicki

relates it the our portfolio? allogeneic or As to portfolio, overall

John Sourbeer

portfolio, overall the Yes, yes.

Mark Sawicki

it’s Yes. I mean the capacity. to overall directly related manufacturing

when here, with status, play earlier or as to have once drive line markets they new different will of at have been trying Obviously, capacity reimbursement demand environmental – drive to into they any they going and a looking significant online. they second agreements be line huge have announced line, so contributor play that fourth out regulatory complex an or a may more that capacity well not it’s you factors ramp absolutely have just approval to like approval to manufacturing the the in got will factors are And of couple reimbursement to ramp population. Europe that You’ve they Obviously, capacity which have basically, other comes are building particular at is will overall play. BMS yet in a you’re patient those strictly launched entity, where patient considerations, as from moving addressable right?

Robert Stefanovich

revenue mentioned XX% if earnings the Cryoport commercial revenue just noted our add Systems, over that about in XX%. sequentially about Maybe grew you commercial and to you look at to it, we by QX year-over-year for release, the

John Sourbeer

thoughts last a my I what valuations? seeing M&A? opportunities couple appreciate there, on when out around capital then are done deals And one here on end. tuck-in it. you’re deployment, Any You’ve Right. of

Jerrell Shelton

We’re and constant benefit constantly looking capital the at – company acquisitions it’s the for that’s thing. of of deployment

can say that. So all I about

Robert Stefanovich

it investors, really to Maybe are positioned. just to we well obviously add for

balance very sheet. have We strong

very convertible interest very, rates. notes have good at We

looking at positioned both growth we’re acquisition as well to to well So organic opportunities. drive as continue

John Sourbeer

Thanks.

Operator

Your next question Larsen David with will from come BTIG.

David Larsen

good Hi, much. large Thanks MVE Can How congrats quarter. for you the trending? talk on and demand very freezers? that about a is

Jerrell Shelton

to the much normal, Yes, David. pretty back mix is

David Larsen

Okay.

almost think, good year-over-year. growth So I in we saw mean, I really XX% revenue, product up

normal and for right? mix the shipments and large to stabilized, freezers has back is demand So

Jerrell Shelton

Yes. had quarter. we That’s – a good

David Larsen

of noticeable end on impact is I seeing May? acute that clinical are sites the the concluding anything the hospital there emergency volumes in like that significantly having any overall, like then care any On the your that’s that, we’re mean business to up like not access really? year-over-year. And or trial Okay. or is side, health impact public is

Jerrell Shelton

David. really, Not

Mark Sawicki

noticed that. we impact on any haven’t Yes,

David Larsen

Okay. very And your helpful. then X Logistics to Any Cryoportal management be abilities this Version would color just business? any platform book color will on bring keep the there

Mark Sawicki

Yes.

actually launched that we this So of on week. Monday

So implementation the is ongoing.

And rolling forward. our supporting clients out so moving obviously, into been our activity and it’s

a – implementation big of changes biggest couple is VX. with So, one there the the of

itself. X basically And security So built first a GAP have – product, the data will is platform of foremost, a in. it which the it is the and stronger lot significantly enhances analytics validated regulatory

have so the platform assessment to data. we’re system. to and the of data that the in the outcomes indexable do that data integrate the of with And is it’s significant transportation ability seeing and in the doing complex that increase requests and to the want our clients And tie reason a we’re patient

have want that conduit analyze the ability so And than the data historical to they more effectively platform. to that and

around As we’re ultimately to well well it’s be mobile providing security, product as rolling out. platform also all new that going the more much remote variety as systems, considerations of implementation on amenable with as security a a wider products to basis

whole into is of a there it. that elements So host different tie

David Larsen

margin? Robert, And increases by you MVE Okay. able raw being or those think, price or help mentioned market? around to Great. inflation to like stock to Like offset the or safety about that? on facing raising just more side. color the prices side freight? received provide And I you for that? well of so, up get building maintain the are are cost price on you Can Are And any if you something headwinds materials are steel then semiconductors Thanks. any you MVE the

Jerrell Shelton

that. just off Robert, start with let me

paradigm they and of temporary we First of sometimes have pricing a at all, charges. MVE, surcharges are includes that David,

have we charges. we temporary we so surcharges, and And have price have increases,

cost the as so point was a that And at high earlier no element. And on of significant. on. the It’s it longer depends

what inventory had We to referring Robert from have is overhang was have because to increase chain there material – some our the to supply is had we COVID. raw in

from materials, and – to And the did economics did XX went to obtain we increase to XX get the days. we order slightly. right so on our material We inventory days in

really pressures was pricing there. increase. an it So We don’t have

because the charges we temporary the or increases. in sub-charges, pricing resistance we have our the we price have We no have and explain we the have market why

do So that? to to Robert, you want add

Robert Stefanovich

one-time And only last on and safety The referring was kind of what wanted was No. into that QX. stock, of the really thing of year, I impact to I margins QX. bled kind and that like had in impact buildup to an clarify, a

was really half really It second was to last So reference. related that quarter and of the the year. my fourth

David Larsen

much. Okay. Thanks Congrats very on quarter. a good

Jerrell Shelton

Thank you.

Robert Stefanovich

you. Thank

Operator

Paul from come Capital. Knight will question next KeyBanc with Your

Paul Knight

This believe. for is I Mark,

these FDA this increased constraints, an think, like the One know Mark. they X you X, PDUFA the was getting issue? think seems that FDA was staffers. they Do under And on or of and was – resolved have I I is It it side?

Mark Sawicki

about bottleneck You’re mean that on approval I an talking a side. was from Yes. standpoint? there definitively

yes, have So do positive I will a impact. think that

Paul Knight

while, a to kind the takes FDA, It assuming rolling this get of right? I’m at

Mark Sawicki

what it’s it’s is Yes, it’s not doing increasing instantaneous. basically, though But right. the throughput,

will And going down them But are time to additional FDA at work in for assist to so it’s the the to they going that acceleration. yes, – staffing take backlog.

Jerrell Shelton

of I trying in and I they a double to January this they to as process, therapies with FDA did, they starts the to heads goal have know there, only well. staff. are wave what’s trial know And new that are deal to that had they don’t but but get presentation add in not their where believe through.

Mark Sawicki

the four end. with see after first quarter additional We Yes. quarter one of did applications filing our in

So, activity through. there moving is

Paul Knight

mass? in on and lab it it to of produce get as they of Is well. how And CDMOs it these trying Is capacity Okay. to of then out an and enough We is is issue the or it follow some this to or understanding hoods you scale physical figure issue it, enough how just are to therapies? of it capacity. talked some done

Mark Sawicki

Yes.

answer right. it’s both, the short So, is

to So, product. space manufacture one is just raw physical

clean within efficiencies The second room the environment. is

increases and square through systems to they in process push clean additional will environment, volume biggest against same capacity are see of really are ability the the that some – moving footage. which systems from And a to so room their you closed drivers open

benefits. Hopefully, pick [ph] both these you get too there you And to in Paul, will ALO see therapies up. starting you can ultimately, raise batches. So,

Paul Knight

Yes.

then in an I that to seems Okay. rate of with over. question MVE yet business be is, destocking, the in last I think you hindsight world issue MVE It would growth Jerry? do the I guess stocking the be, What And and really would another guess. long-term was have

Mark Sawicki

Paul, just they you, dewars. to don’t correct freezers – but don’t that Jerry answer. stock don’t stock or doesn’t can It freezers stock customers way, operate we or

Jerrell Shelton

be freezers Paul, the rate growth long-term is sciences. long-term related to life the the of growth going of to biology in particularly general,

is, So, we if life there manufacture going mean samples, the MVE question manufacture their at way it. in cellular, are around that’s and what because it’s product I you and grow sciences no is need to the rate applications serve. you commercial who you your

guess XX%. our there is So, XX% to

Paul Knight

Got it.

you. Thank Okay.

Operator

with David & question comes next from Needham Saxon Company. Your

David Saxon

Thanks of about of Great. a believe will which the in I kind building footprint I acquired script, revenue U.S., everyone. Hi on PDP out the talked PDP. Maybe drives start you for you when lot questions. In the taking the about you the synergies talked them.

So, ask to drives later ‘XX, longer that can I that I is And you benefit from in something to what take specifically those or capture? guess does synergies? wanted

Mark Sawicki

Yes.

is support right. white the themselves high a and to service, density of things. couple are So, to be ability the around tied synergies able One touch, glove

And it a a managing They based into shows had It’s to needs three has the tracked. – relates it value of product and where systems stick to it activity there product queue are on time later. high are extremely it. life and and times custody the be at So, as throw These it are the it tight all not FedEx you cycle. of touch of a days of service. the a that sensitivity in the basically historically that all lines up box is

we the to into. CRYOPDP have any So, as all are of that competency elements in met be the those states, geography building they for and asset out of step

on working that. actively are we So,

building are staff. actively We out

We are building capacity. out

getting as into of building are to support we having that. that infrastructure to is is basis. CRYOPDP be And on an bearing written and We number support informatics increasing accelerating an it able filings out

number continues to accelerate. that to So, as will that build out, continue

David Saxon

on relates it. has portfolio. A as lot super Got That’s MVE the been it helpful. freezer asked to

the ask dewars there? to on how wanted I side, So, demand is trending

Jerrell Shelton

is trend now. production. on at an expansion the New Prague very plant, in fact, doing plant is The side. manufactured And dewar we side dewar going in on The is which at the that well record have

David Saxon

it. And Can year? should we flow maybe profitability? then kind about to about just one path much. burn you for talk Got of so How CapEx last cash me. for think the Okay. cash Thanks the and

Jerrell Shelton

will at and at it look that are for it X as in in don’t years, the look look as We at last don’t this We years burn. anything cash way. We has substantial future. we investment, CapEx it investing been to and our X continue the be or And year.

unusual So, nothing in the CapEx area.

firm on. returns have on. we business We we reaffirmed And at of then the gets the the it our our on, did each of we the impact. industry looked of a it because projects distorted income that some is. We going that was we peel core strong, have All back of going have and projects statement will these projects recently going and have we financials that because around

about heard few the have of a tracks. You cloud

heard have Cryosphere. about You

Elite about line. You the have heard

have just about on. Cryoportal Version work You is heard launched. X kinds we the to that we continue that There of those things

You Verio. the also could to go

have in we – capital get called on a industry And investing we where projects Fusion. undertaking. depend can secret that project could a return, moving. to will You us great these we go are investment you things return. all of are a Kona But the But Project

Mark Sawicki

lies the of Yes. to Maybe to opportunity to add that it, just trying ahead I us. we mean where are seize obviously,

therapies. gene chain We selling supply within really have some for strong the roles

our see operating revenue. the We Like gross are trying I of bit building services out that. increasing and to to in really we you are terms the supply little chain a mentioned side, additional within companies capture had balance capabilities on leverage margins, of

at we EBITDA. over adjusted So, as was positive, look Adjusted last over QX. of well EBITDA QX year increased as both

have the for operating activities We from cash quarter. positive

making time, to like trying but balance in in we same are, increase available the are said, the to our commercially capabilities investments we capacity and therapies. Jerry So, it, building out handle at

David Saxon

Thank Great. you.

Operator

we will go Johnson next Stephens. to with [Operator Instructions] And Jacob

Jacob Johnson

Hey. am that Project guessing I about Good afternoon wouldn’t question. everybody. should I feel answer you Kona, like but ask I

Jerrell Shelton

would you knew ask I about the secret.

Jacob Johnson

You mentioned it, Jerry.

You reports of the weeks, weakness in have heard we some some starting couple last Maybe China, region. that of on opened the door. in the one just

Just are you there. curious seeing what of kind

Jerrell Shelton

On China?

Jacob Johnson

on Yes, China.

Jerrell Shelton

Okay.

China speak, around curtain, in a to Look, around I operations, just well and as a that very business so different markets, presence also different of operation a domestic We But China. in So, successfully all China not we That to it It in operate iron wanted very the it. will the has world. of part of at the of serve manufacture some of accessories curtain clarify. very we And somewhat plant. curtain do It’s areas Out a economy. is our has it, our in our we point. China components and well. as doing is we foreign expand market well. but

Jacob Johnson

year? mentioned XQ gets quarter, that of the I But of for to the as a this the challenging guess for can to am get you kind throughout growth macro the to some just start the year, macro, off talk key continue to of And Thanks to about Okay. the revenue sequentially MVE, of this improve year for to that drivers and solid you kind stabilize of which drivers the year. would year, of thinking guidance you about back I guidance the Jerry, to just Jerry. kind the And kind then has growth a here. going

Jerrell Shelton

at. our the from the Yes. on gene And careful confidence is you what of we cell who Well, who depending at forecast all – the the primarily, foreseeable and of look year grow mean XX% for and on bottom analysis per to is businesses. therapy our based But future, you up. the markets, I market budget

So, we visibility all revenue revenue on have therapy got Jacob. our think our up. gene step cell will We and streams, that of

our the and that We in will we are confident, launching across will they frankly, are and bring new company revenue, world. and new products services, grow

Jacob Johnson

just Okay. And maybe last question.

going? about on much you talked curious effort during that in really your IntegriCell it any color but haven’t prepared kind comments, Q&A, how we Just is of just mentioned

Jerrell Shelton

it a takes like and to a infancy, its in is effort platform while IntegriCell That out. build

Texas. more one two be And But Belgium built, have on Houston, it couple a of one will to and will not some comments validated, yet Mark, you that. plants quite have year. years Liege, are out. take they We in but may it They this roll in being

Mark Sawicki

Yes.

So, are nearing as had mentioned, phase. construction Jerry of the completion we

this We play. have nominal a this them the to and to go as said, will late anticipate through revenue a this is to get XXXX. But Jerry – contribute GMP be sometime validation in this will that end and activity year we happen year, revenue – revenue approved. of is obviously, increasing long-term starting very into We

So, talking areas one of the we have lot capacity. a been about

that’s barrier it collect material into As online, to the to capacity to going significant process. relates comes ability patient the you a have are as and going manufacturing manufacturing availability go to the the

capacity So, online to to having all going competency this a scalable material of a collect consideration. to is support coming be critical

in the expansion all to support to so this that And have in future. of we order build

we are doing So, that capacity and in online. we coming that’s of obviously one doing advance the this, reasons of that it are

that it waiting starts capacity emerge. to So, ready as it’s and for

Jacob Johnson

it leave there. will Thanks guys. I Perfect.

Jerrell Shelton

Thank you.

Operator

next Financial. Your will with B. Zhi question Riley come Yuan from

Yuan Zhi

Good the done and I Jersey New you missed good afternoon. Thank Texas? have Maybe new you you in have replicating clarify questions quarter. are our and if a on guys logistics opening centers this. congrats U.S., for you Can taking what in

Mark Sawicki

Yes.

system is than So, we not on there any the what states up new the sites opened currently other being have. side, in

supply our logistics will at center, the time. the U.S. this additional full have XXXX. which there in upgrading open is in and well that, sometime competencies, will our logistics are center, nothing in as facility which as will beyond But we We bioservices to chain a cryopreservation have California global

out We world. rest are on of focused building

building We the evaluating are going UK that site Paris building we well as as out into have and this right now. we – the looking to expansion be year are later

Yuan Zhi

it. Got That’s helpful. very

highly the but will growth your customer, that anticipated while of things therapy services? have EHA this you their of has Conference most your think product near-term questions care asked cell a been we of before, at the data logistics Medical think be I Do year. Legend, this about one driver will is for

Mark Sawicki

XXX%. will It growth, to absolutely contribute revenue Yes.

Jerrell Shelton

therapy. We one customer just are or on not dependent one

customers therapies and commercial broad base of are to we ramping, that We have the that therapies have market. more coming anticipate a

revenue of base broad we a it’s that So, have.

Yuan Zhi

That’s Thank it. Got you. all our questions.

Jerrell Shelton

Thank you.

Operator

further to I would any remarks. for to It this Instructions] turn appears conference additional there like time. no back questions the our at [Operator closing are hosts or

Jerrell Shelton

our always across all questions your growth It’s delivered another for strong summary, you discussion. and Thank Cryoport a pleasure. In with markets. revenue quarter double-digit

support actions growth. to introduce to new in take innovation, continued company’s long-term our products also invest We strategic and

XXXX, mindful life At in we anticipate same help time, for and will always looking industry being our opportunities future at we support increase trends while drive continue our global sciences. headwinds, move to macroeconomic supply of the to that strategic forward As are favorable we footprint chain growth.

chain our to life good Our dedicated again we quarter. the is you joining for forward to being the supply us of We you you your company, our appreciate essential continuing hope today. look We have updating progress Thank serving evening. a next on support sciences. company team and

Operator

today’s call. concludes conference this And Thank for attending. you

Cryoport (CYRX) 4 May 232023 Q1 Earnings call transcript