CYRX - Earnings call transcript Q4 2023

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Operator

Good afternoon, and welcome to Cryoport's Fourth Quarter and Full Year 2023 Conference Call. [Operator Instructions] As a reminder, this call is being recorded.I would now like to turn the call over to your host, Todd Fromer, from KCSA Strategic Communications. Please go ahead.

Todd Fromer

Thank you, operator.

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

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

are revise do in described now Jerrell experience elsewhere in pleasure expectations include, events of reliance publicly the or call to otherwise, However, only uncertainties of information date the that or by to, from events as new undue which but the other and is such with filed turn required floor forward-looking and file to not any Securities statements to historical Cryoport. to Exchange those Shelton, is Mr. on Chief XX-K any time the Exchange law.In Commission.With risks Executive annual further, forward-looking We obligation future over Factors undertake Jerry, Securities and limited time could These you Risk or it with we our as should subject to not and described Commission or are risks and projections. the in on nothing to Form because whether forward-looking present the developments reports except my Officer yours. XA, results, update and not from those report our and actual Item materially and of statements when any place as cause uncertainties a such speak statements, addition, made. statements differ certain result our

Jerrell Shelton

under Vice call our Scientific is this our Officer, afternoon and Investor Stefanovich; uploaded a Investor Chief With section. Mark provides our gentlemen. our Thank It President and a Chief News Relations Thank you, and Todd. XXXX us and found Events have of review performance afternoon, Corporate can Good and outlook. you today. review in and Heinzen.As Relations, This business quarter Dr. financial Development and our our Thomas for Robert of website. operational Sawicki; Financial we document joining to be Officer, and earnings the ladies reminder, fourth general document full year a

all had range. to not you $XXX.X and revenue into then website it. the I of in in business. I'll turned which growth challenging and out chance it, business, be operating you environment, move fiscal to greater would we as Product levels, year brief even time, guidance year.At our of a historical revenue further our you've XXXX, encourage XXXX, to a XXXX part of of same your the to to revenue we If began update units. as which read saw impacted in answering for reported revenue the revenue total was last our it a global stabilize MVE lower across became provide our questions.Today, service with a was go on business than we'll million quarter download within our

revenue, which is our XX% our business over represents of service core million in Our generating the of growth, driver total. $XXX

year, XX growth Phase December of had XXX with of revenue a trials record XX, well part these Phase XXXX, of this Gene as supported & in of trials a in of we a in clinical growth, Cell over of therapy XX year-over-year worldwide, as As commercial XXX III and XX%.As increase II. revenue net of we XX% BioStorage/BioServices clinical last

therapies prior support revenue a in it's significant from clinical trial think for commercialization. long-term portfolio up most year. point through proceed that XX trials constitutes XX to important out toward therapies the Cryoport, currently opportunity growth as our clinical commercial I We

anticipated X this XX application We filings again an by therapy driven expect grow an year, the number and anticipated approvals. to new

new X -- had filing we approved therapy this new fact, X have therapies year. X already BLA and In

start.Product So levels. pretty in was lower we're than XXXX historical good revenue to off a

revenue in MVE MVE resilient part mankind, way respected transform able is It for and nascent provider in for of generate to a Express, leader in for that stabilize and further develop maintain in USA just systems. previously, a the with and been therapy and As well. we practice the leadership, that growth global our daily business short-term, partners.For as it Solutions including take that perspective, stage Putting reported we strategic in will longer-term way international the the short-term will the medicine investments CRYOPDP's to cost actions are forming XXXX Bluebird company. We we and these of our the gene a cash that we began for business continued of intent domestic still ourselves that and transportation Biological with strong year. manufacturer the vision, end, think to acquired and services but industry controls, we position in roll-out. the few in not the of margins way flow a will actions targeted has support and confident example, is the took its strengthen relationships considerable MVE our a latter time-sensitive betterment To during to is develop to cryogenic anomalies for the a remain future.I through industry the -- cell of making

logistics collection solutions also condition are first a gene integrated to temperature-controlled therapy. impacts support provide center.Through collaboration chain logistics and Catapult which into the and with the expanded expanded in and arguably such U.K. in pay growth robust Pac, a including cell supply innovation is investments and The completed our presence had temperature and ecosystem. known logistics we leveraging revenue acquisition of a the our of our cell of We control build of welcoming over sciences.It platform solutions end, forming therapy supply tactical partnerships new will time. these We a and provides ramp for relationship technology our strategic formerly cell located in the TecXmed as future Match number to activity a we IntegriCell Europe. to our in company will life with company life in our Cell support growing Golden commercial to Asia the trials network the additional center new England is platform donor most allogeneic with concentrated Stevenage and monitoring Tokyo, support Express of focus next-generation with have of also gene that to developed Triangle, technology strategic be activities sciences our gene we clinical establishing the years through which on therapy development will Gene and attention Stevenage solutions in the as bolster with our chain that it business APAC manufacturing communication its development Nippon partnership, new which And transformed Be for beyond XXXX, in clients Sciences, cryopreservation. from of headquartered we BioTherapies, this and that recruitment partnership center up a strategic NMDP worldwide.Our Europe.We over In to Life Therapy key therapies, developed included all throughout on

June synovial application treating beta dystrophy example, has afami-cel thalassemia. up receive gene muscular for of cell investigational the and year, For CRISPR Wall Sarepta's than CASGEVY engineered of the ELEVIDYS a therapy may grow, Street ramp much this our and treatment duchenne faster for and patients driving therapy And And ramped for for had of market Sarepta bioservice Vertex of treatment acceptance by sickle further sarcoma.As positive developments FDA's revenue the will of ELEVIDYS Iovance other these have of introduced AMTAGVI T approval anticipated XXXX biologic into for the therapies growth age review for FDA's license removes that advanced expansion in for all the into commercial begin cell and current client that biotherapies continued revenue. priority commercial Adaptimmune's restrictions.Other commercial the therapy and to melanoma. an The up, are approval logistics label FDA's include of advanced predicted.

of industry cutting-edge are hold and risk Cryoport and new Cryoport including by setting the of and industry exceeding We mitigation. innovative providing continue new a standards XX a shipper.These products therapy revolutionary UltraCold to times set and Elite gene bar, additional evidenced the services, include which for the minus temperature standard as shippers, shippers launch Elite cell line the

Therefore, compliance integrated technologies I've improvement industry-leading advanced serve $XXX Our but we full platform. sciences With a progressive continue few focus to million examples we for verified and cell -- of of solid leveraging the on our year. are the the million.As $XXX introductions through throughout to of we continue globally. year through XXXX growth today long-term show drivers brands alone continues providing range last to outlined our strategy. growth of while remarks. service business.That life-saving gene data paused more and support my year product regulatory stronger to strengthening like XXXX move market actions Growth to capitalizing prepared be will of in enable the revenue these, we chain our our the to in therapy to guidance care sectors transport our on therapies.The we're just cell along a receive management XXXX, end-to-end developments and life and XXXX as transparency solutions service a approval foundation so, therapies other the growth the growth our our in these or progressive clients and gene We gene Cryoport over with year and in and of the with therapy and cell overall believe business industry build will our concludes expect advancement of expand better

your for please the Now questions. we're open take happy to questions. lines Operator,

Operator

Leerink from first [Operator Puneet comes Instructions] question Partners. of Souda Your

Puneet Souda

[Technical Difficulty]

Jerrell Shelton

you're clearly. your coming I not can't understand ] Puneet, [ question. in Puneet,

Puneet Souda

[Technical Difficulty]

Jerrell Shelton

go fix you and question. your to situation Operator, to Puneet, back why next try don't in. don't you hop the why

Operator

comes Needham. Saxon Your from next question David of

David Saxon

Hopefully, I a to can wanted okay. -- me better. little you hear

the So the is MVE quarter, it portfolio rest sounds of like seeing fourth the the comments stabilizing growth. around in

about cadence ask So to I wanted of the revenue year. the throughout

fourth Looking you do typically off back, sequentially the grow quarter.

sequentially quarter, about what quarter? reaction to the seeing And at of with quarter. $XX we first the So trend any in the should have around And million quick you first saw then that kind consensus follow-up. and continuing for a think fourth I'll growth in

Jerrell Shelton

in to what give about progressive a think, take and in haircut so coming suggest comments and back. tried assumption you past I trend, know, is suggested couple level. funding improvement good funding But as think in and The off guidance. was industry we is the year. that's think don't quarterly throughout did But your my of -- to growth we forth. the Dave, I of fine. I we the of for a the years think terms terms I We

we're therapies we've of approved, start. we As and good couple already a a got I mentioned, to think off

So think we be the progressively better throughout we'll year.

Robert Stefanovich

being really revenue services the the growth mentioned driver. we And

the streams, So if seen, critical that at seen we've of on seen the significant we've revenue where of QX the where growth XX% revenue the year-over-year and you revenue both look year-over-year X 'XX XX% growth and in we've side actually commercial XX% growth. -- performance again, or BioStorage/BioServices in

also some we in to as So that leading the expect revenues of to those continue are service well. grow 'XX

Jerrell Shelton

MVE and it's the the dominant And a around it's MVE David, improvement storage in #X progressive is lauded manufacturer business. It's is have -- it It systems there I and world. the in great share the cryogenic need that's biologic of world, [ and ] -- all too. business. market, for a we'll highly great the mean is owns

time. it -- over And It back that comes come so will come back will back. just

David Saxon

Okay. All a through specifically fourth. was the super ask fairly And then quarter third the wanted stable in and P&L, on then margin. down helpful. gross bit the It I to came the

to for think during we should happened XXXX, margin this what the gross how So for about cause then that year? contraction? And quarter the sequential

Robert Stefanovich

Again, you're right. Yes. on gross margin,

cost and overall additional XX.X% relatively of some If a a a we've ended being of little seen see true-ups. instances And gross kind on dip QX you'll margins, at bit side. year-over-year the in increase you services of amount look product kind then versus we the XX.X%. revenue QX more initial In of at have flat

going the alleviate a of But throughout forward stabilization the expect I purposes expect more QX increase our I in again, also and with of beyond. progressively gross for modeling some margin, in So to year. would of business, that would increasing

Operator

Your from Savant comes Morgan Stanley. next from Tejas question

Tejas Savant

Jerry -- you Rob, guide. on one for the

in conditions in recovery? are demand biopharma was rest of geography into are companies. weak baking about a you was what China baking recovery assuming the of half something as then Are half? the some the just you a Are guide question back exactly mean, on the in for life the the year? current of baking beyond for there in the I recovery science it curious essentially sort funding as continue 'XX like a a through Or easier in And lot comps? situation MVE you back for similar Just clearly, sort other in you well. you it of in

Jerrell Shelton

terms We going that don't to impression and in I a Tejas, in lot biopharma, our in we significant a domestically will China. remain right we think have we in for recession and it's less of China, on a tilting revenue. things. and a President volume. a and to for of do manufacturing recession we therapy, or all could a is make notwithstanding think couple freezers be in the year. a depend gene in That but or on That in It the it's of throughout now, be do progressive it overall in for China is implement, be improving XXXX we're of a past, ramp in it'll freezer we in meet geopolitical and anything. that. regard meeting we initiative MVE for about up to any have recession, manufacturing One, biotech the produced China buy right an a progressive China. especially progressing to to basis funding depression, total is that while. cell for unrisked take capacity this happy manufacturing But situation the to I China.We're freezers And of X% will them geopolitical mean, given But we'll on be action MVE's be year think basis.As And now. has a of a the of plant it's China -- at Xi's to part will a revenue. China than our more but taking

China on will is sure. this help situation. to think of going China China for We see -- recovering we But pressure a year that while. for part continue So the alleviate the don't

Mark W. Sawicki

Jerry, I on or just bioservices the have situation. funding biopharma one the thing

for But just so into may for I benefit. you're clinical X his in see funding we the comments upwards everybody where to approved activity, going aware, that's the make contribution improvement as what because benefit is in be Jerry is, So of the to as revenue allows approval as bioservices had it diversification the reinitiate obviously, already want had all and mentioned new lot opening a programs. space, to the that portfolio to biopharma of focused instantaneous recapitalizes that not commercial well piece. see significant start them The is another around of benefit the well and therapies long-term and as of that year.And space sure us, this is the really improvement a we the in that's mentioned revenue later year an as

Tejas Savant

how you where a of $XX business up you in That's trended with Can the on line situation holding in that high-end back sales? little help MVE that 'XX headwinds. the then to more book on bit, there? of really it. the looks envision perhaps pricing You've impairment consistently MVE color need in Got then Do what helpful. some like color to like, lean on feeding talked order top nudge bit a quarter? freezer well non-cash Jerry. million lever And super sort margins a things that any even month-over-month on in little just you And layers at have share

Jerrell Shelton

units. of the don't answer question. any I'll comment our Yes. details actually and then We part, can Robert first the on answer business on latter

an that revenue. in incredible our So superlative at cost of the on job do And management. and can I to management those. with does the really manufacturing team more has to comment MVE margin to operations managing line you be with I don't want tell

disproportionate need business. at And we don't It's is of systems strong to have annually, a doing these so in our I lever cash and to, be continues in healthy that XX%, a that on market. we a it if pricing -- generate it pricing. any It's lever, frequently at And terms -- is of at manufacturer, even leaning in we It dominant on some looking we player controlling way.MVE but price the under business. a always cryogenic flow. we We more think XX% are look leaning well we'll conditions. our look the

I'm in And very concerned. MVE. business the short-term. confident so, it in for in not not for We're we're We're the this long-term.

Now Robert can comment goodwill regarding on your impairment. question

Robert Stefanovich

approach. Yes, is absolutely. accounting your Obviously, this standard

goodwill more we've in of drop and reduction to or intangible kind QX quantitative continued we goodwill. modeling charge to on look completed QX of do to in is out. it that, This that financial for assessment, and considered you which and of And were charge to or impairment a revenue No really at in MVE when impairment QX because that Solutions, So assets onetime less Biological seen the leveled 'XX, impaired. and the our led QX with based the the the non-cash flat that XXXX. goodwill other acquisition adjust related in was had that we reducing

the So that's isolation. really

Tejas Savant

it. super one you, Therapy one I Jerry. Miami. you were final then at know Week And Got That's Conference in helpful. for Advanced

for do where about most do you on customer color or you perhaps or ] any to excitement? [ sense perhaps you couple you guys? et the next it's and some HVX upcoming there? the Fusion over them the recently X.X, years and unmet whether launched traction the And the your of products products, as just see need Just feedback traction shipper Where cetera. most And talk of

Jerrell Shelton

could to it's and line up now building And developed open in. series, will to a are will really for the -- complicated because Institute, open but in plumbing we out we product to of just on manufacturers.The initiatives that XX-some-odd could flexibly for The line fusions especially sense needs the -- on it's example, total meet reduce will cite XXX develop HVX It as right shipper think question, as the cite good up they the second have issues, never customer a and we Fusion floors. smaller been future. it Broad -- series, I a is because answer it's of fantastic the shipping they The the the for get they as floors. Tejas, to market come our be company very markets it that one addition inside going up. third can the higher we've going we reprioritizing constantly cost use

And that's -- so and very Vario conserving ranges temperatures. to which be product.The the is from energy this up an energy-efficient exciting a which down temperature for can -- can dialed -- all be minus XX unit different cryogenic way up

fresh be the expand minus it'll -- setting be we're the opened that with -- consistent IntegriCell to we're more and be robust going capacity, it'll doing. the gene -- from being -- need they to processed up will this or furnishing apheresis, cryo to UltraCold. it therapies, be we when when as quality of which the materials And have standardized optimized allow coming and is where they will it'll have be We Elite standard they a on to another when improve cryopreserved producing insert manufacturing this XX opposed standard Cryoport material.Will consistent. be as business, will more manufacturers it'll cryopreserved, be more therapy -- to material, that And thing want

comments, United we mentioned are our We're United the it chain the exciting just terribly We us the in that. #X to help over a levels out operation.So out, the It's acquired it and Asia continue prosper EMEA, on my just of be and been as going and it of both from to that the of and footprint just And We're operations serve rolling priority. it'll few of in It of opening the Pac an in host it's are rolling in communications not we tie levels complete will industry priority, a build in that we're start and accelerate as gets up underway in -- -- on already gene for to it -- Bluebird have grow that bought course, in States. those we most the supplement while. things things. industry, not now into and industry. to to meeting one a enabling just on, that which that's It's of all is will to incredible a of and priority together that system have our also and and process.So time build has I meeting give So where but States. the CRYOPDP companies be are and to world cell therapy. out and TecXmed, only anticipating compliance temperature monitoring that out goes and we

Operator

Partners. comes Souda question next Your Leerink from Puneet of

Puneet Souda

hear me Hopefully, you can okay.

Jerrell Shelton

better Puneet. much It's

Puneet Souda

All right.

guide help So is the improvement, a bit that was in improving. in just pointed I the improvement in end MVE year, me on as sequential seeing if it but itself, the some China out mean guide. lower still you came on in not the are can for little you of flat you

potentially So there sort is X% taking -- my main of are baked you're lack word, X% What levers higher? sort is I year better embedded that or in, What in is conservatism this of push you implying question of growth think a in is the And that 'XX. sort that actually enough into growth guide? about there that? that guess, all of

Jerrell Shelton

Puneet. the Well, certainly, this happen existing more they therapies -- could ground are that therapies earlier. which quicker, a could upsides that conservative little of to built both we we up. ramp bit we I could that from at have be and alluded -- some could our think year. approved looked There forecast of units, a all We we our did take approach, business our And there

that? around disappointing comment our wanted you much forecast.So not have of we year to on in we we this to adopted conservative. but definitely upside, plan Robert, be products could like is of that. any business introductions further be interested than Some quicker And anyone. would We're our

Robert Stefanovich

the I'd 'XX revenue you you and some no. can of we've for particular, the continuum achieved online contribute said, in commercial if see revenue.Again, you new few BioStorage/BioServices key what particular, and in of at can look And what look just this in faster, the at again in echo really revenue that growing, the more Jerry the areas No, 'XX, outlook we Jerry more certainly conservative of revenue there's year. those to initiatives like are took that if look. a ramp the mentioned, some and are leads, coming a they services

you in you'll life talk we companies If stand. to and as science tool are space, us we they're say the where hear well, other kind being cautiously of and optimistic, that's but

Puneet Souda

MVE That's maybe as following on I than XX% rate not And and from Okay. up to CRYOPDP is at single-digit revenue. when correct -- me was acquired single-digit the and elaborate the we mid on believe, of if maybe of mean helpful. you sort normalized growth about more I then bit start of should your you to similar far just low CRYOPDP time at that. wrong, what CRYOPDP well. acquisition, it a still, the just it I'm was thinking MVE Could combined

maybe help understand we what's of sort ought normalized should thinking for to rate we X growth us -- the So just these businesses? be

Jerrell Shelton

starts totally with different missions. of pair different businesses, different together. -- businesses market totally and these MVE out, I totally sort don't to pull and totally they're Once of They're parts the

than think this. once -- was -- my that be being is stored. was all what known bit you'll double-digits and capacity is avoid but up, mentioned the low.So on bit has a of On in it rates expenditures. time. budgets little And been and to this we've -- this a up this been because I assume at able maybe has the to the that and one the able But with there And a hypothesis. created quantities COVID them This what also take hypothesis that overall a capital now. to a was for the better that capital even a global think way of I'll of an the the all single-digits pulls maybe over capacity buildup there's in you have material of no and it's low, We a I think I in a on the filled The little of be there out the or it that I've once will normal mode and once out you so do affected. of great Well, It's MVE, low past the created year in growth period see be low not economy there some cautious -- the pullback hypothesis it. have is not biological time you'll being during of produced material. activities way being is time. there produced part. It cryogenics rates.Look, being it's that's store filled to are is time that all that factual, And

had over the process products, United over goes. the Bluebird biotech in very States. diversification courier rolling quality been people. to positioned the well Cryoport and third that be while, CRYOPDP We've -- streams experience the market We've in out at accelerate serving biopharma, far and revenue or time.As there serves XX it its largest did services It's process. of it's confident coming now we know will world's is out they're think specialty new the time as the way CRYOPDP So it and long-term and as new in its of MVE market, And we're prospects. come some back. And its but MVE, the buy will products with Systems. Express it outstanding. we that Express in years operation for We Bluebird in order is that a of

continue build a addition.And States. it's great in we we the to out so And know United

we in momentum Bluebird States. -- find will build out on growth structure. find that And in States we as that some We will the the United United as impact has the

were. a bit doing the finds I they the are what United little excess low of States. Other the So fine. They once think in single-digits still will there growth in the be that will be world rates of in parts it footing its

Mark W. Sawicki

not Jerry, low double-digits low In single-digits.

Puneet Souda

clarify... to just Sorry,

Thomas Heinzen

what [Indiscernible] he single-digits, and meant, that's Mark.

Puneet Souda

the U.S. for part of Sorry, double-digits business international? that's for low and single-digits just clarify, the

Jerrell Shelton

Exactly. Yes.

Puneet Souda

Okay.

I Just last if question, may.

Just you? have network IVF you can -- And decision, impact that the what's that? for about in for you the what outline does your changes bring Alabama to

Jerrell Shelton

there, not Alabama on out do We suspended Alabama. passed, out reading, more we until us. business That suspend suspended Supreme We rule and until we we we got we clear there as -- as did, it situation. impact than and got was big shipments then ship for the And the as publicity of MVE CRYOPDP.So a and when Systems Cryoport up a of Court a we Alabama opened we did again. and understand was Cryo could well anything law Alabama. in did both new else business

we're are we this certainly business of change Alabama was So it at of case in it in usual in business a that Alabama. just publicity. State. buying there's are that doing a but in situation But monitoring did as Things lot -- point, create

Operator

question Your Sourbeer John from next of UBS. comes

John Sourbeer

on commercial just I a revenues. to the more bit wanted dig in little

next high in think recent you ramps the I approvals out outlook they this for do given think Any additional quarter? this slowed approvals and And also, can XXXX? some about quarter-over-quarter. year, details over the level there provide then the you the on how of

Jerrell Shelton

because some John, factual for market, start Well, you is -- in market what's the comment Mark pretty with I'd like happening then Robert happening exciting. information. in let's to on let giving And what's the

Robert Stefanovich

the XX even ramp, quarterly you of look revenue, you growth XX% revenue, XX% when I it's revenue beyond. months for 'XX in at the last the Yes. QX look the the you mentioned on at at most the year-over-year. because to average. the call, look if revenue quarterly is And But latter But year trailing important, a at drivers full or are in think look where commercial our and the those probably the we and sort commercial

So revenue. we of $XX commercial total to revenue. strong in growth continue now see It's million

starting it's a substantial So our revenue. more become to of services portion

seeing? We to talk the that of that about expect Mark, we're market do to some -- you continue. want dynamics the

Mark W. Sawicki

phases Yes, month start this to therapy Robert. new absolutely. because there's I at on so an important mean, Robert they looking launches, any volatility Yes, some have Thanks, has you basis time is in the XX ramp. as aggregate said, early extremely

an We're from strongest seeing approval here. history the bio autologous. the already at new think may in has been to end strong and the filings approval QX. of filings looking already X X very, months really we're gene in what one approvals are the 'XX, QX, approval very is filed. X aggregation cell in 'XX is the There space standpoint. QX, new activity.And of possible We've law between be and which in of which XX XXXX, BLA fact, Adaptimmune of had and the I in XX in However, completed another

addressable another new projecting commercialized products XXXX. in X getting see label are another will increase filings a possible expansions.And which of population already of substantially already approval, we potential XXXX, therapies We the and potentially line there's patient potential ton plus the activity, earlier in XX the X so X and for

for presented I at Robert that And driver. growth market huge of you where been it had numbers, think going the and the that's So look is consistent has the with foreseeable if rate numbers there with to the overall, some the be future. our

John Sourbeer

portion a sheet. on is I convertible next cash has the The balance strong of due company year. position a believe debt And the

Robert just forward? the going plans financing on color, maybe for company's Just any

Robert Stefanovich

Yes, absolutely.

So obviously of convertible The strong the December debt, convertible that portion of of substantial is strong the December a cash we're balance with really in end. have the strong debt as XXXX. we due a position sheet

we still So time. have some

in did there paid about it's convert, some in recall, about you was million, back of we for the $XX buy QX, cash we about $XX million, $XX that. As million

to still we'll transaction. we're in And convert gain the looking I $X.X of point at due 'XX. convert we about said, longer And we're at strategy that So had term million it's X.XX% the some December time, buyback. because the look We're of interest. at position, just continue to you this recall, good in in as at like a out, but mapping of

So still that. for some to we evaluate the have best options time

John Sourbeer

last then and the [Indiscernible] wanted had outlook clarification. question. for Is on IntegriCell currently that then just segment year? And was that freezers and the I question I just live for

Jerrell Shelton

half last the No, year. it live the of become in will

Operator

question Brandon comes from Couillard next Jefferies. Your of

Matthew Stanton

This for Appreciate Robert. on guess, the Jerry for all is maybe on color I Matt 'XX. Brandon. or already

little talk visibility 'XX. and bit guidance about your Just philosophy a in

us I PDP, Systems, then we MVE, CRYOGENE, much have just how had you level in but today? where the of the think of MVE historically sit visibility remind the can Systems, through across just and distributors most goes visibility also you Cryoport from today, you've business

Robert Stefanovich

a take MVE, the Cryoport at estimates at a do have said, have already clients, especially we as our did absolutely. product year.Clearly, for what We from a take of the mentioned, to view conservative no, we our revenue do for for year. did terms for and bottoms-up, very their for Jerry growth. Yes, guidance Like services creating we the conservative the look to are. forecasts Systems, in to We our try revenue determine expectations

much that Over the it's level quarters, to been X pretty drop QX. last same from the QX after

we're revenue on taking and Clearly, well terms the BioStorage/BioServices as are driven a it. of able we really there's therapy approached ramp on very approach revenue on estimates. product by we'll mentioned, So be in market opportunity in gene side to on the the that's But side. the hoping, particular, both side. we cell conservative how And commercial as upside exceed we the services some the side obviously, like the that

Jerrell Shelton

And, your and question XX%, businesses ] distributors, last through how [ Matthew of Brandon, of XX%. the your about much part MVE (sic) that's was

Matthew Stanton

should those a the in there about terms XXX guys share of we scope trials, deck to out Cryoport think clinical market clinical or so that higher is those. XX% or or kind there then of And time the Is for industry go supporting you for of theoretical limit in trials? over spiked XXX of is industry

Jerrell Shelton

to turn to that you. going I'm Mark,

Mark W. Sawicki

in us for middle and year. launched substantial Yes, historically I XX obviously that of is negative the with distribution XX going via the months biggest product Sure. capture Elite managed pickup The already share. space. penetration that UltraCold line be was therapy share our we're negative XX the was the minimal. negative next XX product We're seeing always gene over in offering, XX driver last to a without to We around capture this for mean, to more trying space

some moving is in from higher opportunity upside nice there's XX% a obviously, more for challenge. market share so And of that space.On the a much cryo side,

commercial, that about growth is dynamics a XX-plus-percent as the that So most come obviously to very to will we've our drive of doing. into into record had of of in out as thing maintaining which market portfolio think that drive very, The we can. much the track good capture of bigger market continued share

Matthew Stanton

one on quick thoughts And love your last updated you're thinking laid a one profitability? that for about of Jerry. you're growth how you've balancing to areas those we Clearly Would lot do out just how think as beyond, of EBITDA growth and but out investments adjusted looking into to basis? about you 'XX in on and look some profitable investing turn get an

Jerrell Shelton

way the I the they we projects undertake, accretive. -- Well, they have initiatives are withstand and on, scrutiny going think is that all that are the Brandon, financial about we them, all

And roll they the so, those out. initiatives constantly earlier, just out UltraCold just Elite we said re-prioritizing as I start are as rolled and will to

the HVX You'll see out rolling soon.

IntegriCell see of half year, see more this at so forth. You'll on Fusion the and you'll and the progress last product

impact. So positively a about impact. going have going I think They're they're profitability revenue to very have to them,

Operator

David BTIG. question Larsen next of from comes Your

David Larsen

generating in some say your think you you I revenue prepared heard that I allogeneic remarks from services. were

that thought using and the also are progress just allogeneics be any would Did storing that said And a I thoughts heard you correctly? in there hear they allogeneics, client I that some product market in making anticipation were I say on think you the I IntegriCell. was helpful. of very

Mark W. Sawicki

of like today. as They large of already They'll allogeneic you stands products. number product activities it's a from, there second half of Jerry as distribution not the not, -- those had go And constitute of fairly said, portfolio overall we're are so the XX% our portfolio, open this therapies. so supporting open mentioned, year. through IntegriCell, that substantial Yes, a doors facilities. on those it is nearly storage

going donor Program, behalf all engaged our our NMDP the with already that be to NMDP. Houston relationship United all very Marrow facility doing where in which allogeneic remarks with be We all the recruitment, clients cryopreservation we States And of focused clients. them Jerry However, National the teaming we're for we'll Donor they're the have through managing heavily before have or facilities and prepared auditing around open.And the in in also mentioned going even the are contribution. already doors the with the on up and we're that's

David Larsen

Great. And revenue are commercially be to terms should then expect therapies And there revenue what available to of how Any per reasonable? thoughts ramp that going for forward? would expect Okay. contribution? commercial new year these XX% Is XX% now you we in would growth great.

Mark W. Sawicki

guys that the years. range place year-over-year, in comment. and to next I Yes, the ramp through associated commercial to way at couple you is as companies, commercial from for perspective, forecasts ongoing filing the my They not the XX% we therapies diligence disclose and provide something the you is can that the guidance in those look through to activity publicly.However, any reports I on reasonable so it can their come back right? we those Yes, easiest go therapy and for think for but it's that all XX for given for have get guys expectation portfolio a QX, with it of I that's analyst clients the all relates 'XX seeing relates ramp. to of from lot through rates a and plus projected 'XX, We of and our do the see that space as in guess late today we been probably historically and saw of that with revenue do

David Larsen

MVE, would one And more helpful. large for within very last then one, just demand quick just there any be color freezers just

Jerrell Shelton

Yes.

Our no patterns David. MVE is demand at the different It's with normalized. historical than mix,

Operator

question from Your Securities. Riley of comes B. next Yuan Zhi

Yuan Zhi

the there in so clinical have pivoting disease. I'm to from far? or are autoimmune companies biotech cancer disease treatment cell meaningfully trials probably helped XX autoimmune business these Cryoport curious System if therapy Jerry, applications

Jerrell Shelton

do expanding of trials are out the the at oncology. area lot Phase some promise. a Phase -- They're mostly, looking A II, of in early of beyond I, the where promise Ts lot market's seeing We're results lot an see clinical there. come of CAR how Obviously, with a we but there. trials, is promise it's

So it, trial there's upside absolutely is of there, and clinical our part it at looking pipeline.

Yuan Zhi

Got it.

since format as the patent you Bluebird Express well the as your of question Can recent acquisitions? share any Another is to update integration related acquisitions. from

Jerrell Shelton

Well, because Bluebird in for the like time. known fit hand we've long Bluebird glove a a

in So and the of along it's very the say operations about integration it's process well. are more that, nothing in process. There's to that very, that moving

Unknown Executive

And then TecXmed.

Jerrell Shelton

your was well. You about? Yes. question mentioned TecXmed as What

Yuan Zhi

Yes.

Jerrell Shelton

Okay.

intersecting over those on think a are advanced. it is moving, systems we're monitoring company that in. communication it's in X And SkyTrax that And condition integrating quite quite company I monitoring tool and independently independent software moving together on serve that in think well, is has interesting. I an that mentioned system So some TecXmed the too got our be process. project. and being, German advantages orders our will coming TecXmed is likely will most the impact mean And It time. acquired. It's TecXmed we SmartPak, I at temperature that think then I offers thirdly, it so comments also TecXmed has, as stands because I as my earlier throughout there's there.And as looking

excited some about do TecXmed. take to things, but time really it'll we're these So all

Mark W. Sawicki

positive resoundingly as Yes, has feedback industry the on TecXmed been well.

Operator

KeyBanc. Knight comes Your from Paul next question of

Paul Knight

of vendor? themselves mentioned [Indiscernible] commercial it what... or I XX%? themselves Jerry, XX% Is mean the or do you guess biggest market had that the the share. or I another piece it What's alternative? they if what's

Jerrell Shelton

a global Paul. basis, that's No,

in you one lower-end manufacturer China. large So have

then You have are manufacturer Germany. of like one large And you of operations then small have number job a a shops. in you that lower-end number And of, then smaller India. in a kind have have you operation

Thomas Heinzen

talking think percentage, not he about clinical trial I MVEs. was

Jerrell Shelton

were you MVE. about talking thought I

Paul Knight

Yes.

Jerrell Shelton

to we to competition or couriers Okay. our But some On We're work of chain of especially all turn same our It's that the stand that's commercial go customers, market clinical what trials. us. clinical somebody been stand with leading product that compete using and It's There partners our There that position, product, do, else's our are on MVEs are the not compliance us. is our going every either Thanks, We of out on for I'm else day, there. merits. he's quality of monopoly we everything because years. to alternatives. our separates trials, to Tom a the we on with Jerry. around that's competition. expert

Mark W. Sawicki

don't lot have do equipment is in because for Yes. us we programs have that that And that visibility than reality that subcontract XX% they're through of a on. supporting that higher we the specialties

to be exact XX%. don't number that effective higher know just the number. So going than We is

Paul Knight

down Okay. Animal saying down that? you're year-over-year. on MVE but year-over-year, you its stabilizing what, on then at then is And Health was Could that's -- And comment juncture?

Mark W. Sawicki

are Animal and correlated. MVE Yes, Health directly

look or the revenue at the size drop by the revenue the drop in you MVE of the So product really markets, is driven reduction in in revenue.

QX So and been what throughout MVE by both impacted of biopharma Animal we've Health the in seen and have the remainder year.

Operator

hand Thank to you. Shelton, Jerry no this further the are time. the would I There call over questions ahead. CEO. at Please go

Jerrell Shelton

our In for your our our you and questions XXXX discussions. and were range closing, guidance results Thank our within expectations.

was Commercial than become BioStorage/BioServices early of continued and revenue move revenue revenue product as therapies continued lower and a that think of our in commercialization. stabilize Gene progressive historical While the growth levels, more latter year business toward into has and Services of MVE part led began to year XXXX. to will the larger by advancement part XXXX a be Cell in Therapy.We

a We to new clients products signed we in drive relationships establish to number to In addition results operating of and strategic important new growth. XXXX, our and continue and to investments bought our long-term services make market.

company. growth the importance interest for next you of that to continue We have updating us as gene in cell grow well think life and industry of globally our All industry, to continuing our of to is our evening. business.Thank industry Barring to good We the a continued our you intend a and chain to the greater you to and again improving founded.As in XXXX an benefit and quarter. support actions appreciate vital geopolitical proportion to up supply we on even leads leader an way we progressively ability in hope support gene established industry forward providing from the therapy We it and open these sciences therapy expand any cell joining breakdown, today. serve market the streams. revenue in your of new outlook our progress becomes look

Operator

now call. gentlemen, disconnect. conference for today's participation may you your Thank and you this concludes and Ladies

Cryoport (CYRX) 12 Mar 242023 Q4 Earnings call transcript