BLFS - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing-by and welcome to the Q4 and Full-Year 2019 BioLife Solutions, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode, after the speaker presentation there will be a question-and-answer session to ask a question. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Financial Chief Greef, de Officer. Roderick Thank you. ahead. go Please

Roderick de Greef

ended fourth thank Thank for X us joining review minutes operating for ago, months and A a and of conference summarizes you, Good afternoon, the our the XXXX. results financial release Jimmy. we you and and for few the XX, December to full-year XXXX. for call everyone, quarter press the which issued Solutions BioLife results financial XX

certain company. during projections future risks reminder, As are cause this to materially may statements future will make actual subject that other call, regarding differ and a from events financial we forward-looking performance These to the or expectations. uncertainties results of and the statements

that I and qualifies forward-looking filings projections affect the For statements you that discussion subject refer filed assumes these on Company no based a and detailed company by company’s or and forward-looking with update the that only obligation uncertainties of The as forward-looking therefore, speak other statements, and our to statements as are any and the are periodic they to given. SEC. public the law. required except of projections factors business date are statements to change, risks

issued be During should GAAP. afternoon. and adjusted metrics GAAP we an or to the These we financial in financial speak non-GAAP non-GAAP as adjusted not metrics adjusted this this call, guidance. alternative to release non-GAAP press or will or results Reconciliations of viewed are to included

view current results prior that metrics investors non-GAAP adjusted to of light provides our periods. the we our financial clearer use a in M&A of compared believe However, activity, when with or of

Mike over turn to of and call Now CEO I’d to Rice, President like the BioLife.

Mike Rice

a supplier therapy several call. from in afternoon, class multi-solution media We the you the good growth embedded clinical gene through fronts. products our for and XXXX and our transformed generated tools acquisitions XX to single-product applications, on BioLife everyone. our gained additional Thank Rod, a a record a market. defining nearly saw remarkable bioproduction you, revenue, XXX to year was joining company high provider and for new customers cell of Thank

early gene that are base need solutions bioproduction developers highly of in that and of also cold cell fragmented thawing. is in to were and therapy much chain We desperate tool storage, realize biopreservation, management, and the better suppliers

we performed in and COVID-XX what dive managing how current and business expect information I’d we’re the how Before we some for the details into to like through our of beyond, share XXXX about situation. XXXX

the Bothell, facility Our just and corporate a Washington, production in few outbreak located warehouse the miles the headquarters biopreservation Corona and are media in from epicenter U.S. of

travel several our number the last weeks visitor been and to team in of our health China, and some potential inventory business we’ve levels attendance, assessing critical a including including suppliers Over risks policies. member and

except those for team all management. work the for end health we risk abundance Seattle exposure and out in a visitors home authorities the the commenced in our of members and area and County the care, of an members QC this reduce week are following caution through team senior March To recommendations directive production, from customer of of

at As to demand. media to forecasted come previously with team months members any contagious that of We believe have we to exhibit have illness, been directed work. inventory symptoms any meet nine not six sufficient to least

all the maintain priority then we products. members is our and for our all to satisfy top health Our locations customer at of doing team demand can to

dynamic. The COVID-XX event is

is therapy business. companies. medicine impact and We’re space, to to on with to reduce engineering of a companies very and of I’d our any cell regenerative in closely potential working comprised watching recap gene and proposition proactively our which like start-off this value tissue the

treatment novel XXXX, about conducting estimates, for nearly or of Medicine the X,XXX Alliance there are companies these was X,XXX invested $XX In Regenerative clinical modalities. space. billion in ARM The trials

So me early the you’ve the times. we’re to remember about few approvals that an have it’s important important talk a of been dynamic progression several market, just heard but in and far, there there is

very in gene tools traditional best fragile has paradigm and for pay into patient a driving biopreservation, or material chain sensitive state customers and response. cryopreservation consider for is to reimbursement and predicated cell The and of a to a coupled practices sustained pay an payment reassess with biologic manufactured source on with and cold evolved therapies companies This management. and reality response environment our initial on care

if gene at storage to temperature There or environmental to are it Any of fail and which given thawing. therapy These may response to factors suboptimal the and desire in patient. can are environment non-payment. dose today’s to non-viable in least administer a three preservation result reimbursement uncontrolled render transport or patient a unfit cell result media, during a can elicit again a that in these therapeutic conditions excursions

all expand franchise. With of I’ll detrimental three background products conditions. our we our address to biopreservation on Fortunately, these this in have media portfolio

Our our Officer, scientists years Scientific flagship group Dr product freeze media including Chief a of a J. was Aby CryoStor, several small by invented sell ago Mathew.

media were Aby to traditional on the home-brew commercial other the and even first and to groups preservation observe induced cocktails their today based they cellular continues and optimized and publish engineered and his among findings that on outperform formulations. preservation stress colleagues

clinical viability system drive storage to increased companion recovery efficacy XXX to cells CryoStor and Along and customer processes use. around clinical be enabled of quality production by and intended for us media HypoThermosol This our our evidenced in improved applications. with embedded has preservation management functional

bluebird therapy Yescarta used Car is cell and for their CryoStor by Kite Zynteglo. approved by bio for Pharma T

Cell, clinical Juno, Sangamo, and community. Gamida Allogene, other Celgene, Rubius Fate, Adaptimmune, customers of notable Iovance, include Janssen, Editas, Orchard, NantKwest, Cellectis, Some our

customers of directly through Lonza, including therapy Furthering and space cell Stemcell KBI, are the We and CMOs leading Fisher, and several MilliporeSigma, distributors into VWR. some support other Hitachi, reach our also including the and our WuXi. Thermo MaSTherCell Technologies gene

cross clinical letters Masterfile U.S. additional In for FDA the or in CryoStor XX of reference XXXX, we trials. use processed HypoThermosol an

for approvals and seven tracking in regulatory Zolgensma Europe. Celgene/Juno the U.S. Gilead KTE-XXX in in These Novartis/AveXis customer closely in that for Zynteglo Europe, bluebird Japan the are are Orchard OTL-XXX use the CryoStor. XXXX and and for U.S. Kite potential for Europe liso-cel bio in U.S., for We

Lastly, in Iovance have five Orchard bio, filings and regulatory XXXX. bluebird potential disclosed additional

fuel both sticky revenue, strongly clear the and cell allogeneic fairly we’re growth. it’s entrenched soft will base great workflow of built customers the So continue two in autologous last media a despite and and quarters therapy of that to our streams we’ve

worth customers, use as XXX so our late product. most customers or is revenue our generated On small stage everyone media much a don’t that point, it’s of stage other of reminding that group media from early

saw go that factor until to support previously expect to for and we demand lumpiness increases in XXXX customers over the the some continue the a is commercial mentioned operations. their get line So of I we time some

continued non-optimized We’ve other commercial add Home-brew to media media and and products. customers taking share preservation are from

QX down of million was Here’s QX. total was for year-over-year. X% in increase the an QX revenue over media an $X.X revenue of revenue XX% overview quarter million $X.X XXXX. same

Two they direct media verses demand forecast. consumed their down $X million media so a customers were inventory. existing QX customer lower, production One was whose was

shipped up than media distributor but about XX% for large a forecast, they different their more was XXX,XXX end was year products last QX their year other customer this versus the down to against XXXX X,XXX and was that The users.

products will internal is point evo This and our to revenue impact QX Here in good revenue met again, his our a M&A remarks. full-year Rod revenue projections. all thaw, clear. is segue from into freezer exceeded the concentrated or our XXXX speak to strategy. of

it’s adoption, early S-curve cell where the future growth therapy and gene of of part the in is clear. We’re

portfolio that help administer To risk supplier. a class of Last a risk our support the a on year customers defining become economic portfolio loss. dose mitigating therapeutic our a products trusted We and revenue failure needs provide to plan non-viable media tools. can don’t ensure a trusted bioproduction this growth, this that and and of can assembled we they to embarked diversify industry supplier

very number supplying glad product to portfolio. SAVSU that least Biogenic much I’m cell Custom a at larger with gene now our therapy Bio, of in Astero through and Technologies our acquisitions of we share one Systems are companies and

acquired products April year. complimentary line with Bio ThawSTAR first Astero from we The last in

Astero over use acquisition, Since frozen proprietary growing of gene products a a dozens to for water-free had and cryogenic products. evo and thaw shipped vial our companies, the product media, which also developed ThawSTAR vials. of cell automated XXX list we’ve therapies, and freezer

team This launched now conference finished late had started At Astero and water-free the also larger the acquisition, a as Phacilitate at cell January CB at frozen in cell of therapy an and this ThawSTAR automated the thawing year. and gene was dose, time is product branded and of gene development product for the therapies, cryobags.

both dose using bath, of reduce orders a the the simple delivered CB. team use including risk dose that to and innovative, can over for contamination administering recently thawing, a our risks a has to ThawSTAR thawing the lead Our poses water for booked or traditional inherent scrapping product that which can patient. And first truly

been Also a family is includes sensitive high harmful purchased This for evo of spectrum and up, covering monitor we class containers cold remainder in value our and own. the cell and alerts the that SAVSU developed and gene subjected and Technologies XXXX, environmental users The receive defining of solution management condition set shipment didn’t by payload application end platform we shipments already courier entire few the that status partners to. chain shipping temperature SAVSU has a of last solution and innovative the a years cloud-connected stresses the cloud therapies. payload manage enables to potentially over about temperature the

med the and career with start mitigating to they’ve completed This with completely regen relationships, about platform in for of risk the containers is customers. supply shipments Since XXXX over supports mission market. line our different XXX evo bioproduction to partner tools our

that ALL. dry evo AveXis, for ice and using T cell vapor include And gene Mustang their myeloma. therapy evo our have shipper their Bio Celyad, who customers therapy shipper Janssen CAR an cell CAR therapy. every using uses notable T multiple for customers for of the shipper Autolus Some Zolgensma JNJ-XXXX Adaptimmune, CRISPR, dry platform using for dose their evo Other Zoetis. evo vapor AUTOX used an dry for include smart

to share key cell this adoption forward that these CAR subjected commercially progress objectives validation I’m made is the of other shipper to coming was dry a developers. use. report available take One We we’ve on that that than real can the to the look We platform much an the months. toward from evo In incumbent in meet it’s criteria goal. dry set our rigorous glad in update requirements. vapor T major providing more vapor shipper the stringent retrospect, no this in of current serving evo clear believe to

worldwide reminding partnered with we’ve To contrary, logistics sales, about world is marketing a not evo cell to in the serve my end and company. logistics that and that operational the gene you of BioLife the the by footprint and therapy I’ll remarks have platform decades best experience the logistics companies space.

to Our to role stellar for to provide support then their platform users positive a couriers supply them experience. and evo the end the ensure is and to technical

One last note evo the on platform.

are liquid shippers dry from Our currently nitrogen China. vapor sourced

facility We production underway had supplier. Custom years, Biogenic have project dewars as our that this to manufacturing tort strategic a Systems LNX for for secondary a driver and was to qualify been acquisition. another CBS

in We is Rod now CBS CBS and track last we remarks. and our revenue this during his of Turning completed details will business for plans we’re also guidance performing to deal the completely mission. on far and our expected. supports CBS. year with The so our provide acquisition integration of well as November

include across leverage Scientific, a objective we Precision seeing our Kite, customers and reaching Fate, to Mayo, That’s NantKwest, activity the our AbbVie, Lonza, contributing We’re businesses the of see wrap M&A revenue. Bio, Glaxo, portfolio. Juno, FUJIFILM, Sorrento. Astellas, and $XXX Key CBS how in acquired Hitachi, million Sigma already Fisher of

today leverage achieve to guidance on The few years. our our focused issued This able in we be clearly year, confidence the resources. to this goal to we’re speaks next to integrating

are targets some we’ll in M&A you XXXX additional update pursuing We as appropriate. and

present guidance pass Now Rod? back Rod call full year for our to I’ll and financials for the to additional the XXXX. XXXX QX and

Roderick de Greef

year’s million. XX% a our reached $X.X Total revenue for quarterly over XXXX with last quarter fourth Starting of revenue of fourth $X.X Mike. million, Thanks the increase representing results. quarter

million $X.X revenue $XXX,XXX and sales, $X.X included last from and in million freezers November. quarters of acquired the in related automated thaw CBS This products, we of sales related media accessories $XXX,XXX to evo revenue

XX% Media million, over $XX.X XXXX. full full year up was of Total up million of over XXXX revenue $XX.X year the XXXX in the revenue for $XX.X XX% revenue XXXX. for was million, of

full headwinds sale the $X.X coming two year with During million than top of in our media direct face in less XX XXXX. some customers

for forma comment million. final have would the revenue been revenue XXXX, all XXXX. of unaudited One these and full Excluding basis, On year approximately grew pro customers, an streams all two XX% XXXX total we owned on that over revenue. the assuming media for revenue is $XX.X

growth. SAVSU XX% The acquisitions adjusted The count with million decrease the expenses the of lower million million reflects year. gross increase increased and XXXX. quarter of margin result both compared XXXX periods for XX% and to of evo quarter XXXX. $X.X full compensation in and expenses of expenses which our flat and the The necessary XX%, of profile XXXX totaled $X.X margin XXXX million Adjusted in totaled with QX gross freezer overall the compared was operating for XXXX. Adjusted the XXXX for fourth gross last head compared Adjusted adjusted of expected. for for stock-based fourth in the in product full expense of Astero, the with compared was year $XX.X CBS, margin to is for QX operating $X.X lines as year with secondarily operating was primarily of the support essentially margin

compared of in to attributable Adjusted fourth XXXX operating attributable of the $X.XX operating the diluted loss was same loss $X.X essentially in diluted or of zero million profit fourth per year for to XXXX quarter net million with $XX,XXX to common share per $X.X the compared Adjusted shareholders shareholders cents in common income share the the net XXXX. was adjusted quarter for or of XXXX. compared with $X period in of was $X.X operating million for million adjusted quarter Adjusted $XXX,XXX fourth income XXXX full XXXX. of

fourth shareholders XXXX. note share that For adjusted a relieving Adjusted million in of per and common the year $X.X diluted net net quarter million was $X.X million related the XXXX based one-time EBITDA quarter fourth EPS or I same $X.X allowance. of GAAP benefit in XXXX, on attributable period million acquisition to in the tax million compared or $X.XX tax income with of the $X.XX for provision included diluted our full $X.X totaled income XXXX. compared $X.X for should share per with

fund least year, to $X.X sufficient XXXX We full months. ended adjusted million we next million in is the XX cash, to For our believe $X.X EBITDA compared in with operations which at million the $X.X XXXX. was for

and With on to $XX year-over-year respect XXXX an now basis outlook pro updated $XX current forma the XX% total guidance we revenue for our last for of XX% expect be preliminary have will and as XXXX, reflecting to growth provided XX% between reported million to we November a to million approximately XX% on basis.

the to our final We have in we company. large have product line guidance validation $X of the delays by reflect for therapy for the seen cell by technology lowered million revenue $X a to commercial evo million the XXXX

revenue. evo We guidance total is of account X% accounting XX% increases revenue revenue revenue, with estimate contributing of between that and first XX% half revenue and with freezer year. year media to we XX% line half XXXX the another the an approximately in will of XX% XX% of each throughout CBS the in approximately sequential total estimated product for and comment lines and grow revenue XXXX that thaw see the The XX% second regarding remaining last coming expect to the for

Our the adjusted evo lower XX%, for should margin CBS gross the and given of between profile margin XX% fall lines. product XXXX to

higher as introduced are margin leverage CBS sequential increases the the at benefits and of in products expect gross throughout year we margin However, are realized.

in $XXX,XXX of and acquisition step-up year. inventory this to expect QX of increase We approximately charges related COGS QX

quarterly throughout million to asset flat range operating intangible believe of expense. We basis operating inclusive on year. in expenses a expect that will the be million $XX We the remain amortization $X.X of relatively expenses XXXX to million, $XX of

to and the year a adjusted GAAP of we net the to on and positive XXXX a XX% year on lines full operating be Finally, expect basis EBITDA the with income non-GAAP margin of EBITDA for an XX%. exit and

of diluted XX.X currently a common share million fully shares count we Finally, have issued and and outstanding million. XX.X

Now call to I’d back turn the like over Mike. to

Mike Rice

XXXX wildcard transformed magnitude a the is we and In future pivotal solid a Thanks, unquantifiable for have COVID-XX of summary, foundation year again duration. and built and was effectually growth. Rod. a company

We’re XXXX running achieve this in factor. success to the despite business

questions. I’ll turn call operator over to your the Jimmy? back the Now to take

Operator

first comes Instructions] you. Paul Janney Thank Our Montgomery. Knight [Operator from question with

now is open. line Your

Paul Knight

should the you Is They in can release. by Hey press there talk the – down situation could are there in to Mike, be of? alternative relationship? And comments being competitive provided distributor distributor? your an talk we you a that aware is

Mike Rice

whatsoever. No, This end phenomenally good really year-over-year, questions. Paul, they grew Hi, customers. none pushed distributor X,XXX approximately Yes. different

that. particular forecast good, the us. versus question in against So it’s total pretty this nevertheless, just at and look killing normally they’re how going a But just they ability but it. perform They’re their the they’re internal surprised you really if to of year quarter, before, year in

with the We’re pleased really relationship.

Paul Knight

that in at I the mean, expect And customers large were they then direct what them And XXXX? now? down what’s stage of out of in million $X.X do you customers XXXX, are the zero those magnitude now?

Mike Rice

to we one, in year of part particularly to anticipated I what approvals speak But revenue did they’re that on up Yes. versus double I ramping XXXX name that demand. And Paul potential they meet in the later XXXX. going and them. can inventory the to that’s can’t some based and they’re expect

Roderick de Greef

will other zero internal Paul, for taking XXXX, – not in we’re last that at the a point. this although from miss from some one, them in given purposes their the we’re from definitely orders forecast assuming of we them. And a confident get customer, But

Mike Rice

they had something that they’re with contrary, onto their inventory or ordered through just tag To that the previously. to that, just And therapy business. of Yes. they’re out mean doesn’t going wrong that existing there’s burning

Paul Knight

you split at? Or can you think – you’re split grows growth you that of that? customer XX%. commercial base guiding do to it And Can you that? out the do split you approval, what and do without XX% think you’re it like What media

Roderick de Greef

it the of revenue. We customers XX two-thirds are the like forecast out. that for the bottoms of really of balance don’t the the frankly, accounts look trends of top at we then that, many which a about top split from We do quarters quite historical to up do XX six customers. And have four out Paul. we of But

end would So that, process – I stage. in reasonable of on have delivery delays are And that and the that we’ve the that range think reflects identified of clinical part the time the end higher lower late uptake. those reflect on and

Mike Rice

add with year those pending the approvals the and customers And use potential Paul, of few I would is then demands. terms all in behave see I see which that, think us to to seven media, a get Yes. quarters gained those approvals this that take their going

products would with your to customers, okay. of better others, with split and I be much to some that versus non-approved question So out regarding some we’ll is of from media basket plus those approved anticipate trial clinical whole position year coming answer next the in a detail how

Paul Knight

Okay. Thanks.

Mike Rice

Sure.

Operator

you. Thank

Our Oppenheimer next from comes Company. question Suraj and with Kalia

Your is now line open.

Suraj Kalia

me Good all afternoon, hear Can right? gentlemen. you

Mike Rice

Suraj. Hi

light. are little bit a You

we’re I but it, light. little bit think getting a

Suraj Kalia

hear Can me you now?

Mike Rice

That’s worse.

hear try can we you. Suraj, Let’s this

Suraj Kalia

I’ll go ahead. just Okay.

the slowdown there for side are is So Mike, obviously, going on as media quarters the on now, you said, dynamics. been few different a it

you in help question for delta? QX. vis-a-vis because Can be buffer thing. building of is, to this is progress, Just I you on could FYXXXX And coronavirus my Any of Paul’s the going some the coronavirus. our one inventory basically that before great. field? other there a to that the excess That on, let’s is within for guess, media slow absorbed, down FYXXXX would everything inventory follow-up say happened there the Are entire into second is be relative the part in context could comment. numbers frame that

Mike Rice

Thanks, Suraj. Yes, sure.

that they’re we’re buy companies. so grew much really But adding two mentioned the as listeners encouraging. XX%, a I the we’re of they that don’t the later early, the which as stage Rod the think And it at remind important base to adding. as customers that tidbit is a speaks customers files to the is, again, it’s master down, basket, rest of all the were ex and customer

small they lookback stage, were ball the perfectly a enrollment terms to concert how were much they novel own from would this. to that just that crystal other mind, to to to production kind into they lesson is Layer could. perspective of some the approval, such together had physicians number not best out even a after sort reimbursement need. forecast going which these thought and in or a pace other were at consume not late their With to of therapies. issues into potential going didn’t stuff, They that to from them their us or place, in All And a much. have have anyway say, may the which think customers prescribe they analysis need. clinical all gave factors through as going have They I of trial revenue did they swirl of challenges. they they caused my these came figure

build side it. Suraj’s second have are that sure Rod, there’s with to to of media? buffer plenty you inventory a to So can make or corona of doing we of demand part the of question. to we speak regard And What

Roderick de Greef

Yes.

those And mentioned the just the that referred half to just elaborate One, a their level second on we’re other to just think of two based through that year clinical activity. I customers. confidence the Mike orders zero. of have we assuming increasing I on

zero don’t any from downside, we piece. the if will, see So you

factor the Suraj, In XX% these X% coronavirus, anything come we impossible up just terms factor. and because numbers or have specific with into some not it’s of try factored to

would just completely with evolves which perspective. Anything information from gone based be And we’re our our to we lot includes to the watch arbitrary as it on best have we’ve So a else I customer have, going is of think all what dynamically. think estimate it we forecasts.

Suraj Kalia

validation over you should But be and that how switching customer, a of the if evo large Rod the customer? it. is are confident Mike, fine. there by this Got delay

Mike Rice

evo level. And amendment name. this potential I’m of schedule, specify product personally can cite I which I’ve filing I’m the in at validation also the documents say by aware that the will seen customer’s by internal that managing also Suraj, evo involved name. technology that platform highest the relationship

of we’re feeling this after work, And so which minimal project, feeling as the has countless and group, very we’re it’s I’m hours not into this is, validation and customer partner a – a courier and really any relationship this by confident that put mean.

real to for degree they’re to big alleviate going solve incumbent is confidence is trying This the They’ve win and a them. some problems that got this to deal are of opportunity. pain, real this with a high we that

We’re we is to a ever been. have completely outperforming It’s confident details. it’s current closer the than little a lot and that now the platform too But evo soon feeling speak now technology very use. to shining I’m the personally in technology

Suraj Kalia

partnership just could FYXXXX, potential factored from you’ll I have contribution Am in clear, not right the needle in a quickly. that? And to move saying be that

Roderick de Greef

comment. happens, the year, of would the start. back call a it’ll happen it QX If Yes, it in that’s it fair half

so And in XXXX. is given revenue the going de actual the be model, minimis to on overall monthly rental impact

loosen floodgates, validation was the Suraj, expect it particular on you from customers customer big a It’s in number from on customer. of of will, the to of we not different had sort we see Kite that lot that to wings based marquee that companies validation CryoStor utilize of who other a are the waiting of huge this aspect somebody if that started that and will other validate. when The pile for

Suraj Kalia

for you XX%, from were we question, give to to parse margin moving on guidance the this? the Fair could the enough. Rod. XXs Obviously what’s the businesses, us And what forecasting. Thanks seems you that for just that different than Can Gross four XX%? parts lighter a the kind final taking out, great. moving FYXXXX the would be of little question. XX% If

Roderick de Greef

a we’re which Thanks, into been line. on unit lower conservative is there. with product will per the units higher the evo, are CBS bet. Because on The we’ve Also cost, and fundamental getting margin. basis producing reasonably field. if The negative you the the gross there fewer has associated the a impact on out generated the Suraj. You capitalizing is overhead driver gross revenue on margins based

think I we do better. can

out want saw we think I that yet. little to hat I a of and But our don’t in go that bit on pin QX.

definitely So results. up on throughout the based as move number we year, evolve see that we’ll things actual try to

Suraj Kalia

Thank you.

Operator

Thank you.

Our Jacob next question Stephens. Johnson comes with from

now Your line is open.

Jacob Johnson

Thanks Rod. for questions, and Mike the taking

Mike Rice

Jacob. Hi,

Jacob Johnson

employees And are hope you safe. and your staying

guidance question, really quickly. on First just

Just this make the way. right want thinking to sure I’m about

evo. the the adjustment base With related guidance around lower and for the of assumptions to entire reason

Roderick de Greef

It’s same XX%. We number. at that were to XX% exactly

at drop XX% to in a evo $X revenue million million XX%, $X guidance. We’re reflecting now to the

Jacob Johnson

Got one of it. you Thanks these take evo. these if share still for incumbents from could that in how kind business? of project win that mentioned I Mike, Rod. things. it’s share much to And you But early taking of then incumbents imagine, you some from

Mike Rice

there visibility dewar. That’s people three, Jacob. question, the Well, of using two we good just have a great a and who’s incumbents fleets really various are into or managing not many are self

the good who’s management quite it defining, class of and expensive sense both chain doses. biologic is manufactured evo competitors But state that is using source we material the is for platform really next small and a really cold of So shipments terms who. have in of of we universe innovation the sensitive the these temperature believe of

frankly, customers response reimbursement with. deal for premature paradigm the not or are pay environment, our with to And having

be one shipment imagine patient large of that, has or one nothing the You dose, one can scrapped to many it impact. to to speak as

solutions. real desperate pain developers These there’s better need there. So of are out in

how sort about evo grow or pipe linchpin bullish talked of cleaner we’re will adoption So, the can catalytic about. conversion be once this

XXX own that, in despite trials. nevertheless, stage their all clinical another was customers, who evo are least gestation at of with used But

each to clinical of and through those approved. later And so, for we’d progress trials certainly look phases they ramp as usage customers they of up as over time get

optically being predicated we’ve this win. the of background, of great at least really But opportunities. on kind about really a it’s in So, to able lot got talk

Jacob Johnson

the I’m shippers But process. sure this then potential not you Just of cost then could Got And some manufacture And on there be Mike. like us might for update us the CBS shippers? there? in facility? what where interested, of question. it. the sort Thanks efforts timeline the for to the you I’d is that of at evo the last remind evo producing are to just look lower the

Mike Rice

Yes.

of We could development got to off cost relative believe your on multiple from savings and Bothell of Detroit part kicked the a at to bit window. involved We but last there a happen Albuquerque product on out end product So the our And here the process time that. little formal through kind the be Jacob, a February. expect Could yes. mid that’s folks going It’s material question, plan in come we planning earlier, the the Detroit that’s of QX. team. of both factory

Jacob Johnson

it. taking the Thanks Great. questions. for Got

Mike Rice

You’re welcome, Jacob. Thank you.

Operator

you. Thank

Our question next Markets. Lake from Flaten Street Thomas with Capital comes

Your line is open. now

Thomas Flaten

for guys question. Thanks taking Great. the

Just two add mentioned suppliers. what that some some you impact means Chinese your me. to Mike, overall or had the remarks, and to for Maybe color base what your supplier more relative quantify you that? you might that prepared in qualify Could be?

Mike Rice

used relates to the any supplies manufacturing. And would can Rod, be you It it Tom. to additional media speak color in Sure, helpful.

Roderick de Greef

bet. you Yes,

zone product a of goods earthquake finished viral to of the months, But building last and the about at nevertheless, to I long in articulate you putting six XX zone. sort this At putting a the aside objective a the Tom, site think an aside as continue and have off I been at outside risk opposed don’t time least of thinking of But following inventory. we warehouse. months us enough. Reno may not is know, strategy – GMP over being

a worth about goods quarters in of finished Bothell. that, In addition we here to have

of And we material we material get that over a because in raw out ingredient of it just of have out China. one comes of raw specifically China, that particular year’s worth the

the really only that’s so And piece.

and masks something of We also that, were gloves obviously out China. come found

a either in-house on relative the the have those of to stocked manufacturing have we utilization those and process we worth in about the up way on year’s So or items.

Thomas Flaten

then CBS, mid-point drivers That’s over or at I the switching implies XX% sales bit your priced kind versus Can a year great it you talk are? what and higher coming units force of for a the XXXX products? loosely from about new of so. know mix that, a little some but those up, over there’s was growth about substantial guidance pretty speaking, to to flat CBS. around XXXX But

Mike Rice

bet. using handful of that who been It’s time really, CBS and alone marketplace, a will a direct in we in significant have sales amount product distributors. going think We’ve their historically relatively you marketing XXXX. a revenue on increase focused that in that focus Yes, of are and passive approach to on added sellers has line, large a

say be we’re half engineering balance of the half of and his the that which Let’s Brothers the will new from increase second the launched have in underway, year. with team products maybe looking there John for coming

Thomas Flaten

so Great. Thanks much.

Mike Rice

Thanks Tom.

Operator

you. Thank

question comes McCarthy with Group. from Jason next Maxim Our

is now Your line open.

Unidentified Analyst

as for that mentioned now. Jason. line questions. was chain impact disruption Hi general this you a and and Dave this it’s in may that some this regarding supply to impact I taking have I you for think on on you coronavirus I can you just I potential know just maybe numbers if coronavirus into Thanks perhaps China. guys, believe you could cell factored the have, provide trials, right I a your possible of into everyone, a And that. on my a therapy, outbreak customers’ else guys questions overview your specifically shed well two may the But hoping color XXXX. as impact the the after additional guys enrollment sense clinical how general someone asked wasn’t question exposure moving

Mike Rice

that take I’ll Dave, Sure. one.

we’ve on levels engage to including, effort through we good based a planning on sound based folks got business our here. how really So, at see things and unfolding, rotating planning, continuity triggers we various think

other time the same not plans. at So they’re mitigating all plants the risk in and

with what communication customers ask seen to some Now we week above that, to point reassess forth. and so means increased driving our and for advising the to quantify located at but not that response earlier a to levels, doubt it’s no this and and that over media, been their us We’ve to reaction inventory where them respect so strong baseline, some demand. in on pretty customer orders to there’s demand we’re to sent there’s

stock, will. you So they have some if safety

is corona trial to going into We clinical which decreased would saying, anything decrease a enrollment, translate haven’t products. then heard demand Hey, for media customers from

are we touch in nothing to with main to questions. So ask although trying our keep yet, these customers

we’ve side. be planning no freezer to but so it’s well, seen So point, least the evo the at far to that’s at the speak side just that from negative And all indicators, cautious, to this or trends that and as Rod, field.

Roderick de Greef

impact point, field No, fast we moving. about this kind it’s as no any dynamic know, we’ve at feedback but from of and all gotten it’s the

year. So it to to by have we’re again, we’re play just going

I think of impact all demand from a a supply seen be whether standpoint, to this. we’re okay. And it’s really, remains going be there’s of to

Mike Rice

people. read plant affect That don’t right. of meet trigger over are has that’s anyway. here. all that Workplaces today events you We exempt. banned Earlier Yes, doesn’t the XXX probably public governor, the

running we’re And think open good the so, we and terms of shape. in a keeping in plant

folks if have good in for and We hygiene keeping they the from practices are away sick. plant

we make to product. So continue

production the against schedule. building We’re

the But dynamic but to of And we’re any at sure the quantified so, magnitude can all good we Rod just be point. we thing duration so I as and unfortunately, on make impact so business. very doing can this mitigate mentioned, and can’t this far think

Unidentified Analyst

of of wanted And Great. other on just a the coronavirus central hear Thanks therapy additional your application treatment. itself couple to that. I for a questions in cell thoughts here.

example For be you into coronavirus space shipping a sorry Mesenchymal that pathology. we Stem would would a the entry the day that, you could opportunity coronavirus given think therapy see the Mesoblast Therapy the Do other potentially respiratory needs cell guys shipments of that targeting for developing widespread be heard and component larger the with of logistical Cell the or distribution? we companies

Mike Rice

Dave. good question really Yes,

of trials. cell target use one at based symptom the it form or at any remains corona of know treatment as of I a a distress to in corona and as clinical as hospitals of gene that But of of initially treatment some either least a again the to acute either also has media confirmed their clinical or customer trial use corona. will small therapy respiratory lot MSC There’s related vaccine or seen. be We but publication So, in pressure to regard. as say would treating scale cells our syndrome least that believe a treat cell that There’s on NK application we the a now interests in be to a vaccine. in

that following closely. be we’ll So,

modality of a high degree as but doubt We are about and/or so, the no interest there’s a potential clinical but most of early contact a days that vaccine. treatment customers, good with to in pretty here, think

Unidentified Analyst

the you question just in Could Great. of some out one guys granularity well last have have readouts as of here. you number the XXXX? guys customers as on coming And pivotal with late Thanks. provide number the stage customers you

Mike Rice

Yes.

really support. don’t Dave, sell we we’re distributors, think other some because we we In have that, tech just and get not there. remind we full because we’re are. provide plugged on the who some just we to listeners I in in do But clinical clarity So not we scientific just, distributor’s I’ll because or the customers cases some cases counts

And say of XXX using are the those direct trials cross so, just most estimates. have increasing be to I’m underway. about we and trials evidence what there clinical of pending that nearly applications But is products. prudent The requests the reference as get Masterfile are, number will clinical number

Phase count, way. the clip. as at three are last more Phase the strong But Phase and many over trials of X nevertheless, a years X there growing four in it’s to been go in we more really the many X that that’s X And Phase dozens

no question. built addition that. But So additional this and customers clinical who XXXX, data can that’s And ARM full potential of it’s up. report. we’ve go with customers I’ll are in good other the see year many doubt where will approvals readouts. I’ll great seven five follow filings and we to if to year a are base the back I have there the a

until they are the might customers and a for you In in our I’ll our readouts there I look to will on phase they clinical region QX space update can pick that potential slide who so from off us potential want because cherry call. a to that have have wait publish will data QX by as fact, their med

Unidentified Analyst

Great guys, Appreciate thanks it. lot. a

Mike Rice

Thanks Dave.

Roderick de Greef

Thank you.

Mike Rice

Jason. to best Our

Operator

you. Thank

Our next H.C. Wainwright. question comes from Raghuram Selvaraju with

is now line open. Your

Edward Marks

This afternoon. the us. you I Good Edward appreciate is broader A of from Marks taking guys Ram. for couple questions. ones on

pull term thinking are are trigger big seeing planning and attractive you general area year? Firstly, And on a after what year just if targets last you if about? anything in so, wondering any the acquisition to near you’re

Mike Rice

is Hi and this Mike. yes,

share anything we So some speak that. activity just if and revealing more and as I would the those but there and mentioned, I done, we’ll to underway. it are that I’ll really to doubt, get limit be additional too then some of be some additional no at probably the are right time, excited space. could just keep in remarks. tool They activities my point M&A

You bet.

Edward Marks

what you is just efforts. secondly, and by based, going the for currently do your percentage of wondering is envision how then the status company’s evolving And this the specifically revenue And Perfect. what of customer accounted forward? is diversification largest revenue

Roderick de Greef

Yes.

concentration So media XX% media just I we’ve customers to in or a had, The that is as just CBS less carrier so revenue. the customers. pretty concentrated handful product on the of ThawSTAR XX that relative evo and concentration as top, side, let’s on kind for the the mentioned of there’s we can partners of say, or line. where more product have account line It’s

they fact customers. number of the a that by mitigated user obviously have end that’s However,

behind to think we that, M&A you about customer overall if diversification some one embarked of I that concentration. there, that’s de-risk the of to out the that strategy reasons significant of that, And shoot amount XXXX, was over the that So media think just the just diversification a right we’ve media be we’re business, from that, perspective. a already there customer fact the expecting on half in accomplished

Edward Marks

all you That’s sense. Makes Thank for me. guys.

Roderick de Greef

you much. Thank very

Operator

And from our Marc Thank next Riley Wiesenberger you. B. question with FBR. comes

is line now Your open.

Marc Wiesenberger

Yes. quarter? you How did Thank you regenerative new the medicine fourth very many in customers much. get

Mike Rice

number this the I a minute Hi just, Yes. just had Boy. ago. just Mike. is Marc,

is press that that I second. can Just if give me Rod, pull out. release? disclosed a the I’ll in see

Roderick de Greef

We typically do.

Mike Rice

Stand-by Yes. a Marc. for sec

Marc Wiesenberger

right. All

Mike Rice

additional and right? after up know so a Marc, All I we’ve XXX year But I’ll new Well this, regen med XX the coming device. call. in that have for customers, for call the of our and trials it’s clinical bulk got number them

Marc Wiesenberger

you’re regards points the share specifically solving incumbents as some of you’re customers what With that your that the pain shippers, sure. are Okay, evo talking take looking relative are about? the to to to

Mike Rice

Marc. What a great question

two areas risk. it to really So of relates

materials, not the biologic of the that the therapy due really the insulation. the Maybe but health jostled precious vitality traditional the gene for insufficient or either innovation source for so performance dose. the really is get these right and The in years so. material current happen the is, can been inside long, of And using manufactured cells and can innovated clearly what shippers to maintaining around shippers first haven’t or XX poor

can It be exposed temperature to excursions.

which fact, render can traditional cells a can or a shippers, be they if In complete up on tipped the them detrimental exposed side, their temperature, start warm the and to they’re to hazardous unusable.

the DV itself, Now a of some including shipper that at has pending the solve shipping lid reduce the evo the the that, this cap, for features or is also innovations Dry vapor least patent the both is can dewar dry container. for which number around potential line, can DV Vapor the and smart which

we in that. have advantage Additionally, a price

based out done the to with do the leading responding cost business we’ve on gene leasing and these end shipment curves We’re renting winning evo container well therapy assessments, they play, a And the the of or would so developer and built customer. not as that the is carrier advantage that a into market logistics or charge we in putting cost we per the in how know have put advantage, cell which they’re quotes companies. as RFPs the cost a charge hopefully

to And then evo.is. lastly, the I would speak

if the plan, them end-users only but be intercede surveil factors to and can help data soon to pay goes it’s administration of that application also arrive, and not talk and spitting all the to awry, based location load that would alerts the continually cloud help the shipment, is logistics. and temperature very evo.is of helpful ambient and various them that temperature their to other how shipping the these going they’re out condition help carriers So containers and the patient but something

very innovative that and of really are a patented for are put features we which are and evo.is, portals the patent other in apart application of And granted have awhile. received number a evo.is which unique so some folks the there using the from through been that

is there’s payload So component the protecting really the IS cost evo.is, which and precious IoT there’s to state-of-the-art. it’s then then about, a better. together, all biologic the really whole things And advantage

Marc Wiesenberger

precautions on additional That’s coronavirus light really could and to helpful. the same with that delays? you any of the delay impact the and carriers, specialty cause work or you lines Thank advising as them and in you. cleaning instructions shipments with And maintaining along take them are potentially

Mike Rice

Yes. question. Good

comment that experts I some the make, They’ve this. competitive that are noise our despite our partners is think what in this would know Marc, I carriers been doing. don’t doing for carrier years and they’re

and And so they of to That’s ridiculous. evo forth. on the check to These temperature so so you have want doing carrier procedures, a know particular performance to stick SOP what and dewars with recharge the they’re incumbent. validated procedures liquid the cleaning and nitrogen

all that certainly got available that. but wired completely they’ve do So to stuff in, help them we’re

fact, how of is In we apart. can training that’s of as stand recognized a big been part offering the and component service our

Marc Wiesenberger

maybe helpful. if position, could potential in how expected cash me. think wondering talk about Thank Thank XXXX M&A one you very and about would you and you. burn funding those? the did about talk more some for you. you That’s And I

Mike Rice

Yes. Great.

can to of Rod, you if speak those like. you So both

Roderick de Greef

Sure.

cash combination be It’s the depends I think to on the stock. M&A on deal side. a itself. completely going It of and

dip down we that may would just to the year, I million X so throughout but points. think to operating, or with the be respect low anticipated

we So, have. very we cash feel the balance with comfortable that

Marc Wiesenberger

Thank much. you very Great.

Operator

CEO to back further queue for no showing turn in questions I’m And Mike like I’d you. Thank call time. closing remarks. to any the at the this Rice,

Mike Rice

speaking results. in night. we safe. to calls our Jimmy. during report your Thanks you again follow-up Good thanks interest look everyone We QX forward our BioLife with and for stay And when

BioLife Solutions (BLFS) 11 Mar 202019 Q4 Earnings call transcript