BLFS - Earnings call transcript Q2 2021

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Operator

Good day everyone, and thank you for standing by. Welcome to the Second Quarter of 2021 BioLife Solutions Inc. Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Thank you.

to Financial over Officer, like today your would Chief the Mr. I turn to it speaker Now, Roderick de Greef. Please go ahead sir.

Roderick de Greef

Thank earnings afternoon, everyone our release, and you, and thank the highlights financial XX, XXXX. six our you afternoon, Nelson. results three for which and detailed second call. issued we quarter this Earlier a press months for June Good operational joining ended

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

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

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

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

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

Mike Rice

our Thank good you Thanks, for everyone. Rod, call. afternoon, joining and

another and I an will on revenue and that, today be Dusty guidance speak increase half targeting on and Joining synergies. your provide initiatives acquisition my After After for take Operating Chief our XXXX based Then to remarks, Rod of integration present key he recently-announced we the and update our we’ll Dusty QX XXXX cost managing Rod making glad first will Biotechnologies. financials are President to and questions. for is Officer. Tenney, Sexton and is of

Okay.

to XX% turning organic Thaw including XXX% from with strong and XX% customers QX revenue of XX% last Chain three up $XX QX was year-over-year. revenue our XXX top-line sustained last and new We XXXX. specifically This Systems momentum highlights. we our in and new million. QX was our compares our In to gained to grew Storage versus media, across year. Freezers important and this and year, above and So that note QX biopreservation customers platforms, XX XXX up services in versus and QX franchise nearly year This It’s Cold QX media QX, product Services.

So, to I’m market. execution with CGT customers more or capture therapy cell in quickly very the pleased high-growth gene the team’s and

[indiscernible] IconOVir, Now, media financial some gained Quell and Biologix, Ansun BioNTech, our I’ll Wugen. MANA customers three for the and we Therapeutics, speak including Biopharma, metrics Cellgorithmics, Rod revenue each. XX QX, make qualitative let about In new to Axolotl comments Therapeutics platforms

Therapeutics, from Myeloid our Janssen including therapies also gene that into from biopreservation Lion from estimate from media used next in and bluebird. filing XX is These new We CryoStor approved bluebird. Deverra cilta-cel media Wugen. received and Iovance, in more used media quarters. one that the clinical inlacel new approved in BLA Of six products could also Kite, ZYNTEGLO omidubicel and BMS YESCARTA three and NeoProgen that been TECARTUS and these, our and be clinical [ph] Therapeutics, cell bio, used include Novartis, therapies and therapies trials We Abecma our TCR an confirmation applications. from than customers have for and in FUJIFILM, Therapeutics, Cellenkos, products few is additional additional Breyanzi incorporated will bluebird XXX customer Gamida from from get Cell, SKYSONA Sigilon

We customers the biopreservation can market to. we tools that that marquee of services and is to media to leverage sticky franchise engine believe continue portfolio our our

CBS Freezers Our of This and ThawSTAR this and platform Notable in includes new Ultracold water-free including now for Sarepta. Diagnostics XXX having using gained Tissue XX QX XXX XX systems. ThawSTAR nitrogen Northwest, Systems customers automated freezers Thaw freezers, liquid Catalent, platform, CBS and some using to through mechanical supplier using performed Neurona freezer include accessories customers now new Roche freezers work despite Stirling Stirling Therapeutics, Biotherapeutics, issues. well and We Bloodworks now thawing systems. or our platform freezers, line AX

for Capsida KSQ we strong Biotherapeutics, for rentals to all final XXXX. and thaw evo And the expect the in Therapeutics, services, three stores revenue and services, demand include, platform XX customers remain which Alloy chain solutions of gained TriLink our includes chain cold and storage and rest platform BioTechnologies. Therapeutics, New customers of SciSafe new cold platforms,

expect one For to progress for we’ve months. services come our two the processed end been used few over pleased the and XXX critical evoIS online starting U.S. countries manufactured to now. With nearly platform, and/or online end for and for continue next than XXX in an some the I’m cell to and notable gene new X,XXX storage our of app CAR-T These customers. approved therapy evo platform, validate year. also of cell in both both all cold new referencing shipments cloud management customer come very and The were DVXX to report the we in evo the QX and good build material about in shipments geography expected that Shipper more in time facilities, before were out one chain we therapies one additional of make we Smart to Europe with

also have uses enhance new clinical customer pleased therapies. This our this with the partner several all transportation of company cell cell media to the very lifesaving a and biopreservation We’re opportunity therapy. pharma of to trials to

for specialty the serving from received Shippers This systems cell XXX a nearly partner. and Smart evo gene order new carrier Finally, we an space. customer logistics therapy courier a top and customer is recently three

execution CGT We’re At activities. spend in few investments human non-protein Capital with minutes working expected quarters. to CAR-T next several cell just which support at seed automated machines to BioLife fill media and platform, we of is support media; of a be steps using finish four now package its level, are Sexton used Casdin Deployment vial, solution differentiated Athersys, decided sales, has Biotechnologies. Solutions process; the of human adoption. acquire at a momentum increasingly customers for over XX through carrier’s is resources the speaking and XXXX, cell awareness about three three this from products for to Warner being Orbsen first, embedded following third, replacement form our an to proprietary a a Myers to therapy notable or progress to like documents derived for in and the customers Bristol Regentec gene the growth. some active trials, that final that in being manufactured based BioLife Sexton made one I’d gene therapies. platforms; It’s TC announced least Since fund We’ve media in Sexton in strong the can more biopreservation Cartesian Recall solution inflection driving CellSeal growth. high for second, Sexton’s Sean manufacturing than that their training all and to and completed lysate XXX portfolio and opportunity into therapy, marketing with Therapeutics, vial are made CellSeal great the or Sexton in HPL, who platelet clinical to Cook approved our automate acquisition spin-off uses to and as primary products so cell culture September products, and and animal accelerate their point be team entire which serum divided space and of their Breyanzi clear growth relationships Sexton BioPharm. product the company’s now the high and the had noted the in plans. and a increasing company with Squibb about synergistic package leverage cell

to is generate that Capital capable In to works BioLife report processing another cross-selling bring team upcoming on members sales including welcomed month, to sellers. our worldwide we acquisition opportunities. will and Sexton example global our scientific partnership enterprise. With summary the biopreservation great family, forward, At of team Casdin four sales will of media. all we this a revenue From additional with point dedicated later very platforms strong XX Sexton, meeting the accelerated we high-value asset how investment BioLife the cell XX-person this train new of our Sexton on also further our in in includes our to platform

on I’ll of Now, Dusty? and to an Dusty identified the the leading. integration give some is call turn you synergy and cost to revenue over initiatives he update

Dusty Tenney

Mike. In synergy; planning Thanks, areas on have our growth, three systems. efforts of cost moved efforts to execution. and We’ve integration systematically QX, from focused

cross-sell markets. For strategically opportunities geographies underrepresented growth these expanding end our into are team are size working rationalizing the moved to given to Further, our expand while synergy, enable partners. sales have of we within and we where distribution forward to we

the and our identified a cost infrastructures. efficiencies and our with continuing and solutions the benefits cost system utilize opportunities growth On will products and to complete have on our front, embarking significant rollout underlying deliver supply provide the more we the complement spend, synergies, that and an realize phased customers. To chain across are to leverage while facility synergy of business identified enterprise-wide platform ERP to platforms space, optimize efficiently for support we equipment across between business

Mike on Finally, look add continue the future of continued critical the have to resources across all requirements we meet train forward a demand we that call customer capacity to will as platforms. proactive support that make taken to discussed, with has providing of our initiatives these to progress. We quantification all and steps demand

Rod. over call the turn I’ll to Now

Roderick de Greef

May financial week. representing XXX% Thanks, $XX.X $XX.X million. Services we revenue from brief Revenue over which from for Chain Storage million, of last $X.X quarter up for Stirling make results second million. a media the to XXXX. $X.X XXXX QX Dusty. for million, some of start million, a June reflecting of XXXX $XX.X transaction for over of with XX%, the six totaled driven Biopreservation revenue second SciSafe, over million Sexton for $X.X six-month Revenue this $X.X months Revenue revenue and Revenue the off increase COVID-related of to contribution was was earlier the a $X.X included million, about acquired biopreservation then Freezers by increased growth of increase XXX% quarter quarter from Thaw Organic first review XX% we XX, and of second $XX.X demand and revenue June revenue and of which QX in QX QX our announced comments from Cold of six I’ll which including pull-forward. XXXX for ended million. million, for a million, the year, an second million quarter QX XX% year. Systems was contribution was the challenging totaled months last a $XX.X of $X XXXX of $XX.X comparison XXXX media inclusive million revenue

high to to range. mid expect XXXX full-year We see media in the growth XX%

for Our margin adjusted last XX% XX% XXXX the second was year. quarter compared of gross with

and expenses we For or XXXX show with The sequential adjusted plus year. in the both the mid-term and in acquired modest profile a margin for in will XXXX, of lower decrease into beyond was We margin increases, same with XXXX XX%. we QX QX begin target of year. last margin the first last which of lines $X.X should XXXX totaled adjusted reflects gross of for in gross XX% of gross gross continue toward QX $XX.X in operating XX% compared months million six execute QX believe to adjusted that periods Adjusted margin the margin period as XXXX. million product compared

the compared as both year. the was head and $XX.X XXXX well additional to in operating periods to operating necessary six made first with first last The support adjusted compensation related by six increased million totaled of XXXX as For driven expenses primarily of and overall $XX.X the acquisitions expenses objectives. months XXXX stock-based our in increase months million expense growth in count

quarter second $XX,XXX the for an with income loss operating adjusted of $XXX,XXX year. was compared operating XXXX last of Our

six $XXX,XXX XXXX income for XXXX. first compared adjusted of operating to months in Our totaled $XXX,XXX the

net in for net share was $XX,XXX or per XXXX the quarter Our XXXX. loss compared loss of $X.XX $X.XX an adjusted adjusted or share, $XXX,XXX second of with per

Adjusted $X.XX year’s $XXX,XXX $XXX,XXX EBITDA For $X.X for in the or months increased with with XXXX adjusted six per million diluted million income income of $X.X first share second quarter per quarter. compared of adjusted net in of net or last share was XXX% the diluted XXXX. XXXX compared $X.XX to to second

six million in first adjusted For period million increased EBITDA same with the XXXX $X.X the months $X.X XX% to compared of in XXXX.

June at decrease in XX balances of $XX increased March receivable bio-storage accounts million, related the in certain in the down balance a to is and cash reductions first later million in facilities cash coming $XX from our related at revenue XX. U.S. Our of Stirling to the in payable timing quarter, our the and of was result expenditures capital establishment the Netherlands. accounts expansion international facility of The

expect remain rest the relatively to our balance cash of for We year. stable the

XXXX five all-stock our which a like few valued on comments transaction, $XX This or times at approximately of make Now I’d acquisition Company is to recently-announced the revenue. an Sexton. million

the be our of XXX,XXX already shares million shares don’t stock. through common paid BioLife’s for ownership we $XX the consideration position, issuance paid will of Given own the approximately

Sexton’s $X.X from $X $X.X in expect come million revenue million up full-year XXXX. XXXX million, We between in to approximately and

transaction September on the expected Assuming X, contribute QX in closes revenue $X in and million to QX million $X XXXX. to and BioLife’s is Sexton

their revenue mid within Sexton’s be XXXX based vials ultimately CellSeal media is increased levels. in two-thirds from of two the will accessories and with gross and next Sexton’s margin XX%s automated approximately of the balance expect recurring future consumable comprised XX%s, in the HPL the equipment. to expected We cell mid climbing revenue into years on sales be coming

of well which my biopreservation systems, Thaw to revenue is remarks cell platform, in revenue million and the revenue for to will our XXXX of approximately XX% is and Revenue the media; of we next including Chain XXX% expected growth growth Total to revenue I’ll accounting comprised and XXX%. and three revenue, and and million be $X of platform million, between Cell revenue, include processing acquisition for be $XX Beginning be range guidance expected following. processing Services, XXXX for over line CBS evo categories; Cold line; XX% $XXX to of Sexton and million, accounting million includes report of to reflecting between to $XX be to million Thaw and is XXXX. XX% expected services. with million EPS in We Cold revenue. ThawSTAR which year. total for for accounting $XX as of Chain and revenue. Storage QX, accretive expect and conclude approximately revenue. as Chain Sexton adjusted to expected product is revenue the Freezers reflecting the total year-over-year Systems our revenue $XX $XX Freezers will product million, be our between Cold includes modestly Storage XX% which XX% of million is the approximately Stirling expected for total our to $XX bio-storage freezers Services $XXX in be XXXX to and product and

Sexton XX.X diluted XX.X transaction, million shares a share new the with shares and issued terms and basis. be connection count, which will million of taking we outstanding on our the issued in consideration fully will Finally, XXX,XXX in shares, into have

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

Mike Rice

I’d Rod. takeaways like summarize three Thanks, from to key QX.

across sustained our product First, The demand today QX. midpoint platforms. we through of strong the demand has carried to had of roughly all

all we with great products and the the is around. growth Next, to acquisition first a have class The are catalyst Sexton. team portfolio of another and our fit perfect addition a

three to the Finally, of reaching can revenue plus initiatives, adjusted years. $XXX with Dusty’s over clear we to four our in next margin integration of EBITDA and and percentage XX million see synergies a and goals points an pathway aspirational

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

Operator

Mr. line and And question. first Mike. go Opening Chairman Please Stephens. CEO. our the here’s Johnson of of [Operator up ahead. you, Thank Jacob Instructions] Mr.

Jacob Johnson

maybe and Hey. in sequentially. just Rod. nice Good pickup SciSafe afternoon Maybe or a everybody us – on a There quarter. is question congrats hey, first rental nice you gave Rod, Mike for revenues. revenue pretty

back strong looks it quarter. like you If into evo pretty had a it,

quarter, revenues guide the don’t item? quarter you how talk shipments acknowledging did about we X,XXX think forward, going the line business I about from how by talked that in should and maybe Can that You you just during evo Mike. about think

Mike Rice

Yes. new that courier from expect would base just coming very we Yes, some well significant the that’s clearly quantitative adoption But, seeing we Jacob, are here, on and, whatever current of from I’ll qualitative to fine. top make are evo online more with contribution courier of I much you want the comments side question. in is momentum announced one the entrenched, a Rod, do them. three. great the They

in but unique app. the recognized Shipper, the and of all cloud of They’re attributes the unique of So all, the the platform, the not appreciated. evoIS Smart also awareness EVO software DVXX being only capabilities

all courier qualify marketing system help off. them the the last and several sales over made to and teams performance charge better to with teams materials of support these the we’ve train depot efforts years evo paying So characterize to their to the are

we bullish mentioned a for So clear from do well just we seat years, expect I it’s is very now, similar than as And the this. would that the who will of this clear Rod, on again, and about for really Jacob’s the incumbent or the the competing several companies platform calls, this that. about there been container glad idea can that to McCormick great bullish a and to evo to on all that SAVSU And point that last and about is a in one. driver’s the de-risking as but company incumbent it for more being despite it’s got we’re as a to glad evo modeling and significant us other approved previous question certain shifting made had therapy speak Bruce kudos speak of now opportunity. to revenue a being be cell away the shipments adopted, And fit, portion company Dana, room and fruition to just time see in and the who acquisition. been there. folks you a this it’s It’s long not measure super the to and

Roderick de Greef

Yes, the guidance really line want to I obviously that revenue evo think, try product stay we QX of each the have. into we every away Jacob, within side bucket. And and for backed providing and you’ve from

based that I out, we’re XXX well it going performing new it And year, of the expect say is which far well would been what perform out. and particularly as as the is to so has throughout that units the balance on are we looking

Jacob Johnson

Rod the are Sexton then exist Got you can Mike, the have it. related that fill-finish Sexton provides, Thanks that between media talk deal. And maybe Mike. on two products? those the that just and about for synergies the you and how work the in vials cryopreservation

Mike Rice

picking the the the In same users, or decision-makers. it’s up, that for Thanks most Jacob. same same Exactly. cases many buyers,

the end, portfolio, Sexton now, with in final the was in much up workflow, we’ve the acquisition just So moved cryo whereas the now packaging. in workflow, before pretty toward the

So in just to got we’ve Aby We’ve great Mathew form be of Sean extent again that it’s in and Werner now to we’re buildings, that PhD, protocol, a so use I possible. our ton the the leverage highly who flow labs, the going the in of fullest a optimize scientific we’re think of can relationships up customers same same Dr. customer ambassadors network synergistic few their and and to steps and another systems. champions And in people, help engagement. technical got same and support

it’s fantastic. think I be to going

Jacob Johnson

Sexton, I else if I go vials landscape, about you to biopharma when CellSeal Mike, where you then a industry. in Can cell cell And everywhere it. if is gene more vial? for want chose future? the lot But one world. in guess, in that therapy, Breyanzi could bags use the to and bags can just think today maybe you the and in maybe the therapy guess, I on see versus and in see you Got about of gene why it speak And and talk just I to vials where the sneak

Mike Rice

intuitive really questions. on, right on, right Yes,

there right. as stem from a in that lend But volumes vial holdover waste. is the less are bags, the to there therapy cell space a where infusion packaging traditionally was cell So itself smaller transplants,

weight more one you shipment There losing need versus dose be risk to. crack and less vials can in in titrate vials as sending many the than You shipment. as based patient’s the entire a on could of bag

again, the bags a really as would The volume depends stem of traditional that on away it And optimized shift to vial So decent we expect see the sort based or indication infusion transplant – cell such bags. we be clinical from a on there could proprietary application. could CellSeal.

But right. going. infusion again on So that’s where total based it’s predicated volume,

Jacob Johnson

That makes Mike Ron, Got Congrats nice a thanks taking on quarter. it. for and the sense. questions.

Mike Rice

Jacob. Thanks,

Roderick de Greef

Thanks, Jacob.

Operator

of Max next have Please go Masucci our Cowen. ahead. We Mr. question,

Max Masucci

a Hi. on quarter. Good afternoon. Congrats great

Mike Rice

Thanks Yes. Max.

Max Masucci

new the shifting So bit if wins maybe around a can these you existing specific customer customer you’ll your wins new customers? just new expanding the QX? in and going the around give relationships be of towards inflection focus drivers pace detail us your with more And forward expectations or of and

Mike Rice

Max. Right on,

I that activity are there’s lucky cell we here because think much lot ways – right gene so of we’re therapy in space. and and in both a the

them to SciSafe. We’re portfolio, the the would them them and selling great team of do biologic freezers, to expose which Garrie thaws, asking about leveraging questions they services, customers a the play storage outsourced need be media the for other at selling our parts

mechanical Stirling CBS. at entire temperature covered LNX freezers, both Now with with got and continuum we’ve the

all, very media those to and customers go again just have conversations. in core greater us, all a So Max, back for different opportunity sticky to

expect of pace the customers maintained year. So be rest least of the to new at I sort of for would this or increase

that feet For opportunity got. which us of VWR example, we’ve dozens of very the strong you the has, This is force have multiplier sellers, street. including the as they and an many, on team, know, Stirling team with XX-plus for advantage relationship a Avantor many

in least continue. maintained, to forming at lot here pace way to I’d good So not relationships. telling if again, and And, the of be expect stories a a to

Max Masucci

consensus question Great. here Maybe beat pretty here. healthy basic one versus more in QX. A just

half think any of And orders for quarter Just other implied in help curious the swing half the second year? if non-recurring appropriately us second the great. there guidance larger can factors just are think or the to would just the timers be guide, that any about I that one

Mike Rice

don’t that and Super, Max. you follow Rod, if take needed? up why I can

Roderick de Greef

I only think a the certainly We’ve the that is Yes, helped we the side guidance out Stirling And bit the gave really specific that coming. backlog may change more we’ve to be – did Sexton off $X we business. of it the think of we been because of sure. we stable But the rest gave was Max, purposely out at quarter. expect the hit. working left QX. have there we that The of I that’s and that of got from addition million some seasonality in

I revisit and to we QX the how And guidance and balance so just right we’re the of going the so the think to we’re we QX But pretty see did as end feeling about get standby. now for bullish year there. of

Max Masucci

Thanks sense. Makes the for taking questions.

Mike Rice

Max. Thanks

Operator

next is question Please of Mr. KeyBanc. Paul And go from our Knight ahead.

Paul Knight

I then this And some color and is for Hey, in the there there investors next any Mike, on hard ask Catalent it’s really question, COVID Stirling could momentum timing you it’s period, – quantify that talk demand or that multi-year that terms is change over always agreement, of on side? around COVID of think is to a know that relationship? Dusty I the in

Mike Rice

could of I follow up you you Freezers. specific Good And hear on speak your could Dusty, Great. Thanks, question? you speak part I’ll revenue Rod Catalent or of the knowledge Dusty, to to voice. to Rod the on the total think Paul. to your and COVID-related ask

Roderick de Greef

right? Stirling, around Specifically

Mike Rice

Yes.

Roderick de Greef

Okay.

insight – for the Paul, thanks So, there. thanks

been demand seeing the the we at XX% see and look sort to all some sort cutting it’s of we the COVID to the about that data natural as I XX%, there’s market. XX%. interactions related of profile overall what through we’re the a think revenue, But directly had, extent of of about currently in we’ve that base So - some extension

the starting see that. in we a the supporting impacts ultimately that’s of some academic hadn’t So the past of sector COVID just couple that we’re of recovery the in in the virtue by government and end markets actually to

tied COVID is with the XX% to of piece. XX% about So sort

Mike Rice

Yes. And last I’ll to jump just the then, part. Paul, in

growth On just the really COVID space. in no therapy media, gene applications whatsoever. biopharma thaw the in from bump organic traditional all It’s side, and got we’ve the cell broader great

from some want locations there the aspects, there COVID know, And what’s some from of storage is coming you is to you about certain due revenue talk quantify but of we for agreement? services don’t storage to or business. We As amount that side. well in don’t revenue some healthy our Dusty, that the speak do to is Stirling some non-COVID as sure. there then security

Dusty Tenney

Yes.

Catalent in Pacific, the to carrying on well. just pick up in dynamics that some probably intense time, be on is those we’ve in sort out here in key the to U.S. we’re a well as So And arrangement, with Paul, Catalent build-outs [ph] relationships agreement. geographies you’re they’ve basis. identified by CGT to going over on long-term Asia And basically of been the virtue of arrangement other a forward but the geographies building aware relationships these global continues expanding build as that is primarily as of capabilities

that previously a long-term agreement. been has as it platform is the agreement So standardizes an It Stirling communicated. is on

Paul Knight

force lastly, CBS with are a where integration And with we that dusty? on sales the question Stirling, then

Dusty Tenney

in innings. Yes, say early I we’re would

that last aspects got initial that’s Over respective the We’ve place. of a lot the each some have couple place taken of being of introductory team training brought months taken with members across.

end at talked and the that August, that Paul, have of sales here We team a about together. bringing meeting Mike we’re

is high of there is expectations. a So synergy. lot There

top storage, need also then the LNX to well. they distributors us And with we’re expand lot sales with the and great not mentioned a to for we with the opportunity only Mike are team ultimately as those respective platforms. great customers. already a it’s As the in play that leverage interfacing who need has cover biological to have of that our And is similar customers building that connecting on of gene that but cell before, therapy space

but innings, making early to continue we’ll forward we and teams provide as good we’re very further together. those traction with So and bring updates examples move here specific

Paul Knight

Thank you. Okay.

Dusty Tenney

Paul. Thanks,

Operator

Thomas Lake Street question next Capital, go ahead. is Please our Mr. And Flaten. from

Ask your question now.

Thomas Flaten

afternoon. Good

the on quarter Sexton, and specific incorporated? congrats those me vials, question as add well. the the are to DMF CellSeal on HPL my Let Quick

Mike Rice

FDA. files are master both, the the not Yes. for know all, want are Sexton products. most there There I to follow files a up they’re I then But Yes. say – accurate for question. completely I’ll DMFs, at of but portfolio if general master for just

Thomas Flaten

what then serving business? talk expansion attracting on perhaps just customers it for do a the the existing about them Is or it. better about of SciSafe Got expect both? little new customers you the to or of could facilities, blend And bit it’s you a

Mike Rice

can’t capacity. generally more the again, Yes, demand. We – an speaking up fill with there I and specific, we a to we’re anchor in that this got too and strategically a Thomas, is glad I over generally just But question. then would it’s frothy be where facilities new around the now, offer typically first of facilities we’ve business on opportunistically team Garrie what locating right very reacting business in get facility very that space several the know assume customer speaking to new to and Good focused time. but bring

Thomas Flaten

you I the questions. guys. Fantastic. appreciate taking Thanks,

Mike Rice

welcome. You’re

Operator

the sir. Go Securities. for question Wiesenberger Marc next And Mr. ahead Instructions] [Operator Riley of B.

Marc Wiesenberger

chain kind that company and and way of expect old a revenues think But workflow. a X kind pure therapy. X you earlier up approved Phase good and Thanks, customer was to in – from to the could of the Phase about the the media you’ve certain moved alluded Mike, afternoon. as in BioLife with old Phase then ultimately we

media offerings, as are all think So an on the you us we clinical the to how about a process customer update they kind with you pure should relative when economics give of play? move the through new can

Mike Rice

they And of it, Marc, long that you Sure. know a discrete purchases know have lifetime. freezers that the you I get

articulate that some of but many you both typical obviously will like. that, put have journey, shot. a might revenue, – a And on go what trying we’ll product get or shot would that’s fixed media, and ranges of understand to years stream. in Then together. that’s media The one-time those typical we’re to time. capital. each to hard shares goal the customer to kind don’t a guys we call. we recurring out terms things a so feel our the working that, application our Sexton is of to to as quantify aspirational even in model vials recurring market what help reach the in So SAM for able terms more media confident enough look end and we think some ThawSTAR be of to But try in to piece we yet to We TAM every And obviously of CellSeal kind of in a a so a what BioLife portfolios are consumable, expect the and about revenue future over as

Marc Wiesenberger

Fair Okay. enough.

the challenge manufacturing – kind high-level the evolving. the for in – of Another and is still Clearly, cell gene therapy one. in processing or process

the purely basis your a the of us the of place built in capabilities vision you in what the adapt also are help BioLife some not maybe understand products to the organic dynamisms other for and up future portfolio, flexibility have and the in-house? maybe to but side, better on So little Sexton does an inorganic incorporating kind but what with changes, and

Mike Rice

supplying like significant I factors, if will used couple that autologous sure. right. every shift is would is to question they’re patients of out timing company speaking, therapies about be right. of from great jury that like a that – the not if in for terms they’re tools for in generally great access be The and for manufacturer dose. therapies, magnitude used single Clearly, BioLife that the to a the One allogeneic obviously of of becomes that a and shift

benefit from bullish the doses number of Pretty transition the that we’ll are point. some So, at that about uptick in manufactured.

a is initiatives to Dana-Farbers make not optimistic happen or cell nearly their hospitals own even I’m the community to Hutchs, the as to Fred manufacturing with therapies. enable going that be to on to required, decentralize other what’s The any to to going based systems that investments have you that’s acquire reality time the quality talent put in that you retain, place. have just soon, the and capital the

basis a all material, that. is of because as So these therapies worried potential that Marc, they’re too temperature-sensitive. the and about we’re core, time-sensitive At most their biologic headwind, not its

very handled the entire body. the need So and time outside they preciously be they’re carefully to of

be what So now really different of container different much to have well. works our ability because we all so volumes, about media not different variance adapt sizes, would

that are application. flexibility, so the to many for There those that as get into we cognizant Thankfully technologies of to of several with proving how don’t of their respective nimble, and for to different word customer’s trusted years. want develop participate we other in-house So platforms themselves to a But position the parts these other all broad-based that game tools many, of each could media obviously not a of companies. or need use are we custom be HypoThermosol and nevertheless respond their partner utility your at can don’t our CryoStor requirements. acquire we’re are further we workflow who we where We and packaging players embedded at are. would, either look cement again,

be with the we’ll very just the picking portfolio, our last XX leverage careful a no points. company everything into we’ve Sexton it’s all so far being so, sort fitting lot now opportunities. sweet months So about the or sixth But and in nice brought of of overlap

Marc Wiesenberger

the And me. Great. one final Very just for helpful.

or you quarter? and will You XQ guys bit to think regards experienced to little wondering about could issues there – regards the you some QX freezers after XQ seasonality. the you supplier expect three you that just the third some called supplier out issues having with Thank even I with maybe quarter. you. seasonality quarter. we the think in should in said, out maybe into called I’m that larger larger an bump Stirling? exacerbated with a happen if Stirling, What a And to deal talk you is well did in Previously,

Mike Rice

that fill But can say and can not Yes. in. we Yes. Rod, there’s on you too we much, can that. take

Roderick de Greef

from a the QX think The we half is. for we’ve back is seasonality given – the the it Yes, – summer is summer what going I year the guidance be, of perspective, question to is is end the going driven QX, going people et of at – it spend impact freezer money in by sales is is or that to the to to having be it going to doldrums, come cetera.

be I to would those relates the be to but some, there it simply piece. quarters our So take safe, you want freezer between think and as it if two it guidance split to will be

Mike Rice

demand product then, Rod. manifestation more and just could an talk to maybe suppliers, how you maybe on great to unexpected without Dusty, not Thanks, factory. getting the specific that’s much pushing And so of probably the

Dusty Tenney

to a a impacted got we’ve channels, only I those. of We’ve there of couple Rod constraints worked with sometimes channels Yes, I We’ve there different that take those we’ve line provided. supply think secondary the some that’s business. not of of have relationship that dynamics is care a the and but got variety been outlook primary on navigated have as big sight and different in all noted aspects through impact commodity having good up to the and us. clearly component related we ends volume has faced But we’ve been had think

Marc Wiesenberger

very you much. thank Great,

Mike Rice

Thanks, Marc.

Operator

And here’s Suraj question now. Kalia Oppenheimer. of our last coming ask Please your from question

Suraj Kalia

Hey, Rod, Dusty, Mike, you hope well?

Mike Rice

to same you. Suraj, Hello,

Dusty Tenney

Suraj. Hey

Suraj Kalia

So, Mike, I’ll it slightly a high-level ask question and differently.

metric are say from XX asking to little today? diagram per revenues ago story the So Help quarter. us where we customer diagram, just you over overlap the this look the average essentially be on on of And like, curious take – of the strategy. if does understand And could just does differently. the best M&A-driven terms and also how the tack you And should customer, what more the Venn you I’m let’s months that, years and Venn in how BioLife per can an now? years the question I’m is a talked to I same into

Mike Rice

Yes, the is it’s and still still good platforms. of each fairly Well, six concentrated question, revenue the early in Suraj.

haven’t because other weighted large like are hundreds who X yet. earlier contributors it’s trial mind-boggling. of just what pipeline, even their from who of customers, these in it started are Phase we to the So And they every it’s not speak we distributors, at number direct some of are that Suraj, extent – of the quarter, the customers visibility acquiring pretty then all so clinical of pre-clinical, some stage. is both can we’re But sheer then even pretty averages, later and hundreds and have

And to what all customer of example system ERP Dusty on. patterns are are monetize a There right and now, a One we year very crunching better manual that using, number the visibility benefits what of systems, order have have lot of per the of they’re so systems on a it’s and last the disparate. is those much visibility to described trends. different going

over typical map. because basis speak customer can’t journey to the an really a on revenue we annual all So, really yet, it’s

potential in end I therapies an the gene cell a in, though. thing one $XXX,XXX that couple we you at of basis. that of that $X that revenue to media I a million of and customers we’ve you about those therapy tell revenue with say mentioned of that or just all annually. range Here’s range annual from have talked the near know I approved approved mediate would can’t that or Of six earlier are exceptions, exceeding on high an

some that time it an is still revising though far wins with the range. really out. more narrative few for and to a tracks holding. is small us need how thesis to But too think those holding. that end see approved so It’s We about of customers So newly

cool. So that’s pretty

Suraj Kalia

two for And final may. questions I Rod, it. if Got

your a and of took Rod, Stirling. step-down manufacturing because So, any one I goals the get at up, margins efficiency roadmap gross understand gross Stirling to especially update bit on quite margins is

of consideration? million what it down? for questions. could So, end or if fundamentally that? components, quite it guidance, through conservatism lower you was has I walk the the you implied Also Thank breakup the growth revenue a different $XXX us my understand Rod just the stepped bit of taking Is is but

Roderick de Greef

Sure.

line. of the we sort talked fixed the the so the CBS to revenue. savings going be Stirling. that that’s freezer product introductions, going is expansion rate is costs new a driven last freezer, primarily rest significant again, million There I $X.X increased on gross cost At pretty of leverage first it’s side shipped going side, one to the both XX%-plus ASP quarter is we margin on the things, that of excess think significantly from of of the to target that the margin to but in in the some amount what come us and has drive a and talked of Stirling high about primarily about by So particular, by capacity which some we’ve be will CBS

so that from the there be get associated we example, also both driving won’t come But going things. to products. higher XX, lower is goods, the CBS. as purchasing, overall that going come Stirling, and be cost there. lower margin will although will of to lines will driven on to by XX be it’s for as introductions cost With base of steel for the a as going next going expansion the Stirling with It’s benefit the we based One be product out features gross the significant within margin the of that’s an product couple really ASPs benefit fixed CBS months the those to of of the Stirling new CBS. XX, that power primary driver the on expansion that have the the some respect So new on to BOM slightly at and is benefit leverage purchasing

tightened sort the that end a guidance. our could range We took of bit. low So to out. of guidance, the how works up we that’s at look With a hard respect the have

comments acquisition. seasonality range the the in was we the from business exactly QX QX particular, and expected leave with it the simply at just as that would QX, part in the made end respect conservative with to Sexton the contribution the of – felt by and in it freezer I increase to However, be we

Suraj Kalia

Thank you.

Mike Rice

Thanks, Suraj.

Operator

session. for our puts you on an Q&A Thank that to your questions. And end

Now Chairman I our turn it Rice. to would Mr. to CEO, over Mike like and

Mike Rice

a solutions working people our around the high and the I’m Nelson, the to or improving you, BioLife. indirect customers role that play their of in everyone your patients here and thanks serving also and built the saving lives and of proud commitment team We’ve Thank interest performance in here world. for

We’re results you. to sharing looking QX forward night. our Good with

Operator

with participation. your for BioLife. conference everyone today’s call Thank And you that concludes

disconnect. all now may You

BioLife Solutions (BLFS) 13 Aug 212021 Q2 Earnings call transcript