Cryoport Revenue Grows 59% for Second Quarter 2018; 73% in Biopharma

IRVINE, Calif., Aug. 9, 2018 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) (NASDAQ: CYRXW) ("Cryoport" or the "Company"), the world's leading temperature-controlled logistics company dedicated to the life sciences industry, today announced financial results for the three and six-month periods ended June 30, 2018.

"This was another strong quarter for Cryoport, as revenues from clinical support programs and the ongoing ramp from our commercial agreements with Gilead and Novartis, drove 59% revenue growth year over year," Jerrell Shelton, Chief Executive Officer of Cryoport, commented. "These commercial ramps will continue to gain pace as additional points of care become certified and patient flows increase. Furthermore, with both Yescarta™ and Kymriah™ advancing toward expected European approvals later in the third quarter, we can expect to see a continued expansion of our services under our agreements with Gilead and Novartis as they bring their cell therapies to a wider range of patients in critical need of effective treatment option.  We also anticipate additional filings from both Gilead and Novartis in the near future as both companies expand their therapies to support the global population.

"To support anticipated growth, we are investing in building out the Company's global infrastructure. We continue to make significant progress expanding and improving our competencies across every area of our business. Of note, we have moved quickly to open two new, state-of-the-art Cryoport Global Logistics Centres in New Jersey and The Netherlands. Both facilities are operational and supporting customers with official openings scheduled for the month of October.  These investments in our global infrastructure are just a part of the work we are doing to support the expected needs of our clients as their therapies are approved in Europe, the United States and, soon, Asia.

"To date in 2018, five BLA or EMA filings have occurred and we expect another four BLA or EMA filings to occur before year end. The demand we are experiencing from existing customers reaches beyond the U.S. and Europe to the Asia Pacific region, where we are also currently in various stages of planning to further expand our global footprint. We can clearly see the pathway to accelerated revenue growth ahead of us and are working diligently to make sure we are well-positioned to accommodate this anticipated ramp of our client's therapies.

"As the biopharma market is our highest growth market opportunity, it is our focus; however, we are also excelling in serving two other very important markets. Both the Reproductive Medicine and Animal Health markets embrace our technology and expertise. Customer reviews from these markets clearly position us as the leader in each of these respective markets.  We remain committed to investing in both the Reproductive Medicine and Animal Health markets as to drive overall longer-term revenue growth," concluded Mr. Shelton.

Market Highlights:

Biopharma

• Biopharma revenue increased by 73% in the three months ended June 30, 2018 compared to the same period in 2017.
• 22 new biopharma clinical trials were added, on a net basis, in the three-months ended June 30, 2018.
• Cryoport is supporting a net total of 258 clinical trials compared with 172 as of the three-months ended June 30, 2017. The number of trials in Phase III grew from 17 as of the three-months ended June 30, 2017 to 34 during the quarter ended June 30, 2018.
• Continued to support the commercial ramp of Novartis' Kymriah™ and Gilead-Kite's Yescarta™. Revenue from the commercial agreements accounted for approximately $446,000 in the quarter.
• Two new state of the art Cryoport Logistics Centres, located in New Jersey and the Netherlands
• Partnered with World Courier, a part of AmerisourceBergen, to integrate Cryoport's full suite of temperature-controlled solutions into World Courier's global network.

Animal Health

• Revenue from the Animal Health market increased 7% for the three months ended June 30, 2018 compared to the same period in 2017.

Reproductive Medicine

• Reproductive Medicine revenue increased by 17% for the three months ended June 30, 2018 compared to the same period in 2017, primarily driven by continuing domestic demand.

Financial Results:

• Revenue increased 59% to $4.6 million and 54% to $8.7 million for the three and six-month periods ended June 30, 2018, respectively, compared with the same periods in the prior year.
• Gross margin for the three and six-month periods ended June 30, 2018 was 54% for both periods, compared with 48% and 47% for the same three and six-month periods, respectively, in the prior year, driven by increased business volume and economies of scale.
• As a result of investments in the build out of infrastructure, which includes adding new competencies and services, operating costs and expenses increased by $1.7 million, and $2.7 million, for the three and six-month periods ended June 30, 2018, respectively.
• Adjusted EBITDA for the three and six-month periods ended June 30, 2018 was ($0.8 million) and ($1.4 million), respectively, compared with ($0.9 million) and ($1.8 million) in the same three and six-month periods in the prior year.
• The Company has no debt and reported $20.0 million in cash and cash equivalents as of June 30, 2018, compared with $15.0 million as of December 31, 2017. The increase in cash and cash equivalents includes net proceeds of $4.6 million received from a warrant tender offer during the six-month period ended June 30, 2018.

Further information on Cryoport's financial results is included on the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport's financial performance is provided in Cryoport's annual report on Form 10-Q for the three and six-month periods ended June 30, 2018, which will be filed with the Securities and Exchange Commission ("SEC") on August 9, 2018. The full report will be available on the SEC Filings section of the Investor Relations section of the Company's website at www.cryoport.com.

An archive of the webcast will be available approximately three hours after completion of the live event and will be accessible on the Investor Relations section of the Company's website at www.cryoport.com for a limited time. To access the replay of the webcast, please follow this link. A dial-in replay of the call will also be available to those interested until August 16, 2018.  To access the replay, dial 1 (844) 512-2921 (United States) or 1 (412) 317-6671 (International) and enter replay pin number: 13681779.

About Cryoport, Inc.
Cryoport is the life sciences industry's most trusted global provider of temperature-controlled logistics solutions for temperature-sensitive life sciences commodities, serving the biopharmaceutical market with leading-edge logistics solutions for biologic materials, such as regenerative medicine, including immunotherapies, stem cells and CAR-T cells. Cryoport's solutions are used by points-of-care, CRO's, central laboratories, pharmaceutical companies, manufacturers, university researchers et al; as well as the reproductive medicine market, primarily in IVF and surrogacy; and the animal health market, primarily in the areas of vaccines and reproduction. Cryoport's proprietary Cryoport Express^® Shippers, Cryoportal™ Logistics Management Platform, leading-edge SmartPak II™ Condition Monitoring System and geo-sensing technology, paired with unparalleled cold chain logistics expertise and 24/7 client support, make Cryoport the end-to-end cold chain logistics partner that the industry trusts.

Cryoport is dedicated to

• simplifying global cold chain logistics through innovative technology, unmatched monitoring and data capture and support, including consulting;
• delivering the most advanced temperature-controlled logistics solutions for the life sciences industry; and
• providing vital information that provides peace of mind throughout the life of each logistics process.

For more information, visit www.cryoport.com. Sign up to follow @cryoport on Twitter at www.twitter.com/cryoport.

Forward Looking Statements
Statements in this news release which are not purely historical, including statements regarding Cryoport, Inc.'s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic conditions, trends in the products markets, variations in the Company's cash flow, market acceptance risks, and technical development risks. The Company's business could be affected by a number of other factors, including the risk factors listed from time to time in the Company's SEC reports including, but not limited to, the Company's 10-K for the year ended December 31, 2017 filed with the SEC. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Cryoport, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-GAAP financial measures as defined in Regulation G of the Securities Exchange Act of 1934.  These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company's performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes the following non-GAAP financial measure, adjusted EBITDA, to provide a useful measure of the Company's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company's ongoing operating performance. Further, management and the Board of Directors utilize these non-GAAP financial measures to gain a better understanding of the Company's comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company's GAAP financials, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company's ongoing operating results, including results of operations, against investor and analyst financial models, identifying trends in the Company's underlying business and performing related trend analyses, and they provide a better understanding of how management plans and measures the Company's underlying business.

 

 

 

 

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SOURCE Cryoport, Inc.