Tailwinds’ Take: CYRX is in a sweet spot and will be for at least the next couple of years as they will continue to gain market share and revenue growth is set to go hyperbolic. The stock will likely remain choppy as it’s made a huge move and doesn’t have good value unless you look out at 2019. But, a great quarter and we are still on board.
IRVINE, Calif., Aug. 8, 2017 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX, CYRXW), the world’s leading cryogenic logistics company dedicated to the life sciences industry, today announced financial results for the three and six-month periods ended June 30, 2017.
“As the most advanced solutions provider of temperature controlled logistics serving the life sciences, Cryoport is setting the ‘gold standard’ for reproductive medicine, animal health and biopharma, particularly within the dynamic regenerative medicine market as we position our Company for significant revenue growth for years to come,” commented Jerrell Shelton, Cryoport’s Chief Executive Officer. “Recently Novartis selected us to support its impending commercial launch of CAR T-cell therapy, CTL019/CD19, for the treatment of relapsed and refractory acute lymphoblastic leukemia (ALL). Our multiyear agreement marks the first commercial contract in the regenerative medicine market and is a testament to our advanced temperature controlled logistics solutions and expertise.
“Commercial agreements such as these,” he continued, “will undoubtedly grow and as we provide our vital services, these types of relationships have the potential to drive substantial revenue growth for Cryoport. We are a transformative temperature controlled logistics solution provider serving a transformative biopharma industry, which, we think, has enormous growth ahead of it.
“So, it should be clear that our sales and marketing strategy is, therefore, largely centered on securing clinical trial logistics solution agreements with biopharma companies, which position Cryoport to expand its service agreements as therapies move through the clinical trial phases and move to commercial viability. During the second quarter, we secured an additional 33 new clinical trials with new and existing biopharma companies bringing the total number of trials supported by Cryoport to 172, compared with 90 this time last year. These trials are a strong foundation from which we will grow our business. It is a special time as the regenerative medicine industry is experiencing higher levels of activity, with several treatments approaching potential commercialization. We are in a solid position to scale our business as we continue to strengthen our reputation in the life sciences as the ‘go to’ for advanced, dependable temperature controlled logistics solutions.”
Mr. Shelton concluded, “Biopharma revenue now accounts for 76% of our total revenue and is clearly our largest growth market. However, our animal health and reproductive medicine revenue were both up 21% for the six-month period and continue to provide steady cash flow. We are proud of the achievements of our people, individually, and our team, collectively, as we continue to demonstrate our ability to successfully leverage the industry-wide growth in the life sciences and to secure revenue opportunities that build Cryoport and value for its shareholders.”
- Biopharma revenue increased by 69% in the second quarter of 2017 compared to the prior year quarter
- 19 new Biopharma clients and 33 new clinical trial programs were added to Cryoport’s robust pipeline during the second quarter of 2017
- 172 clinical trials are now being supported by Cryoport, with 17 in Phase III
- Signed multi-year agreement with Novartis to provide cryogenic logistics support for Novartis’ commercialization of its CTL019/CD19 CAR-T cell therapy, expected to commence later in 2017
- Reproductive Medicine revenue increased by 15% for the second quarter compared to the same quarter last year, led by a 57% increase in the U.S. market, which was partially offset by a decline in international revenue of 33%. International revenue continues to be impacted by the restriction of medical (reproductive) tourism and changing regulations in certain countries.
- Revenue from the Animal Health market was up 15% in the second quarter compared to the same quarter last year.
Overall Financial Results:
- Revenue increased 52% to $2.9 million and 62% to $5.6 million for the three and six-month periods ended June 30, 2017, respectively, compared with the same periods in the prior year.
- Gross margin for the three and six-month periods ended June 30, 2017 was 48% and 47%, respectively, compared to 41% and 39% for the same three and six-month periods in the prior year, driven by increased business volume, pricing adjustments and efficiencies of scale.
- Operating costs and expenses increased by $496,000 and $313,000 for the three and six month periods ended June 30, 2017, respectively.
- GAAP net loss for the three and six-month periods ended June 30, 2017 was $1.9 million and $3.6 million, respectively, down 53% and 45% compared to $3.9 million and $6.6 million in the same three and six-month periods in the prior year. GAAP net loss attributable to common stockholders for the three and six-month periods ended June 30, 2017 was $1.9 million, or $0.08 per share, and $3.6 million, or $0.18 per share, compared with $3.9 million, or $0.28 per share, and $6.7 million, or $0.54 per share, in the same three and six-month periods in the prior year.
- Adjusted EBITDA for the three and six-month periods ended June 30, 2017 was ($890,000)and ($1.8 million), respectively, a reduction of 22% and 39% compared to ($1.1 million) and ($2.9 million) in the same three and six-month periods in the prior year.
- The Company has no debt and reported $12.9 million in cash and cash equivalents as of June 30, 2017, compared to $4.5 million as of Fiscal Year ended December 31, 2016. The increase in cash and cash equivalents includes net proceeds of $11.4 million received from an underwritten public offering on March 31, 2017.
- Subsequent to quarter end, in July 2017 we received proceeds of $1.8 million from the exercise of $3.00 warrants issued in connection with a tender offer carried out by the Company in 2016.
Further information on Cryoport’s results are included on the attached unaudited condensed consolidated balance sheets and statements of operations, and a further explanation of Cryoport’s financial performance will be provided in Cryoport’s quarterly report on Form 10-Q for the three and six-month periods ended June 30, 2017, which will be filed with the Securities and Exchange Commission (“SEC”) tomorrow, August 9, 2017. 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.