Cryoport Revenue Continues to Climb, Reporting 53% Growth for the Quarter Ended December 31, 2016

Tailwind’s Take: this is a $2B market potentially and CYRX is the only pure play, fastest growing and best offering in the space. This could be a multi-year winner. 

IRVINE, Calif., March 13, 2017 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX, CYRXW), (“Cryoport” or the “Company”), the world’s leading cryogenic logistics company dedicated to the life sciences industry, today announced financial results for the three and nine-month periods ended December 31, 2016. The nine-month period ended December 31, 2016 constitutes the abridged fiscal year from April 1, 2016 to December 31, 2016, as a result of the Company changing its fiscal year end from March 31 to December 31.

Jerrell Shelton, Chief Executive Officer of Cryoport, stated, “We closed 2016 on a very positive note with momentum across all our biopharma, reproductive medicine and animal health markets during the quarter ended December 31, 2016. Revenue for the quarter was up 53% year-over-year, driven by a strong performance in the biopharma market which grew 58% year-over-year constituting 69% of our total revenue. This was the culmination of months of rapid progress and aggressive execution on our sales, marketing and supporting strategies, with 54 additional clinical trials secured during the nine-month period, including master service agreements with leading names in the regenerative medicine market.

“Our sales strategy continues to be focused on the regenerative medicine market as breakthrough scientific advancements in the development of cellular therapies have made cryogenic logistics support an increasingly necessary component to clinical trials and commercialization. We believe that cryogenic logistics is the only effective method of maintaining the safety and efficacy of biologic commodities during the logistics activities of transporting and storing commodities for clients and/or patients. Cryoport’s advanced real time monitoring and information technology gives clients and regulatory bodies assurance of the chain of condition and chain of custody of their commodities.

“Additionally, we believe that as therapies reach their respective commercialization phase and require global logistics support, demand for Cryoport services will grow substantially. Cryoport is the market leader in cryogenic logistics solutions for the life sciences industry. Our solutions are providing the most advanced technology, unrivalled in the industry, to deepen our global reach. Cryoport now manages global cryogenic logistics spanning over 100 countries, supported by our growing global network of strategic partners. We continued our development over these past nine months to further enhance our uniquely positioned ability to support the commercial launch strategies of our clients in the regenerative medicine space, which we expect to begin to materialize over the course of 2017.

“We are delighted to have such a strong foothold in the emerging regenerative medicine market, as well as the broader biopharma industry, as it is one of our core growth markets and one which we believe holds tremendous opportunity for Cryoport. We are grateful to have formed long-term relationships with a large number of clients of high caliber due to the effectiveness of our cold chain logistics solutions for the life sciences industry.  In 2017, we expect revenue growth to continue as we benefit from the contribution of the 129 clinical trials we currently support, notwithstanding any commercial launches of biopharma products, which have the potential to expedite our growth and add meaningfully to our bottom line.”

Market Highlights:

Biopharma

  • Biopharma revenue increased by 60% over the nine months ended December 31, 2016 compared to the same period in 2015
  • Added 89 new biopharma clients in the nine-months ended December 31, 2016, and 31 new biopharma clients in the quarter
  • To date, Cryoport is supporting 129 clinical trials, of which 18 are in Phase III, which shows continued advancement from the reporting period
  • Currently, we are in discussions with clients regarding several potential commercial support programs for regenerative therapies

Reproductive Medicine

  • The reproductive medicine market produced record results in 2016
  • Reproductive medicine revenue increased by 20% for the nine months ended December 31, 2016 compared to the same period in 2015
  • For the quarter ended December 31, 2016, overall reproductive medicine revenue increased 52% compared to the same quarter in 2015

Animal Health

  • Revenue from the animal health market was down 3% for the nine months ended December 31, 2016 compared to the same period in 2015
  • Animal health revenue for the three-month ended December 31, 2016 was up 23% compared to the same period in 2015
  • In January 2017, Cryoport was chosen by the Jackson Laboratory (JAX) to support its Cryopreservation Group and Necropsy Laboratory for its sites in Bar Harbor, Maine and Sacramento, California.  Cryoport’s reputation for reliability and safety were cited as key considerations for JAX to entrust Cryoport with its cryogenic logistics support requirements

Overall Financial Results:

  • Revenue increased 53% to $2.2 million and 42% to $6.1 million for the three and nine-month periods ended December 31, 2016, respectively, compared with the same periods in 2015. This growth was driven by an overall increase in the number of clients utilizing the Company’s solutions complimented by growth and frequency of shipments from current clients.
  • Gross margin for the three and nine-month periods ended December 31, 2016 was 42% and 41% respectively, compared to 26% and 30% for the same periods in 2015, driven by increased business volume and pricing adjustments.
  • Operating costs and expenses decreased by $120,000 for the three-month period December 31, 2016 and increased $1.2 million for the nine-month period ended December 31, 2016, compared with the same periods in 2015. This nine-month increase was primarily due to adjustments in salaries plus associated employee costs incurred to expand the sales and logistics forces, targeted marketing initiatives and increases in non-cash stock-based compensation expense.
  • Net loss for the three and nine-month periods ended December 31, 2016 were $4.3 million and $10.4 million, compared to $2.8 million and $7.1 million in the same three and nine-month periods in 2015. Net loss attributable to common stockholders for the three and nine-month periods ended December 31, 2016 were $4.3 million, or $0.25 per share, and $10.4 million, or $0.68 per share, compared to $3.0 million, or $0.42 per share, and $12.3 million, or $1.96 per share, in the same three and nine-month periods in 2015.
  • The Company reported $4.5 million in cash and cash equivalents as of December 31, 2016, compared to $2.8 million as of March 31, 2016.

Further information on Cryoport’s results are included on the attached condensed consolidated balance sheets and statements of operations, and a further explanation of Cryoport’s financial performance will be provided in Cryoport’s Transition Report on Form 10-K  for the transition period from April 1, 2016 to December 31, 2016, which will be filed with the Securities and Exchange Commission (“SEC”) today, March 13, 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.

Change in Fiscal Year

In September 2016, the board of directors elected to change the Company’s fiscal year end from March 31 to a new fiscal year end of December 31 to align Cryoport’s business calendar with that of the majority of its clients in the life sciences industry. As a result of the change, Cryoport’s quarterly reporting periods will be comprised of the three calendar months ending March 31, June 30, September 30, and December 31.

Conference Call

The Company will host a conference call at 4:30 pm ET today, March 13, 2017 to review its financial results and business outlook.  Participants should call 1-877-407-9716 (United States) or 1-201-493-6779 (International) and request the “Cryoport call.” A live audio webcast of the call will also be available on the Investor Relations section of the Company’s website at www.cryoport.com or at this link. Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.

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 March 16, 2017.  To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay pin number: 13656576.

About Cryoport, Inc.
Cryoport is the life sciences industry’s most trusted global provider of cold chain 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, such as: the expected growth in demand for Cryoport services; the materialization of the commercial launch strategies of our clients in the regenerative medicine space; our expected revenue growth in 2017; and the opportunity for growth in the animal health market resulting from shipments for Jackson Laboratory (JAX), 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 Transition Report on Form 10-K for the nine months ended December 31, 2016 to be 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.

Cryoport Inc. and Subsidiary

Consolidated Statements of Operations

 Three Months Ended
December 31, 

 Nine Months Ended
December 31, 

2016

2015

2016

2015

(unaudited)

(unaudited)

(unaudited)

Revenues

$      2,228,879

$     1,458,563

$       6,123,271

$       4,326,654

Cost of revenues

1,288,048

1,074,281

3,603,655

3,018,147

Gross margin

940,831

384,282

2,519,616

1,308,507

Operating costs and expenses:

General and administrative 

1,697,373

1,708,502

4,634,775

4,110,750

Sales and marketing 

1,142,213

1,126,870

3,573,204

2,908,750

Engineering and development 

103,149

227,765

453,628

405,785

Total operating costs and expenses

2,942,735

3,063,137

8,661,607

7,425,285

Loss from operations

(2,001,904)

(2,678,855)

(6,141,991)

(6,116,778)

Other (expense) income:

Interest expense

(17,675)

(79,946)

(58,222)

(984,748)

Warrant inducement and repricing expense

(2,265,434)

(4,195,252)

Other income (expense), net

1,470

(1,347)

(1,898)

(5,029)

Loss before provision for income taxes

(4,283,543)

(2,760,148)

(10,397,363)

(7,106,555)

Provision for income taxes

(311)

(305)

(5,673)

(3,625)

Net loss

(4,283,854)

(2,760,453)

(10,403,036)

(7,110,180)

Preferred stock benefical conversion charge

(4,474,348)

Undeclared cumulative preferred dividends

(239,389)

(687,267)

Net loss attributable to common stockholders

$   (4,283,854)

$  (2,999,842)

$   (10,403,036)

$   (12,271,795)

Net loss per share attributable to common stockholders – basic and diluted

$              (0.25)

$             (0.42)

$                (0.68)

$                (1.96)

Weighted average shares outstanding – basic and diluted

16,847,011

7,225,006

15,393,402

6,259,686

Cryoport Inc. and Subsidiary

Condensed Consolidated Balance Sheets

December 31,

March 31,

2016

2016

Current Assets:

Cash and cash equivalents

$      4,524,529

$     2,792,526

Accounts receivable, net

1,195,479

1,020,999

Inventories

89,499

69,801

Prepaid expenses and other current assets

286,919

248,729

Total current assets

6,096,426

4,132,055

Property and equipment, net

1,647,104

1,319,741

Intangible assets, net

5,000

8,581

Deposits

363,403

363,403

Total assets

$      8,111,933

$     5,823,780

Current liabilities:

Accounts payable and other accrued expenses

$      1,160,299

$     1,271,926

Accrued compensation and related expenses

419,034

508,754

Related party notes payable and accrued interest, net of discount

651,934

392,898

Total current liabilities

2,231,267

2,173,578

Deferred rent liability, net of current portion

200,264

Related party notes payable, net of current portion

554,275

Total liabilities

2,431,531

2,727,853

Total stockholders’ equity 

5,680,402

3,095,927

     Total liabilities and stockholders’ equity 

$      8,111,933

$     5,823,780

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cryoport-revenue-continues-to-climb-reporting-53-growth-for-the-quarter-ended-december-31-2016-300422739.html

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