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Cryoport(CYRX) - 2020 Q1 - Quarterly Report
CYRXCryoport(CYRX)2020-05-08 20:10
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Revenue Growth - Cryoport reported Q1 2020 revenue of 93millionfromNovartis′sKYMRIAH,asignificantincreasefrom93 million from Novartis's KYMRIAH, a significant increase from 45 million in Q1 2019, reflecting a growth of 106.67%[170] - Kite/Gilead reported Q1 2020 revenue of 140millionfromYESCARTA,upfrom140 million from YESCARTA, up from 96 million in Q1 2019, indicating a growth of 45.83%[170] - Revenues increased by 3.1millionor46.93.1 million or 46.9% to 9.8 million for the three months ended March 31, 2020, compared to 6.7millionforthesameperiodin2019[179]−Biopharmaceuticalrevenueroseby6.7 million for the same period in 2019[179] - Biopharmaceutical revenue rose by 1.9 million or 33.3% to 7.5millionforthethreemonthsendedMarch31,2020,drivenbyincreasedcustomerutilizationandclinicaltrials[179]ClinicalTrialsandMarketPresence−Thenumberofclinicaltrialssupportedincreasedto465asofMarch31,2020,upfrom383asofMarch31,2019,with29newtrialsaddedduringtheperiod[179]−AsofMarch31,2020,Novartishasqualifiedover230treatmentcentersacrossmorethan20countriesforKYMRIAH,showcasingtheglobalreachofitstherapies[170]−Cryoport′splatformsupportsthedevelopmentandcommercializationofcellandgenetherapies,includingCAR−Ttherapies,emphasizingitsroleintheregenerativemedicinemarket[168]StrategicInitiatives−Cryoport′sacquisitionofCryogenePartnersexpandeditsbiostoragecapabilities,providingacGMPcomplianttemperature−controlledsamplemanagementsolutionina21,000squarefootfacilityinHouston,Texas[163]−ThepartnershipwithLonzaaimstointegratelogisticsandbioservicessolutionswithmanufacturingservicestoimprovesupplychainefficiency[172]−Cryoport′slogisticssolutionssupportthethreelargestintegratorsglobally:FedEx,DHL,andUPS,enhancingitsmarketpresenceinthelifesciencesindustry[165]−ThecompanylaunchedAdvancedTherapyShippers™designedforregenerativemedicine,ensuringtraceabilityandminimizingcross−contaminationrisks[162]−Cryoport′stechnologyenablesreal−timemonitoringofshipments,providingadocumentedhistoryforregulatorycomplianceandqualityassurance[159]−ThecompanyhasestablishedstrategicalliancesunderitsComplianceUnifiedEcosystem™,enhancingitsmarketingreachinthelifesciencessector[164]FinancialPerformance−Grossmarginimprovedto53.87.5 million for the three months ended March 31, 2020, driven by increased customer utilization and clinical trials[179] Clinical Trials and Market Presence - The number of clinical trials supported increased to 465 as of March 31, 2020, up from 383 as of March 31, 2019, with 29 new trials added during the period[179] - As of March 31, 2020, Novartis has qualified over 230 treatment centers across more than 20 countries for KYMRIAH, showcasing the global reach of its therapies[170] - Cryoport's platform supports the development and commercialization of cell and gene therapies, including CAR-T therapies, emphasizing its role in the regenerative medicine market[168] Strategic Initiatives - Cryoport's acquisition of Cryogene Partners expanded its biostorage capabilities, providing a cGMP compliant temperature-controlled sample management solution in a 21,000 square foot facility in Houston, Texas[163] - The partnership with Lonza aims to integrate logistics and bioservices solutions with manufacturing services to improve supply chain efficiency[172] - Cryoport's logistics solutions support the three largest integrators globally: FedEx, DHL, and UPS, enhancing its market presence in the life sciences industry[165] - The company launched Advanced Therapy Shippers™ designed for regenerative medicine, ensuring traceability and minimizing cross-contamination risks[162] - Cryoport's technology enables real-time monitoring of shipments, providing a documented history for regulatory compliance and quality assurance[159] - The company has established strategic alliances under its Compliance Unified Ecosystem™, enhancing its marketing reach in the life sciences sector[164] Financial Performance - Gross margin improved to 53.8% for the three months ended March 31, 2020, compared to 51.9% for the same period in 2019, due to increased business volume and pricing adjustments[181] - General and administrative expenses increased by 1.3 million or 49.4% for the three months ended March 31, 2020, primarily due to higher wages and employee costs[182] - Engineering and development expenses surged by 1.2millionor253.91.2 million or 253.9% for the three months ended March 31, 2020, reflecting increased consulting and development costs[184] - Cash and cash equivalents stood at 50.6 million, with 46.8millioninshort−terminvestmentsandworkingcapitalof46.8 million in short-term investments and working capital of 98.0 million as of March 31, 2020[187] - Net cash used in investing activities was $1.5 million during the three months ended March 31, 2020, primarily for short-term investments and software development costs[189] Future Outlook - The company expects revenue to gradually ramp back up as COVID-19 restrictions are lifted, despite temporary impacts on revenue growth[178] - Management believes current cash and investments will satisfy operational and capital requirements for at least the next twelve months[192]