Full Press Release Details
Cryoport Reports 56% Revenue
Growth for Fiscal Year Ended December 31, 2017
Cryoport added 85 new biopharma trials
Cryoport now supports a total of 214
trials with 26 Phase III clinical trials
IRVINE, California, March 6, 2018 - Cryoport, Inc. (NASDAQ:
CYRX) (NASDAQ: CYRXW) ("Cryoport" or the "Company"), the global leader in temperature-controlled logistics
dedicated to the life sciences industry, today announced financial results for the three and twelve-month periods ended December
Jerrell Shelton, Chief Executive Officer
of Cryoport, commented, "2017 was an inflection point for our Company, as strong momentum in the biopharma market drove a
year-over-year total revenue growth of 56%. We improved systems, added strength to our bench' of personnel and entered
into long-term commercial logistics agreements supporting Gilead's Kite Pharma (YescartaTM) and Novartis (KymriahTM),
the first FDA-approved CAR-T therapies to be commercialized. We believe our agreements supporting these first-to-market, high-profile
and ground-breaking immunotherapies further cement our market leading position and reputation in the global biopharma market. As
Kymriah and Yescarta are ramped to full commercialization, they are expected to drive significant revenue growth
for Cryoport as commercial demand for these therapies is answered and accelerates.
"Cryoport's biopharma revenue
increased 63%, contributing 76% of total revenue, for the fourth quarter of 2017, compared to the same period in 2016, with clinical
and early stage commercial programs providing the primary catalysts for our rapid expansion. In 2017, we reported a net increase
of 85 clinical trials that we support as many of the industry's leading and most innovative biopharma companies have integrated
our unrivalled cold-chain logistics solutions into their collection and distribution processes and consider Cryoport's logistics
solutions to be essential to their cell-based regenerative immunotherapies such
as CAR T-cell therapies and other regenerative therapies such as allogenic stem cell therapies.
"The regenerative medicine market continues to generate
increased investment, with $7.5 billion raised in 2017, compared with $4.2 Billion in 2016, according to The Alliance for Regenerative
Medicine (ARM) located in Washington, DC. Furthermore, we anticipate the potential of an additional 5-7 Cryoport supported new
BLA/EMA filings in the next 12 months, increasing from our previous estimate of 2-4. We, therefore, expect Cryoport's position
as the logistical backbone of the regenerative medicine industry to strengthen, accelerate and grow in both the near and long-term.
"Our technologically advanced logistics
solutions and first-in-class reputation across the life sciences industry also drove new client agreements and improved revenue
growth in our animal health and reproductive medicine markets throughout the year. In the fourth quarter of 2017, our 62% revenue
growth in the animal health market compared to the same period in 2016 was primarily driven by a new client headquartered in Germany.
In reproductive medicine, our United States market remains robust and, as a matter of priority, for the present, we continue to
direct our sales and marketing efforts for our CryostorkSM solutions toward U.S. clients. Both animal health and reproductive
medicine are consistent and growing sources of revenue and we plan to continue to expand our footprint in these markets throughout
2018," concluded Mr. Shelton.
Reproductive Medicine
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-K for the twelve
and three-month periods ended December 31, 2017, which will be filed with the Securities and Exchange Commission ("SEC")
on March 8, 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.
Earnings Conference Call Information
| Date: | Tuesday, March 6, 2018 |
| Time: | 4:30 p.m. EST |
| Dial-in numbers: | +1 (877) 407-9716 (U.S.) or +1 (201) 493-6779 (International) |
| Confirmation code: | Request "Cryoport Call" |
| Live webcast: | Investor Relations' section 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 13, 2018. To access the replay, dial 1 (844) 512-2921 (United
States) or 1 (412) 317-6671 (International) and enter replay pin number: 13676420.
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:
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.
Todd Fromer/Elizabeth Barker
Cryoport Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
| Three Months Ended December 31, | Years Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2016 | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||
| Revenues | $ | 3,322,000 | $ | 2,228,879 | $ | 11,954,267 | $ | 7,678,816 | $ | 6,123,271 | ||||||||||
| Cost of revenues | 1,608,750 | 1,288,048 | 5,987,834 | 4,577,393 | 3,603,655 | |||||||||||||||
| Gross margin | 1,713,250 | 940,831 | 5,966,433 | 3,101,423 | 2,519,616 | |||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||
| General and administrative | 2,031,446 | 1,697,373 | 7,420,837 | 6,449,196 | 4,634,775 | |||||||||||||||
| Sales and marketing | 1,572,664 | 1,142,213 | 5,232,406 | 4,820,230 | 3,573,204 | |||||||||||||||
| Research and development | 380,315 | 103,149 | 1,205,692 | 598,106 | 453,628 | |||||||||||||||
| Total operating costs and expenses | 3,984,425 | 2,942,735 | 13,858,935 | 11,867,532 | 8,661,607 | |||||||||||||||
| Loss from operations | (2,271,175 | ) | (2,001,904 | ) | (7,892,502 | ) | (8,766,109 | ) | (6,141,991 | ) | ||||||||||
| Other (expense) income: | ||||||||||||||||||||
| Interest expense | - | (17,675 | ) | (15,693 | ) | (139,416 | ) | (58,222 | ) | |||||||||||
| Warrant repricing expense | - | (2,265,434 | ) | - | (4,195,252 | ) | (4,195,252 | ) | ||||||||||||
| Other income (expense), net | 2,418 | 1,470 | 14,337 | (6,770 | ) | (1,898 | ) | |||||||||||||
| Loss before provision for income taxes | (2,268,757 | ) | (4,283,543 | ) | (7,893,858 | ) | (13,107,547 | ) | (10,397,363 | ) | ||||||||||
| Provision for income taxes | (912 | ) | (311 | ) | (5,143 | ) | (5,673 | ) | (5,673 | ) | ||||||||||
| Net loss | (2,269,669 | ) | (4,283,854 | ) | (7,899,001 | ) | (13,113,220 | ) | (10,403,036 | ) | ||||||||||
| Preferred stock beneficial conversion charge | - | - | - | - | - | |||||||||||||||
| Undeclared cumulative preferred dividends | - | - | - | (75,460 | ) | - | ||||||||||||||
| Net loss attributable to common stockholders | $ | (2,269,669 | ) | $ | (4,283,854 | ) | $ | (7,899,001 | ) | $ | (13,188,680 | ) | $ | (10,403,036 | ) | |||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.09 | ) | $ | (0.25 | ) | $ | (0.34 | ) | $ | (0.93 | ) | $ | (0.68 | ) | |||||
| Weighted average shares outstanding - basic and diluted | 25,545,645 | 16,847,011 | 22,963,382 | 14,220,977 | 15,393,402 |
Cryoport Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 15,042,189 | $ | 4,524,529 | ||||
| Accounts receivable, net | 1,625,476 | 1,195,479 | ||||||
| Inventories | 114,796 | 89,499 | ||||||
| Prepaid expenses and other current assets | 516,427 | 286,919 | ||||||
| Total current assets | 17,298,888 | 6,096,426 | ||||||
| Property and equipment, net | 2,511,174 | 1,647,104 | ||||||
| Intangible assets, net | 90,646 | 5,000 | ||||||
| Deposits | 363,403 | 363,403 | ||||||
| Total assets | $ | 20,264,111 | $ | 8,111,933 | ||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 1,259,629 | $ | 1,160,299 | ||||
| Accrued compensation and related expenses | 925,514 | 419,034 | ||||||
| Related party notes payable and accrued interest, net of discount | - | 651,934 | ||||||
| Total current liabilities | 2,185,143 | 2,231,267 | ||||||
| Deferred rent liability | 192,202 | 200,264 | ||||||
| Total liabilities | 2,377,345 | 2,431,531 | ||||||
| Total stockholders' equity | 17,886,766 | 5,680,402 | ||||||
| Total liabilities and stockholders' equity | $ | 20,264,111 | $ | 8,111,933 |
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.
Cryoport Inc. and Subsidiaries
Adjusted EBITDA Reconciliation
| Three Months Ended December 31, | Years Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2016 | ||||||||||||||||
| GAAP net loss | $ | (2,269,669 | ) | $ | (4,283,854 | ) | $ | (7,899,001 | ) | $ | (13,113,220 | ) | $ | (10,403,036 | ) | |||||
| Non-GAAP adjustments to net loss: | ||||||||||||||||||||
| Depreciation and amortization expense | 172,851 | 102,681 | 664,831 | 374,202 | 301,297 | |||||||||||||||
| Interest expense | - | 17,675 | 15,693 | 139,416 | 58,222 | |||||||||||||||
| Stock-based compensation expense | 1,017,923 | 780,010 | 3,547,781 | 3,117,946 | 2,329,003 | |||||||||||||||
| Warrant repricing expense | - | 2,265,434 | - | 4,195,252 | 4,195,252 | |||||||||||||||
| Income taxes | (912 | ) | 311 | 5,143 | 5,673 | 5,673 | ||||||||||||||
| Adjusted EBITDA | $ | (1,079,807 | ) | $ | (1,117,743 | ) | $ | (3,665,553 | ) | $ | (5,280,731 | ) | $ | (3,513,589 | ) |