Full Press Release Details
Cryoport Reports First Quarter 2024
NASHVILLE, Tennessee, May 7,
2024, - Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences, today announced
financial results for the three months ended March 31 (Q1), 2024. Jerrell Shelton, CEO of Cryoport, commented, "For the first quarter,
we continued to experience a difficult environment globally. Our quarterly results were disappointing, particularly for our Life Sciences
Products. However, as stated when we initially provided our annual guidance, we anticipate our revenue will progressively improve throughout
the year and we maintain our full year revenue guidance of $242 to $252 million.
"Our Life Sciences Services
revenue growth for the first quarter was softer than anticipated, increasing 3% year-over-year. We believe there is a bright spot however,
as the Cell & Gene Therapy market seems to be gaining some momentum again: three (3) new therapies have been approved this year to
date; three (3) existing commercial therapies were approved to move to an earlier line of treatment; and two (2) therapies were approved
to expand their label or geographic territory. With the expected revenue ramps of existing and new commercial therapies, we should see
revenue acceleration from our Cell & Gene Therapy clients over the remainder of the year. Our outlook regarding regulatory approvals
for the rest of the year is positive as we believe there are potentially five (5) new therapy approvals and three (3) additional label
or geographic expansions for other currently approved therapies.
"First quarter Life Sciences
Products revenue was lower than in prior years, largely due to decreased demand for MVE Biological Solutions' (MVE) cryogenic systems.
This was attributable to a continued slowdown in capital equipment investment that began last year. Although global in nature, the most
severe pullback in demand continues to be in China. While we expect MVE's cryogenic system sales to be challenged throughout the
remainder of the year as biotech funding, government budgets, and academic budgets are constrained, we want to remind investors that even
in this difficult climate, MVE continues to produce positive cash flow for our company. MVE is the leading manufacturer of cryogenic systems
worldwide and we are confident in the long-term prospects of our Life Sciences Products business. When demand normalizes, as we anticipate
it will, we believe that we will benefit from our position as the global leader in this space.
"Based on our clients'
forecasts and fueled by the aforementioned industry indicators for Cell & Gene Therapies, we continue to invest to expand our support
of these life-saving treatments at scale. However, in light of the current macroeconomic challenges and the impact on our financial results,
we are implementing a number of initiatives to drive toward positive adjusted EBITDA and cash flow in the near term. These include improved
alignment of our global organization, reduction in our work force, leveraging lower cost shared services centers, refining and reprioritizing
planned initiatives, and delays in capital spending as a result of reprioritization, all of which we expect should positively impact our
results of operations for the second half of 2024," concluded Mr. Shelton.
In tabular form, Q1 2024 revenue
compared to Q1 2023 was as follows:
| Cryoport, Inc. and Subsidiaries | ||||||||||||
| Revenue | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| (in thousands) | 2024 | 2023 | % Change | |||||||||
| Life Sciences Services | $ | 36,786 | $ | 35,836 | 3% | |||||||
| BioLogistics Solutions | 33,258 | 32,604 | 2% | |||||||||
| BioStorage/BioServices | 3,528 | 3,232 | 9% | |||||||||
| Life Sciences Products | $ | 17,806 | $ | 26,981 | -34% | |||||||
| Total Revenue | $ | 54,592 | $ | 62,817 | -13% |
Revenue from the support of commercial
Cell & Gene Therapies increased 9% year-over-year with two new therapies receiving approval during Q1 2024, bringing our current total
commercial count to fourteen (14) as of March 31, 2024. Subsequent to quarter-end, in April the United States Food and Drug Administration
(FDA) approved ImmunityBio's Anktiva for BCG-unresponsive non-muscle invasive bladder cancer, which is a Cryoport-supported therapy. This
brings our number of commercial therapies supported to fifteen (15) as of May 7, 2024.
As of March 31, 2024, Cryoport
supported a total of 675 global clinical trials, a net increase of 23 clinical trials over March 31, 2023 with 77 of these clinical trials
in Phase 3 . The number of trials by phase and region are as follows:
During the remainder of 2024, we anticipate
up to an additional sixteen (16) application filings, and as stated earlier, five (5) new therapy approvals and an additional three (3)
label/geographic expansions.
Financial Highlights
equivalents, and Short-Term Investments
reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
The Company is reiterating its full
year 2024 revenue guidance of $242 - $252 million and continues to expect revenue to improve progressively throughout the year. The Company's
2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that
are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures,
and the effects of foreign currency fluctuations, as well as the other factors described in the Company's filings with the Securities
and Exchange Commission ("SEC"), including in the "Risk Factors" section of its most recently filed periodic reports
on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.
Additional Information
Further information on Cryoport's
financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations
of Cryoport's financial performance are provided in the Company's Quarterly Report on Form 10-Q for the three months ended
March 31, 2024, which is expected to be filed with the SEC on May 7, 2024. Additionally, the full report will be available in the SEC
Filings section of the Investor Relations section of Cryoport's website at www.cryoportinc.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In
addition to the earnings release, a document titled "Cryoport First Quarter 2024 in Review", providing a review of Cryoport's
financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Tuesday, May 7, 2024. The document
is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host
a conference call at 5:00 p.m. ET on May 7, 2024. The conference call will be in the format of a questions and answers session and will
address any queries investors have regarding the Company's reported results. A slide deck will accompany the call.
Conference Call Information
| Date: | Tuesday, May 7, 2024 |
| Time: | 5:00 p.m. ET |
| Dial-in numbers: | 1-888-886-7786 (U.S.), 1-416-764-8658 (International) |
| Confirmation code: | Request the "Cryoport Call" or Conference ID: 15315763 |
| Live webcast: | Investor Relations' section at www.cryoportinc.com or click here . Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software. |
The questions and answers call
will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the
Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here.
A dial-in replay of the call will also be available to those interested, until May 14, 2024. To access the replay, dial 1-844-512-2921
(United States) or 1-412-317-6671 (International) and enter replay entry code: 15315763#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX),
is a global leader in supply chain solutions for cell & gene therapies that enable manufacturers, contract manufacturers (CDMO's),
contract research organizations (CRO's), developers, and researchers to carry out their respective business with certainty. We
provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and
solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services,
and cryogenic systems, we are "Enabling the Future of MedicineTM" worldwide, through our innovative systems,
compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located
in Nashville, Tennessee, is complimented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom,
France, the Netherlands, Portugal, Germany, Japan, Australia, India, and China.
For more information, visit www.cryoportinc.com or
follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.twitter.com/cryoport
Forward-Looking Statements
Statements in this press release
which are not purely historical, including statements regarding the Company'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. These forward-looking statements include, but are not limited to, those related to the Company's industry, business,
long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook
and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in
the markets in which the Company operates, the Company's plans and expectations regarding the launch of new products and services, such
as the expected timing and benefits of such products and services launches, the Company's expectations about future benefits of
its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved
with respect to the products of the Company's clients. Forward-looking statements also include those related to the Company's anticipation
that its revenue will progressively improve throughout the year, including anticipated acceleration of revenue from the Company's