Full Press Release Details
Cryoport Reports Second Quarter 2024
NASHVILLE, Tennessee,
August 6, 2024, - Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences,
today announced financial results for its second quarter (Q2) and first half (H1) of 2024.
Jerrell Shelton, CEO of Cryoport,
commented, "During our second quarter, we saw continued progress across all businesses as all revenue lines improved sequentially.
Our revenue from the support of commercial Cell & Gene Therapies stood out, with an increase of 51% year-over-year and 20% sequentially,
reflecting a strong demand for these life-saving treatment therapies.
"MVE Biological Solutions,
our primary Life Sciences Products business, showed a modest sequential improvement for the quarter, as we continued to experience overall
lower demand compared to previous years. We anticipate continued softness in demand in our Life Sciences Products business, as customers
continue to delay capital expenditures and leverage their existing footprint of cryogenic systems. We have executed cost management initiatives
across our manufacturing facilities and aligned the direct workforce with the current market demand to help enable continuing positive
cash flow contribution. Longer term, we expect demand to improve as excess freezer capacity is absorbed.
"Based on our anticipated
sequential revenue growth in our Life Sciences Services, coupled with the expected continued softness in demand for our Life Sciences
Products, we are revising our full year 2024 revenue guidance to the range of $225 million to $235 million, with revenue expected to continue
to improve progressively during the course of the remainder of this year.
"As previously disclosed,
we have been implementing cost reduction and capital realignment measures as well as pacing the build-out of our global capabilities and
infrastructure to be more in line with the current market environment. We anticipate our cost reduction initiatives will be fully implemented
by the end of 2024 and will positively impact Cryoport's financial results for the second half of 2024 with approximately $22 million
in annualized cost savings for 2025, driving the Company towards its goal of profitable growth, as well as a return to positive adjusted
"We believe our cost reduction
and capital realignment plan will enable us to continue to successfully service our customers and execute on our key growth initiatives
as we optimize our operational efficiencies by reducing operating costs across our global organization. We intend to drive profitable
growth in our key markets, enhance operating performance, and generate positive cash flow. Examples of some of the cost reduction actions
taken to date are outlined below:
Life Sciences Services
Life Sciences Products
"We remain confident in a
broad-based market recovery for the life sciences industry except for China, which we think will remain challenged through 2025. Our current
full year 2024 revenue outlook includes expected sequential improvements across our Life Sciences Services offerings driven in part by
the ramp of clinical and commercial Cell & Gene therapies we currently support, as well as anticipated new product and service launches
later this year that will further diversify and enhance our revenue streams. We therefore expect a return to year-over-year revenue growth
for Cryoport in the second half of 2024," concluded Mr. Shelton.
In tabular form, Q2 2024 and
H1 2024 revenue compared to Q2 2023 and H1 2023, respectively, were as follows:
Cryoport, Inc. and Subsidiaries
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| (in thousands) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||
| Life Sciences Services | $ | 38,040 | $ | 35,204 | 8 | % | $ | 74,826 | $ | 71,040 | 5 | % | ||||||||||||
| BioLogistics Solutions | 34,517 | 32,003 | 8 | % | 67,775 | 64,608 | 5 | % | ||||||||||||||||
| BioStorage/BioServices | 3,523 | 3,201 | 10 | % | 7,051 | 6,432 | 10 | % | ||||||||||||||||
| Life Sciences Products | $ | 19,557 | $ | 21,817 | -10 | % | $ | 37,363 | $ | 48,798 | -23 | % | ||||||||||||
| Total Revenue | $ | 57,597 | $ | 57,021 | 1 | % | $ | 112,189 | $ | 119,838 | -6 | % |
BioStorage/Bioservices revenue
continues to grow double digits year-over-year as we continue to add new customers into our global network and as more allogeneic clinical
and commercial therapies progress in the number of patients treated.
Revenue from commercial approved
Cell & Gene therapies increased 51% year-over-year. One new therapy received U.S. Food and Drug Administration (FDA) approval during
Q2 2024, one new therapy was approved by the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan in July, and last week the FDA
approved the first cell therapy targeting a solid tumor. This brings our current total commercial count to seventeen (17) as of August
1, 2024. The FDA approval in the second quarter was ImmunityBio's Anktiva for BCG-unresponsive non-muscle invasive bladder cancer. The
FDA approval on August 1st, 2024 was Adaptimmune's Tecelra for the treatment of adults with unresectable or metastatic
synovial sarcoma. The therapy approved by the PMDA in July was SanBio's AKUUGO, an allogeneic treatment for the
indication of improving chronic motor paralysis resulting from traumatic brain injury. Moreover, in the second quarter two other
previously approved Cryoport supported therapies received new approvals to move to earlier lines of treatment, which increased the addressable
market for both therapies. Separately, two other Cryoport supported therapies received expanded label approvals in the second quarter.
As of June 30, 2024, Cryoport
supported a total of 684 global clinical trials, a net increase of 16 clinical trials over June 30, 2023, with 76 of these clinical trials
in Phase 3 . The number of trials by phase and region are as follows:
Supported Clinical Trials by Phase
| June 30, | ||||||||||||
| Clinical Trials | 2022 | 2023 | 2024 | |||||||||
| Phase 1 | 260 | 273 | 286 | |||||||||
| Phase 2 | 285 | 313 | 322 | |||||||||
| Phase 3 | 81 | 82 | 76 | |||||||||
| Total | 626 | 668 | 684 |
Cryoport Supported Clinical Trials by Region
| June 30, | ||||||||||||
| Clinical Trials | 2022 | 2023 | 2024 | |||||||||
| Americas | 488 | 515 | 525 | |||||||||
| EMEA | 104 | 109 | 114 | |||||||||
| APAC | 34 | 44 | 45 | |||||||||
| Total | 626 | 668 | 684 |
quarter five (5) BLA/MAA filings occurred, one BLA filing occurred in July. For the remainder of 2024, we anticipate up to an additional
seven (7) application filings, two (2) new therapy approvals and an additional one (1) approval for label/geographic expansion.
BioLogistics Solutions growth
in the second quarter also benefited from the ramp in temperature-controlled logistics revenue outside of the Cell & Gene market,
including biosimilars, antibodies, API's and a growing number of Direct-to-Patient shipments.
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.
We now expect full year 2024 revenue
in the range of $225 million - $235 million. 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
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 June 30, 2024, which is expected to be filed with the SEC on August 6, 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.
IMPORTANT INFORMATION:
In addition to the earnings release, a document titled "Cryoport Second 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, August 6, 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 August 6, 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, August 6, 2024 |
| Time: | 5:00 p.m. ET |
| Dial-in numbers: | 1-800-717-1738 (U.S.), 1-646-307-1865 (International) |
| Confirmation code: | Request the "Cryoport Call" or Conference ID: 1157932 |
| 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 August 13, 2024. To access the replay, dial 1-844-512-2921
(United States) or 1-412-317-6671 (International) and enter replay entry code: 1157932#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq:
CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables
manufacturers, contract manufacturers (CDMO's), contract research organizations (CRO's), developers, and researchers to carry out their
respective business with products and services that are designed to derisk services and provide 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