IRVINE, Calif., Nov. 14, 2016 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX, CYRXW), the world's leading cryogenic logistics company committed to providing innovative, reliable and efficient logistics solutions to the life sciences industry, today announced financial results for the three and six-month periods ended September 30, 2016.
"Revenues were up 38% year-over-year, driven by strong performance in our biopharma market which grew 64%," commented Jerrell Shelton, Chief Executive Officer of Cryoport. "We continue to improve our positioning and make great strides and in the biopharma market with new client wins and further commodity support expansion within our current client base. Our clients in the biopharma market have now entrusted us with supporting over 100 clinical trials. Sixteen of these trials are in Phase III, generally, the last phase before commercialization. This strengthening profile translates into significant embedded revenue opportunities for Cryoport as these trials progress toward commercialization.
"Our biopharma market's robust growth, driven by the rapid development and maturation of the regenerative medicine market, will play a primary role in fueling our expansion going forward. We are of the view that the specialized logistics requirements and complexity of assurances and quality demands in the regenerative medicine space is beyond what any other single company, outside Cryoport, can provide. Cryoport's ability to integrate its cloud based Cryoportal™ Logistics Management System, with other platforms for manufacturing, patient/HUB services, storage and transportation is unique. We are now in late stage discussions with several clients, who are in Phase III of clinical trials, to support the commercialization of their respective therapies, which if successful, are expected to contribute significant revenue streams to Cryoport and further solidify our position as the market leader for temperature controlled logistics solutions in the life sciences industry."
Mr. Shelton continued, "In addition to these developments, we continue to introduce new technological advancements, such as our SmartPak IITM Condition Monitoring System, to provide our clients best-of-class solutions to monitor, protect and provide vital information regarding their commodities shipped using our advanced technologies and comprehensive services. We continue to advance the science behind our logistics solutions for life sciences and recently completed a novel and comprehensive study, with support from KCAS Bioanalytical and Biomarker Services in Kansas City, MO and Heat Biologics in Durham, NC, to evaluate the impact of temperature and transport packaging at deep frozen temperatures on critical biomarkers and cell-therapy cancer vaccines. The results of this study have been well received by our clients and the scientific community and provide unbiased scientific backing that we believe will further accelerate adoption of our advanced temperature controlled solutions and enable us to continue to broaden our services to life sciences industry market."
Mr. Shelton concluded, "The total reproductive medicine market was relatively flat this quarter due to an ongoing shift away from international market shipments, due to unfavorable legislation in some Asian countries. In the rest of the world, however, we were able to grow revenue and remain healthy. Looking ahead, we expect continued growth in revenue performance from the U.S. market due to increasing clinic adoption of our services; while the Asian portion of the international market continues to remain uncertain.
"Our animal health market continues to feel the impact of reduced activity from one of our larger clients; however, we view this as temporary and continue to see a significant opportunity to add new clients and for growth in the animal health market.
"Our advanced cryogenic logistics solutions are unmatched and we are now recognized as the 'gold standard' for the shipment of invaluable biological materials. We continue to validate the effectiveness of our solutions through extensive testing and logistics support to multiple major biopharma companies, some of which are household names, and we continue to demonstrate our ability to win new clients and clinical trials in the fast-growth biopharma market. We are proud of the progress we have made to date, but it is just the beginning. For the first time ever, we are positioned to grow our revenue at an increasing rate as our diversified client base grows by adding lifesaving therapies to the market and ground breaking biologic research marches on in its progress."
Biopharma revenue increased by 64% in the second quarter of Fiscal Year 2017 compared to the prior year quarter
Added 30 new biopharma clients in the second quarter of Fiscal Year 2017
To date supporting over 100 clinical trials in total, of which 16 are in Phase III
Completed publication quality scientific study that provides, for the first time, data on the impact on bioanalytical and cell based commodities shipped frozen by different modalities
Completed first integration of the Cryoportal™ Logistics Management platform with Database Integrations, Inc.'s Integrated Cell Therapy Automated Network (iCAN) scheduling platform
Reproductive medicine revenue increased by 3% for the second fiscal quarter compared to the same quarter last year, led by a 28% increase in the U.S. market. This was offset by a decline in international revenue of 19%. International revenue continues to be impacted by the restriction of reproductive tourism in certain Asian countries.
Revenue from the animal health market was down 11% in the second quarter compared to the same quarter last year, due to a reduction in shipping volume from one of the Company's larger clients.
Revenue increased 38% to $2 million and 36% to $3.9 million for the three and six-month periods ended September 30, 2016, respectively, compared with the same periods in the prior year. This growth was driven by an overall increase in the number of clients utilizing the Company's solutions complemented by growth and frequency from current clients.
Gross margin for the three and six-month periods ended September 30, 2016 was 40% and 41% respectively, compared to 30% and 32% for the same three and six-month periods in the prior year, driven by increased business volume, pricing adjustments and efficiencies.
Operating costs and expenses increased by $670,000 and $1.4 million for the three and six month periods ended September 30, 2016, respectively. This increase is primarily due to a change in strategic direction which included increases in salaries and associated employee costs incurred to expand the sales and logistics force, increases in non-cash stock-based compensation expense, as well as targeted marketing initiatives.
Net loss for the three and six-month periods ended September 30, 2016 were $2.2 million and $6.1 million, compared to $2.4 million and $4.3 million in the same three and six-month periods in the prior year. Net loss attributable to common stockholders for the three and six-month periods ended September 30, 2016 were $2.2 million, or $0.14 per share, and $6.1 million, or $0.42 per share, compared to $2.7 million, or $0.41 per share, and $9.3 million, or $1.61 per share, in the same three and six-month periods in the prior year.
The Company reported $2.6 million in cash and cash equivalents as of September 30, 2016, compared to $2.8 million as of Fiscal Year ended March 31, 2016. Subsequent to the quarter end, the Company received approximately $3.7 million in gross proceeds from warrants tendered and exercised in connection with its previously announced warrant exchange offer completed October 28, 2016.
Further information on Cryoport's results are included on the attached unaudited condensed consolidated balance sheets and statements of operations, and a further explanation of Cryoport's financial performance will be provided in Cryoport's quarterly report on Form 10-Q for the three and six months ended September 30, 2016, which will be filed with the SEC today, November 14, 2016. 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, and September 30. Following the filing of this Quarterly Report on Form 10-Q, the Company's next periodic report filed will be filed on Form 10-K for the transition period from April 1, 2016 to December 31, 2016.
The Company will host a conference call at 4:30 pm ET today, November 14, 2016 to review its financial results and business outlook. Participants should call 1-888-293-6960 (United States) or 1-719-325-2315 (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 November 21, 2016. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay pin number: 3601839.
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.
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 use of the proceeds from the Offer, 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 annual report on Form 10-K for the year ended March 31, 2016. 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
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Cryoport Inc. and Subsidiary
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