In the news release, Cryoport Revenue Grows 47% for First
Quarter 2020, issued 07-May-2020 by
Cryoport, Inc. over PR Newswire, we are advised by the company that
in the Consolidated Balance Sheets, at the end of the release,
operating lease liabilities, net, should be $5,568,845; Total liabilities should be
$12,818,304 and Total liabilities and
stockholders' equity should be $140,123,251. The complete, corrected release
follows:
Cryoport Revenue Grows 47% for First Quarter 2020 Revenue from
commercial therapies increased 110% over the prior year 29 clinical
trials added, now supporting 465 clinical trials in Regenerative
Medicine market
NASHVILLE, Tenn., May 7, 2020 /PRNewswire/ -- Cryoport, Inc.
(NASDAQ: CYRX) (NASDAQ: CYRXW) ("Cryoport"), a global leader in
life sciences solutions, today announced financial results for the
three-month period ended March 31,
2020.
"We reported revenue of $9.8
million for the First Quarter of 2020, an increase of 47%
from the First Quarter of 2019," said Jerrell Shelton, Chief Executive Officer of
Cryoport. "This was driven largely by record revenue from our
commercial agreements supporting Gilead's YESCARTA® and
Novartis' KYMRIAH® which contributed $2.9 million to the First Quarter of 2020,
representing an increase of 110% compared with the First Quarter of
2019. In the first quarter, we experienced minimal disruption of
our commercial portfolio resulting from the COVID-19 pandemic and
are working closely with our partners to ensure eligible patients
continue to have access to these life-saving therapies.
"In April, Gilead's Kite Pharma renewed its agreement with
Cryoport, which cover its entire portfolio of therapies in
development as well as YESCARTA®. The ongoing rollouts
of both YESCARTA® and KYMRIAH® to patients in
the Americas, EMEA and APAC are expected to drive a continued ramp
in activity related to our agreements supporting these commercial
products. Revenue from our agreement with bluebird bio to support
its commercial launch of ZYNTEGLO™ is expected to commence in the
second half of 2020."
"Our revenue growth in the First Quarter was also attributable
to Cryogene, our Houston based
Bioservices operation, which contributed revenue of $1.3 million. Cryogene specializes in the
long-term secure storage of biological specimens, materials and
samples for research purposes and is expected to continue to
operate with some, but relatively minimal, impact from the COVID-19
pandemic.
"We are very pleased to report strong clinical trial growth for
the quarter as we added a net total of 29 clinical trials, bringing
the total number of clinical trials supported by Cryoport to a
record 465.
"As providers of mission-critical logistics solutions to the
healthcare industry, we are actively monitoring the spread of
COVID-19 and continue to operate our Global Logistics Center
Network with minimal impact on our ability to conduct day-to-day
operations for our life sciences clients. While a meaningful number
of the clinical trials we support have been suspended temporarily,
none of these trials, to our knowledge, have been terminated as a
result of COVID-19. These suspensions did impact our clinical trial
revenue in late First Quarter and that impact continues into the
Second Quarter of 2020. For trials that are ongoing, we are
supporting our clients' needs effectively and with business
continuity plans in place to limit disruption and minimize any
potential risk to our employees. We believe the structural shift
that is underway in the biopharma market toward large-molecule
treatments plays to our strengths as these therapies require much
more rigorous, specialized and temperature sensitive logistics and
storage solutions that meet exacting requirements. We think these
requirements and our ever-increasing competency in tailored
information technology will ensure the continued medium- and
long-term expansion of our business despite the near-term headwinds
we are experiencing from COVID-19.
Two Cryoport supported therapies filed for commercial approval
during the First Quarter of 2020, and a third filed subsequent to
the quarter end. We continue to expect a further six Cryoport
supported MAA's and BLA's to be filed in 2020, based on internal
information and forecasts from the Alliance for Regenerative
Medicine, although the timing of some of these may be impacted by
COVID-19.
"We are the life sciences industry leader in
temperature-controlled logistics and biostorage of life-saving
advanced cell and gene therapies, vaccines and other fragile and
high value commodities, providing essential and highly specialized
solutions to the Biopharma market. With research into COVID-19
moving at a relatively rapid pace, we have been selected to support
six clinical trials for potential COVID-19 treatments and vaccines.
We are proud to use our expertise to contribute to the fight
against the spread of COVID-19 and are working closely with our
clients to assure the security of their products as they advance
the trials of these much-needed therapies.
"The Reproductive Medicine market was impacted by COVID-19
imposed restrictions and, consequently, for the First Quarter of
2020 contributed revenue of $0.8
million. Upon the lifting of these restrictions, we will
resume our services and believe we will be well-positioned to drive
revenue growth in this market. One example that gives us confidence
is our new multi-year agreement with Inception Fertility, LLC, a
Houston-based company which
operates The Prelude Network, the largest and fastest growing
network of fertility centers in the United States.
Mr. Shelton concluded by saying, "Our strong balance sheet and
liquidity position, along with long-term agreements with an
exceptionally loyal client base and successfully implemented
business mitigation plans, gives us confidence in our ability to
navigate the uncertainties caused by the pandemic. We are confident
in our future and continue to execute on our plans to support the
anticipated expansion in demand for our cutting-edge supply chain
solutions. This entails building out our infrastructure, including
software, competencies, and further expanding our Global Supply
Chain Network, with new Global Supply Chain Centers in Morris Plains, New Jersey and Houston, Texas. We also continue
to evaluate potential M&A opportunities that are
complementary, accretive and expand our solutions offerings and
total addressable market."
Market Highlights:
Global Logistics Solutions
Biopharma
- Biopharma revenue increased by 33% in the three-months ended
March 31, 2020 compared to the same
period in 2019.
- Commercial revenue increased $1.5
million, or 110%, to $2.9
million for the three months ended March 31, 2020, as compared to $1.4 million for the same period in 2019.
- Cryoport is now supporting a net total of 465 clinical trials
as of March 31, 2020 compared with
383 as of March 31, 2019. The number
of trials in Phase III grew to 62, compared with 49 as of
March 31, 2019. Of the 465 total
trials Cryoport supports, 384 are in the Americas, 65 in EMEA
(Europe, the Middle East and Africa) and 16 in APAC (Asia Pacific). This compares to 338 in the
Americas and 45 in EMEA as of March 31,
2019.
- Gilead Sciences, Inc.'s subsidiary, Kite Pharma ("Kite"),
renewed its agreement with Cryoport for an additional three years
with evergreen provisions. The agreement covers all therapies in
Kite's portfolio, including the continued commercial rollout of its
lead chimeric antigen receptor (CAR) T-cell therapy for the
treatment of aggressive Non-Hodgkin Lymphoma, YESCARTA®,
all ongoing clinical programs as well as any new commercial product
launches.
- Selected by Cellular Biomedicine Group, Inc. (Nasdaq: CBMG), a
developer of proprietary cell therapies for the treatment of cancer
and degenerative diseases, to support two of its immuno-oncology
and stem cell clinical trials in China.
Animal Health
- Animal Health revenue remained flat at $0.2 million for both the three months ended
March 31, 2020 and the three-months
ended March 31, 2019; however, we are
building a strong pipeline of potential clients and expect to grow
Animal Health revenue in 2020.
Reproductive Medicine
- As a result of the impact of COVID-19, Reproductive Medicine
revenue remained relatively flat at $0.8
million for both the three months ended March 31, 2020 and the three months ended
March 31, 2019.
- Cryoport entered into a multi-year agreement with Inception
Fertility, LLC, a Houston-based
company which operates The Prelude Network, the largest and fastest
growing network of fertility centers in the United States.
Global Bioservices
- Bioservices revenue was $1.3
million for the three-month period ended March 31, 2020 resulting from the acquisition of
Cryogene consummated in May
2019.
Financial Highlights:
- Revenue increased 47% to $9.8
million for the three-month period ended March 31, 2020, compared with the same period in
the prior year.
- Excluding revenue from the Cryogene acquisition in May of 2019,
revenue grew 28% for the three-month period ended March 31, 2020, compared with the same period in
the prior year.
- Gross margin for the three-months ended March 31, 2020 was 54%, compared to 52% for the
same period in the prior year.
- Operating costs and expenses increased by $3.2 million for the three-month period ended
March 31, 2020, compared to the same
period in the prior year, as a result of continued investments in
software development, which will provide a platform for continuing
the scaling of our business; engineering initiatives, which
includes the development of revolutionary packaging and monitoring
and communications resources and the build out competencies in
support of advancing our infrastructure and the growing demand for
Cryoport's solutions.
- Adjusted EBITDA for the three-month period ended March 31, 2020 was ($1.7
million), compared with ($0.4
million) in the same period in the prior year.
- Net loss for the three-month period ended March 31, 2020 was $3.9
million, or $0.11 per share,
compared to a net loss of $2.4
million, or $0.08 per share in
the same period in 2019.
- Cryoport reported $97.4 million
in cash, cash equivalents and short-term investments as of
March 31, 2020, compared with
$94.3 million as of December 31, 2019.
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 are provided in Cryoport's annual report on
Form 10-Q for the three months ended March
31, 2020, which will be filed with the Securities and
Exchange Commission ("SEC") on or about May
8, 2020. The full report will be available on the SEC
Filings section of the Investor Relations section of Cryoport's
website at www.cryoport.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: A document titled "Cryoport First
Quarter 2020 in Review", providing a review of Cryoport's recent
financial and operational performance and a general business
update, will be issued at 4:05 pm ET on
Thursday, May 7, 2020. The document is designed to be read
by investors before the questions and answers conference call and
can be accessed at
http://ir.cryoport.com/events-and-presentations.
Cryoport management will host a conference call at 5:00 pm ET on May 7,
2020. 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.
Conference Call Information
Date:
|
May 7,
2020
|
Time:
|
5:00 p.m.
ET
|
Dial-in
numbers:
|
+1 (855) 327-6837
(U.S.), +1 (631) 891-4304 (International)
|
Confirmation
code:
|
Request the "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.
|
Questions and answers will be recorded and available
approximately three hours after completion of the live event on the
Investor Relations section of the Company's website at
www.cryoport.comfor a limited time. To access the replay of the
questions and answers, please follow this link. A dial-in replay of
the call will also be available, to those interested, until
May 14, 2020. To access the replay,
dial +1 (844) 512-2921 (United
States) or +1 (412) 317-6671 (International) and enter
replay pin number: 10009027.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX) is redefining logistics for the
life sciences industry by providing a platform of
temperature-controlled solutions, serving the Biopharma,
Reproductive Medicine, and Animal Health markets. Our mission
is to support life and health on earth by providing reliable and
comprehensive solutions for the life sciences industry through our
advanced technologies, Global Supply Chain Network and dedicated
scientists, technicians and supporting team of professionals.
Through its purpose-built, proprietary Cryoport Express®
Shippers; Cryoportal® information technology; validated
Global Logistics Centers; smart and sustainable
temperature-controlled logistics; and biostorage/biobanking
services, Cryoport serves clients in life sciences research,
clinical trials, and product commercialization. We support
life-saving advanced cell and gene therapies and deliver vaccines,
protein producing materials, and IVF materials in over 100
countries around the world. For more information, visit
www.cryoport.com or follow @cryoport on Twitter at
www.twitter.com/cryoport for live updates.
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, 2019 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.
Cryoport Inc. and
Subsidiaries
|
Consolidated
Statements of Operations
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2020
|
|
2019
|
|
Revenues
|
|
|
$
9,774,075
|
|
$
6,652,912
|
|
Cost of
revenues
|
|
4,516,111
|
|
3,199,011
|
|
Gross
margin
|
|
5,257,964
|
|
3,453,901
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
General and
administrative
|
|
4,030,042
|
|
2,696,859
|
|
|
Sales and
marketing
|
|
3,081,427
|
|
2,407,992
|
|
|
Engineering and
development
|
|
1,732,726
|
|
489,596
|
|
Total operating costs
and expenses
|
|
8,844,195
|
|
5,594,447
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(3,586,231)
|
|
(2,140,546)
|
|
Other income
(expense):
|
|
|
|
|
|
|
Interest
expense
|
|
(2,451)
|
|
(338,728)
|
|
|
Other income
(expense), net
|
|
(321,186)
|
|
91,472
|
|
Loss before provision
for income taxes
|
|
(3,909,868)
|
|
(2,387,802)
|
|
Benefit (provision)
for income taxes
|
|
(33,025)
|
|
900
|
|
Net
loss
|
|
|
$
(3,942,893)
|
|
$
(2,386,902)
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted
|
|
$
(0.11)
|
|
$
(0.08)
|
|
Weighted average
shares outstanding - basic and diluted
|
|
37,548,549
|
|
30,441,996
|
|
Cryoport Inc. and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
(unaudited)
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
50,622,454
|
|
$
47,234,770
|
|
Short-term
investments
|
|
46,809,959
|
|
47,060,786
|
|
Accounts receivable,
net
|
|
6,139,538
|
|
7,098,191
|
|
Inventories
|
|
464,588
|
|
473,961
|
|
Prepaid expenses and
other current assets
|
|
1,002,189
|
|
1,096,855
|
|
|
Total current
assets
|
|
105,038,728
|
|
102,964,563
|
Property and
equipment, net
|
|
12,459,703
|
|
11,833,057
|
Operating lease
right-of-use assets
|
|
6,068,616
|
|
4,460,319
|
Intangible assets,
net
|
|
5,073,182
|
|
5,177,578
|
Goodwill
|
|
|
10,999,722
|
|
10,999,722
|
Deposits
|
|
|
483,300
|
|
437,299
|
|
|
Total
assets
|
|
$
140,123,251
|
|
$
135,872,538
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
other accrued expenses
|
|
$
3,171,821
|
|
$
2,498,375
|
|
Accrued compensation
and related expenses
|
|
2,671,473
|
|
1,903,720
|
|
Deferred
revenue
|
|
341,150
|
|
367,867
|
|
Operating lease
liabilities
|
|
813,574
|
|
665,901
|
|
Finance lease
liabilities
|
|
72,207
|
|
24,617
|
|
|
Total current
liabilities
|
|
7,070,225
|
|
5,460,480
|
|
Operating lease
liabilities, net
|
|
5,568,845
|
|
4,101,236
|
|
Finance lease
liabilities, net
|
|
149,297
|
|
8,539
|
|
Deferred tax
liability
|
|
29,937
|
|
20,935
|
|
|
Total
liabilities
|
|
12,818,304
|
|
9,591,190
|
|
|
Total stockholders'
equity
|
|
127,304,947
|
|
126,281,348
|
|
|
Total liabilities and
stockholders' equity
|
|
$
140,123,251
|
|
$
135,872,538
|
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 Cryoport's performance, management uses
certain non-GAAP financial measures to supplement financial
statements prepared under GAAP. Management believes that the
following non-GAAP financial measures, adjusted net loss and
adjusted EBITDA, provide a useful measure of Cryoport's operating
results, a meaningful comparison with historical results and with
the results of other companies, and insight into Cryoport's ongoing
operating performance. Further, management and the Board of
Directors utilize these non-GAAP financial measures to gain a
better understanding of Cryoport'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 Cryoport's GAAP
financials, are useful to investors because they provide a basis
for meaningful period-to-period comparisons of Cryoport's ongoing
operating results, including results of operations, against
investor and analyst financial models, identifying trends in
Cryoport's underlying business and performing related trend
analyses, and they provide a better understanding of how management
plans and measures Cryoport's underlying business.
Cryoport Inc. and
Subsidiaries
|
Adjusted EBITDA
Reconciliation
|
(unaudited)
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
2020
|
|
2019
|
|
GAAP net
loss
|
$
(3,942,893)
|
|
$
(2,386,902)
|
|
|
Non-GAAP adjustments
to net loss:
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
824,429
|
|
300,565
|
|
|
|
Interest (income)
expense, net
|
(196,184)
|
|
301,968
|
|
|
|
Stock-based
compensation expense
|
1,620,378
|
|
1,413,735
|
|
|
|
Income
taxes
|
33,025
|
|
(900)
|
|
Adjusted
EBITDA
|
$
(1,661,245)
|
|
$
(371,534)
|
|
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SOURCE Cryoport, Inc.