Cryoport(US:CYRX)2020-08-10 19:20Revenue Growth - Cryoport reported Q2 2020 revenue of $118 million from Novartis's KYMRIAH® compared to $58 million for Q2 2019, indicating a 103% year-over-year increase[195]. - Kite Pharmaceuticals reported Q1 2020 revenue of $140 million from YESCARTA® compared to $96 million for Q1 2019, reflecting a 46% increase[196]. - Revenues increased by $925,400 or 10.9% to $9.4 million for the three months ended June 30, 2020, compared to $8.5 million for the same period in 2019[210]. - Revenues increased by $4.0 million or 26.8% to $19.1 million for the six months ended June 30, 2020, compared to $15.1 million for the same period in 2019[221]. Biopharmaceutical Revenue - Biopharmaceutical revenue rose by $324,800 or 4.7% to $7.3 million, driven by an increase in the number of biopharmaceutical customers and clinical trials supported[212]. - Biopharmaceutical revenue rose by $2.2 million or 17.5% to $14.8 million, driven by an increase in the number of biopharmaceutical customers and clinical trials supported[221]. Clinical Trials and Clients - The company added approximately 12 new biopharma clients and 26 clinical trials during the three months ended June 30, 2020[210]. - The number of clinical trials supported increased to 491 as of June 30, 2020, compared to 413 as of June 30, 2019[212]. - The company added approximately 45 new biopharma clients and 55 clinical trials, increasing total supported clinical trials to 491 as of June 30, 2020[223]. Gross Margin - Gross margin improved to 54.6% of revenues for Q2 2020, up from 51.3% in Q2 2019, due to increased business volume and pricing adjustments[213]. - Gross margin improved to 54.2% of revenues for the six months ended June 30, 2020, up from 51.5% in the same period in 2019[224]. Expenses - General and administrative expenses surged by $2.5 million or 75.9% for Q2 2020, primarily due to consulting and legal services for acquisition-related activities[214]. - General and administrative expenses increased by $3.8 million or 63.9% due to acquisition-related activities and increased employee costs[225]. - Engineering and development expenses increased by $1.4 million or 259.8% for Q2 2020, reflecting investments in enhancing logistics solutions[217]. - Engineering and development expenses surged by $2.6 million or 257.0%, primarily due to consulting expenses aimed at enhancing logistics solutions[227]. Cash and Financing - Cash and cash equivalents stood at $44.3 million, with total working capital of $207.2 million as of June 30, 2020[231]. - Net cash used in investing activities was $119.6 million, mainly due to the purchase of short-term investments and software development costs[233]. - Net cash provided by financing activities totaled $117.0 million, primarily from the issuance of convertible senior notes[234]. Strategic Alliances and Logistics - Cryoport's acquisition of Cryogene expanded its biostorage capabilities, providing a cGMP compliant temperature-controlled sample management solution from a 21,000 square foot facility in Houston, Texas[188]. - The company supports the three largest integrators in the world—FedEx, DHL, and UPS—with advanced cryogenic logistics solutions[190]. - Cryoport's Advanced Therapy Shippers™ are designed for human-based therapies, ensuring traceability and minimizing cross-contamination risks[187]. - Cryoport's logistics management platform, Cryoportal®, provides real-time monitoring and a fully documented history of shipments, enhancing regulatory compliance[186]. - The company has established strategic alliances with key players in the logistics and life sciences industries to enhance service integration[189]. - Cryoport's solutions are utilized for shipping and storage of various life sciences commodities, including CAR-T therapies, vaccines, and stem cells[194]. Future Outlook - The company anticipates continued growth driven by the acceleration of clinical trials and commercialization of regenerative medicine therapies globally[188]. - Interest expense rose by $64,300 for Q2 2020 due to the issuance of 3% convertible senior notes in May 2020[218]. - Other income, net increased by $371,300 for Q2 2020, driven by gains on equity securities and investment income[219].