Cryoport(US:CYRX)2020-11-06 22:19Revenue Growth - Cryoport reported Q3 2020 revenue of $122 million from Novartis's KYMRIAH® compared to $79 million for Q3 2019, reflecting a 54% year-over-year increase[220]. - Kite Pharmaceuticals generated $138 million in Q3 2020 revenue from YESCARTA®, down from $156 million in Q2 2020[221]. - Revenues increased by $1.6 million or 16.6% to $11.2 million for the three months ended September 30, 2020, compared to $9.6 million for the same period in 2019[234]. - Biopharmaceutical revenue rose by $953,200 or 12.8% to $8.4 million, driven by an increase in the number of biopharmaceutical customers and clinical trials supported[235]. - Revenues increased by $5.6 million or 22.8% to $30.3 million for the nine months ended September 30, 2020, driven by increased biopharmaceutical customer utilization and clinical trials supported[244]. - Biopharmaceutical revenue rose by $3.2 million or 15.7% to $23.2 million for the nine months ended September 30, 2020, with 84 new biopharma clients added[244]. Client and Trial Expansion - As of September 30, 2020, Novartis has qualified 260 treatment centers in over 26 countries for KYMRIAH®[220]. - Kite Pharmaceuticals had 180 certified centers authorized to treat patients globally as of Q3 2020[221]. - The company added approximately 34 new biopharma clients and 26 clinical trials during the three months ended September 30, 2020, bringing the total to 517 clinical trials[235]. - The number of clinical trials supported increased to 517 as of September 30, 2020, compared to 425 trials supported as of September 30, 2019[245]. Financial Performance - Gross margin improved to 54.2% of revenues for the three months ended September 30, 2020, up from 48.3% in the same period in 2019[238]. - Gross margin improved to 54.2% of revenues for the nine months ended September 30, 2020, up from 50.3% in the same period in 2019, due to increased business volume and pricing adjustments[248]. - The net loss for the three months ended September 30, 2020, was $11.4 million, a decrease of $1.1 million or 8.4% compared to the net loss of $12.5 million in the same period in 2019[234]. - General and administrative expenses increased by $1.4 million or 15.1% due to consulting and legal services related to strategic initiatives and increased employee costs[239]. - General and administrative expenses rose by $5.2 million or 34.1% for the nine months ended September 30, 2020, primarily due to consulting and legal services related to strategic initiatives[249]. - Interest expense increased by $561,200 for the nine months ended September 30, 2020, due to the issuance of 3% senior convertible notes in May 2020[252]. Operational Developments - 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[213]. - The company supports three largest integrators globally, including FedEx, DHL, and UPS, enhancing its logistics solutions for the life sciences industry[215]. - Cryoport's Advanced Therapy Shippers™ were launched to ensure traceability and minimize contamination risks for human-based therapies[212]. - Cryoport's logistics management platform, Cryoportal®, provides real-time monitoring and compliance documentation for shipments[211]. - The company aims to redefine logistics in life sciences by integrating temperature-controlled logistics, bioservices, and end-product fulfillment[218]. - Bluebird bio is expected to treat its first commercial patients in Germany in Q4 2020, supported by Cryoport's logistics solutions[222]. Market Performance - Revenues in the reproductive medicine market surged by $453,300 or 61.6% to $1.2 million, attributed to the resumption of operations in fertility clinics[236]. - Global Bioservices revenue increased by $178,500 or 15.3% to $1.3 million, driven by new client onboarding[236]. - Global Bioservices revenue was $3.9 million for the first nine months of 2020, attributed to the acquisition of the Cryogene business in May 2019[246]. - Cost of revenues rose by $160,600 or 3.2% to $5.1 million, mainly due to increased freight charges from higher shipment volumes[238]. Cash Position - The company had cash and cash equivalents of $162.0 million and $41.0 million in short-term investments as of September 30, 2020[254]. - Net cash provided by financing activities totaled $119.1 million during the nine months ended September 30, 2020, primarily from the issuance of convertible senior notes[259]. Expense Management - Sales and marketing expenses decreased by $2.3 million or 38.2%, primarily due to a reduction in stock compensation expense[240]. - Engineering and development expenses increased by $3.3 million or 124.3% for the nine months ended September 30, 2020, compared to the same period in 2019, primarily due to a $3.1 million increase in consulting expenses[251].