Cryoport(US:CYRX)2021-05-06 21:11Market Growth and Trends - The global cell and gene therapy (C>) market was valued at approximately $4.2 billion in 2019 and is projected to grow to over $33.1 billion by 2024[210]. - The biopharma/pharma market has over 1,200 global clinical trials underway in 2021, highlighting the growing demand for temperature-controlled supply chain solutions[228]. Company Performance and Financials - Total revenues increased by $43.5 million, or 445.2%, from $9.8 million to $53.3 million for the three months ended March 31, 2021, compared to the same period in 2020[236]. - Service revenues rose by $17.0 million, or 173.8%, from $9.8 million to $26.8 million for the three months ended March 31, 2021, driven by the acquisition of CRYOPDP[237]. - Product revenues were $26.5 million for the three months ended March 31, 2021, primarily due to the acquisition of MVE Biological Solutions[238]. - Revenue from the biopharma/pharma market increased by $33.6 million, or 382.5%, from $8.8 million to $42.4 million for the three months ended March 31, 2021[240]. - Revenues in the reproductive medicine market increased by $1.1 million, or 148.4%, from $0.8 million to $1.9 million for the three months ended March 31, 2021[242]. - Gross margin for the three months ended March 31, 2021, was 46.1% of total revenues, compared to 53.8% for the same period in 2020[243]. - Organic revenue increased by $3.5 million, or 35.3%, to $13.2 million for the three months ended March 31, 2021[236]. - Adjusted EBITDA for the three months ended March 31, 2021, was $6.978 million, compared to a loss of $1.770 million in the same period in 2020[258]. Operational Developments - As of the end of Q1 2021, the company supported 543 clinical trials and seven commercial therapies, with expectations for up to 21 additional C>s to file for regulatory approval in 2021[211]. - The number of clinical trials supported increased to 543, with 69 Phase III trials as of March 31, 2021[240]. - The company expanded its global presence to a network of 27 supply chain centers in 13 countries following the acquisition of CRYOPDP in October 2020[224]. - The acquisition of MVE Biological Solutions enhances the company's capabilities in cryobiological storage and transportation, securing supply for the growing C> market[225]. - The company has established strategic alliances with major logistics providers, including FedEx, DHL, and UPS, to integrate advanced cryogenic logistics solutions[215]. - The Cryoportal Logistics Management Platform provides comprehensive shipment management, including near real-time tracking and regulatory compliance[220]. - The Chain of Compliance® solution introduced in 2018 sets a new industry standard for traceability in the C> market[221]. - The company is focused on continuous innovation to develop products that address unmet needs in the global supply chain of the C> market[213]. Expenses and Financial Management - Selling, general and administrative expenses increased by $14.3 million, or 200.7%, compared to the first quarter of 2020, primarily due to acquisitions[247]. - Engineering and development expenses increased by $2.6 million, or 148.4%, for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to consulting and development costs[249]. - Interest expense rose by $1.2 million for the three months ended March 31, 2021, compared to the same period in 2020, attributed to interest on convertible senior notes[250]. - The provision for income taxes increased by $1.0 million for the three months ended March 31, 2021, with an effective tax rate of negative 41.7% for U.S. earnings[252]. Cash Flow and Capital Management - As of March 31, 2021, the company had cash and cash equivalents of $85.5 million and short-term investments of $267.7 million, with working capital of $381.9 million[259]. - Net cash used in investing activities was $215.4 million during the three months ended March 31, 2021, primarily due to the purchase of short-term investments[261]. - Net cash provided by financing activities totaled $271.4 million during the three months ended March 31, 2021, mainly from net proceeds of $269.8 million from a public offering[262]. - The company recognizes potential need for additional capital to fund operations and acquisitions until sustained profitable operations are achieved[263]. - Foreign exchange risk related to cash and cash equivalents as of March 31, 2021, indicates that a 5%, 10%, and 20% adverse change would result in declines of $0.8 million, $1.5 million, and $3.1 million, respectively[268]. Impact of COVID-19 - The company continues to monitor the evolving situation caused by the COVID-19 pandemic, which has temporarily impacted revenue growth[234].