Cryoport(US:CYRX)2021-08-05 22:42Market Overview - 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]. Clinical Trials and Support - As of the end of Q2 2021, the company supported 561 clinical trials and seven commercial therapies, with expectations of up to 11 additional submissions for Cryoport-supported products in the second half of 2021[211]. - The number of clinical trials supported increased to 561, with 69 Phase III trials as of June 30, 2021, indicating growth in biopharmaceutical activities[260]. Acquisitions and Strategic Alliances - The acquisition of CRYOPDP expanded the company's global presence to 27 supply chain centers in 13 countries, enhancing its capabilities in temperature-controlled logistics solutions[224]. - The acquisition of MVE Biological Solutions strengthens the company's position in the biopharma/pharma markets and secures its supply of cryogenic shippers and biostorage equipment[225]. - The company aims to continue pursuing targeted acquisitions to enhance its market leadership and broaden its capabilities[217]. - The company has established strategic alliances with major logistics providers such as FedEx, DHL, and UPS to integrate its solutions into their services[215]. Revenue and Financial Performance - Total revenues increased by $46.8 million, or 498.5%, from $9.4 million to $56.2 million for the three months ended June 30, 2021, compared to the same period in 2020[237]. - Service revenues increased by $20.3 million, or 216.1%, from $9.4 million to $29.7 million for the three months ended June 30, 2021, driven by the acquisition of CRYOPDP[238]. - Product revenues were $26.5 million for the three months ended June 30, 2021, primarily due to the acquisition of MVE Biological Solutions[239]. - Revenue from the biopharma/pharma market increased by $36.9 million, or 431.0%, from $8.6 million to $45.5 million for the three months ended June 30, 2021[241]. - Total revenues increased by $90.3 million, or 471.3%, from $19.2 million to $109.5 million for the six months ended June 30, 2021, compared to the same period in 2020[256]. - Service revenues increased by $37.3 million, or 194.5%, from $19.2 million to $56.4 million for the six months ended June 30, 2021, driven by the acquisition of CRYOPDP[257]. - Product revenues were $53.0 million for the six months ended June 30, 2021, primarily due to the acquisition of MVE Biological Solutions[258]. Expenses and Margins - Gross margin for the three months ended June 30, 2021 was 45.2% of total revenues, compared to 54.6% for the same period in 2020[244]. - Selling, general and administrative expenses increased by $15.7 million, or 173.5%, compared to the first quarter of 2020, primarily due to acquisitions[248]. - Gross margin for the six months ended June 30, 2021 was 45.6% of total revenues, down from 54.2% for the same period in 2020[263]. - Selling, general and administrative expenses increased by $29.9 million, or 185.5%, compared to the same period in 2020, primarily due to acquisitions and infrastructure expansion[267]. Cash Flow and Investments - As of June 30, 2021, the company had cash and cash equivalents of $60.4 million and $289.1 million in short-term investments, with working capital of $373.6 million[280]. - Net cash used in investing activities was $246.3 million during the six months ended June 30, 2021, primarily due to the acquisition of CTSA and F-airGate and the purchase of short-term investments[282]. - Net cash provided by financing activities totaled $273.3 million during the six months ended June 30, 2021, mainly from net proceeds of $269.8 million from a public offering of common stock[283]. Future Outlook and Risks - The company recognizes potential need for additional capital to fund future acquisitions, which may involve equity and/or debt funding sources[284]. - Foreign exchange risk related to cash and cash equivalents of $18.1 million could result in declines of $0.9 million, $1.8 million, and $3.6 million under adverse changes of 5%, 10%, and 20% respectively[289].