Cryoport, a cryogenic logistics company dedicated to the life sciences industry, announced financial results for the three- and nine-month periods ended September 30, 2017.
"We are pleased with the strong continued revenue growth achieved for the third quarter of 2017 as compared to the prior year," commented Jerrell Shelton, Cryoport's Chief Executive Officer. "Increased attention to and investment in our support of the regenerative therapies industry is translating into higher logistics revenue for Cryoport in this space. We are now supporting a record-breaking 195 clinical trials, with 23 new clinical trials secured in the third quarter, driving a 65% year-over-year revenue increase in our lead market, the biopharma market. We are proud of the significant traction we have made in supporting our client's clinical trials. We believe that this activity is the just the 'tip of the iceberg' as our biopharma market revenue is expected to significantly ramp as our clients' regenerative therapies reach commercial viability, requiring more extensive logistics support from Cryoport."
Market Highlights:
Biopharma
Biopharma revenue increased by 65% in the third quarter of 2017 compared to the prior year quarter
20 new Biopharma clients and 23 new regenerative medicine clinical trial programs were added to Cryoport's robust revenue pipeline during the third quarter of 2017
195 clinical trials supported by Cryoport, with 20 in Phase III
Two long-term commercial agreements were signed: one with Gilead's Kite Pharma for Yescarta and the other, with Novartis for Kymriah, to support the respective commercial launches of each company's FDA-approved CAR-T therapy.
Overall Financial Results:
Revenue increased 52% to $3.0 million and 58% to $8.6 million for the three and nine-month periods ended September 30, 2017, respectively, compared with the same periods in the prior year.
Gross margin for the three- and nine-month periods ended September 30, 2017 was 54% and 49%, respectively, compared to 40% for both in same three- and nine-month periods in the prior year. Gross margin improvements were driven by increased business volume, pricing adjustments and efficiencies of scale.
As a result of investments in the build out of our infrastructure for the future, which includes adding new competencies, new and additional inventories, and new services, our operating costs and expenses increased by $637,000 and $950,000 for the three- and nine- month periods ended September 30, 2017, respectively.
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