IRVINE, Calif., Aug. 15, 2016 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX, CRYXW), the world's leading cryogenic logistics company serving the life sciences industry, today announced financial results for the three-month period ended June 30, 2016.
"Cryoport continued to achieve strong financial results for the first quarter of our Fiscal Year 2017, reporting 34% year-over-year revenue growth," stated Mr. Jerrell Shelton, Chief Executive Officer of Cryoport, Inc. "We leveraged FY 2016's momentum to secure additional revenue opportunities from our existing client base and partnered with multiple new clients across each of our three markets - biopharma, reproductive medicine and animal health. We also secured $3.5 million in additional funds to support our growth and development initiatives.
"Our continued revenue growth was primarily driven by our expanding base of biopharma clients, of which Cryoport secured 28 new clients in the First Quarter of FY2017. Biopharma continues to account for the largest portion of our total revenues and is our fastest growing market. It is important to note that we have continued our progress in signing new clients with ground-breaking life sciences companies. Working with the world's foremost biopharmaceutical corporations, of course, positions us for further growth and serves to validate our reputation as a best-in-class provider of reliable cold chain logistics solutions. We are pleased with our sales team's demonstrated ability to further strengthen our market position and secure sales.
"Cryoport's reputation for dependability is growing rapidly and we are becoming recognized for our innovative cold chain solutions in the life sciences industry. Many companies within our biopharma client base are conducting clinical trials in the fast-growing regenerative medicine space. These companies rely on Cryoport to optimize their entire logistics supply chain in support of their clinical trials and ensuing commercialization activities. The early adoption of our services in this exponential growth area of the biopharma marketplace and the potential for us to scale with our clients as their therapies are approved is extremely encouraging. Our cold chain logistics solutions are currently supporting 23 out of the 28 leading clinical-stage CAR T-Cell programs that are underway and are now supporting more than 90 clinical trials, including 14 phase III projects. In addition, at the end of the First Quarter of FY2017, we signed our first agreement to support the manufacture of a multi-billion dollar commercially launched biopharma product," continued Mr. Shelton.
"During the First Quarter, we also continued to expand our presence in reproductive medicine and laid the groundwork for recapturing our growth in the animal health market. The resiliency of U.S. demand for human reproductive services drove solid revenue growth of 10% year over year for the First Quarter in reproductive medicine, despite changes in international regulations in some Asian countries. This growth was driven by focused marketing activities. Our animal health revenue increased 8% sequentially, after experiencing challenges in the second half of FY 2016 due to a manufacturing slowdown by one of our larger clients.
"In response to market demand we also rolled out several strategic initiatives during the quarter to accelerate future growth. They included the launch of Cryoport Biostorage, enabling us to provide comprehensive storage and fulfillment services to our clients and our Cryoport Temperature Controlled Logistics Consulting Services to address our clients' cold chain advisory needs. In addition, we introduced the SmartPak II Condition Monitoring System, which provides advanced, real-time condition and location data for monitoring critical biological commodities and enhancing our "Chain of Condition and Chain of Custody" information. These new offerings serve to ensure that we continue to have the most comprehensive, end-to-end services and tools for tailoring client specific cold chain logistics solutions. For Cryoport, "Science. Logistics. Certainty." is not just a tag line; it is a mandate as we work to strengthen Cryoport's position as the "go-to" provider of choice for all cold chain logistics needs in the biopharma, reproductive medicine and animal health markets," concluded Mr. Shelton.
Market Highlights:
Biopharma
- Biopharma revenue increased by 59% compared to the prior year quarter
- Added 28 new biopharma clients in the first three months of the Fiscal Year 2017
- To date supporting 90 clinical trials in total, of which 14 are in Phase III
Reproductive Medicine
- Reproductive medicine revenue increased by 10% for the first fiscal quarter compared to the same quarter last year, led by a 43% increase in the U.S. market. This was partially offset by a decline in international revenue of 12%. International revenue continues to be impacted by the restriction of reproductive tourism in certain Asian countries.
Animal Health
- Revenue from the animal health market was down 15% in the first quarter compared to the same quarter last year, due to a temporary reduction in shipping volume from one of the Company's larger clients. Revenue increased 8% compared with Q4 of Fiscal Year 2016.
Financial Results:
- Revenue increased 34% to $1.9 million for the three-month period ended June 30, 2016, compared with the same period in the prior year. This growth was driven by an overall increase in the number of clients utilizing the Company's solutions complimented by growth and frequency from current clients.
- Gross margin for the three-month period ended June 30, 2016 was 41% compared to 34% for the same three-month period in the prior year, driven by increased business volume and pricing adjustments, as well as a reduction in freight as a percentage of revenues.
- Operating costs and expenses increased by $657,000 for the three-month period ended June 30, 2016. This increase is primarily due to non-cash stock compensation expenses, salaries and associated employee costs to build out the organization and an increase in sales and marketing activities.
- Net loss for the three-month period ended June 30, 2016 was $3.9 million compared to $1.9 million in the same three-month period in the prior year. Net loss attributable to common stockholders for the three-month period ended June 30, 2016 was $3.9 million, or $0.28 per share, compared with $6.6 million, or $1.31 per share, in the same three-month period in the prior year.
- The Company reported $4.5 million in cash and cash equivalents as of June 30, 2016, compared to $2.8 million as of Fiscal Year ended March 31, 2016. The increase in cash includes net proceeds of $3.5 million received from financing activities, including a tender offer of $2.3 million and a rights offering of $1.2 million.
Further information on Cryoport's results are included on the attached unaudited condensed consolidated balance sheets and statements of operations, and a further explanation of Cryoport's financial performance will be provided in Cryoport's quarterly report on Form 10-Q for the three months ended June 30, 2016, which will be filed with the SEC today, August 15, 2016. The full report will be available on the SEC Filings section of the Investor Relations section of the Company's website at. www.cryoport.com.
Conference Call
Cryoport will host a conference call at 4:30 p.m. ET today, Monday, August 15th, to review its financial results and business outlook. Cryoport will provide an update on revenue from its three main lines of business Biopharma, Animal Health and Reproductive Medicine. Management will also report on new client activities and provide a general business outlook.
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