- Second quarter results were impacted by weaker than expected
global demand for capital equipment; clinical trial start delays;
and slower than expected ramps from certain clients
- Second quarter revenue expected in the range of $56.5 - $57.5
million
- Full year 2023 revenue now expected in the range of
$233 - $243
million
- Long-term outlook robust with cell and gene therapy industry
expected to grow at a ten-year CAGR in excess of 22%
NASHVILLE, Tenn., July 12,
2023 /PRNewswire/ -- Cryoport, Inc. (Nasdaq:
CYRX) ("Cryoport" or the "Company"), a leading global provider of
innovative products and services for the fast growing cell and gene
therapy industry, today announced certain preliminary results for
second quarter 2023 and updated its expectations for full year 2023
revenue expectations.
Second Quarter Preliminary Results
Second quarter 2023 total revenue is expected to be in the range
of $56.5 to $57.5 million, representing a decrease of 11%, at
the midpoint, compared to the second quarter of 2022. These results
reflect weaker than expected global demand for capital equipment;
clinical trial start delays; and slower than expected ramps from
certain clients.
Jerrell Shelton, CEO of Cryoport,
commented, "Based on our conversations with clients and third-party
sources, we expect life sciences fundamentals to remain strong for
the longer term. Unfortunately, there has been a global slowdown in
capital equipment investment. The impact of this unexpected
slowdown was further exacerbated by a number of clinical trial
start delays and several key customers falling short of their
forecasts for the revenue ramp of certain cell and gene therapies.
We expect some of these challenging conditions to persist into the
third and fourth quarters of 2023."
Outlook
Based on current information, the Company is revising its full
year financial outlook, with revenue now expected to be in the
range of $233 to $243 million for 2023. Mr. Shelton continued,
"The impact to our business from the factors outlined above was
abrupt and significant. We are, however, positive about our
long-term outlook as the cell and gene therapy industry is expected
to grow at a ten-year compound annual growth rate (CAGR) in excess
of 22%. Our view is strengthened by the large number of Cryoport
clients that have BLA (Biologic License Applications) and MAA
(Marketing Authorization Application) filings and approvals planned
or pending with the FDA (U.S. Food and Drug Administration). Recent
client developments also give us further reason to be optimistic.
These include the FDA's approval of Bristol Myers Squibb's new cell
therapy manufacturing facility for commercial production in
Devens, Massachusetts; its
acceptance of CRISPR Therapeutics' and Vertex Pharmaceuticals' BLAs
for exa-cel (exagamglogene autotemcel), a treatment for SCD (severe
sickle cell disease) and TDT (transfusion-dependent beta
thalassemia); and its recent approval of Sarepta Therapeutics'
ELEVIDYS, the first gene therapy to treat Duchenne Muscular
Dystrophy.
"We believe these important advancements of our cell and gene
therapy clients, our future planned products and services launches,
as well as our leading market position and strong balance sheet
will enable Cryoport to achieve sustainable, long-term revenue and
earnings growth. Our team is committed to driving shareholder value
by delivering innovative solutions that support the life sciences
industry with an emphasis on life-saving cell and gene therapies,"
concluded Mr. Shelton.
The Company's 2023 guidance is dependent on its current business
and expectations, which may be further impacted by, among other
things, factors that are outside of our control, such as the global
macroeconomic environment, the ongoing effects and after effects of
COVID-19 related shut downs/slowdowns globally, continued supply
chain constraints, inflationary pressures, the ongoing war between
Russia and Ukraine, economic uncertainty and the effects
of foreign currency fluctuations, as well as the other factors
described in the Company's filings with the Securities and Exchange
Commission ("SEC"), including in the "Risk Factors" section of its
most recently filed periodic reports on Form 10-K and Form 10-Q, as
well as in its subsequent filings with the SEC.
The Company's financial results for the second quarter ended
June 30, 2023 presented above reflect
the Company's preliminary estimates, are based on the
information available as of the date hereof and are subject to
further review by the Company and its external auditors. The
Company's actual results may differ materially from these estimates
as a result of the completion of the Company's financial closing
procedures, final adjustments and other developments arising
between now and the time that the Company's financial results for
this period are finalized. As a result, investors should exercise
caution relying on this information and should not draw any
inferences from this information regarding financial or operating
data not provided. These preliminary estimates are not meant
to be a comprehensive statement of the Company's financial position
and results for this period. The Company expects to report its full
second quarter 2023 financial results on Wednesday, August 9, 2023, after U.S. markets
close.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is
a global provider of innovative products and services to the
fast-growing Cell & Gene Therapy industry - enabling the future
of medicine for a new era of life sciences. With 48 strategic
locations covering the Americas, EMEA (Europe, the Middle
East and Africa) and APAC
(Asia Pacific), Cryoport's global
platform provides mission-critical bio-logistics, bio-storage,
bio-processing, and cryogenic systems to the life sciences markets
worldwide.
For more information, visit www.cryoport.com or follow @cryoport
on Twitter at www.twitter.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely
historical, including statements regarding the Company's
intentions, hopes, beliefs, expectations, representations,
projections, plans or predictions of the future, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, those related to the
Company's industry, business, long-term growth prospects, plans,
strategies, acquisitions, future financial results and financial
condition, such as the Company's expectations for second quarter
2023 revenue and its outlook and revised guidance for full year
2023 revenue, the Company's expectation that certain business and
market challenges will persist into the third and fourth quarters
of 2023, the Company's plans and expectations regarding the launch
of new products and services, and the Company's belief that it is
positioned to achieve sustainable, long-term revenue and earnings
growth. It is important to note that the Company's actual results
could differ materially from those in any such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, risks and uncertainties
associated with the effect of changing economic conditions,
including as a result of the COVID-19 pandemic and its variants,
supply chain constraints, inflationary pressures, the ongoing war
between Russia and Ukraine and the effects of foreign currency
fluctuations, trends in the products markets, variations in the
Company's cash flow, market acceptance risks, and technical
development risks. The Company's business could be affected by a
number of other factors discussed in the Company's SEC reports,
including in the "Risk Factors" section of its most recently filed
periodic reports on Form 10-K and Form 10-Q, as well as in its
subsequent filings with the SEC. The forward-looking statements
contained in this press release speak only as of the date hereof
and the Company cautions investors not to place undue reliance on
these forward-looking statements. Except as required by law, the
Company disclaims any obligation, and does not undertake to update
or revise any forward-looking statements in this press release.
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SOURCE Cryoport, Inc.