By David Willey, Benzinga
Cryoport Inc. (NASDAQ: CYRX) provides the life sciences industry with comprehensive supply chain solutions to support vital therapeutics. By offering a platform of end-to-end, fast and technologically advanced packaging and logistics services, Cryoport has filled a key need supporting cell and gene therapies.
In the biotech industry, the cell and gene therapy (CGT) market in particular has seen significant growth and has ample room to expand further given longer life expectancies and increasing demand for personalized medicine. Currently worth $18.61 billion, it has been forecasted by Precedence Research to grow at a compound annual growth rate (CAGR) of 22.41% to over $93 billion by 2030. This is in response to massive investment and innovation in the market that has seen 20 Food and Drug Administration (FDA)-approved CGT treatments in the past two decades. Many promising CGT start-ups have entered the market, with the top 50 drawing over $11 billion in funding in the past few years.
Leading biotech and pharmaceutical companies that are already active in the CGT space include Allogene Therapeutics (NASDAQ: ALLO), Gilead (NASDAQ: GILD), and Novartis (NYSE: NVS).
An example of innovation in the CGT space is Chimeric antigen receptor (CAR) T-cell therapy for cancer, a cell therapy that repurposes the immune system to fight cancer without the toxic side effects of treatments like chemotherapy. CAR-T therapy has shown amazing complete remission rates, with one study showing complete remission in 99% of children with acute lymphocytic leukemia (ALL) in a clinical trial, with 74% showing no signs or symptoms of the disease after a full year. For adults, CAR-T also has high early remission rates of 81%.
Cryoport’s Pivotal Placement In the Industry
All these companies developing innovative treatments in the CGT space need a comprehensive infrastructure to support the advancement of these critical patient therapeutics. Cryoport, an integrated cold-chain supply chain and logistics company, provides these companies with the essential support they need to provide these life-saving therapies.
One of the largest temperature-controlled supply chain companies, Cryoport has built up a client base of over 3,000 customers worldwide and delivered more than a million shipments. It is actively involved in over 650 clinical trials, making it a lynchpin at the heart of the dynamic CGT industry as it develops. According to an investment report by BTIG, in 2021 alone 21 groups supported by Cryoport filed market authorization applications (MAA) or biologic license applications (BLA).
Cryoport’s comprehensive, turn-key solutions cover a wide range of activities. It has four principal divisions: its logistical packaging solutions (Cryoport Systems), a specialty courier service (CYROPDP), its biostorage capabilities (Cryogene), and cryogenic systems manufacturing (MVE). Cryoport’s end-to-end service engagement makes the company a must-have facilitator for the developing industry.
One of the winners of the Cold Chain Global Forum Excellence Awards, and with 48 facilities in 17 countries, the company has made a series of strategic partnerships and acquisitions to consolidate its position. In 2020, it acquired MVE Biological Solutions (MVE), a global leader in manufacturing vacuum sealed and cryogenic freezer systems. This acquisition reinforced the Cryoport ecosystem, empowering the company with greater control over the entire process. More recently, through partnerships and acquisitions with Belgium and French life sciences companies, Cryoport has strengthened its international network and further integrated its operations.
A strong base of industry relationships, an integrated network and technology, and a global system with leading compliance and efficiency, all make Cryoport a sticky and necessary solution for CGT companies. As the CGT industry continues to grow, Cryoport intends to grow its network to serve these companies.
“The fundamental technology that we have is vital to the life sciences and its advancement,” said Jerrell Shelton, CEO of Cryoport, commenting on the opening of a new facility in Texas. “The growth [of the industry] is rapid – but the supporting infrastructure isn’t.” He went on to explain how Cryoport, which represents 90% of commercial CGT therapies currently on the market, services the rapidly increasing number of therapy developers. “They need reliable partners, with suitable facilities to help them manage their valuable materials – including the therapeutic materials and the raw materials that are used in the manufacturing process.” This is the pivotal role that Cryoport plays in the industry.
Cryoport is heavily owned by institutional investors including Blackstone (BX: NYSE), and now more retail investors seem to be discovering the necessary role this company plays in the industry. While there are often opportunities to invest in individual biotech companies with upcoming catalysts, Cryoport’s diverse biotech customer base means an investor gets secondary access to a whole range of biomedical companies at different stages of bringing their products to market — possibly offering a uniquely diversified exposure to the upside of biotech. In fact, there are 11 new Cryoport supported products expected to reach commercialization in 2023, bringing the total number of commercialized Cryoport supported therapies to 21.
Want to learn more about what Cryoport is doing in the life sciences industry? Visit its website.
This article was originally published on Benzinga here.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in temperature-controlled supply chain solutions for the life sciences industry supporting life-saving cell and gene therapies across the research, clinical and commercial spectrum. With over 40 strategic locations covering the Americas, EMEA (Europe, the Middle East and Africa) and APAC (Asia Pacific), Cryoport's global platform provides mission-critical solutions, services, and products to the biopharma/pharma, animal health, and reproductive medicine markets worldwide. In addition to its standard setting supply chain solutions, Cryoport is the world's largest manufacturer of cryogenic systems and one of the largest life science focused specialty couriers.
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, plans, strategy, acquisitions, financial results and financial condition. 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, 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, including the risk factors discussed in the Company's Securities and Exchange Commission ("SEC") reports including, but not limited to, the Company's Annual Report on Form 10-K for the three and twelve months ended December 31, 2022 and any 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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