CryoPort's mission is to provide the most cost effective packaging system that ensures conservation of temperature sensitive biological materials that are critical to the expanding biopharmaceutical and biotechnology industries.
CryoPort is dedicated to producing superior, affordable cryogenic shipping systems that maintains the integrity of scientific research advanced by the growing biopharma and biotech industries.
CryoPort understands the value of such research and is committed to evolving cryogenic shipping as a new industry standard globally for temperature sensitive materials; such as life-sustaining vaccines and other medical research that are used in clinical trials around the world.
402 W. Broadway, Suite 400
San Diego, CA. 92101
20382 Barents Sea Circle
Lake Forest, CA 92630
P: (619) 595-3130
F: (619) 595-3139
Web Site: http://www.cryoport.com
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CryoPort, Inc. has developed a game changing solution to the challenge of shipping biological materials, such as vaccines, cell lines, and specimens, under frozen storage conditions. The proprietary CryoPort Express™ solution combines a state-of-the-art web-portal for a time saving / hassle free process with a proprietary dry vapor liquid nitrogen container to make the transport and logistics of sending biological materials easier and more reliable compared to traditional dry ice methods. The turn-key shipping process we have created using new dry vapor container technology maintains -150ºC temperatures for 10+ days and is a 'green' game changing alternative to the current hazards and waste created when using dry ice shipping methods.
Now life science companies can outsource the transport logistics to one company that has both the technical understanding for the requirements of frozen transport and the logistical connections to make it happen in a cost effective way. CryoPort has established partnerships with major transportation companies, like FedEx and DHL, allowing us to deliver temperature-sensitive biomaterials in an increasingly complex and time-sensitive global environment.
CRYOPORT has initiated technological breakthroughs in the field of cryogenic frozen packaging at -150OC, or lower, for the transport of temperature sensitive biological materials with its current reusable shippers now in full production. Three patents for the design of the insulated vacuum vessel have been issued in both domestic and selected overseas countries. In addition, CRYOPORT has completed the development of a unique one-way shipper system, "Cryoport Express". Cryoport Express has the potential to revolutionize the way the pharmaceutical and biotechnology industries deliver drugs to market and handle specimens in clinical trials, due to its highly efficient design, proprietary technology, ease of use and significant user cost savings. Innovations associated with Cryoport Express will also offer additional intellectual property filings for the Company. No company, other than CRYOPORT, is known to have developed products designed to solve the problems of shipping high value drugs at low temperatures.
ABOUT CRYOPORT, INC.
CryoPort (Symbol: CYRX) was founded to capitalize on the emerging cold chain requirements of the global "biotechnology revolution". By providing integrated, cost effective packaging and service solutions for the distribution of bio-pharmaceutical products, the Company is uniquely positioned to facilitate both the clinical development and market delivery of high value medicines. CRYOPORT'S target market is companies producing biological medicines that require, or would benefit from, frozen shipping temperatures over an extended time period. Examples of biological medicines include live cell therapeutics such as certain cancer vaccines. According to a 2005 Survey published by the Pharmaceutical Research and Manufacturers of America (PhRMA), there are currently 399 cancer medicines in development, some of which would require low temperature transport. CRYOPORT currently manufactures a family of reusable cryogenic shippers for several categories of biomaterials, including Diagnostic Specimens, Dangerous Goods and Infectious Materials. The outer casing of the shipper is a light weight, high impact resistant plastic or a ballistic nylon material. The specimen storage well (2.8 inch diameter) is enclosed in a metal cryogenic dewar flask with a very high vacuum (10-6 Torr). An advanced absorbent in the inner dewar vessel holds the liquid nitrogen (LN2) and provides the required cryogenic temperatures.
The Current Cold Temperature Shipping Market
Until the recent development of CRYOPORT'S proprietary Cryoport Express shipping system, the pharmaceutical and biotechnology markets had been, and essentially still are, served both inadequately and inefficiently with "dry ice" packaging equipment. The current use of dry ice as a shipping & preserving medium results in: • Low temperature loss after 48 hours and requires "re-icing" for longer shipping times or delays • Risk of specimen deterioration The loss of specimen viability costs these industries hundreds of millions of dollars per year due to: • A delayed time to market for drugs in clinical trials • An increase in the number of patients per trial The number and volume of biological materials shipped in the cold chain is increasing rapidly. According to the Biotechnology Industry Organization (BIO), growth in temperature sensitive products will outpace the rest of the industry with average growth estimated at 15% per year.
Rationale for a One Way Shipper
The driving logic for the one way shipper is twofold:
• Make the cost of the cryogenic package less than, or equal to, the cost of the return costs of a reusable unit.
• Offer the CryoPort Express service to the Company's target markets to provide customers the opportunity to outsource its need to procure, store, recondition, and handle cryogenic shipping vessels. Product orders result in the timely delivery of ready to use shippers from CryoPort. The customer pays a per unit usage charge and nothing more. This service eliminates the traditional costs of ownership of the shipper to the client.
Competition and Projected Market Share
The main competitors in the markets today of interest to CRYOPORT are the dry ice equipment manufacturing companies. The markets identified by CRYOPORT are not currently being pursued by the established cryogenic equipment manufacturers, who remain focused on the traditional reproduction and cryobiology markets and sell to the broad based laboratory markets through multiple levels of reseller. Dry ice equipment manufacturers lack cryogenic manufacturing capability and both the cryogenic and dry ice equipment manufacturers lack mass manufacturing experience and current practice. Therefore, CRYOPORT'S management believes that with its current technology position, its ability to quickly establish mass manufacturing practices and expand these via strategic license partners into the market it will be able to secure an early leadership position, set the new standard in several industries for the transport of frozen biological materials and be in a dominant and sustainable position for the foreseeable future.
CRYOPORT'S strategy is to target bio-pharmaceutical companies with biological medicines in clinical trials that require cryogenic temperatures and incorporate one way shipper programs early into their cold chain distribution plans as a means to reduce operational costs. As part of the FDA approval process for the drug, CRYOPORT'S shipper technology will have been validated as effective for the specific medicine in development. The one way shippers will consequently be seamlessly integrated into market distribution of the drug with no regulatory interruption, largely insulating the Company from non-validated competitors. Examples of these products include live cell therapeutics developed as cancer vaccines. Subsequently, but also in parallel, CRYOPORT will leverage a strong collaborative relationship with senior decision makers in the biopharma companies to create the opportunity to expand the application of the one way program into trials already based on dry ice and thus address the risk of specimen loss and accompanying costs. Parallel to working with biopharma companies, the Company also is targeting immediate opportunities with entities conducting biotech research in the areas of genomics, proteomics and cell engineering. Using dry ice has created significant risk in shipping such high value materials globally, and the growth in these areas will provide increasing opportunities to cost-effectively facilitate safe transport.
CryoPort's Market Opportunity
It is conservatively estimated that there are a minimum of 20 million frozen shipments made per year globally within CRYOPORT'S target markets. Consequently, the current annual market potential based on the following targeted markets for its one way shipper, Cryoport Express, is an estimated $3.34 billion:
Biopharma Clinical Trials $1.800 Billion
Biopharma Distribution $1.188 Billion
Biotechnology Research $0.052 Billion
Miscellaneous Biologicals $0.300 Billion
Total global market opportunity $3.340 Billion
(Note: The above markets are today 99.5% served by inefficient and expensive dry ice products.)
Robert S. Stefanovich, Chief Financial Officer, Treasurer and Corporate Secretary
Mr. Stefanovich has more than 20 years of experience in financial management, including more than a decade as a senior level financial executive in the healthcare and technology industries. Mr. Stefanovich has served as Chief Financial Officer of Novalar Pharmaceuticals, Inc., a venture-backed specialty pharmaceutical company. Previously he served as Chief Financial Officer with three publicly traded companies, including Xcorporeal, Inc., a medical device company, Artemis International Solutions Corporation, a software company, and Aethlon Medical, Inc., a medical device company. Previously, he was Vice President of Administration at SAIC, a Fortune 500 company. Mr. Stefanovich also served as a member of the Software Advisory Group and an Audit Manager with Price Waterhouse LLP's (now PricewaterhouseCoopers) technology practice in San Jose, California and Frankfurt, Germany. He currently also serves as a board member of Project InVision International, a leading provider of business performance improvement solutions. He received his Masters of Business Administration and Engineering from University of Darmstadt in Germany.
Steven Leatherman, Chief Commercial Officer
Mr. Leatherman has more than 30 years of experience in sales and marketing, and operations management in the healthcare industry. Most recently, Mr. Leatherman was vice president of Global Surgical Supplies for Ansell Sandel Medical Solutions, and was president of Sandel Medical prior to its acquisition by Ansell Healthcare. Earlier he was general manager of Microflex, where he was responsible for marketing and domestic and international field sales; a director of marketing for Bausch & Lomb Surgical Division; vice president of marketing for Carl Zeiss Surgical, Inc.; and vice president of international marketing for Terumo Heart, Inc. Mr. Leatherman has a Bachelor's Degree in Biology from the University of Nevada, and a Master's in Business Administration from the University of Phoenix.
Cindy Gick, VP Client Care and Development
Ms. Gick joined CryoPort in April 2011 bringing more than 15 years of experience as a customer service executive and consultant to fulfill her responsibilities for the Company's new initiative to establish contact centers that will provide around-the-clock support and order entry service for customers worldwide. Prior to joining CryoPort, Ms. Gick was a principal with CG Consulting Services, where she partnered with leading enterprises such as Allergan, Countrywide, Angels Baseball, and Taco Bell Corporation to develop strategic plans, build strong customer relationships and high customer satisfaction focused on the "complete customer experience." Previously, she held positions as Director of First Consulting Group's (FCG) Call Center, CRM, and Telecom Practice, and was a Director of Call Center Technology for Viking Office Products.
Bret Bollinger, Vice President, Operations
Mr. Bollinger became Vice President of Operations for CryoPort in February 2008. Prior to joining CryoPort, since July of 2003, He was Director of Operations and Engineering for Triangle Brass Manufacturing. From July of 2001 through July 2003, Bollinger served as a Business Process Consultant for Cardinal Health and from July of 1999 to July of 2001, he served as Operations and Order Fulfillment Manager for Ingersoll-Rand's Falcon Lock Company. Bret has extensive background in domestic and international manufacturing environments. In addition, he has experience in new product design and implementation. Mr. Bollinger holds a Bachelor of Science in Mechanical Engineering from Sacramento State University.
Board of Directors
Stephen Wasserman, Chairman of the Board
Mr. Wasserman joined the Company's Board of Directors as Chairman in 2012. Mr. Wasserman has more than 30 years of senior operating and financial management experience in the medical device and healthcare industries. Mr. Wasserman is currently on the Board of the medical diagnostics firm Iris International, and serves as chairman of the compensation committee. Previously he served as group vice president of the Diagnostic Systems Products division of Olympus America, a leading medical technology company, as well as a member of the executive committee for American Operations. Earlier in his career he was chief financial officer and treasurer of Datascope Corporation, where he was also president of its Patient Monitoring Division, general manager for Melville Biologics, and vice president and general manager of Technicon (now part of Siemens Healthcare Diagnostics). Mr. Wasserman received his Bachelors in Business Administration from City College of New York, and is a Certified Public Accountant.
Adam M. Michelin, Lead Director and Audit Committee Chair
Mr. Michelin became a member of the Company's Board of Directors in June 2005. He is currently the Chief Executive Officer, of Naturade, Inc. a position he has held since November, 2007. Mr. Michelin has held several leadership positions including CEO for Enterprise Group from March 2005, Principle of Kibel Green, Inc., a position he held for 11 years prior to joining Enterprise Group, and Partner of KPMG for 10 years. Mr. Michelin has over 30 years of practice in the areas of executive leadership, operations and is very experienced in evaluating, structuring and implementing solutions for companies in operational and/or financial crisis. Michelin received his Juris Doctorate from the University of West Los Angeles and his Bachelor of Science from Tri State University.
Karen Muller, Board Member, Nominating and Governance Committee Chair
Ms. Muller currently manages a private practice with clients in the healthcare, pharmaceutical, and medical device industries. She recently served as a Director and consultant to Naturade, a leading nutrition and nutraceutical company. Previously, she was Chief Administrative Officer and General Counsel of Epoch Networks, where she helped complete the restructuring and sale of Epoch's Internet Service Provider business, the largest privately held ISP in the country. Prior to joining Epoch, Ms. Muller was a Managing Director with Lehman Brothers, heading the corporate counsel department. Earlier she was an associate at the Wall Street law firm Cahill, Gordon & Reindel, where she worked on corporate finance and mergers and acquisitions. Ms. Muller graduated Fordham Law School in 1981, where she was a published member of the law review. She received her bachelor's degree in economics, summa cum laude, from Hunter College of the City University of New York. She also holds the title Director Emeritus with the Forum for Corporate Directors in Orange County, California.
Carlton M. Johnson, Jr., Board Member and Compensation Committee Chair
Mr. Johnson serves as Chairman of the Compensation Committee and is a member of the Audit Committee and the Nomination and Governance Committee. Mr. Johnson has been In-House Legal Counsel for Roswell Capital Partners, LLC since 1996. Mr. Johnson has been a member of the Alabama Bar since 1986, the Florida Bar since 1988 and the State Bar of Georgia since 1997. He was a stockholder in the Pensacola, Florida Bar Registered (AV rated) law firm of Smith, Sauer, DeMaria & Johnson from 1988 to 1996. Mr. Johnson holds a degree in History/Political Science from Auburn University and Juris Doctorate from Samford University, Cumberland School of Law. Mr. Johnson also currently serves on the board of Peregrine Pharmaceuticals, Inc. and Patriot Scientific Corporation.
Rod Smith, Advisory Board
Rod Smith is currently President of Strategic Concepts Ltd. and a global supply chain and logistics consultant. He was formerly Senior Manager Transportation & Logistics for AstraZeneca Pharmaceuticals.
Rick Kriss, Advisory Board
Mr. Kriss is Founder and President of KLATU Networks, a strategic technology development company focused on wireless sensor monitoring systems in cold-chain applications. He is formerly President of Xsilogy, an investor backed developer of wireless sensor network systems, and he has more than 25 years of executive experience working for well-known, high-technology companies in both a CFO and VP of Marketing positions
STOCK INFORMATION Updated July 4, 2011
Allowed Shares 250,000,000
Outstanding Shares 37,761,000
Float 8,144,374 Shares
Continental Stock Transfer & Trust Company
17 Battery Place, 8th Floor
New York, NY 10004
Phone: 212-509-4000 ext. 536
On February 1, 2008 the Company's subsidiary, Cryoport Systems, Inc., entered into a Sitelet Content License Agreement with FedEx Corporate Services, Inc. ("FedEx") by which FedEx will provide a sitelet displaying FedEx shipping information specifically applicable to the Company's employees, vendors and/or suppliers. Also under the Agreement, the Company will provide FedEx with information and graphics related to the Company's business, including the Company's Logo, which shall include the trademark(s), service mark(s), logo(s) and/or other marks used by the Company to identify the Company, and which FedEx may use to create the sitelet.
A copy of the February 1, 2008 Agreement is included with this report.
10.9 Sitelet Content Agreement between FedEx Corporate Services, Inc. and CryoPort Systems, Inc. dated January 23, 2008. _______________________________________________________________________________________________________________________________