Letter from Jerrell Shelton, CEO, Cryoport, Inc.
Dear Cryoport Shareholders:
I wanted to take this opportunity to share with you some of the exciting developments at Cryoport. We are acting decisively to boost shareholder value, and we are proud of our accomplishments to date and those to come.
As many of you know, Cryoport has established itself as the premier provider of cryogenic logistic solutions to many life sciences companies all around the globe. While other solutions may surface, we expect to become the industry standard. For hundreds of our customers, Cryoport forms an essential backbone for research and development, manufacturing, and trade; ensuring that life sciences materials are delivered reliably and efficiently. These materials are precious. Whether T-cells, stem cells, cell therapies, embryos, eggs, sperm, biologics for research or life-saving medicines, Cryoport’s advanced technologies ensure that shipments arrive at their targeted destination safely and securely, giving our clients peace of mind.
We have worked tirelessly to perfect Cryoport’s proprietary, validated, end-to-end solutions for frozen biologic materials and to establish a leading brand in the rapidly growing market for temperature-sensitive biologics, vaccines and cell therapies, making up a global market that is expected to reach nearly $250 billion in 2015. The determination of our world-class management team and the rapidly growing demand for our solutions has enabled Cryoport to grow its revenues by 142% in fiscal 2014 and 65% for the first half of fiscal 2015. While we are encouraged by this performance, we have our sights set firmly on our future opportunities to serve the life sciences industry. Many recent developments suggest that Cryoport’s future is very bright indeed.
On November 3, 2014, United Parcel Service (NYSE:UPS), in collaboration with Cryoport (OTCBB:CYRX), announced the launch of UPS Temperature True® Cryo, an enhanced cryogenic logistics solution for the healthcare industry. This new solution provides UPS’s global healthcare customers direct access to Cryoport’s premier cryogenic logistics solutions. For a global logistics leader like UPS, with approximately $55 billion in revenue, this collaboration is a major enhancement to its global temperature-sensitive shipping franchise, but for an emerging company like Cryoport, it signifies much more.
In July of 2014, we announced a commercial agreement with the world’s largest express and logistic network company, DHL (OTC:DPSGY), with approximately $70 billion in revenue, to provide its global shipping customers with Cryoport’s world class solutions.
Prior to that, in 2012, we were chosen by FedEx® (NYSE:FDX), a global logistics company with approximately $46 billion in revenue, to provide cryogenic shipping solutions to their customer base through a product called FexEx® DeepFrozen®.
With last week’s coordinated announcement with UPS, Cryoport can proudly say, “We are clearly the partner-of-choice to three of the world’s largest shipping companies.” Together, these three market leaders represent more than 80% of the multi-billion dollar worldwide shipping and logistics market and we are excited about working with each of them, independently, to meet the rapidly growing demand of the life sciences and healthcare customers they serve across the globe.
These recent developments underscore the true potential of our company and the growing strength of the Cryoport brand on the global stage. With these powerful new “partnerships” and the rapidly growing demand for cryogenic logistics solutions designed to securely and safely ship novel therapies and biologic materials, we, at Cryoport, are invigorated by our future prospects. And we hope that you, our shareholders, will be, too.
After years of hard work and development, our efforts have brought us to an inflection point that is unique to companies of our size. Combined with the exciting developments in immunotherapies, we intend to make the most of this and other opportunities for our clients and our stakeholders.
To paraphrase Yogi Berra, “the future ain’t what it used to be”; it is getting a lot brighter and filled with opportunities.
Cryoport is committed to driving value for our shareholders as we continue to build valuable services for the life sciences industry. We thank you for your continued support.
Sincerely,
Jerrell Shelton
CEO
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