CRYXorbust
I’ve also been very interested to hear about the Bristol Myers “blockbuster monoclonal antibody” which I think is Opdivo. They said the bridging studies should take about a year starting in June or July last year, so results are overdue. Since the contract was already announced, some revenue guidance may be revealed during a quarterly conference call.
This outsourcing of cold chain logistics handling is a significant and fast-growing business opportunity for Cryoport, and I agree that most analysts are overlooking this in their revenue estimates (probably because management has provided zero guidance). Cryoport landed 3 big pharma contracts in the last year which likely represents a trend in the industry, and more contracts to follow. I read somewhere that over 20% of cold shipments are damaged during shipping, and this alone could justify the cost of outsourcing.
From their Q1 10-Q:
The total cold chain logistics market has historically grown 70% faster per annum than the total logistics market. For 2011, global cold chain logistics transportation costs were reported to be $7.2 billion; about $1.5 billion within the cryogenic range of requirements. By 2017, transportation cost alone, for global life sciences cold chain logistics, is forecasted to grow to $9.3 billion, a 41% increase, and twice the growth of the overall market…
While we estimate that our solutions currently offer comprehensive and technology-based monitoring and tracking for a potential of six to seven million deep frozen shipments globally on an annual basis, we also believe that with investment in our services, adaptations of our solutions can be applied to a large portion of an additional fifty-five to sixty million annual shipments requiring ambient (between 20° and 25°C), chilled (between 2° and 8°C) or frozen (minus 10°C or less) temperatures.”
So last month they revealed the C3:
Dr. Mark Sawicki, Chief Commercial Officer of Cryoport, commented, "The C3 ™ solution was developed in response to recurring requests from our clients who wanted to be able to leverage our trusted Smartpak II™ Condition Monitoring System and our Cryoportal™ Logistics Management Platform to manage their shipments, not only for the cryogenic temperature range, but also in the 2-8°C temperature band.
And BTW - Rev3lation's $20 price target is far too low, unless it’s a 1-year target.
