Just read over the transcript. Obviously the headline numbers were in line with my expectations - I was off by 100k. I’m actually surprised the price held up as well as it did yesterday. Maybe the additional institutional ownership has helped. I also may have underestimated the significance of the article in Wired. While WE didn’t learn anything new, the article reached an entirely new audience than all of the previous industry articles, and may have generated renewed interest. The volume has picked up since it was released, but that may just be coincidence.
I’m not sure if anyone else here understood the significance of the new RMAT guidelines for Cryoport when it was released by the FDA on November 16th. CYRX share price was ~$6.50 and that day it began a run to ~$9 within a month with one small pullback for two days. A couple of other companies I own have tripled and doubled since that day. Obviously the news of Increasing the estimated BLA /EMA filings Cryoport will support this year from 2-4 to 5-7 is huge! IF this actually happens, I think we will see the inflection point and the sharks begin to circle. This may be another reason the share price held up.
All that management would say about the commercial launches of Yescarta and Kymriah was that they’re seeing acceleration. Thanks guys.
No analysts asked about the Big Pharma outsourcing cold chain logistical support contracts management was crowing about a year ago. Not sure what to make of their silence about them now. As a reminder this is what Jerry had to say about them at the last conference call:
“Cryoport has been successful in landing a large pharma support project, supporting the global biologics manufacturing. Although the transition of these types of projects has been complex and slower than anticipated they are approaching completion on the contractual and quality related aspects before onboarding to be finalized. Once fully converted, these will ramp throughout the next fiscal year. Cryoport anticipate additional program adds in this space in the coming quarters as the market awareness in this space develops.”
The McKesson partnership was of interest but once again little information was given. Here is the exchange from the Q&A:
Jason Seidl (Cowen)
Fair enough. Then McKesson collaboration that seems fairly exciting there, huge name, seems like it enables you to go sort of up and downstream, could you talk a little bit more about that and what that's going to let you do and not this year but maybe say over the next three years?
Jerrell Shelton
We're very pleased with the McKesson agreement and I'm going to turn it to Mark because he helped engineer that to large extent.
Mark Sawicki
Yes. So we've really been focused on building a network, and a network that that helps us provide broader and deeper coverage throughout the regenerative therapy space, and in fact, we just had a two-day workshop last week where we had over 120 folks come in from clients, perspective clients to partners, and not only McKesson supported that event but it was also co-sponsored by GE, Fisher Bio, and Be The Match, from a support standpoint.
So those are -- there's a core strategy for us which is to be able to leverage our competencies in support of organizations such as McKesson moving forward, because we believe that we can provide a tremendous amount of value to those organizations, but it also provides a lot more value to our core client base, both through clinical development as well as commercial launch.
It will be interesting to see if this strategic partnership is exclusive, or if they do a similar collaboration with Cardinal. That may be telling.
Also Interesting that a couple individual investors got to ask a few questions. Was it anyone from the board? I thought this was a good one and it seems they took the capital raise issue off the table for a while. The slow commercial ramp has probably helped in this areas as well.
Nathan Cusick
Okay, cool and then with the current my fleet expansion do you guys in both European convergence and East Coast center do you expect your cash on hand to be sufficient for this are you looking for possibly like debt markets are possible secondary offerings to deal with this construction and further build-out.
Jerrell Shelton
Well, we will approach the financing as we go along. We have enough cash now to fulfill our plan for this year. So that's not on the table and we'll look at things as we move along, but we have nothing planned at this time.
I also liked Jerry's closing statement:
"For any newcomer to the market it would be incredibly difficult to overcome our advanced stake and to gain meaningful market share. We have made the barriers to entry into our market for potential competitors high and across the board almost impossible to overcome. Our demonstrable track record rose daily and our reputation for reliability and safety is unapproachable."
