Wow, over 400k shares traded Friday and over 150k so far today; looks like the tutes are back. Just read the conference call transcripts and a few things stood out to me. First, they are already lowering their estimate from 5 to 7 to 5 or 6 additional BLA or EMA filings in 2018. Overall, it is encouraging that the industry is headed for tremendous growth and Cryoport is embedded with so many key companies, but it will probably take a couple years for these to produce meaningful revenue for Cryoport. Once again, I’m disappointed by some of the lame questions asked by the analysts. Paul Knight asking what the patient population is for the second indication of Kymriah? C’mon man, do your homework! And WILL SOMEONE PLEASE ASK what happened to the outsourcing contract with Bristol Myers for the handling of Yervoy or Opdivo? They were supposedly in the final process of on-boarding over 6 months ago!
I was shocked that management actually stated the commercial revenues from Gilead and Novartis. It sounds like the contracts are tiered and based on a transport and service component. My estimate was fairly close (off by 100k), and now analysts may be able to estimate these revenues a little more accurately. At this level of production, I think it is roughly $2500 per patient, but it may take another quarter or two to confirm. This was the relevant question:
Paul Knight (Janney)
Okay and what was the revenue in the fourth quarter for these two therapeutics indications.
Jerrell Shelton
I think, we studied in the earlier on it was about, Robert, is it 318,000.
Robert Stefanovich
For the previous quarter, it was 100,000 just as they commenced towards the end of the year and then for Q1, it was 318,000.
At least the big question was asked by Jason Seidl about the rumored meeting with Jefferies and the need for another capital raise. It is also interesting that just 2 months ago, Shelton was saying they have enough cash for the year but now is only saying “we don’t have any immediate plans today for a capital raise.” Was it just me, or did anyone else think Shelton’s answer was a little strange?
Jason Seidl (Cowen)
Okay, perfect. And I think, you sort of alluded to it before, but it seems like at least on a balance sheet perspective, you guys are pretty comfortable with your cash position. No need to raise from your fund. I just want to know, if you wanted to comment on that because there had been at times your stocks moved around and we heard rumors in the market because people talking [indiscernible] cash, so I am just curious of your official statement on your balance sheet is.
Jerrell Shelton
I mean, I think, some of those rumors in the market came as a result of what I mentioned and at the end of my comments where we do – we are in the market building out our relationships in the marketplace with institutional investors and others because a lot of folks simply haven’t heard of us and we run into them every day. We are not a large company. We haven’t been around all that long and a lot of people haven’t heard of us. So we do spend time. So there is rumors got started, they were, obviously they didn’t come true and we don’t anticipate them coming true. We are at comfortable cash position right now fortunately and so we don’t have any plans immediately to raise capital on any basis right now other than there will be some warrants that will come in over this year because they will expire and so we will get some money from that. But some investment from that but we don’t have any plans for today for a capital raise.
