I agree on World Courier, and thought of them as the closest competitor with the most capabilities and resources, so yes, that partnership announcement speaks volumes. Now we discover that they have been working together for several years? It’s clear that there’s a lot more is going on behind the curtain with Cryoport than they choose to share with their investors. This latest partnership suggests to me that Cryoport is also collaborating to use their Cryoportal software on a certain project that Amerisourcebergen and McKesson are working on, and Cardinal Health may also join. This is why I posted many months ago that it will be interesting to see if Cryoport also announces a partnership with Cardinal Health. Cryoport hasn’t said a word about this either, but I think this is why Cryoport has now signed partnerships with 2 of the 3 major pharmaceutical distributors in the U.S.. One thing to keep in mind . . .many acquisitions begin first as partnerships.
I actually think this overlaps and relates to another area that I’ve also been interested to know about. I had a hunch that AmerisourceBergen/World Courier was also involved in qualifying for the outsourced handling of Big Pharma’s biologics and other therapies last year. The Drug Supply Chain Security Act (DSCSA) is a big concern for Big Pharma, and although it was postponed for a year, it should take effect by this November. Cryoport has stated that the Bristol Myers agreement relates to the handling of “a multi-billion dollar monoclonal antibody” (Yervoy or Opdivo) and it will generate revenue from management fees as well as on a per-shipment basis. Also, on the Q3 ’17 conference call, management mentioned that they now have agreements with Sanofi and J&J, and indicated that it relates to the support of one or more of their biologic therapies. Once these initial tests were validated, it could lead to much greater expansion with these companies and many others. Cryoport said that they expected more agreements in the coming quarters, and there haven't been. This is a huge revenue opportunity that should be near-term, not years down the road like the cryo opportunity. Why hasn’t there been any updates? Has Cryoport focused on the software opportunity instead of the logistics opportunity?
BTW - I would keep my expectations for European revenues tempered for at least the first year ($2M?) and congrats on the anniversary (I guess?).
