Not sure that’s a problem, it’s what growing companies do to prepare for even more growth; they build/buy office space, manufacturing facilities, and raw materials, hire new staff, upgrade products and software, etc. And yes, sometimes there isn’t an immediate return on that capital investment, but some growing pains are to be expected. And yes, dilution also comes with the territory when investing in tiny, growing companies (and even larger companies for that matter) that aren’t yet profitable For all of the long-time investors here, perhaps the returns have been “crap” and this may taint your view. For new investors, (since last spring) the returns on CYRX have been spectacular. Like I said, expectations and perspective.
You could be right about those other issues that are concerning you as there are always competitive threats, but none of those you mentioned are even serious. There is not another company that is FDA approved, so the only reason Novartis would decide to use another company is if Cryoport screwed the pooch,(which is unlikely) and btw, Novartis had better decide at least a year before the contract is up because it will likely take a competitor quite some time for the bridging studies. And if allogenic takes off, (as it likely will) it will be quite positive for Cryoport since it supports several clients with allogenic stem-cell treatments. If you recall, on a conference call last year, it was mentioned that the revenue was multiple times higher than Yescarta and Kymriah due to the much greater patient populations.
“The Chain of compliance seems to be something of extreme importance.” Uh yeah, and you know it is only going to become even more critical in the very near future.
Okay, I guess I’m out on a limb here on my speculation but thanks for your response.
