Cryoport (CYRX) Investor Update summary

Strategic partnership and transaction overview

• Announced a strategic partnership with DHL Group, including the acquisition of CRYOPDP by DHL for $195 million in cash, to accelerate growth and strengthen the supply chain network in life sciences, especially cell and gene therapy.

• The transaction is an all-cash deal with an enterprise value of $195 million, expected to close in 6-8 weeks pending regulatory approvals in the UK and France, and will bring pro forma year-end 2024 cash balance to over $450 million.

• CRYOPDP will integrate into DHL's Supply Chain division, while Cryoport maintains a global agreement and relationship with CRYOPDP as part of DHL Group.

• The partnership leverages DHL's global logistics network, especially in APAC and EMEA, providing integrated, competitively priced solutions and enhancing competitiveness and scalability in key global markets.

• The partnership is expected to be accretive, improving financial profile, market leadership, and supporting a strategic pivot to an asset-light model.

Market and industry outlook

• Cell and gene therapy industry is experiencing rapid growth, with Cryoport now supporting 701 clinical trials and 19 commercial therapies, up from 6 therapies and 43% market share five years ago.

• Wall Street analysts project a six-year CAGR of over 30% for the 19 approved therapies currently supported, with more approvals expected.

• Global CGT sales have grown from $4.2B in 2019 to $14.5B in 2024, with investments in CGT reaching $15.2B in 2024, up 30% year-over-year.

• The total addressable patient population for approved therapies is projected to reach over 1.6 million by 2028.

• Industry trends include a shift to outpatient treatment, expansion into more common diseases, and forecasts of at least 10 blockbuster therapies by 2030.

Financial guidance and business impact

• 2025 revenue guidance is set at $165 million to $173 million, excluding Q1 CRYOPDP revenue, representing 6–10% year-over-year growth.

• The transaction is margin accretive, with pro forma gross margin rising from 44.5% to 46.1%, and a higher percentage of revenue tied to cell and gene therapy.

• The company aims for long-term gross margin of 55% and adjusted EBITDA target of 30%, with further margin expansion expected as the business scales.

• Proceeds from the transaction strengthen the balance sheet, provide flexibility for debt reduction, working capital, or potential M&A, and support a shift to an asset-light model.

• FY24 pro forma CGT revenue as a percentage of Life Sciences Services rises to 83.7%.