Cryoport made two bold moves in the last couple of weeks to further our ability to support the growing number of clinical trials and the coming wave of global commercially approved therapies in the cell and gene therapy market. The first allogeneic therapy may be approved before the end of 2020, which drove us to look for a way expand our network faster than we could build them out organically. After a worldwide search and a lot of due diligence we found that the best fit was in Europe. Our first announced agreement was to acquire CRYOPDP of Paris, France. CRYOPDP brings to the Cryoport family 226 employees within 22 offices in 13 countries. If you look at where the European and Asian cell and gene manufacturing facilities are located and then look at the combined Cryoport and CRYOPDP network, you’ll see they fit hand to glove
Another important strategic consideration was that CRYOPDP supports temperature ranges that Cryoport does not. The added temperature ranges will allow us to better support those therapies and vaccines that cannot be shipped at cryogenic temperatures and also allows us to support the valuable parts of the cell and gene therapy manufacturing process like viral vector logistics.
Last but not least, CRYOPDP is a profitable and growing company. CRYOPDPD generated about $48 million in revenue in 2019 and has been profitable for over 20 years. While CRYOPDP has focused on other aspects of healthcare, we feel that Cryoport can leverage our leading position in the cell and gene sector to boost the flow of traffic through their network to the benefit of both companies.
Our second announced agreement is to acquire MVE Biological Solutions (MVE) from Chart Industries. MVE is a leading global provider of cryogenic equipment to the life sciences, with manufacturing locations in the United States and China. MVE has manufactured the core of Cryoport’s Express Shippers® for many years and we have found them to have the highest quality and reliability. The MVE acquisition ensures that we can meet the demand of our enlarged network, provides a unique opportunity for Cryoport to capture a greater share of the cell and gene therapy logistic solutions ecosystem, and strengthens our competitive differentiation in our core market.
As a leader in the space, MVE also brings over 200 employees into the Cryoport family and financial strength with 2019 revenues of over $80 million and a history of strong EBTIDA. Upon closing, the acquisitions of CRYOPDP and MVE will instantly cement Cryoport as a global leader in the support of the life sciences.
To finance the purchase of MVE, Cryoport chose to partner with Blackstone, a global leader in alternative asset management. Blackstone has well over $500 billion in assets under management, 24 global offices, and has a large network of healthcare investments.
“Cell and gene therapies are experiencing rapid and sustained growth, and they have an even more exciting growth story ahead,” said Cryoport, Inc. CEO Jerrell Shelton. Dependable, high-quality supply chain management plays a critical role in supporting that growth. With the agreements to add CRYOPDP and MVE under the Cryoport umbrella, we are strengthening our commitment to our clients and to the Cryoport mission of creating, sustaining, and saving lives.
Read More Cryoport News:
- Cryoport Expands Global Supply Chain Platform by Signing Agreement to Acquire CRYOPDP
- Cryoport Announces Agreement to Acquire MVE Biological Solutions from Chart Industries