New consulting and advisory division extends Cryoport's expertise in cryogenic logistics to the life sciences industry
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Irvine, CA – April 11, 2016 — Cryoport, Inc. (NASDAQ: CYRX) (“Company”), the world’s leading cryogenic logistics company, announced the launch of a new Temperature Controlled Logistics Consulting Division to assist life sciences companies in developing strategies for global cold chain logistics management and contingency options to protect their valuable, and often irreplaceable, biological commodities.
The launch of Cryoport’s Temperature Controlled Logistics Consulting Division addresses the demand created by the worldwide advances in cellular based therapies, including immunotherapies, stem cells and CAR T-cells. Cell-based immunotherapies are causing broad shifts and challenges for the life sciences industry, including how to obtain, properly store and transport the growing number of new, individualized, temperature sensitive therapies. Improper temperature maintenance or temperature excursions during any portion of a logistics journey can adversely affect the viability of these biologically based commodities, quickly destroying tens of thousands to millions of dollars of irreplaceable life-saving material. Consequently, strategic, global logistics planning for cryogenic cold chain solutions has taken on a strategic importance to the life sciences industry and a rapidly growing demand for consulting expertise.
From a logistics point of view, the issue at hand is that biopharma commodities for clinical trials, therapies, drugs and supplies has historically been an afterthought due to a lack of options and the relatively low cost to replace product that was lost or damaged. The new cell-based therapies are often irreplaceable or have extremely long manufacturing cycles that drive up their value. This changes the logistics landscape from a commodity service to a critical path planning project. Traditional systems for global fulfillment and distribution do not address this level of consultative planning.
These discoveries and innovations in the development of individualized cell-based therapies and drugs have catalyzed an increased focus on the importance of the control of temperatures from manufacturing and distribution to the point of patient administration. For cellular therapy efficacy to be delivered, comprehensive logistics strategies and planning are critical. Each facility that looks to successfully implement cellular based programs must develop cryogenic storage, distribution and fulfillment solutions that are capable of tracking individual patient- based drug product, maintaining the proper environment, and providing proof from collected and vital monitoring information regarding the “chain of condition” and “chain of custody.” Many of these therapies require both cold chain and frozen chain segments within the programs and maintaining cell viability is the greatest risk. Facility advancement in cold chain systems requires extensive planning, advanced technology platforms and a deep industry expertise.
As a globally recognized leader in cryogenic logistics solutions for the life sciences industry, Cryoport is experienced at developing customized, innovative solutions to meet what seems to be an ever-increasing demand from the biopharmaceutical industry. To address successful global cold chain logistics including storage, fulfillment, distribution, and information strategies, Cryoport’s new consulting division will assist life sciences partners in devising and implementing strategies for dependable global logistics tailored to their individual needs.
The new Cryoport Temperature Controlled Logistics Consulting Division is headed by Tamie Joeckel, who recently joined Cryoport’s executive team as Sr. Vice President – Client Services. Ms. Joeckel has over 25 years of pharmaceutical industry logistics experience having worked with companies such as AmerisourceBergen, McKesson, PAREXEL and Dohmen Life Sciences. She has been a key member in commercialization strategies, distribution and manufacturing for a number of companies and products. Her extensive consulting experience is partially the result of having participated in the launch strategies for over 20 biopharmaceutical therapies. In addition to the new Temperature Controlled Logistics Consulting Division, Logistics, Client Care and Program Management reports to Ms. Joeckel.
“The cellular therapy, and more broadly, life sciences industry is investing billions of dollars to advance therapies that are changing the face of modern medicine. It is imperative that companies in this space confer with experts in cold chain logistics as early as possible for feasibility and program execution planning required to help mitigate risk and ensure success in global programs. Whether in Phase I, II or III in clinical trials or planning for commercial launch of a new therapy, global planning is critical. We recognized this as a great opportunity for Cryoport,” stated Ms. Joeckel.
Today, Cryoport is supporting 64 clinical trials in the regenerative medicine space. In addition, it supports more than 500 clients globally by providing leading edge logistics solutions for biologic materials, such as immunotherapies, stem cells, CAR T-cells and reproductive cells.
Jerrell Shelton, Chief Executive Officer of Cryoport, stated, “We are indeed excited about our expansion into consulting. Our many years of systems and logistics solutions development have put Cryoport in a unique position to provide life sciences industry companies with a wealth of knowledge and best practices for cryogenic cold chain logistics.
Mr. Shelton continued, “Cryoport’s Temperature Controlled Logistics Consulting Division is equipped to provide its clients with invaluable guidance and information about advanced cold chain logistics solutions. This initiative was conceived in response to direct demand from both new and existing life sciences clients of Cryoport. It is a fact that the life sciences industry is becoming increasingly aware of the importance of cold-chain logistics challenges that they will face over the next decade. As the recognized industry leader in cryogenic logistics, we are committed to the support of the life sciences industry at large.”
“As for financial impact, we cannot forecast the growth of this new division precisely, but we have discussed our service with a number of life sciences companies and expect it will have a meaningful revenue impact over time,” concluded Mr. Shelton.
About Cryoport, Inc.
Cryoport is the premier provider of cryogenic logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology and specialized cold chain logistics expertise. The Company provides leading edge logistics solutions for biologic materials, such as immunotherapies, stem cells, CAR T-cells and reproductive cells for clients worldwide. Leading global companies, such as FedEx, UPS and DHL have each separately selected Cryoport as the preferred cryogenic logistics provider for time- and temperature-sensitive biological material. Cryoport actively supports points-of-care, CRO's, central laboratories, pharmaceutical companies, contract manufacturers and university researchers. For more information, visit www.cryoport.com.
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Forward Looking Statements
Statements in this news release which are not purely historical, including statements regarding Cryoport, Inc.’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that the company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, and technical development risks. The company’s business could be affected by a number of other factors, including the risk factors listed from time to time in the company's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended March 31, 2015. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Cryoport, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.