Cryoport Acquires Temperature-Controlled Logistics Provider in Australia
Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport" or the "Company"), a global leader in temperature-controlled supply chain solutions for the life sciences industry, today announced it has acquired Critical Transport Solutions Australia Pty Ltd ("CTSA"), a market leader in providing premium healthcare logistics management services, specializing in time- and temperature-critical solutions for the medical and pharmaceutical industries based in Australia, for approximately USD 5 million. CTSA will be a part of Cryoport's CRYOPDP business unit and will continue to be run by the current management team.
Acquiring CTSA's distribution capabilities in Australia is expected to improve Cryoport's position to gain market share in APAC (Asia Pacific) as the number of clinical trials taking place in the region continues to increase. The CTSA acquisition follows the opening of Cryoport Systems and CRYOPDP's first jointly operated global logistics center in Osaka, Japan, in the fourth quarter of 2020 and forms part of the Company's ongoing expansion strategy in APAC. As regenerative therapies' global emergence continues and trials evolve from clinical-stage to commercial-stage, Cryoport believes that its enhanced global platform further makes it the clear choice to support pharmaceutical/biopharmaceutical companies in bringing their regenerative medicine therapies to market.
Additionally, on January 28th, 2020 Cryoport's customer Novartis announced that Kymriah® will be publicly funded following a recommendation from the Medical Services Advisory Committee (MSAC) for the treatment of eligible adult patients with relapsed or refractory diffuse large B cell lymphoma (DLBCL) in Australia. Novartis also announced an agreement with Cell Therapies to manufacture Kymriah at their production facility within the Peter MacCallum Cancer Centre in Melbourne. Cell Therapies is an Australia-based, globally active commercial contract development and manufacturing company, specializing in cell therapy, gene therapy, regenerative medicine, and cellular immunotherapy products.
"Adding this new country into CRYOPDP's global network will enable the Cryoport Group of companies to develop additional synergies in this specific country, providing end-to-end Pharma/Biopharma Logistics Solutions to our global customers and the local players in Australia. "By this additional geographical coverage, we are also anticipating the fast growing needs of our top strategic customers, to better serve their expanded activities in this zone and to be always closer to patients. As a strong customer and patient centric organization our strategy is to continue to develop our geographical footprint," said Cedric Picaud, CEO, CRYOPDP.
"Our acquisition of CTSA is what I like to refer to as a tactical acquisition with strategic impact. It is an accretive acquisition providing us with an important foothold in Australia, which is a top five country in APAC for clinical trials and a strategic location from which we can build our client base in the region," said Jerrell Shelton, CEO, Cryoport. "The CRYOPDP team has worked closely with the CTSA team over the past two years. In that time, CTSA has proven its professionalism, client focus and commitment to providing exemplary service. Combining CRYOPDP's global distribution network with CTSA's regional capability is expected to increase our revenue base and provide economies of scale. We are confident that CTSA and its able operating team will be a strong addition to the Cryoport company portfolio in APAC."
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX) is redefining temperature-controlled supply chain support for the life sciences industry by continually broadening its platform of solutions and services, serving the Biopharma, Reproductive Medicine, and Animal Health markets. Through its family of companies, Cryoport Systems, MVE Biological Solutions, CRYOPDP and CRYOGENE, Cryoport provides strategic solutions that support the growing needs of these markets.