Cryoport strikes second acquisition in a week with $320m MVE buy

by Thursday, August 27, 2020  3:48 pm

The addition of cryogenic freezer systems firm MVE Biological Solutions will boost Cryoport’s position in the temperature-controlled cell and gene therapy logistics space.

Cryoport, a temperature-controlled supply chain services firm for the life sciences, has agree to buy MVE Biological Systems for $320 million with the deal expected to close by the end of the year.

MVE is a subsidiary of Chart Industries and will bring Cryoport a greater presence in the cell and gene therapy services space, broadening its portfolio to include manufactured vacuum insulated products and cryogenic freezer systems. The firm has three manufacturing sites – two in the US and one in China – and more than 300 customers, including Cryoport itself.

Image: iStock/Zhanna Hapanovich

According to Jefferies analyst Brandon Couillard, MVE has an estimated 55% share of the vacuum insulated products and cryogenic equipment market and the acquisition “will bolster Cryoport’s strategy of becoming the top life sciences supply chain solutions provider, further augmenting its exposure to the rapidly growing cell & gene therapy space.”

The deal comes days after Cryoport announced it is buying French logistics firm CRYOPDP for €49 million ($58 million).

“Cryoport has fundamentally transformed the company via the CRYOPDP and MVE deals,” Couillard said in a note, adding “the acquisition spree solidifies Cryoport’s status as one of the best ways to play the coming cell and gene therapy boom.”

Speaking on the deal, Jerrell Shelton, CEO of Cryoport, said: “The acquisition of MVE Biological Solutions represents an important step in carrying out Cryoport’s mission. It further entrenches us in the cell and gene therapy supply chain ecosystem at a time when cell and gene therapies are experiencing rapid and sustained growth, and with an even more exciting growth story ahead.”

He added: “Bringing MVE Biological Solutions under the Cryoport umbrella, which will include Cryoport Systems, Cryogene, and the recently announced agreement to acquire CRYOPDP is expected to increase our revenue run rate to over $160 million and to be immediately accretive.”