The €49 million ($58 million) deal ups Cryoport’s logistics services, filling out its global offering to support cell and gene therapies as well as other life science functions.
French logistics firm CRYOPDP has over 220 employees in 22 global facilities across 12 countries, supporting the life sciences industry through temperature-controlled logistics products and services. The all-cash €49 million transaction, expected to complete in the next two months, will see the firm incorporated into Cryoport, expanding the firm’s global footprint and bolstering its presence within the burgeoning advanced therapy space.
According to Jefferies analyst Brandon Couillard, CRYOPDP – which reported sales of over €42 million in 2019 – is the third largest specialty global logistics player providing transport solutions for high value, temperature-sensitive pharmaceuticals.
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“The deal,” he wrote in a note, “instantly fills out Cryoport’s global network in EU/APAC, adding 22 logistics facilities (these can serve as forward depots for Cryoport’s shippers), saving it time & money vs building this organically.”
Meanwhile, the acquisition “adds additional temperature-controlled ranges, allowing Cryoport to capture other commodities not shipped cryogenically,” he said, using viral vector logistics as an example.
Cryoport has seen topline benefits from an influx of cell and gene therapy customers over the past few years, and according to CEO Jerrell Shelton this momentum is set to continue as the development of regenerative therapies accelerates and demand for # temperature control supply chain solutions intensify.
“Through our innovation, advanced technology and global supply chain network Cryoport has achieved a leading position providing temperature control supply chain support capabilities for life sciences industry, and especially for the fast growing, high value, lifesaving cell and gene therapy market,” he told investors during a financial call earlier this month.
He added the recent US Food and Drug Administration (FDA) approval of Kite Pharma’s Tecartus (brexucabtagene autoleucel), has further boosted Cryoport. Tecartus is the fourth commercialized advanced therapy being supported by Cryoport following Novartis’ Kymriah (tisagenlecleucel), Kite’s Yescarta (axicabtagene ciloleucel), and Bluebird Bio’s Zynteglo (autologous CD34+ cells encoding βA-T87Q-globin gene).
“Over the coming months we anticipate focusing more attention on the fast-growing cell and gene therapy industry, where CRYOPDP will play an increasing role,” Shelton said, following the announcement of this acquisition.
“CRYOPDP’s best-in-class temperature-controlled logistics solutions are complementary to Cryoport Systems’ existing offering, which will allow both companies to leverage each other’s strengths and expand our high growth profile as well as provide a broader array of temperature-controlled supply chain solutions to our respective client bases through coordinated cross-selling and up-selling of our new unified capabilities.”