Cryoport Inc (CYRX) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Cryoport fourth quarter and full-year 2023 conference call. (Operator Instructions) As a reminder, this call is being recorded. I would now like to turn the call over to your host, Todd Fromer from KCSA Strategic Communications. Please go ahead.

下午好，歡迎參加 Cryoport 第四季和 2023 年全年電話會議。（操作員說明）謹此提醒，此通話正在錄音。現在我想將電話轉給主持人、KCSA 策略傳播部的 Todd Fromer。請繼續。

Thank you, Operator. Before we begin today, we'd like to remind everyone that this conference call contains certain forward-looking statements, all statements that address our operating performance, events or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team and our management team believes that these forward-looking statements are reasonable as and when made.

謝謝你，接線生。在今天開始之前，我們想提醒大家，本次電話會議包含某些前瞻性陳述，所有涉及我們的經營業績、我們預期或預期未來發生的事件或發展的陳述都是前瞻性陳述。這些前瞻性陳述是基於管理層的信念和假設，而不是基於我們管理團隊目前可獲得的信息，並且我們的管理團隊認為這些前瞻性陳述在做出時是合理的。

However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. And we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law.

但是，您不應過度依賴任何此類前瞻性聲明，因為此類聲明僅代表發布之日的情況。我們不承擔任何公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊或未來事件或其他原因，除非法律要求。

In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and are present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors and elsewhere in our annual report on Form 10 K filed with the Securities and Exchange Commission and those described from time to time in the other reports which we filed with the Securities and Exchange Commission.

此外，前瞻性陳述也受到某些風險和不確定性的影響，這些風險和不確定性可能導致實際結果、事件和發展與我們的歷史經驗以及目前的預期或預測有重大差異。這些風險和不確定性包括但不限於我們向美國證券交易委員會提交的10K 表格年度報告中第1A 項「風險因素」和其他部分所述的風險和不確定性，以及我們不時在其他報告中描述的風險和不確定性向美國證券交易委員會備案。

With nothing further, it is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours.

沒什麼進一步的，現在我很高興將電話轉給 Cryoport 執行長 Jerell Shelton 先生。傑瑞，地板是你的。

Thank you, Todd, and good afternoon, ladies and gentlemen. Thank you for joining our earnings call today with us this afternoon as Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki; and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen.

謝謝托德，女士們先生們下午好。感謝您今天下午作為首席財務官羅伯特·斯特凡諾維奇 (Robert Stefanovich) 參加我們今天下午的財報電話會議；我們的首席科學官 Mark Sawicki 博士；以及我們的企業發展和投資者關係副總裁 Thomas Heinzen。

As a reminder, we have uploaded our fourth quarter and full year 2023 and review document to our website. It can be found under Investor Relations in the News and Events section. This document provides a review of our financial and operational performance and a general business outlook. If you've not had a chance to read it I would encourage you to go to our website and download it. I'll provide you with a brief update on our business, and then we'll move into answering your questions in today.

謹此提醒，我們已將 2023 年第四季和全年審核文件上傳到我們的網站。您可以在“新聞和活動”部分的“投資者關係”下找到該資訊。本文件回顧了我們的財務和營運表現以及整體業務前景。如果您還沒有機會閱讀它，我鼓勵您訪問我們的網站並下載它。我將向您簡要介紹我們的業務，然後我們將在今天開始回答您的問題。

We reported total revenue of $233.3 million for fiscal year 2023, which was within our guidance range. 2023 turned out to be a challenging global operating environment, which impacted revenue across all of our business units. Product revenue was lower than historical levels, even as MVE. revenue began to stabilize in the last quarter of the year. At the same time, in 2023, we saw further growth in service revenue as it became a greater part of our business.

我們報告 2023 財年的總收入為 2.333 億美元，在我們的指導範圍內。 2023 年全球營運環境充滿挑戰，影響了我們所有業務部門的收入。即使作為 MVE，產品收入也低於歷史水準。收入在去年最後一個季度開始趨於穩定。同時，到 2023 年，我們看到服務收入進一步成長，因為它成為我們業務的更大組成部分。

Our service business is the core driver of our growth, generating over $144 million in revenue, which represents 62% of our total. As part of this growth, we had a year-over-year growth in BioStorage BioZ service revenue of 45% and commercial Cell and Gene Therapy revenue of 33%. As of December 31, 2023. We supported a record of 675 clinical trials worldwide, a net increase of 21 clinical trials over last year with 82 of these in Phase three as well as 311 in Phase two. I think it's important to point out that our clinical trial portfolio constitutes a significant long-term revenue growth opportunity for Cryoport as most therapies proceed through clinical trials toward commercialization.

我們的服務業務是我們成長的核心驅動力，創造了超過 1.44 億美元的收入，占我們總收入的 62%。作為這一成長的一部分，我們的 BioStorage BioZ 服務收入較去年同期成長 45%，商業細胞和基因療法收入較去年同期成長 33%。截至 2023 年 12 月 31 日。我們在全球支持了創紀錄的 675 項臨床試驗，比去年淨增加 21 項臨床試驗，其中 82 項處於第三期臨床試驗，311 項處於第二期臨床試驗。我認為重要的是要指出，我們的臨床試驗組合為 Cryoport 構成了重要的長期收入成長機會，因為大多數療法都透過臨床試驗走向商業化。

We currently support 14 commercial therapies, up from four up from 10 in the prior year. We expect that number to grow again this year, driven by an anticipated 17 application filings and an anticipated nine new therapy approvals. In fact, we have already had two new therapy approved two new therapies approved and one BLA filing this year. So we're off to a pretty good start. Product revenue in 2023 was lower than historical levels as reported previously, our M. two E. biological solutions revenue began to stabilize in the latter part of the year, putting the short-term anomalies in perspective in the E as a global leader in the manufacture of cryogenic systems, it is a resilient business and through cost controls, it has been able to maintain strong margins and generate considerable cash flow for our company.

我們目前支援 14 種商業療法，比去年的 10 種增加到 4 種。我們預計今年這一數字將再次增長，預計將有 17 份申請提交和 9 份新療法獲得批准。事實上，今年我們已經批准了兩種新療法，並提交了一項 BLA 申請。所以我們有了一個很好的開始。正如之前所報道的那樣，2023 年的產品收入低於歷史水平，我們的 M.2 E. 生物解決方案收入在下半年開始穩定，使 E. 作為全球領先者能夠看到短期異常現象。低溫系統的製造是一項具有彈性的業務，透過成本控制，它能夠保持強勁的利潤並為我們公司產生可觀的現金流。

We remain confident in MVE. and its future. I think for cell and gene therapy industry is still in a nascent stage that will develop. And the way we can do that will develop in a way that will transform the way we practice medicine for the betterment of mankind. The the actions we take daily are to support that vision, not just for the short term, but for the longer term as well. To that end, a few of the actions we took during 2023 to further position ourselves for continued growth and industry leadership included making targeted investments in our business and forming strategic relationships with respected partners. For example, we acquired bluebird Express, a provider of time-sensitive domestic and international transportation services with the intent to strengthen cryo PDP's USA rollout.

我們對 MVE 仍然充滿信心。及其未來。我認為細胞和基因治療產業仍處於發展的初期階段。我們實現這一目標的方式將會改變我們行醫的方式，以造福人類。我們每天採取的行動都是為了支持這個願景，不僅是短期的，而且是長期的。為此，我們在 2023 年採取了一些行動，以進一步定位自己的持續成長和行業領導地位，包括對我們的業務進行有針對性的投資以及與受人尊敬的合作夥伴建立策略關係。例如，我們收購了 bluebird Express，這是一家提供時間敏感的國內和國際運輸服務的供應商，旨在加強冷凍 PDP 在美國的推廣。

We also completed the acquisition of Tech from a life sciences technology company that provides next-generation communication and condition monitoring technology for the Life Sciences. It is true that the tactical investments with strategic impacts such as these that we have had over the years, expanded our solutions beyond logistics and transformed our Company into a robust platform of temperature control, supply chain solutions for life sciences with a focus on cell and gene therapy, we pay attention to the development of our ecosystem and to the to that end, we developed additional strategic partnerships.

我們也完成了對一家生命科學技術公司 Tech 的收購，該公司為生命科學提供下一代通訊和狀態監測技術。確實，我們多年來進行的具有戰略影響的戰術投資，將我們的解決方案擴展到物流之外，並將我們的公司轉變為一個強大的溫度控制平台，生命科學供應鏈解決方案，重點是細胞和基因治療，我們關註生態系統的發展，為此，我們建立了更多的策略夥伴關係。

In 2023, including forming a new collaboration with Cell and Gene Therapy Catapult network in Stevenage, England to provide integrated logistics support through its manufacturing innovation center through this partnership we are establishing our first U.K. logistics center to support cell and gene therapy clinical trials and future commercial growth throughout Europe. Stevenage is located in the center of the Golden Triangle arguably the most cell and gene therapy concentrated activity in all of Europe. We also expanded our relationship with NMDP. biotherapies, formerly known as B., the matched therapies in which it will be leveraging our new Integra cell platform and support of allogeneic donor recruitment collection and cryopreservation.

到2023 年，包括與英國史蒂夫尼奇的細胞和基因治療彈射器網絡建立新的合作關係，透過其製造創新中心提供綜合物流支持，透過這種合作關係，我們正在建立我們的第一個英國物流中心，以支持細胞和基因治療臨床試驗和未來整個歐洲的商業成長。史蒂夫尼奇位於金三角中心，可以說是全歐洲細胞和基因治療活動最集中的地區。我們也擴大了與 NMDP 的關係。生物療法，以前稱為 B.，是一種匹配療法，其中它將利用我們新的 Integra 細胞平台以及對同種異體供體招募收集和冷凍保存的支持。

In Asia Pac, we developed a strategic partnership with Nippon Express headquartered in Tokyo, which will build on to our growing A-Pac presence and bolster our Temperature Control supply chain solutions worldwide. Our business development activities included welcoming a number of key new clients from which revenue will ramp up over time. For example, Sarepta's gene therapy LVDS for the treatment of Duchenne muscular dystrophy has ramped up treating patients much faster than Wall Street had predicted and by June of this year, Sarepta may receive a label expansion for OV. Does that remove all the current age restrictions, other positive client developments that have continued into 2024 include the FDA's commercial approval of Iovance biotherapies Amtech.

在亞太地區，我們與總部位於東京的日本通運建立了戰略合作夥伴關係，這將鞏固我們不斷增長的亞太地區業務，並加強我們在全球範圍內的溫度控制供應鏈解決方案。我們的業務發展活動包括歡迎一些重要的新客戶，這些客戶的收入將隨著時間的推移而增加。例如，Sarepta 用於治療杜氏肌肉營養不良症的基因療法 LVDS 的治療速度比華爾街預測的要快得多，到今年 6 月，Sarepta 可能會獲得 OV 的標籤擴展。這是否會消除當前所有的年齡限制，其他積極的客戶發展將持續到 2024 年，包括 FDA 對 Iovance 生物療法 Amtech 的商業批准。

The therapy for advanced melanoma, the FDA's commercial approval of crisper and Vertex of the cast Gavi for the treatment of sickle cell and beta, our Talison female and the FDA's acceptance for prior priority review of Adaptimmune biologic license application for Alpha cell and investigational engineered T cell therapy for advanced synovial sarcoma as these and other anticipated therapies are introduced into the market and begin to ramp up. Our commercial revenue will grow, driving further growth in logistics and bio service revenue.

晚期黑色素瘤的治療、 FDA 商業批准Crisper 和Vertex of the Cast Gavi 用於治療鐮狀細胞和β 細胞、我們的Talison 女性以及FDA 接受針對Alpha 細胞和研究工程T 細胞的Adaptimmune 生物製劑許可申請的事先優先審查隨著這些和其他預期的療法被引入市場並開始增加，晚期滑膜肉瘤的細胞療法。我們的商業收入將成長，帶動物流和生物服務收入進一步成長。

We continue to set a new standard for the cell and gene therapy industry, as evidenced by the launch of innovative and revolutionary products and services, including the Cryoport elite line of shippers, which include the cross-border lead Ultra coal minus 80 shipper. These cutting edge shippers are set and setting a new bar exceeding industry standards, temperature hole times and providing additional risk mitigation. Our advanced integrated technologies, enable data management and transparency verified through our training and compliance service platform. With product introductions like these, we continue to expand our Indian solutions for the care and transport of cell and gene therapies.

我們持續為細胞和基因治療產業設定新標準，推出創新和革命性的產品和服務就證明了這一點，其中包括 Cryoport 精英系列托運人，其中包括跨境領先的 Ultra Coal minus 80 托運人。這些尖端托運商已經設定了超越行業標準、溫度孔時間的新標準，並提供額外的風險緩解。我們先進的整合技術可透過我們的培訓和合規服務平台驗證資料管理和透明度。透過此類產品的推出，我們繼續擴展我們在印度的細胞和基因療法護理和運輸解決方案。

The developments and actions I've outlined today are just a few examples of solid foundation. Cryoport continues to build to support our long term growth strategy growth in the cell and gene therapy market alone, along with other sectors of the Life Sciences pause over the last year or so. But we expect 2024 to show progressive improvement throughout the year. Therefore, we're providing a full year 2024 revenue guidance in the range of $242 million to $252 million.

我今天概述的進展和行動只是堅實基礎的幾個例子。Cryoport 繼續致力於支持我們在細胞和基因治療市場的長期成長策略成長，以及生命科學其他領域在過去一年左右的暫停。但我們預計 2024 年全年都會逐步改善。因此，我們提供的 2024 年全年營收指引在 2.42 億美元至 2.52 億美元之間。

As we move through 2024, we will continue to focus on leveraging our growth drivers and strengthening our industry leading brands to better serve our clients while capitalizing on the growth of the cell and gene therapy industry. As more of these life-saving therapies receive regulatory approval globally, we believe 2024 will be a year of progressive advancement in our business with stronger overall growth in our service business.

進入 2024 年，我們將繼續專注於利用我們的成長動力並加強我們的行業領先品牌，以更好地服務我們的客戶，同時利用細胞和基因治療行業的成長。隨著越來越多的救生療法在全球獲得監管批准，我們相信 2024 年將是我們業務逐步進步的一年，我們的服務業務整體成長將更加強勁。

That concludes my prepared remarks, and now we're happy to take your questions. Operator, please open the lines for questions.

我準備好的發言就到此結束，現在我們很高興回答你們的問題。接線員，請打開提問線。

(Operator Instructions)

（操作員說明）

Puneet Souda, LeerinkPartners.

Puneet Souda，Leerink 合夥人。

(technical difficulty)

（技術難度）

Jerry, I'm not going to be clearly low end of your company.

傑瑞，我顯然不會成為你們公司的低端人員。

I can't understand your question. Hopefully, you now know I'm going to read it yes, on top of that because of the of the.

我無法理解你的問題。希望你現在知道我會讀它，是的，最重要的是因為。

Thank you.

謝謝。

Operator, why don't you go to the next question?

接線員，為什麼不進入下一個問題？

Tony, why don't you tried to fix your situation and hop back in Nelson, if you can tie to my review of your

東尼，如果你能參考我對你的評論，為什麼不嘗試解決你的情況並跳回尼爾森呢？

David Saxon, Needham.

大衛‧撒克遜，李約瑟。

Oh, great.

哦，太好了。

Hi, guys.

嗨，大家好。

Good afternoon.

午安.

Thanks.

謝謝。

For taking my questions. Hopefully you can hear me a little better on what I wanted to.

回答我的問題。希望你能更好地聽到我想說的話。

Okay. Great.

好的。偉大的。

On to the comments around NDMDE. stabilizing in the fourth quarter. It sounds like the rest of the portfolio yet is seeing growth. So I wanted to ask about the cadence of revenue throughout the year and looking back, you do typically grow sequentially off the fourth quarter. So with kind of what you saw in the fourth quarter, should we think about that trend continuing and seeing growth sequentially in the first quarter and any reaction to consensus at around $62 million for the first quarter. And then all of a quick follow-up.

關於 NDMDE 的評論。第四季趨於穩定。聽起來投資組合的其餘部分仍在成長。因此，我想詢問全年收入的節奏，回顧起來，通常會從第四季開始連續成長。因此，根據您在第四季度看到的情況，我們是否應該考慮這種趨勢會持續下去，並在第一季度看到連續增長，以及對第一季約 6200 萬美元的共識的任何反應。然後是快速跟進。

David, as you know, we don't give quarterly guidance, but I think, you know, the assumption about your trend, I think is fine. I mean what we what we suggested and I tried to suggest in my comments, was progressive improvement throughout the year. The industry did take a haircut for the past couple of years in terms of funding and in terms of growth and so forth. And but we think that's coming back, we think the funding is off to a good level. We've as I mentioned, we've got a couple of therapies already approved, and we think we're off to a good start so we think we will be progressively better throughout the year.

大衛，如你所知，我們不提供季度指導，但我認為，你知道，關於你的趨勢的假設，我認為很好。我的意思是，我們所建議的以及我在評論中試圖建議的，是全年的逐步改進。過去幾年，該行業在資金和成長等方面確實有所削減。但我們認為這種情況正在回歸，我們認為資金已經達到了一個很好的水平。正如我所提到的，我們有幾種療法已經獲得批准，我們認為我們有了一個良好的開端，所以我們認為我們在這一年中會逐漸變得更好。

And we mentioned of the services revenue being really the growth driver. So if you look at the 23 performance and two of the critical revenue streams that we've seen significant growth in both on the commercial revenue side, where we're seeing growth of 33% year over year and actually 36% in Q4 or the BioStorage services revenue, where we've seen again, 45% year over year growth. So those are some of the leading service revenues that we also expect to continue to grow in 24 as well.

我們提到服務收入確實是成長動力。因此，如果你看看23 個業績和兩個關鍵收入流，我們發現商業收入方面都出現了顯著增長，我們看到同比增長33%，實際上在第四季度或第四季度增長了36% 。我們再次看到 BioStorage 服務收入年增 45%。因此，這些是一些領先的服務收入，我們預計這些收入也將在 24 年繼續成長。

And David will have progressive improvement. And number two, I mean that's I mean that is a great business that it owns the data. It's the dominant share of the market, and it is a great business. It's the number one grower who cryogenic systems manufacturer in the world, and it's highly lauded and there is need for biologic storage all around the world and so that but that will come back. It just comes back. It will come back over time.

而大衛也會有逐步的進步。第二，我的意思是，這是一家偉大的企業，它擁有數據。它佔據了市場的主導份額，而且是一項偉大的業務。它是世界上排名第一的低溫系統製造商，它受到高度讚揚，並且在世界各地都需要生物儲存，因此這種情況將會回來。它剛剛回來。隨著時間的推移它會回來。

Okay.

好的。

And of super helpful. So thank you for that. And then I wanted to ask on the P and specifically the gross margin. And you know, it was fairly stable through the third quarter and then came down a bit in the fourth. So what happened during the quarter to cause that sequential contraction? And then for 2024, and you know, how should we think about the gross margin for this year? Thanks so much.

而且超有幫助。非常感謝你的幫忙。然後我想問 P，特別是毛利率。你知道，第三季相當穩定，第四季有所下降。那麼本季發生了什麼導致了連續收縮呢？然後到 2024 年，我們該如何考慮今年的毛利率？非常感謝。

Yes, again, you on gross margin, you're right. If you look at overall gross margins, we ended Q4 at 42.6 and versus the 43.8%. And we've seen services revenue being being relatively flat year over year and then seeing a little bit more of a dip on the product side and some in some instances, we'll will have in Q4 kind of additional kind of cost increase the amount of initial true-ups. So I would expect some of that to alleviate going forward in in Q1 and beyond. But our yes, I would expect for modeling purposes, BARBARA stabilization of gross margin, again also with the increase in our business increasing progressively throughout the year.

是的，再說一遍，你的毛利率是對的。如果你看一下整體毛利率，我們第四季末的毛利率為 42.6%，而同期毛利率為 43.8%。我們看到服務收入比去年同期相對持平，然後看到產品方面略有下降，在某些情況下，我們將在第四季度增加額外的成本最初的真實情況。因此，我預計第一季及以後的情況會有所緩解。但我們是的，出於建模目的，我預計芭芭拉的毛利率會穩定，而且我們的業務全年也會逐步成長。

Great. Thank you so much.

偉大的。太感謝了。

Haas Savant, Morgan Stanley.

哈斯薩萬特，摩根士丹利。

Hey, guys.

大家好。

Hey, guys. Good evening, Jay.

大家好。晚上好，傑伊。

One for you on the guide. I'm just curious about what exactly are you baking in for the biopharma funding recovery? Are you essentially assuming current demand conditions continue through the rest of the year? Or are you baking in something like a recovery in the back half beyond just easier comps? And then similar sort of question on the China situation as well I mean, clearly was a weak geography for you in 23 as it was for a lot of other life science companies.

指南上為您準備了一份。我只是好奇你們到底在為生物製藥資金復甦做些什麼？您是否基本上假設當前的需求狀況將持續到今年剩餘時間？或者你還在考慮後半場的恢復，而不僅僅是簡單的比賽？然後是關於中國情況的類似問題，我的意思是，對於 23 的你們來說，顯然是一個薄弱的地理區域，就像對於許多其他生命科學公司一樣。

Are you baking in some sort of a recovery there in MB. into the guide in the back half, it changes in terms of the overall funding for for biopharma for by biotech and especially for cell and gene therapy we think that will be improving on a progressive basis throughout the year. And all of this is, you know, notwithstanding any geopolitical unrest or geopolitical tilting or anything. But we think given the situation that we have right now, it will be progressing on a on a on a on a progressive basis as regard to China and China is in a depression and a recession, and it could be a depression. But I think it's in a recession right now and it's going to remain in a recession for a while.

您是否正在 MB 中進行某種復原？在後半部分的指南中，生物技術對生物製藥的整體資助發生了變化，特別是細胞和基因治療，我們認為這將在全年逐步改善。所有這一切，你知道，儘管存在任何地緣政治動盪或地緣政治傾斜或任何其他情況。但我們認為，考慮到我們現在的情況，中國的情況將會逐步取得進展，而中國正處於蕭條和衰退之中，而且可能是蕭條。但我認為它現在正處於衰退之中，而且還會持續一段時間。

We don't depend on China for a lot of our volume. I mean, it's less than 4% of our total revenue is it is a more significant part of the East revenue, but we're taking action at MBE. two to do a couple of things. One, we will be manufacturing freezers and eMeta domestically in China that will take about a year to implement but we will be manufacturing them in China and meeting to meet President. She's 2025 initiative of making China buy in China. We're happy to do that. That plant has produced freezers in the past, and we have the capacity to ramp up freezer manufacturing in China. So we think that will that will help alleviate part of the situation. But China the pressure on China is going to continue for a while. We don't see China recovering this year for sure, Badri data.

我們的產量並不依賴中國。我的意思是，它不到我們總收入的 4%，因為它是東部收入的更重要部分，但我們正在 MBE 採取行動。兩個人做幾件事。第一，我們將在中國國內製造冰櫃和 eMeta，這將需要大約一年的時間來實施，但我們將在中國製造它們並會見總統。她的2025倡議是「讓中國人在中國買」。我們很高興這樣做。該工廠過去生產過冰箱，我們有能力提高在中國的冰箱產量。所以我們認為這將有助於緩解部分情況。但中國對中國的壓力還將持續一段時間。根據巴德里的數據，我們認為中國今年不會肯定復甦。

I'd just add one thing on the M on the bio services or the biopharma funding situation. So I just want to make sure everybody is aware. And obviously, the improvement in the funding for the biopharma space is a long-term benefit for us because it three and recapitalize a lot of the portfolio and allows them to reinitiate clinical programs. And but that does that's not an instantaneous benefit. The benefit is really focused around what Jerry had mentioned in his opening comments is, is all of the new and the approval activity. We see upwards of another nine therapies that may be approved. This year. And so that's because that's where you're going to start to see that significant improvement and contribution later in the year as well as the diversification of revenue into the bio services space as we had already mentioned, as well as that commercial revenue piece.

我只想在生物服務或生物製藥融資情況的 M 上添加一件事。所以我只是想確保每個人都知道。顯然，生物製藥領域資金的改善對我們來說是一個長期利益，因為它對許多投資組合進行了資本重組，並使他們能夠重新啟動臨床計畫。但這並不是立竿見影的好處。好處實際上集中在傑瑞在開場白中提到的所有新活動和批准活動。我們預計還有另外九種療法可能獲得批准。今年。這是因為，正如我們已經提到的，您將在今年稍後開始看到重大改進和貢獻，以及收入多元化進入生物服務領域，以及商業收入部分。

Got it.

知道了。

That's super helpful.

這非常有幫助。

And then just peeling back the layers at MB a little bit, Jay, can you share some color on what the order book sort of looks like, you know, how month over month things have trended that you've consistently talked of margins holding up really well in that business, even with the top-line headwinds, do you envision a situation where you need to perhaps like lean in on that pricing lever a little bit more than 24 to help nudge a high end freezer sales? And then any color on that $50 million non-cash impairment on MB in the quarter?

然後，傑伊，稍微揭開 MB 的面紗，您能分享一些關於訂單簿的情況嗎？您知道，您一直在談論利潤率保持不變的情況逐月趨勢如何即使在頂線逆風的情況下，您在該行業的表現確實很好，您是否設想一種情況，您可能需要依靠略高於24 的定價槓桿來幫助推動高端冰櫃銷售？那麼本季 MB 的 5,000 萬美元非現金減損有什麼意義嗎？

Thanks.

謝謝。

Well, yes, I'll answer the first part and Robert can answer the latter. The latter question. We don't actually comment on details on any of our business units, so I don't really want to comment on those. I can tell you that the margin has to do with a superlative management of our management team and MBE. doesn't an incredible job of managing manufacturing operations and the cost to be in line with revenue and so that the in terms of leaning on a price lever, we that's that we are always looking at our pricing. We annually. We look at our pricing and we look at it more frequently if we have, I'd need to. But I don't think we'll be leaving on that lever in any disproportionate way in the ease that healthy business. It's doing it's doing well. Even under these conditions, it continues to generate cash flow. It's a strong business and it is the dominant player and cryogenic systems manufacturer controlling some 65, 70% of the market. And so we're very confident in MVE. I'm not concerned we're in we're in this business for the long term. We're not in it for the short term.

嗯，是的，我會回答第一部分，羅伯特可以回答後者。後一個問題。我們實際上不會對任何業務部門的細節發表評論，所以我真的不想對這些發表評論。我可以告訴你，利潤與我們的管理團隊和 MBE 的卓越管理有關。管理製造業務和成本與收入保持一致並不是一項令人難以置信的工作，因此就依靠價格槓桿而言，我們一直在關注我們的定價。我們每年。我們會查看我們的定價，如果有的話，我們會更頻繁地查看它，我需要這樣做。但我認為我們不會以任何不成比例的方式在健康的業務中放鬆這一槓桿。它正在做它做得很好。即使在這些條件下，它仍繼續產生現金流。這是一家強大的企業，是主導企業和低溫系統製造商，控制著約 65%、70% 的市場份額。所以我們對 MVE 非常有信心。我並不擔心我們會長期從事這項業務。我們不會短期內參與其中。

Now Robert can comment on your question regarding goodwill impairment, absolutely.

現在羅伯特絕對可以評論你關於商譽減損的問題。

Ltc business, this is your standard accounting approach. So when you look at the non-cash impairment charge and the reduction in goodwill related to MVE Biological Solutions. The acquisition that we completed in Q4 of 2020 is really based on the drop in revenue that we've seen in Q2 of 23, which continued kind of more or less flat over Q3 and Q4 because of leveled out. And with that, we had to adjust our financial modeling and do a quantitive quantitative impairment assessment and that led to that onetime charge reducing the goodwill, no other goodwill or intangible assets were considered impaired.

LTC 業務，這是您的標準會計方法。因此，當您查看與 MVE Biological Solutions 相關的非現金減損費用和商譽減少時。我們在 2020 年第四季完成的收購實際上是基於我們在 23 年第二季度看到的收入下降，由於平穩，與第三季度和第四季度相比，收入繼續或多或少持平。因此，我們必須調整我們的財務模型並進行定量減損評估，這導致一次性費用減少了商譽，沒有其他商譽或無形資產被視為減損。

So that's really the explanation.

這就是真正的解釋。

Got it.

知道了。

That's super helpful. And then one final one for you. Gary, I know you were doing advanced therapy. We conference in Miami. Just any color on just customer feedback and traction there. And as you talk to them about perhaps some of your upcoming products or recently launched products, whether it's the HV. three ship or perhaps the Fusion 2.0, et cetera. Where do you sense the most the unmet need and excitement? And then where do you see the most traction over the next couple of years for you guys?

這非常有幫助。然後為您準備最後一張。加里，我知道你正在做高級治療。我們在邁阿密開會。只是客戶反饋和吸引力的任何顏色。當您與他們談論您即將推出的產品或最近推出的產品時，無論是 HV。三艘船或者Fusion 2.0等等。您在哪裡最能感受到未被滿足的需求和興奮？那麼，你們認為未來幾年對你們來說最有吸引力的地方在哪裡？

You know, of changes?

你知道，變化嗎？

It's a really good question, but it's a very complicated answer in the sense that we have of 20 some odd initiatives going on inside the Company, right now building out for for the future. And we are constantly reprioritizing to meet market market needs as they come up. The HV. three shipper is going to be is going to be a fantastic addition to our product line because it will reduce the total cost of shipping for the for the manufacturers on the Fusion line as it's developed and especially as we develop the 800 series, the smaller series will open up markets that we've never been in a little open up second and third floors of the Broad Institute for example to cite just one customer that I think we can cite above fusions because of plumbing issues that could get they could use it flexibly owned on higher floors.

這是一個非常好的問題，但這是一個非常複雜的答案，因為我們公司內部正在進行 20 項奇怪的舉措，目前正在為未來做準備。我們不斷重新調整優先順序，以滿足市場出現的需求。高壓。三個托運人將成為我們產品線的絕佳補充，因為隨著 Fusion 系列的開發，尤其是我們開發 800 系列（較小的系列），它將降低 Fusion 系列製造商的總運輸成本將打開我們從未涉足過的市場稍微開放布羅德研究所的二樓和三樓例如，僅引用一位客戶，我認為我們可以引用上述融合，因為管道問題可能會讓他們可以靈活地使用它擁有較高樓層。

And so that's a that's a very exciting product. The Vario, which can be, which is energy conserving energy efficient unit, can be down up and down for different temperature ranges from minus all20 the way up to two cryogenic temperatures. We have Integra sale coming on where we're going to be furnishing optimized cryo approved process for Reese's and which will standard, which will be standard and standardized.

所以這是一個非常令人興奮的產品。Vario 是一種節能高效裝置，可在不同的溫度範圍內上下調節，從零下 20 度一直到兩個低溫。我們正在進行 Integra 銷售，我們將為 Reese 提供經過優化的冷凍批准流程，並且該流程將標準化，這將是標準和標準化的。

And there will be that will be producing more robust material will be cryopreserved to allow manufacturers to insert the materials when they need when they want to as opposed when they have to from a being fresh material will be called reserve to expand manufacturing capacity to improve the quality of the therapies. That will be more consistent there will be more consistent. And this is another standard-setting thing that we're doing. And we're opening up this gene therapy business minus 80, whether with the Cryoport elite Ultra coal.

將會生產出更堅固的材料，將被冷凍保存，以允許製造商在需要時插入材料，而不是在必須時插入材料，而新鮮材料將被稱為儲備，以擴大製造能力，以提高生產效率。治療的品質。這將更加一致，將會更加一致。這是我們正在做的另一項標準制定工作。我們正在進行負 80 的基因治療業務，無論是否使用 Cryoport 精英 Ultra 煤炭。

So it goes on and on. And we just bought tech format, which I mentioned in my comments, is an incredible communications and temperature monitoring system. You know, that will start over time to tie all of our companies together and give us the most complete chain of compliance in the world from our it will be terribly exciting as it gets into that process. So those are just a few things.

所以它一直持續下去。我們剛剛購買了技術格式，我在評論中提到，它是一個令人難以置信的通訊和溫度監控系統。你知道，隨著時間的推移，這將把我們所有的公司聯繫在一起，並為我們提供世界上最完整的合規鏈，當它進入這個過程時，這將是非常令人興奮的。這些只是一些事情。

And we have levels of priority is not just one priority is levels of priority as we serve the industry we're rolling out to, of course, grow PDP in the United States. It already has a number one footprint in Asia Pac and also in India, and we're just now rolling it out in the United States. It's been underway for a while. We acquired bluebird to accelerate that. We're opening up operations to supplement that and to build out the can continue to build out that operation. So we have a host of things going on that there are meeting that are not only meeting the industry, but anticipating where the industry will be and help enabling it to to grow and to prosper, and that's both in cell and gene therapy.

我們的優先級不僅僅是一個優先級，而且是我們服務於我們正在推出的行業的優先級，當然，是為了在美國發展 PDP。它已經在亞太地區和印度佔據了第一的地位，我們剛剛在美國推出它。它已經進行了一段時間了。我們收購了藍鳥來加速這一進程。我們正在開放業務來補充這一點，並建立可以繼續建立業務的能力。因此，我們正在進行許多事情，召開會議，不僅滿足該行業的需求，而且預測該行業的發展方向，並幫助其發展和繁榮，這在細胞和基因治療領域都是如此。

Got it. Appreciate the color, guys, and best of luck with the year.

知道了。夥計們，欣賞這個顏色，祝今年好運。

Thank you very much.

非常感謝。

Puneet Souda, Leerink Partners.

Puneet Souda，Leerink 合夥人。

Okay.

好的。

Get hopefully you got me okay.

希望你能讓我沒事。

It was a much better company, right.

這是一家更好的公司，對吧。

So just then if you can help me a little bit on the on the guide, I mean came in on the lower end of the guide itself. That was flat for the year. And you are seeing some improvement in MVE., as you pointed out and sequential improvement. But China is still not improving. So, you know, sort of taking all that in.

因此，如果您能在指南上幫助我一點，我的意思是進入指南本身的下端。今年這一數字持平。正如您所指出的，您正在看到 MVE 的一些改進以及連續的改進。但中國仍然沒有進步。所以，你知道，把所有這些都考慮進去。

I guess my main question is you're implying about a 6% growth this year in 24. And what's what is actually sort of embedded in that guide is what are the levers that you think could push that 6% growth potentially higher and is there or is there enough sort of lack of better word conservatism baked into that?

我想我的主要問題是你暗示今年 24 月的成長率約為 6%。該指南中實際上包含的內容是，您認為可以推動 6% 潛在更高成長的槓桿是什麼？是否存在或是否缺乏更好的保守主義一詞？

Well, you know, we did take a conservative approach for need. And we looked at all of our business units and we built our forecast from the ground up. And certainly we think that there are some upsides that that could happen this year. There could be more therapies approved that they can read. We have our existing therapies, but therapies could ramp quicker, both of which I alluded to a little bit earlier, some of our introductions of products this year, it could be could be adopted much quicker than than we than we forecast. So we definitely have upside but we wanted to be conservative. We're not interested in disappointing anyone and we will and our business plan is around that.

嗯，你知道，我們確實根據需要採取了保守的方法。我們考察了所有業務部門，並從頭開始製定了預測。當然，我們認為今年可能會帶來一些好處。可能會有更多批准的療法可供他們閱讀。我們有現有的療法，但療法可能會更快地推廣，我之前提到過，今年我們推出的一些產品，它的採用速度可能比我們預測的要快得多。所以我們肯定有優勢，但我們想保守一點。我們不想讓任何人失望，我們會讓任何人失望，我們的商業計劃就是圍繞著這一點展開的。

Robert, would you like to comment any further on that note, I'll just say I'll echo what Jerry said.

羅伯特，你想對此發表進一步評論嗎？我只想說我會回應傑瑞所說的。

Yes, if you look again at the outlook for 24 and you look at what we've achieved and some of the key areas in 23, you can see the continuum of services revenue growing, in particular, the other commercial revenue, in particular, the BioStorage bio services revenue and those are really some of the leads. And like Jerry mentioned, there's a few new initiatives that are coming online this year. And if they ramp faster, that can contribute more more and more revenue. And again, we certainly took a conservative look, if you talk to other companies in the life science tool space areas and saying they're being cautiously optimistic and we are as well. But that's that's kind of where we stand.

是的，如果你再看一下 24 的前景，看看我們所取得的成就以及 23 的一些關鍵領域，你可以看到服務收入的連續增長，特別是其他商業收入，特別是， BioStorage 生物服務收入確實是一些領先的。正如傑瑞所提到的，今年將推出一些新措施。如果它們成長得更快，就可以貢獻越來越多的收入。再說一遍，如果你與生命科學工具領域的其他公司交談並說他們持謹慎樂觀態度，我們也是如此，那麼我們當然採取了保守的態度。但這就是我們的立場。

Okay.

好的。

That's helpful. And then just following up on PRO PDP. as well. I mean, the combined pro PDP. and MV. is still, I believe, more than 60% of your revenue. You know, could you maybe just elaborate a bit on should we start thinking about the normalized sort of growth rate at NVE. similar to what you acquired it when you, you know, at the time of acquisition and correct me if I'm wrong, it was low single digit to maybe mid single digit and Pro PDP. was not far from that.

這很有幫助。然後是 PRO PDP 的後續工作。以及。我的意思是，組合的專業 PDP。和MV。我相信，仍然佔您收入的 60% 以上。您知道，您能否詳細說明我們是否應該開始考慮 NVE 的正常化成長率。類似於你在購買時獲得的東西，如果我錯了請糾正我，它是低個位數到中個位數和 Pro PDP。離那不遠了。

So maybe just help us understand what's the normalized sort of growth rate we should to be thinking for these two, these two businesses?

那麼也許只是幫助我們了解我們應該為這兩項業務考慮的正常成長率是多少？

Once you start to fall out and I don't pair these businesses together, they're totally different businesses and they're totally serve totally different parts of the market with totally different missions.

一旦你們開始鬧翻，而我不把這些企業放在一起，它們就是完全不同的企業，它們完全服務於完全不同的市場部分，承擔著完全不同的使命。

So I'll take them one at a time on IMVE., I think once we've pulled out of this well, I think you will be able to you'll be able to assume the growth rates are maybe even a little bit better than the single digits, maybe maybe in the low double digits once it's out out of out of this well. So what we created below what created this?

所以我會在 IMVE 上一次拿一個。我想一旦我們從這口井中撤出，我想你將能夠假設增長率可能會更好一點比個位數，一旦從這口井中出來，也許會是低兩位數。那我們下面創建的是什麼創造了這個？

We do have some hypotheses. It's not you know, they're there. And I mentioned in the past that you know, there was some there was a pullback on capital expenditures. What we've all known that because the economy has been in a cautious mode for over a year with the overall global activities and capital budgets have been affected. But I also think that there was this was in our processes on my part. This is not factual, but it is about this is that there was a little bit of a buildup during the COVID period of time of capacity and that capacity is being filled up now once has been filled up you'll see that the normal rates look, biological material was being produced all of the time and is being produced in great quantities all the time. It has to be stored and there's no way to avoid it.

我們確實有一些假設。你不知道，他們就在那裡。我過去提到過，你知道，資本支出有縮減。眾所周知，一年多來，經濟一直處於謹慎模式，全球整體活動和資本預算都受到了影響。但我也認為，就我而言，我們的流程中也存在這一點。這不是事實，但事實是，在新冠疫情期間，容量有所增加，現在容量正在被填滿，一旦填滿，您就會看到正常的費率看起來，生物材料一直在生產，並且一直在大量生產。它必須被存儲，並且沒有辦法避免它。

The cryogenics are the the the way that you store that material. So it will come back and we're very confident. And MDE. is positioned in the market, its products of the way it the way it serves the market and its long-term prospects. It's there. We think they're outstanding and there will be new products and new services coming out of in the overtime as well and some diversification of revenue streams that over time.

低溫是儲存該材料的方式。所以它會回來的，我們非常有信心。還有 MDE。市場定位、產品方式、服務市場的方式、長期前景。在那。我們認為它們很出色，隨著時間的推移，也會出現新產品和新服務，並且收入來源會多樣化。

As far as cloud PDP. goes crowd, PDP. is the world's third largest specialty carrier serving biotech biopharma. It is rolling out in the United States. We've been in that process now for a while, but we did buy Blue Bird Express in order to accelerate that process. We've had 10 years experience with bluebird Express at Cryoport Systems.

至於雲端PDP。人群湧動，PDP。是世界第三大為生物技術生物製藥提供服務的專業營運商。它正在美國推出。我們已經進入這個過程有一段時間了，但我們確實購買了 Blue Bird Express 以加速這個過程。我們在 Cryoport Systems 擁有 10 年使用 bluebird Express 的經驗。

We know the quality of that operation and its people. And so we know, it's a great addition and we continue to build out in the United States. We will we will find that we will fund our momentum in the United States as we as we build out the structure and as bluebird has some impact on that growth in the United States. So it I think that the growth rates there will be a little bit in excess of what they were. There will still be in the low single digits once it finds its footing in the United States. Other parts of the world are doing fine in low double digits, Jerry, that low single digits, sorry to re-clarify, was it single digits and that's and that's what he meant.

我們了解該業務及其人員的品質。所以我們知道，這是一個很好的補充，我們將繼續在美國建造。我們會發現，當我們建構結構時，我們將為我們在美國的發展勢頭提供資金，而藍鳥對美國的成長產生一些影響。所以我認為那裡的成長率會比原來高一點。一旦它在美國站穩腳跟，這一數字仍將保持在較低的個位數。世界其他地區在低兩位數方面表現良好，傑瑞，低個位數，抱歉再次澄清，是個位數嗎？這就是他的意思。

And sorry, just clarify. That's low single digits for the US part of the business and double digits for international?

抱歉，請澄清一下。美國業務的個位數較低，國際業務的兩位數較低？

Yes.

是的。

Yes, yes, exactly.

是的，是的，完全正確。

Okay.

好的。

And just last question, if I may, just on the Alabama IVF decision, does that can you outline of what's the impact for you and what changes you have to bring about in your network for that?

最後一個問題，請容許我談談阿拉巴馬州試管受精的決定，您能否概述一下這對您的影響以及您必須為此在您的網路中帶來哪些變化？

Alabama was down was not a big impact on us. We got more publicity than we did anything else out of Alabama that we do. We do ship in and out of Alabama. And when the Supreme Court rule is it did we suspended shipments until we could understand the situation. We suspended business there, both for MVE. and Cryoport Systems and cryo as well as grow PDP. So so we did suspend business there until we got a clear reading, then a new law was passed and we opened up Alabama again. So we're doing business in Alabama. Things are business as usual in Alabama at this point, but we certainly are monitoring that situation. Just in case there's a change of mine in that state, but it was it was a it was you did create a lot of publicity.

阿拉巴馬州的下滑對我們影響不大。我們得到的宣傳比我們在阿拉巴馬州所做的任何事情都多。我們確實進出阿拉巴馬州。當最高法院做出裁決時，我們是否暫停了發貨，直到我們了解情況為止。我們暫停了那裡的業務，都是為了 MVE。和 Cryoport Systems 和冷凍以及生長 PDP。因此，我們確實暫停了那裡的業務，直到我們得到明確的解讀，然後通過了一項新法律，我們再次開放了阿拉巴馬州。所以我們在阿拉巴馬州做生意。目前阿拉巴馬州一切如常，但我們當然正在監控這種情況。以防萬一我在那個州發生了變化，但那是因為你確實創造了很多宣傳。

Okay.

好的。

Thank you, guys.

感謝你們。

John Sourbeer, UBS.

約翰‧索比爾，瑞銀集團。

Good evening and thanks for taking the question. I just wanted to dig in a little bit more on the commercial revenues. I think they slowed quarter over quarter. Any additional details you can provide there on the quarter ended.

晚上好，感謝您提出問題。我只是想多了解商業收入。我認為他們的成長逐季放緩。您可以在季度末提供任何其他詳細資訊。

Also, how do you think about the high level this ramps out over the next year, given some of the recent approvals and the outlook for approvals in 2024.

此外，考慮到最近的一些批准以及 2024 年的批准前景，您如何看待明年的高水準。

We'll let John Musk, let Robert start with giving you some factual information. And then unlike for Mark to comment on what's happening in the market because what's happening in the markets pretty exciting.

我們將讓約翰馬斯克和羅伯特首先向您提供一些事實資訊。與馬克評論市場上發生的事情不同，因為市場上發生的事情非常令人興奮。

And the latter probably is the most important because those are the drivers for the revenue in 24 and beyond. But look, if you look at the commercial revenue and we think I mentioned on the last quarterly call, when you look at our quarterly revenue look at a trailing 12 months average, but where you look at even the full year or the Q4 commercial revenue ramped into 33% to 36% growth some years. So we continue to see strong growth in commercial revenue. It's now $22 million of total revenue. So it's starting to become a more substantial portion of our services revenue, and we expect that to continue.

後者可能是最重要的，因為它們是 24 小時及以後收入的驅動因素。但是，如果你看一下商業收入，我們認為我在上一次季度電話會議上提到過，當你看我們的季度收入時，你會看到過去12 個月的平均值，但你甚至會看到全年或第四季的商業收入幾年來成長率達到 33% 至 36%。因此，我們繼續看到商業收入的強勁成長。現在總收入為 2200 萬美元。因此，它開始成為我們服務收入的重要組成部分，我們預計這種情況將持續下去。

Mark, do you want to talk about the size of the market dynamics that we're seeing?

馬克，您想談談我們所看到的市場動態的規模嗎？

Yes, yes, absolutely.

是的，是的，絕對是的。

Thanks.

謝謝。

Thanks, Robert.

謝謝，羅伯特。

Yes.

是的。

So as Robert said, I mean, looking at looking at this on an aggregate 12 months, some basis is extremely important because anytime you have new therapies launches, there's some volatility in the early phases, they start to ramp. However, the law of aggregation is what we're really looking at here, we're seeing very, very strong approval activity. And in fact, I think between the end of 23 and 24, maybe the strongest 18 months in the history of the Celgene space. From an approval standpoint, there are three BLA filings completed in Q4, which is the Adaptimmune ImmunityBio Nautilus one new approval in Q4.

正如 Robert 所說，我的意思是，從 12 個月的整體情況來看，一些基礎非常重要，因為任何時候推出新療法，早期階段都會出現一些波動，然後開始加劇。然而，聚合法則才是我們真正關注的，我們看到了非常非常強大的批准活動。事實上，我認為 23 月底到 24 月底之間，可能是 Celgene 領域史上最強勁的 18 個月。從審批角度來看，第四季完成了三份BLA備案，這是Adaptimmune ImmunityBio Nautilus第四季新獲準的一項。

We've already had two new approvals in Q one, another 17 possible filings in 2024, of which one has already been filed. We are projecting the potential of nine new therapies in 2024 plus potentially another another two already commercialized products getting earlier line approval, which will substantially increase the addressable patient population and five label extend extend expansions. And so there's a ton of activity and we already see the potential for another 11 possible filings in 2025. So that's the huge driver in oh and I think if you look at it overall that the growth rate there is going to be consistent with where the market has been with our numbers, some of the numbers that Robert had presented for the foreseeable future.

我們已經在第一季獲得了兩項新批准，另外 17 項可能在 2024 年提交，其中一項已經提交。我們預計到 2024 年將有 9 種新療法的潛力，另外可能還有另外兩種已經商業化的產品獲得更早的生產線批准，這將大大增加可尋址的患者群體和五個標籤的擴展。因此，有大量活動，我們已經看到 2025 年可能再提交 11 項申請的潛力。因此，這是巨大的驅動力，哦，我認為，如果你從整體上看，那裡的成長率將與我們的數據（羅伯特在可預見的未來提供的一些數據）的市場狀況一致。

Thanks for those details. And I believe a portion of the convertible debt is due next year, the Company has a strong cash position on the balance sheet.

感謝您提供這些詳細資訊。我相信部分可轉換債務將於明年到期，該公司的資產負債表上擁有強勁的現金狀況。

Just any color maybe for Robert, just on COMPANIES financing plans going forward?

羅伯特可能只是任何顏色，只是關於公司未來的融資計劃？

Yes, absolutely. So we're off to we're in a strong position now. We have a strong balance sheet with strong cash, some Yes, as of December end, the the convertible debt, really the substantial portion of the convertible debt is due December of 2026. So we still have some time, as I recall, in two three we did buy back some of the convert, you know, for us about $25 billion, somebody direct about $31 million. We paid about $25 million in cash for that. So we had about $5.7 million gain just because of the transaction. And we'll continue to look at some of the convert buyback. We're looking at the longer term strategy that we're still mapping out. But at this point in time, we're in a good position. As you recall, the convert asking 2.75% interest and like I said, is due in December of 26. And so we still have some time to evaluate the best options for them.

是的，一點沒錯。所以我們現在處於有利地位。我們擁有強大的資產負債表和充足的現金，是的，截至 12 月底，可轉換債務，實際上大部分可轉換債務將於 2026 年 12 月到期。因此，我們還有一些時間，我記得，在兩三分鐘內，我們確實回購了一些轉換後的股票，你知道，為我們回購了約250 億美元，有人直接回購了約3100 萬美元。我們為此支付了約 2500 萬美元現金。因此，僅僅因為這筆交易，我們就獲得了約 570 萬美元的收益。我們將繼續關註一些轉換回購。我們正在研究仍在製定的長期策略。但目前，我們處於有利位置。正如您所記得的，轉換者要求 2.75% 的利息，正如我所說，到期日為 12 月 26 日。所以我們還有一些時間來評估他們的最佳選擇。

And then last question I had was on Integra. So endo leak freeze. This question I just wanted clarification, is that currently live and then just outlook and for that segment for the year?

我的最後一個問題是關於 Integra 的。所以內視鏡洩漏凍結。我只是想澄清這個問題，目前是即時的，然後只是展望以及今年該細分市場的情況嗎？

No, it will become live in the last half of the year.

不，下半年就會上線。

Got it.

知道了。

Thanks, Rich.

謝謝，里奇。

Brandon Couillard, Jefferies.

布蘭登·庫亞爾，傑弗里斯。

Thanks.

謝謝。

This is Matt on for Brandon, appreciate all the color already on 24. I guess maybe for Jay or Robert, just talk a little bit about your guidance philosophy and visibility in 2014. I think historically, you've had the most visibility in Cryoport Systems. But from where we sit today, just the level of visibility you have across systems, MVPDP. and Kroger and then you also just remind us how much of the MP business goes through distributors today. Thanks.

這是布蘭登的馬特，欣賞 24 號上的所有顏色。我想也許對 Jay 或 Robert，請簡單談談你們 2014 年的指導理念和知名度。我認為從歷史上看，您在 Cryoport Systems 中的知名度最高。但從我們今天坐的位置來看，只是跨系統的可見性級別，MVPDP。和克羅格，然後你也提醒我們現在有多少 MP 業務是透過經銷商進行的。謝謝。

Yes, no, absolutely.

是的，不，絕對是。

No.

不。

Like we said, we did take a conservative view at creating the estimates for for the year?

就像我們說的，我們在製定今年的估計時確實採取了保守的觀點？

Tom, we do have a feel forecasts from our clients, especially for Gripen systems in terms of what their expectations are. We did trying to do a bottoms up for for our services and our product revenue to determine the revenue guidance for the year. I'm clearly, as Gerard mentioned RMB, we have to take a very conservative look at growth over the last three quarters, it's been pretty much the same level after that drop from Q1 to Q2.

湯姆，我們確實收到了客戶的預測，特別是對於「鷹獅」系統，他們的期望是什麼。我們確實嘗試對我們的服務和產品收入進行自下而上的分析，以確定今年的收入指導。我很明顯，正如傑拉德提到的人民幣，我們必須非常保守地看待過去三個季度的成長，從第一季到第二季下降後，它幾乎處於相同的水平。

And so we are taking a very conservative approach in terms of the ramp on the product revenue side. And clearly, like we mentioned, there's there's some upside opportunity on the services side driven by cell and gene therapy market in particular, both on the commercial revenue side as well as on the file storage file services side. But that's really how we approached it. And we were hoping actually that we'll be able to exceed the estimates.

因此，我們在產品收入方面採取了非常保守的方法。顯然，正如我們所提到的，在細胞和基因治療市場驅動的服務方面存在一些上升機會，尤其是在商業收入方面以及文件儲存文件服務方面。但這確實是我們的處理方式。我們實際上希望能夠超越預期。

And Brandon, your last part of your question was how much of the business is through distributors and that 70 about 70 75%. Thanks.

布蘭登，你問題的最後一部分是，有多少業務是透過經銷商實現的，這 70% 約為 70% 75%。謝謝。

And then you guys spiked out in the deck of 950 or so industry clinical trials Cryoport supporting 600, 75 or 70% of those. Is there scope for that to go higher over time? Or is there kind of a theoretical limit we should think about in terms of market share for those industry clinical trials?

然後你們在大約 950 個行業臨床試驗中脫穎而出，Cryoport 支持其中的 600%、75% 或 70%。隨著時間的推移，這個數字還有上升的空間嗎？或者我們應該考慮這些產業臨床試驗的市佔率是否存在理論上的限制？

Mark. I'm going to turn it to you.

標記。我會把它轉給你。

So yes, I mean, we're obviously always trying to capture more share. You know, the biggest driver for share capture for us over the next 12 to 18 months in this space is going to be around the negative 80 space. We launched the lead altered foam product, the middle of last year. We're already seeing substantial pickup with that product line. And historically, without a negative 80 offering or our penetration in gene therapy distribution, that mandate was manage, the negative 80 was minimal. And so this is there's some nice opportunity for upside in that space.

所以，是的，我的意思是，我們顯然一直在努力獲取更多份額。你知道，在未來 12 到 18 個月內，我們在這個領域獲得份額的最大驅動力將是在負 80 空間附近。去年年中，我們推出了鉛改質泡沫產品。我們已經看到該產品線的大幅成長。從歷史上看，如果沒有負 80 的產品或我們在基因治療分銷方面的滲透，這項任務是可以管理的，負 80 是最小的。因此，這個領域存在一些很好的上升機會。

In on the cryo side, obviously, we're moving from a 70% market share. A much higher is more of a challenge. So that's going to most of that growth will come out of come out of the market dynamics and our continued drive to capture as much of that portfolio as we can.

顯然，在低溫方面，我們的市佔率正在從 70% 的市佔率轉向。更高的挑戰更大。因此，大部分成長將來自市場動態以及我們盡可能獲取投資組合的持續動力。

The bigger thing to think about is obviously the drive into maintaining that 70 plus percent market share into commercial, which we've had a very, very good track record of doing.

顯然，需要考慮的更重要的事情是維持 70% 以上的商業市場份額，我們在這方面擁有非常非常好的記錄。

Thanks. And one last quick one for Joe. Would just love to get your updated thoughts on how you're thinking about profitability. Clearly, you've laid out a lot of growth areas that you're investing in. But as we look out into 25 and beyond, how do you think about balancing some of those growth investments and looking to turn profitable on an adjusted EBITDA basis? Thanks.

謝謝。給喬最後一個快速的。只是想了解您對盈利能力的最新看法。顯然，您已經規劃了許多正在投資的成長領域。但當我們展望 25 年及以後時，您如何考慮平衡其中一些成長投資並尋求在調整後的 EBITDA 基礎上實現盈利？謝謝。

Well, the way I think about them upfront is all all the projects that we undertake. All the initiatives that we have going on are they they withstand financial scrutiny. And so and they are accretive. And so when I said earlier, you know, we constantly are reprioritizing those initiatives and they are they will start to roll out just as the the lead Ultraco just just rolled out, you'll see the HV. three rolling out soon. You'll see Entegris over the last half of this year and you'll see more more progress on the Fusion product and so forth. So so I think very positively about them. They're going to have a going to have a revenue impact. They're going to have profitability impact.

嗯，我預先考慮的方式是我們承擔的所有項目。我們正在進行的所有舉措都經得起財務審查。所以它們是增值的。因此，當我之前說過時，您知道，我們不斷地重新調整這些舉措的優先順序，它們將開始推出，就像領先的 Ultraco 剛剛推出一樣，您會看到 HV。三款即將推出。今年下半年您將看到 Entegris，您將看到 Fusion 產品等方面的更多進展。所以我對他們的看法非常正面。他們將對收入產生影響。它們將對盈利能力產生影響。

Super. Thank you.

極好的。謝謝。

Thank you, Randy.

謝謝你，蘭迪。

David Larsen, BTIG

大衛‧拉森，BTIG

I think I heard you say in your prepared remarks that you were generating some revenue from from our genetic services. I think you said a client was storing some product in anticipation of Eligen AX. And but I heard you also say that they were using Entegris. So did I hear that correctly? And just any thoughts there on the progress at Allergan actually making the market would be very helpful. Thank you.

我想我聽到你在準備好的發言中說你從我們的基因服務中獲得了一些收入。我想您說過客戶正在儲存一些產品以等待 Eligen AX。但我聽說你也說他們正在使用 Entegris。那我聽對了嗎？對於艾爾建 (Allergan) 實際取得的進展的任何想法都會非常有幫助。謝謝。

We have one supporting already supporting a fairly large portfolio of allogeneic therapies, constitute nearly 30% of our overall portfolio. So it's a substantial number of products in that product to those activities.

我們已經支持相當大的同種異體療法組合，占我們整體組合的近 30%。因此，這些活動涉及該產品中的大量產品。

Go from from, like you said, storage through distribution as it stands today. And tech resell, as Jerry had mentioned, is not only the doors are not open there on those facilities that they'll open in the second half of this year. However, we're already very heavily engaged with our clients. We already have clients going in and auditing the facilities even before the doors are open and we have the relationship that Gerry also mentioned in the prepared remarks with the MDP. or National Marrow Donor Program who which we're teaming up with them where they're going to be managing all the donor recruitment. And we'll be doing all the cryopreservation through our facility in Houston for the United States on behalf of MDP. So and that's all focused around Eligen contributions.

正如您所說，從存儲到分發，就像現在一樣。正如傑瑞所提到的，技術轉售不僅是他們將在今年下半年開放的那些設施的大門還沒有打開。然而，我們已經與客戶進行了非常深入的接觸。甚至在大門開放之前，我們就已經有客戶進入並審核設施，我們與 Gerry 在準備好的演講中也提到了與 MDP 的關係。或國家骨髓捐贈計劃，我們正在與他們合作，他們將管理所有捐贈者的招募。我們將代表 MDP 透過位於美國休士頓的設施進行所有冷凍保存工作。所以這一切都集中在 Eligen 的貢獻上。

Okay, great. And then what should we expect for commercial revenue growth going forward is 30% to 40% per year reasonable? And how would you expect these new therapies that are now commercially available to ramp in terms of, you know, revenue contribution? Any thoughts there would be great. Thank you.

好的，太好了。那麼，我們對未來商業收入每年增長 30% 到 40% 的預期應該是多少才算合理呢？您如何看待這些現已上市的新療法在收入貢獻方面的成長？任何想法都會很棒。謝謝。

Yes, I guess I can tell it.

是的，我想我能說出來。

Yes.

是的。

So from my perspective, the easiest way for you guys to look at the ramp associated with any given therapy is to go to through the audit, the analyst reports for those therapies. And for those companies, right, they do a lot of diligence on the space and come back and provide their guidance as it relates to projected ramp any we do get forecasts from all of our clients as it relates to commercial, but it's not something that we can disclose publicly.

因此，從我的角度來看，對於你們來說，查看與任何給定療法相關的斜坡的最簡單方法是通過審計，分析師對這些療法的報告。對於這些公司來說，是的，他們在這個領域做了很多調查，然後回來提供他們的指導，因為這與預計的坡道有關，我們確實從所有客戶那裡得到了與商業有關的預測，但這並不是什麼我們可以公開揭露。

However, with the portfolio that's in place today, and all of the filing activity that we are seeing ongoing through late 23 and through 24, I think the rates that you guys have been seeing historically and where that we saw in Q4, 33% year over year. You know that that 30 plus range is probably in a reasonable expectation for commercial revenue for the next couple of years.

然而，根據今天的投資組合，以及我們看到的所有申請活動一直持續到 23 月底和 24 日，我認為你們在歷史上看到的利率以及我們在第四季度看到的利率為 33%一年多了。您知道，30 以上的範圍可能是未來幾年商業收入的合理預期。

And then just one last quick one. Demand for large freezers within MVE., just any more color there would just be very helpful. Thanks.

然後是最後一個快速的。MVE 內對大型冰櫃的需求。只要有更多的顏色就會非常有幫助。謝謝。

again to our desire demand in the E is normalized is it's no different than historical patterns with them.

再次符合我們的願望，E 中的需求已標準化，這與它們的歷史模式沒有什麼不同。

The mix, David.

混合，大衛。

Okay. Thanks a lot. I'll hop back in the queue. Thank you.

好的。多謝。我會跳回到隊列中。謝謝。

Thank you.

謝謝。

Yuan Zhi, B. Riley Securities.

袁志，B.萊利證券。

I'm Jerry. Probably there are a lot of biotech companies pivoting sales therapy from kind of their treatment to ultimately new India-based. I'm curious if this applications or clinical trials in autoimmune disease have meaningfully help the crowd port this campaign itself.

我是傑瑞。可能有很多生物技術公司將銷售療法從他們的療法轉向最終基於印度的新療法。我很好奇這種在自體免疫疾病中的應用或臨床試驗是否能有意義地幫助人們推動這項運動本身。

They're in clinical trials mostly, but we do see a lot of promise there. Obviously, it's an area where the market's looking a lot at our CAR-Ts are expanding beyond oncology a lot of promise there. We're seeing some of the results of the early trials, Phase one Phase two come out with promise. So there's upside there, absolutely looking at it and it is part of our clinical trial pipeline.

它們大多處於臨床試驗階段，但我們確實看到了許多希望。顯然，這是一個市場非常關注我們的 CAR-T 的領域，我們的 CAR-T 正在擴展到腫瘤學之外，並且有很多前景。我們看到了早期試驗的一些結果，第一階段和第二階段的結果是有希望的。因此，絕對有好處，它是我們臨床試驗管道的一部分。

Got it. Another question related to your recent acquisitions. Can you share any update from the integration of bluebird Express as well as tax reform since the acquisition?

知道了。另一個問題與您最近的收購有關。您能否分享一下藍鳥快遞整合以及收購以來稅務改革的最新情況？

Well, the acquisition, the Bluebird it, Andrew fit like a hand in glove because it's we've known bluebird for a long time. So it's Joe. It's in process there's no, there's no nothing, nothing more to say about that, that it's in process and that the integration of the operations are moving along very, very well and then pick from increment, Al, you mentioned tech permit as well. I guess what was your question about?

嗯，收購 Bluebird 吧，Andrew 非常適合，因為我們已經認識 Bluebird 很久了。所以是喬。它正在進行中，沒有，沒有什麼，沒什麼可說的，它正在進行中，並且操作的整合正在非常非常順利地進行，然後從增量中進行選擇，阿爾，你也提到了技術許可。我猜你問的問題是什麼？

Okay. So okay. So tech protect format is quite interesting that for me, it is a is a German company that we acquired. It is some It offers communication and temperature monitoring systems that are quite advanced and that that too is in process. It's been we're looking at the impact that tech format has on our SmartPack, I mean, on our Skytrax condition monitoring system project and most likely those two will be moving intersecting and moving together.

好的。那麼好吧。所以技術保護格式對我來說非常有趣，它是我們收購的德國公司。它提供了非常先進的通訊和溫度監控系統，並且也在進行中。我們一直在研究技術格式對我們的 SmartPack 的影響，我的意思是，對我們的 Skytrax 狀態監測系統專案的影響，很可能這兩者將交叉並一起移動。

But physician software advantages there. And also, I think the tech permit has it stands independently as well. So it's got independent orders coming in. And then I think, thirdly, I think it will serve as an integrating tool, as I mentioned in my comments earlier throughout the Company over time. So it will take some time to do all these things. But we are really excited about tech from it contact center for them?

但醫師軟體的優勢就在那裡。而且，我認為技術許可證也具有獨立性。所以它有獨立的訂單進來。然後我認為，第三，我認為它將作為一個整合工具，正如我之前在整個公司的評論中提到的那樣。因此，完成所有這些事情需要一些時間。但我們真的對他們聯絡中心的技術感到興奮嗎？

No, back end.

不，後端。

Yes, the industry feedback on tech from it has been resoundingly positive as well.

是的，業界對其技術的回饋也非常積極。

Got it. Thanks for the additional color there, and that's all my questions.

知道了。感謝您提供的額外顏色，這就是我的所有問題。

Thank you.

謝謝。

Paul Knight, KeyBanc.

保羅奈特，KeyBanc。

Jerry, on the you had mentioned the 70% market share. I mean, what's the alternative I guess is they do it themselves or another commercial vendor? What's the biggest piece of that 30?

傑瑞，您剛才提到了 70% 的市佔率。我的意思是，我猜他們自己做還是其他商業供應商做的替代方案是什麼？這 30 塊中最大的一塊是什麼？

Is it themselves or your margins are wildly what it is that I know that's a that's a global basis on policy. You have you have one large lower in manufacture in China. You have a large European manufacturer in India. And then you have a number of then you have one smaller operation in Germany and then you have a number of small small operations kind of like job shops I think it was talking about clinical trial percentage, not empty. Is I thought you were doing it in the E.

我知道這是政策的全球基礎，是它們本身還是你們的利潤率太高了。中國的製造業下降了一大塊。印度有一家大型歐洲製造商。然後你有很多，然後你在德國有一個較小的工廠，然後你有很多小型的小型工廠，有點像加工車間，我認為這是在談論臨床試驗百分比，而不是空的。我以為你是在 E 區做的嗎？

So yes, we have kept our clinical trials and what I want to turn that to Tom because he is the expert on clinical tests.

所以，是的，我們保留了臨床試驗，我想把它交給湯姆，因為他是臨床試驗的專家。

Thanks, Terry. There are alternatives. We're not a monopoly out there. There is competition. It's the same competition that's been around for years at some of our partners that we go to work with every day, especially carriers that are using either MVE.s from a product or somebody else has to compete with us, but we stand on our merits. We stand on the quality of our product, our market-leading position, all of our commercial customers, our chain of compliance and everything else we do. That's what separates us.

謝謝，特里。還有其他選擇。我們不是那裡的壟斷者。有競爭。在我們每天工作的一些合作夥伴中，這種競爭已經存在多年，尤其是使用產品中的 MVE.s 的運營商，或者其他人必須與我們競爭，但我們堅持自己的優點。我們的產品品質、市場領先地位、所有商業客戶、合規鏈以及我們所做的一切都是我們的立足點。這就是我們的不同之處。

And that 70% is in reality higher than that because we do have a lot of the specialties that subcontract equipment through us for programs that they're supporting that we don't have visibility on. So the effective number is going to be higher than that 70%. We just don't know that exact number Okay.

事實上，70% 比這個數字還要高，因為我們確實有很多專業人士透過我們將設備分包給他們支援的項目，而我們對此卻看不到。所以有效數量將高於70%。我們只是不知道確切的數字好嗎。

And then on Animal Health was down year over year.

然後動物健康方面逐年下降。

Could you comment on that?

你能否對此發表評論？

And then in the is down year over year, but you're saying what that stabilizing at this juncture?

然後逐年下降，但你是說此時此刻穩定下來的是什麼？

Yes, animal health and MBO directly correlated. So if you look at the product size of the markets, this is the the reduction in revenue of the drop in revenue is really driven by the drop in MB revenue. So Animal Health and biopharma both have been impacted by EMV and what we've seen in Q2 through the throughout the remainder of the year.

是的，動物健康與 MBO 有直接關係。因此，如果你看一下市場的產品規模，你會發現收入下降的收入減少實際上是由 MB 收入下降造成的。因此，動物保健和生物製藥都受到了 EMV 的影響，以及我們在第二季和今年剩餘時間內所看到的情況。

Okay, thank you.

好的謝謝。

Are there are no further questions at this time. I would hand over the call to Jerrell Shelton.

目前沒有其他問題了嗎？我會把電話轉給傑瑞爾謝爾頓。

Please go ahead.

請繼續。

Thank you for your questions. And our discussions in closing, our 2023 results were within our guidance range and our expectations. While product revenue was lower than historical levels and the revenue begin to stabilize in the latter part of the year, and that has continued into early 2024.

謝謝您的提問。最後，我們的討論表明，我們 2023 年的業績在我們的指導範圍和預期之內。雖然產品收入低於歷史水平，但收入在下半年開始趨於穩定，並且這種情況一直持續到2024年初。

Services revenue continued to become a larger part of our business, led by growth in bio storage, BioZ services and commercial cell and gene therapy. We think 2024 will be a year of progressive advancement as more therapies move toward commercialization.

在生物儲存、BioZ 服務以及商業細胞和基因治療成長的帶動下，服務收入繼續成為我們業務的重要組成部分。我們認為，隨著更多療法走向商業化，2024 年將是進步的一年。

In addition to our operating results in 2023. We continue to make strategic investments and establish important relationships to drive our long-term growth. We signed a number of new clients and brought new products and services to market. All of these actions continued to expand our ability to serve the cell and gene therapy industry globally and open up new revenue streams.

除了我們 2023 年的經營業績。我們繼續進行策略性投資並建立重要的關係，以推動我們的長期成長。我們簽署了許多新客戶並將新產品和服務推向市場。所有這些行動繼續擴大我們為全球細胞和基因治療產業提供服務的能力，並開闢新的收入來源。

Barring any geopolitical breakdown, we think our outlook of a progressive improvement progressively improving market in 2024 is well founded as an established industry leader that leads the way and providing vital supply chain support to the life sciences industry. We intend to continue to grow in importance and to benefit from the growth of the cell and gene therapy industry as it becomes an even greater proportion of our business. Thank you for joining us today. We appreciate your continuing support and interest in our company, and we look forward to updating you on our progress again next quarter. We hope you have a good evening.

除非出現任何地緣政治崩潰，我們認為，作為一個既定的行業領導者，我們對2024 年市場逐步改善的前景是有根據的，該領導者引領生命科學行業並為生命科學行業提供重要的供應鏈支持。我們打算繼續提高重要性，並從細胞和基因治療行業的成長中受益，因為它在我們業務中所佔的比例更大。感謝您今天加入我們。我們感謝您對我們公司的持續支持和興趣，我們期待在下個季度再次向您通報我們的進展。我們希望您度過一個美好的夜晚。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。