Provider of products and services for the gene therapy cell industry Cryoport (NASDAQ: CYRX) tanked in pre-market trading at the time of writing on Thursday after the company reported preliminary results and expects second-quarter earnings between $56.5 million and $57.5 million while FY23 revenues are projected to range between $233 million and $243 million.
The company’s Q2 revenues are projected to decline year-over-year by 11% at the midpoint reflecting “weaker than expected global demand for capital equipment; clinical trial start delays; and slower than expected ramps from certain clients.”
Jerrell Shelton, CEO of Cryoport, commented, “The impact to our business from the factors outlined above was abrupt and significant. We are, however, positive about our long-term outlook as the cell and gene therapy industry is expected to grow at a ten-year compound annual growth rate (CAGR) in excess of 22%. Our view is strengthened by the large number of Cryoport clients that have BLA (Biologic License Applications) and MAA (Marketing Authorization Application) filings and approvals planned or pending with the FDA (U.S. Food and Drug Administration).”
Analysts remain bullish about CYRX stock with a Strong Buy consensus rating based on a unanimous five Buys.
