Q4 2020 Cryoport Inc Earnings Call
Thank you for standing by this is the conference operator welcome to the Cryo part Inc. Year end 'twenty 'twenty earnings call as.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star and zero I would now like to turn the conference over to Todd Fromer managing partner of.
K C. S day. Please go ahead.
Thank you operator before we begin today I would 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 of forward looking statements. These forward looking statements are based on management's beliefs and assumptions.
And not on the information currently available to our management team. Our management team believes these forward looking statements of reasonable out of them would be however, you should not place undue reliance on any such forward looking statements because such statements speak only as of the day when we do not undertake any obligation to publicly update or revise the depots.
Statements, whether as a result of new information or future events or otherwise except as required by law. 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 our present expectations or projections the.
These risks and uncertainties include but are not limited to those described in item one a risk factors and the elsewhere in our annual report on form 10-K filed with the Securities and Exchange Commission and those described from time to time and the other reports, which we file with the Securities and Exchange Commission. It is now my pleasure to turn the call over to Ms.
The Jerrell Shelton Chief Executive Officer of cloud ports, Jerry the floor is yours.
Thank you Todd good afternoon, ladies and gentlemen, we appreciate your joining our earnings call today.
With me. This afternoon is our Chief Financial Officer, Ms Roberts, Jovanovich, and our Chief Scientific Officer, Dr. Mark Sawicki, and our Vice President of corporate development in the Investor Relations Thomas Hines.
As a reminder, we have uploaded our 'twenty 'twenty year in review document to our website. It can be found under the Investor Relations section in the events and presentation section. This document provides a review of our recent financial and operational performance and general business outlook. If you have not had a chance to read it.
I'd encourage you to go to the website and download it.
As with previous quarters on this conference call. We will provide you with a brief general update and then we will move to addressing your questions regarding our company's results.
Okay.
2020 was a historic year for cryo port, culminating in a transformational fourth quarter during which we continued to effectively execute our strategy and significantly strengthened our global platform by closing on two milestone acquisitions.
The strategic acquisitions provide our client base for the ability to leverage our ever expanding supply chain continuum as we extend the breadth of their relationship the crowd port, whom they have grown to trust with their irreplaceable cold chain therapies and materials.
But that is not all of it happened let me set the stage by a brief review of some of our accomplishments during the year.
The following points, we raised a total of $390 million through of $115 million convertible debt financing and by issuing a $275 million convertible preferred to Blackstone group.
To support the acquisitions of crowd of PDP and M. B E biological solutions as well as for the further build out of our competencies.
We acquired Cryo PDP establish the foundational network of logistics centers in EMEA and APAC.
We acquired in the biological solutions the number one producer of cryogenic C.
Systems worldwide further establishing crowd port as the number one in the end provider of temperature controlled supply chain solutions for the life Sciences industry.
With the two acquisitions, we have expanded our global presence to 30 locations located in 13 countries.
Net where it gives us a new advantage when serving global multinational customers and also provides redundancies and backup that reduces supply chain risks for our customers.
We initiated the build out of two additional fully integrated by the services and logistics centers.
Both of which will be online in 2021.
We opened our first fully operational joined the operated logistics center for crowd Port systems of crowd PDP in Osaka, Japan.
We renewed and extended our commercial relationships with Novartis and Gilead.
The number of cell and gene therapies, we support grew two six.
Including the global launch of Vms is rich Jan here.
On the on the R&D front. The highlight of 2020 was the expansion of our cryo Port certified cool line of shippers and solutions to support all temperature ranges from minus 82 control room temperature, including the cryo port elite shipper and advanced proprietary.
And scientifically designed ultra ultra coal shipper, and a revolutionary and patent pending crowd sphere of shipper.
Expected to be launched during the second half of 2021.
Okay.
We ended with cash and cash equivalents and short term investments of $93.3 million and in it in January of 'twenty 'twenty. One we completed an underwritten public offering led by Morgan Stanley Jefferies, Leerink and U B S raising net proceeds of $270 million.
As a result of the strategic milestones crowd Port is now positioned if other leverage our global platform with a family of companies that provide mutually reinforcing global market, leading temperature controlled supply chain solutions for the life Sciences.
Our financial results reflected the strong performance and our continued momentum in these markets, we serve especially in cell and gene therapy.
<unk> revenue for the fourth quarter of 'twenty 'twenty increased to $48 4 million compared to $9 2 million for the fourth quarter of 2019 of year over year gain of 423% with organic growth of 36% the.
Total revenue for the full year 2020 increased to $78 $7 million compared to $33.3 million for the full year 2019 of year over year gain of 132% with organic growth of 26%.
In summary crop were delivered.
We surpassed our business and financial goals for 2020, despite the challenges of the of the environment due to COVID-19, staying true to our of course of creating leading new market new markets through technology innovation.
We focused on differentiated solutions services and products suited to the complexities and pressures of the life sciences temperature controlled supply chain challenges.
And with that I'd like to turn this call over to the operator to open the lines for your questions.
Yes.
Thank you.
We will now begin the question and answer session.
And the question queue you May Press Star then one on your telephone keypad.
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Our first question comes from Puneet.
With SBB Leerink. Please go ahead.
Yeah, Hi, Jerry and Robert Thanks for the question. So the first one is could you elaborate of.
And the if there was the step down sequentially from the third quarter of the fourth quarter. It just wasn't clear in the release and then can you elaborate on the Covid contribution from any vaccines during the quarter as well.
Well yesterday.
Actually there was a step up in the fourth quarter for the East MBE met our expectations and is doing very well and we'll continue to do so we have a nice backlog in AR and the transition has been very smooth.
In terms of of contribution from Covid, We as you know we support about a 16 is at 16 29.
29 is 29 29 clinical trials.
Related to Covid. Some of those are fair there are of therapies and some of them are of cures.
And you know, we do some re I seeing or replenishment for for.
Coldness in some parts of the world, but we don't play of main role in Covid, we are of cell and gene therapy company and we've stayed focused on that on that one that are of that competency.
So just following up on that I mean, it should we not expect any COVID-19 contribution for the entire year. Despite you being involved in a number of true.
And therapeutic share.
For the it'll be mellow about it will be minimal puneet it won't be anything major for sure.
Okay and this question is.
Maybe for just the Robert as well as in terms of.
The you know I know you Havent traditionally provided guide, but at this point in time, we the.
The business is fairly large with the MBE and cryo PDP total revenue so.
Maybe just help us elaborate you know.
Help us understand if if.
The combined MBE and cryo PDP or separately should they be growing at least 10% or higher and and wondering if you're comfortable with the consensus which is very close to about.
200 volume.
For for the full year is that something that we could.
Expect.
Going forward for for the whole year.
Yes, I think yes, thanks, Puneet I think we've talked about it in the past a little bit in terms of the revenue synergies and the the growth potential for N. The biological solutions and then also cryo PDP and crowd of Pnp and specific with the synergies created together with the <unk> systems. So I think in general terms of analysts.
Spectation for the year, where we're comfortable with analysts' expectations in terms of the growth and the change in growth rate from the historic growth rates that obviously will happen over time, so you'll see you'll see of the actions that we're taking bear fruit throughout the year the chi.
Change the profile of that they've historically had and the big driver of that is honestly the cell and gene therapy space and then some of the synergies that we've already identified.
In terms of giving guidance you know that's something that we do discuss on a regular basis.
At this point of time, we're not giving guidance and the real reason around that is because of the dynamics in the regenerative medicine space and Celgene therapy space that continues to be our core focus.
And this market is at the very early stages of growth, but we will certainly revisit that overtime.
As the market grows and matures to see what type of guidance, we'll give going forward.
Okay, and just clarifying the first question Robert but.
And the there.
There's the step down in gross margin. So I just wanted to find out.
Was that largely a strength and step down in gross margin than the corporate gross margins is that largely due to N V E.
And was there a step down our of step up actually from third quarter, the fourth quarter sequentially per M D.
I think if you look at at at N V and cry of PDP of their margin profiles are different.
If you look at the legacy business legacy business has been performing on par with what the past.
And then you have the the margin profiles of the fraud, PDP, which is lower and N V, which is slightly lower.
Drive revenue drive the margin for Q4 down again, that's another area that we believe we can we can achieve higher margins specifically because if you look at for example, cryo PDP.
That is now moving into the cell and gene therapy space, which is the higher vol.
<unk> you.
Kind of a high quality and touch solution. There is opportunities for margin increase and the services offering the cloud PDP brings to the table.
Okay got it in the last one if I could then I'll hop back into the queue of I'm wondering if you're expecting any impact from the fintech load this year.
Thank you.
The impact for us and take all the minimal on our overall revenue.
It is a it is an orphan product so it doesn't have.
Significant volume at this moment in time.
The impact of obviously, the new notices out there to us it doesn't look like it's a it's an Ed said more of a patient's specific it's not a therapy specific issue.
And so based on what we've heard through the layer.
Conference and others by the CEO of Bluebird day don't anticipate of being a long term issue in either the way.
Okay. Thanks.
The next question comes from Brandon Couillard with Jefferies. Please go ahead.
Hey, Thanks, good afternoon.
Good afternoon.
Hey, Gerry if you look at the commercial Biopharma revenues were about flat I believe in the fourth quarter sequentially for.
How did that compare to your expectations and then secondly, now that you have five commercial programs. There you started last year with just two.
How should we think about growth of this line item in 'twenty one.
Well I'll, let mark why don't you take that yes. So.
What we're going to see is all of these therapies operate in a stepwise fashion. So the early launch obviously of the Novartis and type products.
Of that initial transition over the last three years you know they they in the geographies that they were supporting the they started to hit of patient absorption of their manufacturing capacity. So the overall growth rate on those is normalized a bit.
With the card is coming online in the middle of last year as well as Briana Z from BMS, which is a larger volume product.
They'll have a much larger contribution to growth this year and so we do anticipate that our overall growth rate as it relates to commercial will pick back up significantly this year.
Versus what it was the end of last year.
Hey, Brandon just to correct. The there are six commercial therapies, we're supporting that five now correct. There is the orchard product out. There also that was approved at the end of last year, yes, but I mean the <unk>.
Both of the Bluebird in the Orchard products are orphan products of their smaller volume. So they won't have as as market of an impact.
But the beyond the and the day Cardis launch will have a bigger impact on obviously topline for commercial.
Okay. Thanks for that clarification Tom.
In terms of the new logistics centers that you opened the Japan and Singapore.
For those preexisting the PDP locations have you built out liquid nitrogen capabilities there.
And you.
You talk about any incremental planned investments and other logistics centers do you expect to make over the course of the 'twenty one.
Well Brandon as they both of our new new locations we relocated.
Our.
Our Singapore operation with the crowd of PDP and then the the.
Osaka, Japan location as a new location. They both also of course are our.
Outfitted to handle liquid nitrogen and all cryo port products.
And then of course, we have the two supply chain centers that are being developed in the.
And Morris Plains and in Houston.
And we will be developing over over this next year where logistics.
Locations, but it's.
It's premature for me to tell you exactly where they are but we will keep you up to date on those from those on the development.
Okay, Great I'll hop back in queue. Thanks.
The next question comes from Andrew the Silver with B Riley Securities. Please go ahead.
Hey, good afternoon, I hope everyone's well and thanks for taking my questions also sorry, I'm still going over that 2020 interview back.
But could you just start by.
Just kidding me on what support entails for COVID-19, vaccines and therapeutics. So historically with logistics for example.
Manage the entire process and are the larger install logistics provider and how do we think about.
The quiet for its legacy business Cryo gene Cryo PDP as it relates to that.
And then kind of segment and the two parts, particularly interested if the therapeutic for the vaccine or actually of cell and gene therapy.
Should we think about that as more of a legacy.
What are your entire control the entire process.
<unk>.
Andy Andy I want to make a few of.
First of all of this good question and I'll make a few comments and I'll turn it to doctors of wiki. So.
The first off we are not focused on.
On Covid.
Covid vaccines, our focus is on cell and gene therapy.
Within the life Sciences.
All of our skill sets and capabilities are definitely transferable and could be used in that way, but when you think about vaccines youre thinking about massive distribution and you're thinking about the.
The the manufacturers are thinking about economies in the way they get those things those vaccines out.
We're dealing with quite something that's quite different were dealing with irreplaceable.
The cell and gene therapies, and our our services are not the least expensive on the market.
Even though our skill sets are totally transferable and then the fact of the matter is we have consulted with a number of states and authorities, including Warped speed on.
On the project, but.
But we don't expect anything significant coming from Covid in terms of betting the ranch are betting our future on Covid, that's not our game our game as cell and gene therapy as I said, we do support the 26th.
Miles in cell and gene therapy. Some of those are the therapeutics in some of those are cures.
And with that said Mark do you have anything to add to the.
Gerry So it's actually 29 programs.
And largely our support comes out of the opportunistic relationships that we have of with our existing client base as well as folks that have come in and so in many cases, the Alaska, just maybe do some sort of storage aspect of the drug product from a clinical or vaccine basis.
It may be something some limited distribution requirements for height or challenging distribution lanes or it could be things like re icing, Brian already replenishing dry ice and in the field.
No.
The late Gerry you said, our focus is not on on capturing a very low margin very large volume business line, that's not our in our wheelhouse. Our focus is on those those ultra.
Altra high touch requirements and support elements.
So how about if any of the cell and gene therapy. For example that is also a COVID-19 therapeutic I guess, that's really the cell and gene therapy.
Cryogenic, yes, there was a challenging therapy that had a cryogenic storage of distribution requirement the.
Likelihood of us being involved will be much higher.
And we are involved with would you mind.
Alright.
But it's just not pervasive and it's not with the the ones that have been released Andy.
Maybe I can.
I absolutely understand.
This is Tom sorry to borrowers and the cell and gene side not on the vaccine side. It's on the treatment side trying to keep those folks that have COVID-19 from passing away or for staying in the hospital for a lengthy time, so thats, where youre seeing the.
I'll call. It the cellular play the vaccine side is either like the J&J the the traditional vaccine or an mrna vaccine, but those are in high volume and <unk>.
Cell therapy.
Okay useful color. Thank you.
And then just looking at the fourth quarter, and then kind of.
Comparing of chicken from the previous question.
Alright.
You almost hit $50 million for the quarter of consensus is that $200 million for the year historically, one of the cadence of the Dan.
All of the new year starts in the progressing from material growth off of the fourth quarter of the previous year.
Is there any reason to think Watson deviate this year or was there any significant kind of one time revenue benefits during the fourth quarter of 'twenty that we should be kind of thinking about it isn't we can't layer on new initiatives and build out of our revenue for 2021 on 'twenty.
Yeah no. Thanks, Andy look overall I think we were very satisfied with the Q4 revenue results. We had strong grew.
Growth in revenue for for our Cryo part of legacy of the Grubhub systems and Cryo gene.
And we had strong results from cryo, PDP and MBA biological solutions compared to their revenue historically and then also in terms of of what our expectations were.
So that just first and foremost of especially looking at the first quarter. After the transaction is completed I think zone.
Very good results in terms of looking into 2021 the.
Only thing that you should have in mind is there is a lot of seasonality in some of the businesses. So you look at MBA there may be some seasonality in terms of the purchasing.
But ultimately as we said you know in terms of revenue growth, we expect revenue growth of where we're comfortable with the projections from the analysts.
That's all I can say at this point.
Okay.
Last question just as it relates to the commercial revenue I know that you were talking about this.
The previous questions, but.
Should we expect most of the growth from commercial revenue in 2021 to come out of the.
Established products, primarily give me Kim Ryan Scott or should we expect most of the growth year over year from commercial launches that are really just starting I guess, Garda and Bristol Myers squibb of some products.
So theres two factors. So factor one is an existing product line is expansion of their global global capacity right. So if you look at kite gilead, they're launching of new facility in Maryland, Frederick Maryland. This year, if you look at novartis or launching of new facility in Stein, Switzerland, This year as well as announced many of.
Factoring partnerships in Australia for example.
So based on when net capacity comes online the legacy products should see increasing revenue associated with volume around that capacity increase and then combine that with the obviously the new product launches.
Z being obviously, the most evident from a volume base standpoint.
Will that will definitively have.
The increasing contribution to the overall number.
Yeah.
Okay perfect. Thank you very much thanks for taking my questions and good luck going forward.
Thank you Sandy.
The next question comes from Richard Baldry with Roth Capital. Please go ahead.
Thanks, if we looked at pro forma as of the three separate entities sort of prior cash integration too.
Kind of approach color of breakeven zone, one and the he was pretty solidly adjusted EBITDA positive.
Against that backdrop can you talk about how much the current quarter or December quarter profitability sort of inhibited by integration issues, how quickly the company could sort of resurfaced the level of profitability and would of had sort of three entities or are there some initiatives for spending and growth the kind of.
It should take us backwards a bit first as a combined company before we move forward again thanks.
Rich sets of.
Really good question and I want to make a few comments and then turn it to Robert.
As I've said before we certainly didn't buy these companies.
For the for what they had been doing we bought them for what they will do and what they do for crown port and carrying out its mission.
Both companies if you if you if you look at that they were part of both companies both crowd PDP in MBE, where part of very large companies and as such they were insignificant and in fact.
We know they're not much attention was paid in terms of direction support et cetera.
And we were able to appeal of al that we were able to get a spinoff now within the crop port within crowd port in the E and cryo PDP are very important the strategic as a matter of fact and so.
And they will play a role in and crowd port as we March forward and cell and gene therapy in the cell and gene therapy advance so.
So theyre going to be performing differently than they've ever performed in the past and all of that as well as Mark said earlier. It takes time, our roberts of debt, but it does take time to make these transitions, but we will make those transitions and you'll see all of the metrics.
Moving in a positive and upward direction and Youll see the topline growth rate accelerates youll see the margins change because of because they will be participating with crowd port and a much more much more.
Important way in markets that they here to for either not participated in or participated in on a very limited basis, so with that I'm going to turn it to Robert.
Yes, yes, and just to clarify acreage, where we say it takes timing of this is just life sciences and it is regulated we're obviously moving forward very aggressively if you look at Q4 and the full year of 2020, we had acquisition and integration costs of roughly $12 million for the year.
And for $4 million for the quarter that includes also a step up of inventory that really only impacted Q4 and will not impact.
The net financials going forward. So you can eliminate some of those additional charges the the intangibles or you'll just look at the adjusted EBITDA alone you will see that for the year, we were around breakeven, but for Q4, we were about $3 9 million in positive EBITDA.
So you already see out of a solid debt profile pushing through to the bottom line I think going forward as Jerry mentioned debt certainly there'll be some investments made to make sure of the platform is ready for for a more aggressive growth growth profile, but I think we're also very keen on maintaining the.
The high EBITDA contribution.
Net <unk> was able to drive historically and continue with one of the very similar profile.
And then just for clarification.
Go ahead.
No you finished range.
On the Unquiet PDP you already talked about the growth driver being out of their focus on cell and gene. They are there to some extent also piggybacking on <unk> systems, allowing us to offer a broader solution to our existing client base in the cell and gene therapy space and kind of the higher margins and adjusted revenues that will be.
Are you bringing in in 2021.
Maybe just to finish at that point, then is there ways that youll be able to communicate with investors sort of over the near term intermediate term about successes, you're having accelerating the the two acquired entities are.
Pulling them into the cell and gene therapy space so that.
While we look at a blended growth rate that will come down just mathematically we can start to understand the successes you've had integrating the two or will it be pretty difficult to sort of break away any key metrics debt kind of help us along that path.
Rich.
You'll see that in the and certainly in our overall results.
But the way we manage the business.
It won't lend itself to to just.
Just going after.
Individual components of the business day.
There are there is a family of companies do we do operate in we do have metrics and so forth, but we were also careful and mindful of the environment that we're working in so.
We will keep that in mind, we will do what we can do to help you understand that in the future of.
But I'm not sure exactly what those measures Robert do you have anything to add to that no I think we understand that debt investors want to understand how the acquisitions are progressing and what impact they have on corporate consolidated so we'll certainly look at at indicators and means to be able to to drive the.
The theme as well, especially in the early stages.
Post the acquisition, we do want to make sure that investors understand the value that these acquisitions bring to cry upward and then so we'll look at indicators that will provide that information.
Thanks.
The next question comes from David Saxon with Needham. Please go ahead.
Yes, good afternoon, and thanks for taking the questions.
My first is just on the margin profile of the the combined business.
You've talked about expecting to see a dip in the gross margin.
Obviously, you saw that this quarter.
But you have the expectation of.
You know getting to your longer term goal of 60%.
First I guess can you just help us think through the the cadence to that 60% and then on the operating.
Margin, you're targeting 20 million in cost synergies from the cryo PDP acquisition. So.
How should we think about that is as you know of linear path over the next call it five years or so.
And then in 2021, specifically the consensus is I think around you know of low to mid single digit operating margin.
So is that something that's reasonable.
Your view.
No the number of questions there I'd appreciate it.
Look I think in terms of the gross margins.
Youre already framed it correctly, we didn't expect.
Combined lower margin because of the day.
Profiles of the each of the companies bring to the table and we will seek to driving that up it will happen over time and this is not something of that was going to happen within the next few quarters, but certainly you will be able to see some margin improvements based on.
Yes the decline.
Our client.
Client base as well as the overall value of our solution that we're bringing to market.
I think thats, probably the on the margins as much as I can say at this point in time I think I think there's one other thing it doesn't there Robert also that we've identified David <unk>.
$100 million.
Of synergies over five years and there was one of those synergies will not be linear I mean, there is nothing in this in this business of the life Sciences is linear, but but we are on a pathway to achieving that already just in one quarter.
The things are moving in that direction. So we will we will achieve that over over the next over the next five years debt $100 million of synergy and you'll also see.
Crowd PDP moving more.
Or into the cell and gene therapy space.
As we as the benefit from being a part of crab port of.
Part of crop or the egg and Youll see some of the same thing happening in any of the east so.
Again as to Roberts point everything in this business has to be validated.
Let's just say that cryo PDP is working with.
Our Io port systems on a particular project it still has to be validated just because it's working for <unk> systems doesn't mean, it's going to be instant. So it has to be validated and so all of that takes time.
Just there's just a requirement in the life sciences for surety and for making sure that.
Efficacy efficacy has delivered an and condition of our control.
If that makes sense and then just to add to that in terms of that debt.
The line of thought what that does create though is since Scrubboard systems. As an example is in the credit.
Client partner.
We've been bringing the cryo.
Quiet PDP.
Into our client base quicker than we otherwise could.
Then because of life Sciences is regulated once you're in you're in it's a very strong relationship and strong retention as we've shown in the past with our current client base.
Got it that's helpful and any any comment on consensus thing.
Mid single digit operating margin.
Again, I think where we're assessing kind of our path forward from.
From from my perspective, without giving guidance, where we're certainly expect the the margins to improve and overall work again, we're comfortable with the the analysts.
As a whole.
Okay got it and then David David One other thing, though you really you really should look at us as as market leaders and continuing to be market leaders. So our number one initiative is all around market share and being in and just in anticipation.
<unk> market needs just enough that we.
We're always the leader in the market so.
So look at look at market share first we're not racing we will be profitable, but we're not racing to profitability, we could be profitable.
Instantly at any time.
But it's all about market share and keeping up with the growth and opportunities in the marketplace.
Got it that's helpful.
Then when you bought N V. I think you said about 70% of of their sales through distributors. So can you talk about any plans.
About converting that to more of a direct sales channel.
And.
If that is the case.
Much of the margin.
Benefit that would have or price.
I mean I don't have a plan is yes, we don't we don't have plans to convert the distributor network into a direct of direct sales force I mean that distributor system has extensive it's an extensive and sensitive.
The network for the company, we will enhance it but.
But we will not replace it.
Okay, very clear and sorry, if I missed this in the document posted but can you just talked about the hour.
Look for prior port for BLA, and MAA filings for 2021 and potential catering for.
Of the approvals alright, thanks, so much.
And so as we had mentioned of our currently sitting at six.
<unk> therapies that we're supporting we anticipate upwards of another potentially 21 filings in 2021, and we had a.
The total of the seven net were filed in the second half of last year.
All of last year, I'm, sorry, yes.
Great. Thank you for the cadence is definitely starting to pick up.
The next question comes from Jacob Johnson with Stephens.
Please go ahead.
Hey, yeah. Thanks for taking the questions maybe first question on MBE.
Not mistaken I think there are some new products coming from them can you just remind me what these were when they will launch and maybe how much they could add to growth at M. D.
One of the new the new products that youre, referring to of the is the <unk> the <unk>.
Multiple multiple.
Temperature freezer DAU from minus 20, all the way down to minus 196 in the second product you were talking about is fusion and fusion as a <unk>.
Self sustaining liquid nitrogen powered freezer that never has to be refilled of replenished with the liquid nitrogen and we have another size of that.
Coming out very shortly.
And we haven't disclosed the impact of either of those on a revenue yet.
Okay got it and then Jerry you got I think something north of $300 million of cash Youre acquisitive last year should we expect the M&A in 2021, and maybe if so can you just remind us of your M&A criteria and the capabilities you'd like to add.
But what you should expect is that we continue to carry out our mission. We established our mission six years ago, our strategy six years ago, and we continue to carry that out.
And that's what you should expect and so that will be a combination of of robust organic growth.
Acquisitions, if they if they are available it takes it.
It takes the seller and a bar and so we can't always map out when acquisitions will be available. We do have a robust pipeline of acquisition candidates and we are discussing.
The relationships with people all the time of that can go all the way from.
From customer to strategic partnership to.
Two acquisition so.
So that's about as much as I can tell you about that of the kind of acquisition that we're looking for.
Both of the vertical and the horizontal so we will we will look at adjacency adjacent spaces to packaging and.
Logistics expertise and software are informing our informatics.
And we will look at those in more depth and we'll look at tactical acquisitions that could make sense to us and as well as strategic acquisitions, we want them to be well run we want them to be accretive and we want it to be a situation where management wants to stay on with.
The companies and continue to propel the company's debt hopefully are already on our growth the growth profile.
So we're looking for healthier accretive companies to add to our portfolio when they when they meet our requirements for carrying out our strategy.
Got it I'll leave it there thanks for taking the questions.
The next question comes from Mike <unk> with Keybanc capital markets. Please go ahead.
Good afternoon, guys. Thanks for the time here today.
Starting off with Marc with the 'twenty one filings expected. This year, you know I'm looking at the company of less than it seems like there's a fair amount of companies without the currently approved products on the market. So you know how many commercial new commercial therapies do you expect it to support versus kind of market expansion side of your <unk>.
Currently supported products.
That's difficult to absolutely ascertained like you said I mean, a lot of these companies in the space.
Don't have a historical track record of product approvals.
However, that's offset by the FDA being a little bit more inclined to move forward with these types of projects and programs.
Based on the nature of the criticality of the need in the space.
<unk>.
From our perspective, we anticipate multiple additional approvals, but I can't really speculate beyond that for you.
Because obviously, we don't control of the FDA and we don't control.
The end.
Those specific entities. All we can do is ensure that we're fully prepared to support any filing and commercialization activity that they engage on.
Their behalf.
Alright, guys, probably also add I wouldn't be surprised if some of them got obscene.
Of our buy larger pharma or biopharma.
Very helpful and then Jerry or at least maybe for Mark two but.
Talking to the new Shepherd launched I think that'll be more targeted for gene therapies and the minus ADC range.
Can you kind of just talk to the uptake of that and is it the targeted towards more of your existing clients, who are going to shift over from all of our storage temperatures or is the kind of new customer acquisition there.
Okay.
Well, it's kind of interesting that the the product was actually designed and developed in conjunction with of our was one of our clients.
Who helped who is specifically in the gene therapy space and took a look of the market and felt that there was nothing sufficient on the market to be able to support their activity on a very aggressive portfolio from a rollout basis.
So we worked with them jointly on on the developmental aspects.
The product itself will be significant and differentiating into the market space and is.
Designed to support actively bulk.
Both viral vector distribution as well as gene therapy clinical and commercial distribution.
Great. Thanks for the time guys.
Thank you Andrew.
Our next question comes again from Puneet <unk> with SBB Leerink. Please go ahead.
Hey, guys.
Thanks for taking multiple questions today and I appreciate that you answered a number of them in.
We see a number of efforts underway on your new product launches and temperature ranges.
What I think I wasn't clear on is the split of MBE into animal health in the MBE separately. So you did almost $7 million in the animal health and <unk>.
Robert Please correct me if I'm wrong on that.
Just wanted to get of.
Quick follow up from you on how sustainable is that of animal health business. I mean, this is a sizable business now.
And given the potentially competitive nature and the lower margin nature of it of how sustainable is this business under a and B E.
Longer term thank you.
Well of Puneet. This is this is exactly where in the east started this business.
In animal husbandry.
Highly sustainable part of the business, it's been this way for something like <unk>.
50 years.
So.
We are very very confident and comfortable of that part of the business. We we dominate that part of the business, having an extremely high share of that market. So we're comfortable with it.
Yes, just to add I think the animal health space is one area. We will you will see synergy activity between Kraft Port systems in MBE over time based on the nature of both the bulk of the relationship to that market.
Okay.
Okay. Thank you guys.
Thank you.
This concludes the question and answer session.
I would like to turn the conference back over to Jerry Shelton for any closing remarks.
Thank you very much operator, and thank all of you for your questions.
The terrific dialog in.
We appreciate them.
We've entered 2021 in the strongest position we've ever been in.
With an unrivaled leadership position in animal health reproductive medicine, and especially Biopharma pharma markets as a result of our ingenious team of people investments and expanded footprint. We are of very broad reach within the industry and are dedicated to continuously scaling our business with focus and purpose.
I am confident that we have the unique capabilities competitive moat.
Needed to execute.
Needed to extend our support and commercial regenerative medicine therapies around the globe as those anticipated therapies come to market.
To further advance our leadership position within the industry, we are continuing to invest in enhancing our platform by developing best in class highly differentiated and specialized solutions that are redefining the temperature controlled supply chain for the life sciences industry and providing the best services possible to our clients.
<unk>.
Overall, we are delighted with the way the company performed in 2020 with 36% organic growth in the fourth quarter and 26% for the full year, we delivered robust growth and we continue to see increasing traction in the regenerative medicine industry as we close the year supporting a total of 520.
Eight trials and six commercial therapy of agreements.
Strategically our two acquisitions position us well for excellent growth in 2021.
With robust indications across the life Sciences, we anticipate that 2021 will be another excellent year for our company.
We want to thank you for joining us today until the next meeting call. We bid you a good evening.
This concludes today's conference call.
You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Yeah.
Okay.
Yes.
Okay.
Yes.
Yeah.