Q4 2024 BioLife Solutions Inc Earnings Call

March 3, 2025

Today's call is being recorded.

Speaker Change: I would now like to turn the conference call over Detroit, Luxor, and Chief Financial Officer of Biolife solutions. Please go ahead. Thank you operator, good morning, everyone and thank you for joining the Biolife solutions 2020 for fourth quarter earnings Conference call on this call. We will cover business highlights financial performance for the quarter and full year 2024.

And present 2025 revenue guidance.

Speaker Change: Earlier today, we issued a press release announcing our financial results.

Speaker Change: Additional highlights for the fourth quarter and full year of 2024, and 2025 revenue guidance, which is available at Biolife solutions dotcom.

Speaker Change: As a reminder, during this call we will make forward looking statements.

Speaker Change: These statements are subject to risks and uncertainties that can be found in our SEC filings.

Speaker Change: Good morning, ladies and gentlemen, and thank you for standing by.

These statements speak only as of the date, given and we undertake no obligation to update them.

Speaker Change: Welcome to the BioLife Solutions Q4 2024 Shareholder and Analytics Conference Call.

Speaker Change: We will also speak to non-GAAP or adjusted results reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release, we issued this afternoon.

At this time, all participants are in a listen-only mode.

Roger Graef: Now I'd like to turn the call over to Roger Graef, Chairman and CEO of BIOLASE.

Roger Graef: Good morning, and thank you for joining us for <unk> fourth quarter and full year 2024 conference call.

Roger Graef: 24 was a pivotal year for Biolife.

Roger Graef: Over the last 12 months, we strategically reshaped our portfolio, establishing biolife as a leading pure play enabler of cell and gene therapies strengthening our long term growth trajectory and unleashing the attractive financial profile of our streamlined operations.

Roger Graef: We executed in our core business evidenced by quarterly sequential cell processing revenue growth.

Roger Graef: <unk> Q4, bringing.

Bringing us to five consecutive quarters of growth and exceeding the high end of our already raised full year guidance for that platform.

Roger Graef: In parallel we repositioned the company and optimized our portfolio.

Divesting non core product lines to drive gross margin and adjusted EBITDA margin expansion.

Roger Graef: By completing the sale of two freezer product lines in our bio storage business, we not only emerged much more focused operationally, but also with a stronger and cleaner balance sheet, which when combined with positive cash flow from operations makes us self sufficient.

Roger Graef: Believe we are better positioned today than at any other time in our long history.

Roger Graef: The summary look at our 2020 for results from continuing operations when compared with our as reported results in 2023 highlights the positive material impact to our go forward financial profile. These divestitures of hat.

Roger Graef: Although total revenue in 2024 was $82 million compared with $143 million in 2023 due to divestitures, our GAAP gross margin doubled from 31% and 23 to <unk>, 62% and 24, which generated absolute GAAP gross margin dollars of 50.

Roger Graef: $1 million compared with $44 million in 2023.

Roger Graef: Our adjusted EBITDA in 2024 was positive $16 million or 19% of revenue.

Roger Graef: Paired with negative $5 million in 2023.

Roger Graef: We also doubled our cash balance with the sale of non core assets, ending 2024 with $109 million in cash compared with $45 million in 2023.

Roger Graef: While also paying down $5 million of principal on our $20 million.

Roger Graef: Year end 'twenty three bank debt.

Roger Graef: We have a strong foundation in place, our self sufficient and well positioned strategically and financially moving into 2025.

Roger Graef: Moving to the fourth quarter results, our cell processing platform revenue was $20 3 million up 7% over Q3, and a year over year increase of 37%.

Roger Graef: For the full year cell processing revenue totaled $74 million, a record high increasing 12% when compared to 23, driven by high single digit growth in bio preservation media or BPM and higher percentage growth in our other tools, although from a much smaller base.

Roger Graef: In Q4 and for the full year, our top 20 customers continue to represent approximately 80% of our BPM revenue.

Roger Graef: With about 40% coming from distribution versus 60% direct.

Roger Graef: Approximately 36% of total BPM revenue came from those customers with the commercial therapy with the caveat that a portion of that demand is likely going to clinical pipeline programs and process development validation versus patient dosing. These metrics are in general consistent with what we saw in 2023.

Roger Graef: At the end of 'twenty four our BPM was utilized in a total of 17 unique cell and gene therapies and during the year. We had a combined total of 17 unique therapy approvals geographic expansions additional indications or earlier lines of treatment.

Roger Graef: As we have previously stated we believe our BPM products are utilized and 70 plus percent of relevant commercially sponsored CGT trials in the U S and at this point, we have not been able to identify any commercial freeze media used in this set of clinical trials. So homebrew formulation continues to remain the only.

Roger Graef: Form of competition.

Roger Graef: To drive sustained growth in our cell processing business a key commercial priority. This year is to continue to deepen our relationship with existing BPM customers, both in commercial and clinical trial settings.

Roger Graef: While leveraging those partnerships to create cross sell opportunities and increased adoption of our broader cell processing portfolio.

Roger Graef: For instance, while our Celsius vials are already incorporated in an established commercial therapy.

Roger Graef: <unk> utilized in numerous clinical trials there is a significant opportunity to scale these products over time.

Roger Graef: See this is a significant mid to long term growth lever as additional products integrated into commercial therapies can materially enhance our revenue potential.

Roger Graef: Said differently. If these products are specced into a commercial therapy that can increase our revenue per patient dose by a factor of two to three X compared to our BPM products alone.

Roger Graef: As we enter 2025, we are cautiously optimistic that the modest improvement in the underlying industry fundamentals that emerged in 2024 will continue.

Roger Graef: Respect to the 2025 guidance, we issued this morning, we anticipate an acceleration of growth when compared to the 8% realized in 2024.

Speaker Change: While leveraging those partnerships to create cross sell opportunities and increased adoption of our broader cell processing portfolio.

Roger Graef: We expect total 2025 revenue of 95 $5 million to $99 million, representing growth of 16% to 20% compared to 2024 with.

For instance, while our Celsius vials are already incorporated in an established commercial therapy and.

Speaker Change: And utilized in numerous clinical trials there is a significant opportunity to scale these products over time.

Roger Graef: With growth, primarily driven by our cell processing platform.

Roger Graef: We anticipate that cell processing revenue will grow between 18% to 21% to $86 five $2 $89 million largely due to projected increases in BPM sales to our commercial CGT customers.

Speaker Change: We see this as a significant mid to long term growth lever as additional products integrated into commercial therapies can materially enhance our revenue potential.

Speaker Change: Differently. If these products are specced into a commercial therapy that can increase our revenue per patient dose by a factor of two to three X compared to our BPM products alone.

Roger Graef: We expect this in turn will drive solid adjusted EBITDA margin expansion for the full year.

Roger Graef: Now I'll hand, the call over to Troy, who will provide an overview of our full 2024 results in 25 guidance Troy.

Speaker Change: As we enter 2025, we are cautiously optimistic that the modest improvement in the underlying industry fundamentals that emerged in 2024 will continue.

Troy: Thank you Rod today, we will be reviewing current and prior period financials from continuing operation for Q4, 2024, which excludes financial results from Sterling decisive and CBS.

Speaker Change: Back to the 2025 guidance, we issued this morning, we anticipate an acceleration of growth when compared to the 8% realized in 2024.

Speaker Change: We reported total Q4 revenue of $22 7 million, representing an increase of 31% year over year.

Speaker Change: We expect total 2025 revenue of 95, 5% to $99 million representing growth of 16% to 20% compared to 2024.

Speaker Change: The year over year increase was primarily related to a 37% increase in our cell processing platform.

Speaker Change: Evo and <unk> platform revenue for Q4 was $2 4 million a decrease of 200000 or 8% from the same period in 2023.

Speaker Change: With growth, primarily driven by our cell processing platform.

Speaker Change: We anticipate that cell processing revenue will grow between 18% to 21% to $86 five $2 $89 million largely due to projected increases in BPM sales to our commercial CGT customers.

Speaker Change: GAAP gross margins for Q4, 2024 was 60% compared with 53% in Q4 2023.

Speaker Change: Adjusted gross margins for the fourth quarter was 63% compared with 63% in the prior year.

Speaker Change: We expect this in turn will drive solid adjusted EBITDA margin expansion for the full year.

Speaker Change: Adjusted gross margin was in line with prior year due to an increase in revenues offset by product and customer mix.

Speaker Change: Now I'll hand, the call over to Troy, who will provide an overview of our full 2024 results in 25 guidance Troy.

Speaker Change: GAAP operating expenses for Q4, 2024, or $24 8 million versus $24 4 million in Q4 2023.

Troy: Thank you Rod today, we will be reviewing current and prior period financials from continuing operations for Q4, 2024, which excludes financial results from Sterling decisive and CBS.

Speaker Change: Adjusted operating expenses for Q4, 'twenty four totaled $15 million compared with $15 4 million in the prior year.

Troy: We reported total Q4 revenue of $22 7 million, representing an increase of 31% year over year.

Speaker Change: GAAP operating loss for Q4, 2004 was $2 1 million versus $7 6 million in the prior year or.

Troy: The year over year increase was primarily related to a 37% increase in our cell processing platform.

Speaker Change: Our adjusted operating loss for the fourth quarter of 2024 was <unk> 7 million compared with $5 1 million in Q4 2023.

Troy: Evo and <unk> platform revenue for Q4 was $2 4 million a decrease of 200000 or 8% from the same period in 2023.

Speaker Change: Our GAAP net loss was $2 million in Q4, or <unk> <unk> per share compared to $7 2 million or <unk> 16 per share in the prior year.

Troy: GAAP gross margins for Q4, 2024 was 60% compared with 53% in Q4 2023.

Speaker Change: The decrease in operating loss and GAAP net loss was primarily due to increased revenue and decreased personnel costs, including stock based comp. This.

Troy: Adjusted gross margins for the fourth quarter was 63% compared with 63% in the prior year.

Troy: Adjusted gross margin was in line with prior year due to an increase in revenues offset by product and customer mix.

Speaker Change: This was partially offset by an increase in performance based bonus accrual. In addition to increased accounting fees related to divestitures and socks.

Troy: GAAP operating expenses for Q4, 2024, or $24 8 million versus $24 4 million in Q4 2023.

Speaker Change: Adjusted EBITDA for the fourth quarter of 2024 was $4 million compared with $3 7 million in the prior year.

Troy: Adjusted operating expenses for Q4 of 24 totaled $15 million compared with $15 4 million in the prior year.

Speaker Change: Our adjusted EBITDA increased primarily due to higher revenue, partially offset by $900000 increase in socks consulting and accounting related fees due to divestitures, which we expect to be lower in future periods. After Q1 2025.

Troy: GAAP operating loss for Q4, 24 was $2 1 million versus $7 6 million in the prior year.

Troy: Our adjusted operating loss for the fourth quarter of 2024 was <unk> 7 million compared with $5 1 million in Q4 2023.

Speaker Change: Turning to our balance sheet.

Speaker Change: Our cash and marketable securities balance at December 31, 2024 was $109 2 million compared with $34 1 million at September 32024, and $52 3 million at December 31 2023.

Troy: Our GAAP net loss was $2 million in Q4, or <unk> <unk> per share compared to $7 2 million or <unk> 16 per share in the prior year.

Speaker Change: Taking into consideration our adjusted EBITDA of $4 million our increase in cash during Q4, 2024 was primarily related to the divestitures of <unk> and CBS.

Troy: The decrease in operating loss and GAAP net loss was primarily due to increased revenue and decreased personnel costs, including stock based comp.

Troy: This was partially offset by an increase in performance based bonus accrual. In addition to increased accounting fees related to divestitures and socks.

Speaker Change: Our SCB long term debt balance at December 31, 2024, it was $15 million compared to $20 million at December 31, 2023, with quarterly repayments of $2 5 million moving forward.

Troy: Adjusted EBITDA for the fourth quarter of 2024 was $4 million compared with $3 7 million in the prior year.

Speaker Change: Turning to 2025 revenue guidance.

Troy: Our adjusted EBITDA increased primarily due to higher revenue, partially offset by $900000 increase in socks consulting and accounting related fees due to divestitures, which we expect to be lower in future periods. After Q1 2025.

Speaker Change: Revenue is expected to be $95 5 million to $99 million, reflecting an overall growth of 16% to 20% over 2024.

Speaker Change: Our cell processing platform is expected to contribute $86 5 million to $89 million or 18% to 21% growth over 2024.

Troy: Turning to our balance sheet.

Troy: Our cash and marketable securities balance at December 31, 2024 was $109 2 million compared with $34 1 million at September 32024, and $52 3 million at December 31 2023.

Speaker Change: Our Evo and <unk> platform is expected to contribute 9 million to $10 million or 3% to 15% growth over 2024.

Speaker Change: We expect adjusted gross margin for the full year to be in the mid <unk>.

Troy: Taking into consideration our adjusted EBITDA of $4 million our increase in cash during Q4, 2024 was primarily related to the divestitures of <unk> and CBS.

Speaker Change: A reduction in GAAP net loss.

Speaker Change: And expansion in adjusted EBITDA margin in 2025 due to higher expected revenue, partially offset by increases in R&D expenses related to development projects.

Troy: Our SCB long term debt balance at December 31, 2024 was $15 million compared to $20 million at December 31, 2023, with quarterly repayments of $2 5 million moving forward.

Finally in terms of our share count as of February 24, 2025, we had 47 million shares issued and outstanding and 49 million shares on a fully diluted basis.

Troy: Turning to 2025 revenue guidance.

Speaker Change: Now I'll turn the call back to the operator to open up for questions.

Troy: <unk> revenue is expected to be $95 5 million to 99 million, reflecting an overall growth of 16% to 20% over 2024.

Speaker Change: Thank you we will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Troy: Our cell processing platform is expected to contribute $86 5 million to $89 million or 18% to 21% growth over 2024.

Speaker Change: This question has already been addressed I would like to remove yourself from Hugh Please press Star then two.

Pause for just a moment, while we assemble our roster.

Speaker Change: Yeah.

Troy: Our Evo and <unk> platform is expected to contribute 9 million to $10 million or 3% to 15% growth over 2024.

Speaker Change: And today's first question comes from Matt.

Speaker Change: Please please go ahead.

Speaker Change: Okay. Thanks, maybe first one just on the margins.

We expect adjusted gross margin for the full year to be in the mid sixties a.

Speaker Change: Particularly EBITDA margins any.

Troy: A reduction in GAAP net loss and expansion in adjusted EBITDA margin in 2025 due to higher expected revenue, partially offset by increases in R&D expenses related to development projects.

And a final point you can put around the continued expansion I think you talked about the <unk>.

Speaker Change: Roofing topline and mixed dynamics, there, but also some.

Speaker Change: Investment dollars into R&D. So you just talk a little bit about the pacing of that continued expansion through the year and then any color you know, maybe where we might look to exit the year here in 25 on the EBITDA margins.

Troy: Finally in terms of our share count as of February 24, 2025, we had 47 million shares issued and outstanding and 49 million shares on a fully diluted basis.

Matt: Yes, sure Matt I'll take that one so.

So if you look at some of the commentary we made in the earnings call.

Troy: Now I'll turn the call back to the operator to open up for questions.

There was abnormal I would say more onetime in nature type costs, and G&A being related to Sox and the divestiture accounting cost thereof, which we'll see some leakage of that in Q1, but if you take that Q4 number as a good jumping off point for 2020 for SG&A that'd be a good jumping off point and then for R&D, We didn't mentioned.

Troy: Thank you.

Troy: Now begin the question and answer session.

Troy: To ask a question you May press Star then one on your telephone keypad.

Troy: This question has already been addressed I would like to remove yourself from Hugh Please press Star then two.

Troy: Pause for just a moment, while we assemble our roster.

Troy: And today's first question comes from.

Matt: Some development projects, we're working on so if you take that Q4 2023 baseline for R&D that'd be a better baseline than Q4, 2000 2004 due to those development projects and then as far as EBITDA margin expansion, Yes, we would expect that pretty steady throughout 2025 as far as increase.

Jeffrey: Jeffrey Please go ahead.

Speaker Change: Okay. Thanks, maybe first one just on the margins.

Speaker Change: Particularly the EBITDA margins any kind of finer point you can put around the continued expansion I think you talked about the improving top line and mix dynamics, there, but also some.

Matt: And compared to 2024 into that mid <unk> that we mentioned.

Speaker Change: Investment dollars into R&D. So you could talk a little bit about the pacing of that continued expansion through the year and then any color you know, maybe where we might look to exit the year here in 25 on the EBITDA margins.

Matt: Okay. Thanks, that's helpful and then.

Speaker Change: Rod you know you talked about the revenue opportunity to increase two to three X by cross selling the portfolio beyond just media, obviously that doesn't happen overnight. It sounds like it's a big focus in 25 can you just kind of talk about either the products, where the customers where youre seeing the most potential.

Speaker Change: Yes, sure Matt I'll take that one.

Speaker Change: So if you look at some of the commentary we made in the earnings call.

Speaker Change: There was a abnormal I would say more onetime in nature type costs, and G&A being related to Sox and the divestiture accounting cost thereof, which we'll see some leakage of that in Q1, but if you take that Q4 number as a good jumping off point for 2025 for SG&A that'd be a good jumping off point and then for R&D, we didn't mention.

Matt: Do that and when can we can maybe start to see some of the.

Speaker Change: The benefits of that cross selling of the portfolio overtime here.

Matt: Sure well thanks.

Matt: For recognizing that it definitely takes some time right because our media market position is so strong and so large that for us to start to.

Speaker Change: And some development projects, we're working on so if you take that Q4 2023 baseline for R&D that'd be a better baseline than Q4 2024 due to those development projects and then as far as EBITDA margin expansion, yes, we would expect that pretty steady throughout 2025 as far as increase.

Matt: Come close to that is going to take multiple years that said, we have a commercial customer large company that utilizes both cryo store and our crowd sealed vials and Theyre approved therapy and Thats to us the poster child of what something should look like on top of that they are evaluating.

Speaker Change: And compared to 2024 into that mid Twenty's that we mentioned.

Speaker Change: Okay. Thanks, that's helpful and then.

Matt: Our automated Phil system as they're focused on automating in a closed system their manufacturing process theyre looking at that piece of hardware, which really drives a lot of consumables as well. So it's really about targeting the clinical trial customers that we have directing the half a dozen <unk>.

Speaker Change: Rod you know you talked about the revenue opportunity to increase two to three X by cross selling the portfolio beyond just media, obviously that doesn't happen overnight. So I think it's a big focus in 2005 can you just kind of talk about either the products, where the customers where youre seeing the most potential to do that and when can we can maybe start to see some.

Matt: <unk> force salespeople that we have to those accounts and put a focused push on introducing those products. We do have opportunity in our later stage commercial customers and the one I mentioned is one example, there is another one where we have good traction on our cryo case evaluation, which again was.

Speaker Change: The.

Speaker Change: The benefits of that cross selling of the portfolio overtime here.

Speaker Change: Sure well, thanks for recognizing that it definitely takes some time right because our media market position is so strong and so large that for us to start to.

Matt: Last year.

Speaker Change: Come close to that is going to take multiple years that said, we have a commercial customer large company that utilizes both cryo store and our crowd sealed vials and Theyre approved therapy and Thats to us the poster child of what something should look like on top of that they are evaluating.

Speaker Change: Not for their commercial product because as with the media as you get further down the clinical development chain to a commercial product then you end up making it extremely difficult and costly to make a switch like that particularly on a container for the end product for the final drug product.

Speaker Change: We are in discussions with them about introducing crossed oriented their commercial into their clinical pipeline, which is not insignificant. So we're going to attack. It from both sides. The early stage, where it's less expense or less expensive and easier to switch and on the pipeline for the commercial therapy customers and just to clarify Rodman to say cryo.

Speaker Change: Our automated Phil system as they're focused on automating in a closed system their manufacturing process theyre looking at that piece of hardware, which really drives a lot of consumables as well. So it's really about targeting the clinical trial customers that we have directing the half a dozen.

Speaker Change: Snack cryo store.

Speaker Change: <unk> force.

Speaker Change: Thank you <unk>, yes.

Speaker Change: Salespeople that we have to those accounts and put a focused push on introducing those products. We do have opportunity in our later stage commercial customers and the one I mentioned is one example, there is another one where we have good traction on our cryo case evaluation, which again was introduced last year.

Speaker Change: Thank you that makes sense.

Speaker Change: Yeah. That's helpful. I appreciate it guys.

Speaker Change: Great.

Ed <unk>: And our next question comes from Ed <unk> with Keybanc capital markets. Please go ahead.

Ed <unk>: Hi, This is Anna on for Paul Knight I wanted to ask on the momentum you are seeing in cell processing platform you mentioned.

Ed <unk>: Fifth quarter of consecutive growth, so maybe just a little bit into what is driving this growth.

Speaker Change: Increased visibility.

Ed <unk>: Is it any one.

Speaker Change: <unk> therapy or is it the overall health of the industry improving.

Rodman: <unk> crossed oriented their commercial into their clinical pipeline, which is not insignificant. So we're going to attack. It from both sides. The early stage, where it's less expense or less expensive and easier to switch and on the pipeline for the commercial therapy customers and just to clarify Rodman to say cryo case, not cryo store for the inbox. Thank you.

Speaker Change: You bet Ana. Thanks, So we are seeing on the start with the non non approved therapy. So the clinical.

Speaker Change: Trial group of customers is slightly ahead, and we expect slight growth there.

Speaker Change: Distribution, we expect to see some growth, but the fundamental driver we see for bio preservation media and cell processing General in 25 is that group of 17 <unk>.

Speaker Change: Crowd case yet.

Speaker Change: Thank you that makes sense.

Speaker Change: Yeah. That's helpful. I appreciate it guys.

Great. Thank you.

Speaker Change: Commercial customers that we have.

Ed: Thank you and our next question comes from Ed <unk> with Keybanc capital markets. Please go ahead.

Speaker Change: In our base, that's where the bulk of the.

Speaker Change: The revenue growth is going to come from in 'twenty five.

Ed: Hi, This is Anna on for Paul Knight I wanted to ask on the momentum you are seeing in cell processing.

Speaker Change: Perfect and then could we get an update on your outlook over the long term in terms of adjusted EBITDA margins now that we've moved pasture and product lines and the pro forma business is coming into focus.

Jason: You mentioned Jason.

Jason: Fifth quarter of consecutive growth.

Jason: So maybe just a little bit into what is driving this growth.

Jason: Increased visibility.

Jason: Is it any one approved therapy or is it the overall health of the industry and through that thanks.

Speaker Change: Yes, sure. So like we said for the full year 2025, we would expect mid twenties for adjusted EBITDA, and then going outward, it's really highly dependent on media growth. As you know there is a tremendous flow through on the revenue for media. So we could model out media growth at certain percentage points with that flow through.

Jason: Thanks.

Jason: You bet Ana. Thanks, So we're seeing on the start with the non non approved therapy. So the clinical.

Jason: Trial group of customers is slightly ahead, and we expect slight growth there.

Speaker Change: Of call it 65% on revenue to get to an expanded EBITDA margin with not huge increases in opex. So if you do model that out you can get to the <unk> court in 2026 timeframe towards the end of 'twenty six middle of 'twenty six.

Jason: Distribution, we expect to see some growth, but the fundamental driver we see for bio preservation media and cell processing General in 25 is that group of 17 commercial customers that we have.

Jason: In our base, that's where the bulk of the.

Speaker Change: Thank you.

Jason: The revenue growth is going to come from in 'twenty five.

Speaker Change: Thank you and our next question comes from Chad why that Charles.

Speaker Change: TV Cowen. Please go ahead.

Chad Whyte: Hey, guys just wanted to dig in on sort of immediate growth.

Speaker Change: And maybe less so for 2025.

Speaker Change: Mentioning it's going to be approved therapy is driving growth, but just at a higher level.

Speaker Change: When you look at like catalysts and clinical trials in some of these newer modalities are expanding into larger indications could you just speak to maybe how media is used.

Speaker Change: <unk> between like a gene therapy car T cell based therapy.

Speaker Change: How biolife is positioned to benefit respectively.

Speaker Change: Call it 65% on revenue to get to an expanded EBITDA margin with not huge increases in opex. So if you do model that out you can get to the <unk> caught in 2026 timeframe towards the end of 'twenty six middle of 'twenty six.

Speaker Change: Yes, it's a good question I think that really.

The product works across most cell types in some instances better than some than others that said I think that the difference between the modalities and the cell type really comes down to the amount of crowds store used per dose.

Speaker Change: Thank you.

Chad: Thank you and our next question comes from Chad, while it Charles.

Speaker Change: And so when you look at.

Speaker Change: <unk>, which I think specifically states that they used craft store I would say that they are the largest user per dose of crowds store versus a car T, which would use less so it really comes down to the volume per dose.

Speaker Change: TV Cowen. Please go ahead.

Speaker Change: Hey, guys, Yeah just wanted.

Speaker Change: To dig in on sort of immediate growth in.

Speaker Change: And maybe less so for 2025.

Speaker Change: Mentioning it's going to be approved therapy is driving growth, but just at a higher level.

Speaker Change: When you look at like catalysts and clinical trials in some of these newer modalities are expanding into larger indications could you just speak to maybe how media is used.

Speaker Change: And we're.

Many of our customers seem to think that Thats <unk>.

Speaker Change: Really confidential information so it's sometimes difficult to get exactly how much of our product is used per dose, which is why I made the comments I did there earlier.

Speaker Change: <unk> between like a gene therapy or car T cell based therapy.

Speaker Change: How biolife is positioned to benefit respectively.

Speaker Change: Whereas tagme for instance in their FDA in pretty well you can back into how much cryo storage used very clearly.

Speaker Change: Yes, it's a good question I think that really.

Speaker Change: The product works across most cell types in some instances better than some than others that said I think that the difference between the modalities and the cell type really comes down to the amount of crowds store used per dose.

Speaker Change: Got it and then just on the non media so processing tools that you're trying to cross sell.

Speaker Change: Homebrew as really the only alternative for media, which has created this dominant brand could you speak to sort of the competitive profile of some of these other products and what dynamics do you expect to.

Speaker Change: And so when you look at.

Speaker Change: <unk>.

Speaker Change: Come across when you're trying to cross sell and thanks for the questions guys.

Which I think specifically states that they used craft store I would say that they are the largest user per dose of crowds store versus a car T, which would use less so it really comes down to the volume per dose.

Speaker Change: Sure.

Speaker Change: I think on the let's talk about Celsius vials.

Speaker Change: So the vials there are competitive vials out their west comes to mind, there are a larger company.

Speaker Change: And we're.

Speaker Change: Our files have certain attributes with respect to the materials used.

Speaker Change: Many of our customers seem to think that that's.

Speaker Change: Really confidential information so it's sometimes difficult to get exactly how much of our products is used per dose, which is why I made the comments I did there earlier.

Speaker Change: The freezing profile et cetera, when you when you have that frozen down with the final therapy on the cryo case side, that's clearly a direct competitor.

Speaker Change: Whereas <unk> for instance in their FDA in pretty well you can back into how much cryo storage used very clearly.

Speaker Change: Cryo bags.

Speaker Change: And they are very well established and no doubt the.

Speaker Change: The most used final dose container and in that regard it comes down to the benefits of our cryo case, which include.

Speaker Change: Got it and then just on the non media so processing tools that youre trying to cross sell.

Speaker Change: Homebrew as really the only alternative for media, which has created this dominant brand could you speak to sort of the competitive profile of some of the other products and what dynamics do you expect to come across when you're trying to cross sell.

Speaker Change: And easier to work with form factor, particularly prior to freezing.

Speaker Change: And.

Speaker Change: Reduction or mitigation of shattering.

Speaker Change: A dose if it's dropped in a frozen state. So there is no question that we're up against some well entrenched.

Speaker Change: Thanks for the questions guys.

Speaker Change: Sure.

I think on the let's talk about Celsius vials.

Speaker Change: I guess products product lines, and we feel pretty comfortable that the benefits that our products yields in combination with the.

So the vials there are competitive files out there west comes to mind, there are a larger company.

Speaker Change: Our files have certain act attributes with respect to the materials used.

Speaker Change: The push toward automation, which is another.

Speaker Change: Nice benefit that the cryo case has relative to automating versus a bag, we think that those things over time will drive adoption. In addition to the fact that we are a credible supplier to these large commercial therapy companies as well as a lot of earlier stage companies.

Speaker Change: The freezing profile et cetera, when you when you have that frozen down with the final therapy on the cryo case side, that's clearly a direct competitor.

Speaker Change: Cryo bags.

Speaker Change: And they are very well established and no doubt.

Speaker Change: The most used final dose container and in that regard it comes down to the benefits of our cryo case, which include.

Speaker Change: Thank you and the next one.

Speaker Change: Listen today comes from Matt Hewitt of Craig Hallum Capital Group. Please go ahead.

Matt Hewitt: Good morning, and congratulations on a strong finish the year.

Speaker Change: And easier to work with form factor, particularly prior to freezing.

Matt Hewitt: Maybe first up when you.

Speaker Change: And.

Matt Hewitt: When you're talking about the growth this year, how much of that.

Speaker Change: Reduction or mitigation of shattering.

Matt Hewitt: If any is related to some price increases we've heard several companies Youre a report over the past couple of weeks talk about implementing some price increases call at CPI adjustments whatever are you, including some of that into into your model.

Speaker Change: A dose if it's dropped in a frozen state. So there is no question that we're up against some well entrenched.

Speaker Change: I guess products product lines, and we feel pretty comfortable that the benefits that our products yields in combination with the.

Matt Hewitt: Yes, we do have our base price increase which is sort of mid single digits.

Speaker Change: The push toward automation, which is another.

Matt Hewitt: Lower than previous years.

Matt Hewitt: Baked into that and in addition to that we've been on a.

Matt Hewitt: Our push to alter some of the distributor distribution and direct relationships that we have from a pricing standpoint, given that their legacy those won't really kick in until the back half of the year into 26, so pricing is definitely a factor, but the bulk of it is coming from from the demand side in terms of volume.

Speaker Change: Thank you and our next.

Speaker Change: Question Today comes from Matt Hewitt of Craig Hallum Capital Group. Please go ahead.

That's great and then maybe kind of a follow up to that as you look to grow the vials and the rest of the product portfolio.

Matt Hewitt: Good morning, and congratulations on a strong finish the year.

Matt Hewitt: Maybe first up when you.

Matt Hewitt: Given your strength with the media products is there a way for you from a pricing perspective.

Matt Hewitt: When you're talking about the growth this year, how much of that.

Matt Hewitt: If any is related to some price increases we've heard several companies here a report over the past couple of weeks talk about implementing some price increases call at CPI adjustments whatever are you, including some of that into into your model.

Matt Hewitt: To kind of bundle.

Matt Hewitt: The whole portfolio together and maybe you are giving a little bit here, but you're taking more there and ultimately it's a win win for everybody.

Matt Hewitt: Yes.

Matt Hewitt: Yes, we do have our base price increase which is sort of mid single digits.

Matt Hewitt: Good question as well I think that that those opportunities exist.

Matt Hewitt: I think that the.

Matt Hewitt: Lower than previous years.

Matt Hewitt: The decisions around for example, utilizing crowd case.

Matt Hewitt: Baked into that and in addition to that we've been on a.

It really goes beyond just the price.

Matt Hewitt: Because of the benefits of using it.

Matt Hewitt: Would outweigh any kind of real price increase and the fact of the matter is it may even be equal to or lower.

Matt Hewitt: ASP.

Matt Hewitt: Or let's say per final dose on the container by switching to us. So we don't really feel the need to be discounting in fact, what we're trying to do is go the other way and have the pricing.

Matt Hewitt: That's great and then maybe kind of a follow up to that as you look to grow the vials and the rest of the product portfolio.

Matt Hewitt: That we have on our product line reflect the premium products that they truly are.

Matt Hewitt: Given your strength with the media products is there a way for you from a pricing perspective.

That makes complete sense. Congratulations again on the strong year end must feel good looking out to this year and not necessarily having some of the distractions you were dealing with last year. So congratulations.

Matt Hewitt: So you kind of bundle.

Matt Hewitt: The whole portfolio together and maybe you are giving a little bit here, but you're taking more there and ultimately it's a win win for everybody.

Speaker Change: Thank you Matt Thanks, Matt.

Matt Hewitt: Yes.

Speaker Change: Thank you and our next question today comes from Thomas Flaten with Lake Street. Please go ahead.

Speaker Change: Good question as well I think that that those opportunities exist.

Speaker Change: Hey, guys. Appreciate you taking the questions Brian just keeping in mind, all the things you've noted about potential growth opportunities, particularly with the cross selling if you were to look at that 80% to 20% growth rate you've guided for 2025, where do you think that can go kind of in maybe not in an ideal world, but do you see that.

Matt Hewitt: I think that the.

Matt Hewitt: The decisions around for example, utilizing crowd case.

Matt Hewitt: It really goes beyond just the price.

Matt Hewitt: Because the benefits of using it.

Matt Hewitt: Would outweigh any kind of real price increase and the fact of the matter is it may even be equal to or lower.

Speaker Change: Elevating beyond that 21%.

Matt Hewitt: ASP.

Speaker Change: I think over time it can it's going to depend again, given that media represents approximately 90% of the cell processing line at this point in time.

Or let's say per final dose on the container by switching to us. So we don't really feel the need to be discounting in fact, what we're trying to do is go the other way and have the pricing.

Speaker Change: It really is going to be driven for the next few years at least.

That we have on our product line reflect the premium products that they truly are.

Speaker Change: The bulk of the growth is going to be driven by bio preservation media and that really is dependent on the cadence of approvals and the overall demand for these therapies down the road. So that's number one and that's really not in our control what's in our control is to make sure that we're in as many clinical trials as we can be as they are.

Matt Hewitt: That makes complete sense. Congratulations again on the strong year end must feel good looking out to this year and not necessarily having some of the distractions youre dealing with last year. So congratulations.

Matt Hewitt: Thank you Matt Thanks, Matt.

Speaker Change: Thank you and our next question today comes from Thomas Flaten with Lake Street. Please go ahead.

Speaker Change: Come online.

Speaker Change: I think with respect to <unk> and the growth there will be higher over time and really it is going to take us I would say 24 to 36 months to get well established to the point, where as these therapies move through their clinical journey and the volume increase is not just for media, but for these other tools.

Speaker Change: Hey, guys. Appreciate you taking the questions Rod just keeping in mind all the things you've noted about potential growth opportunities, particularly with the cross selling if you were to look at that 18% to 20% growth rate you've guided for 2025, where do you think that can go kind of in maybe not in an ideal world, but do you see that.

Speaker Change: Then youre going to start to see an acceleration of revenue growth rates beyond I think where we are today. So I still I think we're about 24 to 36 months away from kind of any material change in growth rate would be what I would say.

Speaker Change: Beyond that 21%.

Speaker Change: I think over time it can it's going to depend again, given that media represents approximately 90% of the cell processing line at this point in time.

Speaker Change: Got it I appreciate that and then just on the business itself now that you've been a couple months past the deals November any any more changes to the to the middle of the P&L that we should anticipate either positively or negatively.

Speaker Change: It really is going to be driven for the next few years at least.

Speaker Change: The comments I made earlier still Stan Thomas because those financials. As you know are all continuing basis right. So that does strip out any of the divestiture entity is from those financials as well as up some people that one.

Speaker Change: Come online.

Speaker Change: I think with respect to <unk> the growth there will be higher over time and really it is going to take us I would say 24 to 36 months to get well established to the point, where as these therapies move through their clinical journey and the volume increase is not just for media, but for these other tools.

Speaker Change: With those divestitures. So it's a good baseline as I mentioned for Q4, 'twenty four annualized for SG&A and R&D, we will be putting more money into R&D this year compared to 2024.

Speaker Change: Got it I appreciate it thank you.

Thomas: Thanks Thomas.

Speaker Change: Thank you and our next question comes from <unk>.

Speaker Change: See when ready.

Speaker Change: Go ahead.

Speaker Change: Good morning. This is Eduardo on for you I guess related to customer expansion I had a question regarding any potential catalysts from your clients naturally.

Speaker Change: Got it.

Speaker Change: And then just on the business itself now that you've been a couple months past the deals November any any more changes to the to the middle of the P&L.

Speaker Change: <unk> got a massive approvals or label expansions that would be it.

Speaker Change: Really relevant for your guys projections.

Speaker Change: Correct, it's really from a from the clinical trial.

Speaker Change: Dissipate either positively or negatively.

Speaker Change: Trial customer base that we have it's movement through the from phase one to phase III et cetera, right on the commercial side once their commercial it's both time in terms of adoption, let's just say in the United States, but then there are those other factors geographic expansion around the world.

Speaker Change: No the comments I made earlier still Stan Thomas.

Speaker Change: Those financials as you know are all continuing basis right. So that does strip out.

Speaker Change: Any of the divestiture entities from those financials as well as up some people that work with those divestitures. So it's a good baseline as I mentioned for Q4, 'twenty four annualized for SG&A and R&D, we will be putting more money into R&D this year compared to 2024.

Movement of the line of treatments.

Speaker Change: Those things are equally important to us.

Speaker Change: In terms of the overall growth rate and adoption of those therapies as time goes by also a lot of the therapies and several years later getting additional indications using the same drug and that also opens up that pool of patients.

Speaker Change: Got it appreciate it thank you.

Speaker Change: Thanks Thomas.

Speaker Change: Thank you and our next question comes from <unk>.

Speaker Change: Please go ahead.

Speaker Change: Good morning. This is Eduardo on for you I guess related to customer expansion I had a question regarding any potential catalysts from your clients naturally.

Speaker Change: Right and do you guys have visibility on whether or not any of those milestones and inflection points are happening in 2025 for your for your clients.

Speaker Change: The massive approvals or label expansions that would be.

Speaker Change: Yes, we think right now that we have visibility to what we believe are about eight of those.

Speaker Change: Really relevant for your guys projections.

Speaker Change: Correct, it's really from a from the clinical trial.

Speaker Change: Any one of those things happening in 2025, we.

Speaker Change: We track that as well as we can the information is a bit opaque and.

Speaker Change: And we're actually working with the third party consultant to try to more formalized.

Speaker Change: A review of that on an every six month basis as opposed to trying to track it internally, which I think has given us less than a fulsome data. So I think we'll get better at that but right now what we're seeing is about eight over the next 12 months or the year of 25 I should say.

Speaker Change: Movement up the line of treatments those things are equally important to us.

Speaker Change: Got it that's really helpful and I know the clinical trial.

Speaker Change: Component of revenue isn't that significant but just curious if you guys anticipate any complications with grant funding freezes potentially I don't know if any of the clinical trials that your customers are running are dependent on government funding, but if you anticipate any complications associated with funding freezes.

Speaker Change: Right and do you guys have visibility on whether or not any of those milestones and inflection points are happening in 2025 for your for your clients.

Speaker Change: Yes, we think right now that we have visibility to what we believe are about eight of those.

Speaker Change: Yes, not at this point, we're aware of the uncertainty around the NIH funding.

Speaker Change: Any one of those things happening in 2025, we.

Speaker Change: I think that to the extent that there could be an impact of that I would say that it shows up on the distribution side of our business.

Speaker Change: We track that as well as we can the information is a bit opaque.

Speaker Change: And we're actually working with the third party consultant to try to more formalized.

Speaker Change: Two large distributors I think they are very much focused on academic institution.

Speaker Change: Our early research those dose folks might have might be impacted by all of this but in terms of our overall revenue. When we talk to are those to distributors, where we don't get any sense that they're concerned about it at this point that may change throughout the year, but right now I think it would come from.

Speaker Change: Got it that's really helpful.

Speaker Change: I know the clinical trial.

Speaker Change: A bit of a softening of demand on the distribution side versus the direct side most of our direct customers are privately funded.

Speaker Change: Got it that's helpful. And then finally I'm curious strategy for Evo and saw and if theres any potential if you have bundling products talked a little bit previously about kind of bundling packages with cell processing I'm curious if these two would also fit into our strategy there to increase your footprint with those.

Speaker Change: Yes, not at this point, we're aware of the uncertainty around NIH funding.

Speaker Change: I think that to the extent that there could be an impact of that I would say that it shows up on the distribution side of our business. We have two large distributors I think they are very much focused on academic institution.

Speaker Change: Products and services as well.

Speaker Change: Yes, so on the eve on the on the SaaS side are thawed device definitely.

Speaker Change: Could be viewed as almost a reverse razor razorblade in the sense that it is designed now and has been modified to accept to sell sealed vial product line, our own product line for five minutes or so.

Speaker Change: Our early research those those folks might have might be impacted by all of this but in terms of our overall revenue. When we talk to are those to distributors, where we don't get any sense that they're concerned about it at this point that may change throughout the year, but right now I think it would come.

Speaker Change: Look at it almost as a.

Speaker Change: It's a nice add on if you are using ourselves <unk> it could be yet another just benefit of doing so.

Speaker Change: From.

Speaker Change: And it could also you.

Speaker Change: A bit of a softening of demand on the distribution side versus the direct side most of our direct customers are privately funded.

Speaker Change: Thought of as a razor razorblade scenario in terms of if it gets placed.

Speaker Change: It can drive in some way, although I would say, it's pretty soft indirect way the.

Speaker Change: Got it that's helpful. And then finally I'm curious strategy for Evo and saw.

Speaker Change: The utilization or the adoption of the crowd seal on the Evo side of things very little chance that people that are making decisions around utilizing evo are very different than the people that would be utilizing.

Speaker Change: And if there is any potential if you have bundling products talked a little bit previously about kind of bundling packages with cell processing I'm curious if these two would also fit into our strategy there too.

Speaker Change: The <unk> or other products, including saw the decision makers are very different so there's very little opportunity to do that.

Speaker Change: Your footprint with those products and services as well.

Speaker Change: Yes, so on the eve on the on the SaaS side are thawed device definitely.

Speaker Change: Got it that's really helpful. Thanks.

Speaker Change: Could be viewed as almost a reverse razor razorblade in the sense that it is designed now and has been modified to accept to sell sealed vial product line our own product line for automated saw so you can look at it almost as a.

Speaker Change: Okay.

Speaker Change: Thank you and our next question comes from Michael <unk>.

Michael: With Maxim Group. Please go ahead.

Speaker Change: Hey, guys. Thank you so much for taking my questions today, congratulations on all the progress.

Michael: Thank you.

Speaker Change: It's a nice add on if you are using ourselves <unk> it could be yet another just benefit of doing so.

Michael: I just would like to see if we could drill down a little bit you mentioned that you are.

Michael: Looking at a bit more R&D spend going forward versus the fourth quarter. So could you provide just a little bit more color on how you're planning to allocate additional spend is this more is this for new products or more just continued improvements on your existing product line.

Speaker Change: And it could also you.

Speaker Change: Thought of as a razor razorblade scenario in terms of if it gets placed.

Speaker Change: It can drive in some way, although I would say, it's pretty soft indirect way the.

Michael: Yes, it's really about expanding the consumable set of products that we have.

Michael: <unk> acquired from <unk> that would be the crowd.

Michael: To do some additional work on that relative to some customer feedback.

Speaker Change: The <unk> or other products, including saw the decision makers are very different so there's very little opportunity to do that.

Michael: It would be modifying the cryo case for our own internal use on the front end in other words shipping our cryo store product out in a crowd case.

Speaker Change: Got it that's really helpful. Thanks.

Speaker Change: Okay.

Speaker Change: Thank you and our next question comes from Michael <unk>.

Michael: There are various benefits to that it's about increasing the consumable line.

Speaker Change: With Maxim Group. Please go ahead.

Michael: <unk> products that are associated with our <unk> five automated filled device. So it's really I would say product line expansion as opposed to new products per se.

Speaker Change: Hey, guys. Thank you so much for taking my questions today, congratulations on all the progress.

Speaker Change: Thank you.

Speaker Change: I just would like to see if we could drill down a little bit you mentioned that you are.

Speaker Change: Looking at a bit more R&D spend going forward versus the fourth quarter. So could you provide just a little bit more color on how you're planning to allocate additional spend is this more is this for new products or more just continued improvements on your existing product line.

Speaker Change: Okay. Thank you for that and then just I wanted to see if you could remind us.

Speaker Change: Your involvement with any any mesenchymal stem cell based products I know that meso glass historically hasnt been a customer, but there has been a lot of gains traction in that space. So any additional color with your involvement could be helpful. Here.

Speaker Change: Yes, it's really about expanding the consumable set of products that we have.

Speaker Change: Yes, I don't know if I can give you any.

Speaker Change: In real time, but I can certainly follow up with you on that after the fact, they will sit with our our folks that manage the clinical trial side of things and have a chat with them and come back to you on that Michael.

Speaker Change: <unk> acquired from <unk> that would be the crowd.

Speaker Change: To do some additional work on that relative to some customer feedback.

Speaker Change: It would be modifying the cryo case for our own internal use on the front end in other words shipping our cryo store product out in a crowd case.

Speaker Change: Certainly thank you very much for taking my questions and once again congrats on the progress.

Speaker Change: Thanks very much.

Speaker Change: And this concludes our question and answer session I would like to turn the conference back over to Rob the Green for closing remarks.

Speaker Change: There are various benefits to that it's about increasing the consumable line of products that are associated with our <unk> five automated filled device. So it's really I would say product line expansion as opposed to new products per se.

Rocco: Thank you Rocco.

Rocco: In closing 2024 was a year of strategic transformation and solid operational execution for Biolife.

Rocco: We see 2025, as an opportunity to solidify and leverage our market leading position as an enabler of CGT therapies and position the company for long term sustainable growth in both revenue and profitability.

Speaker Change: Okay. Thank you for that and then just I wanted to see if you could remind us of.

Rocco: Thank you for your time this morning, and we look forward to updating you as we move through the year as well as seeing some of you at the Cowen Conference. This week and other conferences throughout the year. Thank you.

Speaker Change: Yes, I don't know if I can give you any.

Thank you. This concludes today's presentation.

Speaker Change: In real time, but I can certainly follow up with you on that after the fact I'll sit with our our folks that manage the clinical trial side of things and have a chat with them and come back to you on that Michael.

Speaker Change: Certainly thank you very much for taking my questions and once again congrats on the progress.

Speaker Change: Thanks very much.

Speaker Change: And this concludes our question and answer session I would like to turn the conference back over to Rob the Green for closing remarks.

Rocco: Thank you Rocco.

Speaker Change: In closing 2024 was a year of strategic transformation and solid operational execution for Biolife.

Speaker Change: We see 2025, as an opportunity to solidify and leverage our market leading position.

Speaker Change: As an enabler of CGT therapies and position the company for long term sustainable growth in both revenue and profitability.

Speaker Change: Thank you for your time this morning, and we look forward to updating you as we move through the year as well as seeing some of you at the Cowen Conference. This week and other conferences throughout the year. Thank you.

Speaker Change: Thank you. This concludes today's presentation you may.

Speaker Change: Now disconnect your lines and have a wonderful.

Speaker Change: [music].

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