Q2 2025 Cryoport Inc Earnings Call
Good afternoon and welcome to cryoport. Second quarter 2025 earnings conference call. All participants are currently in listen-only mode.
Following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for an operator. As a reminder, this call is being recorded. I will now turn the call over to your host. Todd frommer from kcsa strategic Communications. Please go ahead.
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 or forward-looking statements.
These forward-looking statements are based on Management's beliefs and assumptions, and not on your information currently available to our management team.
Our management team believes that these forward-looking statements are reasonable as it when me.
However, you should not Place. Undue Reliance on any such forward-looking statements because such statements speak only as of the date. When made, we do not undertake any obligation to publicly update, or revise, any forward-looking statements, whether as a result of new information or future events or otherwise except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results events and developments the different materials from our historical experience and our present expectations or protections, these risks and uncertainties include, but are not limited to those described in item. 1, a risk factors and elsewhere in our annual report on form. 10K to be filed with the Securities and team submission, and those described from time to time and the other reports which we filed with the Securities and Exchange Commission, as a reminder crowd for has uploaded their 7 quarter, 2025 in review, documents to the main page of the trial Port website. These documents provide a review of trial Force, financial and operational performance. And, in general business Outlook,
Before I turn the call over to Jerry, please note that because of the Strategic partnership that has been established with DHL group and the related sale of chriop PDP to DHL bioped Pace financials, which were previously a part of file Force Life, Sciences Services reportable segments are now presented at discontinued operations.
Trial for previously provided quarterly historical information on the spaces for fiscal year 2024 and our first quarter, 2025 gig review documents.
Which remains available on the file for website. This information is intended to support the financial modeling efforts of those needing this information. Please note that unless otherwise indicated all revenues figures discussed today will refer to continuing operations. This includes cryle ports, fiscal year 2025 Revenue guidance,
It is now my pleasure to turn the call over to Mr. Terrell Shelton. Chief Executive Officer of cryoport Jerry. The floor is yours.
Thank you, Todd.
Good afternoon everyone. Uh, with us this afternoon is our Chief Financial Officer, Robert savinovich our chief scientific officer Dr. Mark sowiecki and our vice president of corporate development and investor relations. Thomas Hines.
Today crowd reported strong double-digit Revenue growth across all revenue streams and our life sciences services for the second quarter.
Service Revenue, increased 21%, year-over-year accounting for 54% of total revenue from continuing operations.
Notably revenue from our support of commercial selling Gene therapies increased by 33% and bio storage bioservices, grew 28% underscoring. The growing demand for our, our integrated temperature control supply chain platform,
This growth continues to be fueled by the increasing adoption, and scaling of selling Gene therapies a positive trend. We Believe will continue for years to come.
turning to our life sciences products, we posted a solid performance with 8% year-over-year, Revenue growth driven by improved demand particularly from Animal Health customers during the quarter,
We made. Uh, we also continued to expand our product for portfolio with the launch of our next generation mvesc 42v, and SC, 43 Vapor shippers, which offer medical and animal health professionals. Improved safety and reliability for transporting and preserving sensitive biological materials at cryogenic temperatures.
During the second quarter, we also recorded Revenue in accordance with plan from sales of mves, high efficiency, 800 C, cryogenic Storage system which was released earlier this year.
This compact form factor freezer was designed for facilities with limited space that require high capacity and security. These Innovations demonstrate our continued commitment to addressing the evolving needs of our clients globally and expanding our future Revenue potential.
For the second quarter, we had an overall 14% increase in total revenue from operations.
And we delivered an increase in gross margin along with a meaningful lift and our adjusted ibitta as a result of our Pathway to profitability initiative.
Execution, across all our business units. We are reaffirming our full year 2025 Revenue guidance. As we move toward our goal of sustainable long-term profitability, which will accelerate as our capital projects mature,
I'm pleased with all the progress of all of our business units but I would be remiss. If I didn't highlight 1 of the most significant achievements for the second quarter which was our launch of our strategic, partnership agreement with the DHL group and dhl's acquisition of chriop PDP in a transaction that included cash payments of approximately $200 million to crowd port.
Aside from a strong infusion of capital. This strategic partnership provides for enhancing our Global biologic capabilities.
By Logistics capabilities and Effectiveness by leveraging, dhl's competencies scale and reach and aspac and Amia. We will be increasingly well positioned to expand our life sciences business and deepen our leadership in the rapidly growing Global regenerative medicine Market.
this strategic partnership is an initial step as we continue to work to develop a strong, Global partner Network, that complements our core capabilities through discussions with various global companies,
Before we take your questions, I want to briefly address a unique situation with 1 of our clients that has received some immediate, some immediate attention.
1 of our gene therapy clients temporarily paused the distribution of their commercial therapy for about a week in July.
The therapy is now back on the market and shipping to patients. However that company anticipates treating fewer patients and originally forecast in 2025.
We do not expect this to have a material impact on our business. Our guidance that we reaffirm today considers an estimated Revenue impact of approximately $2 million from this client for the remainder of the year.
As of June 30th Crow for supported a record 728 clinical trials, which is approximately 70% of the industry selling gene therapy trials.
For the remainder of 2025, we anticipate up to an additional 20 application, filings 1, new therapy approval, and an additional 3 approvals for label or Geographic expansion.
Also, we want to note that during the quarter 5 of our clients at at file for approval earlier. Earlier this year or late last year, received negative opinions from the FDA or MAA
All these clients have requested meetings with The Regulators to find a pathway forward to bring their therapies to Market.
Given the need for these therapies, along, with a recent changes within the FDA many analysts are thinking more positively about their chances of getting approval later this year or early in 2026.
The strength and resilience of Cryoport's performance in the second quarter.
Despite these challenges faced by a few of our clients by largely in the broad number of clinical trials, we support and the scaling of the current commercial therapies. We are supporting on a global basis.
Our commercial revenue is expected to drive our growth for years as it is boosted by additional Cryoport-supported therapies as they reach commercialization, including the new cell therapy from our customer, Aviano Abana, Uh Therapeutics.
That was approved by the FDA during the second quarter.
I probably mispronounced that and I think it's, I'd be on that.
In summary, our second quarter was marked by strong Revenue growth improved margins. And the beginning of the execution of a transformative, strategic partnership agreement.
We are entering the second half of the year with strong momentum and a clear focus on driving long-term shareholder value. As we support the growth of the global regenerative medicine markets, and the life sciences in general,
as a regimented medicine, industry accelerates
The complexity and precision required to safely deliver personalized, often life-saving therapies, has never been greater our Global platform of temperature control. Supply Chain Solutions, coupled with real time. Informatics and Regulatory compliant, processes enables 728, active, clinical trials, and 18 commercial therapies worldwide,
From the laboratory to the manufacturer to the points of care to the patients, bedside our Advanced Packaging Systems bio storage and bioservices capabilities, biologists and cryogenic infrastructure have become Mission critical. To the industry's leading biofarma company cdmos and researchers alike.
In short, we form the connective tissue between researchers manufacturers and the patients enabling the secure preservation and movement of living regenerative therapies with real-time data and systems and a global reach. We do more than support the life sciences ecosystem. We make it responsive resilient and ready for the future of Medicine.
This concludes my prepared remarks. So now, I'll ask the operator to open the lines for your questions.
Thank you so much. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question please? Press star. Followed by 1 on your touchtone phone. You'll hear a prompt that your hand has been raised. Should you wish to remove your hand from the queue? Please. Press star. Followed by 2.
If you are using a speaker-phone, please lift the handset, before pressing any Keys. Just a moment for your first question.
And your first question comes from Kyle Cruz with UBS. Please go ahead.
Thank you for taking, uh, our questions. Could you please provide a brief update on the non-selling gene therapy, demand, that appears to be driving, the product Revenue, the in the quarter and could you provide an update on integral and how the adoption there is going? Thank you.
I think both those questions can be answered by Doc Dr. Squeaky.
Yeah, so, um, you know, integrals can continue to progress nicely. Um, you know, we are moving forward with. Um, I'm sorry, just give me 1 second here.
Uh, sorry, can you repeat the first part of the question? The first part was on mve maybe. I'll step in. Yeah, please do that for you. Mve, we are feeling better than we were about 6 to 12 months ago. The revenue there did improve up 8%. We do continue to believe that the business stabilized uh in the quarter. And in last quarter globally markets have been disrupted by governmental policies and we do expect the uncertainty to continue to impact Capital spending as you can see with other life. Science companies in particular at mve, they had a very nice quarter from the Animal Health side uh with cryo cryogenic system sales. Go ahead, Mark on Integrity. So I apologize for the mix up. Yeah, so in Integra, so um, is proceeding on
Track. We do anticipate, uh, initiation of Revenue production, this quarter uh with uh meaningful. Uh, Revenue starting in 2026. We are actively Tech transferring in our first clients right now, which takes a little bit of time. Um, but that's, uh, you know, that's going to start, to, to help support the revenue contributions later this year in inspection,
Great. And then, um, maybe as a follow-up there, uh, you maintain the guidance, but you had a really great quarter and it seems like there's, um, you know, the market seems to have improved and they're, you know, as upcoming revenue streams into 2. H, can you go for the phasing on your 2, H, guidance, and maybe, um, go over why you didn't increase the guide? Thank you.
Yeah, we didn't increase the guidance uh, because uh, it it we we we're being prudent of course and, you know, given the uncertainties and the uh, and the global economy, and geopolitical uncertainties, as well as administrative uncertainties. Uh, and looking at uh, the market and the and the puts and takes and so forth. We but we felt it was more prudent to keep our guidance where it is. And and so we that's why we reaffirmed it, the way it is.
Great, thank you very much.
Your next question.
Comes from David Saxon with nem. Please go ahead.
Oh, great. Thanks for taking my questions and congrats on the quarter. Maybe just a follow-up to that last question on guidance. Um, just, you know, comps, I guess. Um, you know, third quarter. It looks to be an easier comp and then, um, you know, easycom, but slightly harder in the the fourth quarter. So, how should we think about growth, exiting the year and any early thoughts on 2026, uh, just given, you know, the momentum, you're you're saying and then all the follow up,
um,
S on encourage you to, to look at that document. Um, as well, I think you're looking at the second half of the year. Um, as Jerry mentioned, you know, we're we're holding to to our guidance, um, for the full year. There's certainly upside opportunity there um, but, uh, typically would expect obviously a stronger Q4 compared to cue the Q3 Revenue growth. I think overall, in terms of the, the general performance, you look at the first half of the year and the second quarter, you know, obviously we made significant improvements in terms of gross margins, both on products and services, um, bringing total gross margin to 47%. Um, so that's, you know, a significant increase, you know, over prior year and then for a bottom line perspective, as well as you look at, you know, the adjusted Ava from continuing operations, where for Q2 at a negative Point N million, um, from a negative 5.6 million in the prior year or a negative -2.8 million
In q1 of of this year. So, you know, everything is moving in the right direction. Um, Revenue growth, um, gross margins, as well as the bottom line, and we certainly want to push that forward during the second half as well. Um, so that's like a, I think, as much as we can say at this point,
Okay, great. No, that was super helpful. Thanks for that. And then, I guess just on the balance sheet, I mean $426 million in cash. Post the sale of PDP, it looks like you did some smaller share purchases over the last couple of months. But I would love just an update on how you're thinking about capital allocation philosophy. You've done M&A in the past; you took a pause there. So, you know, I would love your updated thoughts there. Thanks so much.
Um, yeah, David, um, we we did, we did back some common stock and, and, and the second quarter, and, and we'll continue to take our usual prudent approach to to deploying Capital. Um, we'll be thoughtful opportunistic. And we'll also be strategic with with, with all the funds that we have, but we'll continue to consider buying back our stock as we, we think it's significantly undervalued in the market.
Just to put a number on it, we did buy back a million shares since our, our last report.
Yeah. And during may just to add, you know, obviously cash is King in this environment. Um, we did pay back, you know the 2025 um convertible notes about 14 million during the second quarter. Um and and we we obviously will want to maintain the strong balance sheet while evaluating the various options that we have to apply. Um our Capital our cash.
Okay, and if I could just, I guess, follow up on that. So any change in your appetite for m&a, or you, you just want to kind of protect the balance sheet. Um, and maybe do some opportunistic share purchases that, you know, David, we we, we'll be opportunistic and and if a, if a, if an acquisition comes along that's compelling, it's a creative, it it meets our profile, we'll certainly consider it. But, you know, our Focus right now is internal, we have some we we have we have initiatives going on that, we need to execute on. And um, so we we're constantly uh, getting um um, opportunities presented to us. We look at them. And if they, if they're compelling, we will definitely consider them but there's no no plan for any Acquisitions at this point.
Okay, that's helpful. Thanks Jay.
Your next question comes from Matt Stanton with Jeffrey's, please go ahead.
Hey, thanks. Um, wanted to kind of zoom out for a higher level question, you know, move for, uh, for, for Jerry. Um, just in terms of the, the, um, late quarter FDA update on the, uh, the Rams in certain indications of approved cartas, um, what's the early feedback, uh, that you've heard from from customers and is there any way to kind of talk?
Impact or potential impact this could do, you know, due to Patient volumes and, and any more color on timing, um, as it relates to that update that we got late in the quarter. Thank you.
Rural, uh, rural points of care and so forth. And yeah, Mark may want to add, uh, to that.
No, I think I mean Jerry's absolutely correct. Uh, it'll it should have a beneficial definitively, a beneficial impact and some of our, our key clients have already reported on it in a positive way and others are still too reports. Uh, we would expect to see um updated forecasts from our our clients and any impact on that uh during the third quarter. So we should have more more clarity at the next earnings call.
Yeah, great thanks. Um, and then maybe just on on biofarm, I think for the product side, you talked more about Animal Health. But just, you know, in terms of your biofarma customers either by product or region, um, you know, pretty robust Trends in the quarter, what are you hearing from customers? Um, in terms of appetite to spend how that might vary. Um, you know, we've seen kind of mixed signals from crows and spend on certain projects, you know, Capital related projects. Maybe being pulled back given the macro, but would just love some updated color in terms of your discussions with uh, your biofarma customers globally. Thanks.
Certainly there's a a a a enough capacity for manufacturing in the industry right now. And and I think that, um, you know, Mark might want to be it might, he might want to comment on that brother. Yeah. So you you've got to
Take a look at where the pullback is occurring. The vast majority of the pullback is is really directed through the NIH and ties into really pre-clinical and late pre-clinical activity. So R&D and pre-clinical, you know, our our focus is really on the clinical and commercial space. And the vast majority of our clients are well funded and um, have significant, uh, relationships with, you know, large Pharma is and others. So we don't anticipate it and a negative impact from that perspective. Uh, and and it's in fact, obviously, you know, I think that the demonstration of the continued increase in acceleration of the clinical trial supported uh, up to 7:28 in an increase of 44 year-over-year, an increase in Phase 3 trials, uh, you know demonstrates, the the continued support of that of that portfolio which will have significant benefit for us over time.
Thanks and maybe just 1 more if I can see again, just Robert on uh, on Gross margins in the back, half of the Year. Obviously, the implied guide has revenues kind of coming down a bit from 2q levels. Um, first half saw a lot of good progress on Gross margins. Should we expect gross margins to stuff down modestly in the back half of the different kind of that 46% in the first half. Um, or do you think that's kind of a sustainable level going forward? Just given the numbers. I think we're we're we're we're certainly going to try to sustain it during the second half. You know, typically we would expect gross margins to to increase further just due to operating leverage, but we do have some newer initiatives as you
Where, you know, like integral and building out some of the facilities in in Paris and and, and Belgium, and ultimately um um, California. So that will have some impact on on Gross margins as they start, ramping up. Um, so I I would look at, you know, for for modeling purposes to keep it, you know, relatively flat. It'd be a temporary impact. Yeah, yeah.
Now, our stated goals, based on reaching operating leverage, is really to get to gross margins in excess of 55%, um, with adjusted EBITDA margins of 30%.
And we think that's how how you achieve a goal, uh, that over time which takes a little time.
Your next question comes from Paul Knight with KeyBank. Please go ahead. Hi Mark. As you've seen this, uh, commercial uh, Market Exhilarate, what are you seeing in terms of, uh, competitive Dynamics are they're major players trying to be there or some customers wanting to Homebrew. What are you seeing or learning?
As the commercial side, grows faster.
In in the coming months and quarters, uh, as other larger players in the space want to to work with us. Uh collaboratively. Not not not uh competitively. Yeah and and and you shouldn't underestimate the the power that integration. Paul, the integrated solution is is what is is being sought out, more and more, uh, uh, our clients want, um, want to simplify their their efforts. I mean, and so our integrated temperature control Supply Chain Solutions are are picking up steam
and Jerry on mve do you feel like in the biofarm market that, um,
you know, I guess it was destocking postco. Uh, do you think that starting to be, uh, bottoming at this juncture?
Well, my thinking is that that most of that excess capacity that was built up, during Co has been burned off. And and that the market is is stabilizing. We've had 3, good quarters at mve with a solid 8% growth has passed, uh, this past quarter. And um, so I I I think it's returning to to normaly.
And and then lastly Robert, I guess we should expect some continuing ebit, doll margin expansion because I I'm assuming you have a lot of your infrastructure built in except for Integra cells. So you know, Top Line should drive natural eBid doll progression. Is that kind of the logic.
I think you're you're right. I mean, it it, it will depend on, you know, the Topline growth in terms of the even achievement in Q3 and Q4. Um, we do have a couple of initiatives integral being 1 of them and and what that also, the buildup of our facilities, you know, in, in Paris and, and some further build out of capabilities in Belgium. Um, so there will be some additional headcount and expenses that we would expect to ramp in, in, in in in, you know, later in in the second half. Um, but in general, yes, we're certainly driving towards, you know, profitable revenue and and and, and and, and, and possibly. But
Thank you.
Your next question comes from David Larsen with BTIG. Please go ahead.
Hi. This is Jenny on for Dave. Uh, thanks for taking the question. I apologize if you already spoke about this and I'm getting the call. I'm juggling a couple of calls here, but can you just talk about your updated view on tariffs? Your expectation for cost, whether you're passing along this cost or partial costs to customers, and what their appetite to accept those higher costs has been? Thanks.
Yeah, we've seen really no real impact on tariffs across the business. Um, you know, any tariffs that we do, um, have have have an impact on our, on our business. We would, we would absolutely pass through and we have a precedent for that, through Co, you know, historical Co which which our clients are well, aware of. So if there is any impact from a tariff standpoint, it would be passive, but we haven't seen anything material. Uh, today.
Great. Thank you.
Your next question comes from subu nambi with Guggenheim Securities. Please go ahead.
Hey guys, this is Thomas on for Subaru, thanks for taking our questions. I just want to touch on the guide again. Can you just talk about where the offset is to that headwind from lower surrender revenue? And the re reiterated guide is that just stronger performance across the portfolio.
I think if you, you know, in general, it's just, you know, a stronger portfolio. You can see we had increases, obviously, in commercial revenue; we had increases in clinical trial revenue and in clinical trial count. Um, so we've really seen increases across the board in our services lines as well as in the product lines.
And then how much of the second and a half guide for Revenue, depends on Pharma clinical and Commercial Milestones, that may be out of your control or is that largely due risk at this point.
Uh, just to remind you, any new approvals that would happen here recently take a while to ramp, so uh,
That isn't really a, a part of or a factor in our guide.
Okay. And then if I could just sneak 1 more in uh, on China here, any updates you can share on how you're progressing there. Uh, and any Milestones you can point us to as we look for growth. Uh, in that region for you guys. Thank you.
Our Market to expand in China uh, you know, or any recovery in 2025 and that's reflected in our guidance. You know, we continue to monitor our customers there and
And the and the and the various domestic government stimulus programs but nothing really has changed that much.
Our next question comes from Mac Ito with Stevens Inc, please go ahead.
Uh good afternoon, um, now that the DHL transaction is closed, can you comment on how your customers are responding to cry for becoming a little bit more carrier? Agnostic? And just wanted the feedback then thus far.
Overall, it's been extremely positive. Um, you know, folks are are excited to see what the the, you know, the lift benefit from DHL will be as it relates to obviously Logistics Solutions and flexibility. Uh, it also provides them the ability to continue to work with their carriers of choice and, and to weave in, uh, you know, DHL competencies, uh, complimentary basis. So, um, overall I think very very positive. Matt, Matt, this is just beginning. We just began the launch and the DHL is a huge company, uh, you know, approaching a hundred billion dollars and so, um, the, uh, in revenue. And so, it takes a little while to, to, to get these things into place. So this is not an
You know, it's not like it it's not instant. It it does take a little while to get them in place but but Mark is correct about, you know, the direction.
I appreciate that and, uh, just following up on Integra, so, obviously that's a little margin dilutive at the moment as you ramp, but I was kind of curious. If you could, uh, get some, you know, qualitative aspects of what you expect, the long-term margin profile for that, uh, business plan,
I'll get I'll turn over to mark, but, but in just a second but I, um, integral, you know, is just ramping up and it it's, it's, it's um, it's a revolutionary, uh, service. I mean, the way we're, we put it together, uh, the cryo preservation service, and, and we, we're doing some tech transfers right now. And both, uh, Houston and in, uh, Belgium. And so, uh, we expect some Revenue, uh, in the fourth and third fourth quarter, late, third, quarter, maybe fourth quarter of this year. And and then more significant revenue, of course, uh, in 2026. So it it's coming along uh, on schedule and development. We're very enthusiastic about it. It does have a a very good Financial profile for the future and I'll let Mark talked about that. Yes Jerry had mentioned, you know, you know we've historically you know uh discussed you know gross margins in the 60% range at at maturity for
Service business. And we expect the integral business at maturity, to be in line with that expectation.
Thank you for taking my questions.
Oh I believe he was just thank you guys. Um your next question comes from Punnett suda with Ling Partners. Please go ahead.
Uh, yeah. Hi guys. Um, thanks for the questions here. So, um, first 1 just wanted to confirm those 2 million had been for, uh, annual for surupa. Were you baking in anything for 2026 there. Um and are you seeing any signs of broader caution or delays among the, you know, aav, um, gene therapy programs or clients, you talked about, um, you know, 5 of them. Um, um
You know that you're supporting. They received a negative opinion from the FTA. I just wanted to make sure if those two issues are tied together.
I'll turn the uh the technical side, the the the gene side over to Mark in just a moment. But uh, could we we we, uh, haven't baked anything into 2026, we have it commented on 2026 and we will. But we will you know, later on in the year after our budgeting and and so forth takes place. But um uh so we'll, we'll Reserve, we'll Reserve that that 1. But in terms of the other parts of your question, mark, do you want to answer that part? Yeah, you know, I I
You this really is is just a, you know, you had a change in administration. Um, you know, you had a change at the FDA which which, you know obviously they had a to to get in and get their their feet wet so to speak and and you know, I think that that you know, some of the the data that you've seen is them just really trying to get an understanding of the space a bit and and, you know, taking a little bit more caution around around the data side of of some of these, uh, you know, these filings
That as, as obviously a little bit of caution, you know, but you also see very positive responses from the FDA as it relates to things like rims. So, so I think that, um, you know, on a whole we don't see any material impact. Uh, to, you know, what we, what we expected historically around around the, the market opportunity associated with selling Gene commercialization. I'm not sure if Tom you want to add anything to that or not. I just panicked. I think maybe clarify 1. I, the 2 million headwind, uh, from Sarepta is for the second half of the year. Only not for the full year.
Right.
Got it. Okay, uh, thanks for that. And then on mve could you clarify which end of market where you saw the most growth? Was the animal side? Um, is it the Pharma? Maybe just walk us through um you know which which business line actually drove MBE growth for you.
Sure, I'll distribute a channel.
Yeah, well it it was a solid second quarter, you say, but it was really overall balanced demand. The Animal Health Market was particularly strong on the doer side. They had a record amount of doers sold on the Animal House side but it was also solid for cryogenic system sales in the APAC outside of China. And in Amia
So majority of the growth was was in APAC, just wanted to clarify because we're because constantly hearing about Capital Equipment challenges. So I wanted to square that and make sure I understand correctly where the NBA growth is coming from. So it's it's APAC outside of China. Amia North America was okay. It wasn't, you know, a record or anything like that and then on the doer side it was balanced on across Animal Health companies across the globe.
Got it. Okay. Um and then maybe just lasts 1 for me. Um with um you highlighted DHL but just wondering, you know, are you seeing any change in the competitive landscape overall? Um,
You know, you have a number of...
other, um, um, logistics companies, uh, that have been looking at these, these markets, um, just wanted to get a sense of, uh, if if you're seeing any change in the competitor, Dynamics, or the market share for clinical trials,
I think significant everything we see is positive and we do have a distribution strategy. The first part of that was DHL. We're talking with other global companies in addition uh, to to, to what we already have. And um, uh,
Actually we can we can support most of those companies that you were talking about so are referring to so nothing. Nothing significant there to talk about other than its positive.
Yeah. And as you can see from the data, you know, we're continuing to increase the number of clinical trials. We support
Um we're continuing to fortify our, our leadership position by the expanded Solutions, and you can see the bio storage bio Services has grown significantly in Q2 by 28%.
So, you know,
Really everything points to us, continuing to build out our leadership position, and really being the the the down and player for some Gene Supply Chain Solutions.
Got it. Okay, helpful guys. Thank you.
And your next question comes from David, Larsen with btig, please go ahead.
Hey um I hop on the call a little bit late, I'm traveling. Um you just talk about how mve results came in relative to your own expectations. It looks like there's up 8% year-over-year. That was pretty good to me. Just any more color, color color there. It would be very helpful and it looks like it's kind of turned around and it's now growing again.
Yeah, I think, you know, look MBE performed. Well, yeah, with 8% growth year over year, um you know, we we we have seen certainly, you know, in improved the ma'am um for mv's products and and as we said in our press release as well. Yeah. Mve is also, you know, bringing out new products into the market. Um, so there's also Innovation going on that we believe will will drive demand and further demand as well. Um you know, on the margin side, you know, they're they're showing strong robust, margins, you know they've grown margins over prior year about 2.6 percentage points to 44.9%. Um so so it's it's a strong good business. It's it's a profitable business.
That's great. And then can you just talk about the broader market like the cro space was under pressure earlier in the year? Uh, there's a lot of uncertainty around like the IRA different like 3 3 different, executive orders, tariffs, and then it looks like maybe, um, Sierra sort of came back with demand. Now, progressing, just, what are you seeing in terms of overall sentiment from your customers? Clinical trial, activity demand, uh, for for the doer. It's just
More closer. There would be very helpful. Thank you.
Yeah. So you know, obviously you can see by our clinical trial account and the increase that that the market is continues to be very resilient and positive for us as it relates to to selling Gene clinical engagement. You know, we have extensive engagement with with the cro Community, as well as the cdmo community. The cdmo community has come back with very strong results, uh which which we think demonstrates the strength of the space since they are the the obviously the leader in the actual production of a lot of these uh, these clinical materials. Uh, you know that ultimately we move from 1 place to another. So um you know overall I think that the sentiment of the cell and Gene environment despite you know obviously some of the the shorter term funding challenges that you see um in in earlier phase programs as well as the FDA have not impacted our portfolio and uh obviously have not impacted the CDO community.
So we're we're very positive overall.
Thanks very much. We'll start a good quarter. Congrats.
Thank you.
There are no further questions at this time. I'm pleased to turn the call back over to Gerald Shelton.
Um,
You, you ended very quickly. Thank you very, very much for your questions. All of you and thanks for the discussion in closing, we delivered a strong second quarter performance across all areas of our life sciences business,
which is a key key to our future growth grew, 21%, year-over-year, led by 28%, increase in BIO storage, bioservices revenue and a 33% gain in commercial selling gene therapy. Support. We also saw an increase in demand in our life sciences products, which generated a solid 8% Revenue growth for the quarter
We want to thank you for joining us today. It was a great quarter and we appreciate your continued support interest in our company and we look forward to speaking with you. Again, when we report on our third quarter Financial results, we wish you all a good evening.
Ladies and gentlemen, this concludes today's conference call. Thank you so much for your participation. You may now disconnect