Cryoport, Inc. — Call Transcript 2025

Good afternoon and welcome to Cryoport's 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 Fromer, from KCSA Strategic Communications. Please go ahead. Thank you, Operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. 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 to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission, and those described from time to time in the other reports which we file with the Securities and Exchange Commission. As a reminder, Cryoport has uploaded their second quarter 2025 in-review document to the main page of the Cryoport website. These documents provide a review of Cryoport's financial and operational performance and a 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 CRYOPDP to DHL, CRYOPDP's financials, which were previously a part of Cryoport's Life Sciences Services reportable segment, are now presented as discontinued operations. Cryoport previously provided quarterly historical information on these spaces for fiscal year 2024 in our first quarter 2025 year-review document, which remains available on the Cryoport website. This information is intended to support the financial modeling efforts of those needing this information. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes Cryoport's fiscal year 2025 revenue guidance. It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours Thank you, Todd. Good afternoon, everyone. With us this afternoon is our Chief Financial Officer, Robert Stefanovich, our Chief Scientific Officer, Dr. Mark W. Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. Today, Cryoport Inc. reported strong double-digit revenue growth across all revenue streams in 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 cell and gene therapies increased by 33%, and biostorage bioservices grew 28%, underscoring the growing demand for our integrated temperature-controlled supply chain platform. This growth continues to be fueled by the increasing adoption and scaling of cell and 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 also continued to expand our product portfolio with the launch of our next-generation MVE SC 4/2V and SC 4/3V 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 MVE high-efficiency 800C 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 in our adjusted EBITDA as a result of our Pathway to Profitability initiative. Given the strong 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 one 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 CRYOPDP in a transaction that included cash payments of approximately $200 million to Cryoport Inc. Aside from a strong infusion of capital, this strategic partnership provides for enhancing our global biologics capabilities, biologistics capabilities, and effectiveness by leveraging DHL's competencies, scale, and reach in APAC and EMEA. 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 one of our clients that has received some immediate attention. One 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 than originally forecast in 2025. We do not expect this to have a material impact on our business. Our guidance that we reaffirmed today considers an estimated revenue impact of approximately $2 million from this client for the remainder of the year. As of June 30, Cryoport Inc. supported a record 728 clinical trials, which is approximately 70% of the industry cell and gene therapy trials. For the remainder of 2025, we anticipate up to an additional 20 application filings, one new therapy approval, and an additional three approvals for label or geographic expansion. Also, we want to note that during the quarter, five of our clients that had filed for approval 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 the recent changes within the FDA, many analysts are thinking more positively about their chances of gaining 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, lie 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, Abecma, therapeutics that was approved by the FDA during the second quarter. I probably mispronounced that, and I think it's Abecma. 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 the regenerative 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-controlled supply chain solutions, coupled with real-time informatics and regulatory compliant processes, enable 728 active clinical trials and 18 commercial therapies worldwide. Whether supporting first-in-human studies or globally scaled commercial treatments, Cryoport ensures end-to-end integrity. From the laboratory to the manufacturer, to the points of care, to the patient's bedside, our advanced packaging systems, biostorage and bioservices capabilities, biologistics, and cryogenic infrastructure have become mission-critical to the industry's leading biopharma companies, 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. 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 one on your touch-tone 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 two. If you are using a speakerphone, please lift the handset before pressing any keys. Just a moment for your first question. Your first question comes from Kyle Crews with UBS. Please go ahead. Thank you for taking our questions. Could you please provide a brief update on the non-cell and gene therapy demand that appears to be driving the product revenue in the quarter? Could you provide an update on IntegriCell and how the adoption there is going? Thank you. I think both those questions can be answered by Dr. Mark W. Sawicki. Yeah, so IntegriCell continues to progress nicely. We are moving forward with—I'm sorry, just give me one second here. 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 MVE, we are feeling better than we were about six to 12 months ago. The revenue there did improve, up 8%. We do continue to believe that the business stabilized 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 could see with other life science companies. In particular, at MVE, they had a very nice quarter from the animal health side with cryogenic system sales. Go ahead, Mark, on IntegriCell. I apologize. We mixed up. Yeah, so IntegriCell is proceeding on track. We do anticipate the initiation of revenue production this quarter, with meaningful revenue starting in 2026. We are actively tech transferring in our first clients right now, which takes a little bit of time, but that's going to start to help support the revenue contributions later this year and next year. Great. Maybe as a follow-up there, you maintained the guidance, but you had a really great quarter, and it seems like the market seems to have improved and there are upcoming revenue streams into 2H. Can you go through the phasing on your 2H guidance and maybe go over why you didn't increase the guide? Thank you. Yeah, we didn't increase the guidance because we're being prudent, of course. You know, given the uncertainties in the global economy and geopolitical uncertainties, as well as administrative uncertainties, and looking at the market and the puts and takes and so forth, we felt it was more prudent to keep our guidance where it is. That's why we reaffirmed it the way it is. Great. Thank you very much. Your next question comes from David Saxon with Needham. Please go ahead. Great. Thanks for taking my questions and congrats on the quarter. Maybe just a follow-up to that last question on guidance. Just, you know, comps, I guess, third quarter looks to be an easier comp and then, you know, easy comp, but slightly harder in the fourth quarter. How should we think about growth exiting the year and any early thoughts on 2026, just given, you know, the momentum you're seeing? I'll have a follow-up. Yeah, just on 2026, obviously on 2026 we'll give guidance typically at year-end. You know, we are providing some outlook in our review piece that's posted on our website related to the expectations on VLA and MA filings and approvals. I'd encourage you to look at that document as well. I think you're looking at the second half of the year, as Jerrell mentioned, you know, we're holding to our guidance for the full year. There's certainly upside opportunity there, but I typically would expect obviously a stronger Q4 compared to the Q3 revenue growth. I think overall, in terms of 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 the gross margins, both on products and services, bringing total gross margins to 47%. That's a significant increase over a prior year. From a bottom-line perspective as well, if you look at the adjusted EBITDA from continuing operations where for Q2 we had a -$0.9 million from a -$5.6 million in the prior year or a -$2.8 million in Q1 of this year. You know, everything is moving in the right direction: revenue growth, gross margins, as well as the bottom line. We certainly want to push that forward during the second half as well. That's, I think, as much as we can say at this point. Okay, great. No, that was super helpful. Thanks for that. I guess just on the balance sheet, I mean, $426 million in cash post the sale of CRYOPDP. Looks like you did some smaller share repurchases over the last couple of months, but 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. Would love your updated thoughts there. Thanks so much. Yeah, David, we did bounce back some comments talking in the second quarter, and we'll continue to take our usual prudent approach to deploying capital. We'll be thoughtful, opportunistic, and we'll also be strategic with all the funds that we have. We'll continue to consider buying back our stock as we think it's significantly undervalued in the market. Just to put a number on it, we did buy back 1 million shares since our last report. Yeah, and Jerrell, just to add, obviously cash is king in this environment. We did pay back the 2025 convertible notes, about $14 million during the second quarter. We obviously will want to maintain a strong balance sheet while evaluating the various options that we have to apply our capital and our cash. Okay, if I could just, I guess, follow up on that. Any change in your appetite for M&A, or you just want to kind of protect the balance sheet and maybe do some opportunistic share purchases? Is that the message? As I said, you know, David, we'll be opportunistic, and if an acquisition comes along that's compelling, it's accretive, it meets our profile, we'll certainly consider it. You know, our focus right now is internal. We have some initiatives going on that we need to execute on. We're constantly getting opportunities presented to us. We look at them, and if they're compelling, we will definitely consider them, but there's no plan for any acquisitions at this point. Okay, that's helpful. Thanks, Jerrell. Your next question comes from Matt Stanton with Jefferies. Please go ahead. Hey, thanks. Wanted to kind of zoom out for a higher-level question, you know, move for Jerrell. Just in terms of the late quarter FDA update on the REMS and certain indications of approved CAR-Ts, what's the early feedback that you've heard from customers? Is there any way to kind of talk about the impact or potential impact this could do, you know, due to patient volumes and any more color on timing as it relates to that update that we got late in the quarter? Thank you. Hey, Matt. The impact of the ruling on REMS is very positive, and everyone sees it as positive. It's really too early to quantify exactly what that means, but we do think it'll make it much easier for everyone in the system. It will certainly make it easier for rural points of care and so forth. Mark may want to add to that. No, I think Jerrell is absolutely correct. It should have a definitively beneficial impact, and some of our key clients have already reported on it in a positive way, and others are still to report. We would expect to see updated forecasts from our clients and any impact on that during the third quarter. We should have more clarity at the next earnings call. Okay, great. Thanks. Maybe just on biopharm, I think for the product side, you talked more about animal health, but just, you know, in terms of your biopharma customers, either by product or region, pretty robust trends in the quarter. What are you hearing from customers in terms of appetite to spend, how that might vary? We've seen kind of mixed signals from CROs and spend on certain projects, capital-related projects maybe being pulled back given the macro, but would just love some updated color in terms of your discussions with your biopharma customers globally. Thanks. There is enough capacity for manufacturing in the industry right now. I think that, you know, Mark might want to be, he might want to comment on that further. Yeah, you've got to take a look at where the pullback is occurring. The vast majority of the pullback is really directed through the NIH and ties into preclinical and late preclinical activity. R&D and preclinical, our focus is really on the clinical commercial space. The vast majority of our clients are well-funded and have significant relationships with large pharma and others. We don't anticipate a negative impact from that perspective. In fact, I think that the demonstration of the continued increase in acceleration of the clinical trials supported up to 728, an increase of 44 year-over-year, an increase in phase three trials, demonstrates the continued support of that portfolio, which will have significant benefit for us over time. Thanks. Maybe just one more if I could, Robert, 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. First half saw a lot of good progress on gross margins. Should we expect gross margins to step down modestly in the back half of the year from kind of that 46% in the first half, or do you think that's kind of a sustainable level going forward, just given the number of issues? I think we're certainly going to try to sustain it during the second half. Typically, we'd expect gross margins to increase further just due to operating leverage. We do have some newer initiatives, as you're aware, like IntegriCell and building out some of the facilities in Paris and Belgium and ultimately California. That will have some impact on gross margins as they start ramping up. I would look at, for modeling purposes, to keep it relatively flat. It'd be a temporary impact. Yeah, I mean, our stated goal, you know, based on reaching operating leverage, is really to get to gross margins in excess of 55% with adjusted EBITDA margins of 30%. We think that's a fairly highly achievable amount over a fixable time. Your next question comes from Paul Knight with KeyBanc Capital Markets. Please go ahead. Hi Mark, as you've seen this commercial market accelerate, what are you seeing in terms of competitive dynamics? Are there major players trying to be there? Are some customers wanting to homebrew? What are you seeing or learning as the commercial side grows faster? To be honest, we're seeing more and more of folks that really want the security of supply and the scalability that we offer. We're supporting the vast majority of the commercial space today and are actually engaged in discussion around expansion of what we're doing beyond traditional biologistics into our other service areas. That's why you see the nice step up in our BioServices revenue. We're also very active on integration. Most of the bigger players that you may be referring to actually want to work with us, not against us. They want us to be a component of their offering because of the strength that we have in the space. The DHL Group deal that Jerrell talked about is an example of that. You'll see more of those types of announcements in the coming months and quarters as other larger players in the space want to work with us collaboratively, not competitively. You shouldn't underestimate the power of that integration, Paul. The integrated solution is what is being sought out more and more. Our clients want to simplify their efforts, and so our integrated temperature-controlled supply chain solutions are taking up steam. Jerry, on MVE, do you feel like in the biopharmaceutical market that it was destocking post-COVID, do you think that's starting to be bottoming at this juncture? I think that most of that excess capacity that was built up during COVID has been burned off and that the market is stabilizing. We've had three good quarters at MVE with a solid 8% growth this past quarter, and I think it's returning to normalcy. Lastly, Robert, I guess we should expect some continuing EBITDA margin expansion because I'm assuming you have a lot of your infrastructure built in except for IntegriCell. The top line should drive natural EBITDA progression. Is that kind of the logic? I think you're right. I mean, it will depend on the top line growth in terms of the EBITDA achievement in Q3 and Q4. We do have a couple of initiatives, IntegriCell being one of them, and with that also the build-out of our facilities in Paris and some further build-out of capabilities in Belgium. There will be some additional headcount and expenses that we'd expect to ramp in later in the second half. In general, yes, we're certainly driving towards profitable revenue and positive EBITDA. Thank you. Your next question comes from David Larsen with BTIG. Please go ahead. Hi, this is Jenny on for Dave. Thanks for taking the question. I apologize if you already spoke about this in the beginning of 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 full cost or partial cost 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. Any tariffs that we do have an impact on our business, we would absolutely pass through. We have a precedent for that through historical COVID, which our clients are well aware of. If there is any impact from a tariff standpoint, it would be passed through, but we haven't seen anything material to date. All right, thank you. Your next question comes from Subbu Nambi with Guggenheim Securities. Please go ahead. Hey guys, this is Thomas on for Subbu. 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 surreptitive revenue and the reiterated guide? Is that just stronger performance across the portfolio? I think, in general, it's just 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. We've really seen increases across the board in our services lines, as well as in the product lines. Okay. How much of the second-half guide for revenue depends on pharma, clinical, and commercial milestones that may be out of your control, or is that largely de-risked at this point? Just to remind you, any new approvals that would happen here recently take a while to ramp. That isn't really a part of it or a factor in our guide. Okay. If I could just sneak one more in on China here, any updates you can share on how you're progressing there and any milestones you can point us to as we look for growth in that region for you guys? Thank you. We're not expecting our market to expand in China or any recovery in 2025, and that's reflected in our guidance. We continue to monitor our customers there and the various domestic government stimulus programs, but nothing really has changed that much. Our next question comes from Mac Etoch with Stephens Inc. Please go ahead. Good afternoon. Now that the DHL transaction is closed, can you comment on how your customers are responding to Cryoport becoming a little bit more carrier-agnostic? What has the feedback been thus far? Overall, it's been extremely positive. Folks are excited to see what the lift benefit from DHL Group will be as it relates to logistics solutions and flexibility. It also provides them the ability to continue to work with their carriers of choice and to weave in DHL Group competencies on a complementary basis. Overall, I think very, very positive. Matt, this is just beginning. We just began the launch, and DHL Group is a huge company, you know, approaching $100 billion in revenue. It takes a little while to get these things into place. This is not, you know, it's not instant. It does take a little while to get them in place. Mark is correct about, you know, the direction. I appreciate that. Just following up on IntegriCell, obviously, that's a little margin diluted at the moment as you ramp. I was kind of curious if you could give some qualitative aspects of what you expect the long-term margin profile for that business line to be. I'll turn over to Mark, in just a second. IntegriCell, you know, is just ramping up. It's a revolutionary service. I mean, the way we've put it together, the cryopreservation service. We're doing some tech transfers right now in both Houston and in Belgium. We expect some revenue in the fourth and third, fourth quarter, late third quarter, maybe fourth quarter of this year, and then more significant revenue, of course, in 2026. It's coming along on schedule and development. We're very enthusiastic about it. It does have a very good financial profile for the future. I'll let Mark talk about that. Yeah, as Jerrell had mentioned, we've historically discussed gross margins in the 60% range at maturity for our service business. We expect the IntegriCell business at maturity to be in line with that expectation. Thank you for taking my questions. Your next question. I believe he was just thanking us. Your next question comes from Puneet Souda with Leerink Partners. Please go ahead. Yeah, hi guys. Thanks for the questions here. First one, just wanted to confirm those $2 million had been for annual for surreptite. Were you baking in anything for 2026 there? Are you seeing any signs of broader caution or delays among the, you know, AAV gene therapy programs or clients? You talked about, you know, five of them, you know, that you're supporting. They received negative opinion by FDA. I just wanted to make sure if those two issues are tied together. I'll turn the technical side, the gene side over to Mark in just a moment. We haven't baked anything into 2026. We haven't commented on 2026. We will, later on in the year after our budgeting and so forth takes place. We'll reserve that one. In terms of the other parts of your question, Mark, do you want to answer that part? Yeah, I view this really as just a change in administration. You had a change at the FDA, which obviously they had to get in and get their feet wet, so to speak. I think that some of the data that you've seen is them just really trying to get an understanding of the space a bit and taking a little bit more caution around the data side of some of these filings. You have that as obviously a little bit of caution, but you also see very positive responses from the FDA as it relates to things like REMS. I think that, on a whole, we don't see any material impact to what we'd expected historically around the market opportunity associated with cell and gene commercialization. I'm not sure if Tom, you want to add anything to that or not. Just Puneet, too, I think maybe clarify one. The $2 million headwind from surreptite is for the second half of the year only, not for the full year. Right. Got it. Okay. Thanks for that. On MVE, could you clarify which end of market where you saw the most growth? Was it the animal side? Is it the pharma? Maybe just walk us through which business line actually drove MVE growth for you? Sure. Was it the distributor channel? Yeah. It was a solid second quarter, 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 health side, but it was also solid for cryogenic system sales in APAC outside of China and in EMEA. The majority of the growth was in APAC. I just wanted to clarify because we're constantly hearing about capital equipment challenges. I wanted to square that and make sure I understand correctly where the MVE growth is coming from. It's APAC outside of China, EMEA. North America was okay. It wasn't, you know, a record or anything like that. On the doer side, it was balanced across animal health companies across the globe. Got it. Okay. Maybe just the last one for me. You highlighted DHL, but just wondering, you know, are you seeing any change in the competitive landscape overall? You know, you have a number of other logistics companies that have been looking at these markets. Just wanted to get a sense of if you're seeing any change in the competitive 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 about the global companies in addition to what we already have. Actually, we can support most of those companies that you were talking about or referring to. Nothing significant there to talk about other than it's positive. Yeah, as you can see from the data, we're continuing to increase the number of clinical trials we support. We're continuing to fortify our leadership position by the expanded solutions. You can see the biostorage bioservices has grown significantly in Q2 by 28%. Really, everything points to us continuing to build out our leadership position and really being the dominant player for fertility and supply chain solutions. Got it. Okay. Helpful, guys. Thank you. Your next question comes from David Larsen with BTIG. Please go ahead. Hey, I hop on the call a little bit late. I'm traveling. Could you just talk about how MVE results came in relative to your own expectation? It looks like it was up 8% year-over-year. That was a pretty good range. Any more color there would be very helpful. It looks like it's kind of turned around and it's now growing again. Yeah, I think, yeah, look, MVE performed well, you know, with 8% growth year-over-year. We have seen certainly, you know, an improved kind of demand for MVE's products. As we said in our press release as well, you know, MVE is also, you know, bringing out new products into the market. There's also innovation going on that we believe will drive demand and further demand as well. On the margin side, you know, they're showing strong robust margins. They've grown margins over the prior year about 2.6 percentage points to 44.9%. It's a strong, good business. It's a profitable business. You know, as you know, it's, again, it's by far the leader globally for cryogenic systems. That includes the dewars, the freezers, and related accessories on a global basis. That's great. Can you just talk about the broader market? The CRO space was under pressure earlier in the year. There's a lot of uncertainty around the IRA, three different executive orders, tariffs. It looks like maybe CRO sort of came back with demand now progressing. What are you seeing in terms of overall sentiment from your customers, clinical trial activity, demand for the doers? More color there would be very helpful. Thank you. Yeah, you know, obviously you can see by our clinical trial count and the increase that the market continues to be very resilient and positive for us as it relates to cell and gene clinical engagement. We have extensive engagement with the CRO community as well as the CDMO community. The CDMO community has come back with very strong results, which we think demonstrates the strength of the space since they are obviously the leader in the actual production of a lot of these clinical materials that ultimately we move from one place to another. Overall, I think that the sentiment in the cell and gene environment, despite some of the shorter-term funding challenges that you see in earlier phase programs as well as the FDA, have not impacted our portfolio and obviously have not impacted the CDMO community. We're very positive overall. Thanks very much. You all sent a good quarter. Congrats. Thank you. Thank you. There are no further questions at this time. I'm pleased to turn the call back over to Jerrell Shelton. You ended there pretty quickly. Thank you 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. The Life Sciences Services business, which is a key to our future growth, grew 21% year-over-year, led by a 28% increase in biostorage bioservices revenue and a 33% gain in commercial cell and 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.

Speaker 11: Good afternoon and welcome to Cryoport's 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 Fromer, from KCSA Strategic Communications. Please go ahead. Good afternoon and welcome to Cryoport's second quarter 2025 earnings conference call. good afternoon and welcome to cryoport's second quarter 2025 earnings conference call All participants are currently in listen-only mode. all participants are currently in listen-only mode Following the presentation, we will conduct a question-and-answer session. 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. 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. as a reminder this call is being recorded I will now turn the call over to your host, Todd Fromer, from KCSA Strategic Communications. i will now turn the call over to your host todd fromer from kcsa strategic communications Please go ahead. please go ahead

Speaker 4: Thank you, Operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. 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. Thank you, Operator. thank you operator Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. before we begin today i would like to remind everyone that this conference call contains certain forward-looking statements All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. all statements that address our operating performance events or developments that we expect or anticipate occurring in the future are forward-looking statements These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. these forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team Our management team believes that these forward-looking statements are reasonable as and when made. our management team believes that these forward-looking statements are reasonable as and when made However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. 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. 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 to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission, and those described from time to time in the other reports which we file with the Securities and Exchange Commission. As a reminder, Cryoport has uploaded their second quarter 2025 in-review document to the main page of the Cryoport website. These documents provide a review of Cryoport's financial and operational performance and a general business outlook. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events, and developments to differ materially from our historical experience and our present expectations or projections. in addition forward-looking statements are subject to certain risks and uncertainties that could cause actual results events and developments to differ materially from our historical experience and our present expectations or projections These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission, and those described from time to time in the other reports which we file with the Securities and Exchange Commission. these risks and uncertainties include but are not limited to those described in item 1a risk factors and elsewhere in our annual report on form 10-k to be filed with the securities and exchange commission and those described from time to time in the other reports which we file with the securities and exchange commission As a reminder, Cryoport has uploaded their second quarter 2025 in-review document to the main page of the Cryoport website. as a reminder cryoport has uploaded their second quarter 2025 in-review document to the main page of the cryoport website These documents provide a review of Cryoport's financial and operational performance and a general business outlook. these documents provide a review of cryoport's financial and operational performance and a 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 CRYOPDP to DHL, CRYOPDP's financials, which were previously a part of Cryoport's Life Sciences Services reportable segment, are now presented as discontinued operations. Cryoport previously provided quarterly historical information on these spaces for fiscal year 2024 in our first quarter 2025 year-review document, which remains available on the Cryoport website. This information is intended to support the financial modeling efforts of those needing this information. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes Cryoport's fiscal year 2025 revenue guidance. It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours 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 CRYOPDP to DHL, CRYOPDP's financials, which were previously a part of Cryoport's Life Sciences Services reportable segment, are now presented as discontinued operations. 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 cryopdp to dhl cryopdp's financials which were previously a part of cryoport's life sciences services reportable segment are now presented as discontinued operations Cryoport previously provided quarterly historical information on these spaces for fiscal year 2024 in our first quarter 2025 year-review document, which remains available on the Cryoport website. cryoport previously provided quarterly historical information on these spaces for fiscal year 2024 in our first quarter 2025 year-review document which remains available on the cryoport website This information is intended to support the financial modeling efforts of those needing this information. this information is intended to support the financial modeling efforts of those needing this information Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. please note that unless otherwise indicated all revenue figures discussed today will refer to continuing operations This includes Cryoport's fiscal year 2025 revenue guidance. this includes cryoport's fiscal year 2025 revenue guidance It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. it is now my pleasure to turn the call over to mr jerrell shelton chief executive officer of cryoport Jerry, the floor is yours jerry the floor is yours

Speaker 1: Thank you, Todd. Good afternoon, everyone. With us this afternoon is our Chief Financial Officer, Robert Stefanovich, our Chief Scientific Officer, Dr. Mark W. Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. Today, Cryoport Inc. reported strong double-digit revenue growth across all revenue streams in 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 cell and gene therapies increased by 33%, and biostorage bioservices grew 28%, underscoring the growing demand for our integrated temperature-controlled supply chain platform. This growth continues to be fueled by the increasing adoption and scaling of cell and gene therapies, a positive trend we believe will continue for years to come. Thank you, Todd. thank you todd Good afternoon, everyone. good afternoon everyone With us this afternoon is our Chief Financial Officer, Robert Stefanovich, our Chief Scientific Officer, Dr. Mark W. with us this afternoon is our chief financial officer robert stefanovich our chief scientific officer dr mark w Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. sawicki and our vice president of corporate development and investor relations thomas heinzen Today, Cryoport Inc. reported strong double-digit revenue growth across all revenue streams in our Life Sciences Services for the second quarter. today cryoport inc reported strong double-digit revenue growth across all revenue streams in our life sciences services for the second quarter Service revenue increased 21% year-over-year, accounting for 54% of total revenue from continuing operations. service revenue increased 21% year-over-year accounting for 54% of total revenue from continuing operations Notably, revenue from our support of commercial cell and gene therapies increased by 33%, and biostorage bioservices grew 28%, underscoring the growing demand for our integrated temperature-controlled supply chain platform. notably revenue from our support of commercial cell and gene therapies increased by 33% and biostorage bioservices grew 28% underscoring the growing demand for our integrated temperature-controlled supply chain platform This growth continues to be fueled by the increasing adoption and scaling of cell and gene therapies, a positive trend we believe will continue for years to come. this growth continues to be fueled by the increasing adoption and scaling of cell and 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 also continued to expand our product portfolio with the launch of our next-generation MVE SC 4/2V and SC 4/3V 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 MVE high-efficiency 800C 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. 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. 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 also continued to expand our product portfolio with the launch of our next-generation MVE SC 4/2V and SC 4/3V vapor shippers, which offer medical and animal health professionals improved safety and reliability for transporting and preserving sensitive biological materials at cryogenic temperatures. we also continued to expand our product portfolio with the launch of our next-generation mve sc 4/2v and sc 4/3v 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 MVE high-efficiency 800C cryogenic storage system, which was released earlier this year. during the second quarter we also recorded revenue in accordance with plan from sales of mve high-efficiency 800c 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. 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. 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 in our adjusted EBITDA as a result of our Pathway to Profitability initiative. Given the strong 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 one 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 CRYOPDP in a transaction that included cash payments of approximately $200 million to Cryoport Inc. 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 in our adjusted EBITDA as a result of our Pathway to Profitability initiative. 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 in our adjusted ebitda as a result of our pathway to profitability initiative Given the strong 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. given the strong 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 one 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 CRYOPDP in a transaction that included cash payments of approximately $200 million to Cryoport Inc. i'm pleased with all the progress of all of our business units but i would be remiss if i didn't highlight one 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 cryopdp in a transaction that included cash payments of approximately $200 million to cryoport inc Aside from a strong infusion of capital, this strategic partnership provides for enhancing our global biologics capabilities, biologistics capabilities, and effectiveness by leveraging DHL's competencies, scale, and reach in APAC and EMEA. 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 one of our clients that has received some immediate attention. One 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. Aside from a strong infusion of capital, this strategic partnership provides for enhancing our global biologics capabilities, biologistics capabilities, and effectiveness by leveraging DHL's competencies, scale, and reach in APAC and EMEA. aside from a strong infusion of capital this strategic partnership provides for enhancing our global biologics capabilities biologistics capabilities and effectiveness by leveraging dhl's competencies scale and reach in apac and emea We will be increasingly well-positioned to expand our life sciences business and deepen our leadership in the rapidly growing global regenerative medicine market. 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. 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 one of our clients that has received some immediate attention. before we take your questions i want to briefly address a unique situation with one of our clients that has received some immediate attention One of our gene therapy clients temporarily paused the distribution of their commercial therapy for about a week in July. one 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. the therapy is now back on the market and shipping to patients However, that company anticipates treating fewer patients than originally forecast in 2025. We do not expect this to have a material impact on our business. Our guidance that we reaffirmed today considers an estimated revenue impact of approximately $2 million from this client for the remainder of the year. As of June 30, Cryoport Inc. supported a record 728 clinical trials, which is approximately 70% of the industry cell and gene therapy trials. For the remainder of 2025, we anticipate up to an additional 20 application filings, one new therapy approval, and an additional three approvals for label or geographic expansion. Also, we want to note that during the quarter, five of our clients that had filed for approval earlier this year or late last year received negative opinions from the FDA or MAA. However, that company anticipates treating fewer patients than originally forecast in 2025. however that company anticipates treating fewer patients than originally forecast in 2025 We do not expect this to have a material impact on our business. we do not expect this to have a material impact on our business Our guidance that we reaffirmed today considers an estimated revenue impact of approximately $2 million from this client for the remainder of the year. our guidance that we reaffirmed today considers an estimated revenue impact of approximately $2 million from this client for the remainder of the year As of June 30, Cryoport Inc. supported a record 728 clinical trials, which is approximately 70% of the industry cell and gene therapy trials. as of june 30 cryoport inc supported a record 728 clinical trials which is approximately 70% of the industry cell and gene therapy trials For the remainder of 2025, we anticipate up to an additional 20 application filings, one new therapy approval, and an additional three approvals for label or geographic expansion. for the remainder of 2025 we anticipate up to an additional 20 application filings one new therapy approval and an additional three approvals for label or geographic expansion Also, we want to note that during the quarter, five of our clients that had filed for approval earlier this year or late last year received negative opinions from the FDA or MAA. also we want to note that during the quarter five of our clients that had filed for approval 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 the recent changes within the FDA, many analysts are thinking more positively about their chances of gaining 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, lie 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, Abecma, therapeutics that was approved by the FDA during the second quarter. All these clients have requested meetings with the regulators to find a pathway forward to bring their therapies to market. 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 the recent changes within the FDA, many analysts are thinking more positively about their chances of gaining approval later this year or early in 2026. given the need for these therapies along with the recent changes within the fda many analysts are thinking more positively about their chances of gaining 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, lie 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. the strength and resilience of cryoport's performance in the second quarter despite these challenges faced by a few of our clients lie 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, Abecma, therapeutics that was approved by the FDA during the second quarter. 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 abecma therapeutics that was approved by the fda during the second quarter I probably mispronounced that, and I think it's Abecma. 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 the regenerative 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-controlled supply chain solutions, coupled with real-time informatics and regulatory compliant processes, enable 728 active clinical trials and 18 commercial therapies worldwide. Whether supporting first-in-human studies or globally scaled commercial treatments, Cryoport ensures end-to-end integrity. I probably mispronounced that, and I think it's Abecma. i probably mispronounced that and i think it's abecma 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. 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. 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 the regenerative medicine industry accelerates, the complexity and precision required to safely deliver personalized, often life-saving therapies has never been greater. as the regenerative 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-controlled supply chain solutions, coupled with real-time informatics and regulatory compliant processes, enable 728 active clinical trials and 18 commercial therapies worldwide. our global platform of temperature-controlled supply chain solutions coupled with real-time informatics and regulatory compliant processes enable 728 active clinical trials and 18 commercial therapies worldwide Whether supporting first-in-human studies or globally scaled commercial treatments, Cryoport ensures end-to-end integrity. whether supporting first-in-human studies or globally scaled commercial treatments cryoport ensures end-to-end integrity From the laboratory to the manufacturer, to the points of care, to the patient's bedside, our advanced packaging systems, biostorage and bioservices capabilities, biologistics, and cryogenic infrastructure have become mission-critical to the industry's leading biopharma companies, 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. Now I'll ask the operator to open the lines for your questions. From the laboratory to the manufacturer, to the points of care, to the patient's bedside, our advanced packaging systems, biostorage and bioservices capabilities, biologistics, and cryogenic infrastructure have become mission-critical to the industry's leading biopharma companies, CDMOs, and researchers alike. from the laboratory to the manufacturer to the points of care to the patient's bedside our advanced packaging systems biostorage and bioservices capabilities biologistics and cryogenic infrastructure have become mission-critical to the industry's leading biopharma companies 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. 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 do more than support the life sciences ecosystem We make it responsive, resilient, and ready for the future of medicine. we make it responsive resilient and ready for the future of medicine This concludes my prepared remarks. this concludes my prepared remarks Now I'll ask the operator to open the lines for your questions. now i'll ask the operator to open the lines for your questions

Speaker 11: 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 one on your touch-tone 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 two. If you are using a speakerphone, please lift the handset before pressing any keys. Just a moment for your first question. Your first question comes from Kyle Crews with UBS. Please go ahead. Thank you so much. thank you so much Ladies and gentlemen, we will now begin the question-and-answer session. ladies and gentlemen we will now begin the question-and-answer session Should you have a question, please press star followed by one on your touch-tone phone. should you have a question please press star followed by one on your touch-tone phone You'll hear a prompt that your hand has been raised. 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 two. should you wish to remove your hand from the queue please press star followed by two If you are using a speakerphone, please lift the handset before pressing any keys. if you are using a speakerphone please lift the handset before pressing any keys Just a moment for your first question. just a moment for your first question Your first question comes from Kyle Crews with UBS. your first question comes from kyle crews with ubs Please go ahead. please go ahead

Speaker 10: Thank you for taking our questions. Could you please provide a brief update on the non-cell and gene therapy demand that appears to be driving the product revenue in the quarter? Could you provide an update on IntegriCell and how the adoption there is going? Thank you. Thank you for taking our questions. thank you for taking our questions Could you please provide a brief update on the non-cell and gene therapy demand that appears to be driving the product revenue in the quarter? could you please provide a brief update on the non-cell and gene therapy demand that appears to be driving the product revenue in the quarter Could you provide an update on IntegriCell and how the adoption there is going? could you provide an update on integricell and how the adoption there is going Thank you. thank you

Speaker 1: I think both those questions can be answered by Dr. Mark W. Sawicki. I think both those questions can be answered by Dr. i think both those questions can be answered by dr Mark W. mark w Sawicki. sawicki

Speaker 14: Yeah, so IntegriCell continues to progress nicely. We are moving forward with—I'm sorry, just give me one second here. Sorry, can you repeat the first part of the question? Yeah, so IntegriCell continues to progress nicely. yeah so integricell continues to progress nicely We are moving forward with—I'm sorry, just give me one second here. we are moving forward with—i'm sorry just give me one second here Sorry, can you repeat the first part of the question? sorry can you repeat the first part of the question

Speaker 1: The first part was on MVE. Maybe I'll step in. The first part was on MVE. the first part was on mve Maybe I'll step in. maybe i'll step in

Speaker 14: Yeah, please do that. Yeah, please do that. yeah please do that

Speaker 1: For MVE, we are feeling better than we were about six to 12 months ago. The revenue there did improve, up 8%. We do continue to believe that the business stabilized 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 could see with other life science companies. In particular, at MVE, they had a very nice quarter from the animal health side with cryogenic system sales. Go ahead, Mark, on IntegriCell. For MVE, we are feeling better than we were about six to 12 months ago. for mve we are feeling better than we were about six to 12 months ago The revenue there did improve, up 8%. the revenue there did improve up 8% We do continue to believe that the business stabilized in the quarter and in last quarter. we do continue to believe that the business stabilized 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 could see with other life science companies. globally markets have been disrupted by governmental policies and we do expect the uncertainty to continue to impact capital spending as you could see with other life science companies In particular, at MVE, they had a very nice quarter from the animal health side with cryogenic system sales. in particular at mve they had a very nice quarter from the animal health side with cryogenic system sales Go ahead, Mark, on IntegriCell. go ahead mark on integricell

Speaker 14: I apologize. We mixed up. Yeah, so IntegriCell is proceeding on track. We do anticipate the initiation of revenue production this quarter, with meaningful revenue starting in 2026. We are actively tech transferring in our first clients right now, which takes a little bit of time, but that's going to start to help support the revenue contributions later this year and next year. I apologize. i apologize We mixed up. we mixed up Yeah, so IntegriCell is proceeding on track. yeah so integricell is proceeding on track We do anticipate the initiation of revenue production this quarter, with meaningful revenue starting in 2026. we do anticipate the initiation of revenue production this quarter with meaningful revenue starting in 2026 We are actively tech transferring in our first clients right now, which takes a little bit of time, but that's going to start to help support the revenue contributions later this year and next year. we are actively tech transferring in our first clients right now which takes a little bit of time but that's going to start to help support the revenue contributions later this year and next year

Speaker 10: Great. Maybe as a follow-up there, you maintained the guidance, but you had a really great quarter, and it seems like the market seems to have improved and there are upcoming revenue streams into 2H. Can you go through the phasing on your 2H guidance and maybe go over why you didn't increase the guide? Thank you. Great. great Maybe as a follow-up there, you maintained the guidance, but you had a really great quarter, and it seems like the market seems to have improved and there are upcoming revenue streams into 2H. maybe as a follow-up there you maintained the guidance but you had a really great quarter and it seems like the market seems to have improved and there are upcoming revenue streams into 2h Can you go through the phasing on your 2H guidance and maybe go over why you didn't increase the guide? can you go through the phasing on your 2h guidance and maybe go over why you didn't increase the guide Thank you. thank you

Speaker 14: Yeah, we didn't increase the guidance because we're being prudent, of course. You know, given the uncertainties in the global economy and geopolitical uncertainties, as well as administrative uncertainties, and looking at the market and the puts and takes and so forth, we felt it was more prudent to keep our guidance where it is. That's why we reaffirmed it the way it is. Yeah, we didn't increase the guidance because we're being prudent, of course. yeah we didn't increase the guidance because we're being prudent of course You know, given the uncertainties in the global economy and geopolitical uncertainties, as well as administrative uncertainties, and looking at the market and the puts and takes and so forth, we felt it was more prudent to keep our guidance where it is. you know given the uncertainties in the global economy and geopolitical uncertainties as well as administrative uncertainties and looking at the market and the puts and takes and so forth we felt it was more prudent to keep our guidance where it is That's why we reaffirmed it the way it is. that's why we reaffirmed it the way it is

Speaker 10: Great. Thank you very much. Great. great Thank you very much. thank you very much

Speaker 11: Your next question comes from David Saxon with Needham. Please go ahead. Your next question comes from David Saxon with Needham. your next question comes from david saxon with needham Please go ahead. please go ahead

Speaker 12: Great. Thanks for taking my questions and congrats on the quarter. Maybe just a follow-up to that last question on guidance. Just, you know, comps, I guess, third quarter looks to be an easier comp and then, you know, easy comp, but slightly harder in the fourth quarter. How should we think about growth exiting the year and any early thoughts on 2026, just given, you know, the momentum you're seeing? I'll have a follow-up. Great. great Thanks for taking my questions and congrats on the quarter. thanks for taking my questions and congrats on the quarter Maybe just a follow-up to that last question on guidance. maybe just a follow-up to that last question on guidance Just, you know, comps, I guess, third quarter looks to be an easier comp and then, you know, easy comp, but slightly harder in the fourth quarter. just you know comps i guess third quarter looks to be an easier comp and then you know easy comp but slightly harder in the fourth quarter How should we think about growth exiting the year and any early thoughts on 2026, just given, you know, the momentum you're seeing? how should we think about growth exiting the year and any early thoughts on 2026 just given you know the momentum you're seeing I'll have a follow-up. i'll have a follow-up

Speaker 1: Yeah, just on 2026, obviously on 2026 we'll give guidance typically at year-end. You know, we are providing some outlook in our review piece that's posted on our website related to the expectations on VLA and MA filings and approvals. I'd encourage you to look at that document as well. I think you're looking at the second half of the year, as Jerrell mentioned, you know, we're holding to our guidance for the full year. There's certainly upside opportunity there, but I typically would expect obviously a stronger Q4 compared to the Q3 revenue growth. I think overall, in terms of 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 the gross margins, both on products and services, bringing total gross margins to 47%. That's a significant increase over a prior year. Yeah, just on 2026, obviously on 2026 we'll give guidance typically at year-end. yeah just on 2026 obviously on 2026 we'll give guidance typically at year-end You know, we are providing some outlook in our review piece that's posted on our website related to the expectations on VLA and MA filings and approvals. you know we are providing some outlook in our review piece that's posted on our website related to the expectations on vla and ma filings and approvals I'd encourage you to look at that document as well. i'd encourage you to look at that document as well I think you're looking at the second half of the year, as Jerrell mentioned, you know, we're holding to our guidance for the full year. i think you're looking at the second half of the year as jerrell mentioned you know we're holding to our guidance for the full year There's certainly upside opportunity there, but I typically would expect obviously a stronger Q4 compared to the Q3 revenue growth. there's certainly upside opportunity there but i typically would expect obviously a stronger q4 compared to the q3 revenue growth I think overall, in terms of 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 the gross margins, both on products and services, bringing total gross margins to 47%. i think overall in terms of 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 the gross margins both on products and services bringing total gross margins to 47% That's a significant increase over a prior year. that's a significant increase over a prior year From a bottom-line perspective as well, if you look at the adjusted EBITDA from continuing operations where for Q2 we had a -$0.9 million from a -$5.6 million in the prior year or a -$2.8 million in Q1 of this year. You know, everything is moving in the right direction: revenue growth, gross margins, as well as the bottom line. We certainly want to push that forward during the second half as well. That's, I think, as much as we can say at this point. From a bottom-line perspective as well, if you look at the adjusted EBITDA from continuing operations where for Q2 we had a - $0.9 million from a - $5.6 million in the prior year or a - $2.8 million in Q1 of this year. from a bottom-line perspective as well if you look at the adjusted ebitda from continuing operations where for q2 we had a - $0.9 million from a - $5.6 million in the prior year or a - $2.8 million in q1 of this year You know, everything is moving in the right direction: revenue growth, gross margins, as well as the bottom line. you know everything is moving in the right direction revenue growth gross margins as well as the bottom line We certainly want to push that forward during the second half as well. we certainly want to push that forward during the second half as well That's, I think, as much as we can say at this point. that's i think as much as we can say at this point

Speaker 12: Okay, great. No, that was super helpful. Thanks for that. I guess just on the balance sheet, I mean, $426 million in cash post the sale of CRYOPDP. Looks like you did some smaller share repurchases over the last couple of months, but 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. Would love your updated thoughts there. Thanks so much. Okay, great. okay great No, that was super helpful. no that was super helpful Thanks for that. thanks for that I guess just on the balance sheet, I mean, $426 million in cash post the sale of CRYOPDP. i guess just on the balance sheet i mean $426 million in cash post the sale of cryopdp Looks like you did some smaller share repurchases over the last couple of months, but would love just an update on how you're thinking about capital allocation philosophy. looks like you did some smaller share repurchases over the last couple of months but would love just an update on how you're thinking about capital allocation philosophy You've done M&A in the past. you've done m&a in the past You took a pause there. you took a pause there Would love your updated thoughts there. would love your updated thoughts there Thanks so much. thanks so much

Speaker 1: Yeah, David, we did bounce back some comments talking in the second quarter, and we'll continue to take our usual prudent approach to deploying capital. We'll be thoughtful, opportunistic, and we'll also be strategic with all the funds that we have. We'll continue to consider buying back our stock as we think it's significantly undervalued in the market. Yeah, David, we did bounce back some comments talking in the second quarter, and we'll continue to take our usual prudent approach to deploying capital. yeah david we did bounce back some comments talking in the second quarter and we'll continue to take our usual prudent approach to deploying capital We'll be thoughtful, opportunistic, and we'll also be strategic with all the funds that we have. we'll be thoughtful opportunistic and we'll also be strategic with all the funds that we have We'll continue to consider buying back our stock as we think it's significantly undervalued in the market. we'll continue to consider buying back our stock as we think it's significantly undervalued in the market Just to put a number on it, we did buy back 1 million shares since our last report. Just to put a number on it, we did buy back 1 million shares since our last report. just to put a number on it we did buy back 1 million shares since our last report

Speaker 15: Yeah, and Jerrell, just to add, obviously cash is king in this environment. We did pay back the 2025 convertible notes, about $14 million during the second quarter. We obviously will want to maintain a strong balance sheet while evaluating the various options that we have to apply our capital and our cash. Yeah, and Jerrell, just to add, obviously cash is king in this environment. yeah and jerrell just to add obviously cash is king in this environment We did pay back the 2025 convertible notes, about $14 million during the second quarter. we did pay back the 2025 convertible notes about $14 million during the second quarter We obviously will want to maintain a strong balance sheet while evaluating the various options that we have to apply our capital and our cash. we obviously will want to maintain a strong balance sheet while evaluating the various options that we have to apply our capital and our cash

Speaker 12: Okay, if I could just, I guess, follow up on that. Any change in your appetite for M&A, or you just want to kind of protect the balance sheet and maybe do some opportunistic share purchases? Is that the message? Okay, if I could just, I guess, follow up on that. okay if i could just i guess follow up on that Any change in your appetite for M&A, or you just want to kind of protect the balance sheet and maybe do some opportunistic share purchases? any change in your appetite for m&a or you just want to kind of protect the balance sheet and maybe do some opportunistic share purchases Is that the message? is that the message

Speaker 1: As I said, you know, David, we'll be opportunistic, and if an acquisition comes along that's compelling, it's accretive, it meets our profile, we'll certainly consider it. You know, our focus right now is internal. We have some initiatives going on that we need to execute on. We're constantly getting opportunities presented to us. We look at them, and if they're compelling, we will definitely consider them, but there's no plan for any acquisitions at this point. As I said, you know, David, we'll be opportunistic, and if an acquisition comes along that's compelling, it's accretive, it meets our profile, we'll certainly consider it. as i said you know david we'll be opportunistic and if an acquisition comes along that's compelling it's accretive it meets our profile we'll certainly consider it You know, our focus right now is internal. you know our focus right now is internal We have some initiatives going on that we need to execute on. we have some initiatives going on that we need to execute on We're constantly getting opportunities presented to us. we're constantly getting opportunities presented to us We look at them, and if they're compelling, we will definitely consider them, but there's no plan for any acquisitions at this point. we look at them and if they're compelling we will definitely consider them but there's no plan for any acquisitions at this point

Speaker 12: Okay, that's helpful. Thanks, Jerrell. Okay, that's helpful. okay that's helpful Thanks, Jerrell. thanks jerrell

Speaker 11: Your next question comes from Matt Stanton with Jefferies. Please go ahead. Your next question comes from Matt Stanton with Jefferies. your next question comes from matt stanton with jefferies Please go ahead. please go ahead

Speaker 5: Hey, thanks. Wanted to kind of zoom out for a higher-level question, you know, move for Jerrell. Just in terms of the late quarter FDA update on the REMS and certain indications of approved CAR-Ts, what's the early feedback that you've heard from customers? Is there any way to kind of talk about the impact or potential impact this could do, you know, due to patient volumes and any more color on timing as it relates to that update that we got late in the quarter? Thank you. Hey, thanks. hey thanks Wanted to kind of zoom out for a higher-level question, you know, move for Jerrell. wanted to kind of zoom out for a higher-level question you know move for jerrell Just in terms of the late quarter FDA update on the REMS and certain indications of approved CAR-Ts, what's the early feedback that you've heard from customers? just in terms of the late quarter fda update on the rems and certain indications of approved car-ts what's the early feedback that you've heard from customers Is there any way to kind of talk about the impact or potential impact this could do, you know, due to patient volumes and any more color on timing as it relates to that update that we got late in the quarter? is there any way to kind of talk about the impact or potential impact this could do you know due to patient volumes and any more color on timing as it relates to that update that we got late in the quarter Thank you. thank you

Speaker 1: Hey, Matt. The impact of the ruling on REMS is very positive, and everyone sees it as positive. It's really too early to quantify exactly what that means, but we do think it'll make it much easier for everyone in the system. It will certainly make it easier for rural points of care and so forth. Mark may want to add to that. Hey, Matt. hey matt The impact of the ruling on REMS is very positive, and everyone sees it as positive. the impact of the ruling on rems is very positive and everyone sees it as positive It's really too early to quantify exactly what that means, but we do think it'll make it much easier for everyone in the system. it's really too early to quantify exactly what that means but we do think it'll make it much easier for everyone in the system It will certainly make it easier for rural points of care and so forth. it will certainly make it easier for rural points of care and so forth Mark may want to add to that. mark may want to add to that

Speaker 14: No, I think Jerrell is absolutely correct. It should have a definitively beneficial impact, and some of our key clients have already reported on it in a positive way, and others are still to report. We would expect to see updated forecasts from our clients and any impact on that during the third quarter. We should have more clarity at the next earnings call. No, I think Jerrell is absolutely correct. no i think jerrell is absolutely correct It should have a definitively beneficial impact, and some of our key clients have already reported on it in a positive way, and others are still to report. it should have a definitively beneficial impact and some of our key clients have already reported on it in a positive way and others are still to report We would expect to see updated forecasts from our clients and any impact on that during the third quarter. we would expect to see updated forecasts from our clients and any impact on that during the third quarter We should have more clarity at the next earnings call. we should have more clarity at the next earnings call

Speaker 5: Okay, great. Thanks. Maybe just on biopharm, I think for the product side, you talked more about animal health, but just, you know, in terms of your biopharma customers, either by product or region, pretty robust trends in the quarter. What are you hearing from customers in terms of appetite to spend, how that might vary? We've seen kind of mixed signals from CROs and spend on certain projects, capital-related projects maybe being pulled back given the macro, but would just love some updated color in terms of your discussions with your biopharma customers globally. Thanks. Okay, great. okay great Thanks. thanks Maybe just on biopharm, I think for the product side, you talked more about animal health, but just, you know, in terms of your biopharma customers, either by product or region, pretty robust trends in the quarter. maybe just on biopharm i think for the product side you talked more about animal health but just you know in terms of your biopharma customers either by product or region pretty robust trends in the quarter What are you hearing from customers in terms of appetite to spend, how that might vary? what are you hearing from customers in terms of appetite to spend how that might vary We've seen kind of mixed signals from CROs and spend on certain projects, capital-related projects maybe being pulled back given the macro, but would just love some updated color in terms of your discussions with your biopharma customers globally. we've seen kind of mixed signals from cros and spend on certain projects capital-related projects maybe being pulled back given the macro but would just love some updated color in terms of your discussions with your biopharma customers globally Thanks. thanks

Speaker 1: There is enough capacity for manufacturing in the industry right now. I think that, you know, Mark might want to be, he might want to comment on that further. There is enough capacity for manufacturing in the industry right now. there is enough capacity for manufacturing in the industry right now I think that, you know, Mark might want to be, he might want to comment on that further. i think that you know mark might want to be he might want to comment on that further

Speaker 14: Yeah, you've got to take a look at where the pullback is occurring. The vast majority of the pullback is really directed through the NIH and ties into preclinical and late preclinical activity. R&D and preclinical, our focus is really on the clinical commercial space. The vast majority of our clients are well-funded and have significant relationships with large pharma and others. We don't anticipate a negative impact from that perspective. In fact, I think that the demonstration of the continued increase in acceleration of the clinical trials supported up to 728, an increase of 44 year-over-year, an increase in phase three trials, demonstrates the continued support of that portfolio, which will have significant benefit for us over time. Yeah, you've got to take a look at where the pullback is occurring. yeah you've got to take a look at where the pullback is occurring The vast majority of the pullback is really directed through the NIH and ties into preclinical and late preclinical activity. the vast majority of the pullback is really directed through the nih and ties into preclinical and late preclinical activity R&D and preclinical, our focus is really on the clinical commercial space. r&d and preclinical our focus is really on the clinical commercial space The vast majority of our clients are well-funded and have significant relationships with large pharma and others. the vast majority of our clients are well-funded and have significant relationships with large pharma and others We don't anticipate a negative impact from that perspective. we don't anticipate a negative impact from that perspective In fact, I think that the demonstration of the continued increase in acceleration of the clinical trials supported up to 728, an increase of 44 year-over-year, an increase in phase three trials, demonstrates the continued support of that portfolio, which will have significant benefit for us over time. in fact i think that the demonstration of the continued increase in acceleration of the clinical trials supported up to 728 an increase of 44 year-over-year an increase in phase three trials demonstrates the continued support of that portfolio which will have significant benefit for us over time

Speaker 5: Thanks. Maybe just one more if I could, Robert, 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. First half saw a lot of good progress on gross margins. Should we expect gross margins to step down modestly in the back half of the year from kind of that 46% in the first half, or do you think that's kind of a sustainable level going forward, just given the number of issues? Thanks. thanks Maybe just one more if I could, Robert, on gross margins in the back half of the year. maybe just one more if i could robert 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. obviously the implied guide has revenues kind of coming down a bit from 2q levels First half saw a lot of good progress on gross margins. first half saw a lot of good progress on gross margins Should we expect gross margins to step down modestly in the back half of the year from kind of that 46% in the first half, or do you think that's kind of a sustainable level going forward, just given the number of issues? should we expect gross margins to step down modestly in the back half of the year from kind of that 46% in the first half or do you think that's kind of a sustainable level going forward just given the number of issues

Speaker 15: I think we're certainly going to try to sustain it during the second half. Typically, we'd expect gross margins to increase further just due to operating leverage. We do have some newer initiatives, as you're aware, like IntegriCell and building out some of the facilities in Paris and Belgium and ultimately California. That will have some impact on gross margins as they start ramping up. I would look at, for modeling purposes, to keep it relatively flat. I think we're certainly going to try to sustain it during the second half. i think we're certainly going to try to sustain it during the second half Typically, we'd expect gross margins to increase further just due to operating leverage. typically we'd expect gross margins to increase further just due to operating leverage We do have some newer initiatives, as you're aware, like IntegriCell and building out some of the facilities in Paris and Belgium and ultimately California. we do have some newer initiatives as you're aware like integricell and building out some of the facilities in paris and belgium and ultimately california That will have some impact on gross margins as they start ramping up. that will have some impact on gross margins as they start ramping up I would look at, for modeling purposes, to keep it relatively flat. i would look at for modeling purposes to keep it relatively flat

Speaker 1: It'd be a temporary impact. It'd be a temporary impact. it'd be a temporary impact

Speaker 15: Yeah, I mean, our stated goal, you know, based on reaching operating leverage, is really to get to gross margins in excess of 55% with adjusted EBITDA margins of 30%. Yeah, I mean, our stated goal, you know, based on reaching operating leverage, is really to get to gross margins in excess of 55% with adjusted EBITDA margins of 30%. yeah i mean our stated goal you know based on reaching operating leverage is really to get to gross margins in excess of 55% with adjusted ebitda margins of 30%

Speaker 1: We think that's a fairly highly achievable amount over a fixable time. We think that's a fairly highly achievable amount over a fixable time. we think that's a fairly highly achievable amount over a fixable time

Speaker 11: Your next question comes from Paul Knight with KeyBanc Capital Markets. Please go ahead. Your next question comes from Paul Knight with KeyBanc Capital Markets. your next question comes from paul knight with keybanc capital markets Please go ahead. please go ahead

Speaker 6: Hi Mark, as you've seen this commercial market accelerate, what are you seeing in terms of competitive dynamics? Are there major players trying to be there? Are some customers wanting to homebrew? What are you seeing or learning as the commercial side grows faster? Hi Mark, as you've seen this commercial market accelerate, what are you seeing in terms of competitive dynamics? hi mark as you've seen this commercial market accelerate what are you seeing in terms of competitive dynamics Are there major players trying to be there? are there major players trying to be there Are some customers wanting to homebrew? are some customers wanting to homebrew What are you seeing or learning as the commercial side grows faster? what are you seeing or learning as the commercial side grows faster

Speaker 14: To be honest, we're seeing more and more of folks that really want the security of supply and the scalability that we offer. We're supporting the vast majority of the commercial space today and are actually engaged in discussion around expansion of what we're doing beyond traditional biologistics into our other service areas. That's why you see the nice step up in our BioServices revenue. We're also very active on integration. Most of the bigger players that you may be referring to actually want to work with us, not against us. They want us to be a component of their offering because of the strength that we have in the space. The DHL Group deal that Jerrell talked about is an example of that. To be honest, we're seeing more and more of folks that really want the security of supply and the scalability that we offer. to be honest we're seeing more and more of folks that really want the security of supply and the scalability that we offer We're supporting the vast majority of the commercial space today and are actually engaged in discussion around expansion of what we're doing beyond traditional biologistics into our other service areas. we're supporting the vast majority of the commercial space today and are actually engaged in discussion around expansion of what we're doing beyond traditional biologistics into our other service areas That's why you see the nice step up in our BioServices revenue. that's why you see the nice step up in our bioservices revenue We're also very active on integration. we're also very active on integration Most of the bigger players that you may be referring to actually want to work with us, not against us. most of the bigger players that you may be referring to actually want to work with us not against us They want us to be a component of their offering because of the strength that we have in the space. they want us to be a component of their offering because of the strength that we have in the space The DHL Group deal that Jerrell talked about is an example of that. the dhl group deal that jerrell talked about is an example of that You'll see more of those types of announcements in the coming months and quarters as other larger players in the space want to work with us collaboratively, not competitively. You shouldn't underestimate the power of that integration, Paul. The integrated solution is what is being sought out more and more. Our clients want to simplify their efforts, and so our integrated temperature-controlled supply chain solutions are taking up steam. You'll see more of those types of announcements in the coming months and quarters as other larger players in the space want to work with us collaboratively, not competitively. you'll see more of those types of announcements in the coming months and quarters as other larger players in the space want to work with us collaboratively not competitively You shouldn't underestimate the power of that integration, Paul. you shouldn't underestimate the power of that integration paul The integrated solution is what is being sought out more and more. the integrated solution is what is being sought out more and more Our clients want to simplify their efforts, and so our integrated temperature-controlled supply chain solutions are taking up steam. our clients want to simplify their efforts and so our integrated temperature-controlled supply chain solutions are taking up steam

Speaker 6: Jerry, on MVE, do you feel like in the biopharmaceutical market that it was destocking post-COVID, do you think that's starting to be bottoming at this juncture? Jerry, on MVE, do you feel like in the biopharmaceutical market that it was destocking post-COVID, do you think that's starting to be bottoming at this juncture? jerry on mve do you feel like in the biopharmaceutical market that it was destocking post-covid do you think that's starting to be bottoming at this juncture

Speaker 1: I think that most of that excess capacity that was built up during COVID has been burned off and that the market is stabilizing. We've had three good quarters at MVE with a solid 8% growth this past quarter, and I think it's returning to normalcy. I think that most of that excess capacity that was built up during COVID has been burned off and that the market is stabilizing. i think that most of that excess capacity that was built up during covid has been burned off and that the market is stabilizing We've had three good quarters at MVE with a solid 8% growth this past quarter, and I think it's returning to normalcy. we've had three good quarters at mve with a solid 8% growth this past quarter and i think it's returning to normalcy

Speaker 6: Lastly, Robert, I guess we should expect some continuing EBITDA margin expansion because I'm assuming you have a lot of your infrastructure built in except for IntegriCell. The top line should drive natural EBITDA progression. Is that kind of the logic? Lastly, Robert, I guess we should expect some continuing EBITDA margin expansion because I'm assuming you have a lot of your infrastructure built in except for IntegriCell. lastly robert i guess we should expect some continuing ebitda margin expansion because i'm assuming you have a lot of your infrastructure built in except for integricell The top line should drive natural EBITDA progression. the top line should drive natural ebitda progression Is that kind of the logic? is that kind of the logic

Speaker 15: I think you're right. I mean, it will depend on the top line growth in terms of the EBITDA achievement in Q3 and Q4. We do have a couple of initiatives, IntegriCell being one of them, and with that also the build-out of our facilities in Paris and some further build-out of capabilities in Belgium. There will be some additional headcount and expenses that we'd expect to ramp in later in the second half. In general, yes, we're certainly driving towards profitable revenue and positive EBITDA. I think you're right. i think you're right I mean, it will depend on the top line growth in terms of the EBITDA achievement in Q3 and Q4. i mean it will depend on the top line growth in terms of the ebitda achievement in q3 and q4 We do have a couple of initiatives, IntegriCell being one of them, and with that also the build-out of our facilities in Paris and some further build-out of capabilities in Belgium. we do have a couple of initiatives integricell being one of them and with that also the build-out of our facilities in paris and some further build-out of capabilities in belgium There will be some additional headcount and expenses that we'd expect to ramp in later in the second half. there will be some additional headcount and expenses that we'd expect to ramp in later in the second half In general, yes, we're certainly driving towards profitable revenue and positive EBITDA. in general yes we're certainly driving towards profitable revenue and positive ebitda

Speaker 6: Thank you. Thank you. thank you

Speaker 11: Your next question comes from David Larsen with BTIG. Please go ahead. Your next question comes from David Larsen with BTIG. your next question comes from david larsen with btig Please go ahead. please go ahead

Speaker 8: Hi, this is Jenny on for Dave. Thanks for taking the question. I apologize if you already spoke about this in the beginning of 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 full cost or partial cost to customers, and what their appetite to accept those higher costs has been? Thanks. Hi, this is Jenny on for Dave. hi this is jenny on for dave Thanks for taking the question. thanks for taking the question I apologize if you already spoke about this in the beginning of the call. i apologize if you already spoke about this in the beginning of 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 full cost or partial cost to customers, and what their appetite to accept those higher costs has been? 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 full cost or partial cost to customers and what their appetite to accept those higher costs has been Thanks. thanks

Speaker 1: Yeah, we've seen really no real impact on tariffs across the business. Any tariffs that we do have an impact on our business, we would absolutely pass through. We have a precedent for that through historical COVID, which our clients are well aware of. If there is any impact from a tariff standpoint, it would be passed through, but we haven't seen anything material to date. Yeah, we've seen really no real impact on tariffs across the business. yeah we've seen really no real impact on tariffs across the business Any tariffs that we do have an impact on our business, we would absolutely pass through. any tariffs that we do have an impact on our business we would absolutely pass through We have a precedent for that through historical COVID, which our clients are well aware of. we have a precedent for that through historical covid which our clients are well aware of If there is any impact from a tariff standpoint, it would be passed through, but we haven't seen anything material to date. if there is any impact from a tariff standpoint it would be passed through but we haven't seen anything material to date

Speaker 8: All right, thank you. All right, thank you. all right thank you

Speaker 11: Your next question comes from Subbu Nambi with Guggenheim Securities. Please go ahead. Your next question comes from Subbu Nambi with Guggenheim Securities. your next question comes from subbu nambi with guggenheim securities Please go ahead. please go ahead

Speaker 13: Hey guys, this is Thomas on for Subbu. 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 surreptitive revenue and the reiterated guide? Is that just stronger performance across the portfolio? Hey guys, this is Thomas on for Subbu. hey guys this is thomas on for subbu Thanks for taking our questions. thanks for taking our questions I just want to touch on the guide again. i just want to touch on the guide again Can you just talk about where the offset is to that headwind from lower surreptitive revenue and the reiterated guide? can you just talk about where the offset is to that headwind from lower surreptitive revenue and the reiterated guide Is that just stronger performance across the portfolio? is that just stronger performance across the portfolio

Speaker 1: I think, in general, it's just 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. We've really seen increases across the board in our services lines, as well as in the product lines. I think, in general, it's just a stronger portfolio. i think in general it's just a stronger portfolio You can see we had increases, obviously, in commercial revenue. you can see we had increases obviously in commercial revenue We had increases in clinical trial revenue and in clinical trial count. we had increases in clinical trial revenue and in clinical trial count We've really seen increases across the board in our services lines, as well as in the product lines. we've really seen increases across the board in our services lines as well as in the product lines

Speaker 13: Okay. How much of the second-half guide for revenue depends on pharma, clinical, and commercial milestones that may be out of your control, or is that largely de-risked at this point? Okay. okay How much of the second-half guide for revenue depends on pharma, clinical, and commercial milestones that may be out of your control, or is that largely de-risked at this point? how much of the second-half guide for revenue depends on pharma clinical and commercial milestones that may be out of your control or is that largely de-risked at this point

Speaker 1: Just to remind you, any new approvals that would happen here recently take a while to ramp. That isn't really a part of it or a factor in our guide. Just to remind you, any new approvals that would happen here recently take a while to ramp. just to remind you any new approvals that would happen here recently take a while to ramp That isn't really a part of it or a factor in our guide. that isn't really a part of it or a factor in our guide

Speaker 13: Okay. If I could just sneak one more in on China here, any updates you can share on how you're progressing there and any milestones you can point us to as we look for growth in that region for you guys? Thank you. Okay. okay If I could just sneak one more in on China here, any updates you can share on how you're progressing there and any milestones you can point us to as we look for growth in that region for you guys? if i could just sneak one more in on china here any updates you can share on how you're progressing there and any milestones you can point us to as we look for growth in that region for you guys Thank you. thank you

Speaker 1: We're not expecting our market to expand in China or any recovery in 2025, and that's reflected in our guidance. We continue to monitor our customers there and the various domestic government stimulus programs, but nothing really has changed that much. We're not expecting our market to expand in China or any recovery in 2025, and that's reflected in our guidance. we're not expecting our market to expand in china or any recovery in 2025 and that's reflected in our guidance We continue to monitor our customers there and the various domestic government stimulus programs, but nothing really has changed that much. we continue to monitor our customers there and the various domestic government stimulus programs but nothing really has changed that much

Speaker 11: Our next question comes from Mac Etoch with Stephens Inc. Please go ahead. Our next question comes from Mac Etoch with Stephens Inc. Please go ahead. our next question comes from mac etoch with stephens inc please go ahead

Speaker 9: Good afternoon. Now that the DHL transaction is closed, can you comment on how your customers are responding to Cryoport becoming a little bit more carrier-agnostic? What has the feedback been thus far? Good afternoon. good afternoon Now that the DHL transaction is closed, can you comment on how your customers are responding to Cryoport becoming a little bit more carrier-agnostic? now that the dhl transaction is closed can you comment on how your customers are responding to cryoport becoming a little bit more carrier-agnostic What has the feedback been thus far? what has the feedback been thus far

Speaker 14: Overall, it's been extremely positive. Folks are excited to see what the lift benefit from DHL Group will be as it relates to logistics solutions and flexibility. It also provides them the ability to continue to work with their carriers of choice and to weave in DHL Group competencies on a complementary basis. Overall, I think very, very positive. Overall, it's been extremely positive. overall it's been extremely positive Folks are excited to see what the lift benefit from DHL Group will be as it relates to logistics solutions and flexibility. folks are excited to see what the lift benefit from dhl group will be as it relates to logistics solutions and flexibility It also provides them the ability to continue to work with their carriers of choice and to weave in DHL Group competencies on a complementary basis. it also provides them the ability to continue to work with their carriers of choice and to weave in dhl group competencies on a complementary basis Overall, I think very, very positive. overall i think very very positive

Speaker 1: Matt, this is just beginning. We just began the launch, and DHL Group is a huge company, you know, approaching $100 billion in revenue. It takes a little while to get these things into place. This is not, you know, it's not instant. It does take a little while to get them in place. Mark is correct about, you know, the direction. Matt, this is just beginning. matt this is just beginning We just began the launch, and DHL Group is a huge company, you know, approaching $100 billion in revenue. we just began the launch and dhl group is a huge company you know approaching $100 billion in revenue It takes a little while to get these things into place. it takes a little while to get these things into place This is not, you know, it's not instant. this is not you know it's not instant It does take a little while to get them in place. it does take a little while to get them in place Mark is correct about, you know, the direction. mark is correct about you know the direction

Speaker 9: I appreciate that. Just following up on IntegriCell, obviously, that's a little margin diluted at the moment as you ramp. I was kind of curious if you could give some qualitative aspects of what you expect the long-term margin profile for that business line to be. I appreciate that. i appreciate that Just following up on IntegriCell, obviously, that's a little margin diluted at the moment as you ramp. just following up on integricell obviously that's a little margin diluted at the moment as you ramp I was kind of curious if you could give some qualitative aspects of what you expect the long-term margin profile for that business line to be. i was kind of curious if you could give some qualitative aspects of what you expect the long-term margin profile for that business line to be

Speaker 1: I'll turn over to Mark, in just a second. IntegriCell, you know, is just ramping up. It's a revolutionary service. I mean, the way we've put it together, the cryopreservation service. We're doing some tech transfers right now in both Houston and in Belgium. We expect some revenue in the fourth and third, fourth quarter, late third quarter, maybe fourth quarter of this year, and then more significant revenue, of course, in 2026. It's coming along on schedule and development. We're very enthusiastic about it. It does have a very good financial profile for the future. I'll let Mark talk about that. I'll turn over to Mark, in just a second. i'll turn over to mark in just a second IntegriCell, you know, is just ramping up. integricell you know is just ramping up It's a revolutionary service. it's a revolutionary service I mean, the way we've put it together, the cryopreservation service. i mean the way we've put it together the cryopreservation service We're doing some tech transfers right now in both Houston and in Belgium. we're doing some tech transfers right now in both houston and in belgium We expect some revenue in the fourth and third, fourth quarter, late third quarter, maybe fourth quarter of this year, and then more significant revenue, of course, in 2026. we expect some revenue in the fourth and third fourth quarter late third quarter maybe fourth quarter of this year and then more significant revenue of course in 2026 It's coming along on schedule and development. it's coming along on schedule and development We're very enthusiastic about it. we're very enthusiastic about it It does have a very good financial profile for the future. it does have a very good financial profile for the future I'll let Mark talk about that. i'll let mark talk about that

Speaker 14: Yeah, as Jerrell had mentioned, we've historically discussed gross margins in the 60% range at maturity for our service business. We expect the IntegriCell business at maturity to be in line with that expectation. Yeah, as Jerrell had mentioned, we've historically discussed gross margins in the 60% range at maturity for our service business. yeah as jerrell had mentioned we've historically discussed gross margins in the 60% range at maturity for our service business We expect the IntegriCell business at maturity to be in line with that expectation. we expect the integricell business at maturity to be in line with that expectation

Speaker 9: Thank you for taking my questions. Thank you for taking my questions. thank you for taking my questions

Speaker 11: Your next question. I believe he was just thanking us. Your next question comes from Puneet Souda with Leerink Partners. Please go ahead. Your next question. your next question I believe he was just thanking us. i believe he was just thanking us Your next question comes from Puneet Souda with Leerink Partners. your next question comes from puneet souda with leerink partners Please go ahead. please go ahead

Speaker 3: Yeah, hi guys. Thanks for the questions here. First one, just wanted to confirm those $2 million had been for annual for surreptite. Were you baking in anything for 2026 there? Are you seeing any signs of broader caution or delays among the, you know, AAV gene therapy programs or clients? You talked about, you know, five of them, you know, that you're supporting. They received negative opinion by FDA. I just wanted to make sure if those two issues are tied together. Yeah, hi guys. yeah hi guys Thanks for the questions here. thanks for the questions here First one, just wanted to confirm those $2 million had been for annual for surreptite. first one just wanted to confirm those $2 million had been for annual for surreptite Were you baking in anything for 2026 there? were you baking in anything for 2026 there Are you seeing any signs of broader caution or delays among the, you know, AAV gene therapy programs or clients? are you seeing any signs of broader caution or delays among the you know aav gene therapy programs or clients You talked about, you know, five of them, you know, that you're supporting. you talked about you know five of them you know that you're supporting They received negative opinion by FDA. they received negative opinion by fda I just wanted to make sure if those two issues are tied together. i just wanted to make sure if those two issues are tied together

Speaker 1: I'll turn the technical side, the gene side over to Mark in just a moment. We haven't baked anything into 2026. We haven't commented on 2026. We will, later on in the year after our budgeting and so forth takes place. We'll reserve that one. In terms of the other parts of your question, Mark, do you want to answer that part? I'll turn the technical side, the gene side over to Mark in just a moment. i'll turn the technical side the gene side over to mark in just a moment We haven't baked anything into 2026. we haven't baked anything into 2026 We haven't commented on 2026. we haven't commented on 2026 We will, later on in the year after our budgeting and so forth takes place. we will later on in the year after our budgeting and so forth takes place We'll reserve that one. we'll reserve that one In terms of the other parts of your question, Mark, do you want to answer that part? in terms of the other parts of your question mark do you want to answer that part

Speaker 14: Yeah, I view this really as just a change in administration. You had a change at the FDA, which obviously they had to get in and get their feet wet, so to speak. I think that some of the data that you've seen is them just really trying to get an understanding of the space a bit and taking a little bit more caution around the data side of some of these filings. You have that as obviously a little bit of caution, but you also see very positive responses from the FDA as it relates to things like REMS. I think that, on a whole, we don't see any material impact to what we'd expected historically around the market opportunity associated with cell and gene commercialization. I'm not sure if Tom, you want to add anything to that or not. Yeah, I view this really as just a change in administration. yeah i view this really as just a change in administration You had a change at the FDA, which obviously they had to get in and get their feet wet, so to speak. you had a change at the fda which obviously they had to get in and get their feet wet so to speak I think that some of the data that you've seen is them just really trying to get an understanding of the space a bit and taking a little bit more caution around the data side of some of these filings. i think that some of the data that you've seen is them just really trying to get an understanding of the space a bit and taking a little bit more caution around the data side of some of these filings You have that as obviously a little bit of caution, but you also see very positive responses from the FDA as it relates to things like REMS. you have that as obviously a little bit of caution but you also see very positive responses from the fda as it relates to things like rems I think that, on a whole, we don't see any material impact to what we'd expected historically around the market opportunity associated with cell and gene commercialization. i think that on a whole we don't see any material impact to what we'd expected historically around the market opportunity associated with cell and gene commercialization I'm not sure if Tom, you want to add anything to that or not. i'm not sure if tom you want to add anything to that or not

Speaker 2: Just Puneet, too, I think maybe clarify one. The $2 million headwind from surreptite is for the second half of the year only, not for the full year. Just Puneet, too, I think maybe clarify one. just puneet too i think maybe clarify one The $2 million headwind from surreptite is for the second half of the year only, not for the full year. the $2 million headwind from surreptite is for the second half of the year only not for the full year

Speaker 14: Right. Right. right

Speaker 3: Got it. Okay. Thanks for that. On MVE, could you clarify which end of market where you saw the most growth? Was it the animal side? Is it the pharma? Maybe just walk us through which business line actually drove MVE growth for you? Got it. got it Okay. okay Thanks for that. thanks for that On MVE, could you clarify which end of market where you saw the most growth? on mve could you clarify which end of market where you saw the most growth Was it the animal side? was it the animal side Is it the pharma? is it the pharma Maybe just walk us through which business line actually drove MVE growth for you? maybe just walk us through which business line actually drove mve growth for you

Speaker 14: Sure. Sure. sure

Speaker 3: Was it the distributor channel? Yeah. Was it the distributor channel? was it the distributor channel Yeah. yeah

Speaker 14: It was a solid second quarter, 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 health side, but it was also solid for cryogenic system sales in APAC outside of China and in EMEA. It was a solid second quarter, but it was really overall balanced demand. it was a solid second quarter but it was really overall balanced demand The animal health market was particularly strong on the doer side. the animal health market was particularly strong on the doer side They had a record amount of doers sold on the animal health side, but it was also solid for cryogenic system sales in APAC outside of China and in EMEA. they had a record amount of doers sold on the animal health side but it was also solid for cryogenic system sales in apac outside of china and in emea

Speaker 3: The majority of the growth was in APAC. I just wanted to clarify because we're constantly hearing about capital equipment challenges. I wanted to square that and make sure I understand correctly where the MVE growth is coming from. The majority of the growth was in APAC. I just wanted to clarify because we're constantly hearing about capital equipment challenges. the majority of the growth was in apac. i just wanted to clarify because we're constantly hearing about capital equipment challenges I wanted to square that and make sure I understand correctly where the MVE growth is coming from. i wanted to square that and make sure i understand correctly where the mve growth is coming from

Speaker 14: It's APAC outside of China, EMEA. North America was okay. It wasn't, you know, a record or anything like that. On the doer side, it was balanced across animal health companies across the globe. It's APAC outside of China, EMEA. it's apac outside of china emea North America was okay. north america was okay It wasn't, you know, a record or anything like that. it wasn't you know a record or anything like that On the doer side, it was balanced across animal health companies across the globe. on the doer side it was balanced across animal health companies across the globe

Speaker 3: Got it. Okay. Maybe just the last one for me. You highlighted DHL, but just wondering, you know, are you seeing any change in the competitive landscape overall? You know, you have a number of other logistics companies that have been looking at these markets. Just wanted to get a sense of if you're seeing any change in the competitive dynamics or the market share for clinical trials. Got it. got it Okay. okay Maybe just the last one for me. maybe just the last one for me You highlighted DHL, but just wondering, you know, are you seeing any change in the competitive landscape overall? you highlighted dhl but just wondering you know are you seeing any change in the competitive landscape overall You know, you have a number of other logistics companies that have been looking at these markets. you know you have a number of other logistics companies that have been looking at these markets Just wanted to get a sense of if you're seeing any change in the competitive dynamics or the market share for clinical trials. just wanted to get a sense of if you're seeing any change in the competitive dynamics or the market share for clinical trials

Speaker 1: 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 about the global companies in addition to what we already have. Actually, we can support most of those companies that you were talking about or referring to. Nothing significant there to talk about other than it's positive. I think significant. i think significant Everything we see is positive, and we do have a distribution strategy. everything we see is positive and we do have a distribution strategy The first part of that was DHL. the first part of that was dhl We're talking about the global companies in addition to what we already have. we're talking about the global companies in addition to what we already have Actually, we can support most of those companies that you were talking about or referring to. actually we can support most of those companies that you were talking about or referring to Nothing significant there to talk about other than it's positive. nothing significant there to talk about other than it's positive Yeah, as you can see from the data, we're continuing to increase the number of clinical trials we support. We're continuing to fortify our leadership position by the expanded solutions. You can see the biostorage bioservices has grown significantly in Q2 by 28%. Really, everything points to us continuing to build out our leadership position and really being the dominant player for fertility and supply chain solutions. Yeah, as you can see from the data, we're continuing to increase the number of clinical trials we support. yeah as you can see from the data we're continuing to increase the number of clinical trials we support We're continuing to fortify our leadership position by the expanded solutions. we're continuing to fortify our leadership position by the expanded solutions You can see the biostorage bioservices has grown significantly in Q2 by 28%. you can see the biostorage bioservices has grown significantly in q2 by 28% Really, everything points to us continuing to build out our leadership position and really being the dominant player for fertility and supply chain solutions. really everything points to us continuing to build out our leadership position and really being the dominant player for fertility and supply chain solutions

Speaker 3: Got it. Okay. Helpful, guys. Thank you. Got it. got it Okay. okay Helpful, guys. helpful guys Thank you. thank you

Speaker 11: Your next question comes from David Larsen with BTIG. Please go ahead. Your next question comes from David Larsen with BTIG. your next question comes from david larsen with btig Please go ahead. please go ahead

Speaker 7: Hey, I hop on the call a little bit late. I'm traveling. Could you just talk about how MVE results came in relative to your own expectation? It looks like it was up 8% year-over-year. That was a pretty good range. Any more color there would be very helpful. It looks like it's kind of turned around and it's now growing again. Hey, I hop on the call a little bit late. hey i hop on the call a little bit late I'm traveling. i'm traveling Could you just talk about how MVE results came in relative to your own expectation? could you just talk about how mve results came in relative to your own expectation It looks like it was up 8% year-over-year. it looks like it was up 8% year-over-year That was a pretty good range. that was a pretty good range Any more color there would be very helpful. any more color there would be very helpful It looks like it's kind of turned around and it's now growing again. it looks like it's kind of turned around and it's now growing again

Speaker 1: Yeah, I think, yeah, look, MVE performed well, you know, with 8% growth year-over-year. We have seen certainly, you know, an improved kind of demand for MVE's products. As we said in our press release as well, you know, MVE is also, you know, bringing out new products into the market. There's also innovation going on that we believe will drive demand and further demand as well. On the margin side, you know, they're showing strong robust margins. They've grown margins over the prior year about 2.6 percentage points to 44.9%. It's a strong, good business. It's a profitable business. You know, as you know, it's, again, it's by far the leader globally for cryogenic systems. That includes the dewars, the freezers, and related accessories on a global basis. Yeah, I think, yeah, look, MVE performed well, you know, with 8% growth year-over-year. yeah i think yeah look mve performed well you know with 8% growth year-over-year We have seen certainly, you know, an improved kind of demand for MVE's products. we have seen certainly you know an improved kind of demand for mve's products As we said in our press release as well, you know, MVE is also, you know, bringing out new products into the market. as we said in our press release as well you know mve is also you know bringing out new products into the market There's also innovation going on that we believe will drive demand and further demand as well. there's also innovation going on that we believe will drive demand and further demand as well On the margin side, you know, they're showing strong robust margins. on the margin side you know they're showing strong robust margins They've grown margins over the prior year about 2.6 percentage points to 44.9%. they've grown margins over the prior year about 2.6 percentage points to 44.9% It's a strong, good business. it's a strong good business It's a profitable business. it's a profitable business You know, as you know, it's, again, it's by far the leader globally for cryogenic systems. you know as you know it's again it's by far the leader globally for cryogenic systems That includes the dewars, the freezers, and related accessories on a global basis. that includes the dewars the freezers and related accessories on a global basis

Speaker 7: That's great. Can you just talk about the broader market? The CRO space was under pressure earlier in the year. There's a lot of uncertainty around the IRA, three different executive orders, tariffs. It looks like maybe CRO sort of came back with demand now progressing. What are you seeing in terms of overall sentiment from your customers, clinical trial activity, demand for the doers? More color there would be very helpful. Thank you. That's great. that's great Can you just talk about the broader market? can you just talk about the broader market The CRO space was under pressure earlier in the year. the cro space was under pressure earlier in the year There's a lot of uncertainty around the IRA, three different executive orders, tariffs. there's a lot of uncertainty around the ira three different executive orders tariffs It looks like maybe CRO sort of came back with demand now progressing. it looks like maybe cro sort of came back with demand now progressing What are you seeing in terms of overall sentiment from your customers, clinical trial activity, demand for the doers? what are you seeing in terms of overall sentiment from your customers clinical trial activity demand for the doers More color there would be very helpful. more color there would be very helpful Thank you. thank you

Speaker 14: Yeah, you know, obviously you can see by our clinical trial count and the increase that the market continues to be very resilient and positive for us as it relates to cell and gene clinical engagement. We have extensive engagement with the CRO community as well as the CDMO community. The CDMO community has come back with very strong results, which we think demonstrates the strength of the space since they are obviously the leader in the actual production of a lot of these clinical materials that ultimately we move from one place to another. Overall, I think that the sentiment in the cell and gene environment, despite some of the shorter-term funding challenges that you see in earlier phase programs as well as the FDA, have not impacted our portfolio and obviously have not impacted the CDMO community. We're very positive overall. Yeah, you know, obviously you can see by our clinical trial count and the increase that the market continues to be very resilient and positive for us as it relates to cell and gene clinical engagement. yeah you know obviously you can see by our clinical trial count and the increase that the market continues to be very resilient and positive for us as it relates to cell and gene clinical engagement We have extensive engagement with the CRO community as well as the CDMO community. we have extensive engagement with the cro community as well as the cdmo community The CDMO community has come back with very strong results, which we think demonstrates the strength of the space since they are obviously the leader in the actual production of a lot of these clinical materials that ultimately we move from one place to another. the cdmo community has come back with very strong results which we think demonstrates the strength of the space since they are obviously the leader in the actual production of a lot of these clinical materials that ultimately we move from one place to another Overall, I think that the sentiment in the cell and gene environment, despite some of the shorter-term funding challenges that you see in earlier phase programs as well as the FDA, have not impacted our portfolio and obviously have not impacted the CDMO community. overall i think that the sentiment in the cell and gene environment despite some of the shorter-term funding challenges that you see in earlier phase programs as well as the fda have not impacted our portfolio and obviously have not impacted the cdmo community We're very positive overall. we're very positive overall

Speaker 7: Thanks very much. You all sent a good quarter. Congrats. Thanks very much. You all sent a good quarter. thanks very much. you all sent a good quarter Congrats. congrats

Speaker 15: Thank you. Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 11: There are no further questions at this time. I'm pleased to turn the call back over to Jerrell Shelton. There are no further questions at this time. there are no further questions at this time I'm pleased to turn the call back over to Jerrell Shelton. i'm pleased to turn the call back over to jerrell shelton

Speaker 1: You ended there pretty quickly. Thank you 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. The Life Sciences Services business, which is a key to our future growth, grew 21% year-over-year, led by a 28% increase in biostorage bioservices revenue and a 33% gain in commercial cell and 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. You ended there pretty quickly. you ended there pretty quickly Thank you very much for your questions, all of you, and thanks for the discussion. thank you 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. in closing we delivered a strong second-quarter performance across all areas of our life sciences business The Life Sciences Services business, which is a key to our future growth, grew 21% year-over-year, led by a 28% increase in biostorage bioservices revenue and a 33% gain in commercial cell and gene therapy support. the life sciences services business which is a key to our future growth grew 21% year-over-year led by a 28% increase in biostorage bioservices revenue and a 33% gain in commercial cell and 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 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. 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. 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. we wish you all a good evening

Speaker 11: Ladies and gentlemen, this concludes today's conference call. Thank you so much for your participation. You may now disconnect. Ladies and gentlemen, this concludes today's conference call. ladies and gentlemen this concludes today's conference call Thank you so much for your participation. thank you so much for your participation You may now disconnect. you may now disconnect