CryoPort, Inc.

Good day and welcome to the CryoPort, Inc. second quarter 2020 earnings results call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Josh Romer. Please go ahead, sir.

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 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, 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, filed with the Securities and Exchange Commission, and those described from time to time in other reports which we filed with the Securities and Exchange Commission. I would now like to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of PryorPort. Jerry, the floor is yours.

Thank you, Todd. Good afternoon, ladies and gentlemen. We appreciate you joining our earnings call today. With me this afternoon is our Chief Financial Officer, Mr. Robert Stefanovich, our Chief Commercial Officer, Dr. Mark Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. As a reminder, we have uploaded our second quarter 2020 website. It can be found under the Investor Relations section in the Events and Presentation section. This document provides a review of our recent financial and operational performance in general business outlook. If you haven't had a chance to read it, I'd encourage you to go to the website and to download it. As with previous quarters on this conference call, we will provide you with a brief general update and then we'll move to addressing your queries regarding our company's results. I'd like to start this call by stating that our second quarter results reflect the strength and resilience of our company. where we saw continued year-on-year growth despite the challenging environment caused by the COVID-19 pandemic. Thanks to the tireless work of our colleagues around the world, we continue to successfully navigate the external realities and we remain focused on our mission of supporting life and health by delivering reliable and comprehensive temperature control supply chain solutions for the life sciences industry through our innovation, advanced technologies, and global supply chain network. We reported revenue of $9.4 million for the second quarter of 2020, an increase of 11% when compared to the second quarter of 2019. Our growth was primarily driven by revenue from our commercial agreements with Gilead's Yescarta and Novartis' Camaraya, which contributed $2.6 million in the second quarter of 2020, representing a 38% increase when compared to the second quarter of 2019. In addition, bioservices revenue was $1.3 million as compared to $600,000 last year, which was represented by revenue from a partial quarter as it was the quarter in which CroweGene was acquired. Although 56 clinical trials were suspended during the second quarter due to COVID-19 pandemic, we are pleased that only three remain suspended as of the end of the second quarter. as sponsors worked hard to get their clinical trials restarted and patients treated. None of the remaining trials, to our knowledge, had been terminated. We continue to see momentum in the life sciences industry as the development of regenerative therapies accelerates and demand for our temperature control supply chain solutions intensifies. Both Gilead, Kite, and FedEx renewed their agreements with Cryoport for temperature control solutions. During the second quarter, the FDA approved Tocardus, manufactured by Gilead's Kite, which brings the number of commercial regenerative therapies we support to four. Chymriah by Novartis, Viscarda and Tocardus by Gilead's Kite, and Zentenglo by Bluebird Bio. We also support Marilucelle, developed by Bristol-Myers Squibb, which was recently validated by the European Medicines Agency. Through our innovation, advanced technology, and global supply chain network, has achieved a leading position providing temperature control supply chain support capabilities for life sciences industry and especially for the fast-growing, high-value, life-saving cell and gene therapy market. In continuance of building our global alliances and further extending our leadership position in the industry, we have signed a new partnership with MediPal Holdings, one of the leading pharmaceutical distributors in Japan, to provide an integrated end-to-end distribution solution for specialty cell and gene therapies. This special partnership is an important step that helps us grow our services in APAC region and supplement our Cryoport Express global supply chain network. In closing my comments, I would like to mention our successful convertible debt offering of $111 million. With this addition, our balance sheet is robust and provides us with significant flexibility to continue to develop our Cryoport Express global supply chain network to invest in the development of our advanced technologies to further the development of competencies within our team and to position us for acquisitions that are either supplementary and or complementary to our market footprint. Now I'd like to turn the call over to the operator to open the telephone lines for your questions.