Cryoport Supports Clinical Trials And Commercial Therapies Across The High-Growth BioTech Industry: Is Its Current Stock Price An Opportunity?

The global biotechnology industry was worth $859 billion in 2022, and it is predicted to reach $1.6 trillion by 2030, growing at a compound annual growth rate (CAGR) of 8.7% over the forecast period. 

A burgeoning sector within biotech is the cell and gene therapy (C&GT) market. The worldwide C&GT market was valued at $18 billion in 2022, and it is predicted to reach $93.78 billion by 2030, growing at a CAGR of 22.41% during the specified period. Some biotech and pharmaceutical companies that are leaders in the C&GT space are Crispr Therapeutics CRSP, Gilead GILD, and Novartis NVS.

While the fallout from  the COVID-19 pandemic had a negative impact on the biotech industry, there continues to be a great need for medical developments coming out of the biotech sector. Growing approvals of gene therapy products and persistent investment in research and development continue to drive market growth. The C&GT therapy market has more than 2000 active trials in 2023, compared with just 1000 in early 2022. In early 2022, only 22 C&GT drugs in total had received Food and Drug Administration (FDA) approval as of that time. Now, it is predicted as many as 13 new drugs will receive FDA approval in 2023. The growing pipeline of drugs in development means that despite struggles in the broader market, companies that will do the best are diversified across the C&GT sector. 

Cryoport: A Diversified Vehicle In The Biotech Sector?

Cryoport Inc. CYRX is an integrated cold chain supply chain company that is embedded in the C&GT market and has developed a comprehensive infrastructure to support cell and gene development companies. Having made eight acquisitions, Cryoport provides its end-to-end solutions that include packaging, logistics, state-of-the-art biostorage, and cryogenic systems manufacturing capabilities. 

As a turn-key solutions company in an industry with highly specialized needs, Cryoport has made itself incredibly sticky for the companies it works with. As each company passes through trial phases and finally to the commercial phase, the potential revenue it generates annually for Cryoport increases exponentially. Potential annual revenue per commercialized treatment can range between $2 and $28 million, according to an investor presentation. Cryoport already has 10 clients who have gained regulatory approval for commercialized treatments, and an additional 11 client products are expected to be approved this year alone.

Cryoport also has a robust pipeline of clients developing C&GT treatments, supporting a total of 654 active trials. Of these, 275 (or 42%) are in Phase 1, 300 (46%) are in Phase 2, and 79 (12%) are conducting Phase 3 trials.

This could make Cryoport a powerfully diversified vehicle that may offer excellent opportunities for those actively involved in the biotech market or looking to invest. The company is heavily owned by institutional investors, including BlackStone BX, and in October 2021 Cryoport stock was valued at its high of $81.54. However, the downward spiral that hit the larger biotech market has also caused its stock to fall, and at the time of this writing, it was valued at $24 – almost 50% off its 52-week high. The stock has begun to rise recently, and as more retail investors realize how diversified Cryoport is across the biotech space, its valuation could continue to increase.

Want to learn more about the vital role Cryoport plays in the biotech sector? Visit its website.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Featured photo by Cryoport

Market News and Data brought to you by Benzinga APIs
Posted In: BiotechSmall CapGeneralcryoportPartner Content
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!