Biolife Solutions Inc (NASDAQ:BLFS) Q2 2018 Earnings Conference Call - Final Transcript

Aug 09, 2018 • 10:00 am ET

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Biolife Solutions Inc (NASDAQ:BLFS) Q2 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 BioLife Solutions Inc. Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to turn the conference over to Roderick de Greef, CFO. You may begin.

Executive
Roderick de Greef

Thank you, Sonia. Good morning, everyone, and thank you for joining us for the BioLife Solutions conference call to review the operating and financial results for the second quarter of 2018. Earlier this morning we issued a press release, which summarizes our results for the three and six months ended June 30. We also issued a press release announcing a $20 million investment in BioLife by Casdin Capital to support our growth strategy. Both releases are available on the IR page of our Web site at biolifesolutions.com As a reminder, this call is being recorded and broadcast life on our website. A replay of the Webcast will be available through the same link for 90 days.

(Forward-Looking Cautionary Statements)

Now, I'd like to turn the call over to Mike Rice, President and CEO of BioLife.

Executive
Mike Rice

Thank you, Rod, and good morning, everyone. Thank you for joining the call. We appreciate your interest in BioLife and are very pleased to report our best quarter yet, with actual top to bottom results. In Q2, we solidified our position as the sole source supplier of proprietary bio-preservation media products to the cell and gene therapy market. Product demand from this segment drove over 102% year-over-year revenue increase to $5.2 million.

In the second quarter of 2018, we gained 48 new direct customers with 37 new cell and gene therapy customers in the high growth, regenerative medicine segment. Today we are supplying thousands of customers directly and indirectly through our network of domestic and international distributors. To recap the regenerative medicine market segment, this is our most strategic market, and is comprised of cell and gene therapy companies, hospital-based stem cell transplant centers, and contract development and manufacturing organizations, such as Lonza, WuXi, Hitachi, and Brammer Bio.

The alliance for regenerative medicine just published its Q2 2018 data report, which cites continued strong investments in the space, with $4.1 billion invested in Q2, and nearly $8 billion year-to-date. In Q2, regenerative medicine segment revenue was $3 million. This was 58% of total revenue, with 176% growth over Q2 last year, and 42% growth over Q1. New direct cell and gene therapy customers included Aduro, AgenTus Therapeutics, Bio Reliance, Orca Biosystems, Refuge Biotechnologies, and Senti Biosciences. Today, we believe our proprietary bio-preservation media products have been used in more than 300 customer clinical applications.

I'll remind our listeners that this number is likely higher due to the success our distributors have demonstrated in getting our products embedded in early stage clinical trials. With most distributors, we ship in bulk, and they distribute to the end users, so we don't have complete visibility on their reach. This is especially the case with STEMCELL Technologies and MilliporeSigma, our two largest distributors. We estimate