Biolife Solutions Inc (NASDAQ:BLFS) Q3 2018 Earnings Conference Call - Final Transcript
Nov 08, 2018 • 04:30 pm ET
Good day, ladies and gentlemen, and thank you for standing by, and welcome to the Third Quarter 2018 BioLife Solutions, Inc. Earnings Conference Call. (Operator Instructions) As a reminder, today's conference may be recorded.
I would now like to turn the conference over to CFO, Roderick de Greef. Sir, the floor is yours.
Roderick de Greef
Thank you, Juwi. Good afternoon, everyone, and thank you for joining us for the BioLife Solutions conference call to review the operating and financial results for the third quarter of 2018. Earlier this afternoon, we issued a press release which summarizes our results for the three and nine months ended September 30. The release is available on the Investor Relations page of our website at biolifesolutions.com. As a reminder, this call is being recorded and broadcast live 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.
Thank you, Rod, and good afternoon, everyone. Thank you for joining the call. We appreciate your interest in BioLife and are very pleased to report another quarter of strong and profitable growth. Revenue from biopreservation media product sales reached a new record of $5.3 million, an increase of 79% over the third quarter of 2017. Continuing the trend of the last several quarters, revenue growth was driven by increased sales to cell and gene therapy customers in the regenerative medicine market and to our domestic and international network of distributors. Notably, Q3 was our second consecutive quarter with net income of more than $1 million. The business is on track, growing and profitable. I'll also note that there were no customer safety stock orders in Q3.
In the third quarter of 2018, we gained 25 new direct customers with 15 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. I'd like to continue with some detail on the regenerative medicine market segment. Q3 revenue from our regen med segment was $2.9 million for 54% of total revenue and representing growth of 80% over Q3 last year. This is our most strategic opportunity. The Alliance for Regenerative Medicine recently issued its Q3 2018 data report. Total funding for regen med companies was nearly $3 billion in Q3, with nearly $11 billion year-to-date.
I'm glad to report that concurrent with this robust funding, we continue to gain new preclinical and clinical trial stage cell and gene therapy customers. Of the 15 new customers we gained in Q3, some noteworthy names include Elo-Plex Bio, Cells for Cells, CCRM, Eurofins, Fate Therapeutics, Flaskworks, WRAP-IPF Therapeutics, Sigilon Therapeutics and Sorrento Therapeutics. We look forward to future disclosures and adoption of our products in these customer clinical trials and potential approved cell therapy products. I should remind you that we have very sticky relationships with our regen med customers.