Cryoport's MVE Biological Solutions' New Prague Manufacturing Plant Returns to Full Production

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Cryoport, Inc. (Nasdaq: CYRX) announced the return to full production at its New Prague, MN facility after a fire on January 25, 2022, which temporarily halted operations. Originally estimating a revenue impact of $4 to $5 million, the company revised expectations to $9.0 to $9.5 million due to unexpected challenges in recommissioning. However, insurance is expected to cover most restoration costs. Management aims to improve shipment timelines for customers throughout the year.

Positive

• Facility has resumed full production after fire.
• Insurance expected to cover majority of restoration costs.

Negative

• Revised revenue impact increased from $4-$5 million to $9-$9.5 million.
• Challenges in recommissioning slowed production restart.

      Company provides further update on financial impact of New Prague, MN fire

NASHVILLE, Tenn., March 30, 2022 /PRNewswire/ -- Cryoport, Inc. (Nasdaq: CYRX) ("Cryoport" or the "Company"), a global leader in temperature-controlled supply chain solutions for the life sciences industry, today announced that its New Prague facility has returned to full production. As previously announced, a fire occurred in a portion of the MVE Biological Solutions manufacturing facility located in New Prague, Minnesota on January 25, 2022, causing production to be temporarily curtailed. The New Prague facility manufactures aluminum dewars and is one of MVE Biological Solutions' three global manufacturing facilities.

Cryoport previously announced it would resume production at the New Prague facility during the week of February 14^th and ramp up to full production during the first quarter of 2022. The Company also guided to a revenue impact from the fire of $4 to $5 million limited to the first quarter of 2022. Production did resume as planned; however, a number of unexpected challenges resulting from the fire caused the recommissioning and validation of production to progress more slowly than had been previously anticipated. As a result, Cryoport now expects a revenue impact from the fire of $9.0 to $9.5 million which will remain limited to the first quarter. As previously announced, the Company expects its insurance to cover the majority of the costs to restore and re-open the facility, as well as related business interruption losses. Management will concentrate on reducing shipment timelines to customers throughout the remainder of the year.

About Cryoport, Inc
Cryoport, Inc. (Nasdaq: CYRX), headquartered in Nashville, TN, is a global leader in temperature-controlled supply chain solutions for the life sciences industry supporting life-saving cell and gene therapies across the clinical and commercial spectrum. With 33 strategic locations covering the Americas, EMEA (Europe, the Middle East and Africa) and APAC (Asia Pacific), Cryoport's global platform provides mission-critical solutions, services, and products to Biopharma, Animal Health, and Reproductive Medicine customers worldwide. In addition to its standard setting supply chain solutions, Cryoport is the world's largest manufacturer of cryogenic systems and one of the largest life science focused specialty couriers. As of December 31, 2021, Cryoport supported eight commercial cell and gene therapies and 602 regenerative medicine clinical trials globally, with 74 of these trials in Phase 3.

For more information, visit www.cryoport.com or follow @cryoport on Twitter at www.twitter.com/cryoport for live updates.

Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding the Company's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the Company's industry, business, plans, strategy, acquisitions, including CRYOPDP and MVE Biological Solutions, financial results and financial condition. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic conditions, trends in the products markets, variations in the Company's cash flow, market acceptance risks, and technical development risks. The Company's business could be affected by a number of other factors, including the risk factors discussed in the Company's Securities and Exchange Commission ("SEC") reports including, but not limited to, the Company's Annual Report on Form 10-K for the three and twelve months ended December 31, 2021 and any subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and the Company cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

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SOURCE Cryoport, Inc.

FAQ

What is the recent update from Cryoport regarding the New Prague facility fire?

Cryoport announced that its New Prague facility has returned to full production after a fire on January 25, 2022.

How much revenue impact did Cryoport estimate from the New Prague fire?

Cryoport revised its revenue impact estimate from $4-$5 million to $9-$9.5 million for the first quarter of 2022.

When did Cryoport expect to resume production at the New Prague facility?

Cryoport had initially planned to resume production during the week of February 14, 2022.

Will Cryoport's insurance cover the costs related to the New Prague fire?

Yes, Cryoport expects its insurance to cover the majority of costs to restore the facility and related business interruption losses.