CalAmp Corp. is hoping to hitch a ride on the success of its Irvine neighbor Cryoport Inc.
CalAmp (Nasdaq: CAMP) is best known for tracking vehicles through products like LoJack while Cyroport (Nasdaq: CYRX) transports sensitive products for the life sciences industry.
The two have been driving in opposite directions on Wall Street. In the past year, Cryoport’s shares have climbed 93% to about $18 and a $550 million market cap; CalAmp’s shares are down 38% to $13 and a $400 million market cap.
Cryoport’s 2018 revenue jumped 64% to $19.6 million while CalAmp’s sales declined less than 1% to $363.8 million in its last fiscal year.
The two companies announced a partnership in mid- month.
CalAmp’s new Bluetooth sensor technology, called iOn Tag, and its platform, SC iOn Command, will permit Cryoport to better manage supply chain visibility across global shipping routes, the companies said.
Cyroport is garnering business from big-name pharma firms, including Novartis AG, Gilead Sciences Inc. and others that need to safely store and ship stem cells, organs and related products, via customized aircraft-grade transportation containers that use liquid nitrogen vapor to keep materials at specific temperatures for up to 10 days.
“We are entrusted with highly sensitive and valuable commodities, which require advanced technologies to provide safe and secure conditions at all times,” Jerrell Shelton, chief executive of Cryoport, said in a statement. The CalAmp product should “significantly reduce the risks associated with the temperature-controlled transportation of commodities in our markets.”
Pharmaceutical products that require temperature-controlled storage and transport are worth approximately $283 billion, and their value is expected to rise 70% between 2015 and 2021, according to the Pharmaceutical Commerce publication.
