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Cryoport to Expand Ops in Santa Ana

Cryoport Inc. (Nasdaq: CYRX), a provider of cold-chain logistics services for the biopharmaceutical industry, plans a major expansion of its Orange County operations, with a goal to move into a newly built industrial development in Santa Ana at the start of 2025.

The $660 million-valued firm will be moving into a 92,000-square-foot facility at 1720 E. Garry Ave., just east of the Costa Mesa (55) Freeway, near East Dyer Road.

The site is a few blocks away from Cryoport’s current main local facility, a 27,600-square-foot industrial building at 17305 Daimler St., which is in Irvine. It also leases office space near John Wayne Airport in Irvine.

Cryoport currently has about 135 local employees, and plans to relocate all of them to the new Santa Ana facility once it opens.

The proximity of the new site to the company’s existing OC base “eliminates any potential commute issues for our employees,” CEO Jerrell Shelton told the Business Journal via email.

The company aims to double its current OC headcount in the first two years at the new 1720 E. Garry Ave. facility, as it expands its service offerings, including a new cryopreservation platform for the cell therapy market, Shelton said.

The company said in regulatory filings that the new Santa Ana facility will be an “administrative, global supply chain center and research and development center.”

Office-to-Industrial

Industrial developer Terreno Realty Corp. in September bought the 4.9-acre East Garry site for $14.8 million. The property, which was sold by Irvine’s Greenlaw Partners, now holds a three-building multi-tenant office complex, which will be razed to make way for the new industrial project.

It’s one of several industrial projects either in the works or underway alongside the busy 55 Freeway corridor.

Bellevue, Wash.-based Terreno said its total expected investment for the project will be $40.6 million.

Cryoport has inked a 10-year lease for the space, and will pay $27.7 million over that period, according to regulatory filings. The terms of the lease equate to monthly rents in the $2.50 per-square-foot range.

Terreno said the estimated stabilized cap rate for the deal is 5.1%.

The new industrial facility will include 10 dock-high and two grade-level loading positions and parking for 145 cars, Terreno said.

The developer expects to achieve LEED certification for the project, which is in the same neighborhood as the expansive headquarters of Edwards Lifesciences Corp. (NYSE: EW), OC’s most valuable public company in the healthcare sector.

New Services

Cryoport helps biopharmaceutical firms transport biological material for clinical trials and other uses, and its temperature-controlled containers and logistics services are increasingly in demand from customers in the U.S. and abroad.

“The new Garry Ave. facility keeps Cryoport in the key Southern California market where we already have a very strong client base,” Shelton told the Business Journal.

“The additional space enables Cryoport to expand our supply chain platform offering for our clients to include our BioServices and our new IntegriCell cryopreservation platform.”

Cryoport was previously based in Irvine, but moved its headquarters to Brentville, Tenn., a suburb of Nashville, about three years ago. The move was made to have the company’s headquarters closer to customers in Europe, it said at the time.

In 2020, the company’s annual revenue was $78.7 million, up from $33.9 million in 2019.
For the first six months of 2023, it reported $119.8 million in revenue, up about 2.8% year-over-year.

The company’s full-year 2023 revenue guidance was recently lowered, and now stands in the $233 million to $243 million range.

“We have been and remain very bullish on the long-term growth potential of the cell and gene therapy market,” Shelton said.

“From 2019 to 2022, the cell and gene clinical trial market grew at a 24% compounded annual growth rate (CAGR), and we expect it to continue to grow at a healthy CAGR for years to come.”

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