Cryoport Inc. (Nasdaq: CYRX), a provider of cold-chain logistics services for the biopharmaceutical industry, is a hot stock. Shares have doubled since January to $17.73 and a $542 million market cap as of last week.
That doesn’t mean the Irvine-based company is using its shares as a piggybank.
Last month, it paid $20.5 million in cash to acquire Houston-based Cryogene Inc., which specializes in the secure storage of biological specimens, materials, and samples.
Cryoport got a cash boost last December when it picked up $25 million from healthcare investment firm Petrichor Healthcare Capital Management to pursue strategic acquisitions.
Cryoport reported $47.3 million in cash as of March 31.
Its first acquisition since that December investment is Cryogene, which reported $3.9 million in 2018 revenue. The company has long-term contracts with Merck, MD Anderson, Houston Methodist Hospital, Texas Children’s Hospital, Mesoblast, Bellicum, Baylor University, and other similar institutions.
“By adding Cryogene to its family, Cryoport is further building out its ecosystem to better serve the life sciences and, especially, regenerative therapy,” Cryoport Chief Executive Jerrell Shelton said in a statement.
The Cryogene acquisition could help Cryoport offer “a more end-to-end solution to augment its leading temperature-controlled logistics,” according to Brandon Couillard, a Jefferies analyst. “Over time, we could envision Cryoport operating a network of small/mid-sized biostorage sites, making it a more critical supply chain partner for cell and gene therapy clients.”