Cryoport Inc.’s recent move to Irvine from Lake Forest is “coming together very nicely” on the heels of a growth spurt, according to its chief executive.
Cryoport, which is publicly traded, uses cryogenic technology to ship a range of life sciences products including immunotherapies, stem cells, CAR-T cells and reproductive cells, domestically and internationally.
The company describes its customers as being in “three big buckets”—biopharmaceuticals, animal health and reproductive medicine.
Growth in Cryoport’s business fueled the move from some 11,000 square feet of space in Lake Forest to 27,500 square feet at 17305 Daimler St., said Chief Executive Jerrell Shelton.
“We have more throughput in this office,” Shelton said.
Seventeen-year-old Cryoport, which had a recent market value of $21 million, has sustained significant losses in recent years—it posted a loss of about $7 million on revenue of $3.9 million for its most recent fiscal year, with about $2.8 million in red ink on sales of about $1.5 million in the fourth quarter.
The company has nonetheless made progress on various fronts over the last couple of years.
It said last month that it would manage the cryogenic shipping of solid tumor samples and vaccine for Simpsonville, S.C.-based Perseus PCI’s melanoma and ovarian cancer clinical trials.
Cryoport is going to monitor the sampled tumors and immunotherapy in transit from Perseus’ South Carolina laboratory to various clinical trials across the U.S.
Perseus President Buddy Long said in a news release that Cryoport “provides an indispensable service for the successful movement of our PCI cancer treatment vaccine and biopsies between the lab and our patients.”
Cryoport’s logistics component is “especially important as we move through our Phase II2b clinical trial as any degradation of either the vaccine or biopsy, if not maintained in a cryogenic state during transit, could have an impact on the result of the trial,” Long said.
“The need for cryogenic logistics … is increasingly required by the biotech market, including cellular therapies and vaccines, as the advanced biopharma field of medicine generates exciting new treatments for cancers and other medical conditions,” Shelton said when the Perseus deal was announced.
Another recent contract made Cryoport the cryogenic logistics partner for distributing Irvine-based diagnostic test provider CombiMatrix Corp.’s new CombiPGS genetic screening test last year. CombiPGS is used by couples who want to increase chances of a viable pregnancy through in-vitro fertilization.
Cryoport, which currently employs 31, will eventually bring on a second shift of workers, although “it won’t start for a while,” Shelton said.
Its new facility includes corporate offices, warehouse space, and a research and development area.
Shelton said Cryoport started looking for space about nine months ago.
“This will hold us for a while,” he said.
Cryoport’s building is owned by Newport Beach-based Panattoni Development Co. The company signed a seven-year lease that comes with an initial monthly base rent of about $21,600, or about 87 cents per square foot, according to regulatory filings. It can extend the lease for two additional five-year periods, the filings show.
Cryoport also is looking to open a new office in the Research Triangle Park region of North Carolina.
“A lot of our big customers are in Research Triangle Park,” Shelton said.
The company will look at various factors when seeking out new operating centers, including convenience for its clients, according to Shelton.
Separately, Cryoport hired Tamie Joeckel as its executive vice president of client services, a new role. Joeckel’s background includes executive roles at Waltham, Mass.-based Parexel International Corp. and AmerisourceBergen Corp., a Chesterbrook, Pa.-based drug distribution company with OC roots via Bergen Brunswig Co., which was based in Orange.
