Anna Kopkowski

Anna Kopkowski inquired about the typical lag time between biopharma funding, especially in CGT, and Cryoport's customer orders, and sought clarification on the operational and cost reduction milestones required to achieve positive adjusted EBITDA in the second half of 2026.

Answer

CSO Mark Sawicki estimated a typical half-year lag between funding and customer orders. CFO Robert Stefanovich and CSO Mark Sawicki detailed that positive adjusted EBITDA will be driven by continued efficiencies from 2024/2025 initiatives, strategic growth investments in global supply chain centers (Paris, California, Belgium), and expanding service offerings, rather than new cost reduction milestones. They noted opportunistic acceleration of certain business opportunities, like the Belgium site build-out, which will benefit long-term.

Anna Kopkowski asked about the typical lag between biopharma and cell and gene therapy funding and Cryoport's customer orders. She also sought clarification on the operational and cost reduction milestones expected to drive positive adjusted EBITDA in the second half of 2026.

Answer

CSO Mark Sawicki indicated an average lag of about half a year between funding and customer orders. CFO Robert Stefanovich explained that achieving positive adjusted EBITDA is less about new cost reductions (following successful 2024/early 2025 initiatives) and more about expected growth from an unmatched market position, expanding service offerings like bioservices, and efficiencies. Mark Sawicki added that accelerated client requests, such as the rapid build-out of GMP kitting services in Belgium, also influenced the timing.