CYRX’sShippers Highlighted At FedEx Summit (CYRX) (FDX)

CYRX'sShippers Highlighted At FedEx Summit

By Brian Marckx, CFA

FedEx (FDX) held a healthcare industry summit in NYC this week which highlighted the ever-increasing globalization of healthcare and how the company is addressing the rapidly expanding demand of interconnectivity among participants all over the world. As FedEx press release indicates (see below), CryoPort's Express Dry Shipper and CryoPortal are clearly a critical part of FedEx's strategy to meet this "exponential" growth in the global healthcare industry.

Both Fred Smith, founder and current Chairman and CEO of FedEx, and Richard Smith, director of Life Sciences and Specialty Services, spoke at the event. A key theme was that growth in the healthcare industry including research and manufacturing is expected to be especially strong in developing markets such as China and India which makes it critical for there to be efficient shipping connectivity and reach between the U.S. and the rest of the world. As we've noted in our ongoing coverage of CYRX, key benefits of CryoPort's offering including a 10+ day holding time, stable temperature, environmentally friendly / non-hazardous, and web-based tracking make it an ideal solution for shipping long distances and across international borders.

Temperature-controlled shipping, including deep-frozen shipping, was highlighted as one key aspect with FedEx specifically pointing towards their FedEx Deep Frozen Shipping (which is CryPort's (CYRX) Express Dry Shipper and CryoPortal) as a recent enhancement which will help meet this growing global healthcare shipping demand.

From FedEx's 10/4/2012 press release talking about CryoPort's Shipper and Portal:

FedEx Deep Frozen Shipping: FedEx makes the transportation of deep-frozen material simpler than ever before, eliminating the need for dry ice or expensive rented shipping equipment. This value-add FedEx service provides customers dealing with deep frozen material—such as body fluids, tissue samples or medicines—with a ready-to-ship, super-cooled Dewar that holds a temperature below minus-150 degrees Celsius for up to 10 days. Dry ice, in contrast, must be replenished every 72 hours to maintain its temperature. Eliminating the need for dry ice also reduces customs clearance delays and helps ensure sensitive deliveries arrive on time and in pristine clinical condition. [1]

The entire press release can be seen here; http://www.businesswire.com/news/home/20121004005174/en/FedEx-Summit-Spotlights-%E2%80%9CBorderless-Healthcare%E2%80%9D

We cover CYRX with an Outperform rating. See below for access to our most recent report on CYRX.

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