BioLife Solutions, Inc. (NASDAQ:BLFS) is a leading developer, manufacturer, and supplier of a portfolio of bioproduction tools and services, including proprietary biopreservation media, automated thawing devices, cloud-connected shipping containers, ultra-low temperature mechanical freezers, cryogenic and controlled rate freezers, and biological and pharmaceutical materials storage. The company's products are used in basic and applied research and commercial manufacturing of biologic-based therapies.

Business Overview

BioLife has a diversified portfolio of tools and services that focus on biopreservation, cell processing, frozen biologic storage products and services, cold-chain transportation, and thawing of biologic materials. The company's CryoStor® freeze media and HypoThermosol® hypothermic storage media are optimized to preserve cells in the regenerative medicine market. These novel biopreservation media products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced cell damage and death.

Financials

In the first quarter of 2024, BioLife reported revenue of $31.7 million, a decrease of 16% year-over-year. The decrease was primarily driven by a 35% decline in revenue from the company's freezers and thaw platform, as well as a 15% decrease in the cell processing platform, partially offset by a 25% increase in the biostorage services platform. On a sequential basis, total revenue decreased by 3% from the fourth quarter of 2023, due to a $2.9 million decrease in freezer sales, partially offset by a 10% increase in cell processing and a 7% increase in biostorage services.

The company's annual revenue for 2023 was $143.3 million, with a net loss of $66.4 million and negative operating and free cash flows of $12.5 million and $18.9 million, respectively. BioLife's balance sheet remains strong, with $46.1 million in cash and marketable securities as of March 31, 2024.

Outlook

Regarding the company's outlook, BioLife is affirming its previous guidance for 2024 total revenue of $95.5 million to $100 million, reflecting an overall growth of 2% to 7% over 2023. The company expects its cell processing platform to contribute $66 million to $68.5 million, or flat to 4% growth, and the biostorage services platform to contribute $29.5 million to $31.5 million, or 5% to 12% growth (10% to 16% on a like-for-like basis). BioLife also expects revenue, gross margin, and adjusted EBITDA growth throughout 2024.

Growth Drivers

One of the key drivers of BioLife's growth is the company's leading position in the cell and gene therapy (CGT) industry. BioLife has a market share in excess of 70% of the relevant commercially-sponsored clinical trials in the U.S., with approximately 45 Phase 2 and Phase 3 trials utilizing its CryoStor biopreservation media. In the first quarter of 2024, the CGT regulatory environment continued to carry forward the momentum that started in 2023, with BioLife's biopreservation media embedded in two newly-approved therapies, bringing the total approved commercial therapies the company supports to 15 at the end of the quarter.

Additionally, BioLife saw two new indications, one new geographic area, and four earlier lines of treatment approved for its supported therapies, which the company believes will drive future biopreservation media revenue growth. The company expects an additional 11 similar approval opportunities over the next 12 months.

Recent Developments

BioLife's strategic focus on its high-margin cell processing and biostorage services platforms has been a key priority. In April 2024, the company successfully divested its Global Cooling (GCI) freezer business, which had been a drag on profitability. The divestiture is expected to significantly reduce cash burn, improve the company's financial profile, and remove a $7.5 million warranty liability.

Additionally, BioLife is in the process of divesting its Custom Biogenic Systems (CBS) freezer business, which represented approximately 11% of first-quarter 2024 sales and has been a historical drag on profitability. The company recently implemented a $1.2 million per year reduction in operating expenses at CBS, which is expected to make the business slightly positive from an adjusted EBITDA perspective.

BioLife's Chief Revenue Officer, Garrie Richardson, highlighted the company's focus on leveraging its technical expertise and strong relationships with leading biopharma companies to cross-sell its other self-processing solutions, in addition to protecting and growing its dominant position in biopreservation media. The company's commercial team of eight experienced sales individuals with deep industry knowledge is well-positioned to execute on this strategy.

Geographic Distribution

From a geographic perspective, the majority of BioLife's revenue, approximately 80%, is derived from the United States, with the remaining 20% coming from Europe, the Middle East, Africa (EMEA), and other regions. The company has not provided a detailed breakdown of revenue by geography for the first quarter of 2024.

Liquidity

In terms of financial ratios, BioLife's current ratio stood at 2.89 as of March 31, 2024, indicating a strong liquidity position. The company's debt ratio was 0.07, suggesting a low level of leverage. However, the company's profitability metrics remain challenged, with a negative net profit margin of 46% in the first quarter of 2024.

Conclusion

Overall, BioLife Solutions is a leading provider of critical bioproduction tools and services, with a strong market position in the fast-growing cell and gene therapy industry. The company's strategic focus on its high-margin cell processing and biostorage services platforms, coupled with its dominant position in biopreservation media, positions it well for continued growth and improved profitability in the coming years.