The world has rapidly evolved into one big logistics route as both international and domestic deliveries get faster and easier as technology improves. So what happens when a business needs an end to end delivery that stores the important contents at a certain temperature? Enter Cryoport (NASDAQ:CYRX), a Tennessee based company that serves the global shipping and distribution chain with cold storage technology to over 150 countries around the world. Cryoport was founded in California back in 1999, when a group of doctors created a way of manufacturing dewar vacuum flasks as well as developing a new way of transporting temperature sensitive materials. The old fashioned way of doing this? Packing the contents with dry-ice. Learn More

Cryoport listed on the NASDAQ index in July of 2015 and has grown in size to a $2.5 billion market cap. A quick look at Cryoport’s stock chart will show that owning shares comes with a certain amount of volatility. Cryoport has a 52-week trading range of $17.38 to $84.97 and much of this is due to the low share float and high institutional ownership. When the stock sees swings either up or down, it doesn’t take much to have an impact on the stock price.

The Bullish Case: The power of Cryoport was seen on full display this past year when the company was used to facilitate the storage and delivery of 26 different COVID-19 vaccine candidates during clinical trials. Two of the most widely distributed vaccines from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) require temperature control during delivery and storage, so airlines were one of the first to request Cryoport’s services. As the global vaccine rollout continues to hit international regions, Cryoport should be one of the brands that are relied upon to facilitate safe delivery.

Cryoport is at the crossroads of technology and cold storage delivery, as its intelligent logistics allows both shippers and receivers to digitally track the package. This ensures proper temperature monitoring, GPS tracking, barometric pressure changes, light sensitivity, humidity levels, and the recording of any shock events. Cryoport is in the business of shipping some highly sensitive materials with biopharma companies being one of its largest customer bases. Cryostork is the company’s IVF and embryo shipping service and is a simple way of allowing remote IVF deliveries to labs. Cryoport is at the heart of global cold storage delivery, and is well positioned to rapidly grow as the world’s delivery and logistics system continues to get faster and more robust.

The Bearish Case: With a small company that is punching above its weight class, Cryoport is a strong case for a buyout from a larger distribution and logistics company like Amazon (NASDAQ:AMZN). The brand is trusted, but the technology is not something that others cannot replicate or improve upon. There are already disruptive companies such as TransMedics (NASDAQ:TMDX) which cold ships live organs to hospitals around the country, so how long until it can ship IVF or vaccines as well? Perhaps the best way to phrase it is that Cryoport has a limited industry moat, even though it does remain one of the strongest brands in the cold storage delivery sector.

Final Verdict on Cryoport: Cryoport is currently trading at a nice discount for investors as it is 36% off of its 52-week high price of $84.97. If you believe in the future of cold storage delivery as being a necessary part of the global logistics chain, especially for medical supplies, then Cryoport does make for an intriguing investment. The median analyst price target remains at around $75 per share, so there is some reasonable upside for the stock. Just be prepared for some volatility and some future dilution as Cryoport has a small outstanding share float and a history of stock offerings when the share price is high.


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