Biolife shares have collapsed for several reasons

Turnaround plays can be discovered in the realm of multi-baggers, despite the fact that they are exceedingly risky. Due to a number of issues, including a supply chain that cannot keep up with the company’s acquisition-heavy growth strategy, BioLife’s stock price has dropped drastically. Additionally, there are management shifts and NASDAQ compliance difficulties. Nevertheless, BioLife has already made improvements to solve these fundamental concerns.

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When investing in the biotechnology industry, it is necessary to track several corporate changes. In the end, fundamentals decide the future direction of your equity holdings. Consequently, the question is whether BioLife is capable of a successful turnaround.

Currently, the company is undergoing substantial adjustments

A variety of fundamental issues have lately impacted BioLife: Can This Company Turn Around Successfully? In order to get things back on track, the company is making a lot of changes right now. I think BioLife has a good chance of coming back during this “transitional phase.” In this study, I’ll give an update on BioLife’s core business and talk about how I think its growth equity will play out.

The evolution of businesses across time

As a result, companies evolve throughout time. While some growing organisations will continue to develop fast, others will not be able to manage huge growth. Therefore, maintaining current on investment news will provide you a competitive edge in the stock market.

Clearly, I am an avid fan of BioLife: Can This Company Turn Around Successfully? Therefore, I prefer logistics businesses for biotechnology startups. Cryoport (CYRX) is an example of a company with exceptional results. BioLife Solutions, Inc. is the other major company in this field.

Extensive Market And Reliable Clientele

The CGT industry is rapidly expanding, as is evident. BioLife: Can This Firm Successfully Reverse Its Course? As a result, various logistical firms, including those listed below (lab freezers, cold chain packaging, and biopreservation media/equipment), would have tremendously benefited from this remarkable breakthrough. In the next two to three years, for instance, the cold chain packaging, lab freezers, and biopreservation media/equipment markets will each increase to $5 billion, $4 billion, and $5 billion, respectively. As we move closer to CGT, you may anticipate a further acceleration of this trend.

Concerning the Firm

As usual, I’ll provide a brief summary of the company to prospective investors and pose the question, “Can BioLife successfully turn around?” If you are already familiar with the company, I suggest moving on to the next section. Bothell, Washington-based BioLife is the leading producer of bioproduction commodities and a provider of logistical services to the cell/gene therapy (CGT) and biopharmaceutical industries. It is in a fantastic position to capitalise on the substantial industry tailwind as CGT rapidly grows.

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Biolife Is Able To Supply Services To A Variety Of Clients.

BioLife: Can This Firm Successfully Reverse Its Course? Working in an industry with a tailwind has the benefit of allowing you to: Growth can be achieved with relatively little effort. In addition to serving a broad market, BioLife is able to serve a number of prestigious and new clients, such as Kite Pharma (GILD), Celgene Corp (BMY), and Novartis AG (NVS).

In addition to aiding new molecules, BioLife: Can This Organization Successfully Turn Around? Well BioLife also manages authorised pharmaceuticals such as Yescarta/Tecartus by Kite, Breyanzi/Abecma by Celgene, and Zynteglo/Skysona by bluebird bio, Inc. (BLUE). As you can anticipate, the presence of reputable clients like Novartis is indicative of a company’s superior management. Ultimately, great companies have stringent production standards.

Developing By Merger And Acquisition

The following graph illustrates that both existing enterprises and newly acquired subsidiaries contributed to expansion. BioLife: Can This Company Turn Around Successfully? My research on Cryoport indicates that expanding through merger and acquisition (M&A) is a very intelligent and effective strategy. Ultimately, it causes a meteoric rise in earnings and revenues.

The Earnings Call’s Management Is Extremely Transparent

During the peak of the pandemic, any fault would break the chain. As you are aware, businesses constantly encounter new obstacles. It is vital that management is truthful about it. In this scenario, the leadership of the earnings call is incredibly transparent. Importantly, biolife promotion strategies have employed a number of solutions to address difficulties (no pun intended here).

Rod De Greef, President and Chief Operating Officer, indicated that we have nearly completed the main vendor change discussed on the prior conference and will continue to utilise the original vendor to maintain our dual source strategies and processes ahead.

Reliable business procedures

Now that you have shifted gears, you should investigate the specific trends in BioLife’s three business operations. BioLife: Can This Company Turn Around Successfully? As can be seen in the graphic below, cell processing (“CP”), freezers/thaw systems (“FTS”), and storage/storage services (“SSS”) all had excellent revenue growth from Fiscal 2020 to Fiscal 2021.

This year, you may expect CP, FTS, and SSS to increase by 50%, 37%, and 48%, respectively. Revenue projections for Fiscal 2022 range from $159.5 millions in the low estimate to $171.0 millions in the high estimate.

Concern Regarding Stirling Ultra Freezer

Even if M&A results in tremendous growth, not all purchases will bring rapid and painless results. Integration issues still needed to be resolved, after all. I believe that nearly all companies participating in M&A will encounter integration issues. The challenges worsen as the size of the acquisition increases.

Biolife encountered challenges integrating its ULT acquisition

BioLife: Can This Company Turn Around Successfully? In this context, BioLife had integration issues with its Stirling ULT acquisition. In other words, the corporation incurred $1.3M in expenses due to operational issues at Stirling. Moreover, the “supply-chain” restriction relates to this. Stirling’s sole supplier was unable to keep up with the company’s expansion due to the high demand for goods. As you are aware, COVID had a substantial effect on the entire global supply chain.

Several Major Management Changes

In contrast to the past, we have undertaken various important management reforms throughout the Stirling operations organisation to guarantee that the right people are in the right roles. We have rebuilt the supply chain team and recruited another senior member to the operations team at the Athens site.

Our Vice President of Manufacturing, who has been with the organisation since 2019, is responsible for implementing the dual source strategy and utilising increased purchase volumes to achieve cost reductions. She is responsible for managing all vital vendor connections across the firm, including those with Stirling.

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