BioLife Solutions management is making some big and bold moves with SAVSU Technologies.
SAVSU Technologies is a partner with BioLife Solutions. SAVSU signed an agreement to supply their smart precision shipping containers to World Courier. World Courier is the global leader in specialty logistics and a part of AmerisourceBergen.
Due to the expanded marketing reach of World Courier, and to eliminate potential channel conflict, BioLife and SAVSU have agreed to terminate the marketing services agreement originally entered into between the companies on December 31, 2016. In exchange, BioLife’s equity ownership in SAVSU, previously scheduled to be reduced to 25% on December 31, 2019, has now been fixed at 35%, before taking into account any additional capital contributions made after December 31, 2016.
Mike Rice, BioLife Solutions CEO, commented, “The alliance between World Courier and SAVSU is an endorsement of the best in class technologies we have developed over the past three years. This is a critical inflection point in the cell therapy market, as awareness of the critical need for better cold chain technologies for personalized medicine has never been greater.”
BioLife and SAVSU Partnership
BioLife Solutions is a leading developer, manufacturer and marketer of proprietary clinical grade cell and tissue hypothermic storage and cryopreservation freeze media and SAVSU Technologies is the leading developer of smart, precision biologic shipping containers and cloud-based cold chain management SaaS solutions.
On January 18, 2018, BioLife Solutions and SAVSU announced that the USPTO has issued a notice of allowance of a patent application titled “Biologic Stability, Delivery Logistics and Administration of Time and/or Temperature Sensitive Biologic Based Materials”. The inventors are Bruce McCormick, President of SAVSU Technologies, and Mike Rice, CEO of BioLife Solutions.
Since the formation of the BioLife Solutions and SAVSU Technologies biologistex™ joint venture in 2014, the companies have submitted 13 other patent applications related to storage containers that precisely maintain biologic payload temperature stability across the entire shipping continuum; including -196°C liquid nitrogen dry vapor shippers, -80°C dry ice shippers, and 2° – 8°C and controlled room temperature (CRT) shippers using conditioned phase change insulating materials. These patent applications also include claims related to the evo.is Cold Chain Software as a Service (SaaS) live cell visibility platform.
Putting It Together
So in a nutshell, here’s what is going on. BioLife and SAVSU formed a partnership a few years ago to pool their resources and technology to produce next generation biologic storage and shipping solutions for the biotechnology market. Together they submitted 14 patents to the USPTO of which the first patent received a notice of allowance a couple weeks ago.
The number of clinical trials is exploding higher. Between 2004 and 2013, the global number of registered clinical trials increased fivefold.
The new and exciting CAR T therapy market relies on biologic shipping solutions heavily.
World Courier is a huge shipper and you can see the shipping service that they most likely need SAVSU for here.
The big global shipper World Courier signed a deal with SAVSU because it needs SAVSU’s smart precision shipping containers to meet the growing demand coming from the growing number of clinical trials. Because BioLife has a 35% equity ownership stake in SAVSU and because both companies have joint ownership of the patents covering these smart precision shipping containers, BioLife benefits from the World Courier/SAVSU deal too.
BioLife Solutions Stock
BLFS presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at $5.80, a stop order could be placed below this zone.
I picked up some BioLife Solutions stock in my personal trading account on Friday, January 26, 2018.
Research report for Premium members on BioLife Solutions is here.