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1
An Innovative Approach to Handling Cold
    Chain Clinical Trial Material in the
        Transportation Channels




                           Larry G. Stambaugh
                           Chairman & CEO
                           CryoPort, Inc.




                   2
Today – Frozen Shipping for the New Global
 Requirements in Clinical Trial Specimens
• Frozen shipping is dominated by dry ice and the
  paradigms established by its limitations
• Specialty couriers have been widely used to globally
  transport dry ice
• Freight forwarders have not been willing to provide re-
  icing services
• Most trials have been run in the U.S. and Western
  Europe
• Biologicals have played a smaller role in products and
  drug development in the past
• Moving products and samples has gotten more
  difficult in today’s new norm for global

                          3
New Forces Working on Global
                 Cold Chain

 • Globalization of products and clinical trial markets are
   stretching the current standard options and raising new
   concerns
 • Growing regulatory concern about proving cold chain
   integrity and security
• More biologicals in development today than ever before
• Emphasis on improving security and sustainability in
   cold chain processes




                           4
Globalization of transportation of frozen
                 biologicals and products
    There are 110,965 clinical trials listed in 174 countries today *
    As of July 2011 the global trials breakdown as follows:*
       • United States                              55,548
       • Western Europe                             28,408
       • China                                              8,352




                                         }
       • Canada                                             8,471
       • Latin America                                      6,522
       • Southeast Asia / Australia                         5,238
       • Middle East                               41,008 4,318
       • Africa                                             2,381
       • Japan                                              1,917
       • Eastern Europe                                     1,920
       • India                                              1,889

*clinicaltrials.gov


                                     5
Explosive Growth in Cold Chain
                Segment of Clinical Trials

Growth projected 2012 - 2015 in cold chain*
      –   US 15%
      –   Europe 18%
      –   Asia 43%
      –   Rest of world 59% (Brazil, Eastern Europe, Middle East)



*Biopharma cold chain Sourcebook 2011




                                        6
Significant Trends in Pharmaceutical Development

•    More biologicals in development today than ever before –
     more than 400 *

•    Of 15 drug approvals in the U.S. for new molecular entities during
     2010, 11 were biologicals**

•    Unprecedented trend toward outsource clinical development to CROs,
     Central Labs and others

•    First time that regulatory approvals of new drugs in Europe exceeded
     the U.S.

•    Companies starting to look at first approvals in China and Middle East
*BioPharma Cold Chain Source Book
** Pharma.org – new drug approvals in 2010




                                             7
More Challenges for Frozen Shipping

• Increase in stem cells, cell lines, cell banks, in-vitro
  fertilization, vaccines, etc.
    Biologists report up to 40% loss of cells during transportation
• High value and volatile biologicals
    Values can range from $1,000 to $5,000 for many of the biological shipments
    today
• Pressure on costs of product distribution and clinical
  development
    Overnight shipping expensive and increased global shipping is raising costs
• Data monitoring needed to prove integrity and security
    Temperature excursions hard on biologicals
    Constant track and trace often ineffective today
    Regulatory scrutiny of temperatures a new focus




                                        8
The New Norm

•   Terrorists alerts and grounded planes
•   Volcano disruptions
•   Suspicious packages delays
•   Custom increased scrutiny
•   Sophisticated counterfeiting of drug products
•   Changing regulations and permits required
•   More limited routes by carriers
•   Limiting dry ice volume per plane
•   Outsourcing of non core processes required




                                  9
The Future of Frozen Shipping for the
New Global Requirements in Clinical Trial Materials
         and Pharmaceutical Products

 Longer holding times for packaging alternatives and new
 technologies needed for global shipments:

 Dry Ice sublimates daily – requires specialty carriers

 LN2 dry vapor provides longer holding times up to 10+ days

 Gel Packs and phase change materials provide longer holding
 times




                                 10
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
        Pharmaceutical Products, cont.


Stable temperatures, eliminating temperature excursions are
necessary for most biologicals

Dry ice (-70 C) fluctuates with re-icing and other conditions

LN2 dry vapor provides a stable constant temperature
(-150 C - below the glass point)

Phase change materials provide variable temperature ranges


                                 11
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
        Pharmaceutical Products, cont.

Temperature monitoring that verifies integrity and security of
samples and products

Specimen or product temperature monitoring is difficult with dry
ice – probes used to monitor box not samples

Specimen chamber temperature monitoring is possible with LN2
dry vapor and some phase change materials




                                12
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
        Pharmaceutical Products, cont.

Temperature monitoring that verifies integrity and security of
samples and products, continued

Data monitors generally track temperature only

New monitors will track:
• Temperature
• Humidity
• Shock and vibration
• Pressure

Monitors may be used to manage security by detecting tampering
during shipment.


                               13
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
        Pharmaceutical Products, cont.

Shipping solutions will better utilize “green” sustainable
materials and processes

Dry Ice is considered dangerous goods shipping and it is shipped in
Styrofoam / EPS boxes that are excluded from landfills

New technologies such as LN2 dry vapor and phase change
materials introduce non hazardous shipping and recyclable
materials




                               14
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
        Pharmaceutical Products, cont.


Business models that facilitate full outsourcing of the frozen
shipping solution desirable

Solutions that provide outsourced capabilities to manage frozen
shipping in connection with Good Distribution Processes

Expertise in complying with country by country rapidly changing
custom and permit requirements in global shipping




                                15
Other Possibilities Through Innovation
          Rethinking Frozen Supply Chain

• Shipping products and collecting clinical samples five days a
  week

• Two day shipping rather than overnight

• Using shipping container as temporary storage device

• Wireless temperature monitoring

• More cost effective outsourcing of cold chain transportation

• Eliminate risk of loss of sample viability due to degradation




                                 16
The Future of Frozen Shipping for the New Global
  Requirements in Clinical Trial Materials and
            Pharmaceutical Products

• Longer holding times for packaging alternatives
• Stable temperatures, eliminating temperature excursions
• Improved processes to address customs, permits and
  increasing regulations
• Temperature and data monitoring that verifies integrity and
  security of samples and products
• Compliance with good distribution practices by outsourced
  partners
• Sustainable processes that eliminate hazardous materials and
  non recyclable materials
• Shipping five days a week and two day shipping
• Cost effective outsourcing of shipping process


                               17
CryoPort Express® – Setting a New Standard
Enter order through CryoPort’s                  CryoPort Express® proprietary                     Package received and
Express® Portal which manages                   container arrives ready to ship               unloaded; simply flip box flaps,
complexities of all required legs                with all required docs and no                and send to CryoPort for reuse
           of transit                                   hazmat handling




        Preparation                                       In-Transit                                 Post-Shipment

 Technology-rich web portal         10 day holding time allows much greater        Data logger tracks temperature
  streamlines ordering and            flexibility and no re-icing                     throughout shipment, ensuring integrity
  ensures successful shipment        Stable -150 degree celsius ensures              of sample and detection of tampering
 Easy to use dry vapor LN2           condition of specimen throughout transit       Simply return shipper to CryoPort - no
  shipper arrives charged with       Integrated carrier solution allows for          environmentally unfriendly packaging to
  required documentation              greater control of shipment progress            dispose of
 Non-hazardous shipping and            – In transit updates and alerts available    CryoPort dry vapor LN2 shipper is tested,
  handling                                 through portal                             and sterilized for next shipping cycle
                                     Reliable, outsources frozen shipping
                                      solution

           CryoPort’s Express® Offers a Simpler Method with More Reliability for Less Cost




                                                                18
Questions?
                   Thank you



• Larry G. Stambaugh
• Chairman & CEO
• CryoPort, Inc.

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Cold Chain Shipping Innovations: Keys to Maintaining Specimen Integrity Larry Stambaugh, Chairman and Chief Executive Officer Cryoport

  • 1. 1
  • 2. An Innovative Approach to Handling Cold Chain Clinical Trial Material in the Transportation Channels Larry G. Stambaugh Chairman & CEO CryoPort, Inc. 2
  • 3. Today – Frozen Shipping for the New Global Requirements in Clinical Trial Specimens • Frozen shipping is dominated by dry ice and the paradigms established by its limitations • Specialty couriers have been widely used to globally transport dry ice • Freight forwarders have not been willing to provide re- icing services • Most trials have been run in the U.S. and Western Europe • Biologicals have played a smaller role in products and drug development in the past • Moving products and samples has gotten more difficult in today’s new norm for global 3
  • 4. New Forces Working on Global Cold Chain • Globalization of products and clinical trial markets are stretching the current standard options and raising new concerns • Growing regulatory concern about proving cold chain integrity and security • More biologicals in development today than ever before • Emphasis on improving security and sustainability in cold chain processes 4
  • 5. Globalization of transportation of frozen biologicals and products There are 110,965 clinical trials listed in 174 countries today * As of July 2011 the global trials breakdown as follows:* • United States 55,548 • Western Europe 28,408 • China 8,352 } • Canada 8,471 • Latin America 6,522 • Southeast Asia / Australia 5,238 • Middle East 41,008 4,318 • Africa 2,381 • Japan 1,917 • Eastern Europe 1,920 • India 1,889 *clinicaltrials.gov 5
  • 6. Explosive Growth in Cold Chain Segment of Clinical Trials Growth projected 2012 - 2015 in cold chain* – US 15% – Europe 18% – Asia 43% – Rest of world 59% (Brazil, Eastern Europe, Middle East) *Biopharma cold chain Sourcebook 2011 6
  • 7. Significant Trends in Pharmaceutical Development • More biologicals in development today than ever before – more than 400 * • Of 15 drug approvals in the U.S. for new molecular entities during 2010, 11 were biologicals** • Unprecedented trend toward outsource clinical development to CROs, Central Labs and others • First time that regulatory approvals of new drugs in Europe exceeded the U.S. • Companies starting to look at first approvals in China and Middle East *BioPharma Cold Chain Source Book ** Pharma.org – new drug approvals in 2010 7
  • 8. More Challenges for Frozen Shipping • Increase in stem cells, cell lines, cell banks, in-vitro fertilization, vaccines, etc. Biologists report up to 40% loss of cells during transportation • High value and volatile biologicals Values can range from $1,000 to $5,000 for many of the biological shipments today • Pressure on costs of product distribution and clinical development Overnight shipping expensive and increased global shipping is raising costs • Data monitoring needed to prove integrity and security Temperature excursions hard on biologicals Constant track and trace often ineffective today Regulatory scrutiny of temperatures a new focus 8
  • 9. The New Norm • Terrorists alerts and grounded planes • Volcano disruptions • Suspicious packages delays • Custom increased scrutiny • Sophisticated counterfeiting of drug products • Changing regulations and permits required • More limited routes by carriers • Limiting dry ice volume per plane • Outsourcing of non core processes required 9
  • 10. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products Longer holding times for packaging alternatives and new technologies needed for global shipments: Dry Ice sublimates daily – requires specialty carriers LN2 dry vapor provides longer holding times up to 10+ days Gel Packs and phase change materials provide longer holding times 10
  • 11. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products, cont. Stable temperatures, eliminating temperature excursions are necessary for most biologicals Dry ice (-70 C) fluctuates with re-icing and other conditions LN2 dry vapor provides a stable constant temperature (-150 C - below the glass point) Phase change materials provide variable temperature ranges 11
  • 12. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products, cont. Temperature monitoring that verifies integrity and security of samples and products Specimen or product temperature monitoring is difficult with dry ice – probes used to monitor box not samples Specimen chamber temperature monitoring is possible with LN2 dry vapor and some phase change materials 12
  • 13. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products, cont. Temperature monitoring that verifies integrity and security of samples and products, continued Data monitors generally track temperature only New monitors will track: • Temperature • Humidity • Shock and vibration • Pressure Monitors may be used to manage security by detecting tampering during shipment. 13
  • 14. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products, cont. Shipping solutions will better utilize “green” sustainable materials and processes Dry Ice is considered dangerous goods shipping and it is shipped in Styrofoam / EPS boxes that are excluded from landfills New technologies such as LN2 dry vapor and phase change materials introduce non hazardous shipping and recyclable materials 14
  • 15. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products, cont. Business models that facilitate full outsourcing of the frozen shipping solution desirable Solutions that provide outsourced capabilities to manage frozen shipping in connection with Good Distribution Processes Expertise in complying with country by country rapidly changing custom and permit requirements in global shipping 15
  • 16. Other Possibilities Through Innovation Rethinking Frozen Supply Chain • Shipping products and collecting clinical samples five days a week • Two day shipping rather than overnight • Using shipping container as temporary storage device • Wireless temperature monitoring • More cost effective outsourcing of cold chain transportation • Eliminate risk of loss of sample viability due to degradation 16
  • 17. The Future of Frozen Shipping for the New Global Requirements in Clinical Trial Materials and Pharmaceutical Products • Longer holding times for packaging alternatives • Stable temperatures, eliminating temperature excursions • Improved processes to address customs, permits and increasing regulations • Temperature and data monitoring that verifies integrity and security of samples and products • Compliance with good distribution practices by outsourced partners • Sustainable processes that eliminate hazardous materials and non recyclable materials • Shipping five days a week and two day shipping • Cost effective outsourcing of shipping process 17
  • 18. CryoPort Express® – Setting a New Standard Enter order through CryoPort’s CryoPort Express® proprietary Package received and Express® Portal which manages container arrives ready to ship unloaded; simply flip box flaps, complexities of all required legs with all required docs and no and send to CryoPort for reuse of transit hazmat handling Preparation In-Transit Post-Shipment  Technology-rich web portal  10 day holding time allows much greater  Data logger tracks temperature streamlines ordering and flexibility and no re-icing throughout shipment, ensuring integrity ensures successful shipment  Stable -150 degree celsius ensures of sample and detection of tampering  Easy to use dry vapor LN2 condition of specimen throughout transit  Simply return shipper to CryoPort - no shipper arrives charged with  Integrated carrier solution allows for environmentally unfriendly packaging to required documentation greater control of shipment progress dispose of  Non-hazardous shipping and – In transit updates and alerts available  CryoPort dry vapor LN2 shipper is tested, handling through portal and sterilized for next shipping cycle  Reliable, outsources frozen shipping solution CryoPort’s Express® Offers a Simpler Method with More Reliability for Less Cost 18
  • 19. Questions? Thank you • Larry G. Stambaugh • Chairman & CEO • CryoPort, Inc.