Cryoport, Inc. announced that its New Prague facility has returned to full production. As previously announced, a fire occurred in a portion of the MVE Biological Solutions manufacturing facility located in New Prague, Minnesota on January 25, 2022, causing production to be temporarily curtailed. The New Prague facility manufactures aluminum dewars and is one of MVE Biological Solutions' three global manufacturing facilities.
Cryoport previously announced it would resume production at the New Prague facility during the week of February 14th and ramp up to full production during the first quarter of 2022. The Company also guided to a revenue impact from the fire of $4 to $5 million limited to the first quarter of 2022. Production did resume as planned; however, a number of unexpected challenges resulting from the fire caused the recommissioning and validation of production to progress more slowly than had been previously anticipated. As a result, Cryoport now expects a revenue impact from the fire of $9.0 to $9.5 million which will remain limited to the first quarter. As previously announced, the Company expects its insurance to cover the majority of the costs to restore and re-open the facility, as well as related business interruption losses. Management will concentrate on reducing shipment timelines to customers throughout the remainder of the year.
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