BNR - Earnings call transcript Q4 2020 | Burning Rock Biotech Limited

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Burning Rock's 2020 Fourth Quarter and Full Year Earnings Conference Call.

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended, and as defined in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminologies such as will, expects, anticipates, future, intends, plans, believes, estimates, target, confident and similar statements. Statements that are not historical facts, including statements about Burning Rock's beliefs and expectations are forward-looking statements. Such statements are based upon management's current expectations and current markets and operating conditions and relate to events that involve known or unknown risks or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock's control.

uncertainties differ factors in materially statements. risks, actual could any involve to results from statements and that other cause such Forward-looking those contained Rock events or update except as obligation a Burning applicable of otherwise, undertake law. under statements result future forward-looking as to information, new required not does any any participants a time, listen-only At all this mode. are in session. the presentation, After speakers' there'll be a question-and-answer that [Operator conference is be advised today's Please Instructions] recorded. being

please the turn Burning I'd over ahead. the management to of you, Now, team Rock. Thank to call go like

Yusheng Han

Welcome Founder. our This Chuai; leader two for our CEO of is to Page our conference Yusheng is There to let's main oncology. call. parts precision Shannon of turn and X, Burning Rock's Rock Today China's earnings start. CFO, molecular Han, the Please Burning business. are Leo CTO, COO, team diagnostic and Joe Zhang; have Li. you consisting The

is one first is second the The detection. selection. early therapy one And

X. turn Page Let's to

go today our we'll issues about early through recap. XXXX, our commercialization such exciting XXXX So also, detection. go multi-cancer and for But plan more what through our as is is other blood-based priorities financials. we'll And

turn Page X. Let's to

Let's look at first. recap XXXX

terms accumulated in past Burning the illustrate for that world. XXXk year the years, thing want COVID-XX. we selection, second the I genomic that of XXXX of to of tough the Rock is which cancer samples means the whole one patients a in therapy seven has is biggest In for have industry data because And really the

a back. first But we the the half we turn COVID-XX. year see impact have in significantly second by The that year, half is strong

of we XX. of detection, XX early R&D started year-over-year we growth all from half XXXX. in And terms that record early efforts So the detection know in the we second

the product execution, for which We have trials to and completed samples X-cancer and one we our world strong X-cancer for other product detection. in years. already clinical the around moved the one development development well. as And the in well trials one pan-cancer XX,XXX early biggest in Through and the five of is as biggest China past accumulated have the

page, Next yeah, turn X. Page to so - let's

highlight today. is of this So a

to I R&D a start X-cancer panel specificity. we validation X-cancer. high efforts, access the that the program published Asia planned five-year data the in X-cancer And from last finally very same panel first the potential perspective the collaborators. also very feasibility shared already product. have our in key the data were means operation think early we originally six As find for that start with partners, X-cancer the this about When potential need ESMO feedback time, for And validation at sensitivity excited That the we before and through that we commercialization November, with out we said the for have to - makes us data. they designed might that point, and our

in China. We have expect planned. the which pan-cancer advantage early one a early - January is originally early strong for which detection XXXX, started before year in for that Operationally, the revenue means the we detection

clinical the and the biggest also, fastest And and and the have strongest that second the We have first mover. data thing the third accumulated. we mover the - we're is execution

paths the for think Next page, are there beginning, in two we commercialization.

The hospitals. and first for is one is public insurers one commercial second the the

strong cost can of synergy to early. help insurers with save commercial lot by them cancer - them a and we we patients discovering treating and for So can a have

set among we helping cancers. competitive by them unique them And obtain XX% of a and multi-cancer paid their their can also, - strong product, early their late-stage payment up Nowadays maintain advantage to a was customers to help to paid with peers. detection

can checkup cancer - some treatment hospitals, advantage revenue revenue can them help is for - health generate first by well. their We field detection hospital, same our the - more to patients. also strengthen will as At have the have for we find the for the and And Shannon, development brand Shannon? one patient their CEO roadmap them detection. the high downstream and helping innovative then benefits in the I the market. generation. As build talk the to time, then hospitals demand early products product about pass for And those to pan-cancer to for big

Shannon Chuai

Yusheng. Thanks Yes.

I next you few times So have of page, seen lays might to this product our Page roadmap. the before. X. go let's This believe out development a some

have We development clinical shared our plan before.

the on response our and commercialization. release X-cancer However, recent forward we plan test have has have as received the some There leading going mentioned, results. after been additions Yusheng with update also to

assay just and and as results early-stage to would become - then our we which been the So specificity methodology concept, significantly well. from recap, cancer, or the mostly then different an for cancer patients. clinical and prototype the concept of X-cancer as a Asia XXXX. our detection or test, to across product we types And of we And to test single-cancer, originally the deliver test. sensitivity additional commercialization compared we last as our XX.X% for versions, move our to of development extended and feasibility delivered most both early year the of and billing the a which and ultimately previous as plan bioinformatics the cancer single-cancer use able the X-cancer validation XX.X% started recently accuracy X-cancer we concept proof methylation then ESMO on November, lung origin also was the product being registration. to on as proof Yusheng algorithm And on started from on assay mentioned, with a for was to the algorithm. improved And at proof to released The the tissue X-cancer just has

and added programs the the of the as with collaborators, commercialization additional we plan, because to X-cancer recent from we the However, partners test. received rollout or have decided we have response up on potential Yusheng mentioned, that, have speed plan, two

we that - stop the at Asia. validation didn't we have stop wouldn't at we presented ESMO So

visibility we follow access at sure initiated we to gather positive the X-cancer sensitivity that try as monitor program participants the also initiate real study the reflects - we test, established best study. it holds And will the downstream closely the we programs, or validation established that and early control on rate specificity well. actually validation On the try specificity prospective positive was rate, meanwhile, also, these to and case also to will launch a compared largely in world and make But access up we our sure studies on in which assess to we feedback. early control the first - those on an And have largely have test. in will to which case the - will X-cancer positive to the

of have in sites finalized design the that with and We the of investigators. progress communicating and validation participating protocol are prospective

more detailed parallel disclose studies good we'll the near future. have wanted were And X-cancer hopefully making They're X-cancer emphasize the as planned So test, that carried to that progress. the there for the then originally on I we a in in out planned. being to test, few

on originally are plan added have our we moving X-cancer with parallel what test. on test in cancer this So

more future more studies. then the types, or delay planned we cancer launching beyond any of the product also So cause also not least, other as but test, won't efforts validating last adding on any impact biomarkers in some which are contribution negative And it on the impact - and the products the X-cancer dimensions as model. going assay well involves as to development

bit, a XX we detection. to little on again, on recap illustrate or wanted Page So targeted multi-cancer early XX, - why we Page

early detection are As you might emerging know, single-cancer focusing players of some are but in in most types. field, the China, there on them

Here to detection we by product. show on have real illustration a multi-cancer focusing to early just the and wanted that straightforward simple

cancers cancer are urban we Rock cover XX% would and XX% we TAM are market. of older X-cancer The in much X of test larger incidence then our X- cancers about China. So China's facing tests covers of of a Burning older

the which the compared the larger early detection popular and products, liver colorectal, type sort different mostly market or market. on So of on early focus multi-cancer most will focuses a to detection single-cancer

of selection light going So a now gears to our we're talk skip about And to XX. market. page little position bit therapy the in time, number switch on

some as have there process also on We well. exciting

the to success So selection for factors on XX, long-term market. for Page the therapy recap again,

of some biopsy again, course. key very have is one and our on NMPA share win products data to exciting biopsy to is factor the products. do then the first The liquid of another quality product, And demonstrate, in the performance news to in of minute especially the our and technology We approval, or the product. China liquid a performance

which China. our registration some we that So biopsy pipeline, our our panel. on on to establishes progress And liquid in also peers leading position in have compared exciting

Joe? liquid to Joe, CTO, registration I'll to data turn to the our the our - products. and for progress hand I'll about So talk biopsy

Joe Zhang

Thanks, Shannon. Yeah.

by on last in is the Precision Liquid XX, paste copy FDA month this Annual for presented and a in Oncology Page Biopsy meeting Fifth So basically, Summit. of the from presentation

very - basically FDA So especially this basically introductory SEQC ctDNA the slide study. the on led talking is study, about

top study overview. panel talking SEQC So on left the the is slide this about

of efforts Rock. members, of including academic industry basically, So SEQC Burning and by the is consortium one participated lot a

- actually effort and of practice whole first as best to sequencing. effort of the of that So kind conclusion the is genome trying sequencing SEQCX understand

as panel workgroup basically, sequencing panel tissue-based both Rock So biopsy-based - liquid participated the assay. oncology sequencing on Burning and as well

the Rock standard material a process and side members, thorough data reference our collaboration get the reference different other to to Burning to against you rock as to multiple a issued as Rock's side sequencing well the back kits. Burning use Burning and FDA lab distributed the other do those Rock and material to of player those including kit and FDA, Burning kit maker by other - our kind and it So user, comparison send sample

core this the a So, on liquid biopsy is bottom left, study. about talking basically,

which a for very actually of effect. up a effect the X.X% extraction down the frequency So, allele different patient, well focused input studying to the a mimic as material and to the situation cancer variant ctDNA as real also, X.X%, with study on similar is reference in from concentration set

And is Burning Target with Target the five basically, this right spec And if present five data. next used slide. as previous talk Rock author look study in So IDT, across and Illumina, participated we about presented the we as Burning other the talking you bottom meeting version panel OncoCompass companies in at sensitivities which that study company, including also FDA, this OncoCompass in reproducibility slide, Rock. the Roche, the Fisher is in study, companies. entire non-plasma next of the and well Thermo different meeting participated including slide about and BX, different our the panel,

here as well sensitivity the utilizing reproducibility. the color see four can represent look capture-based the as the four at and companies You the different assay,

reason the So this the is published. confidential presentation, who, company got in the each and, different didn't color author represents paper that one is and still identify until

going I think very accepted being to Biotechnology. by manuscript already since paper soon be they're the the already - Nature

speak here, like is one showing As sensitivity of you for them, two lower, higher same this reproducibility conclusion the - but to the which see also skip the at Burning I they companies frequency, lower relative - - along Then, Rock allele allele frequency moment. and variant on lower Basically but different that can studied other. cannot compared this too the actually has much ctDNA here. sensitivity reproducibility. there's at with become I variant lower higher

panel this, the just Rock including briefly the Chinese on that early the kit, version as based Target well us our the about biochemistry showing as OncoCompass which of presented Burning a approval will liquid - solution of pipeline. on panel. And very just is actually basically a and Chinese version of in this NMPA, very bioinformatics is give kit, I slide FDA is this FDA confidence call Leverage next the LungPlasma study. SEQCX We talking lot solid technology. So which the progress has biopsy

kit kit, call we approval. done study order a clinical trying led submitted clinical which they're is including before also including the of to and test, approved in the stages utility China, by third it's the test, usually evaluating PI the validation then So validity clinical party party the a clinical and final as which the lot company, analytical four third graph to and here. review prove which the at typing NMPA know, in the showing usually by the and the you validation not NMPA a analytical of suggested for efficacy, to timeline is That's typing on validation, get and

software to approval both kit this test, So the Burning of get Rock's is And in OncoCompass kit one a typing Target back XXXX. in China. position the get we leading of a milestone achieved passed a type this to trying

advantages some have why first think we that's So of mover we advantage.

to collaboration fusion, So the XXX based valve and kind I a get gene the MSI it, kit. some in status label a going happening. are going blood companion and SMD we're of kit on there's And hopefully, we And multiple we'll prove companion status, pharmaceutical in itself, later to also very diagnostic a specifically, the mutation this including into report diagnostic gene, including report to wanted that.

And so this a plan validation to which of year. do study, clinical we is concordance half second of part the in

status basically kit approval is can this ctDNA moment. update So the the at liquid biopsy progress this of we

priorities. So turn slide, the to back CEO, about next Yusheng Yusheng? I'm XXXX going our to talking

Yusheng Han

turn let's to Page So XX.

the is forward. we're that XXXX year looking So really

therapy of selection, our increase therapy we're selection, some For NGS-based penetration cancer, and drivers. going key to continuously

extend to our menu. one product first The is

Myriad is targets companion for patient of for is licensing commercialization. year non-small I DetermaRx. we'll Oncocyte. the cell from lung patients more the cancer all diagnostics. a non-small It adenoma cell last mention XX% As support also have the cancer we DetermaRx them of this that among - and cancer big and completed myChoice complete early XX% detect the And year, lung XX% ctDNA transfer about product start to population are detection around test lung China, we thing we know are stage. are cancer. want and the and patients in This from the HRD And cancers successfully early the lung of And ELSA-Seq

are in execution. in with other a with And And well available So strong when panel we'll in that market second about registration there second and - program it talk NMPA is unique unique market. as the huge driver, the means line is - a products validation. the clinical a product the the with the driver

several await on of ctDNA, have We registration, for also including panel ELSA-Seq. panels big

foundation. further third will one penetration. our strong competitive is that And bring So the in-hospital

thing increase commercialization. model going started into to real XXXX. the commercial as half detection, said out And really already we revenue that in-hospital we have at have to the bring And X-cancer the might We'll noticed the is the that. that we in time, team. the You XXXX. have we lab a second of strong same second in about have grow excited continuously we're are to multi-channel test from build And world very early

good registration NMPA. Another clear its pan-cancer for way early good It future. conversation is we with detection the us - the seems as that the have be point in issue started for the might to

this way this So large clinical dimension time other that large, before also - the for are out additional R&D clear version products. we recently, there about the now, will the that. path. rolled was cannot we we're more and much programs resolution we positive But no additional out at adding very year, And for also included have product of new cancer We roll the in same disclose validation development types at time. and in for

turn early we're XXXX, therapy in detection. yeah, looking for your So I'll about also the financials. and that to our really to no selection forward matter CFO

Leo Li

Yusheng. Thanks

COVID the cases number Let's And relatively in was November our financials. the first in recap of to October China. turn wave XXXX, COVID and China recent In like we'd to low.

January October cases December, was to city. saw miles Beijing, outbound to the oncology And Shijiazhuang, digit and and started in here Shanghai period restrictions hospitals cities close a trends large Shanghai are a December, This renewed travel, population, business COVID away XXX in cases the revenue we negative number for few examples. and in led by The impact in no city China. However, XXXX. across double worsened down schools in on that XX so could hammering A a of leave volumes approximately temporarily growth Hospital our shut resurgence surge had of good had in which with closed. from its a Beijing personnel million that about a time. November.

XX% year-over-year third XX% in the So in across XXXX, fourth hospital at strong was have lumpy. supply XX grew for combined the during on brings from triple standpoint, which of second fourth contract digits channel channel in if booking do that contract out We terms in progress base basis. by we growth to hospitals the hospitals nearly January hospitals the been COVID revenue achieved XXXX. mind, lumpy everybody after revenues contracted significant year-over-year in half of revenues the a the having was just the strong in-hospital completing quarter in year-over-year, total context look start And an fourth had seven growth the the of quarter. notably that With of our new contracted fourth the fourth our of with to four in had revenues reagent XXXX By and the third And XXXX. full our is and to we XXXX. on quarter board only remind the in that further we know historically growing of the We to completed, we newly year XXXX. headwind in-hospital smooth coming quarter compared XXXX accounting This hospital. quarter XXXX

driven range channel was cost margin fourth was GP into in-hospital fourth margin central-lab the reductions. by a XX.X% quarter. scale the our And reagent trending profit growth into It's channel mid low channel of with into XXs slightly the Turning quarter December. fourth fourth the the was third versus the to had year-over-year going central-lab profit gross And quarter. in fourth overall XX% in that of further XXXX. the dip high margin the we the quarter, we And the mid the gross Sequentially in margin the in in by quarter for trends, and quarter, by improved XXs our XXs. down primarily GP was the new because GP

and down New combined led January, because also guidance, turning recap February was first let basis, still of was double it on a significantly quiet up the Year. into February deceleration was our January digits sequential COVID me though in Next, year-over-year. Chinese

our Looking closely. think we're numbers, guidance we very forward that there two factors watching when about are

risk and COVID negatively impacts the overall resurgence testing volume. restrictions The is of related first hospitals, which at

panels second the disappoint. though for long-term, should believe is of in products, NGS have the for industry bringing the based diagnostics encounter The in which gone tissue term. confident We and in factor intense highest win product through strategy competition and, cases, right panel competition intense Chinese been the We NGS the to we normalize to process. competition, remain some that major large after our ctDNA liquid path the near has market example, NMPA quality approval is the do

these guidance initial mind, with million. So RMBXXX This factors rates our in implies a year-over-year is XX%. of XXXX for year full growth

So the management questions for are ready with conclude please. we that and remarks we operator

Operator

Thank from first and from Doug your session. Please comes Your the Cowen. will now we you. question. gentlemen, question-and-answer ask question Ladies begin Instructions] [Operator Schenkel

Doug Schenkel

quarterly And good for pacing. on thoughts and everybody. on thank afternoon, Good revenue? I model should like we start would my taking your guidance. morning, get Essentially, to want I to you How questions. just And much in you new additional study then this pretty product should initiation. increase to that seem do and notably, investing the like year? given development how It pursuant efforts exciting R&D plan all would on

So a think should just that? how from standpoint we modeling about

Leo Li

the Doug, questions. Thanks, for

points. qualitatively Let these me on speak

guidance. In the we don't line. top of the is year We quarterly terms for revenue guidance have full quantitative guidance, have

Chinese double be of February still Year. be we So a which first teens. back restrictions the to to compare of didn't going because If up on to January, trends, China, weeks Year-over-year early have about soft in XXXX, January And hit, is the it three COVID first going grew digits. it's we which because first quite watch December New that relatively March. three worsened likely we still is the of the and to and compared the in of quarterly QX weeks

February, point. was data and So year restriction. of Chinese one Year COVID New because last Then quite that's March

So that's the quarter. first

we on factors progress teens quarter, making with two Beyond would channel into quarter. have having don't - throughout BR watch I the year number any we would high out guidance hard first execute in-hospital BR although platforms mentioned. the we to like And Magnus that overall, further the further still placed of we Then for strategy Magnus are in-hospital hospital each of the quantitative our working for partners. we the our will penetration

have we R&D and the top clinical look personnel-based team at in of notable we for increases XXXX, expanding capabilities. as which based headcounts, terms compensation from salary the for in expanded the our that's So if line. terms share enlarged you do we team and seen Then of benefit R&D,

commercial In addition, and is would detection, increased to lead for a organization there early sales which marketing expenses.

detection. And year. under early which will this specifics we for mentioned, have also, which that's clinical So announce you we throughout as the the few a programs, plans, on additional

China, be we additional programs, out large expect those still lower we although know, roll over program be As US expense subjects, on These is spend R&D do for we will programs. likely programs, additional XX,XXX overall than will to the programs.

these as line, roll will any as is it those the year. same period the last quantitative and year. don't you throughout we qualitatively We but have R&D announce go out versus guidance increase we So mentioned on to going

Doug Schenkel

you And up, I'm appreciate. Leo very sure thank quick as that One you for one. all follow

into You central-lab? XXXX. that mean, the essentially toward that in-hospital But really is then in-hospital had was guess, a very out continued I was heading most QX emblematic the in-hospital general. guessing was me to momentum thinking I'm shifts where about the that's seasonality, extension versus think relative contemplate some by just a - jumped upside is the strong the that our channel in mix in to more a Should strong but revenue be quarter we fourth continued we revenue, what revenue forecast. of of change I as and progress of little in

Leo Li

competes better stronger central-lab that and we BR overall, Magnus compared that differentiated product product and we our terms to grow in-hospital Yes, in of solution. as the faster a more to a expect that performance, is channel is believe - would

things revenue driving at are there growth. in-hospital look that's the XXXX, you If quarter the two fourth

channel, that there. same sort metric the First central-lab metric. growth like to is a of And a not sales tracking is compared store surprise similarly,

we're fourth the quarter. newly in factor good how to driven and And growth second contract So made it adding for each is hospitals. versus internal process a which And hospitals of hospitals in down contracted contributing it's own exact by to approval hard factor, because four terms processes. the hospitals that progress, pin and to many going we quarter, much contracting was more smaller is

probably hard reasonable few at it's up look four for rolling for to to or going we XX look So four to quarter more a rolling quarters, certainly quarters. it's we speak you XXXX. quarters, like keep And it example, to each at if forward. two added rolling for And And XXXX.

Doug Schenkel

Okay and I know that I I'm in near probably term. multi-cancer X-cancer overstaying to my welcome. couple make encouraging on the to the just questions But program. a launching really you I test sure It's product want the hear get are

this it hand, that may grand other perspective so scheme no is set launched surprising a and quickly small relatively with in data the the be data. things being - of On bit

want make think to think how that So about I'm I sure just you understanding what should this. we

it launch to my not why do the question. more that case because with to didn't data the data the six perspective So stronger work asked the confidence X-cancers, was X-cancers? to related on that's the Is question you three other and cancers? first you were to that So need if the is, first with simply support the first was

of And a lack and and of to data Is The generation possible to type relatively substance How with you because but which of a actually again, establishing quicker. this launch this point. few is now small data, get can Rock. is quarters can can you that set, you just perspective. on that you than perspective the associated conclusion thought? there the would first you are my barrier be apply assays be if that is previously essentially given for And going not more the this to this lower on other that companies great again, good. then a doesn't over hand, Burning data screening is to market generating data third data are one second But that's the multi-cancer of it's thinking structure hand, on it's like But tests at launch, question going is entry are lunch? with good, impact it's adoption to

in ability bit guess actually world be this a established your on to your differentiate my this diminished. would in I So might scientific from paradigm, new concern that be a regulatory new rigor standpoint

great you. your be thoughts those topics. it'd get on to So three Thank

Shannon Chuai

questions. we this over Doug, to team tap over excellent what are about I the or few mean, debated questions decision strategy. exactly. past tried is Shannon. Those our I Yes, this over are and it. within to commercialization your address Those really on weeks

run of all, registration, we do that And believe validation products be about plan, first validation is thinking data. to we on when prospective need a will we start the of parallel. course, rollout than a any also test that study the in added expected. why this exactly prospective along validation is have for X-cancer lower So will previously the we multi-cancer And don't study prospective enter, detection bearish believe still must led that

validation while us assessing will very your in facto thinking won't matches channel about they're whether metrics to hugely probably go validation answered commercialization, trial, expected a post the about, when this these post well, annual actually think response help future start prospective And data, because in generate think because X-cancer with gets encouraging one, have that on product. some the collaborators questions not, then we population those that And that Whether potential which tricky. or sensitivity. the clinical world are trial of However, this your we encouraged other for also from us to about operational checkup received real really be prospective experience sort to customers, validation maybe start also influence - for already, test our you when more population we are very actually, targeted setup.

early wanted in them? to also, well, what of, answer, our know, during want or those sort early of as of can of as level, And to insurance such to the we channel, data we the we gather of again, things from those hospitals are access rates, done mentioned access them knowledge. actually, we to program terms accumulate to commercialization the didn't we monitoring knowledge I already. the And for So - for assess, know like commercialization and to to individual some what an we we companies, program, are then are And the bring reflect wanted wanted the But which individual potential value assess harms? like, these these positive exploratory institutional we during actually in like, - sort we benefits? collaborators kind on specificity. exactly programs, we've exact also for before, of potential know tried closely are So And what them efforts. the some what

when you validation of think your is much the your part those percentage. to So actually rates, it top the prospective assess because false positive cohort, positive specificity about - a is easier

easy world it's to real immediately assess holds this whether out specificity population. So in your

are we closely monitoring that. So

sure from then are to case studies, We from of symptomatic from expect observed the takes have significantly cohort, making the time post study. to are would because what doesn't accurate different it may you And follow the the we actually from patients. up center part control the what compared drop validation very be that estimate have an sensitivity that which facto those

sensitivity the world sure assess whether went two, effort to this not So lot possible findings. plan. are commercialization for through positive a diagnosis we we these these part, then the discussed about the positive your answered questions, to those when I'm estimate that to participants. And path the that thoughts but and for for for I putting we of on follow real one, are also up

Leo Li

comment for some that. There's

to have the and to that to we not result just consumers that in the only in the also, early also even to detection perspective. and perfect do how that the easily think sensitivity the how - service explain think to the by it's education, specificity, and a accept how report consumer in make I operation part for

are to I we program. topics new issues think access these That's started that all why need we early face.

I well. think this just psychology it's product consumer consider that product is science to a each of we need product not a as

Doug Schenkel

additional time. for really the as color, Super all helpful really team helpful always. appreciate all Thank you the

Leo Li

you. Thank

Shannon Chuai

Thank you.

Operator

Thank you.

of question Bank Please next Merrill Our David America Lee comes line Lynch. your ask the question. from from of

David Lee

me team, to management you, the questions. Thank to Great. ask give chance

product. about licensed So your would basically, like you to I in ask

your contribution year, you product? include we that now potential going with number is tech this licensed previously, So the from are This one. to number is revenue be transfer. the dealing top two, million. that in line RMBXXX you maybe And in Does mentioned it know

for besides plan mean, launch there two kind commercialization China. are of a or these in barrier is early also on detection So products I sort their any these tech transfer regulation of products.

is So terms more this? result administration RMBXXX give Thank over of That's can in financial expense. fourth any this on your you you. your administration us color is million, there quarter regulation typically on my questions. expense - And

Leo Li

questions. Thanks, David, for the

in licensed two and Myriad and two what are during quarter initial the on which third is market indication And to - talked big about approved well. a HRD results, as products, first, the is this this serve not partners Shannon our the So indications. pharmaceutical are

Lancet. the validation element had to smaller through is product stage in So over has and on XXXX looking this cohorts gone that data licensed a the is compared have second products early at Chinese adenocarcinomas this published which subjects and

So this well. is already Chinese as by known physicians some

be are And will half products the they these the validations labs transferred the doing two to first by to well. as have that perform we and as So products. in at the transfer, followed tech original be as the well year of make for sure least different

time. will take a these period So, of

to if - any late these revenue contribution year. are So for going likely be this

and have guidance, this new the complete going old to had to terms products note validations. versus products. new we we're who But in process. rollout, we out of break transfer the the visibility are has don't of that the more on that little products, although bit subjects will more be a after And tech So there we'll

So new only these two not are products. the

the So question. that's first for

products the a many will in that NGS the as by other these formats, similar of FDA we been Myriad of indications. the products, products we be question, offer second LDT to the couple two offering based myChoice the that school approved On HRD well, has for currently

about terms among has and physicians. previously already. that the backend of So little spoke DetermaRx bit And its validation marketing data a own in and acceptance we awareness

will be teams So be these indication. - launch for to LDT there are is there existing after which sales our our and driven by will going particular lung offered largest be cancer,

the that's second question. So

increased and G&A, main for one personnel that for The elements line staff. third are the two

can mid front significantly been element is access out increased headcount time, physical our build past capacity space. to studies pretty run XXXX both will offering And our detection headcount, And our significant across building current increase second we building is the been we We programs. time. next recently be personnel, early we expanding and our the have have so back gone number labs. had a team the clinical new as and to expand for which end that large of our we the As same building overall at office, a a we lab and housing functions from have early over new

period So for we we are capacity have issue. glad time that we a that and were solved restraints of in

So the G&A drivers the overall for are line. these main

David Lee

Great, more That's thank questions. Have helpful. no you.

Operator

Thank question go Chen you. Instructions] Please comes next HSBC. [Operator from Our from Tian ahead.

Tian Chen

you, Thank particular evening. questions. good Hello, much very

opening biopsy getting about about routes Chinese more process, give then and your a liquid approval I of the talking with regulators the detail? in some Can discussion remarks progress think talking time us approval. in or for make alternative some bit you you're FDA spend you

Shannon Chuai

thank the Tian, for - take Hi I'll you question.

Tian Chen

This - ahead, go is sorry. about

Shannon Chuai

to I'll So want misunderstanding. okay, might be to there think I try you question? - this address Do

recently the started used no opening a that most Yusheng meant class had on see is we be what very detection dialogue feedbacks. very I We positive it's for dialogue previously on the - in which we new think the completely early and NMPA, but the to with the remark product.

near clear half future paths, regulatory in the of the And the clear are midterm or kind liquid the products current much LSD multi-cancer than or detection the to registration very so we path more situation. early - early well, detection, hopeful being that based the

has to - For registration the for always the always except the liquid-based is structure the there. product similar - than regulatory tissue-based It's the to study concordance is the between which to largely two. do similar versus the is different very concordance, will overall, liquid the tissue But structure we concordance a the than have tissue-based panel. which other products been NGS study, other

products, also course, of the However, first in be the class. liquid-based

Joe activity the companion passed, validation, collaboration. diagnostics, some down will be entering also on mentioned, establishing clinical has now there are we But So typing and the concordance with XX, the starting Page road. unpredicted the study, test as

liquid we're will very we next being approved progress NGS well. So the the having in in as positive - couple liquid that China Hopefully, liquid-based panel first of biopsy on based see years.

Tian Chen

Hi, yeah.

Okay, that's clear now.

the So I are approval detections discussion under process. your discussion is guess - main early multi-cancer those what

Shannon Chuai

Correct.

Tian Chen

Okay.

there's So right, in indicator, at insisting recruitments targeting how that type. the problem barrier, be each my individual clear given because a of has terms understanding also, the the and regulator that's design, will been looking was passed approval you're why multi-cancer at no population main the

they multi-indicator to made on in progress how the been of the - go has testing indicator? individual or insist That's one. indicator's for efficacies? individual each on the So any they Would level out kind the still first

population the type, multiple be the insist vast one control type regulator sufficiently to of given Second to is or will each enough sufficiently populations, the still the for has cancers?

Shannon Chuai

question, first the yes. for Well,

use I having to product idea major the multi-cancers sort multi-cancer intended simultaneously think for that each a the the high it individually. single type, population regulatory population now embraces cancer risk of detection the seeing a on is progress of the of major one instead being on testing - early least applied are we one at

general application. it's So population a on to going be

that's progress. one major So

think, control And the you path. However, benefit measure it's I your early clearer how reasons how is than that's detection justify not harm? to regulatory philosophies could and now thrive our most you far And just time one sort that. the are do than peers, your NMPA. the we with the are we of also becoming How for justification global and - the with much do the reason start key our greater progresses justify Actually, the products, right benefit? more - own That's why rules the from from harm? like your it's and the the dialogue that - such do you or grow and data, over much of

Tian Chen

you Sounds screening rather the so the good, for the on the cancer be on type level benefit levels? early multi-cancer think cost conducted the can individual pool of

Shannon Chuai

designing your wouldn't a the able huge waste course, general be just for cancer study. use differentiate to type. intent population, you be be because to That would population Of would the one those

measure the performance So simultaneously. you multi-cancer Yeah. would on

Tian Chen

this So NMPA now go agreed direction. recognizes and in to

Shannon Chuai

No, we're and agreement saying dialogue. towards saying an having see trend we we're started an reached, not just positive we the conversation active being that

Tian Chen

the to data program Can the to view, point if making questions, can more PMA program, earlier will access loss say because last collect is levels, I of a answer get why question you you or of point for from points. and But your cash I ask just go be early see can that? access on can this property you you say to the real in main on do the I earlier it for breakeven the validated kind just world

Leo Li

I cash. don't the about think that

account. If a the of at you look on have report, financial cash still we lot

world collect So early for issues out any real the purpose main access feedback. in the find is and program potential

and the certain - issues, operational be sensitivity common specificity new. regimen doing to totally population a the will specificity? the and there be people, with be they're For are professional annually example, annual and sorry, how the educate PBV MBV, example, to checkup, cohort without will quite checkups annual like checkup for the how And might different. NPV but also, consumer and to terms sensitivity These - about how advocate customer familiar

So or be PBV. that a have positive great that we a we might think tasks terms the PBV be with result give to example, can might all be problem. XX positive pan-cancer in XX of to know me will half be of PBV a for to and read like, products a real to consumer finally, odd only I any But that that

in all need we think no issues need clinical these a positive to early access trial. the pricing do is and to operation in So to out we program I out find to they as things the need think also results? we than find negative or such less catch issues about and need to - those how

Tian Chen

if so your Got earlier expenses structure, this will secondary access in central-lab be through PML you, guess your any you in program, I it? do

Leo Li

Exactly, this this expenses. be will be will

As not charging for not we're this is - early the access.

to line. hit our So it's going expenses

Tian Chen

Thank for all that's very okay, much. you, Got you me.

Operator

Instructions] you. Thank [Operator

Operator

no questions. further are There Right.

for you today. for we that conference Thank our participating. with conclude So

You disconnect. now may

Yusheng Han	Founder, Chairman and Chief Executive Officer
Shannon Chuai	Chief Operating Officer
Joe Zhang	Chief Technology Officer
Leo Li	Chief Financial Officer
Doug Schenkel	Cowen
David Lee	Bank of America Merrill Lynch
Tian Chen	HSBC

Burning Rock Biotech Limited (BNR) 11 Mar 212020 Q4 Earnings call transcript