Earnings call transcript Q4 2022

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Operator

Before we begin, I’d like to remind you that this conference call contains forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, targets, confidence, 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 market and operating conditions and relate to events that involve known 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

to conference the now over go Please I CEO. speaker your like ahead. would to hand the Han, today, Mr,

Yusheng Han

XXXX Rock. Annual and you, we Conference I'm Thank Burning and CTO, CEO Burning to Yusheng CFO, our Founder have Rock's of and Leo Today, welcome also Han, Zhang; Call. Joe Li.

turn X. we Rock. to I Now there let's Burning are what illustrate Page do. are who some investors hereby with case familiar not In

multi-directions of biopsy, therapy business early and and MRD, services liquid-based started detection, liquid multi-cancer tissue-based selection, pharmas doctors, our and have consumers. providing in products from units, to three XXXX to business we selection including So expand therapy and then

to Page X. Now let's turn

XXXX. will So we in this page, review have of a

our listing profitability-driven For with addition view we been that exchange to And year-on-year - by quarters growth XX%. achieved strong in in and an organization headcount venue Stock completed overall in non-COVID case, the listing have in growth of we optimization. this still And The on XX% delivered London optimized general company, we offering XXXX. completed alternative NASDAQ.

shares a We on believe our that of scenario to case solution fallback provides continued development a facilitate and NASDAQ. significant it this of of in is a as trading listing corporate ADR delisting

Chinese delisted, is also in risk now, the is December getting SEC that that which statement of of latest us. there from for We as no good noted the issuers

growth the channel. innovative providing the is with our we panel NMPA bring market. approved NMPA X And by challenges, by to NMPA second our or selection, driven the COVID products of and therapy This despite diagnostic for by tap capability model. NGS-based approved to achieved demonstrating working weapon genes was XX% better in-hospital a volume And in-hospital

For data colon year initial in terms cancer colon by MRD, clinical lung big and at pancreatic XXXX cancer XXXX, on of XXXX. provided followed We and on ASCO publications at publication. AACR was a readout additional

We this the were brPROPHET, of year, we product lung very personalized our in commercially, volume increasing launched our also and a serving MRD patients publication expected AACR. March good keep additional on And that speed.

value XX over breakthrough Biopharma, on with FDA development for XXX% X and factor to strong new impact published on MRD, of is and another the execution. was for million XXXX strong of contract and And increased product. proof in an as designation revenue Annals standard XXX and growth cancer XX% was a backlog study oversee test RMB it technology journal of granted device Oncology, our

- is almost study. and read-out. PROMISE illustrate early development study subjects, our cancer detection exactly Zhang, study Joe which And which test completed is prospective CTO, The XX of study, PRESCIENT is test X a development cancer more PREDICT PREVENT launched year. X,XXX will and last our ongoing. test is about was And X cancer around which subjects, XX,XXX study,

what Burning shows aim XXXX. turn And Rock page now achieve Page to let's to This X. in

goal is reason goal a The XXXX. XXXX year is that the in The quarter and a is still one number MCD we during in to for So R&D is excluding main development. R&D profitability. XXXX breakeven, set big

what is growth. continued revenue goal second A increase we achieve. want is to healthy The with profitability

on and player in the is MCD will revenue And globally. China I our XXXX outlook at for growth MCD player R&D as to year. the top is number position in The rate said, as third one initial further a main XX%. leading Our goal focus this spend,

four into down me parts. break the let And goals

the personalized MRD operational continue the difficulties model. launch in Due to in-hospital strengthening the And MRD, this install very and by top to method for For MRD, personalized improve hospital. challenging therapy of productivity it installed is selection, hospitals. we'll to sales in

R&D be it and samples volume launch needs QX of And of to be and the model operation future. onco near control engine deal outstanding the MRD MRD our in next can in strong will and start hospitals Rock, baseline a the able of team, Burning brPROPHET bring efforts to since I year. in we tissue impact thanks more the to in-hospital in-house the samples, However, the level. believe more of tissue data will only model an this for to

For to goal its continue growth. is the profitable Biopharma,

PREVENT and MCD With of we'll is biopharma readout over a of MRD an year growth orders, have prospective study, platform the to optimistic half XXXX. study subjects, interim the international in which new business. of of more are second Over we XX,XXX

development the on of the at PREDICT selected test NMPA, continue top building we Also, with and cancer go FDA The PRESCIENT. will in and We NMPA. study pathways regulatory XX commercialization especially are will hospitals.

Let's Page turn financial I care that to our X. status. about know investors

later rate scale to illustrate will this trials And new especially under started, is want brand doing the think significantly clinical even will more trial no page, the big that be registration, are that NMPA burn in Leo news. reduce just I there the will decrease show if MCD, of better I to we years. coming great X If there's effort more a But on CFO, on. rate. Our

trials please? Joe present presentation to to So pass technologies about today, and that's MCD want and and to our I MRD. the of what I talk will Joe,

Joe Zhang

Thanks, Yusheng.

MRD. to going update the and introduce I'm So some MCD regards

Page turn X. Let's to

basically Burning early So Rock's this development. update to an technology is detection regards

of we good to ran the publication early several past X made after of trial detection concept publication technology which actually cancer - the proof - So in years. in last study, is engineering a regards THURDER the basic oncology biomedical recently nature we an of a year,

with part this the the other breakthrough regulatory actually closely working - the very Burning which highlight a breakthrough, FDA Currently, future. we're for approval significant very a us step grant regulatory seeking in for is the we And designation basically And the we so is next for FDA this to early year. Rock. device actually achievement granted got is

to detection roadmap. development So X. this let's talking Burning which slide Basically, we product is previously, a presented program, Page Rock's about the turn early

X can you is which phase. there. a for month, the we detention program this prospective the after being use PREVENT later the last currently, this will interventional running oncology intent see is of study, And the THUNDER update this cancer and we population. called at pretty product, recruitment study we As a oversee. And which so are number published here, The in early probably for readout moment. year first ongoing significant is a And actually

to clinical are stage preparation the study. call study, PREDICT format XX up published in we're to the at actually this yet. PRESCIENT to intensive cancer individuals up meanwhile, MCD for several XX,XXX studies product. we already poster and moment, it And ESMO which And last PROMISE future. in preparation we related regards And year, cancer a There's in cover very in product developing trials, actually, several this actually in - we XX

So like this I lay too it cancer XX, program. What is? cancer mentioned, to - much the And XX there Slide steps repeat just out - I anymore. is X won't cover

to the to so XX. - update. to Residual about Minimal just Page turn And Disease I'm talk going let's talk

And business new several actually the test the about is years. Slide MRD important MRD Burning XX, - one business in utility. Rock talk of of So very past

clinical which kinds already has there's study a lot two trial. of the So prognosis been utility. proven the in of utility, One in is

and actionable will this in direct more see be Another you the left. utility to can important diagnosis try therapy,

And already there some CMS in regards are by coverage States, MRD the other United some utility to products.

own utilizing technology, our for Burning actually all of So those we summarized seeking that's [ph] Burning utilities kind Rock is Slide why XX. brPROPHET, which in call

on leveraged trying as It's tracking to panel the get tracking whole technology. get up prognosis our we the as sequencing XX to sites the to the personalized the is follow-up, brPROPHET sites. to future. the And So utility therapy XX in for guidance and well exome designed trying

like year. anniversaried product this this launching the moment. already launched So at last almost We

the some XX Slide publication achieved. MRG-related about we And current talk

So we trying cancer a we of working currently is to hard basically keeping lot This are product are cancer covers. get indeed. – - very

happen - increase AACR provide month, and published cell lung patient cancer update cancer next will already have can the study. cell this will significantly. in we on non-small that We poster year, in non-small our last number And AACR lung

data ASCO-GI in colorectal are published about it talk point. And this get this there's and monitoring year last but hopefully, And a San one collecting different is the XXXX. in it's that ongoing. readout the initial year, early going actually two this basically, Francisco, we presented in for data, AACR we'll ongoing, provide more another It's we future. already a study to longitudinal currently year And I'm the actively still the been later, study we studies. One very is update. cancer, brief

lung cohort is We so and a well cancer other including proved to study. have also colorectal a And MRD find cancer not ASCO-GI in the year, pancreatic only of mostly some cell pancreatic to being can small demonstrate this which cancer, hard also non-small as other the the cancer. cancer in lot do types, cancer we as

Slide - the XX, basically cohort. next so talking cancer slide, pancreatic about Slide

like we actually, some also after baseline, and collect study - collect observational after X-days is trendy is this follow XX-days - we as recruit we as we and day a surgery well and which So and patient - pre-surgery surgery.

the we XX.XX% here, pre-surgery, there this the can regards sensitivity since - at utility showing ratio assay. can showing you the cancer, of of we this very are existence, showing hard pancreatic prognosis you for which impressive got very survival see - see [ph] And positive and is assay. And the here MRD good of some ctDNA XXX% this very as

the And update so earlier. the another regards is cancer, I XX Slide like colorectal mentioned

actually demonstrate ASCO-GI the And data baseline we a of cohort. the almost lot are like the In see from showing patient XXX now, So here. still this. patients on already XXXX, data initiate Right follow-up. in continuous we we'll collect to working there's we that XXX

the you lot believe the basically, high that demonstrated And very can If specificity, we very which interest, will sensitivity potentially you more a prognosis. with utility generate detail technology along have it read later. than in other high

here. I'm going conclude my So to part

Leo turn you. me our CFO, about to talk financial. Thank Let to

Leo Li

three like Joe. cover I'd Thanks, to topics.

I'll talk XXXX, the me and I'll latest quarter talk XXXX let first of in recap. fourth initial trend quarter First, outlook. about Then about about the the XXXX talk

fourth let's can the go the to fourth stronger quarter see we we that anticipated. previously first, XX, we finished can So then and we to go recap, than quarter Page

be to November, performance, We quarter. XX-something only ended growth year-over-year year quarter about Recall year-over-year. for drop full the a X%, down we that in revenue first in for a back the X% implies which XXXX stronger guided

clinical I'm maintaining we this the achieved further, very bit back revenues triple-digit throughout customers pharma in better anticipated the we up fourth well, for held in slightly a than down XXXX. teens testing that dropped breaking November. rates in And the little testing year-over-year growth quarter, range

lockdown period. to staff And who take we'd tirelessly like the commend COVID to our all this difficult worked during opportunity

out Our our demonstrated much business, carried lockdown Guangzhou the areas in particular, lab China mentality strong our located. of is us in years. by future our by despite staff in the city testing many the and our pretty the overcome We unaffected will growth to challenges help of suffered resilience where believe

recap We performance. XXXX also year like our to full

think XX% likely high revenues testing in by rates year grew end full year-over-year. XXXX Our industry the We growth precision oncology of our this own achieved is the on estimate.

one, new and China's is that dominant down the There the a in this number a segment, the position we're to quarter. in We readouts stronger we investments the talked a into multiyear launched over in about MRD which Number Joe one strength. performance, years driver were three Difficulty] And is is some quarter position. We of and initial area. the that future pillars going only in which the the make March in-hospital believe runway, ended that growth [Technical second have we drove built market product MRD, our

these will third position capabilities the the growth which from We our our continue future drive think product China. in is top-performing the pillars diagnostics and regulatory in our to Service And leading in Pharma the companion benefited segment, portfolio approval years. three

further, profit, again XXXX clinical P&L, likely Now testing which range sensed the performance breaking teens amortization is the and adjusted year-over-year. revenues grew high little by excludes full a the dropped moving XX% which down industry this year-over-year in [ph] on down our noncash our by in we bit end our own I'm of towards year, and estimate. gross depreciation

OpEx lines. the Now to moving down

in OpEx we As as sales dropped All improvement our on calls, earnings continue mentioned quarter deliver fourth efficiency reduction net three OpEx the our as improved we sales and better productivity projects. on on we overhead R&D to in deliver initiatives. focused previous lines - productivity, in reductions focus corporate

pharma can marketing If the and substract profit the line, fourth minus the we November. than the look on closer see testing and XXXX. anticipated And maintaining of for the we're profit you slide in achieved growth we triple-digit very here, at take SG&A, throughout where G&A back that metric that getting adjusted well, held gross line sales so the we're and rates up showing slightly better customers quarter gross we

to to by hit our this like opportunity staff this in to drivers closer breakeven XXXX. anticipate And commend we'd and out we this our some towards And take during quarter metric all breakeven. remarks. laid The was CEO's at behind

our to years. while be R&D are the towards business which going profitability, more commercial units driving multi-cancer than will be We mostly our focused on is previous detection,

in R&D be is our priority expenses So efficiency to summary, number for excluding XXXX. going operating breakeven, and one

during our difficult on our and COVID we Next, I'd the who latest trend, about like present to period. latest worked talk lockdown volumes tirelessly –

is the suffered resilience XX of Guangzhou lab areas particular, city by deck. the testing We much slide believe by China Our in out carried of lockdown despite the our and many located. where the demonstrated in pretty unaffected

see where we trial the digits in as through segment further. a central the but see quarter lab we have a and returned that that And can hit growth year-over-year the compared quarter, can bit February. to we December China, into dropped third We in double ramped COVID dropped fourth latest January breaking month, positive bad the out to

a Regarding growth in January, - December sorry, the the XX to volumes in volume of us of to the quarter, January, overcome year mentality our brought help the drop the strong future our staff given decline which brought effect February, which will combined of months challenges two business, first sharp

We to year X% also performance. our like year-over-year, full XXXX recap

achieved Our So think moderate. XXXX grew year-over-year. the oncology precision [indiscernible] year for rates we quarter to in on it's We full industry think XX% is the high likely prudent of the our first revenues testing own this end by expectations growth

our XXXX And about to talk next, I'd like outlook.

that talked what adjusted XXXX, to breakeven to we is hit financial track. minus during XXXX. have metric, we is about metrics two quarter profit For on Number like the gross some one We SG&A.

number like to continue second, out initially And us. within of we is higher that top And we are of one, objectives, context, guiding two to growth. line deliver priority for And the revenues and in to our XXXX. update quarterly for guidance progress track We'll on XX% a in There increase three next keep that. pillars latest you result, of our were in summit. our

position. dominant believe in-hospital of the that drove a to a is strength, new we that is one, in area. this product about China's market make the talked the to one have is position MRD, readouts which into And we're recap we initial Joe lastly, runway. launched in March. driver And of in – investments number over our and years We the And our segment, growth which going MRD second built the some future multiyear the number

X rate Service our Pharma position And from on the showed which CEO's the benefited we cash third is Page future top-performing and burn segment, product remarks. during which estimates, opening our

balance. X We close cash billion RMB sitting of to are

of we years our in raise all covers and have the that cash balance runway, clinical X assuming sitting on are programs cash capital place. We no

would any not be to capital in So rush do we raise. a

concludes like to And prepared questions, for our remarks. that open We'd please.

Operator

take Instructions] question [Operator will the comes Alexis Please Morgan and you. go line first question ahead. from Thank from the of We Stanley. Yan our

Your line is open.

Alexis Yan

sense selection MRD from maybe get for the much contribution in better that two as of of product early portfolio? us XXXX XX%, the to may be It as existing help from be questions. I therapy context? Hi. is helpful would portfolio? the understand also revenue be MRD regarding XXXX detection much Thank well the as can And how have a you taking would Number of you my growth that target questions. one how

terms for businesses commercial we we detection, the are can marketing the in the few investment, next for – so be track contracting we the of or what new investment? sales how in for also, And of commercial second do these market some question that years? MRD And early education of ROI and assess and terms key example, like hospital milestones is that could

Yusheng Han

Alexis. am Thanks question, for Yusheng. your I

much will three general don't as how early first which our the I contribute - take your can a view let's the give we - you of percentage for we also OncoVue and [ph] parts, clear very So like part cut to that since question, detection. pharma growth. a don't I have of –

OncoVue, the will So still driver. I main the be that - think be

have big that selection know you As we a including of baseline therapy OncoVue, MRD. and

technology completed And will MRD for - into as that. some of that personalized model OncoVue, I within in-hospital QX as installment the we said MRD on impact of in-hospital

that, before driver, with main I And is good, trend also the I that for And especially continue to that but be the will the big and the think driver. pharma, be for the So including selection think the growth, will think OncoVue liquid-based. therapy I think will I tissue-based baseline OncoVue, compared revenue. they main

I - sorry, early expected, hospital them - IIIA And big are be as still early understand that XX of to more do product compared have of know is second think also doctors to prescribe for to detection, be Half question we detection multi-cancer that and multi-cancer with that still answer around need you hospitals. consumers. to them and how But XX is it's commercialization, Class But the to probably installed the number educate your for the used. marketing can - rest to the we in the activities hospitals. cannot

and your are sure our activities III burn answer that we hospitals. Class on energies this Does cost rate marketing achieve. of I exact can since the one growth thing yes, multi-cancer focusing and is controlling that much But question? year rate, early we headcount are be So will we the cannot you the I number deduction good. But of think that give how

Alexis Yan

my you. Yes. That's Thank questions. all

Yusheng Han

you. Thank

Operator

Thank questions. conference concludes today's This call. for participating. you. Thank further you are There no

disconnect. may You now

Burning Rock Biotech Limited (BNR) 28 Mar 232022 Q4 Earnings call transcript