Burning Rock Dx(US:BNR)2022-11-16 16:41Financial Data and Key Metrics Changes - The company recorded a 22% year-on-year revenue growth in Q3 and a strong rebound of 36% quarter-on-quarter [6] - Revenue grew 19% year-on-year in Q3, outperforming peers in the PCR space, which saw a 16% decline [17] - The company expects a revised full-year growth of 5%, down from the previously anticipated 17% due to recent COVID disruptions [24][22] Business Line Data and Key Metrics Changes - The biopharma segment revenue grew triple digits year-on-year to RMB 15 million, with a backlog increase of 38% year-on-year to RMB 198 million [7] - The in-hospital model volume grew 24% year-on-year, indicating a recovery in the hospital channel [17] - The MRD product volume more than doubled in Q3 compared to Q2, reaching 700 tests [6] Market Data and Key Metrics Changes - The company faced temporary disruptions in Chengdu and other cities due to COVID, but major markets remained stable [16] - The company noted that Guangzhou, a significant market, has seen persistent high case numbers affecting business volumes [23] Company Strategy and Development Direction - The company aims to focus on operating efficiency moving forward, with expectations of significantly reduced cash outflows in 2023 [8][21] - The management highlighted the importance of the in-hospital model for future growth, especially for MRD tests [33] - The company is transitioning towards a more targeted approach in its COVID response strategy, which is expected to facilitate future growth [24] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, noting that the absolute number of COVID cases is likely to persist at high levels, impacting business volumes [24] - The management emphasized the importance of the PROMISE study as a successful proof of concept for their 9-cancer test, which will inform future product development [15][29] Other Important Information - The company recently listed on the London Stock Exchange to enhance its capital market position [6] - A management change was announced, with the COO transitioning to a Chief Science Officer role to focus on product development and regulatory matters [10] Q&A Session Summary Question: Impact of revised guidance on segments - Management indicated that Guangzhou's business remains intact, with less impact on the pharma segment, while the multi-cancer early detection segment faced challenges in Chongqing [28] Question: Key readouts or catalysts after PROMISE study - The management discussed ongoing internal discussions regarding product development strategy following the PROMISE study results, with strong confidence in upcoming studies [29][30] Question: MRD monitoring volumes growth expectations - Management expects continued growth in MRD volumes, particularly as the in-hospital model becomes more established [33] Question: Usage of MRD test in BeiGene collaboration - The collaboration with BeiGene is strategic, focusing on observational studies, with potential future applications in patient treatment strategies [36] Question: Drivers of biopharma contract growth - The revenue is primarily driven by Companion Diagnostics, with increasing interest from multinational companies in MRD investigations [38]