Second Quarter 2020 Highlights
- Revenues of
RMB107.0 million (US$15.1 million ) for the three months endedJune 30, 2020 , representing a 26.1% increase over the corresponding period in 2019. - Key publications:
- BENEFIT biomarker study (with AstraZeneca) published in
Journal of Thoracic Oncology 1 - Blood-based MSI validation published in
Journal of Molecular Diagnostics 2 - NSCLC liquid-biopsy real-world validation (COMPASS) published in
Translational Lung Cancer Research 3 - Clinical validation and genetic landscape studies on multiple cancer types including breast cancer,4 lymphoma,5 etc.
- BENEFIT biomarker study (with AstraZeneca) published in
- Entered into collaboration with Illumina on developing IVD kit solutions on the NextSeq 550Dx system, building on the two companies’ successful collaboration back in 2015 on the MiSeq Dx system that led to the first NMPA (
National Medical Products Administration ) approved NGS panel for theChina market. - Entered into collaboration with
CStone Pharmaceuticals (2616.HK) on CDx development for pralsetinib. - Progressing on the training and validation of the Company’s 6-cancer test, which builds on the Company’s 3-cancer test demonstrated in
January 2020 , with improved assay and bioinformatics. - Launched the PREDICT (Pan-CanceR Early DetectIon ProjeCT) study, a prospective, multi-center study that is expected to enroll 14,000 patients in
China , to develop and validate the Company’s pan-cancer early detection test. - Completed initial public offering and concurrent private placement, with an aggregate offering size of
US$281.2 million (giving effect to the full exercise of the over-allotment option).
“We appreciate existing and new shareholders’ valuable support towards our IPO in June, the largest IPO by a molecular diagnostics company from
Second Quarter 2020 Financial Results
Revenues were
- Revenue generated from central laboratory business was
RMB74.6 million (US$10.6 million ) for the three months endedJune 30, 2020 , representing a 17.7% increase fromRMB63.4 million for the same period in 2019, primarily attributable to resumed volume growth of the Company’s central laboratory business. This reversed the 37% year-over-year decreasing trend during the first quarter. Number of patients tested in the central laboratory channel increased by 19.9% to 7,252 for the three months endedJune 30, 2020 from 6,047 for the same period in 2019. - Revenue generated from in-hospital business was
RMB27.6 million (US$3.9 million ) for the three months endedJune 30, 2020 , representing a 69.0% increase fromRMB16.3 million for the same period in 2019, driven by resumed kit revenue growth of existing contracted hospitals and ramp-up of newly contracted hospitals. This reversed the 36% year-over-year decreasing trend during the first quarter. Number of contracted partner hospitals in the in-hospital channel increased to 24 as ofJune 30, 2020 from 21 as ofMarch 31, 2020 and 19 as ofDecember 31, 2019 . - Revenue generated from pharma research and development services was
RMB4.8 million (US$0.6 million ) for the three months endedJune 30, 2020 , representing a 6.2% decrease fromRMB5.1 million for the same period in 2019.
Cost of revenues was
Gross profit was
Operating expenses were
- Research and development expenses were
RMB71.2 million (US$10.1 million ) for the three months endedJune 30, 2020 , representing an 103.4% increase fromRMB35.0 million for the same period in 2019, primarily due to an increase in share-based compensation expenses for options granted to research and development personnel. - Selling and marketing expenses were
RMB38.0 million (US$5.4 million ) for the three months endedJune 30, 2020 , representing an 8.8% increase fromRMB34.9 million for the same period in 2019. - General and administrative expenses were
RMB42.2 million (US$5.9 million ) for the three months endedJune 30, 2020 , representing an 105.1% increase fromRMB20.6 million for the same period in 2019, primarily due to (i) an increase in staff cost, which was in line with the continued growth of the Company’s business, and (ii) expenses related to the Company’s initial public offering.
Net loss was
Cash, cash equivalents and restricted cash were
2020 Financial Guidance
Assuming no significant resurgence of the COVID pandemic in
Conference Call Information
Burning Rock will host a conference call to discuss the second quarter 2020 financial results at
Details of the conference call are as follows:
International: | +65 67135090 |
18665194004 | |
08082346646 | |
+852 30186771 | |
China Mobile: | 4006208038 |
China Landline: | 8008190121 |
Conference ID: | 4765946 |
A replay of the conference call will be available for two weeks (dial-in number: +61 2 8199 0299; same conference ID as shown above).
About Burning Rock
For more information about Burning Rock, please visit: www.brbiotech.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
_____________________________
1 Refined Stratification Based on Baseline Concomitant Mutations and Longitudinal circulating tumor DNA Monitoring in Advanced EGFR-mutant Lung Adenocarcinoma under Gefitinib Treatment. Accepted,
2 Detection of Microsatellite Instability from Circulating Tumor DNA by Targeted Deep Sequencing.
3 Circulating tumor DNA clearance predicts prognosis across treatment regimen in a large real-world longitudinally monitored advanced non-small cell lung cancer cohort.
4 Characterizations of Cancer Gene Mutations in Chinese Metastatic Breast Cancer Patients. Frontiers in Oncology.
5 Molecular profiling of Chinese R-CHOP treated DLBCL patients: identifying a high-risk subgroup.
Selected Operating Data
Three months ended | ||||||
2019 | 2019 | 2019 | 2019 | 2020 | 2020 | |
Central Laboratory Channel: | ||||||
Number of patients tested | 5,336 | 6,047 | 6,769 | 7,576 | 4,680 | 7,252 |
Number of ordering physicians(1) | 984 | 1,059 | 1,155 | 1,222 | 810 | 1,175 |
Number of ordering hospitals(2) | 249 | 265 | 281 | 304 | 232 | 284 |
______________
(1) | Represents physicians who on average order at least one test from us every month during a relevant period in the central laboratory channel. |
(2) | Represents hospitals whose residing physicians who on average order at least one test from us every month during a relevant period in the central laboratory channel. |
As of | ||||||
2019 | 2019 | 2019 | 2019 | 2020 | 2020 | |
In-hospital Channel: | ||||||
Pipeline partner hospitals(1) | 17 | 20 | 21 | 21 | 23 | 23 |
Contracted partner hospitals(2) | 14 | 15 | 19 | 19 | 21 | 24 |
Total number of partner hospitals | 31 | 35 | 40 | 40 | 44 | 47 |
_______________
(1) | Refers to hospitals that are in the process of establishing in-hospital laboratories, laboratory equipment procurement or installation, staff training or pilot testing using the Company’s products. |
(2) | Refers to hospitals that have entered into contracts to purchase the Company’s products for use on a recurring basis in their respective in-hospital laboratories the Company helped them establish. Kit revenue is generated from contracted hospitals. |
Selected Financial Data
For three months ended | ||||||
Revenues | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 |
(RMB in thousands) | ||||||
Central laboratory channel | 72,807 | 63,394 | 69,304 | 70,749 | 46,141 | 74,607 |
In-hospital channel | 26,557 | 16,329 | 30,704 | 14,088 | 17,123 | 27,588 |
Pharma research and development channel | 5,101 | 5,090 | 3,716 | 3,838 | 4,065 | 4,776 |
Total revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 |
For three months ended | ||||||
Gross profit | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 |
(RMB in thousands) | ||||||
Central laboratory channel | 54,910 | 46,122 | 50,113 | 51,420 | 32,434 | 56,556 |
In-hospital channel | 19,870 | 12,571 | 25,412 | 319 | 10,126 | 19,269 |
Pharma research and development channel | 3,332 | 3,366 | 2,662 | 3,237 | 2,224 | 2,573 |
Total gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 |
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for share and per share data)
For the three months ended | ||||||||||||||
2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | ||||||||
RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||
Revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 | 15,141 | |||||||
Cost of revenues | (26,353 | ) | (22,754 | ) | (25,537 | ) | (33,699 | ) | (22,545 | ) | (28,573 | ) | (4,044 | ) |
Gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 | 11,097 | |||||||
Operating expenses: | ||||||||||||||
Research and development expenses | (31,427 | ) | (34,992 | ) | (38,278 | ) | (52,238 | ) | (40,016 | ) | (71,176 | ) | (10,074 | ) |
Selling and marketing expenses | (26,690 | ) | (34,929 | ) | (42,606 | ) | (49,109 | ) | (29,815 | ) | (37,992 | ) | (5,377 | ) |
General and administrative expenses | (31,565 | ) | (20,614 | ) | (30,866 | ) | (49,112 | ) | (34,295 | ) | (42,272 | ) | (5,983 | ) |
Total operating expenses | (89,682 | ) | (90,535 | ) | (111,750 | ) | (150,459 | ) | (104,126 | ) | (151,440 | ) | (21,434 | ) |
Loss from operations | (11,570 | ) | (28,476 | ) | (33,563 | ) | (95,483 | ) | (59,342 | ) | (73,042 | ) | (10,337 | ) |
Interest income | 128 | 3,806 | 3,686 | 3,541 | 3,985 | 44 | 6 | |||||||
Interest expense | (4,210 | ) | (1,826 | ) | (1,650 | ) | (1,303 | ) | (1,178 | ) | 1,939 | 274 | ||
Other (expense) income, net | (176 | ) | (329 | ) | (37 | ) | (341 | ) | (151 | ) | 122 | 17 | ||
Foreign exchange (loss) gain, net | (101 | ) | 1,142 | 800 | (355 | ) | 611 | (118 | ) | (17 | ) | |||
Change in fair value of warrant liability | 64 | (347 | ) | (1,403 | ) | (1,153 | ) | 3,503 | - | - | ||||
Loss before income tax | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (10,057 | ) |
Income tax expenses | - | - | - | - | - | - | ||||||||
Net loss | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (10,057 | ) |
Net loss attributable to Burning Rock Biotech Limited’s shareholders | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (10,057 | ) |
Accretion of convertible preferred shares | (50,296 | ) | (41,770 | ) | (33,772 | ) | (39,173 | ) | (26,288 | ) | (38,400 | ) | (5,435 | ) |
Net loss attributable to ordinary shareholders | (66,161 | ) | (67,800 | ) | (65,939 | ) | (134,267 | ) | (78,860 | ) | (109,455 | ) | (15,492 | ) |
Loss per share: | ||||||||||||||
Basic and diluted | (2.86 | ) | (2.93 | ) | (2.85 | ) | (5.49 | ) | (3.15 | ) | (2.68 | ) | (0.38 | ) |
Weighted average shares outstanding used in loss per share computation: | ||||||||||||||
Basic and diluted | 23,167,232 | 23,167,232 | 23,167,232 | 24,437,444 | 25,031,575 | 40,786,167 | 40,786,167 | |||||||
Other comprehensive (loss) income, net of tax of nil: | ||||||||||||||
Foreign currency translation adjustments | (278 | ) | (14,288 | ) | 45,317 | (6,647 | ) | 11,422 | (2,336 | ) | (331 | ) | ||
Total comprehensive loss | (16,143 | ) | (40,318 | ) | 13,150 | (101,741 | ) | (41,150 | ) | (73,391 | ) | (10,388 | ) | |
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders | (16,143 | ) | (40,318 | ) | 13,150 | (101,741 | ) | (41,150 | ) | (73,391 | ) | (10,388 | ) |
For the six months ended | ||||||
2019 | 2020 | 2020 | ||||
RMB | RMB | US$ | ||||
Revenues | 189,278 | 174,300 | 24,670 | |||
Cost of revenues | (49,107 | ) | (51,118 | ) | (7,235 | ) |
Gross profit | 140,171 | 123,182 | 17,435 | |||
Operating expenses: | ||||||
Research and development expenses | (66,419 | ) | (111,192 | ) | (15,738 | ) |
Selling and marketing expenses | (61,619 | ) | (67,807 | ) | (9,597 | ) |
General and administrative expenses | (52,179 | ) | (76,567 | ) | (10,837 | ) |
Total operating expenses | (180,217 | ) | (255,566 | ) | (36,172 | ) |
Loss from operations | (40,046 | ) | (132,384 | ) | (18,737 | ) |
Interest income | 3,934 | 4,029 | 570 | |||
Interest expense | (6,036 | ) | 761 | 108 | ||
Other expense, net | (505 | ) | (29 | ) | (4 | ) |
Foreign exchange gain, net | 1,041 | 493 | 70 | |||
Change in fair value of warrant liability | (283 | ) | 3,503 | 496 | ||
Loss before income tax | (41,895 | ) | (123,627 | ) | (17,497 | ) |
Income tax expenses | - | - | - | |||
Net loss | (41,895 | ) | (123,627 | ) | (17,497 | ) |
Net loss attributable to Burning Rock Biotech Limited’s shareholders | (41,895 | ) | (123,627 | ) | (17,497 | ) |
Accretion of convertible preferred shares | (92,066 | ) | (64,688 | ) | (9,156 | ) |
Net loss attributable to ordinary shareholders | (133,961 | ) | (188,315 | ) | (26,653 | ) |
Loss per share: | ||||||
Basic and diluted | (5.78 | ) | (5.73 | ) | (0.81 | ) |
Weighted average shares outstanding used in loss per share computation: | ||||||
Basic and diluted | 23,167,232 | 32,865,350 | 32,865,350 | |||
Other comprehensive (loss) income, net of tax of nil: | ||||||
Foreign currency translation adjustments | (14,566 | ) | 9,086 | 1,286 | ||
Total comprehensive loss | (56,461 | ) | (114,541 | ) | (16,211 | ) |
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders | (56,461 | ) | (114,541 | ) | (16,211 | ) |
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
As of December 31, 2019 | As of June 30, 2020 | ||
RMB | RMB | US$ | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 94,235 | 2,565,973 | 363,190 |
Restricted cash | 4,009 | 263 | 37 |
Short-term investment | 313,988 | - | - |
Accounts receivable | 88,822 | 83,120 | 11,765 |
Contract assets | 909 | 18,076 | 2,558 |
Amounts due from related parties | 74,368 | - | - |
Inventories | 58,116 | 67,375 | 9,536 |
Prepayments and other current assets | 72,340 | 58,633 | 8,301 |
Total current assets | 706,787 | 2,793,440 | 395,387 |
Non-current assets: | |||
Equity method investment | 1,790 | 1,764 | 250 |
Long-term investment | 38,369 | 38,937 | 5,511 |
Property and equipment, net | 89,314 | 90,711 | 12,839 |
Intangible assets, net | 343 | 239 | 34 |
Other non-current assets | 10,954 | 16,536 | 2,341 |
Total non-current assets | 140,770 | 148,187 | 20,975 |
TOTAL ASSETS | 847,557 | 2,941,627 | 416,362 |
Unaudited Condensed Consolidated Balance Sheets (Continued)
(in thousands)
As of December 31, 2019 | As of June 30, 2020 | As of June 30, 2020 | ||||
RMB | RMB | US$ | ||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | 12,348 | 26,741 | 3,785 | |||
Deferred revenue | 49,539 | 57,643 | 8,159 | |||
Capital lease obligations, current | 4,893 | 5,157 | 730 | |||
Accrued liabilities and other current liabilities | 54,059 | 102,603 | 14,523 | |||
Customer deposits | 4,104 | 15,631 | 2,212 | |||
Short-term borrowing | 2,370 | 2,370 | 335 | |||
Current portion of long-term borrowings | 37,129 | 14,035 | 1,987 | |||
Total current liabilities | 164,442 | 224,180 | 31,731 | |||
Non-current liabilities: | ||||||
Deferred government grants | 991 | 263 | 37 | |||
Capital lease obligations | 4,816 | 2,169 | 307 | |||
Long-term borrowings | 18,266 | 32,178 | 4,555 | |||
Warrant liability | 23,503 | - | - | |||
Total non-current liabilities | 47,576 | 34,610 | 4,899 | |||
TOTAL LIABILITIES | 212,018 | 258,790 | 36,630 | |||
Mezzanine equity: | ||||||
Series A convertible preferred shares | 186,991 | - | - | |||
Series B convertible preferred shares | 466,983 | - | - | |||
Series C convertible preferred shares | 873,059 | - | - | |||
Total mezzanine equity | 1,527,033 | - | - | |||
Shareholders’ (deficit) equity: | ||||||
Ordinary shares | 31 | - | - | |||
Class A ordinary shares | - | 114 | 17 | |||
Class B ordinary shares | - | 21 | 3 | |||
Additional paid-in capital | 45,640 | 3,798,869 | 537,695 | |||
Accumulated deficits | (946,464 | ) | (1,134,552 | ) | (160,585 | ) |
Accumulated other comprehensive income | 9,299 | 18,385 | 2,602 | |||
Total shareholders’ (deficit) equity | (891,494 | ) | 2,682,837 | 379,732 | ||
TOTAL LIABILITIES, MEZZANIE EQUITY AND SHAREHOLDERS’ (DEFICIT) EQUITY | 847,557 | 2,941,627 | 416,362 |
Unaudited Condensed Statements of Cash Flow
(in thousands)
For the three months ended | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net cash (used in) generated from operating activities | (54,992 | ) | 61,124 | 8,652 | ||
Net cash (used in) generated from investing activities | (168,462 | ) | 296,102 | 41,910 | ||
Net cash generated from financing activities | 3,075 | 1,845,953 | 261,278 | |||
Effect of exchange rate on cash, cash equivalents and restricted cash | (1,748 | ) | (1,487 | ) | (211 | ) |
Net (decrease) increase cash, cash equivalents and restricted cash | (222,127 | ) | 2,201,692 | 311,629 | ||
Cash, cash equivalents and restricted cash at the beginning of period | 407,867 | 364,544 | 51,598 | |||
Cash, cash equivalents and restricted cash at the end of period | 185,740 | 2,566,236 | 363,227 |
Contact: minying.cheng@brbiotech.com
Source:
2020 GlobeNewswire, Inc., source