Burning Rock Biotech Announces Q2 2024 Financial Results
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Burning Rock Biotech Reports Second Quarter 2024 Financial Results
Burning Rock Biotech Limited (NASDAQ: BNR and LSE: BNR), a leader in the application of next generation sequencing (NGS) technology in precision oncology, has disclosed its financial results for the quarter ending June 30, 2024.
Business Updates
In recent developments, the company has made notable strides in its business operations:
Therapy Selection
Burning Rock presented significant study results on small-cell lung cancer and colorectal cancer at an industry conference. These studies included vital information on the efficacy and safety of high-dose Almonertinib in patients with untreated EGFR-mutated NSCLC and brain metastases.
Pharma Services
Additionally, a new collaboration was announced with Bayer to develop companion diagnostics (CDx) in the Chinese market, enhancing the company’s reach and capabilities in precision medicine.
Second Quarter 2024 Financial Performance
In the second quarter of 2024, Burning Rock reported total revenues of RMB135.5 million (approximately US$18.7 million), reflecting a 7.3% decline compared to RMB146.3 million for the equivalent period in 2023. This change is primarily due to the company’s ongoing transition from central laboratory testing to more in-hospital testing solutions, despite a notable double-digit growth in the in-hospital segment.
- In-hospital business revenue grew to RMB59.9 million (US$8.2 million), marking an 11.2% increase from RMB53.8 million in Q2 2023, fueled by rising sales volume.
- Central laboratory revenue saw a significant decrease, falling to RMB48.8 million (US$6.7 million), a 26.4% reduction from RMB66.2 million year-over-year, primarily due to fewer tests conducted.
- Pharma research and development service revenue increased slightly to RMB26.9 million (US$3.7 million), a 2.6% rise from RMB26.2 million in 2023, driven by increasing service demands from pharma clients.
Cost of revenues in Q2 2024 was RMB40.1 million (US$5.5 million), down 12.5% from RMB45.8 million in Q2 2023. This decrease is attributed to the reduced costs associated with central laboratory services and lower amortization expenses across all business segments.
The gross profit was reported at RMB95.4 million (US$13.1 million), down 5.0% from RMB100.4 million in the previous year. The gross margin also slightly improved to 70.4% from 68.7% in 2023.
Non-GAAP gross profit, which excludes depreciation and amortization, totaled RMB101.9 million (US$14.0 million), reflecting a 6.8% decline from RMB109.4 million year-on-year, with a corresponding non-GAAP gross margin of 75.2%.
Operating Expenses and Net Loss
Operating expenses decreased to RMB206.7 million (US$28.4 million) for the three-month period, a 12.5% reduction from RMB236.1 million in Q2 2023. This reduction was primarily due to stringent budget controls and personnel reductions aimed at enhancing operational efficiency.
- Research and development expenses plunged 32.2% to RMB65.0 million (US$8.9 million) from RMB95.8 million, largely from workforce adjustments and reduced project expenditures.
- Selling and marketing expenses fell 31.0% to RMB48.9 million (US$6.7 million) from RMB70.8 million due to lowered staffing costs and cuts in conference and travel spending.
- In contrast, general and administrative expenses rose 33.5% to RMB92.8 million (US$12.8 million) from RMB69.5 million, primarily driven by higher share-based compensation expenses.
The company reported a net loss of RMB108.0 million (US$14.9 million) for the second quarter, an improvement from the net loss of RMB131.2 million in the same quarter of 2023.
As of June 30, 2024, Burning Rock reported a strong liquidity position with cash, cash equivalents, restricted cash, and short-term investments totaling RMB533.0 million (US$73.3 million).
About Burning Rock Biotech Limited
Burning Rock Biotech Limited is committed to advancing the field of precision oncology through innovative NGS technology, focusing on therapy selection testing for late-stage cancer patients and cancer early detection, which has progressed into clinical validation stages.
For further information about Burning Rock, inquiries can be directed to their investor relations team via email at IR@brbiotech.com.
Frequently Asked Questions
What are the key financial highlights from Q2 2024?
Burning Rock reported total revenues of RMB135.5 million, which is a 7.3% decline compared to last year. The in-hospital channel showed promising growth, increasing revenue by 11.2%.
How did the transition from central-lab to in-hospital testing affect revenues?
The shift contributed to a decline in central lab revenues, dropping 26.4%, but beneficially increased the in-hospital business, which continued to grow significantly.
What operational efficiencies were implemented?
Burning Rock has enacted budget control measures and reduced headcount to streamline operations and mitigate operating expenses, resulting in a 12.5% decrease in overall operating costs.
What was the net loss for the quarter, and how does it compare to the previous year?
The net loss for Q2 2024 was RMB108.0 million, an improvement over the loss of RMB131.2 million reported in Q2 2023.
How much cash does Burning Rock have on hand?
The company has cash and cash equivalents totaling RMB533.0 million (US$73.3 million) as of the end of June 2024, ensuring a strong liquidity position to support ongoing operations.
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