China-based medtech firm Burning Rock Ltd (NASDAQ: BNR) has released its financial results for the third quarter of 2024. The company reported Q3 revenues of RMB 128.6 million (USD 18.3 million), marking a year-on-year (YOY) increase of 0.8%. Research and development (R&D) expenses saw a significant decline of 41.3% YOY, amounting to RMB 49.2 million (USD 7 million).
Net Loss Narrows and Cash Holdings Increase
For the first three quarters, Burning Rock’s net loss was RMB 35.7 million (USD 5.1 million), a significant improvement compared to the same period in 2023, which saw a loss of RMB 175 million. The total amount of cash, cash equivalents, restricted cash, and short-term investments held by the company stood at RMB 498.2 million (USD 71 million).
Business Segment Performance
In terms of business segments, the in-hospital business revenue for the three months ended September 30, 2024, reached RMB 63.8 million (USD 9.1 million), up 17.0% YOY, driven by an increase in sales volume. The central laboratory business recorded revenue of RMB 40 million (USD 5.7 million), a decrease of 25.2% YOY, indicating the company’s strategic shift towards in-hospital testing. The pharma research and development services segment contributed RMB 24.9 million (USD 3.5 million) in revenue, an increase of 27.1% YOY.
Companion Diagnostic Approval and Collaboration
During the period, a significant milestone was achieved with the approval of the companion diagnostic (CDx) for EGFR exon 20 insertion mutation (exon20ins) for sunvozertinib by the National Medical Products Administration (NMPA) of China. This CDx was developed through a collaboration between Burning Rock and Dizal, highlighting the company’s commitment to advancing personalized medicine.
