Burning Rock Medical shares rose 20.62%.

In the past year, companies in the tumor precision medicine industry have not had a good time

In the past year, companies in the tumor precision medicine industry have not had a good time

Whether it is an A-share company represented by Aide Bio, or a player led by Burning Stone Bio in the US stock market, the stock price has encountered major challenges

This is related to the general environment, but it is also related to the business bottlenecks of various companies

On August 31, Burning Rock Medicine, the "wind vane" of the tumor precision medicine industry, seemed to let everyone see this possibility:

After announcing its second-quarter earnings report, Burning Rock's shares rose 20.

After announcing its second-quarter earnings report, Burning Rock's shares rose 20.

So, does this mean that the "weather vane" is back on its feet?

/ 01 // 01 // 01 /

Companion diagnostics patient-side business growth is sluggish:

Weak growth of companion diagnostics patient-side business: Weak growth of companion diagnostics patient-side business: Weak growth of companion diagnostics patient-side business:

Encountered "bottleneck" OR because of the epidemic

Encountered a "bottleneck" OR encountered a "bottleneck" because of the epidemic OR encountered a "bottleneck" because of the epidemic OR encountered a "bottleneck" because of the epidemic

On a numerical level, Burning Rock's performance isn't as exciting as its stock price

As shown in the figure below, the total revenue of Burning Rock in the second quarter was 130 million yuan
.
Although the company's revenue still increased year-on-year, the month-on-month data was not optimistic
.
For an industry that has almost no seasonal impact, the month-on-month data is obviously a better reflection of the company's true operating conditions
.

As shown in the figure below, the total revenue of Burning Rock in the second quarter was 130 million yuan
.
Although the company's revenue still increased year-on-year, the month-on-month data was not optimistic
.
For an industry that has almost no seasonal impact, the month-on-month data is obviously a better reflection of the company's true operating conditions
.

Burning Rock's total revenue includes patient-side revenue (mainly companion diagnostics) and pharmaceutical company service revenue
.
Among them, patient-side revenue has been the company's main growth engine
.
At the beginning of its listing, Burning Rock Medicine was proud to have developed a two-wheel-drive growth model of "in-hospital + out-of-hospital"
.

Burning Rock's total revenue includes patient-side revenue (mainly companion diagnostics) and pharmaceutical company service revenue
.
Among them, patient-side revenue has been the company's main growth engine
.
At the beginning of its listing, Burning Rock Medicine was proud to have developed a two-wheel-drive growth model of "in-hospital + out-of-hospital"
.

Looking at it carefully, Burning Rock's patient-side revenue performance is not amazing
.
As shown in the figure below, whether it is in-hospital or out-of-hospital business, it seems to have encountered a certain bottleneck
.

Looking at it carefully, Burning Rock's patient-side revenue performance is not amazing
.
As shown in the figure below, whether it is in-hospital or out-of-hospital business, it seems to have encountered a certain bottleneck
.

Of course, the poor performance in the first half of the year is related to the epidemic to some extent
.
The outbreak of epidemics in cities densely populated with core tumor hospitals such as Beijing and Shanghai will inevitably affect the process of patient admission and sample delivery
.

Of course, the poor performance in the first half of the year is related to the epidemic to some extent
.
The outbreak of epidemics in cities densely populated with core tumor hospitals such as Beijing and Shanghai will inevitably affect the process of patient admission and sample delivery
.

Burning Rock Medicine also stated that in areas other than Beijing and Shanghai, the number of tests in the second quarter exceeded 60% year-on-year
.
But as mentioned above, for cancer precision medicine companies, the chain data is more objective
.

Burning Rock Medicine also stated that in areas other than Beijing and Shanghai, the number of tests in the second quarter exceeded 60% year-on-year
.
But as mentioned above, for cancer precision medicine companies, the chain data is more objective
.

If combined with the data since the third quarter of last year, the growth rate of Burning Rock Medicine's various businesses has actually slowed down
.
Therefore, even without the impact of the epidemic, whether Burning Rock's patient-side companion diagnostic business can continue to grow is obviously debatable
.

If combined with the data since the third quarter of last year, the growth rate of Burning Rock Medicine's various businesses has actually slowed down
.
Therefore, even without the impact of the epidemic, whether Burning Rock's patient-side companion diagnostic business can continue to grow is obviously debatable
.

At least for now, the company's expectations for the future are not the companion diagnostic business on the patient side
.

At least for now, the company's expectations for the future are not the companion diagnostic business on the patient side
.

/ 02 /

/ 02 // 02 // 02 /

The troika of the future:

The Troika of the Future: The Troika of the Future: The Troika of the Future:

MRD, early screening and pharmaceutical company services

MRD, early screening and pharmaceutical service MRD, early screening and pharmaceutical service MRD, early screening and pharmaceutical service

According to Burning Rock's second quarter financial report, the company is looking forward to the troika in the future: early screening, MRD and pharmaceutical company services
.

According to Burning Rock's second quarter financial report, the company is looking forward to the troika in the future: early screening, MRD and pharmaceutical company services
.

It is also understandable that whether it is early screening, MRD (minor residual disease), or pharmaceutical company services, the domestic market is still in its "initial stage"
.

It is also understandable that whether it is early screening, MRD (minor residual disease), or pharmaceutical company services, the domestic market is still in its "initial stage"
.

Let’s first look at the early screening business
.
At present, only Nuohui Health's colorectal cancer early screening product, Chang Weiqing, has been approved for marketing in China, and there are still many fields to be developed
.
The research and development path chosen by Burning Rock Medicine is "pan-cancer species", which can theoretically provide a new option
.

Let’s first look at the early screening business
.
At present, only Nuohui Health's colorectal cancer early screening product, Chang Weiqing, has been approved for marketing in China, and there are still many fields to be developed
.
The research and development path chosen by Burning Rock Medicine is "pan-cancer species", which can theoretically provide a new option
.

Let's look at the MRD test
.
MRD is not a new concept.
It has been widely used in hematological tumors before, and it can be regarded as a just-needed product
.
Although the commercialization prospect of MRD has been confirmed in hematological tumors, solid tumors are still a desert previously limited by technical factors
.
Today, the emergence of liquid biopsy technology has ushered in development opportunities for MRD detection in solid tumors
.

Let's look at the MRD test
.
MRD is not a new concept.
It has been widely used in hematological tumors before, and it can be regarded as a just-needed product
.
Although the commercialization prospect of MRD has been confirmed in hematological tumors, solid tumors are still a desert previously limited by technical factors
.
Today, the emergence of liquid biopsy technology has ushered in development opportunities for MRD detection in solid tumors
.

Burning Rock Medicine is also aiming at this opportunity, focusing on the field of solid tumors.
In March this year, the company's MRD product for lung cancer has been launched, and it plans to expand to other tumors such as colorectal cancer
.

Burning Rock Medicine is also aiming at this opportunity, focusing on the field of solid tumors.
In March this year, the company's MRD product for lung cancer has been launched, and it plans to expand to other tumors such as colorectal cancer
.

Pharmaceutical company services, mainly to provide pharmaceutical companies with research and development services for "accompanying diagnostic + MRD testing" products
.
Whether it is companion diagnosis or MRD detection, it is still in the rising stage from scratch, and it is naturally a blue ocean
.

Pharmaceutical company services, mainly to provide pharmaceutical companies with research and development services for "accompanying diagnostic + MRD testing" products
.
Whether it is companion diagnosis or MRD detection, it is still in the rising stage from scratch, and it is naturally a blue ocean
.

Also, the barriers to competition for the three major businesses look higher
.
Take early screening as an example, the development of pan-cancer early screening products requires a huge data base as support, and not everyone has this ability
.

Also, the barriers to competition for the three major businesses look higher
.
Take early screening as an example, the development of pan-cancer early screening products requires a huge data base as support, and not everyone has this ability
.

The service business of pharmaceutical companies also has the characteristics of high barriers to entry
.
For tumor precision medicine players to gain the hearts of pharmaceutical companies, they not only need to show their strength on the product side, but also need to highlight their clinical and certification capabilities
.
Whether it is R&D, clinical, or obtaining a certificate, it takes time to accumulate, so the strong are easy to become strong
.

The service business of pharmaceutical companies also has the characteristics of high barriers to entry
.
For tumor precision medicine players to gain the hearts of pharmaceutical companies, they not only need to show their strength on the product side, but also need to highlight their clinical and certification capabilities
.
Whether it is R&D, clinical, or obtaining a certificate, it takes time to accumulate, so the strong are easy to become strong
.

The entry market is in its infancy and has barriers to entry, which is undoubtedly the capital market's favorite story
.
If it can stand out in various business fields, Burning Rock Medicine is bound to change the capital market perception
.

The entry market is in its infancy and has barriers to entry, which is undoubtedly the capital market's favorite story
.
If it can stand out in various business fields, Burning Rock Medicine is bound to change the capital market perception
.

/ 03 /

/ 03 // 03 // 03 /

The cash in the account is enough to burn for 1 year.

The cash in the account is enough to burn for 1 year, the cash in the account is enough to burn for 1 year, the cash in the account is enough to burn for 1 year,

Burning Rock Medicine Needs to Prove Itself ASAP

Burning Rock Medicine needs to prove itself as soon as possible Burning Rock Medicine needs to prove itself as soon as possible

Burning Rock Medicine has begun the battle to correct its name
.

Burning Rock Medicine has begun the battle to correct its name
.

At present, among the company's troika, MRD testing products and pharmaceutical company services have entered the commercialization stage
.
Among them, the service income of pharmaceutical companies has begun to take shape
.
As shown in the figure below, the revenue in the second quarter has reached 18.
07 million yuan
.

At present, among the company's troika, MRD testing products and pharmaceutical company services have entered the commercialization stage
.
Among them, the service income of pharmaceutical companies has begun to take shape
.
As shown in the figure below, the revenue in the second quarter has reached 18.
07 million yuan
.

According to the financial report, the demand for the company's MRD testing products is also growing rapidly, but the specific revenue scale has not been disclosed
.
As for the follow-up performance, we still need to observe the company's future financial reports
.

According to the financial report, the demand for the company's MRD testing products is also growing rapidly, but the specific revenue scale has not been disclosed
.
As for the follow-up performance, we still need to observe the company's future financial reports
.

As for Burning Rock Medicine's early screening products, it will take time for the large-scale commercialization stage
.
In the first half of this year, Burning Rock Medicine's large-scale prospective clinical study on pan-cancer has just begun to enroll patients
.

As for Burning Rock Medicine's early screening products, it will take time for the large-scale commercialization stage
.
In the first half of this year, Burning Rock Medicine's large-scale prospective clinical study on pan-cancer has just begun to enroll patients
.

To a certain extent, whether the "troika" business can progress smoothly will be the key to whether Burning Rock Medicine can continue to lead the tumor precision medicine industry
.

To a certain extent, whether the "troika" business can progress smoothly will be the key to whether Burning Rock Medicine can continue to lead the tumor precision medicine industry
.

After all, the company's net loss in the second quarter was 265 million yuan, burning 2.
9 million every day
.
Up to now, the company's cash reserves on account are 1.
15 billion yuan, which can be burned for about 1 year
.

After all, the company's net loss in the second quarter was 265 million yuan, burning 2.
9 million every day
.
Up to now, the company's cash reserves on account are 1.
15 billion yuan, which can be burned for about 1 year
.

For biotech companies that are listed but not yet profitable, refinancing is key to supporting the business
.
The stock price is the core factor that determines whether the refinancing can be successful
.

For biotech companies that are listed but not yet profitable, refinancing is key to supporting the business
.
The stock price is the core factor that determines whether the refinancing can be successful
.

In other words, Burning Rock Medicine can only continue to prove itself at the business level as much as possible, so that the market can see confidence, so as to complete the refinancing and ensure that it can go further
.

In other words, Burning Rock Medicine can only continue to prove itself at the business level as much as possible, so that the market can see confidence, so as to complete the refinancing and ensure that it can go further
.

So, can the "troika" make Burning Rock get its wish?

So, can the "troika" make Burning Rock get its wish?