Burning Rock Biotech Limited (NASDAQ:BNR) Q3 2022 Earnings Call Transcript

Yusheng Han: I will say that we think that MRD will continue to grow. But I think that — I cannot tell the exact forecast growth percentage but I will say that, in China, the main business in the future will be the in hospital model. And we are trying our best to make the MRD test available put in hospital model, because MRD test it needs to have a tissue first. And hospitals now are getting more and more stringent about sending samples out of the hospital. So I’ve seen that by so next year if we successfully make the test available in the hospital, we’re going to see much bigger growth. In terms of the cancer type, I will ask Shannon to say something about that.

Dr. Shaokun Chuai: Sure, first of all, on the cancer type on distribution about 60% of our current tests come from lung cancer, and about 30% from colon cancer and the other scattered among the other cancer types. And then, for the first question, I’d also like to add something that actually in the — I think in previous calls we were asked similar questions. And I think we still held very similar views as before. Now that we have entered the business for a while we have even stronger confidence that for one MRD market is still in its very, very early baby stage in China. The future is actually very promising. And the second, more importantly, the growth curve for MRD is probably not like constantly exponential or something, it’s actually step wise, because for the first wave of growth is when the MRD markets first enter — the MRD products first entered the market, which has been the past year or so.

And then the second big wave would come when the utility — actually the evidence for utility grows in both the lung cancer and colorectal cancer. And we can see that there have been trials, clinical trials, interventional clinical trials in China, just starting. So in the next couple of years we would expect interventional type of utility coming out from those trials. And once those are established, we firmly believe that the market will have its next even bigger wave of growth. And the other dimension is as Yusheng just mentioned, the in hospital model we believe will be the main channel. And the trend of compliance and regulation have been very, very clear and even more so during the COVID years. So once we have the MRD platform running in the hospital, we will be more ready to embrace the next wave of growth with MRD market.

Max Masucci: That’s fantastic. And then a second question related to the BeiGene collaboration. I would just be curious to hear how your MRD test is being used in the clinical trial, wondering if it’s being used to guide or accelerate clinical trial enrollment, or if it’s being used to identify patients likely to benefit from more aggressive treatment after surgery. So, that would be the therapy escalation type application or is cfDNA status in the test being used as a surrogate endpoint for disease free survival?

Dr. Shaokun Chuai: Okay, I can try to answer that question. So first of all, due to the characteristic of the collaboration, we probably cannot review too many exact details of the trials. But what we can — I can say is that the BeiGene collaboration actually is sort of a strategic collaboration. So it’s not a one or two specific trials. It’s actually — BeiGene actually spent a lot of time doing research and also testing MRD products across many different testing companies like us. And then they selected our brPROPHET as the strategic sort of partner moving into the — guided or MRD as biomarker for their clinical trials. And so far, the trials or the existing trials are mostly observational, meaning that the MRD is only an observational biomarker embedded in the clinical studies, and both BeiGene and the doctors are very interested in seeing MRD data to be embedded in there already going on, already running trials.