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

But of course, in the future, I think, very likely MRD could be used as the patient’s action strategy for some of their trials to enrich the patients who can benefit more from adjuvant therapy. But I honestly don’t think it’s going to be any near future where it can be used as a surrogate endpoint. I think that’s probably too much of a jump for the trial design. But that would be also very interesting to watch out in the future.

Max Masucci: Yeah, I agree. We need a bit more data before we incorporate it for that purpose. And then final question for me, the biopharma contract — have been growing at a really rapid pace, pretty consistently. And so it would be great to hear some of the underlying drivers of the acceleration, biopharma contract wins, what percentage are coming from MRD versus therapy selection, any sort of trends you’re seeing that are driving that continued strength in the biopharma contract wins?

Yusheng Han: So again, I can answer that question. So mainly, now the revenue is still driven mainly by Companion Diagnostics. And — but a good trend is that we can see that multinational companies — more and more focused on MRD. So if you look at it, local pharma or local biotech, they are still working on the Companion Diagnostics. But big global pharmas are doing more and more MRD investigation and a collaboration with Burning Rock . And so I think that the trend in the near term would not change. But there’s still more some challenging that in Q2 and Q3, the capital market is not good. And there will be some impact to the biopharma especially the small biotech and that is important. There’s also an important resource, I mean revenue resource for Burning Rock. And I think that will be a little bit impact to the revenue or backlog in the future.

Max Masucci: Okay, great. Thanks for taking my questions.

Operator: Thank you. There are no further questions. That does conclude the conference for today. Thank you for participating. You may now all disconnect. Have a nice day.