Burning Rock Biotech Limited (NASDAQ:BNR) Q3 2023 Earnings Call Transcript

Joe Zhang: Thanks, Leo. So I’m going to present a little bit — give you guys an introduction about the pipeline update, majorly focused on the MRD, which is minimal residual disease [indiscernible] disease. So let’s turn to Page 10. So Page 10, basically representing — presenting the Burning Rock MRD clinical publication. So basically, MRD has a lot of utilities. As shown in the picture showing here, basically, it can be done like before the [indiscernible] to look at the baseline ctDNA level. Then also we can do like after you adjust adjuvant therapy to look at treatment effectiveness, all like more commonly going to be use that like a postsurgical after resection to look at landmark MRD to get a prognosis or either some kind of a prediction value on the based on MRD status.

There also could be a lot of treatment effectiveness assessment after the adjuvant therapy and also the longitudinal monitoring for the surveillance. So Burning Rock has a bunch of different kind of publication related to different cancer types, that’s including the non-small cell lung cancer, as well as colorectal cancer, gastric cancer, pancreatic cancer, BTC, biliary tract cancer. So all the publications, most of them are actually shown in the poster format being presented in a different kind of [indiscernible] meeting or clinical meeting happened like within two years. So the major one I just wanted to give you guys a little bit more introduction about is the cancer cell publication, which is related to the non-small cell lung cancer. Let’s turn to Page 11.

So we — the technology we’ve been using actually called brPROPHET, in brief, PROPHET. So basically, it’s based on the whole exon sequencing. We got the tumor whole exon sequencing up to 50 mutation, which is a tumor-specific. Then we designed personalized panel, MRD panel and utilize — use this personalized panel trying to capture a potential ctDNA fragment from the plasma collected from the same patient. Based on the proprietary ultra-deep sequencing and also the proprietary sequence result as well as MRD coding algorithm then we can determine the MRD status of that patient for that kind of — that type — that time point of blood collection. So on the right page, basically showing the analytical performance of this brPROPHET assay. So it’s including the two type of — so on the top right panel, we’ve been talking about [indiscernible] sample diluted down to 8 ppm.

As you can see here, we still can see, out of 50 low size, there’s quite a bit different significant difference compared to the baseline, which is [indiscernible] which is a background cellular. So this give us some kind of confidence showing this asset is sensitive enough to detect very low allele frequency, very rare tumor fraction based on the ctDNA from the patient. On the top right — on bottom-right panel, that showing the quantitative property of this assay, based on the algorithm we used, we can estimate based on the detection capability, as well as the allele frequency of each [indiscernible], we can assess estimate what’s the ctDNA fraction from that patient. As you can see here, this is a contract data, but it definitely gives us a lot of confidence showing the expectation and estimation showing very good correlation.

So based on this technology, we move to Page 12. Basically, we work with a top-tier hospital in Beijing People Hospital, and we published this technology utilization on the non-small cell lung cancer in cancer cell which is a top journal — top-tier journal for translational medicine. As you can see here, so this has been published in October 9. And there’s a couple of highlights. I don’t want to read it one by one, but you can look at it. Mostly it’s just showing the PROPHET outperformed the fixed panel MRD assay in a head-to-head comparison in non-small cell lung cancer. Move to Page 13, basically gave you an overview of this study. So the cohort is that we enrolled about 181 patients of non-small cell lung cancer. But as you can see here, most of them, actually 63% are Stage 1 patient, very early-stage patients after surgery, and also there’s a few Stage 2 and Stage 3.

And at the sampling time is that we basically collect the tumor adjacent paired tissue, normal tissue collected at surgery, and we do the whole exon sequencing on those as well as like we collect the blood sample collect preoperative in three days and 30 days after surgery. And also, we do a follow-up time. So every time when patient go back to see the doctor after like six months or year out, if possible, we collect the follow-up blood sample. And then we use three different kind of approach to look at MRD status. The first one is basically showing on the top right, it’s a whole exon sequencing-based personalized panel design as well as doing this kind of MRD assay, we call brPROPHET assay. In comparison, we’re also using also a fixed kind of target sequencing to do the tumor — either tumor-agnostic or tumor-informed calling to determine the MRD assets, but you can think about it this way.