NEW YORK – Chinese precision oncology firm Burning Rock Biotech reported on Tuesday that its first quarter 2022 revenues were up 27 percent year over year.
The firm reported total revenues of RMB 135.5 million ($21.4 million) for the three months ended March 31 compared to RMB 106.6 million in the same period of 2021.
Revenue generated from its central laboratory business was down a fraction of 1 percent at RMB 74.2 million compared to RMB 74.6 million.
In contrast, Burning Rock's in-hospital revenues jumped 69 percent to RMB 49 million from RMB 29.0 million in Q1 2021. The firm's pharma research and development services revenues totaled RMB 12.4 million, quadruple the RMB 3.1 million it saw in the same period of 2021.
During a conference call with investors, Burning Rock CEO Yusheng Han said that the company saw 42 percent overall test volume growth quarter over quarter, with in-hospital volume up 83 percent.
Highlighting Burning Rock's advantage as a first mover in the in-hospital testing market, he said that the company's "10 years of effort have really started to [translate to] market growth in the past few quarters."
This lead position is also helping as the firm as it pushes forward into new areas of testing, including minimal residual disease and cancer early detection. Although its MRD assay has only been available since March, Han said the company has been encouraged by the uptake it has seen over the last few months.
Burning Rock's net loss for the quarter was RMB 261.4 million, or RMB 2.50 per share, compared to RMB 171.4 million, or RMB 1.65 per share, in the same period last year.
The company reported R&D expenses of RMB 119.5 million, up more than 50 percent year over year from RMB 77.4 million, reflecting higher research and development staff costs as the firm grew its headcount. Selling and marketing expenses rose approximately 35 percent to RMB 230.9 million from RMB 171.4 million in Q1 2021.
Ending the quarter with RMB 199.7 million in cash and cash equivalents, RMB 1.4 million in restricted cash, and RMB 10 million in short-term investments, the firm reiterated its full-year 2022 revenue guidance of approximately RMB 620 million, implying a 22 percent growth over full-year 2021, assuming dissipating impacts from COVID-19 as the year progresses.