NEW YORK – Burning Rock Biotech said Tuesday that its revenues for the fourth quarter of 2022 were down approximately 4 percent year over year, driven by what it said were drops in its in-house and test kit sales due to a late-year COVID-19 resurgence in China.
For the three months ended Dec. 31, the Guangzhou, China-based precision oncology and cancer early detection firm reported total revenues of RMB 142.2 million ($20.6 million) compared to RMB 147.3 million in Q4 2021.
Revenue from Burning Rock's central laboratory business was RMB 72.0 million, down 16 percent from RMB 86.0 million in the same period last year. According to the company, this drop was primarily due to the resurgence of the COVID-19 pandemic in the region.
The company's in-hospital test revenue was down 18 percent at RMB 42.5 million compared to RMB 51.9 million in Q4 2021, again a reflection of pandemic pressures. However, revenues from pharma research and development services nearly tripled to RMB 27.7 million, from RMB 9.5 million in the prior-year quarter.
The company's Q4 R&D expenses were down about 11 percent year-over-year at RMB 100.8 million compared to RMB 112.7 million a year ago. Its SG&A spending was RMB 217.9 million, down about 11 percent from RMB 244.8 million.
Burning Rock's net loss for the quarter was RMB 216.2 million, or RMB 2.11 per share, compared to RMB 251.1 million, or RMB 2.40 per share in the same period last year.
The firm ended 2022 with cash, cash equivalents, restricted cash, and short-term investments of RMB 925.3 million.
For the full year, Burning Rock reported total revenues of RMB 563.2 million, up 11 percent from RMB 507.9 million in 2021.
Its central lab testing revenue was nearly flat year over year at RMB 314.8 million compared to RMB 319.4 million, while its in-hospital earnings bumped up 6 percent to RMB 175.3 million from RMB 165.1 million.
The firm's 2022 pharma services revenue more than tripled to RMB 73.2 million from RMB 23.4 million in 2021.
Burning Rock's full-year R&D costs were up almost 15 percent at RMB 421.9 million compared to RMB 367.9 million for 2021, reflecting growing spending on early cancer detection research. Its 2022 SG&A expenses were RMB 938.6 million, up about 18 percent from RMB 793.4 million.
The company reported a full-year net loss of RMB 971.2 million, or RMB 9.35 per share, compared to RMB 796.7 million, or RMB 7.65 per share, in 2021.
The company said it expects its full-year 2023 revenues to be approximately 20 percent higher than 2022 revenues.