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| Statement |
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| So we're very pleased with that result |
| In MRD, we have a strong clinical validation publications, with the MEDAL study for lung cancer published in cancer cell, which is a big milestone for our MRD study |
| For biopharma, despite of the struggling time of capital market for biopharmas, we still have a strong growth, showing our systematic value of Burning Rock with revenue growth up 31% year-on-year |
| 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 |
| And as we think industry volume normalizes down the road, our operating margin should improve, and we hope to get back to the positive non-GAAP territory in the quarters down the road |
| So we're very pleased with the progress and the outlook that we have in the sector |
| And I just want to reiterate our strong cash position relative to our cash outflow on this page |
| Revenues grew 31% on a year-over-year basis |
| As you can see here, the separation will be even better |
| [Technical Difficulty] continued to grow, and it grew 10% year-over-year, which is rare in the diagnostics industry or at least in our specialty industry in China |
| Then moving on, we can see that pharma services still had a strong growth quarter in the third quarter |
| Then we hope to be on a better track going forward |
| We were even slightly positive in the second quarter |
| So as we look to complete our spend on early cancer detection and as we move towards better profitability, then we'll look to improve our operating cash outflows, and we make sure that we're sitting on ample cash balance |
| So measured on a non-GAAP basis, gross profits minus SG&A, I mean, we hit a positive territory in the second quarter, but we did [Technical Difficulty] third quarter |
| And we're looking to turn this to a positive number again at some quarter down the road |
| Our backlog continues to grow, particularly from multinational companies, and Yusheng gave an example of a recent win in his remarks |
| So in summary, basically, this paper published in cancer cell gave us a very good example showing how the personalized [indiscernible] MRD assay can give a very good predates value on the non-small cell lung cancer, even Stage 1 and also 2 and 3 |
| We're sitting on ample cash balance |
| That just gives us a lot of confidence also reflect a lot of other publications, continuous surveillance require multiple time point collection, usually give us better separation of the disease-free survival |
| And in terms of the therapy selection, despite of the industry disruption, we still continue to growth in the – for the in-hospital model, which means that in-hospital revenues has a 10% year-on-year growth |
| But as you can see here the orange color, which is representing the PROPHET assay, so it outperformed the tumor-agnostic panel sequencing as well as our tumor-informed fixed panel sequencing |
| If you're MRD-negative, the patient showing that even for onetime point -- landmark time point to check and follow-up up to like 1,200 days, this show very way higher disease-free survival compared to MRD-positive patient, which is showing the HR ratio reached to basically for timepoint C the HR other ratio reached to 16.4, which is a pretty significant difference |
| So I think we had a temporary dip in our operating margins for the third quarter and that should turn for the better in the quarters down the road |
| And we have done some [indiscernible] in the recent time period to make sure that we are on the right track |
| And Stage 3, you've got the highest sensitivity -- detection sensitivity |
| And if there's an MRD-positive signal showing any time of the blood collection, we deem as MRD-positive |
| So I think the events in the third quarter only accelerated that and that moved us even more on the right track in terms of moving the mainstream of our businesses towards the in-hospital segment |
| And that's why, ideally, if your assay is perfect, you should be able to see every patient blood will get like close to a very high percentage of detection sensitivity |
| And as you can see here in the panel B showing on the right page, as you can see here, for all three MRD-positive patient sample, the ctDNA [indiscernible] showing the highest one, which is shown in the box plot with the red background |
| Statement |
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| Overall, because of the industry impact and the drop in central lab, our revenue was down 17% on a year-over-year basis |
| As Yusheng mentioned earlier, the whole China health care industry had a disruption during the quarter |
| So if you look at central lab, that was down -- heavily down 41% on a year-over-year basis in the third quarter |
| And you can see in the three quarters so far to this year, we had an outflow of about RMB249 million, so significantly below the outflow guidance that we set out at the start of this year |
| Well, in Q3, actually, there is some industry disruption |
| So in Q3, it's a little bit our -- impacted by this event and the profit dropped to the negative part, which is a negative RMB8.9 million |
| So our operating loss did widened a little bit in the third quarter compared to the second quarter and we are aware of that |
| You can see that the central lab model has been impacted negative 31%, while for in-hospital model is still growing in terms of volume |
| And we're very cautious of this trend and we are managing our expense or our cost base appropriately according to the new industry setup |
| And you can see the net operating cash outflow this quarter has dropped to 70 -- RMB47 million per quarter |
| And part that has been impacted was the central lab model |
| You know that even most of the medical conferences or meetings would hold anomaly |
| But if only the -- if you look at the orange color, which means on the right with 30 patient -- preoperative patient only showing a positive in brPROPHET assay, but the ctDNA fraction is way lower, it's actually two magnitude lower than the all three positive patients |
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