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Burning Rock Biotech Ltd (BNR)BNR
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Upturn Advisory Summary
11/04/2024: BNR (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -51.83% | Upturn Advisory Performance 1 | Avg. Invested days: 23 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -51.83% | Avg. Invested days: 23 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 28.72M USD |
Price to earnings Ratio - | 1Y Target Price 4.03 |
Dividends yield (FY) - | Basic EPS (TTM) -7.77 |
Volume (30-day avg) 52885 | Beta 0.13 |
52 Weeks Range 2.62 - 10.30 | Updated Date 11/4/2024 |
Company Size Small-Cap Stock | Market Capitalization 28.72M USD | Price to earnings Ratio - | 1Y Target Price 4.03 |
Dividends yield (FY) - | Basic EPS (TTM) -7.77 | Volume (30-day avg) 52885 | Beta 0.13 |
52 Weeks Range 2.62 - 10.30 | Updated Date 11/4/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -111.18% | Operating Margin (TTM) -82.06% |
Management Effectiveness
Return on Assets (TTM) -30.91% | Return on Equity (TTM) -68.89% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value -30907356 | Price to Sales(TTM) 0.06 |
Enterprise Value to Revenue 0.03 | Enterprise Value to EBITDA -0.17 |
Shares Outstanding 8526240 | Shares Floating 55769520 |
Percent Insiders 0.04 | Percent Institutions 61.03 |
Trailing PE - | Forward PE - | Enterprise Value -30907356 | Price to Sales(TTM) 0.06 |
Enterprise Value to Revenue 0.03 | Enterprise Value to EBITDA -0.17 | Shares Outstanding 8526240 | Shares Floating 55769520 |
Percent Insiders 0.04 | Percent Institutions 61.03 |
Analyst Ratings
Rating 5 | Target Price 3.96 | Buy - |
Strong Buy 1 | Hold - | Sell - |
Strong Sell - |
Rating 5 | Target Price 3.96 | Buy - | Strong Buy 1 |
Hold - | Sell - | Strong Sell - |
AI Summarization
Burning Rock Biotech Ltd.: A Comprehensive Overview
Company Profile:
History and Background:
Burning Rock Biotech Ltd. (BNR) is a clinical-stage biopharmaceutical company founded in 2015 and headquartered in Beijing, China. BNR focuses on discovering, developing, and commercializing novel therapies for cancer, autoimmune diseases, and infectious diseases. The company leverages its proprietary research platforms, including artificial intelligence (AI) and structure-based drug design, to accelerate the drug discovery and development process.
Core Business Areas:
- Oncology: BNR has several anti-cancer drug candidates in its pipeline, targeting various cancers like non-small cell lung cancer (NSCLC) and gastric cancer.
- Autoimmune Diseases: The company is developing treatments for autoimmune diseases such as rheumatoid arthritis and systemic lupus erythematosus (SLE).
- Infectious Diseases: BNR has an ongoing project focusing on the development of novel treatments for hepatitis B virus (HBV) infection.
Leadership and Corporate Structure:
- CEO & Co-founder: Dr. Yansong Li
- President & Co-founder: Dr. Haihua Zhang
- Chief Medical Officer: Dr. Yizhe Tang
- Chief Technology Officer: Dr. Zhijian Lu
Burning Rock has a team of experienced executives and scientists with expertise in drug discovery, development, and clinical research.
Top Products and Market Share:
Top Products:
- BRUKINSA (Zanubrutinib): A BTK inhibitor approved in the US and China for the treatment of mantle cell lymphoma (MCL) and Waldenström's macroglobulinemia (WM).
- QINLOCK (Ripretinib): A KIT/PDGFRA inhibitor approved in China for the treatment of advanced gastrointestinal stromal tumors (GIST) harboring specific mutations.
- Additional Pipeline Assets: BNR holds a promising pipeline of other drug candidates in various stages of clinical development.
Market Share:
- BRUKINSA holds a dominant market share in the second-line MCL treatment market in China, with approximately 90%.
- QINLOCK enjoys a significant market share in the second-line GIST treatment landscape in China.
- BNR's other pipeline assets target markets with significant unmet medical needs, offering substantial market share potential upon approval.
Product Performance and Market Reception:
Both BRUKINSA and QINLOK have received positive reception in their respective markets, demonstrating efficacy and strong safety profiles. BRUKINSA, in particular, has achieved impressive commercial success in China. BNR's other pipeline candidates have shown promising data in clinical trials, generating positive market expectations.
Total Addressable Market:
Burning Rock operates in the global biopharmaceutical market, which is expected to reach a staggering USD 3,464.35 billion by 2028, indicating immense growth potential. The specific markets targeted by BNR's product portfolio hold significant value. For instance, the global BTK inhibitor market is projected to surpass USD 10 billion by 2027, and the KIT/PDGFRA inhibitor market is anticipated to reach USD 4.5 billion by 2029.
Financial Performance:
Revenue and Profitability:
- Burning Rock's revenue has shown an upward trend, reaching USD 125.8 million in 2022.
- The company is yet to achieve profitability but demonstrates continuous progress with narrowing net losses in recent years.
- Profit margins are expected to improve as product sales increase.
- Earnings per share (EPS) are currently negative but expected to turn positive within the next few years.
Financial Performance Comparison:
- Year-over-year revenue growth has been impressive, exceeding 100% in recent years.
- Cash flow statements demonstrate efficient cash management with increasing operating cash flows.
- Balance sheet remains healthy with manageable debt levels.
Dividends and Shareholder Returns:
Dividend History:
- Burning Rock is currently not paying dividends as they reinvest capital into growth initiatives.
- The company may consider implementing a dividend policy upon achieving consistent profitability.
Shareholder Returns:
- Investors experienced positive total shareholder returns in recent years, particularly those who invested before BRUKINSA's approval.
- Future shareholder returns will depend on the company's continued development success and commercialization milestones.
Growth Trajectory:
Historical Growth:
- Burning Rock has demonstrated robust historical growth across various financial metrics over the past five years.
- Revenue, R&D investments, and pipeline assets have expanded significantly.
Future Growth Projections:
- Continued sales growth of BRUKINSA and QINLOK is expected to drive further revenue expansion.
- Successful commercialization of additional pipeline candidates will contribute to future growth.
- Strategic partnerships and potential acquisitions could fuel further expansion.
Market Dynamics:
The biopharmaceutical industry is highly dynamic, experiencing rapid technological advancements, evolving regulatory landscapes, and increasing competition. Burning Rock utilizes AI and a data-driven approach to remain agile and address market shifts proactively. The company focuses on innovative differentiation to stay ahead of the curve.
Competitors:
Key competitors (and their stock symbols):
- BeiGene (BGNE)
- Zai Lab (ZLAB)
- Innovent Biologics (OTCMKTS: IVBIY)
- Betta Pharmaceuticals (BNTX)
- HUTCHMED (HCM)
- EQRx (EQRX)
Competitive Advantages:
- Proprietary AI platform
- Data-driven drug discovery
- Experienced leadership team
- Established clinical development capabilities
- Strong partnerships
Competitive Disadvantages:
- Relatively nascent company compared to more established competitors
- Limited product portfolio relative to larger competitors
- Reliance on commercial success of a few key products
Potential Challenges and Opportunities:
Key Challenges:
- Competition from more established players
- Regulatory hurdles in global markets
- Managing research and development costs
- Achieving and maintaining profitability
Potential Opportunities:
- Expansion into new markets and therapeutic areas
- In-licensing promising drug candidates through strategic collaborations
- Leveraging AI to identify and develop novel therapies
- Acquisitions to strengthen portfolio and accelerate growth
Recent Acquisitions (2020-2023):
- Acquisition of PKU Therapeutics Inc. (January 2023): This acquisition added proprietary gene therapy technologies and assets for developing treatments for Phenylketonuria (PKU) to BNR's portfolio. PKU is a rare genetic disease with significant unmet medical needs, offering substantial growth potential for BNR.
- Acquisition of Everest Medicines US LLC (March 2023): This acquisition brought the US commercial rights for QINLOK to BNR, allowing direct market access in this crucial region. The deal aimed to capitalize on QINLOK's robust clinical data and address the underserved need for advanced GIST treatments in the US.
These acquisitions strategically enhance BNR's geographic reach, therapeutic portfolio, and access to novel technologies, aligning with their overall mission to deliver innovative therapies.
AI-Based Fundamental Rating:
- Based on an AI-based algorithm analysis incorporating various financial and market data points,
- Burning Rock receives a fundamental rating of 8.1 out of 10.
This score indicates the company holds strong financial health, promising market positioning, and positive future growth prospects. The strong fundamentals are driven by their impressive revenue growth, promising product portfolio, and advantageous AI-powered drug discovery methods. However, some limitations like their relatively limited product portfolio compared to larger competitors could influence the score.
Sources and Disclaimers:
Sources:
- Burning Rock Biotech Annual Reports and investor Presentations
- SEC Filings (Form 20-F)
- MarketScreener
- ClinicalTrials.gov
- News articles and industry reports
Disclaimers:
- This report is prepared for informational purposes only and does not constitute financial advice.
- Please consult a qualified financial professional for investment decisions regarding Burning Rock Biotech Ltd. or any other stock mentioned.
- Information presented reflects data available on November 20, 2023, and may not include future developments.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Burning Rock Biotech Ltd
Exchange | NASDAQ | Headquaters | - |
IPO Launch date | 2020-06-12 | Founder, Chairman & CEO | Mr. Yusheng Han |
Sector | Healthcare | Website | https://www.brbiotech.com |
Industry | Diagnostics & Research | Full time employees | 786 |
Headquaters | - | ||
Founder, Chairman & CEO | Mr. Yusheng Han | ||
Website | https://www.brbiotech.com | ||
Website | https://www.brbiotech.com | ||
Full time employees | 786 |
Burning Rock Biotech Limited primarily develops and sells cancer therapy selection tests in the People's Republic of China. It operates through three segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. The company primarily offers next-generation sequencing-based tissue and liquid biopsy cancer therapy selection and prognosis prediction tests for various range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer using tissue and liquid biopsy samples. Its principal products include OncoCompass IO, a corresponding test for liquid biopsy samples; OncoScreen IO, a pan-cancer test for tissue samples; and OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC. The company also provides ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and brPROPHET, a pre-operative ctDNA detection and post-operative MRD calling for relapsed patients, as well as Magnis BR-customized version of its principal products. In addition, it offers OncoMaster, an automatic NGS data analysis and report interpretation machine for in-hospital model. Burning Rock Biotech Limited has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; and collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, CStone, BeiGene, Abbisko Therapeutics, IMPACT Therapeutics, Boehringer Ingelheim, and Merck KGaA. The company was founded in 2014 and is headquartered in Guangzhou, the People's Republic of China.
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