Burning Rock Biotech (NASDAQ:BNR)
In Wednesday afternoon trade, shares of Burning Rock Biotech (NASDAQ:BNR), a Chinese pharmaceutical company, increased 17.7% to US$3.83 after the company maintained its FY 2022 sales target despite a major impact from COVID-19 restrictions.
It is important to note that BNR stock had been rising prior to today’s earnings announcements, and shares were expected to close in the black for a fifth straight day.
BNR announced Q2 GAAP EPS of -$0.37 earlier today, below forecasts by $0.01. Its $19.5 million in revenue fell short of forecasts by $2.94 million.
Burning Rock Biotech reported that revenue from its in-hospital operations fell 15.6% year over year, primarily as a result of sharp drops in testing volume in Shanghai as a result of COVID lockdowns and, to a lesser extent, in Beijing.
However, according to BNR, the in-hospital business outside of Shanghai and Beijing, new products, and pharma service revenue have all demonstrated “great growth momentum.”
The company kept its RMB 620 million (US$88.9 million) revenue forecast for FY 2022.
Financials as reported revenue from Burning Rock Biotech was RMB78.6 million (US$11.7 million) for the 3 months ending on June 30, 2022, a 1.8% reduction from RMB80.0 million (US$11.6 million) for a similar period in 2021. Growth from recently announced products partially offset the negative impact of Covid. Sequentially, new product introductions were the primary cause of the central laboratory’s 5.9% sequential revenue growth when compared to the first quarter of 2022.
Revenue from the in-hospital business was RMB34.2 million (US$5.1 million), for the three months ending June 30, 2022. This is a 15.6% decrease from RMB40.5 million (US$5.88 million) when compared to the same period in 2021.
This decline was primarily caused by sharp drops in testing volume in Shanghai because of the Covid-19 lockdown and, to a lesser extent, drops in testing volume in Beijing; other regions outside of Shanghai and Beijing demonstrated strong growth.
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