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IPO Update: Burning Rock Biotech Bets On U.S. IPO

Jun. 08, 2020 4:29 PM ETBurning Rock Biotech Limited (BNR)


  • Burning Rock Biotech has filed proposed terms for an IPO in the U.S.
  • The firm performs cancer screening and provides therapy selection services in China.
  • BNR has been negatively impacted, perhaps temporarily, by the Covid19 pandemic; still, the IPO appears expensive, so I'll be watching from the sidelines.
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Quick Take

Burning Rock Biotech (NASDAQ:BNR) has filed to raise $196 million from the sale of American Depositary Shares, according to an amended registration statement.

The company provides a variety of cancer screening and therapy decision support services in China.

BNR’s revenue trajectory has been temporarily attenuated, but even upon resumption I believe the IPO’s price is excessive, so I'll watch the IPO forom the sidelines.

Company & Technology

Guangzhou, China-based Burning Rock was founded to develop a proprietary cancer screening and therapy selection system utilizing tissue and liquid biopsies, assay biochemistry, genetic databases and bioinformatics to provide decision support services to oncologists in China.

Management is headed by founder, Chairman and CEO Mr. Yusheng Han, who has been with the firm since and was previously general manager at BioTek Instruments and product specialist at Gene Company Limited.

The firm says that it is 'China's largest provider of NGS-based cancer therapy selection tests while building relationships with 4,162 physicians from 602 hospitals across China.'

Management claims that it has a 17.5% market share in terms of the number of patients tested in 2019 through its central lab which has accounted for a majority of its revenue to-date.

The company also offers hospitals a turn-key, in-hospital model for those hospitals that prefer to perform testing 'on their own in a standardized manner.'

Investors in the firm have invested at least $260.3 million and include Quantum Boundary Holdings, Northern Light Venture Capital, Sequoia Capital China, CMB International, LYFE Capital Stone, Crest Top Developments and 'an entity affiliated with GIC.'

Customer Acquisition

The firm markets its services to hospitals and biopharmaceutical research firms via in-house direct sales and marketing teams.

Selling & Marketing expenses as a percentage of total revenue have fluctuated as revenues have increased, as the figures below indicate:

Selling & Marketing

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This article was written by

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