Burning Rock Biotech Ltd. Sponsored ADR Class A(BNR.US): Trading flat for 2 months finally sees "five consecutive gains", with stock price rising over 60% driven by profit expectations.

On October 21st, Burning Rock Biotech Ltd. Sponsored ADR Class A (BNR.US) officially released a recent academic conference poster collection, sharing the research results announced by the company at international academic conferences such as ECP 2025, MAP 2025, and ESMO 2025 this year, focusing mainly on DNA/RNA combined testing and low abundance circulating tumor DNA (ctDNA) detection technology. As a result, the secondary market responded positively. It was observed that on October 21st, Burning Rock Biotech Ltd. Sponsored ADR Class A stock price, which had surged by 8.21% on the previous trading day, surged again by 16.67%, and after minor increases on October 22nd and 23rd, it surged by 24.33% on October 24th, marking a "five-day rise" and a cumulative increase in stock price of 62.31% within that period. In fact, going back to July and August of this year, at that time Burning Rock Biotech Ltd. Sponsored ADR Class A's stock price surged significantly by 41.41% and 35.96% on July 23rd and August 18th respectively, without any major positive news to support it. At that time, the judgment was that "the market was speculating on the company's expectation of turning losses into profits." With recent positive developments surrounding Burning Rock Biotech Ltd. Sponsored ADR Class A, the likelihood of the company turning losses into profits seems to be increasing. This year on September 8th, Burning Rock Biotech Ltd. Sponsored ADR Class A released its financial report for the second quarter of 2025. The report showed that the company achieved a revenue of 149 million yuan in the current period, an increase of 10% year-on-year and 12% quarter-on-quarter; the gross margin improved to 72.8%, compared to 70.4% in the same period last year, an increase of 2.4%; and the net loss dramatically narrowed from 108 million yuan in the same period last year to 9.7 million yuan. Thanks to continued cost control measures, Burning Rock Biotech Ltd. Sponsored ADR Class A's profitability has improved in recent years. For example, in the second quarter of 2025, Burning Rock Biotech Ltd. Sponsored ADR Class A has achieved profitability for six consecutive quarters (Non-GAAP GP-SG&A), showing a continuous upward trend. Looking at the profitability situation in the second quarter of 2025, under the cost control strategy, the company's net loss has narrowed significantly by 91% to just 9.7 million yuan. If the current trend of narrowing net losses is maintained, the prospect of turning losses into profits for Burning Rock Biotech Ltd. Sponsored ADR Class A seems to be within reach. This would undoubtedly be a significant milestone for the company. Furthermore, recent favorable news has added another important factor to the expectation of the company turning losses into profits. According to the report presented by Burning Rock Biotech Ltd. Sponsored ADR Class A at recent international academic conferences, testing for rare ctDNA mutations in the blood is an important tool for cancer diagnosis and treatment, but is often challenging due to technical noise and biological complexity, especially when the tumor content is low. In order to develop a targeted sequencing technology suitable for low ctDNA scenarios, Burning Rock Biotech Ltd. Sponsored ADR Class A, in collaboration with AstraZeneca PLC Sponsored ADR, has developed and verified a ctDNA detection product (OncoCompass Plus Prime) based on ultra-deep sequencing and machine learning to improve the accuracy and reliability of mutation detection in low tumor burden situations. The research results showed that OncoCompass Plus Prime demonstrated high repeatability and consistency. The method achieved a median detection limit of 0.25% with a false positive rate of 1.1*107 at a low cfDNA input level (20ng), which was highly consistent with the validated NGS testing method (positive concordance rates for SNV and Indel were 87.8% (95% CI: 84.3-90.7%) and 94.0% (95% CI: 85.4-98.4%), respectively, and negative concordance rates were both >99.9% (95% CI: 99.9-100%)). It is clear that Burning Rock Biotech Ltd. Sponsored ADR Class A has deepened its research cooperation with AstraZeneca PLC Sponsored ADR in the field of cancer diagnostics, laying a foundation for future commercial cooperation between the two parties. It is worth mentioning that on September 24th this year, Burning Rock Biotech Ltd. Sponsored ADR Class A announced a joint venture with Riken Genesis. Burning Rock Biotech Ltd. Sponsored ADR Class A's OncoGuide OncoScreen Plus CDx system has obtained manufacturing and sales approval from Japan's Ministry of Health, Labour, and Welfare (MHLW) as a companion diagnostic product for AstraZeneca PLC Sponsored ADR's AKT inhibitor Truqap (capivasertib). This test is intended to guide the decision of using Truqap in combination with fulvestrant for adult HR-positive, HER2-negative advanced breast cancer patients after disease progression on endocrine therapy, and when the tumor carries one or more mutations in the PIK3CA, AKT1, or PTEN genes. Burning Rock Biotech Ltd. Sponsored ADR Class A's CDx system consists of the OncoGuide OncoScreen Plus CDx test kit and accompanying analysis program, designed to be used with next-generation sequencers to detect mutations in the PIK3CA, AKT1, and PTEN genes. After the product was approved, Burning Rock Biotech Ltd. Sponsored ADR Class A quickly began the product's local medical insurance access process in Japan. Referring to the previous Japanese medical insurance access process for Amoy Diagnostics' PCR-11, the product approved by Burning Rock Biotech Ltd. Sponsored ADR Class A is expected to enter the Japanese medical insurance system in the first half of next year. The approval from Japan's Pharmaceuticals and Medical Devices Agency (PMDA) is a "key" for the product to obtain National Health Insurance (NHI) reimbursement eligibility in Japan. Once a product is approved by the PMDA, the manufacturer can apply to the MHLW to be included in the NHI price list. Compared to other Asia-Pacific markets, Japan's CDx approval and reimbursement processes are closely aligned, with relatively short timelines, hence potentially bringing significant time and revenue advantages to companies. For example, in 2019, two NGS large panel products (FoundationOne CDx and OncoGuide NCC Oncopanel) were first included in Japan's medical insurance, with prices as high as 560,000 yen (approximately $5,200). For Burning Rock Biotech Ltd. Sponsored ADR Class A, the company's choice to target the hot market of breast cancer and use the relatively complex NGS large panel product (OncoGuide OncoScreen Plus) in collaboration with AstraZeneca PLC Sponsored ADR, backed by the authority of Japan's PMDA, has completed a high-profile market entry, which is expected to help the company continue to expand in the Japanese market, potentially becoming an important step towards successfully turning losses into profits for Burning Rock Biotech Ltd. Sponsored ADR Class A. Behind the "five-day rise" in stock price of over 60% In fact, the recent surge in Burning Rock Biotech Ltd. Sponsored ADR Class A's stock price in October reminds investors of the market trend that occurred in June and July earlier this year. On July 23rd, Burning Rock Biotech Ltd. Sponsored ADR Class A's stock price soared by 41.42% in a single day, with an intra-day increase of nearly 60%. This broke the previous record of a single-day stock price increase of 25.12% on November 27th last year, with the highest stock price breaking through the previous high to reach $9.48, setting a new high for the stock price in nearly 18 months. It can be seen that on July 23rd, the trading volume of Burning Rock Biotech Ltd. Sponsored ADR Class A reached a record 588,700 shares traded in a single day this year. However, afterwards, Burning Rock Biotech Ltd. Sponsored ADR Class A quickly returned to its average low trading volume pace: within 5 trading days after the surge, the daily trading volume dropped to below 10,000 shares. On July 30th, with a daily trading volume of only 9,887 shares, Burning Rock Biotech Ltd. Sponsored ADR Class A ultimately surged by 11.36%, showing a strong control over the capital by the main players. Prior to July 30th, Burning Rock Biotech Ltd. Sponsored ADR Class A had experienced three consecutive declines, resulting in a 30.59% drop in stock price. However, despite this rapid decline, the trading volume did not increase further, indicating a consistent reluctance among retail investors to sell. Therefore, if the main players wanted to further wash out chips, they could only do so by raising the stock price, which led to a significant surge of 35.96% on August 18th. However, even on that day, the trading volume was only 314,600 shares, with most retail investors maintaining a high level of consistency. Subsequently, Burning Rock Biotech Ltd. Sponsored ADR Class A entered a two-month period of sideways fluctuations. From August 20th to October 20th, the company's stock price fluctuated by 6.45%, maintaining a relatively stable sideways effect. During this process, buyer funds were able to suppress the market with some chips, while also absorbing selling pressure, which means that most of the chips were still locked in the buying zone. During this period, the average daily stock trading volume of Burning Rock Biotech Ltd. Sponsored ADR Class A significantly decreased, with daily trading volumes rarely exceeding 50,000 shares, indicating a low volume of sell orders in the market and a high level of control by the main players. Due to the strong control by the main players, the rise in the company's stock price did not require a large influx of funds, leading to a phenomenon of "volumeless increase": from October 21st to 24th, the daily trading volume of Burning Rock Biotech Ltd. Sponsored ADR Class A did not exceed 100,000 shares. This not only saved funds for the main players, shortened the time for the rise, but also allowed for further opening up of the rising space in the future.