Q3 2023 Burning Rock Biotech Ltd Earnings Call
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Speaker 1: Before we begin, I would like to remind you that this conference call contains for looking statements within the meetings of Section 21 E of Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Security Sizzigation Reform Act of 1995. These for looking statements can be identified by terminology such as will, expect, anticipate, future, intends, plans, believes, estimates, target, confident infinite infident and similar statements.
Before we begin I would like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 1934 as amended and as defined in the U S. Private Securities Litigation Reform Act of 1995. These forward.
Looking statements can be identified by terminology such as will expects anticipates future intends plans believes estimates target confident and similar statements statements that are not historical facts, including statements about burning wax beliefs and expectations are forward looking statements.
Speaker 2: Statements are not historical facts, including statements about burning rocks police and expectations are for the containment. Such statements are based upon management's current expectations and current market operating conditions and relates to events that involve known or under risk uncertainties and other factors, all of which are difficult to predict and many of which are beyond burning rocks control.
Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond burning wax control.
Platelets.
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Gotcha.
Hello.
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Speaker 3: This is Yuxun Han from Burning Rock. I'm the CEO and founder. And today you also have our example, Leo Li and our CEO Zhou Zhang online.
This is a yourself from a burning rock.
And so there you also have our CFO.
Oh really.
The deal with total coli.
Speaker 3: And today we have a brief introduction of. Recent progress, and then I will hand on to Leo talking about the financials. And then Joe talking about our pipeline program.
And.
We have a.
Brief introduction of <unk>.
With the progress and then I'll.
Our head out to leave or talking about the financials and then Joe talking about all of our pipeline programs.
Speaker 3: So let's turn to page three, which shows that we're burning rock.
So, let's turn to page three.
Those stats out what burning rock.
Speaker 3: what FruityRock is doing. We started from therapy selection and expanded to early detection, MRD, and bio pharma.
What can you walk through how we started from a therapy selection and expect to expand it to.
Early detection and Marty and Biopharma at that business.
Speaker 3: And so far that's our business construction. And let's turn to page four, which the page that I think most of the investors care about most, that's about.
And so far that's our business construction and.
Let's turn to page four.
The page that I think most of you match.
Those care about most.
Speaker 3: And we set a goal to break even in terms of non-gap profit minus SGMA. And we say that in Q2 this year, we have the first time in burning rock to reach the goal.
That's about a breakeven.
And so we set a goal to breakeven.
In turn this off.
non-GAAP profit minus SG&A, and we say that that in Q2. This year, we have paid for the first time I'm burning rock to reach to go well in AR in Q3.
Speaker 3: Well, in Q3, actually there are some interest industry disruption. You know that.
Actually there are some.
As industry disruption, you'll know dot com.
Speaker 3: even most of the medical conferences or meetings.
Most of the.
The medical conferences and meetings.
Speaker 3: not
What coat.
Speaker 3: I know, I normally. So in Q3, there's a little bit, our impacted by this event. And the profit dropped to the negative part, which is the negative 9.9, sorry, 3.9 million RMB.
And.
No anomaly.
So in Q3 and they sell it'll be our.
Yeah.
Bye Bye birdie.
You bet.
The profit.
It's up to the negative part we're just a negative.
My point.
$8 9 million RMB.
Speaker 3: But we are still moving to the brick even level, especially I think that this kind of volatility will pass by the end of this year.
But we are still.
Moving to the App.
Breakeven.
Level.
Especially I think that this kind of volatility.
Volatility will pass by the end of this year.
Speaker 3: So let's turn to page five that we set a goal to break even some time this year. And I think that we are moving toward that direction very firmly and without the destruction.
Let's turn to page five.
We set a goal to two.
To breakeven.
Sometime this year.
We think that we are moving.
Toward that direction.
Firmly in.
Without without without that.
Without the disruption.
Speaker 3: And in terms of the third-piece selection, the site of the industry destruction, we still continue to growth for the in-hospital model, which means that the in-hospital revenues has 10% year-on-year growth. And the part that has been impacted with the central app model.
And.
In terms of the therapy selection.
Right off the industry construction with you.
Continue to growth in the quarter.
In hospital model, which means that in a hospital.
Revenues hashed out a 10% year on year growth.
And.
Part of it has been impacted with the Central lab model.
Okay.
Speaker 3: In MRD, we have a strong clinical validation publications which with the metal study for lung cancer published in cancer cell, which is a big milestone for our MRD study.
And M. R. D. We have a strong clinical validation complications.
Which is with the metal study for lung cancer published in cancer cell, which is a.
Pick a milestone for our <unk> study.
Speaker 3: And we know that data studies, for example, like colon cancer, and subfugeal cancer are all.
And we know that data.
<unk> for example.
Colon cancer esophageal cancer are on our way.
Speaker 3: For the power farmer, despite the struggling time of capital market for power farmers, we still have a strong growth, showing our...
For power Thumber despite of the.
Uh huh.
Struggling time, a part of our capital market for power farmers.
We still have a strong growth.
Our.
Speaker 3: system, systematic value of Burning Rock. The revenue grows up 31 year on year. And our backlogs do keep growing. And one thing to mention is that we just signed a CDX contract with B.I.
Fifth systematic.
Value of burning rock with revenue growth up 31 year on year.
Our backlogs do.
Keeps growing.
<unk>.
One thing to mention is that we just signed a pdx contract with with Ti.
Speaker 3: And then in terms of early detection, there is a big...
And then in terms of early detection.
Beer is a big.
Speaker 3: I'm a big stone, a milestone for that is that we got a breakthrough device designation granted by China, National Medical Product Administration, which is NIMPA. And we are the only, our multi-cancer early detection product, the only task that has received a PDD from both FDA and NIMPA.
Staff.
I mean, a big stall the milestone for that.
Got a breakthrough.
Device designation is granted by China National.
No medical product products at a nutrition, which is nimble and we are the only.
Our multi cancer early access.
Only test that has to receive the PDD from both FDA and impact.
Speaker 3: And let's turn to page six. Next, I'll explain how the industrial volatility impact our volume. You can see that the central lab model has been impact negative 31%. Well, for in-hospital model is still growing in terms of volume.
And let's turn to page six to explain that how the industry volatility impact our.
Volume you can see that the central lab.
Such a lab motto has been impact negative 31% while.
For housing.
Husky Tomorrow.
Growing.
In terms of volume.
Speaker 3: So we think that, yeah, and that actually impacts our competitors much more than Burning Rob because Burning Rob is the only company that in hospital model represents more than half of our revenues. you
So we're seeing that.
Yes.
Actually impact our competitors much more.
Burning rock costs are.
Turning around is the only company that in hospital model represents.
More than half of our revenues.
And then I will turn to Leo about our financials.
Okay.
Speaker 3: Let's move on to page seven. As you mentioned earlier, the whole China healthcare industry had a disruption during the quarter. And what that meant for us was actually two diverging trends, which actually accelerated the path that we were already on. So, if you look at central lab, that was down heavily, down 41% on a year over year basis in the third quarter.
Let's move on to page seven.
As I mentioned earlier.
Whole, China health care industry had a disruption.
During the quarter and what that meant for US was actually two diverging trends, which actually accelerated.
Past that we were already on so if you look at central lab that was down heavily down 41% on a year over year basis in the third quarter.
Speaker 3: That channel 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. So I think that continues.
Channel continued to grow and it grew 10% year over year, which is rare in the diagnostics industry or at least in our specialty industries in China. So I think that continues to prove the value of being hospital segments, where.
Speaker 3: to prove the value of the in-hospital segments, where the real value or the profit is, as central lab, as we mentioned earlier, is being shifted more towards in-hospital. If 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.
The real value or the profit is a central lab as we mentioned earlier.
Is being shifted more towards.
And hospitals, 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 <unk>.
Moving the mainstream of our businesses towards the in hospital segments. So at some point last year, we were more in hospital segment by volume and you can see in the third quarter, we actually in hospital represented the largest segment overtaking Central lab. So I think was that transition completes some.
Speaker 4: towards the in hospital segments. So at some point last year, we were in more in hospital segments by volume. And you can see in the third quarter, we are actually in hospital represented the largest segment.
Speaker 4: overtaking central lab. So I think with that transition completes some point down the road, our volume and revenue trends will match again as we complete this transition.
Point down the road.
Our volume and revenue Mat trends will match again now as we complete this transition.
Speaker 4: Moving on, we can see that pharma services still had a strong growth quarter in the third quarter. Revenues grew 31% on a year-over-year basis, so we're very pleased with that result. Our backlog continued to grow, particularly from multinational companies, and Yusheng gave an example of a recent win in his remarks, so we're very pleased with the progress and the outlook that we have in the sector.
Moving on we can see that our pharma services still had a strong growth quarter in the third quarter revenues grew 31% on a year over year basis. So we're very pleased with that result.
Our backlog continued to grow particularly from multinational companies.
<unk> engaged an example of a recent win in his remarks, so we're very pleased with.
With the progress and the outlook that we have in the sector overall because of the industry impacts and a drop in central lab, our revenue was down 17% on a year over year basis on where we're at.
Speaker 4: Overall, because of the industry impact and the drop in financial lab, our revenue was down 17% on a year-over-year basis. And we're very conscious of this trend and we are managing.
Very cautious of this trend and we are managing our expense or our cost base.
Speaker 4: our expense or our cost base appropriately in accordance the new industry setup. So I think we had a temporary dip in our operating margin.
Lately in according.
So the new industry setup. So I think we had a we had a temporary dip in our operating margins.
Speaker 4: for the third quarter and that should turn for the better in the quarters down the road. So measured on a non-gap basis by gross profits minus SGNA. And we hit a positive territory in a second quarter, but we did put back into the negative territory. But in a third quarter and we're looking to try and...
For the third quarter and that shifts.
John.
For the better in the quarters down the road so measured on a non-GAAP basis.
Gross profit minus SG&A I mean, we hit a positive territory.
The second quarter of about <unk>.
Thank you.
In the third quarter and we're looking to try on this.
Speaker 4: to a positive number again at some quarter down the road so we're working towards that. And we have done some rejigging.
To a positive number again at some quarter down the road so we're working to.
<unk> and <unk>.
We have done some rejigging.
Speaker 4: in a recent time period to make sure that we are on the right track. So I'll operate it or I'll operate in last week, widen a little bit in the third quarter compared to the second quarter. And we're aware of that. We've made the adjustments. At towards the end of September .
In a recent time periods to make sure that we're on the right track so ill.
Or operating loss did.
Widen a little bit.
In the third quarter compared to the second quarter and we are aware of that we've made the adjustments.
At towards the end of September.
Speaker 4: that we hope to be on a better track going forward. Notably, we are also managing our operating cash flows, managing our expenses, our cash expenses very carefully.
We hope to be on a better track going forward, notably we're also managing our AR.
Operating cash flows when managing our expenses, our cash expenses very carefully and you can see the net operating cash outflow. This quarter has swaps to 70 to 47 million RMB prior.
Speaker 4: And you can see the net operating cash outflow this quarter has dropped.
Speaker 4: to 47 million RMB per quarter. And if you look at our operating margins, if you look at our sales and marketing expenses as a percent of revenue, despite the dropping revenues, I mean, our sales and marketing expenses were 45%.
Per quarter, and if you look at operating margins. If you look at our sales and marketing expenses as a percent of revenue.
The dropping revenues, our sales and marketing expenses were 45%.
Speaker 4: of our revenues, similar to 44% that we achieved in the second quarter. And as we think industry volume normalises down the road, our operating margins should improve. And we hope to get back to the positive non-GAAP target.
Overall revenues similar to a 44% that we achieved in the second quarter and as we think.
Industry volume normalizes down the roads are operating margins should improve.
I would hope to get back to the positive.
non-GAAP.
Speaker 4: in the quarters down the road. So that's a quick recap of the P&L for the quarter.
Territory.
Quarters down the road. So that's a quick recap of the P&L for the quarter.
Speaker 4: And I think we should also mention our cash position. There's that in focus if we go to page eight.
And I think we should also mentioned our cash position is asking our focus if we go to page eight we had cash outflow of about $572 million in the year of 2022, that's not our run rates for 2023, our guidance at the start of this year was about 400 million RMB outflow.
Speaker 4: So we had cash outflow of about 532 million.
Speaker 4: in the year of 2022, that's not our round rate for 2023. Our guidance at the start of this year was about 400 million RMB outflow. And you can see in the three quarters so far to this year, we had an outflow of about 249 million RMB, so significantly below the outflow guidance that we set out at the start of this year. And if you look at.
You can see in the three quarters.
So far this year, we had an outflow of about 249 million RMB, so significantly below the outflow guidance that we set out at the start of this year and if you look at.
Speaker 4: our third quarter quarterly cash operating cash outflow of 47 million RMB. That's even close to the run rate that we set for the year of 2024. So on that run rate,
Our Q third quarter quarterly cash operating cash outflow of 47 million RMB, that's even close to the run rates that we set for the year for 2024, so on that run rate and looking at the cash balance at the end of this period.
Speaker 4: looking at the cash balance at the end of the spirit.
Speaker 4: of 637 million RMB, and we're sitting on more than three years of cash runway, so we are in no rush to do anything. We're sitting on ample cash balance.
637 million RMB in the we're sitting on more than three years of cash runway. So.
We are in no rush.
To do anything with it sitting on ample cash balance and I just want to reiterate our strong cash position relative.
Speaker 4: and I just want to reiterate our strong cash position redifit to our cash outflow.
Our cash outflow.
Speaker 4: on this page. And the reasons for the reduced cash outflow, I think we have mentioned that before, and I'll just reiterate those here again. So first, our commercial operations is coming towards profitability. We were even slightly positive in the second quarter. Our R&D spend, particularly our early cancer detection programs, are maturing. And as these programs complete, the expenses associated with those programs will run off, and that will help reduce
On this page and the reasons for the reduced cash outflow asking we have mentioned that before.
I will just.
I reiterate those here again, so first our commercial operations is coming towards profitability, we were even slightly positive.
In the second quarter.
Our R&D spend, particularly our early cancer detection programs are maturing and as these programs completes the expenses associated with those programs will run off and that will help reduce.
Speaker 4: cash spend naturally. So, you know, 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.
Cash spend nationally so you know as we are.
Look to complete our spend on early cancer detection and as we move towards better profitability than we will.
Look to improve our operating cash outflows and we make sure that we're sitting on ample cash balance.
Speaker 4: The next I'd like to turn to Joe, who has some importance, pipeline and clinical publication data to share with you all. Thanks, Leo.
The next electric turned to Joe who has some importance.
Pipeline and clinical application data to share with you.
Thanks Neil.
So.
Speaker 5: I'm going to present a little bit of give guys an introduction about the pack from the update. Mainly majorly focused on the MRD, which is a minimum resuscitated V, so I'm looking.
I'm going to present, a little bit to give you guys an introduction about the pipeline update.
My journey focus on the R&D, which is minimal residual disease.
Speaker 5: So let's turn to page 10. So page 10 basically representing the Boney and Rock MRD clinical publication. So basically MRD has a lot of utilities.
So, let's turn to page 10, so could you Tim basically representing presenting the bringing rock MRV clinical publication.
So basically MRV has a lot of utilities that are shown in the picture showing here basically it can be done like it before then you ask Julian to look at the baseline <unk> level. Then also we can do like often here.
Speaker 5: As shown in the picture showing here, basically, it can be done like before the new as driven to look at the baseline CDDNA level, then also we can do like afternoon adjust driven therapy to look at treatment exactness.
<unk> therapy to look at it.
Speaker 5: All like more commonly, you use that post-surgical after-resection to look at the landmark MRD to get a prognosis or an either some kind of a prediction value on the MRD status.
Treatment.
Oh like a multifamily kind of be used as a post surgical or after the recession. If you look at our landmark MRV, you've got the prognosis and either some kind of a prediction value.
Based on <unk> status.
Speaker 5: There also could be a lot of treatment effectiveness assessment after that juvenile therapy and also the longitudinal monitoring.
There also could be a lot of the a lot of human factors assessment after that June therapy, and also the longitudinal monitoring for surveillance.
Speaker 5: So, Bernie Rock has a bunch of different kind of publication related to different kinds of cancer types. That's including the non-smot cell lung cancer as well as the color rupture cancer, gastric cancer, pancreatic cancer, and BTC, Bilarity Traxx cancer. So all the publication, most of them actually showing in the poster format, being presented in a different kind of academic meeting or clinical meeting happened the life.
<unk> has a bunch of different kind of obligation related to different cancer types, including non small cell lung cancer as well as the colorectal cancer gastro cancer pancreatic cancer BTC.
Larry Chuck's cancer.
All of the publication most of them actually is showing in the poster format in presented in different kind of ophthalmic meeting.
Clinical meeting happened later.
Speaker 5: within two years. So the major one, I just want to give you guys a little bit more introduction about the cancer cell publication which is related to the non-small cell lung cancer.
Within two years, so the major one I just want you to give you guys a little bit more introduction about the cancer cell publication, which related to the non small cell lung cancer.
Speaker 5: Let's turn to page 11. So the technology we've been using actually called BR Profit, in brief they call Profit. So basically it's based on a whole excellent sequencing. We got a tumor, how excellent sequencing get up to 50 mutations, which is tumor specific. Then we designed to personalize that.
Let's turn to page 11, so the.
Technology, we've been using our <unk> pocket.
<unk> profit so basically.
Based on a whole exome sequencing.
We got the tumor whole exome sequencing.
<unk> <unk> mutation, which is a tumor specific when we designed the personalized.
Speaker 5: um panel MRD panel and utilize use this personalized panel trying to capture a potential ctDNA fragment from the plasma collect from the same patient.
Panel MRV panel and have utilized this personalized panel, we're trying to capture a potential CTD DNA fragments from the PRASM collect from the same patient.
Speaker 5: And based on the proprietary ultra-deep sequencing and also, excuse me, the proprietary...
Based on the proprietary.
Ultra deep sequencing and also.
Excuse me they're proprietary.
Speaker 5: sequencing results as well as the MRD calling algorithm, then we can determine the MRD status of that patient for that kind of a, that type, at that time point of collect blood collection.
Sequencing result, as well as Mardi coding algorithm that we can determined and Marty status of that.
Patient, but that kind of a dark type.
Time point over collect blood collection.
Speaker 5: So on the right page, basically showing the analytical performance of this BR profit assay. So it's including the two types of, so on the top right panel, basically talking about on contrarium cell line sample, diluted down to 8 ppm. As you can see here, we still can see out of 50 low size, there's quite a bit different significant difference compared to baseline, which is on the...
So on the right page basically insuring.
The performance of these VR profit assay, so it's the including the two type of.
So on the top right panel. This is talking about a contract to sell a lot of samples.
Down two eight ppm and the you can see here, we still can see auto 50, low side theres, a quite a bit different significant difference compared to.
Baseline, which is a.
Speaker 5: on-contribed, which is a background cell line. So this gives us some kind of confidence showing this as a sensitive enough to detect very low allele frequency, very rare tumor fraction based on the CTDNA from the patient.
On contract, which is a background at solar so this will give us some kind of confidence joining this assay sensitive enough to detect a very low allele frequency very rare tumor fraction based on.
The Cte DNA from the patient.
Speaker 5: On the top right, bottom right panel that's showing the quantitative property of this asset.
On the top right bottom right panel, that's showing the <unk>.
Quantitative property of this assay based on the.
Speaker 5: based on the algorithm we used, we can estimate based on the detection sensitivity, detect capability as well as the little frequency of each low set. We can assess, estimate what's the CTDNA fraction from that patient.
The algorithm we used we can estimate based on the detection sensitivity detect capability as well as the allele frequency of each LASA, we can't assess estimate what's the CTD AA friction from that patient as you can see here. This is a contract data, but it definitely gave us a lot of confidence showing the.
Speaker 5: As you can see here, this is the control data, but it definitely gives us a lot of confidence showing the expectation and estimation showing very good correlation.
<unk>, an estimation showing very good correlation.
Speaker 5: So based on this technology, we moved to page 12. Basically, we work with the top tier hospital in Beijing People Hospital.
So based on this technology, we move to page 12, basically we work with.
Top tier hospital.
And Beijing people hospital and.
Speaker 5: We published this technology utilization on the non-small cell lung cancer cell, which is a top general for translational medicine. As you can see here, so this has been published in October , nice.
With that we published.
Technology user activation on the <unk>.
Small cell lung cancer in cancer cell, which is a top journal top tier journal unfortunate relational Madison as you can see here.
So this is being accomplished.
Speaker 5: And a little couple of highlights. I don't want to read it one by one, but you can look at it. Mostly it's just showing the profit of performance of fixed panel MRD-AC in a head to head comparison in non-smot cell long-cans.
In October at nice.
There's a couple of highlight I don't want to read into it one by one but you can look at it mostly is just showing the profit outperformed the fixed panel MRV assets in a head to head comparison in non small cell lung cancer.
Speaker 5: Moved to page 13 basically gave you overview of this study. So the cohort is that we enrolled about 181
Move to page 13, basically gave you.
Overview of this.
This study so the cohort we enrolled about 181 patient.
Speaker 5: not small cell lung cancer, but as you can see here, most of them are actually 63% of stage 1 patients.
Non small cell lung cancer, but as you can see here most of them actually 63% a stage one patient early stage patients after surgery and also there's a few stage II stage III and as a sample in time is that we basically collect the tumor that Jason Herr tissue normal normal tissue collect a surgery.
Speaker 5: very early stage patient at the outer surgery. And also there's a few stage two and a stage three.
Speaker 5: And at the sampling time is that we basically collect the tumor of the json pair tissue normal normal tissue collect at surgery and we do the whole x-on sequencing on those.
And we do that Oh exon sequencing on those.
Speaker 5: as well as like we collect a blood sample, collect a preoperative, and the three days, and 30 days after surgery. And also we do a four...
As well as alike.
Collect blood samples collected pre operative and three days or 30 days after surgery and also we do a.
Speaker 5: So every time when patient go back to see the doctor, the like six months after a year up.
Follow up time.
So every time when patients go back to see the Doctor after like six months out a year out.
Speaker 5: If possible, we collect the follow-up plus sample.
If possible we collect the follow up.
Speaker 5: And then we use a three different kind of approach to look at MRD status. The first one is basically showing on the top right, it's a HOTEX on sequencing based person. And then we use a three different kind of approach to look at the first one.
Plus sample and then we we used in three different kind of our approach to to look at MRV status. There first of all one is basically is showing on the top right. It's a whole exome sequencing based personalized.
Speaker 5: page personalized panel design as well as doing this kind of MRD essay we call BR Profit essay. And comparison we also using a also a six-hand of target sequencing to do the
Page personalized panel design as well as are doing this kind of MRV assay, we call Dr profit assets.
Comparison, we also eating.
Also a fixed target sequencing.
To do that.
Speaker 5: tumor either tumor agnostic or tumor informed of the calling to determine the MRD acid. But you can think about this way. So basically, how excellent sequencing gave us many more potential mutation loads that compared to relative smaller fixed panel.
Tumor either tumor agnostic or tumor informed.
Calling to determine the MRV assay, but you can think about this way so basically all exon sequencing gave us many more.
To ensure a mutation load compared to us.
Relative to the smaller fixed target sequencing.
Speaker 5: So by using this data, let's move to page 14, basically, there are several major conclusions of the version we have seen. So the page 14 showing actually, if you look at the pre-operative plasma sample.
So by using this data let's move to.
Page 14, basically there are several major conclusion observation we have seen so the page 14, showing actually if you look at a pre operative plasma sample. Since you know the sample is basically untreated patients coming from the blood coming from untreated patients and that's why ideally give your assays perfect.
Speaker 5: Since you know, this sample is basically on treated patients coming from the blood coming from on treated patients.
Speaker 5: And that's why ideally, if you're active, perfect, you should be able to see every patient blood will get like close to very high percentage of detection sensitivity.
You should be able to see every patient blood will get like close to very high percentage of our detection sensitivity.
Speaker 5: As you can see here, the sensitivity definitely grow up.
As you can see here the sensitive.
They designate grow up.
Speaker 5: from stage one, eight, two, stage three. And a stage three, you got the highest sensitivity, detection sensitivity, but as you can see here is the orange color, which is representing the profit asset. So it all performs the tumor agonostic panel sequencing as well as tumor informed fixed panel sequence.
From stage, one stage III and stage three you got the highest sensitivity detection sensitivity, but as you can see here the orange color, which is representing the prophet assay. So.
It's outperformed the tumor agnostic panel sequencing as well as tumor informed that fixed panel sequencing.
Speaker 5: So, on total, basically, at the stage 2B, we already see 40% detectability and also stage 2, we see 75, stage 3 with 83%.
So.
And totally basically at the stage at <unk>, we already see 40% Detectability and and also phase two we see 75 phase III is 83%.
Speaker 5: And as you can see here in the panel B showing on the right page, as you can see here is for all three MRD positive patient sample, the CFD and CTD and instruction showing the highest one, which is showing in the box plot with the red background.
Productivity and as you can see here in the independent be showing on the right page as you can see here is for all three.
Mardi positive patient sample.
<unk> instructions shown you the highest one which is shown in the box crop with the RASK background, but if only the if you look at the Orange color, which means on the right, which is theres a fairly patient pre operative patient only showing our policy in the op profit assay.
Speaker 5: But if only the, if you look at the orange color, which means on the right, there's a 30 patient, preoperative patient, only showing a positive in B.R. profit asi, but the CTD and infraction is the way lower. It's actually two magnitude lower than the all three positive patients.
Cte DNA fractions away lower its actually two magnitude lower than all three positive patient.
Speaker 5: This is just to reflect the detection sensitivity in polyens trying to get those kinds of very low allele frequency, very low tumor fraction patient.
Just to reflect the detection sensitivity in partners trying to.
Get those kind of areas.
<unk>.
Low allele frequency, but low tumor fraction patient <unk>.
Speaker 5: Trying to confirm the MRD status. Of course, this is a preoperative. So let's move to the page 15 Basically, we we use a postoperative
<unk> come from the <unk> status of course this is a pre operative so let's move to the page 15, basically we use a post operative.
Speaker 5: blood sample to determine the real MRD status and also come associated with this kind of a status
Blood sample to determine the real MRV status and also come associated this kind of a status with the with the relapse Patel.
Speaker 5: potential to look at the disease-free survival. On the last page, basically, is that we are using the landmark time point, which is three days or three, which is time point B, or 30 days after surgery, which is time point C, to look at the survival curve. As you can see, the DFS survival percentage, if you are...
Potential to look at a disease free survival.
On the last page basically as we are using the landmark time point, which is three days, our street, which is $10 <unk> or 30 days after surgery, which is 10 seats do you look at the <unk>.
Survival curve as you can see the DFS survival percentage.
Speaker 5: negative the patient, you may showing the even from one one time point landmark time point to check and follow up to like 1200 days, you should show very way higher disease-free survival compared to MRD positive patient, which that's showing the the HR ratio reached to
And Marty negative the patient ULE showing that even from a one on one time point of landmark time point to check.
Follow up up to like 1200 days used issue sure Barry way higher.
A disease free survival compared to <unk> positive patient.
It's showing.
The HR ratio reached two <unk>.
Speaker 5: But for 10.c, the HR hardware ratio is to 16.4, which is a pretty significant difference.
Yes.
But us basically for $10 six HR hazard ratio rose to $16, four which is a pretty significant difference.
Speaker 5: And on the right page, right side of the panel, we basically utilize in longitudinal MRD analysis. This is basically for multiple point, time point assessment on the post surgery patient plasma sample. And if there's any MRD positive signal showing any
And on the right page right side of panel, we basically utilizing longitudinal Mardi analysis. This is basically for multiple point, Tom pointed assessment on the post surgery.
Ah patient plasma sample and if theres any MRV positive signal showing any and if any.
Speaker 5: Any time of the blood collection, we deem it as MRD positive. But if all the sample collect form of patients is MRD negative, then we deem it MRD negative. As you can see here, the separation will be even better. That just give us a lot of confidence also, reflect a lot of other publications. See, continuous surveillance require multiple time point collection usually give us better separation of the disease free survival.
Anytime of the blood collection demos and Marty positive, but if all of a sample from a patient is Mardi negative then we deem at MRV negative as you can see here the separation will be even better is that just gave us a lot of our covenants.
Congress also reflect a lot of other publications see.
Continuous surveillance require multiple time point collection, usually gave us better separation of the.
Disease free survival.
Speaker 5: So basically it's also not related to the stage one or stage two and a three. Basically showing very similar trends.
So basically it's also not related to the stage one stage two industry basically showing very similar trend. So in summary, basically this paper published in cancer cell gave US very good example, showing how the personalized web based and Mardi assay.
Speaker 5: So in summary, basically, this paper published in Cancer Cell gave us very good example showing how the personalized WestBase
Speaker 5: MRD assay can give a very good progosis value on the nostrilong cell cancer even at the stage I.
Ken gave a very good prognosis value on the non small cell lung cancer.
Speaker 5: and also two and three. And so of course, we are still working on this as a and trying to working on multiple different kinds of cancer type and also trying to with other top tier hospital, not only prognosis value, we also want to look at the predict value and to see any kind of a clinical utility related to
Stage, one and also to industry and so of course, we are still keep working on this assay and trying to you are working on multiple different kind of a cancer.
Cancer type and also trying to with other top tier hospital.
Not only prognostic value. We also want to look at a predictor value and do you see any kind of.
Clinical utility related too.
Speaker 5: drug selection or any kind of treatment effectiveness.
Uh huh.
Drug selection or any kind of.
Treatment effect in this assessment.
Speaker 6: So that's conclude my part. Thank you. Thank you.
So that concludes my part.
Thank you.
It's back to the moderator.
Yeah.
Speaker 1: Thank you for participating in today's call. You may now disconnect. Everyone, have a great day.
Thank you for participating in today's call you may now disconnect everyone have a great day.
Thank you.
Yeah.
Sure.
Speaker 7: 28 endurance
Okay.
[music].
Okay.
Okay.
Okay.