Burning Rock Biotech Limited (BNR): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to map out the operational reality of Burning Rock Biotech Limited (BNR), and frankly, their late-2025 Business Model Canvas reveals a company in clear transition, balancing high-growth service revenue with a structural shift in delivery. We see the Pharma R&D service fees channel surging by 68.6% year-over-year in Q3 2025, which is directly supporting a healthy gross margin of 75.1% for that quarter, all while they push hard into the in-hospital testing model. With RMB 467.0 million in cash reserves as of Q3 2025, the key is understanding how these Key Activities and Channels align to secure future revenue streams; check out the full nine-block breakdown below to see the precise mechanics of their precision oncology strategy.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Key Partnerships

You're looking at the network that makes Burning Rock Biotech Limited's specialized diagnostics work across the globe. It's all about who they work with to get their tests into the hands of oncologists and patients.

Pharmaceutical companies for Companion Diagnostics (CDx) development

Burning Rock Biotech Limited has a strong focus on providing services that support pharmaceutical partners through the entire development cycle, especially for companion diagnostics (CDx). This segment is showing significant financial acceleration.

For the three months ended June 30, 2025, revenue generated from pharma research and development services reached RMB45.2 million (US$6.3 million), marking a substantial 68.1% increase compared to the RMB26.9 million reported for the same period in 2024. This growth is primarily due to increased development and testing services performed for pharma customers, and the achievement of several program milestones. Looking at the first quarter of 2025, this revenue stream brought in RMB37.1 million (US$5.1 million), which was a 79.9% jump from the RMB20.6 million in Q1 2024.

The company's capabilities are supported by its internationally accredited laboratories, holding both CLIA and CAP certifications.

AstraZeneca for OncoGuide™ OncoScreen™ Plus CDx System in Japan

A major milestone in this area occurred on September 24, 2025, when Burning Rock Biotech Limited announced that its OncoGuide™ OncoScreen™ Plus CDx System received Manufacturing and Marketing Approval from Japan's Ministry of Health, Labour and Welfare (MHLW). This system is specifically intended for use as a companion diagnostic for AstraZeneca's capivasertib in treating breast cancer. The diagnostic tool is designed to detect alterations in PIK3CA, AKT1, and PTEN genes in a single test. Burning Rock's partner in Japan, Riken Genesis Co., Ltd., will start preparations for insurance coverage following this approval.

This follows earlier support for AstraZeneca, where Burning Rock's OncoScreen™ Plus product was used in the CAPItello-291 phase 3 multi-regional clinical trial (MRCT) in China to determine mutations for patients enrolled.

IMPACT Therapeutics for global strategic CDx development

Burning Rock Biotech Limited has a long-term strategic partnership with IMPACT Therapeutics, initially announced on August 3, 2021, focused on CDx development for drugs in the synthetic lethality field. The initial joint effort involved developing a CDx for Senaparib (IMP4297), a PARP inhibitor, for prostate cancer treatment globally, with planned CDx submissions to the U.S. Food and Drug Administration (FDA) and the National Medical Products Administration of China (NMPA). This global program is supported by Burning Rock's CLIA certified and CAP accredited labs in Guangzhou, China and California, U.S. The collaboration has also extended to include testing services for IMPACT Therapeutics' ATR inhibitor, IMP9064.

Clinical institutions for multi-center clinical trials (e.g., PROMISE study)

The company's diagnostic tools are validated through extensive clinical work, often in collaboration with numerous institutions. The OncoScreen Focus product alone has been used in More Than 10 CTA Studies & 4 CDx Development Studies. Furthermore, Burning Rock Biotech Limited launched the PREVENT study, China's first prospective interventional study to evaluate its early cancer detection test, OverC™, which is expected to enroll 12,500 asymptomatic individuals across clinical sites. The personalized minimal residual disease (MRD) product, CanCatch® Custom, was utilized in a two-arm, multicenter, randomized, double-blind phase 2 study for oesophageal squamous cell carcinoma (OSCC), with results published in May 2025.

Here's a snapshot of the clinical trial involvement:

Hospitals for expanding the in-hospital testing model

Burning Rock Biotech Limited is actively shifting focus toward an in-hospital testing model, which is reflected in its revenue channel performance as of late 2025. Revenue generated from the in-hospital business for the three months ended June 30, 2025, was RMB62.5 million (US$8.7 million), a 4.4% increase from RMB59.9 million in Q2 2024. This growth is explicitly driven by an increase in sales volume from existing hospitals and new contracted partner hospitals. Conversely, revenue from the central laboratory business decreased by 16.2% to RMB40.9 million (US$5.7 million) in Q2 2025, aligning with the company's strategic transition. For the first quarter of 2025, the in-hospital business revenue was RMB57.7 million (US$7.9 million).

The gross margin for the in-hospital business improved to 76.1% for Q1 2025, up from 68.3% in the same period of 2024, due to cost optimization measures.

• In-hospital business revenue (Q2 2025): RMB62.5 million (US$8.7 million).
• Central laboratory business revenue (Q2 2025): RMB40.9 million (US$5.7 million).
• In-hospital business gross margin (Q1 2025): 76.1%.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Key Activities

You're looking at the core engine room of Burning Rock Biotech Limited (BNR) as of late 2025, focusing on what they are actively doing to drive the business forward, especially given the recent cost-cutting measures. It's all about execution on their science, shifting their sales model, and managing the burn rate.

Next-Generation Sequencing (NGS) assay development and validation

The foundation remains the application of NGS technology in precision oncology, covering both therapy selection testing for late-stage cancer patients and early cancer detection efforts, which have moved past proof-of-concept R&D and into clinical validation stages. The company's R&D spending reflects this focus, though it has been actively managed downward for efficiency.

Here's a look at the R&D expense trend through the first three quarters of 2025:

The Pharma Research and Development services segment shows significant growth, with Q2 2025 revenue at RMB45.2 million (US$6.3 million), up 68.1% from Q2 2024 (RMB26.9 million). This suggests active engagement in development and testing services for pharma customers.

Research and development (R&D) for early cancer detection (e.g., 6D pan-cancer test)

The early detection pipeline has seen validation milestones. Specifically, the THUNDER study for the 6-cancer test, which uses ELSA-seq with cfDNA for cancer detection and origin prediction, was included in the Diagnosis and Treatment Guidelines for Primary Liver Cancer (2024 Edition) and the Expert Consensus on Detection and Clinical Application of Tumor DNA Methylation Markers (2024 Edition). Also, multiple study results showcasing the clinical utility of the personalized MRD assay and the tumor-naïve methylation-based MRD assay were presented at the 2025 AACR in April.

Transitioning business focus toward the in-hospital testing model

Burning Rock Biotech Limited is actively shifting its revenue mix away from the central laboratory business and toward the in-hospital model. This transition is clearly reflected in the revenue segmentation across the first three quarters of 2025.

The shift is evident in the comparative revenue performance:

• In-hospital business revenue increased by 4.4% in Q2 2025 to RMB62.5 million (US$8.7 million) year-over-year.
• Central laboratory business revenue decreased by 16.2% in Q2 2025 to RMB40.9 million (US$5.7 million) year-over-year, explicitly attributed to this transition.
• For Q3 2025, in-hospital revenue was RMB52.8 million (US$7.4 million), a 17.1% decrease from Q3 2024 (RMB63.8 million), while central lab revenue fell 7.9% to RMB36.8 million (US$5.2 million).

Overall Total Revenues for Q2 2025 were RMB148.5 million (US$20.7 million), a 9.6% increase from Q2 2024 (RMB135.5 million).

Clinical utility studies for Minimal Residual Disease (MRD) products

MRD monitoring is a key area of clinical validation. The personalized MRD product, CanCatch® Custom, showed progress in oesophageal squamous cell carcinoma (OSCC) treatment monitoring, with study results published in Molecular Cancer in May 2025. Furthermore, study results presented in September 2025 indicated that integrating ctDNA with clinical response evaluation improves residual disease assessment in esophageal squamous cell carcinoma.

Budget control and headcount reduction for operational efficiency

Operational efficiency is a major focus, evidenced by significant reductions in operating expenses driven by budget control and organizational optimization, which started with a 'profitability-driven organizational optimization' in 2024. You can see the impact clearly in the first half of 2025.

Operating expenses saw substantial cuts:

• Q1 2025 Operating expenses were RMB112.6 million (US$15.5 million), a 46.8% decrease from Q1 2024 (RMB211.5 million).
• Q2 2025 Operating expenses were RMB119.6 million (US$16.7 million), a 42.1% decrease from Q2 2024 (RMB206.7 million).
• General and administrative expenses in Q1 2025 dropped by 68.3% to RMB31.3 million (US$4.3 million).

These reductions are explicitly linked to headcount reduction and reorganization of departments like sales to improve operating efficiency. Finance: draft 13-week cash view by Friday.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Key Resources

You're looking at the core assets that make Burning Rock Biotech Limited tick as of late 2025. These aren't just line items; they are the actual engines driving their precision oncology work.

The financial foundation is one key resource you need to track. Here is the quick math on their liquidity as of the third quarter:

This balance sheet strength, or lack thereof, definitely impacts their runway for R&D investment. Anyway, the real value is in the intellectual property and clinical evidence they've built up.

Their technology stack is central to everything Burning Rock Biotech Limited does. It's all about next generation sequencing (NGS) and the software to make sense of the data.

• Proprietary NGS technology and bioinformatics platforms underpinning both therapy selection and early detection efforts.
• The business is fundamentally focused on the application of next generation sequencing (NGS) technology in the field of precision oncology.

The clinical validation data is what turns the technology into a marketable asset, especially for companion diagnostics (CDx).

• Clinical validation data supports the Personalized Minimal Residual Disease (MRD) product, CanCatch^® Custom, with results published in Molecular Cancer in May 2025 for oesophageal squamous cell carcinoma (OSCC) treatment.
• The PREVENT study, launched in June 2022, is China's first prospective interventional study evaluating the performance of the OverC^™ early cancer detection test in an asymptomatic population.

Regulatory milestones provide the necessary gate-opening for commercialization in key markets. You see this clearly with their international progress.

• Manufacturing and Marketing Approval granted by Japan's Ministry of Health, Labour and Welfare (MHLW) in September 2025 for the OncoGuide OncoScreen Plus CDx System.
• This Japanese approval is for identifying PIK3CA, AKT1, and PTEN alterations for use with capivasertib in breast cancer.
• Burning Rock Biotech Limited has achieved two NMPA-approved IVD kits and four assays with CE marking.

Finally, the human capital-the scientific and R&D talent-is the resource that actually develops and refines these complex systems. Their mission is to guard life via science, and that requires top-tier expertise focused on precision oncology.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Value Propositions

You're looking at the core value Burning Rock Biotech Limited (BNR) delivers across its service lines as of late 2025. It's all about using next-generation sequencing (NGS) to drive precision in oncology.

For Precision oncology: NGS-based therapy selection for late-stage cancer, this remains a foundational offering. The company continues to assist throughout the full process of oncology diagnosis and treatment.

The value proposition tied to High-quality companion diagnostic (CDx) development for pharma partners is clearly translating into financial results. Pharma research and development services revenue surged by 68.6% year-over-year in the third quarter of 2025, reaching RMB42.0 million. A key milestone here is the September 2025 Manufacturing and Marketing Approval from Japan's Ministry of Health, Labour and Welfare for the OncoGuide OncoScreen Plus CDx System for AstraZeneca's capivasertib.

The financial performance reflects this shift toward high-value services. The overall gross margin reached 75.1% for the three months ended September 30, 2025, up from 71.4% in the same period of 2024. This improvement is directly linked to the higher-margin CDx projects within the pharma services segment.

The move into earlier stages of cancer care is a major value driver. For Early cancer detection tests moving into clinical validation, the PROMISE study results were presented at The Innovation in September 2025. The multimodal classifier in that study showed an improved sensitivity of 75.1% at a specificity of 98.8%. The company also holds a breakthrough device designation (BDD) from both the US FDA and China NMPA for its multi-cancer detection blood test.

For post-treatment monitoring, the value proposition centers on Personalized Minimal Residual Disease (MRD) monitoring (CanCatch® Custom). This personalized tumor-informed ctDNA assay supports treatment advancement, with results for oesophageal squamous cell carcinoma published in Molecular Cancer in May 2025. Results for non-small cell lung cancer and gastrointestinal stromal tumor were also presented at ASCO in June 2025.

Here's a quick look at the key activities supporting these value propositions:

• NGS-based therapy selection testing for late-stage cancer patients.
• CanCatch® Custom used for MRD detection and recurrence prediction.
• OncoGuide OncoScreen Plus CDx System approved in Japan (September 2025).
• PROMISE study multi-omics integration strategy across nine cancer types.
• Validation data for SPIRAL method published at AMP (November 2025).

The company's overall gross margin for Q3 2025 was 75.1%. Finance: review the cash impact of the 68.6% surge in pharma service revenue by next Tuesday.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Customer Relationships

You're looking at how Burning Rock Biotech Limited (BNR) manages its relationships with the two main groups it serves: pharmaceutical companies and hospital labs/clinicians. It's a mix of deep partnership and broad service delivery.

Dedicated R&D service teams for pharmaceutical clients

This relationship is clearly high-touch and project-based, focusing on co-development and testing services. The financial results show this segment is a major growth driver, indicating strong client reliance on BNR's expertise for their drug development pipelines.

Here are the revenue figures that show the strength of these partnerships:

• Revenue from pharma research and development services for the three months ended September 30, 2025, was RMB42.0 million (US$5.9 million).
• This represented a 68.6% increase compared to the same period in 2024.
• For the first half of 2025, the growth was even stronger, with Q2 2025 revenue at RMB45.2 million (US$6.3 million), up 68.1% YoY.

The gross margin in this segment also reflects the value captured from these complex projects, moving to 73.4% for the three months ended September 30, 2025, up from 48.2% during the same period in 2024. That's a significant jump in profitability on these service contracts.

Direct sales and support for hospital laboratory staff

For the in-hospital business, the relationship is centered on establishing and supporting the use of BNR's products within the hospital's own laboratory setting. This is a shift away from their older central laboratory model, which saw revenue drop to RMB36.8 million (US$5.2 million) for Q3 2025, a 7.9% decrease YoY.

The in-hospital segment is driven by the volume of tests run on BNR's kits within those facilities. You can see the direct impact of this strategy:

• In-hospital business revenue for the three months ended September 30, 2025, was RMB52.8 million (US$7.4 million).
• This was a 17.1% decrease from Q3 2024, driven by a decrease in sales volume.
• However, the total number of partner hospitals, those contracted to purchase products on a recurring basis, was reported at 93 as of Q1 2025.

The relationship is maintained through ongoing sales volume from these contracted hospitals, which are the primary source of kit revenue.

Scientific and clinical education for oncologists and pathologists

While I don't have a specific dollar amount for education program attendance or outreach, the relationship is evidenced by the clinical validation and regulatory milestones achieved, which require deep engagement with the medical community. For instance, BNR presented study results on esophageal squamous cell carcinoma in September 2025. Also, their OncoGuide™ OncoScreen™ Plus CDx System was approved in Japan as a companion diagnostic in September 2025. These events serve as major educational touchpoints, demonstrating the clinical utility of their assays directly to prescribing oncologists and pathologists.

High-touch, consultative approach for complex genomic testing

The consultative nature is inherent in supporting complex genomic testing, whether for therapy selection or companion diagnostics. The success in the pharma R&D segment, which saw its gross margin increase to 73.4% in Q3 2025, suggests that the consultative support provided for these higher-value, complex projects is effective at driving both adoption and margin capture. This approach is what differentiates their service from simple testing transactions.

Here is the revenue breakdown for the latest reported quarter, Q3 2025, which illustrates the current focus of customer revenue:

Total Revenues for the three months ended September 30, 2025, were RMB131.6 million (US$18.5 million).

Finance: draft 13-week cash view by Friday.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Channels

You're looking at how Burning Rock Biotech Limited gets its services and products into the hands of customers-the actual delivery mechanism. It's not just one path; it's a mix of direct engagement and centralized processing, which is shifting, honestly.

The core of the revenue generation flows through three main operational channels, and you can see the strategic pivot happening when you look at the recent quarterly numbers. The company is clearly pushing its in-hospital testing capabilities, which is a move away from relying as heavily on its central lab services.

Here's the quick math on how the revenue broke down for the two most recent quarters we have data for, as of late 2025:

The In-hospital business channel is key to their current strategy, driven by an increase in sales volume from existing contracted partner hospitals. For the three months ended June 30, 2025, this channel brought in RMB 62.5 million (US$8.7 million). By the third quarter, this revenue saw a dip to RMB 52.8 million (US$7.4 million) for the three months ended September 30, 2025, which they attribute to a decrease in sales volume. Still, this channel's gross margin was 74.4% in Q2 2025.

The Central laboratory business channel is explicitly being de-emphasized as the company transitions toward in-hospital testing. Q2 2025 revenue was RMB 40.9 million (US$5.7 million), a 16.2% decrease year-over-year, primarily due to fewer tests processed. This trend continued into Q3 2025, with revenue hitting RMB 36.8 million (US$5.2 million), representing a 7.9% decrease from the prior year period. To be fair, this channel maintained a very high gross margin of 87.9% in Q2 2025, showing its efficiency despite the volume shift.

The Pharma research and development services channel is showing significant growth and acts as a strong counterbalance. Q3 2025 revenue reached RMB 42.0 million (US$5.9 million), a 68.6% increase from the same period in 2024, fueled by increased development and testing services for pharma customers. This segment's success contributed to the overall Q3 2025 gross margin improving to 75.1%.

Data dissemination is a crucial, non-revenue-generating channel for establishing credibility and driving adoption of their testing platforms. Burning Rock Biotech Limited actively uses academic and clinical conference presentations to validate their technology.

For instance, in the third quarter of 2025, they:

• Presented study results at Cell Reports Medicine in September 2025 regarding ctDNA integration for residual disease detection post-neoadjuvant chemoradiotherapy.
• Presented PROMISE study test results at The Innovation in September 2025, detailing a multi-omics integration strategy for multi-cancer detection blood tests.

Finance: draft 13-week cash view by Friday.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Customer Segments

Late-stage cancer patients needing therapy selection testing.

Pharmaceutical companies developing targeted oncology drugs.

Hospitals and clinical institutions adopting in-house NGS testing.

Oncologists and clinicians guiding patient treatment plans.

The revenue breakdown for the three months ended September 30, 2025, shows the financial scale associated with these customer groups:

Total Revenues for the three months ended September 30, 2025, were RMB 131,600 thousand.

The pharma research and development services segment, directly serving pharmaceutical companies, showed significant growth:

• Revenue from pharma research and development services for Q3 2025 was RMB 42.0 million.
• This represented a 68.6% increase compared to RMB 24.9 million for the same period in 2024.

The in-hospital business, which serves hospitals and clinical institutions, showed a shift in volume:

• Revenue from in-hospital business for Q3 2025 was RMB 52.8 million (US$ 7.4 million).
• This was a 17.1% decrease from RMB 63.8 million in Q3 2024.
• The decrease was driven by a decrease in sales volume.

The central laboratory business, which supports therapy selection testing for late-stage cancer patients, also saw a volume reduction:

• Revenue from central laboratory business for Q3 2025 was RMB 36.8 million (US$ 5.2 million).
• This was a 7.9% decrease from RMB 40.0 million in Q3 2024.
• The decrease was primarily attributable to a decrease in the number of tests, as Burning Rock Biotech Limited continued its transition towards in-hospital testing.

Financial position as of September 30, 2025:

• Cash, cash equivalents and restricted cash stood at RMB 467.0 million (US$ 65.6 million).

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Cost Structure

You're looking at the core expenses Burning Rock Biotech Limited is managing to drive its precision oncology business forward. Honestly, for a high-tech firm like this, the cost structure is dominated by R&D and commercialization efforts, so tracking those line items is key to understanding their burn rate and efficiency.

The company has been actively managing its operating expenses, showing clear results in cost control across several departments through headcount reduction and budget measures. For instance, the General and Administrative expenses saw a massive drop in Q2 2025.

Here's the quick math on that G&A change: General and administrative expenses were RMB 31.4 million for the three months ended June 30, 2025, representing a 66.1% decrease from RMB92.8 million for the same period in 2024. That's a sharp pullback, defintely signaling a focus on leaner operations.

We can map out the key operating costs for the most recent quarters to see the trend:

You can see R&D expenses trended down from Q2 2025 (RMB 49.8 million) to Q3 2025 (RMB 41.5 million). The Selling and marketing expenses were RMB 38.4 million for Q2 2025, but ticked up slightly to RMB 41.8 million in Q3 2025. Cost of revenues, however, dropped significantly to RMB 32.8 million in Q3 2025 from RMB 40.5 million in Q2 2025.

Personnel costs are a major component driving these figures, especially within the operating expenses. The company explicitly noted cost control measures impacting staff:

• Selling and marketing expenses decreased in Q3 2025 primarily due to a decrease in staff cost from sales department reorganization and efficiency improvement.
• General and administrative expenses in Q3 2025 decreased partly due to a decrease in the general and administrative personnel's staff cost.
• Overall operating expenses reduction in Q3 2025 was driven by budget control measures and headcount reduction.

The Cost of revenues for the three months ended September 30, 2025, was RMB 32.8 million (US$4.6 million). This figure reflects the direct costs associated with generating the revenue from their testing and services business.

Finance: draft 13-week cash view by Friday.

Burning Rock Biotech Limited (BNR) - Canvas Business Model: Revenue Streams

You're looking at how Burning Rock Biotech Limited (BNR) brings in its money, which is clearly segmented across its core operational areas. The in-hospital testing service fees showed some positive momentum, recording a 4.4% year-over-year growth for the second quarter of 2025. This suggests continued adoption or increased volume within their hospital network partners during that period. The business model relies on these distinct streams to build up the top line.

Here's a look at how the three main revenue components stacked up based on recent performance snapshots:

Shifting to the third quarter of 2025, the trends became more divergent across the segments. The central laboratory testing service fees saw a contraction, posting a 7.9% decrease year-over-year, which aligns with the company's stated strategic transition toward in-hospital testing models. On the other hand, the pharma R&D service fees and milestone payments were the clear standout performer, surging by 68.6% year-over-year for the same quarter. That massive growth in pharma services definitely helped offset the dip elsewhere; honestly, it's where the high-margin action is right now.

To put the overall picture into perspective for the first nine months of 2025, the cumulative financial result was:

• Total revenue for 9M 2025 was RMB 413.2 million.
• This translated to approximately US$ 57.5 million in total revenue for the nine-month period.