Burning Rock Localizes as Investors Grow Impatient

Cancer testing company reported a widening loss in the first quarter as it spent heavily to build up its localized business model of providing services through partner hospitals Key Takeaways: Burning Rock’s revenue grew 27% in the first quarter, but its costs grew even faster as it focused on building up new revenue sources Company’s older centralized testing services contracted in the quarter due to Covid disruptions, but its newer localized service with partner hospitals posted strong growth  By Doug Young Patience is an increasingly rare commodity among U.S. investors…

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I-Mab Shaken by Management Moves, Merger Talk and Delisting Threat

Cancer drug maker has been in a wide range of market-moving headlines lately, though its stock still trades near an all-time low Key Takeaways: I-Mab was placed on a list of stocks at danger of being delisted from the U.S., just a week after it announced two major new executive appointments Company is reportedly exploring a potential sale to a western pharma giant, or a possible merger with a smaller peer By Shirley Lau There’s no shortage of market-moving news these days about up-and-coming cancer drug maker I-Mab (IMAB.US), whose…

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FAST NEWS: HutchMed Shares Plunge on U.S. Cancer Drug Rejection

The latest: HutchMed (China) Ltd. (HCM.US; 0013.HK) announced late Monday that its Surufatinib drug for the treatment of advanced neuroendocrine tumors was denied approval by the U.S. Food and Drug Administration (FDA). Looking up: The FDA indicated its denial was not related to any safety issues, but instead said that additional multi-regional clinical trials (MRCTs) more representative of the U.S. patient population would be needed to support a U.S. approval. Take Note: The FDA determined that the current data package, based on two positive Phase 3 trials in China and…

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LinkDoc Formally Withdraws Its U.S. IPO. Next Stop, Hong Kong?

Medical big data company has filed with U.S. securities regulator to officially terminate its plan to raise $200 million through a New York listing Key Takeaways: LinkDoc has formally withdrawn its plan to raise $200 million from a U.S. IPO, nine months after its 11th hour halt to the listing Three other Chinese companies with pending U.S. listings could revive their plans in the second half of this year as last year’s regulatory turmoil shows signs of receding By Doug Young Medical big data firm LinkDoc Technology Ltd. has formally…

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Cancer Drug Maker BeiGene Takes Action to Mitigate Delisting Risk

Company has changed auditors in a bid to comply with U.S. law and avoid a potential forced delisting from the Nasdaq Key Takeaways: BeiGene has switched auditors for its New York listing to a U.S. company from a Chinese one in a move to comply with U.S. law The change could reduce the company’s threat of being forcibly delisted from the Nasdaq By Doug Young It may have listings in Hong Kong and Shanghai, but cancer drug maker BeiGene Ltd. (BGNE.US; 6160.HK; 668235.SH) is making it clear it wants to…

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Hutchmed Roils Markets With Changing of Its Guard, U.S. Delisting Threat

U.S. securities regulator singles out company for potential delisting, a week after Hutchmed announced its CEO will step down after almost 22 years Key Takeaways U.S. securities regulator says Hutchmed is one of five Chinese companies in danger of delisting, a week after company announced the retirement of its longtime CEO Company’s shares have tumbled more than 40% on the developments, even as it reported strong revenue gains for 2021 and nears its first approval to sell a drug in the U.S. By Richard Barbarossa Talk about getting hit when…

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Zai Lab Revenue Triples, as It Struggles to Break Cycle of Mounting Losses

The biotech company is bringing in bigger sums from its growing stable of drugs approved for sale in China, but is also accelerating its R&D spending Key takeaways: Zai Lab reported its revenue grew 194% last year, but its loss also increased by 162% as it spent heavily on R&D and marketing The company hopes heavy R&D spending can reduce its dependence on licensed products by improving its capacity to innovate By Ken Lo A big revenue jump should be good news for a young biotech company like Zai Lab…

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Gracell Bio Shares Tumble as Investors Blow Hot, Cold Over Its Cutting-Edge Cancer Treatment

Receipt of ‘orphan drug’ designation for company’s CAR-T cancer drug in the U.S. will bring financial incentives, but also underscores drug’s limited market potential Key takeaways Gracell Bio stands to benefit from tax credits and marketing exclusivity following receipt of ‘orphan drug’ status for its CAR-T cancer treatment Analysts see profitability several years away as competition heats up for treatment of relatively low-occurring cancer By Richard Barbarosa Gracell Biotechnologies Inc. (Nasdaq:GRCL), a Chinese company developing rapid cell therapy treatments for rare cancers, has created fits of both high hopes and…

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Following Rough Year, Is Burning Rock Set to Turn the Corner?

Cancer testing specialist expects sharply slower growth this year than previous guidance due to Covid-related travel restrictions Key Takeaways: Burning Rock expects fourth-quarter revenue to grow just 6% year-on-year due to latest Covid-related travel restrictions in China Cancer testing specialist’s newer in-hospital lab business could boost growth through its strong scalability potential and lower vulnerability to Covid travel restrictions By Doug Young If it were a hospital patient, cancer testing specialist Burning Rock Biotech Ltd. (BNR.US) might be best described as in “stable condition.” That seems to be the key…

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FAST NEWS: HutchMed, AstraZeneca Launch Phase III Trials for Renal Cancer Joint Drug Treatment

The latest: HutchMed (China) Ltd. (0013.HK; HCM.US) announced that it and British drug firm AstraZeneca (AZN.L) have launched phase III global trials for a combination therapy combining the drugs Savolitinib and Imfinzi for treatment of patients with MET-driven advanced papillary renal cell cancer. The first patient was dosed in the trial on Oct. 28. Looking up: Savolitinib which goes by the commercial name Orpathys, has already been approved in China for treatment of patients with non-small cell lung cancer. The drug is currently used as a sole treatment and in…

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