Key NGS certificate terminated registration, facing a vacuum period of good news Burning Rock Biotech Ltd. Sponsored ADR Class A (BNR.US) stock price fell more than 40% on the 5th.

On May 25, the National Medical Products Administration updated the registration status of medical devices. It shows that the circulating tumor DNA multi-gene mutation detection reagent kit (reversible terminator sequencing method) sponsored by Burning Rock Biotech Ltd. Sponsored ADR Class A (BNR.US) has been "terminated registration". This is not good news for Burning Rock Biotech Ltd. Sponsored ADR Class A, which is currently in a downward trend. It is observed that after reaching a near 4-year high of $41.72 on January 21 this year, Burning Rock Biotech Ltd. Sponsored ADR Class A entered a 4-month downward cycle. On May 21, the company's stock price fell to $16.32, a decrease of 60.88% from the previous high. On May 22, the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A fell significantly by 11.09%, initiating a rapid decline. Over the next 4 trading days, the company's stock price continued to fall for "five consecutive days", totaling a decline of 42.89%. On May 29, the company closed down by 7.72%, reaching a low of $9.01 during the day, erasing all gains since October 21, 2025. Is the primary capital "washing the plate" with negative news? Looking back at the trend of Burning Rock Biotech Ltd. Sponsored ADR Class A from January 22 until now, investors can easily see that the logic of the decline in Burning Rock Biotech Ltd. Sponsored ADR Class A stock price during this period was not consistent. Taking a longer-term perspective, it can be seen that after hitting a high of $41.72 on January 22, Burning Rock Biotech Ltd. Sponsored ADR Class A stock price entered a technical downtrend adjustment period. It can be seen that on January 14, 15, and 22, the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A saw significant increases, with daily increases of 18.49%, 16.83%, and 32.20% respectively. At this time, the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A had been running along the upper rail of the BOLL line for almost half a month. The corresponding RSI indicators had exceeded 80 on January 15 and 22, forming a head-and-shoulders pattern above the 80 overbought index line, indicating a clear downward reversal signal. Starting from January 23, as the RSI indicator showed a dead cross, the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A began a round of downward technical adjustment. On January 24, Burning Rock Biotech Ltd. Sponsored ADR Class A dropped significantly by 14.59%, with a daily trading volume of only 31,000 shares. Over the next half month, daily trading volumes even fell below 10,000 shares, showing a trend of declining volume. The endpoint of this downward trend was on March 13. After the release of the Q4 financial report before March 13, the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A quickly fell, and within half an hour, there was a sharp drop, with the price falling below the daily average line by more than 10%. Although there were 2 subsequent rebounds, the bullish forces were continuously suppressed, resulting in the stock price being firmly controlled by bearish forces for the rest of the day, the stock price was far from the daily average line, and it closed down by 29.93%. Afterward, Burning Rock Biotech Ltd. Sponsored ADR Class A showed obvious signs of bottoming out in the market. On March 23, the daily K line formed a long upper shadow indicating the "hanging man" pattern. After a period of volatility at the end of March and the beginning of April, there were "four consecutive gains" from April 13 to 16, driving the stock price to break through the upper rail of the BOLL line. Although the stock price later fell back near the middle rail of the BOLL line, considering the changes in trading volume in the market, during the period leading up to May 21, while the stock of Burning Rock Biotech Ltd. Sponsored ADR Class A was falling and fluctuating, there was almost no "accumulation volume" in the market. This indicated that the main capital was still present in the market but chose to continue washing the plate with ongoing declines. The negative news on May 25 appeared to have given the primary capital an opportunity to continue washing the plate. Looking at the chip distribution of Burning Rock Biotech Ltd. Sponsored ADR Class A, after the major drop on May 22, the chip distribution showed a bimodal shape around $15 and $20, but both were well below the average chip cost of $21.44, with the profit ratio inside the market dropping to 0%. As the stock price continued to fall, the bimodal chip shape began to gather around $17.20, and at the same time, there was buying interest below $9, leading to a profit ratio of 0.25%. This signal indicated that a one-way decline in stock price might not help the main capital to further accumulate chips. Combining the oversold RSI indicator of 7.04, a technical rebound in the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A may be imminent. When will the stock price rebound? The nearly 200% cumulative increase in the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A in 2025 is essentially a secondary market's positive feedback on the profit expectations of Burning Rock Biotech Ltd. Sponsored ADR Class A. It is understood that in 2025, while the company's revenue steadily increased, there was a significant improvement in operational efficiency: the company achieved a revenue of RMB 540 million for the full year, an increase of 4.6% year-on-year, with overseas revenue of RMB 101 million; during the reporting period, the company's net loss was RMB 55.35 million, a significant decrease of 84.0% compared to RMB 347 million in 2024. In the Q4 of 2025, what is worth noting about Burning Rock Biotech Ltd. Sponsored ADR Class A is that its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) turned positive for the first time, with a profit of RMB 370 thousand for the quarter, and a net operating cash inflow of RMB 23.04 million for two consecutive quarters. As of December 31, 2025, the company's cash, cash equivalents, and restricted cash totaled RMB 481 million. Although the positive adjusted EBITDA signifies the company's profitability in the period and marks the final milestone before turning a profit, Burning Rock Biotech Ltd. Sponsored ADR Class A did not achieve a net profit in the Q4 of 2025. The company's net loss for the period still amounted to RMB 15.38 million, which did not meet market expectations, leading to the stock price falling nearly 30% in a single day after the financial report was released. Apart from the net profit, Burning Rock Biotech Ltd. Sponsored ADR Class A has 2 catalysts in 2026, namely the lung cancer NGS blood test kit that entered the priority approval channel at the end of 2024 and is expected to be approved in the first half of this year; as well as the domestically developed breast cancer NGS companion diagnostic test kit also entering the priority approval channel by CMDE, which was also expected to be approved within the year. Now, with the announcement of the "termination of registration" of the lung cancer NGS blood test kit that had entered the priority approval channel, there is a significant negative impact on the stock price of Burning Rock Biotech Ltd. Sponsored ADR Class A in the short term, as the approval of the lung cancer NGS blood test kit was a key catalyst for the company's stock price in the first half of 2026. After the outbreak of market panic, investors should be aware that the "termination of registration review" actually refers to the end of the evaluation phase of a project without obtaining a registration certificate, which may be due to the company's voluntary withdrawal or the legal termination of the evaluation process. Moreover, this does not involve other NGS kits that Burning Rock Biotech Ltd. Sponsored ADR Class A has already launched. Based on current public information, the breast cancer NGS companion diagnostic test kit that has entered the CMDE priority approval channel is still in the approval process. This remains one of the important catalysts for the company's stock price this year. In the short-term market trend, Burning Rock Biotech Ltd. Sponsored ADR Class A is currently experiencing a "vacuum period" of positive news after the setback of the lung cancer NGS blood test kit approval. It may be difficult to form a bullish force in the short term until the trend reversal point appears shortly before the company's mid-2026 financial report is released.