Gyre Therapeutics Q2 Revenue Misses Estimates

Gyre Therapeutics reported Q2 revenue of $22.1M, missing estimates of $28.4M. The company also announced its first dosing in a Phase 1 trial of F230 for pulmonary arterial hypertension in China and closed a $23M public offering. Additionally, Gyre Therapeutics met the primary endpoint for its compound to treat liver fibrosis and reaffirmed its earnings guidance for the full year 2025.

Title: Gyre Therapeutics Reports Mixed Q2 2025 Financial Results, Launches New Products, and Advances Pipeline

Gyre Therapeutics (NASDAQ: GYRE) reported its Q2 2025 financial results, with revenue of $26.8 million, falling short of analysts' estimates of $28.4 million. The company also announced significant developments in its pipeline and a leadership transition.

Key highlights include the positive Phase 3 results for Hydronidone in CHB-associated liver fibrosis, the successful launch of Etorel for SSc-ILD and PF-ILD treatments, and NMPA approval for pirfenidone clinical trials. Despite these advancements, the company faced a decline in profitability, with Q2 net income dropping to $1.6 million from $4.5 million in Q2 2024.

Gyre Therapeutics launched Etorel in China in June 2025, generating $1.6 million in sales during the first partial quarter. Additionally, the company initiated commercialization of Contiva in China in March 2025, generating $1.5 million in sales for the second quarter. These new products helped offset the decline in ETUARY® sales, which fell by 6.9% year-over-year due to a non-recurring rural marketing campaign in 2024, weaker economic conditions in China, and increased competition.

The company's cash position remained strong at $75.9 million, bolstered by a recent $23 million public offering. Operating expenses increased across all categories, with a notable 44.1% jump in G&A expenses to $4.8 million for Q2.

Leadership changes were also announced, with Executive Chairman Ping Zhang stepping in as interim CEO while Dr. Han Ying transitions to SVP of Science. This restructuring prioritizes commercial expansion over scientific leadership at the executive level.

Looking ahead, Gyre Therapeutics is well-positioned to grow its footprint in the United States with planned Phase 2 trials for Hydronidone in MASH-associated liver fibrosis and a Phase 2/3 trial for pirfenidone in oncology-related pulmonary complications. The company remains on track to file an NDA for Hydronidone with the NMPA in the third quarter of 2025.

References
[1] https://www.stocktitan.net/news/GYRE/gyre-therapeutics-reports-second-quarter-2025-and-year-to-date-ooejb0p9l3ta.html