Gyre Therapeutics Reports Q2 2025 Financial Results with $1.6M Net Income

Gyre Therapeutics, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $1.6 million, a decrease from $4.5 million in the same period last year. For the first half of 2025, the company recorded a net income of $5.3 million, down from $14.5 million in the prior year. The decline in profitability is attributed to a significant drop in sales of its primary product, ETUARY®, which fell by $6.8 million, offset by increases in revenue from new products Contiva and Etorel, which contributed $1.8 million and $1.6 million, respectively.

Total revenues for the second quarter reached $26.8 million, a 6% increase from $25.2 million in the previous year, primarily driven by the commercial launch of Etorel in June 2025. However, for the six months ended June 30, 2025, revenues decreased by 7% to $48.8 million compared to $52.4 million in the same period of 2024. The company’s cost of revenues also increased, rising to $1.2 million in the second quarter, up 49% from the previous year, largely due to higher costs associated with the new product launches.

In terms of operational developments, Gyre Therapeutics has expanded its product portfolio with the successful launch of Etorel and Contiva, which are expected to help mitigate the decline in ETUARY® sales. The company has also made strategic investments in research and development, with expenses increasing by 18% to $6.5 million for the first half of 2025, reflecting ongoing clinical trials and product development efforts. The company’s total assets increased to $152.6 million as of June 30, 2025, compared to $125.4 million at the end of 2024, bolstered by cash and cash equivalents of $36.5 million.

Gyre Therapeutics has also seen a significant increase in its stockholders' equity, which rose to $129.4 million from $98.4 million at the end of 2024. This growth is attributed to successful financing activities, including a public offering that generated approximately $23 million in net proceeds. The company’s employee headcount has also increased, reflecting its expansion efforts and the need for additional personnel to support its growing operations.

Looking ahead, Gyre Therapeutics anticipates continued revenue growth driven by the commercial success of its new products and ongoing investments in its research and development pipeline. The company remains optimistic about its ability to navigate market challenges and capitalize on opportunities in the biopharmaceutical sector, particularly in the treatment of fibrotic diseases. Management believes that existing cash reserves and operational cash flows will be sufficient to fund the company’s activities for at least the next 12 months.