Gyre Therapeutics Reports $9.9 Million Net Loss in Q1 2026 Amid Increased Revenue and Operating Expenses

Gyre Therapeutics, Inc. reported a net loss of $9.9 million for the first quarter of 2026, a significant decline from a net income of $3.7 million during the same period in 2025. The loss attributable to common stockholders was $8.7 million, compared to a profit of $2.7 million in the prior year. Revenue for the quarter increased slightly to $22.5 million, up 2% from $22.1 million in the previous year, primarily driven by sales of the newly launched products ContivaTM and EtorelTM, which contributed approximately $0.5 million and $0.7 million, respectively. However, sales of the established product ETUARYTM decreased by about $0.7 million, reflecting seasonal fluctuations.

Operating expenses surged to $31.9 million, a 61% increase from $19.8 million in the prior year. This rise was largely due to a $3.3 million increase in selling and marketing expenses, driven by promotional activities for ContivaTM and EtorelTM, and a $3.6 million increase in research and development expenses, reflecting ongoing clinical trials and preclinical activities. Additionally, the company incurred $2.5 million in transaction costs related to the acquisition of Cullgen, which closed in May 2026.

As of March 31, 2026, Gyre Therapeutics had total assets of $162 million, a decrease from $166.1 million at the end of 2025. The company held cash and cash equivalents of $37.5 million, alongside short-term bank deposits of $12.3 million and long-term certificates of deposit totaling $29.4 million. The accumulated deficit increased to $77.7 million from $68.4 million at the end of the previous fiscal year. The company reported cash provided by operating activities of $3.2 million, a notable improvement from cash used in operations of $0.1 million in the same quarter of 2025.

Strategically, Gyre Therapeutics has been active in expanding its product portfolio and market presence. The acquisition of Cullgen is expected to enhance its capabilities in the PRC for developing and conducting early-stage clinical trials for various product candidates. The company is also focused on advancing its lead candidate, Hydronidone, for the treatment of liver fibrosis, with plans to initiate a Phase 2 clinical trial in the United States in 2026, pending regulatory feedback.

Looking ahead, Gyre Therapeutics anticipates that its existing cash reserves, along with cash flows from operations, will be sufficient to fund its operations and obligations for at least the next 12 months. However, the company may need to raise additional capital to support its clinical development programs and the integration of Cullgen into its operations. The management remains committed to optimizing capital allocation and prioritizing programs that address significant unmet medical needs in fibrosis and related inflammatory diseases.