Gyre Therapeutics Reports $14.3 Million Net Loss in Q2 2026, Revenue Declines 2%

Gyre Therapeutics, Inc. reported a net loss of $14.3 million for the three months ended June 30, 2026, compared to a net loss of $2.2 million for the same period in 2025. For the six months ended June 30, 2026, the company experienced a net loss of $32.8 million, a significant decline from a net income of $2.7 million in the prior year. Revenues for the second quarter of 2026 totaled $29.1 million, a decrease of 2% from $29.7 million in the same quarter of 2025. The decline in revenue was attributed to a decrease in collaboration revenue following the conclusion of the Astellas Agreement in March 2026, despite increased sales of the company's primary product, ETUARYTM.

Operating expenses surged to $43.5 million in the second quarter of 2026, up from $32.0 million in the prior year, driven by a 71% increase in research and development expenses, which rose to $14.3 million. This increase was largely due to higher external clinical research costs and a milestone payment related to the company's F351 product candidate. Selling and marketing expenses decreased by 9% to $13.8 million, reflecting reduced promotional spending after achieving certain objectives earlier in the year. General and administrative expenses also rose by 8% to $7.9 million, primarily due to increased personnel costs.

Gyre's balance sheet as of June 30, 2026, showed total assets of $199.3 million, down from $219.8 million at the end of 2025. The company had cash and cash equivalents of $43.3 million, a decrease from $49.2 million at the end of the previous fiscal year. The accumulated deficit increased to $138.0 million, up from $112.6 million at the end of 2025. The company attributed the changes in financial performance to increased operating expenses, particularly in research and development, and the impact of the recent merger with Cullgen, which was completed in May 2026.

The merger with Cullgen has positioned Gyre to leverage Cullgen's capabilities in the PRC for the development and early-stage clinical trials of various product candidates. Following the merger, Gyre's employee headcount increased to approximately 740, reflecting the integration of Cullgen's workforce. The company is focused on optimizing its capital allocation and prioritizing programs across its portfolio, which includes several promising drug candidates targeting organ fibrosis and inflammatory diseases.

Looking ahead, Gyre anticipates that its existing cash and cash equivalents, along with cash flows from operations and access to capital markets, will be sufficient to fund its operating activities for at least the next twelve months. The company is committed to advancing its research and development programs, particularly in light of the recent merger, and aims to enhance its market position in the biopharmaceutical sector.