Gyre Therapeutics Reports Q1 2025 Revenue Decline to $22.1 Million

Gyre Therapeutics, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $22.1 million, a decrease of 19% from $27.2 million in the same period last year. The decline was primarily attributed to a significant drop in sales of its main product, ETUARY, which fell by $5.2 million due to a lack of repeat marketing campaigns and increased competition in the idiopathic pulmonary fibrosis (IPF) treatment market. The company also noted that economic conditions in China have weakened healthcare spending, contributing to the revenue decline. Despite this, Gyre anticipates revenue growth in the upcoming quarters, driven by the planned launch of Nintedanib in May 2025 and the continued expansion of avatrombopag.

Operating expenses for the quarter totaled $19.8 million, slightly up from $19.1 million in the prior year. The increase was primarily due to a 42% rise in research and development expenses, which reached $3.1 million, reflecting ongoing clinical trials and data analysis costs for F351. Selling and marketing expenses decreased by 14% to $10.8 million, while general and administrative expenses rose by 46% to $5.0 million, driven by higher personnel and stock compensation costs. Gyre reported a net income of $3.7 million for the quarter, down from $9.9 million a year earlier, with net income attributable to common stockholders at $2.7 million, compared to $7.5 million in the same period of 2024.

As of March 31, 2025, Gyre's total assets amounted to $129.8 million, an increase from $125.4 million at the end of 2024. The company held cash and cash equivalents of $15.0 million, up from $11.8 million, and had an accumulated deficit of $70.8 million. The number of outstanding shares of common stock was reported at 93.8 million, reflecting ongoing stock option exercises and sales under the company's at-the-market (ATM) program. Gyre's employee headcount remained stable, with no significant changes reported.

Strategically, Gyre has made significant moves to enhance its product portfolio, including the acquisition of Nintedanib, which is expected to bolster its position in the pulmonary fibrosis market. The company is also preparing to initiate commercialization of avatrombopag, which was launched in March 2025. Gyre's management believes that these strategic developments will help offset declines in ETUARY sales and drive future revenue growth. The company plans to continue investing in commercialization efforts, including market access and physician education, to maximize the long-term value of its product offerings.

Looking ahead, Gyre anticipates that its existing cash reserves, along with cash flows from operations, will be sufficient to fund its operating activities for at least the next 12 months. However, the company may need to raise additional capital to support ongoing research and development initiatives, particularly for its lead candidate F351, which is undergoing clinical trials for liver fibrosis. Gyre remains focused on expanding its market presence and enhancing shareholder value through strategic product launches and operational efficiencies.