| Segment Information |
15. Segment Information The Company is a consolidated entity comprised of two reporting segments: Gyre Pharmaceuticals, and Gyre. The Company’s reportable segments are based upon internal organizational structure, the manner in which operations are managed, the criteria used by the CODM to evaluate segment performance, the availability of separate financial information, and overall materiality considerations. Gyre's operations are primarily located in the United States and Shanghai, China, and Gyre Pharmaceuticals' operations are primarily located in mainland China. Gyre Pharmaceuticals Gyre Pharmaceuticals has three major commercial drug products, ETUARYTM, EtorelTM, and ContivaTM—as well as several product candidates in pre-clinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARYTM, EtorelTM, ContivaTM and certain generic drugs. Gyre Pharmaceuticals primarily sells its pharmaceutical products to distributors in the PRC, who ultimately sell the products to hospitals, other medical institutions and pharmacies. Gyre Gyre is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of innovative therapies for the treatment of cancer, inflammatory diseases and organ fibrosis. The Company's pipeline includes F351 for the treatment of MASH-associated liver fibrosis in the United States, as well as targeted protein degrader and degrader-antibody conjugate therapies under development including CG001419 for pain and solid tumors and CG009301 for acute myeloid leukemia (“AML”) in China. The Company is primarily engaged in research and development activities and does not currently generate commercial product revenue. Segment information for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands):
|
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|
Three Months Ended June 30, 2026 |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Total |
|
Revenues |
|
$ |
29,097 |
|
|
$ |
8 |
|
|
$ |
29,105 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
2,209 |
|
|
|
— |
|
|
|
2,209 |
|
Selling and marketing |
|
|
13,754 |
|
|
|
— |
|
|
|
13,754 |
|
Research and development |
|
|
9,697 |
|
|
|
4,603 |
|
|
|
14,300 |
|
Research and development - related parties |
|
|
4,836 |
|
|
|
— |
|
|
|
4,836 |
|
General and administrative |
|
|
4,268 |
|
|
|
3,594 |
|
|
|
7,862 |
|
Transaction costs |
|
|
— |
|
|
|
502 |
|
|
|
502 |
|
Total segment operating expenses |
|
|
34,764 |
|
|
|
8,699 |
|
|
|
43,463 |
|
Loss from segment operations |
|
|
(5,667 |
) |
|
|
(8,691 |
) |
|
|
(14,358 |
) |
Other segment (loss) income, net: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
252 |
|
|
|
488 |
|
|
|
740 |
|
Other expense, net |
|
|
(391 |
) |
|
|
(552 |
) |
|
|
(943 |
) |
Change in fair value of warrant liability |
|
|
— |
|
|
|
132 |
|
|
|
132 |
|
Benefit (provision) for income taxes |
|
|
165 |
|
|
|
(1 |
) |
|
|
164 |
|
Net segment (loss) income |
|
$ |
(5,641 |
) |
|
$ |
(8,624 |
) |
|
$ |
(14,265 |
) |
Reconciliation of profit or loss |
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|
|
|
|
|
|
|
|
Other general and administrative expenses |
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|
|
|
|
|
|
|
5 |
|
Total Consolidated net loss |
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|
|
|
|
|
|
$ |
(14,270 |
) |
Supplemental disclosure of stock-based compensation expense: |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
122 |
|
|
$ |
— |
|
|
$ |
122 |
|
Selling and marketing |
|
|
661 |
|
|
|
— |
|
|
|
661 |
|
Research and development |
|
|
79 |
|
|
|
— |
|
|
|
79 |
|
General and administrative |
|
|
344 |
|
|
|
627 |
|
|
|
971 |
|
Stock-based compensation total |
|
$ |
1,206 |
|
|
$ |
627 |
|
|
$ |
1,833 |
|
|
|
|
|
|
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Six Months Ended June 30, 2026 |
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|
Gyre Pharmaceuticals |
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|
Gyre |
|
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Total |
|
Revenues |
|
$ |
51,616 |
|
|
$ |
1,919 |
|
|
$ |
53,535 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
3,436 |
|
|
|
— |
|
|
|
3,436 |
|
Selling and marketing |
|
|
27,890 |
|
|
|
— |
|
|
|
27,890 |
|
Research and development |
|
|
15,163 |
|
|
|
10,618 |
|
|
|
25,781 |
|
Research and development - related parties |
|
|
4,836 |
|
|
|
— |
|
|
|
4,836 |
|
General and administrative |
|
|
9,025 |
|
|
|
9,007 |
|
|
|
18,032 |
|
Transaction costs |
|
|
— |
|
|
|
6,886 |
|
|
|
6,886 |
|
Total segment operating expenses |
|
|
60,350 |
|
|
|
26,511 |
|
|
|
86,861 |
|
Loss from segment operations |
|
|
(8,734 |
) |
|
|
(24,592 |
) |
|
|
(33,326 |
) |
Other segment (loss) income, net: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
517 |
|
|
|
966 |
|
|
|
1,483 |
|
Other expense, net |
|
|
(818 |
) |
|
|
(12 |
) |
|
|
(830 |
) |
Change in fair value of warrant liability |
|
|
— |
|
|
|
220 |
|
|
|
220 |
|
Benefit (provision) for income taxes |
|
|
(456 |
) |
|
|
71 |
|
|
|
(385 |
) |
Net segment loss |
|
$ |
(9,491 |
) |
|
$ |
(23,347 |
) |
|
$ |
(32,838 |
) |
Reconciliation of profit or loss |
|
|
|
|
|
|
|
|
|
Other general and administrative expenses |
|
|
|
|
|
|
|
|
11 |
|
Consolidated net loss |
|
|
|
|
|
|
|
$ |
(32,849 |
) |
Supplemental disclosure of stock-based compensation expense: |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
300 |
|
|
$ |
— |
|
|
$ |
300 |
|
Selling and marketing |
|
|
1,646 |
|
|
|
— |
|
|
|
1,646 |
|
Research and development |
|
|
194 |
|
|
|
— |
|
|
|
194 |
|
General and administrative |
|
|
779 |
|
|
|
1,739 |
|
|
|
2,518 |
|
Stock-based compensation total |
|
$ |
2,919 |
|
|
$ |
1,739 |
|
|
$ |
4,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 (As Recast) |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Total |
|
Revenues |
|
$ |
26,771 |
|
|
$ |
2,963 |
|
|
$ |
29,734 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
1,151 |
|
|
|
— |
|
|
|
1,151 |
|
Selling and marketing |
|
|
15,195 |
|
|
|
— |
|
|
|
15,195 |
|
Research and development |
|
|
3,337 |
|
|
|
5,014 |
|
|
|
8,351 |
|
General and administrative |
|
|
2,858 |
|
|
|
4,417 |
|
|
|
7,275 |
|
Total segment operating expenses |
|
|
22,541 |
|
|
|
9,431 |
|
|
|
31,972 |
|
Income (loss) from segment operations |
|
|
4,230 |
|
|
|
(6,468 |
) |
|
|
(2,238 |
) |
Other segment (loss) income, net: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
271 |
|
|
|
670 |
|
|
|
941 |
|
Other (expense) income, net |
|
|
(507 |
) |
|
|
19 |
|
|
|
(488 |
) |
Change in fair value of warrant liability |
|
|
- |
|
|
|
212 |
|
|
|
212 |
|
Provision for income taxes |
|
|
(662 |
) |
|
|
- |
|
|
|
(662 |
) |
Net segment income (loss) |
|
$ |
3,332 |
|
|
$ |
(5,567 |
) |
|
$ |
(2,235 |
) |
Reconciliation of profit or loss |
|
|
|
|
|
|
|
|
|
Other general and administrative expenses |
|
|
|
|
|
|
|
|
2 |
|
Total Consolidated net loss |
|
|
|
|
|
|
|
$ |
(2,237 |
) |
Supplemental disclosure of stock-based compensation expense: |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
47 |
|
|
$ |
— |
|
|
$ |
47 |
|
Selling and marketing |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
General and administrative |
|
|
273 |
|
|
|
709 |
|
|
|
982 |
|
Research and development |
|
|
— |
|
|
|
62 |
|
|
|
62 |
|
Stock-based compensation total |
|
$ |
349 |
|
|
$ |
771 |
|
|
$ |
1,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 (As Recast) |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Total |
|
Revenues |
|
$ |
48,829 |
|
|
$ |
11,476 |
|
|
$ |
60,305 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
2,045 |
|
|
|
— |
|
|
|
2,045 |
|
Selling and marketing |
|
|
26,035 |
|
|
|
— |
|
|
|
26,035 |
|
Research and development |
|
|
6,366 |
|
|
|
10,076 |
|
|
|
16,442 |
|
General and administrative |
|
|
6,414 |
|
|
|
9,062 |
|
|
|
15,476 |
|
Total segment operating expenses |
|
|
40,860 |
|
|
|
19,138 |
|
|
|
59,998 |
|
Income (loss) from segment operations |
|
|
7,969 |
|
|
|
(7,662 |
) |
|
|
307 |
|
Other segment (loss) income, net: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
555 |
|
|
|
1,242 |
|
|
|
1,797 |
|
Other (expense) income, net |
|
|
(729 |
) |
|
|
428 |
|
|
|
(301 |
) |
Change in fair value of warrant liability |
|
|
— |
|
|
|
2,467 |
|
|
|
2,467 |
|
Provision for income taxes |
|
|
(1,563 |
) |
|
|
— |
|
|
|
(1,563 |
) |
Net segment income (loss) |
|
$ |
6,232 |
|
|
$ |
(3,525 |
) |
|
$ |
2,707 |
|
Reconciliation of profit or loss |
|
|
|
|
|
|
|
|
|
Other general and administrative expenses |
|
|
|
|
|
|
|
|
5 |
|
Total Consolidated net loss |
|
|
|
|
|
|
|
$ |
2,702 |
|
Supplemental disclosure of stock-based compensation expense: |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
47 |
|
|
$ |
— |
|
|
$ |
47 |
|
Selling and marketing |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
General and administrative |
|
|
351 |
|
|
|
1,373 |
|
|
|
1,724 |
|
Research and development |
|
|
— |
|
|
|
143 |
|
|
|
143 |
|
Stock-based compensation total |
|
$ |
427 |
|
|
$ |
1,516 |
|
|
$ |
1,943 |
|
The table below presents total assets as of June 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other Unallocated Amount |
|
|
Consolidated |
|
Total assets |
|
$ |
139,241 |
|
|
$ |
59,657 |
|
|
$ |
357 |
|
|
$ |
199,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 (As Recast) |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other Unallocated Amount |
|
|
Consolidated |
|
Total assets |
|
$ |
138,407 |
|
|
$ |
81,000 |
|
|
$ |
356 |
|
|
$ |
219,763 |
|
The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other Unallocated Amount |
|
|
Consolidated |
|
Purchase of property and equipment |
|
$ |
386 |
|
|
$ |
54 |
|
|
$ |
— |
|
|
$ |
440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 (As Recast) |
|
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other Unallocated Amount |
|
|
Consolidated |
|
Purchase of property and equipment |
|
$ |
378 |
|
|
$ |
79 |
|
|
$ |
— |
|
|
$ |
457 |
|
|