XML 32 R24.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

16.

Segment Information

 

The Company is a consolidated entity comprised of two distinct operating segments: Gyre Pharmaceuticals and Gyre after the Contributions. The Company’s reportable segments are based upon internal organizational structure, the manner in which operations are managed, the criteria used by CODM to evaluate segment performance, the availability of separate financial information, and overall materiality considerations. All Gyre’s operations are within the U.S., while all of Gyre Pharmaceuticals’ operations are in mainland China.

 

Gyre Pharmaceuticals

 

Gyre Pharmaceuticals has one major commercial drug product, ETUARY, and several product candidates in pre-clinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARY 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 Pharmaceuticals also generates revenue from license agreements. However, the license agreements did not generate any revenue for the three and nine months ended September 30, 2024 and 2023.

 

Gyre

 

Gyre is a biopharmaceutical company focused on the development and commercialization of F351 for the treatment of non-alcoholic steatohepatitis-associated liver fibrosis in the United States. Other than the IP associated with F351 in the U.S., Gyre has no other product candidates since the Company sold all of its legacy IP assets prior to the closing of the Contributions. Subsequent to the closing of the Contributions, Gyre has not generated any revenue.

 

Other

 

Other represents the financial information from other subsidiaries, consisting of mainly CPI, GNI HK, and Continent Pharmaceuticals U.S., Inc. During the year ended December 31, 2023, prior to the Contributions, CPI divested almost all of its assets other than its 56.0% indirect ownership interest in Gyre Pharmaceuticals (see Note 8 – Restructuring in the Annual Report).

 

Segment information for the three and nine months ended September 30, 2024 and 2023 is as follows (in thousands):

 

 

 

Three Months Ended September 30, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

25,488

 

 

$

—

 

 

$

—

 

 

$

25,488

 

Cost of revenues

 

 

958

 

 

 

—

 

 

 

—

 

 

 

958

 

Gross profit

 

 

24,530

 

 

 

—

 

 

 

—

 

 

 

24,530

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

13,699

 

 

 

—

 

 

 

—

 

 

 

13,699

 

Research and development

 

 

2,553

 

 

 

222

 

 

 

—

 

 

 

2,775

 

General and administrative

 

 

2,225

 

 

 

1,593

 

 

 

5

 

 

 

3,823

 

Total operating expenses excluding cost of revenues

 

 

18,477

 

 

 

1,815

 

 

 

5

 

 

 

20,297

 

Income (loss) from operations

 

$

6,053

 

 

$

(1,815

)

 

$

(5

)

 

$

4,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

—

 

 

$

237

 

 

$

—

 

 

$

237

 

Stock-based compensation total

 

$

—

 

 

$

237

 

 

$

—

 

 

$

237

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

77,885

 

 

$

—

 

 

$

—

 

 

$

77,885

 

Cost of revenues

 

 

2,707

 

 

 

—

 

 

 

—

 

 

 

2,707

 

Gross profit

 

 

75,178

 

 

 

—

 

 

 

—

 

 

 

75,178

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

40,655

 

 

 

—

 

 

 

—

 

 

 

40,655

 

Research and development

 

 

7,639

 

 

 

673

 

 

 

—

 

 

 

8,312

 

General and administrative

 

 

7,031

 

 

 

3,608

 

 

 

6

 

 

 

10,645

 

Total operating expenses excluding cost of revenues

 

 

55,325

 

 

 

4,281

 

 

 

6

 

 

 

59,612

 

Income (loss) from operations

 

$

19,853

 

 

$

(4,281

)

 

$

(6

)

 

$

15,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

—

 

 

$

264

 

 

$

—

 

 

$

264

 

Stock-based compensation total

 

$

—

 

 

$

264

 

 

$

—

 

 

$

264

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

32,042

 

 

$

—

 

 

$

—

 

 

$

32,042

 

Cost of revenues

 

 

1,184

 

 

 

—

 

 

 

—

 

 

 

1,184

 

Gross profit

 

 

30,858

 

 

 

—

 

 

 

—

 

 

 

30,858

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

13,928

 

 

 

—

 

 

 

—

 

 

 

13,928

 

Research and development

 

 

3,009

 

 

 

—

 

 

 

—

 

 

 

3,009

 

General and administrative

 

 

1,159

 

 

 

—

 

 

 

(2

)

 

 

1,157

 

Total operating expenses excluding cost of revenues

 

 

18,096

 

 

 

—

 

 

 

(2

)

 

 

18,094

 

Income from operations

 

$

12,762

 

 

$

—

 

 

$

2

 

 

$

12,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation total

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

86,302

 

 

$

—

 

 

$

—

 

 

$

86,302

 

Cost of revenues

 

 

3,386

 

 

 

—

 

 

 

—

 

 

 

3,386

 

Gross profit

 

 

82,916

 

 

 

—

 

 

 

—

 

 

 

82,916

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

44,695

 

 

 

—

 

 

 

—

 

 

 

44,695

 

Research and development

 

 

9,212

 

 

 

—

 

 

 

—

 

 

 

9,212

 

General and administrative

 

 

4,055

 

 

 

—

 

 

 

552

 

 

 

4,607

 

Total operating expenses excluding cost of revenues

 

 

57,962

 

 

 

—

 

 

 

552

 

 

 

58,514

 

Income (loss) from operations

 

$

24,954

 

 

$

—

 

 

$

(552

)

 

$

24,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation total

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

The table below presents total assets as of September 30, 2024 and December 31, 2023.

 

 

 

September 30, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Total assets

 

$

113,682

 

 

$

10,646

 

 

$

912

 

 

$

125,240

 

 

 

 

December 31, 2023

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Total assets

 

$

101,761

 

 

$

13,865

 

 

$

913

 

 

$

116,539

 

 

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Purchase of property and equipment

 

$

2,366

 

 

$

14

 

 

$

—

 

 

$

2,380

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Purchase of property and equipment

 

$

6,193

 

 

$

—

 

 

$

—

 

 

$

6,193