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Segment Information
 3 Months Ended
Mar. 31, 2025
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 the 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

 

Gyre is a biopharmaceutical company focused on the development and commercialization of F351 for the treatment of MASH-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 months ended March 31, 2025 and 2024 is as follows (in thousands):

 

 

 

Three Months Ended March 31, 2025

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

22,058

 

 

$

—

 

 

$

—

 

 

$

22,058

 

Cost of revenues

 

 

894

 

 

 

—

 

 

 

—

 

 

 

894

 

Gross profit

 

 

21,164

 

 

 

—

 

 

 

—

 

 

 

21,164

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

10,841

 

 

 

—

 

 

 

—

 

 

 

10,841

 

Research and development

 

 

3,029

 

 

 

66

 

 

 

—

 

 

 

3,095

 

General and administrative

 

 

3,556

 

 

 

1,396

 

 

 

3

 

 

 

4,955

 

Total operating expenses excluding cost of revenues

 

 

17,426

 

 

 

1,462

 

 

 

3

 

 

 

18,891

 

Income (loss) from operations

 

 

3,738

 

 

 

(1,462

)

 

 

(3

)

 

 

2,273

 

Change in fair value of warrant liability

 

 

—

 

 

 

2,255

 

 

 

—

 

 

 

2,255

 

Other income, net

 

 

62

 

 

 

45

 

 

 

—

 

 

 

107

 

Income tax expense

 

 

(901

)

 

 

—

 

 

 

—

 

 

 

(901

)

Net income (loss)

 

$

2,899

 

 

$

838

 

 

$

(3

)

 

$

3,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

78

 

 

$

429

 

 

$

—

 

 

$

507

 

Stock-based compensation total

 

$

78

 

 

$

429

 

 

$

—

 

 

$

507

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Revenues

 

$

27,172

 

 

$

—

 

 

$

—

 

 

$

27,172

 

Cost of revenues

 

 

979

 

 

 

—

 

 

 

—

 

 

 

979

 

Gross profit

 

 

26,193

 

 

 

—

 

 

 

—

 

 

 

26,193

 

Operating expenses excluding cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

12,542

 

 

 

—

 

 

 

—

 

 

 

12,542

 

Research and development

 

 

2,009

 

 

 

173

 

 

 

—

 

 

 

2,182

 

General and administrative

 

 

2,257

 

 

 

1,141

 

 

 

—

 

 

 

3,398

 

Total operating expenses excluding cost of revenues

 

 

16,808

 

 

 

1,314

 

 

 

—

 

 

 

18,122

 

Income (loss) from operations

 

 

9,385

 

 

 

(1,314

)

 

 

—

 

 

 

8,071

 

Change in fair value of warrant liability

 

 

—

 

 

 

4,288

 

 

 

—

 

 

 

4,288

 

Other income, net

 

 

62

 

 

 

60

 

 

 

—

 

 

 

122

 

Income tax expense

 

 

(2,546

)

 

 

—

 

 

 

—

 

 

 

(2,546

)

Net income

 

$

6,901

 

 

$

3,034

 

 

$

—

 

 

$

9,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

—

 

 

$

11

 

 

$

—

 

 

$

11

 

Stock-based compensation total

 

$

—

 

 

$

11

 

 

$

—

 

 

$

11

 

 

The table below presents total assets as of March 31, 2025 and December 31, 2024.

 

 

 

March 31, 2025

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Total assets

 

$

122,351

 

 

$

7,074

 

 

$

365

 

 

$

129,790

 

 

 

 

December 31, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Total assets

 

$

114,248

 

 

$

10,790

 

 

$

368

 

 

$

125,406

 

 

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

 

 

 

Three Months Ended March 31, 2025

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Purchase of property and equipment

 

$

122

 

 

$

—

 

 

$

—

 

 

$

122

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

Gyre Pharmaceuticals

 

 

Gyre

 

 

Other

 

 

Consolidated

 

Purchase of property and equipment

 

$

217

 

 

$

14

 

 

$

—

 

 

$

231