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Segment Information | 9 Months Ended
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Sep. 30, 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 United States, while all of Gyre Pharmaceuticals’ operations are in mainland China. Gyre Pharmaceuticals Gyre Pharmaceuticals has three major commercial drug products—ETUARY®, Etorel®, and Contiva®—as well as several product candidates in pre-clinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARY®, Etorel®, Contiva®, 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 Hydronidone for the treatment of MASH-associated liver fibrosis in the United States. Other than the IP associated with Hydronidone in the United States, Gyre has had 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 and BJC. 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). As of September 30, 2025, CPI holds a 61.7% indirect ownership interest in Gyre Pharmaceuticals following an additional capital contribution of $1.28 million by BJC in exchange for 9,184,910 additional shares of Gyre Pharmaceuticals. Segment information for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands):
|  | Three Months Ended September 30, 2025 |
|  | Gyre Pharmaceuticals |  |  | Gyre |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 30,564 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,564 |
Cost of revenues |  |  | 1,628 |  |  |  | — |  |  |  | — |  |  |  | 1,628 |
Gross profit |  |  | 28,936 |  |  |  | — |  |  |  | — |  |  |  | 28,936 |
Operating expenses excluding cost of revenues: |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 15,328 |  |  |  | — |  |  |  | — |  |  |  | 15,328 |
Research and development |  |  | 2,146 |  |  |  | 217 |  |  |  | — |  |  |  | 2,363 |
General and administrative |  |  | 2,595 |  |  |  | 1,713 |  |  |  | 11 |  |  |  | 4,319 |
Loss on disposal of assets, net |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |
Total operating expenses excluding cost of revenues |  |  | 20,070 |  |  |  | 1,930 |  |  |  | 11 |  |  |  | 22,011 |
Income (loss) from operations |  |  | 8,866 |  |  |  | (1,930 | ) |  |  | (11 | ) |  |  | 6,925 |
Other income, net |  |  | 510 |  |  |  | 217 |  |  |  | — |  |  |  | 727 |
Change in fair value of warrant liability |  |  | — |  |  |  | (23 | ) |  |  | — |  |  |  | (23 | )
Income tax expense |  |  | (1,691 | ) |  |  | (2 | ) |  |  | — |  |  |  | (1,693 | )
Net income (loss) |  | $ | 7,685 |  |  | $ | (1,738 | ) |  | $ | (11 | ) |  | $ | 5,936 |
Supplemental disclosure of stock-based compensation expense: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 38 |  |  | $ | — |  |  | $ | — |  |  | $ | 38 |
Selling and marketing |  |  | 24 |  |  |  | — |  |  |  | — |  |  |  | 24 |
General and administrative |  |  | 277 |  |  |  | 808 |  |  |  | — |  |  |  | 1,085 |
Stock-based compensation total |  | $ | 339 |  |  | $ | 808 |  |  | $ | — |  |  | $ | 1,147 |
|  | Nine Months Ended September 30, 2025 |
|  | Gyre Pharmaceuticals |  |  | Gyre |  |  | Other |  |  | Consolidated |
Revenues |  | $ | 79,393 |  |  | $ | — |  |  | $ | — |  |  | $ | 79,393 |
Cost of revenues |  |  | 3,673 |  |  |  | — |  |  |  | — |  |  |  | 3,673 |
Gross profit |  |  | 75,720 |  |  |  | — |  |  |  | — |  |  |  | 75,720 |
Operating expenses excluding cost of revenues: |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 41,363 |  |  |  | — |  |  |  | — |  |  |  | 41,363 |
Research and development |  |  | 8,512 |  |  |  | 371 |  |  |  | — |  |  |  | 8,883 |
General and administrative |  |  | 9,008 |  |  |  | 5,079 |  |  |  | 16 |  |  |  | 14,103 |
Loss on disposal of assets, net |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 2 |
Total operating expenses excluding cost of revenues |  |  | 58,885 |  |  |  | 5,450 |  |  |  | 16 |  |  |  | 64,351 |
Income (loss) from operations |  |  | 16,835 |  |  |  | (5,450 | ) |  |  | (16 | ) |  |  | 11,369 |
Other income, net |  |  | 335 |  |  |  | 354 |  |  |  | — |  |  |  | 689 |
Change in fair value of warrant liability |  |  | — |  |  |  | 2,444 |  |  |  | — |  |  |  | 2,444 |
Income tax expense |  |  | (3,254 | ) |  |  | (2 | ) |  |  |  |  |  | (3,256 | )
Net income (loss) |  | $ | 13,916 |  |  | $ | (2,654 | ) |  | $ | (16 | ) |  | $ | 11,246 |
Supplemental disclosure of stock-based compensation expense: |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 85 |  |  | $ | — |  |  | $ | — |  |  | $ | 85 |
Selling and marketing |  |  | 53 |  |  |  | — |  |  |  | — |  |  |  | 53 |
General and administrative |  |  | 628 |  |  |  | 1,794 |  |  |  | — |  |  |  | 2,422 |
Stock-based compensation total |  | $ | 766 |  |  | $ | 1,794 |  |  | $ | — |  |  | $ | 2,560 |
|  | 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 |
Loss on disposal of assets, net |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
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 |
Change in fair value of warrant liability |  |  | — |  |  |  | (228 | ) |  |  | — |  |  |  | (228 | )
Other expense, net |  |  | (4 | ) |  |  | (71 | ) |  |  | — |  |  |  | (75 | )
Income tax expense |  |  | (1,074 | ) |  |  | — |  |  |  | — |  |  |  | (1,074 | )
Net income (loss) |  | $ | 4,975 |  |  | $ | (2,114 | ) |  | $ | (5 | ) |  | $ | 2,856 |
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 |
Loss on disposal of assets, net |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  | 68 |
Total operating expenses excluding cost of revenues |  |  | 55,393 |  |  |  | 4,281 |  |  |  | 6 |  |  |  | 59,680 |
Income (loss) from operations |  |  | 19,785 |  |  |  | (4,281 | ) |  |  | (6 | ) |  |  | 15,498 |
Change in fair value of warrant liability |  |  | — |  |  |  | 6,973 |  |  |  | — |  |  |  | 6,973 |
Other income (expense), net |  |  | 111 |  |  |  | (136 | ) |  |  | — |  |  |  | (25 | )
Income tax expense |  |  | (5,117 | ) |  |  | — |  |  |  | — |  |  |  | (5,117 | )
Net income (loss) |  | $ | 14,779 |  |  | $ | 2,556 |  |  | $ | (6 | ) |  | $ | 17,329 |
Supplemental disclosure of stock-based compensation expense: |  |  |  |  |  |  |  |  |  |  |  |
General and administrative |  | $ | — |  |  | $ | 264 |  |  | $ | — |  |  | $ | 264 |
Stock-based compensation total |  | $ | — |  |  | $ | 264 |  |  | $ | — |  |  | $ | 264 |
The table below presents total assets as of September 30, 2025 and December 31, 2024.
|  | September 30, 2025 |
|  | Gyre Pharmaceuticals |  |  | Gyre |  |  | Other |  |  | Consolidated |
Total assets |  | $ | 130,030 |  |  | $ | 28,997 |  |  | $ | 357 |  |  | $ | 159,384 |
|  | 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.
|  | Nine Months Ended September 30, 2025 |
|  | Gyre Pharmaceuticals |  |  | Gyre |  |  | Other |  |  | Consolidated |
Purchase of property and equipment |  | $ | 1,046 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,046 |
|  | Nine Months Ended September 30, 2024 |
|  | Gyre Pharmaceuticals |  |  | Gyre |  |  | Other |  |  | Consolidated |
Purchase of property and equipment |  | $ | 2,366 |  |  | $ | 14 |  |  | $ | — |  |  | $ | 2,380 |

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