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Segment Information
 9 Months Ended
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