Gyre Therapeutics (GYRE) Q2 2024 earnings summary

Executive summary

• Commercial-stage biotech focused on anti-inflammatory and anti-fibrotic drugs, with ETUARY (pirfenidone) as the main revenue driver in China and a pipeline including F351 for liver fibrosis, F230 for PAH, and other candidates in clinical development.

• Net income for Q2 2024 was $4.5M, with $3.5M attributable to common stockholders; six-month net income was $14.5M, with $11.1M attributable to common stockholders.

• Revenue for Q2 2024 was $25.2M, down 14% year-over-year, mainly due to normalization after a COVID-related sales surge in 2023.

• Acquired rights to nintedanib for IPF and received PRC approval for avatrombopag for thrombocytopenia in chronic liver disease.

• Added to Russell 2000 and 3000 Indexes; appointed David M. Epstein to Board of Directors.

Financial highlights

• Q2 2024 revenue: $25.2M (down from $29.3M in Q2 2023); six-month revenue: $52.4M (down from $54.3M year-over-year).

• Q2 2024 gross profit: $24.5M; six-month gross profit: $50.6M.

• Q2 2024 net income: $4.5M (up 20% year-over-year); six-month net income: $14.5M (up 81% year-over-year).

• Q2 2024 EPS: $0.04 basic, $0.01 diluted; six-month EPS: $0.13 basic, $0.04 diluted.

• Cash, short-term deposits, and long-term certificates of deposit totaled $53.9M as of June 30, 2024; total assets were $120.9M.

Outlook and guidance

• Management expects existing cash, cash flows from operations, and access to capital markets to fund operations for at least 12 months from June 30, 2024.

• F351 Phase 3 trial in PRC for CHB-associated liver fibrosis expected to complete by end of 2024, with results in early 2025; U.S. IND submission for F351 in MASH-associated liver fibrosis planned for late 2024.

• Phase 2a trial for F351 in MASH-associated liver fibrosis planned for 2025, pending regulatory review and PRC trial results.

• Commercial launch of new products (nintedanib, avatrombopag) anticipated to support future revenue growth.