GYRE THERAPEUTICS, INC. Reports Q2 2024 Financial and Operational Results
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GYRE THERAPEUTICS, INC., a biopharmaceutical company specializing in the development and commercialization of therapies for fibrotic diseases, has released its Form 10-Q report for the second quarter of 2024. The report highlights the company's financial performance and key business developments during the period.
Financial Highlights
- Revenues: $52.4 million, reflecting a decrease of $1.9 million or 3% compared to the same period in 2023, primarily due to normalized anti-fibrosis drug sales and negative impact from foreign currency exchange rates.
- Gross Profit: $50.6 million, a decrease of $1.4 million or 3% from the prior year, driven by reduced sales volume.
- Income from Operations: $11.3 million, a slight decrease of $0.3 million or 3% compared to the previous year, indicating stable operational efficiency despite lower revenues.
- Net Income: $14.5 million, an increase of $6.5 million or 81% over the same period last year, attributed to improved cost management and a significant change in fair value of warrant liability.
- Net Income attributable to common stockholders: $11.1 million, up by $7.0 million or 170%, reflecting strong financial performance and effective cost control measures.
- Net Income Per Share - Basic: $0.13, compared to $0.06 in the previous year, demonstrating enhanced profitability per share.
- Net Income Per Share - Diluted: $0.04, compared to $0.05 in the previous year, indicating a slight decrease due to changes in share count and warrant liability adjustments.
Business Highlights
- Revenue Segments: The company's product revenues were mainly generated from the sale of ETUARY, which accounted for 99.3% of total revenue for the three and six months ended June 30, 2024. Sales to distributors accounted for 100% of revenue from ETUARY.
- Geographical Performance: All sales are generated in the PRC, with three major customers, Sinopharm, Resources Pharmaceutical, and Shanghai Pharmaceuticals, accounting for significant portions of total revenue.
- Sales Units: The decrease in sales volume was attributed to normalized anti-fibrosis drug sales following a surge in COVID-19-related demand in early 2023.
- New Product Launches: In May 2024, Gyre Pharmaceuticals acquired the rights to nintedanib, a small-molecule drug for the treatment of idiopathic pulmonary fibrosis, enhancing its product portfolio.
- Future Outlook: The company is prioritizing F351 for the treatment of liver fibrosis due to its large potential market and significant unmet need. A Phase 3 trial is ongoing in the PRC, with results expected by early 2025. In the U.S., an IND application for F351 is expected to be submitted in late 2024.