tiprankstipranks
Trending News
More News >
Gyre Therapeutics (GYRE)
NASDAQ:GYRE
Advertisement

Gyre Therapeutics (GYRE) AI Stock Analysis

Compare
818 Followers

Top Page

GYRE

Gyre Therapeutics

(NASDAQ:GYRE)

Rating:58Neutral
Price Target:
$8.50
▲(12.58% Upside)
Gyre Therapeutics' overall stock score reflects a stable financial performance with strong gross margins but challenges in profitability and cash flow. Technical indicators suggest a bearish trend, and the stock appears overvalued based on its high P/E ratio. Positive corporate events, including leadership changes and successful trial results, provide a boost to the outlook.

Gyre Therapeutics (GYRE) vs. SPDR S&P 500 ETF (SPY)

Gyre Therapeutics Business Overview & Revenue Model

Company DescriptionGyre Therapeutics, Inc., a pharmaceutical company, engages in the development and commercialization of small-molecule, anti-inflammatory, and anti-fibrotic drugs targeting organ fibrosis. It offers ETUARY (Pirfenidone), an anti-fibrotic drug approved for the treatment of idiopathic pulmonary fibrosis; and under phase 3 studies for dermatomyositis and systemic sclerosis-associated interstitial lung disease, pneumoconiosis, and diabetic kidney disease. The company is also involved the development of F351 (Hydronidone), a structural derivative of ETUARY (Pirfenidone), under Phase 3 studies for the treatment of chronic hepatitis B liver fibrosis; and under Phase 1 studies for liver fibrosis associated with nonalcoholic associated steatohepatitis. In addition, its development pipeline includes F573, under Phase 2 studies for the treatment of acute/acute-on-chronic liver failure; F528, under preclinical stage for the treatment of chronic obstructive pulmonary disease; and F230, under preclinical stage for the treatment of pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California. Gyre Therapeutics, Inc. operates as a subsidiary of GNI USA, Inc.
How the Company Makes MoneyGyre Therapeutics generates revenue primarily through the development and commercialization of its therapeutic products. The company's revenue model includes funding from government grants, partnerships with larger pharmaceutical firms, and potential royalties from successful product sales. Key revenue streams involve milestone payments from collaborations that focus on advancing drug candidates through clinical trials, licensing agreements for proprietary technologies, and eventually, sales of approved therapies. Significant partnerships with research institutions and pharmaceutical companies also contribute to Gyre's financial stability by providing access to additional resources and expertise.

Gyre Therapeutics Financial Statement Overview

Summary
Gyre Therapeutics demonstrates strong gross profit margins and a stable balance sheet with low leverage. However, challenges exist in maintaining net profitability and generating positive free cash flow. Improvements in revenue growth and operating cash flow are noted, but the decline in return on equity and negative free cash flow highlight areas for improvement.
Income Statement
65
Positive
Gyre Therapeutics shows a strong gross profit margin of 95.9% in TTM, indicating efficient cost management. However, the net profit margin has decreased from 11.4% in 2024 to 7.9% in TTM, reflecting reduced profitability. Revenue growth is positive at 1.5% in TTM, but the company experienced a revenue decline in 2024. Overall, the income statement reflects solid gross margins but challenges in maintaining net profitability.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is low at 0.015 in TTM, indicating low leverage and financial stability. Return on equity has decreased from 19.1% in 2024 to 11.2% in TTM, suggesting a decline in efficiency in generating returns for shareholders. The equity ratio is strong, highlighting a solid capital structure. Overall, the balance sheet is stable with low debt levels, but there is room for improvement in return on equity.
Cash Flow
50
Neutral
Operating cash flow has improved to $927,000 in TTM from negative figures in 2024, but free cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is negative, reflecting inefficiencies in converting net income to cash. The cash flow statement shows improvement in operating cash flow but ongoing struggles with free cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue102.19M105.76M113.45M102.29M7.34M20.95M
Gross Profit98.01M101.87M108.81M97.50M-42.00K11.79M
EBITDA11.10M17.82M20.33M10.33M-87.60M-57.37M
Net Income8.04M12.09M-92.93M2.30M-87.93M-55.54M
Balance Sheet
Total Assets152.65M125.41M116.54M84.75M55.66M94.85M
Cash, Cash Equivalents and Short-Term Investments36.49M26.67M33.51M25.18M46.85M79.35M
Total Debt1.39M1.60M409.00K613.00K2.38M1.64M
Total Liabilities23.20M27.00M38.06M12.54M14.57M18.78M
Stockholders Equity92.03M63.32M-15.83M42.52M41.09M76.07M
Cash Flow
Free Cash Flow-79.00K-5.96M17.31M-38.09M-84.59M-55.31M
Operating Cash Flow927.00K-3.64M25.89M-33.10M-83.75M-55.05M
Investing Cash Flow-5.47M-19.88M-19.76M55.43M48.19M9.66M
Financing Cash Flow24.98M2.10M2.50M-45.01M49.55M60.38M

Gyre Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.55
Price Trends
50DMA
7.58
Positive
100DMA
8.27
Negative
200DMA
9.89
Negative
Market Momentum
MACD
0.09
Negative
RSI
58.07
Neutral
STOCH
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GYRE, the sentiment is Positive. The current price of 7.55 is above the 20-day moving average (MA) of 7.47, below the 50-day MA of 7.58, and below the 200-day MA of 9.89, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GYRE.

Gyre Therapeutics Risk Analysis

Gyre Therapeutics disclosed 84 risk factors in its most recent earnings report. Gyre Therapeutics reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gyre Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
¥352.94B11.56-1.45%2.37%9.60%-12.34%
58
Neutral
$683.93M474.235.47%
55
Neutral
$1.19B222.83%35.62%49.58%
54
Neutral
$1.28B-15.64%-0.54%-6.28%
53
Neutral
$1.10B-56.95%14.99%14.42%
43
Neutral
$752.26M-50.67%41.86%10.48%
42
Neutral
$1.49B-63.96%-36.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GYRE
Gyre Therapeutics
8.18
-4.66
-36.29%
NTLA
Intellia Therapeutics
10.52
-13.11
-55.48%
XERS
Xeris Pharmaceuticals
7.75
4.87
169.10%
NRIX
Nurix Therapeutics
10.14
-13.88
-57.79%
ABCL
AbCellera Biologics
4.30
1.69
64.75%
PHVS
Pharvaris
23.12
5.27
29.52%

Gyre Therapeutics Corporate Events

Executive/Board Changes
Gyre Therapeutics Appoints Dan Weng to Board
Neutral
Aug 22, 2025

On August 18, 2025, Gyre Therapeutics appointed Dan Weng, M.D., as a Class II director to its Board of Directors. Dr. Weng, who has extensive experience in managing global clinical trials and has held leadership roles in various contract research organizations, is expected to bring strategic insight and regulatory expertise to Gyre as it expands its commercial reach and advances its multinational pipeline.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Gyre Therapeutics Appoints Ping Zhang as Interim CEO
Positive
Aug 11, 2025

On August 5, 2025, Gyre Therapeutics appointed Ping Zhang as Interim CEO following the resignation of Dr. Han Ying, who transitioned to a scientific leadership role. The company reported a net income of $1.6 million for Q2 2025 and reaffirmed its full-year revenue guidance. Gyre is progressing with its pipeline, including a pivotal Phase 3 trial of Hydronidone for CHB-associated liver fibrosis and the launch of Etorel in the PRC. The leadership change is expected to strengthen Gyre’s global expansion and accelerate its delivery of transformative therapies.

Executive/Board ChangesShareholder Meetings
Gyre Therapeutics Holds 2025 Annual Stockholders Meeting
Neutral
Jun 6, 2025

On June 4, 2025, Gyre Therapeutics, Inc. conducted its 2025 Annual Meeting of Stockholders, where all director nominees were elected and other proposals were approved. The meeting included the election of Class I directors to serve until the 2028 Annual Meeting, approval of executive compensation on a non-binding basis, and ratification of Grant Thornton Zhitong Certified Public Accountants LLP as the independent auditor for 2025.

Private Placements and Financing
Gyre Therapeutics Announces Stock Offering Agreement
Neutral
May 23, 2025

On May 22, 2025, Gyre Therapeutics, Inc. announced an underwriting agreement with Jefferies LLC to issue and sell 2,222,222 shares of common stock at $9.00 per share, with an option for underwriters to purchase an additional 333,333 shares. The company expects to raise approximately $18.5 million, which will be used to fund a Phase 2 clinical trial of F351 in the United States, as well as for research, development, and general corporate purposes. The offering is set to close on May 27, 2025, subject to customary conditions.

Product-Related AnnouncementsBusiness Operations and Strategy
Gyre Therapeutics Achieves Key Milestone in Phase 3 Trial
Positive
May 22, 2025

On May 22, 2025, Gyre Therapeutics announced that its lead compound, Hydronidone, achieved the primary endpoint in a pivotal Phase 3 trial for treating liver fibrosis in patients with chronic hepatitis B in China. The 52-week trial demonstrated a statistically significant regression in liver fibrosis with Hydronidone compared to placebo, showing favorable safety and tolerability. This milestone positions Hydronidone as a potential first-in-class therapy for CHB-associated liver fibrosis, with plans for regulatory submission in China and further trials in the U.S.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025