Gyre Therapeutics (GYRE) AI Stock Analysis

• Market Cap: $681.68M
• Dividend Yield: N/A
• Average Volume (3M): 102.52K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.84
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 579
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 90,890,380
• 10 Day Avg. Volume: 112,833
• 30 Day Avg. Volume: 102,519
• PEG Ratio: -0.56
• Price to Book (P/B): 5.95
• Price to Sales (P/S): 5.41
• P/FCF Ratio: -3.50K
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 5.54
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 46.05
• 1Y Price Target: $19.00
• Price Target Upside: 179.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $148.00M

• Rating: 61 Neutral
• Price Target: $8.00 ▲(17.47% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by improving profitability and a low-leverage balance sheet, but weighed down by weak cash conversion and negative free cash flow. Technicals also detract due to below-average price trends and negative MACD, while valuation appears demanding at ~33x earnings. Offsetting these risks, recent corporate developments (China regulatory progress and the Cullgen acquisition) add meaningful strategic upside.

Positive Factors

Very high gross and net margins

Sustained exceptionally high gross and strong net margins indicate durable pricing power and low direct costs, enabling reinvestment into R&D or commercialization. These margins provide a buffer against revenue volatility and support long-term profitability if revenue stabilizes.

Extremely low leverage and high ROE

Minimal leverage gives the company financial flexibility to fund development or weather downturns without heavy interest burdens. The high ROE reflects efficient use of equity to generate profits, a structural strength that supports long-term capital allocation and shareholder value creation.

Regulatory progress toward China approval for Hydronidone

Official CDE alignment and eligibility for conditional approval/priority review materially shortens regulatory path in a large addressable China market. This structural development can accelerate commercialization, broaden footprint, and de-risk revenue timing if confirmed.

Negative Factors

Very weak cash generation

Severely negative free cash flow growth and minimal operating cash conversion of reported earnings undermine the sustainability of operations and R&D funding. Over months this increases reliance on external financing, dilutes optionality, and raises execution risk for development programs.

Inconsistent / negative revenue growth

Large recent revenue contraction signals top-line volatility that can erode the durability of margins and complicate scaling commercialization. Persistent or variable revenue trends hinder long-term planning, strain cash flow, and increase dependence on milestone or partner funding.

Concentration risk on Hydronidone and China path

Material dependence on a single asset and a China-focused regulatory pathway concentrates commercial success risk. If regulatory setbacks or trial requirements change, the company's near-term growth and revenue prospects could be disproportionately impacted, limiting diversification.

Gyre Therapeutics Business Overview & Revenue Model

Company Description

Gyre 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 Money

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Gyre Therapeutics Financial Statement Overview

Summary

Reported profitability and margins improved materially versus 2023 and leverage is very low, supporting financial resilience. However, cash flow quality is a major weakness: free cash flow is negative in 2024–2025 and operating cash flow in 2025 is very low relative to earnings, highlighting volatility and weak cash conversion.

Income Statement

Profitability has meaningfully improved versus the large loss in 2023, with 2024–2025 returning to positive net income and very strong gross margins (~95%+). Revenue growth re-accelerated in 2025 (up ~8.7% year over year) after a slight decline in 2024, supporting a healthier trajectory. Key weakness is volatility: 2023 showed severe earnings disruption, and operating profitability (EBIT margin) has stepped down from 2024 to 2025, indicating margin pressure despite higher sales.

Balance Sheet

Leverage is very low (debt is minimal relative to equity in 2024–2025), which reduces financial risk and provides flexibility. Equity and assets expanded sharply into 2025, and returns on equity are solid in 2024–2025. The main concern is historical balance-sheet volatility, including negative equity in 2023, which signals the capital structure has not been consistently stable across cycles.

Cash Flow

Cash generation is the weakest area: free cash flow is negative in 2024 and 2025, and operating cash flow in 2025 is very low relative to reported earnings, suggesting profits are not translating well into cash. While 2023 showed strong positive operating and free cash flow, the swing back to cash burn and the sharp deterioration in free cash flow growth highlight volatility and execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	116.59M	105.76M	113.45M	102.29M	7.34M
Gross Profit	111.17M	101.87M	108.81M	97.50M	-332.00K
EBITDA	14.01M	17.82M	20.33M	10.33M	-87.64M
Net Income	18.99M	12.09M	-92.93M	2.30M	-87.93M
Balance Sheet
Total Assets	166.13M	125.41M	116.54M	84.75M	55.66M
Cash, Cash Equivalents and Short-Term Investments	52.42M	26.67M	33.51M	25.18M	46.85M
Total Debt	939.00K	1.60M	409.00K	613.00K	2.38M
Total Liabilities	23.85M	27.00M	102.59M	12.54M	14.57M
Stockholders Equity	106.03M	63.32M	-15.83M	42.52M	41.09M
Cash Flow
Free Cash Flow	-180.00K	-6.77M	17.31M	5.68M	-84.59M
Operating Cash Flow	1.01M	-3.64M	25.89M	10.68M	-83.75M
Investing Cash Flow	-474.00K	-19.88M	-19.76M	-13.81M	48.19M
Financing Cash Flow	24.38M	2.10M	2.50M	0.00	49.55M

Gyre Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GYRE, the sentiment is Negative. The current price of 6.81 is below the 20-day moving average (MA) of 8.15, below the 50-day MA of 7.94, and below the 200-day MA of 7.78, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GYRE.

Gyre Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GYRE	61 Neutral	$681.68M	33.21	5.46%	―	―	―
DAWN	61 Neutral	$2.21B	-8.98	-23.43%	―	31.11%	-46.75%
TYRA	58 Neutral	$1.99B	-13.06	-34.75%	―	―	-17.01%
KALV	57 Neutral	$850.19M	-3.32	-282.01%	―	―	-13.14%
MBX	54 Neutral	$1.42B	-13.24	-29.28%	―	―	-44.79%
TERN	52 Neutral	$4.90B	-6.99	-29.95%	―	―	12.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Gyre Therapeutics Corporate Events

Gyre Therapeutics Projects Strong Growth for Fibrosis Programs

At a March 10, 2026 investor conference, Gyre Therapeutics outlined expectations that its Hydronidone (F351) liver fibrosis program could generate approximately $400 million to $600 million in revenue within five years, while its ETUARY lung fibrosis franchise may sustain around $100 million in sales if generic competition remains limited. The company projected net margins of 20% to 25% on commercial products, highlighted that 30% to 40% of current lung fibrosis revenue comes from rheumatoid disease patients whose conditions progress to lung fibrosis, and signaled potential upside from off-label MASH use and further rheumatology-driven expansion.

Gyre’s affiliate Cullgen reported that its TRK degrader CG001419 showed validated safety at 400 mg in an Australian cohort and is now enrolling a Phase 2 U.S. pain trial at doses expected to achieve about 95% TRK degradation. The company emphasized that CG001419’s short-course dosing is designed to address NGF-class joint toxicity concerns, and noted that its degrader antibody conjugates demonstrate 10- to 100-fold higher potency than standalone degraders, with roughly half of Cullgen’s R&D staff focused on DAC conjugation and a deep degrader library enabling internal conjugation capabilities.

The most recent analyst rating on (GYRE) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Gyre Therapeutics stock, see the GYRE Stock Forecast page.

Gyre Therapeutics to Acquire Cullgen in All-Stock Merger

On March 2, 2026, Gyre Therapeutics agreed to acquire privately held Cullgen Inc. in an all-stock deal valuing Cullgen at roughly $300 million, with Cullgen to become a wholly owned subsidiary and the merger structured as a tax-free reorganization. The combination will add Cullgen’s targeted protein degrader and degrader-antibody conjugate platforms and clinical pipeline in pain, cancer and inflammatory diseases to Gyre’s commercial fibrosis franchise and China-based manufacturing and sales infrastructure.

Under the merger terms, Cullgen shareholders will receive Gyre common or Series B convertible preferred stock, while in-the-money Cullgen options roll into Gyre options and restricted stock units vest into Gyre shares, subject to a 19.99% cap on Gyre common stock issuance before conversion approval. The deal will also reshape leadership, with Cullgen CEO Ying Luo set to become Gyre’s chief executive and president while two Gyre directors, including its president, resign and the board shrinks to seven members.

To facilitate the transaction structure, Gyre plans to file a new Certificate of Designation creating Series B preferred shares that carry common-stock-equivalent dividends, limited voting rights and the ability to convert into common stock at a 5:1 ratio after stockholder approval, subject to individual ownership caps below 19.99%. The acquisition, expected to close early in the second quarter of 2026 pending customary U.S. regulatory approvals, is positioned to create a fully integrated biopharmaceutical company with revenue-generating assets and a diversified pipeline spanning fibrosis, oncology, inflammatory diseases and pain.

The most recent analyst rating on (GYRE) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Gyre Therapeutics stock, see the GYRE Stock Forecast page.

Gyre Therapeutics Advances Hydronidone Toward China Approval

On January 5, 2026, Gyre Therapeutics announced that its majority-owned Chinese subsidiary, Gyre Pharmaceuticals, had completed a Pre-New Drug Application communication meeting with China’s Center for Drug Evaluation, which agreed that existing Phase 3 data on Hydronidone support filing for conditional approval and eligibility for priority review in chronic hepatitis B–associated liver fibrosis, including early cirrhosis. The Phase 3 trial, whose topline results were disclosed on May 22, 2025, showed Hydronidone met its primary endpoint with significantly higher rates of fibrosis regression versus placebo and a favorable safety profile, and the company now plans an additional confirmatory Phase 3c outcomes study in China as part of a regulatory pathway that could accelerate Hydronidone’s entry into a large, underserved Chinese market of an estimated 2.6 million patients with clinically significant CHB-related liver fibrosis, potentially strengthening Gyre’s position in the liver fibrosis segment and broadening its commercial footprint in China.

The most recent analyst rating on (GYRE) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Gyre Therapeutics stock, see the GYRE Stock Forecast page.