Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

18. 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 U.S., while all of Gyre Pharmaceuticals’ operations are in mainland China.

Gyre Pharmaceuticals

Gyre Pharmaceuticals has one major commercial drug product, ETUARY, and several product candidates in pre-clinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARY 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 F351 for the treatment of MASH-associated liver fibrosis in the United States. Other than the IP associated with F351 in the U.S., Gyre has 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, GNI HK, and Continent Pharmaceuticals U.S., Inc. 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).

Segment information for the years ended December 31, 2024 and 2023 is as follows (in thousands):

	Year Ended December 31, 2024
	Gyre Pharmaceuticals			Gyre			Other			Consolidated
Revenues	$	105,757		$	—		$	—		$	105,757
Cost of revenues		3,884			—			—			3,884
Gross profit		101,873			—			—			101,873
Operating expenses excluding cost of revenues:
Selling and marketing		57,511			—			—			57,511
Research and development		11,224			800			—			12,024
General and administrative		11,051			5,056			2			16,109
Loss on disposal of property and equipment		66			—			—			66
Total operating expenses excluding cost of revenues		79,852			5,856			2			85,710
Income (Loss) from operations		22,021			(5,856	)		(2	)		16,163
Interest income, net		1,321			232			(6	)		1,547
Other expense, net		(1,329	)		(336	)		6			(1,659	)
Change in fair value of warrant liability		—			7,167			—			7,167
Income tax expense		(5,318	)		(2	)		—			(5,320	)
Net income (loss)	$	16,695		$	1,205		$	(2	)	$	17,898
Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	—		$	—		$	—		$	—
Selling and marketing		—			—			—			—
Research and development		—			—			—			—
General and administrative		—			831			—			831
Stock-based compensation total	$	—		$	831		$	—		$	831

	Year Ended December 31, 2023
	Gyre Pharmaceuticals			Gyre			Other				Consolidated
Revenues	$	113,450		$	—		$	—			$	113,450
Cost of revenues		4,636			—			—				4,636
Gross profit		108,814			—			—				108,814
Operating expenses excluding cost of revenues:
Selling and marketing		61,159			—			—				61,159
Research and development		13,698			82			—				13,780
General and administrative		8,872			5,214			576		(1)		14,662
Acquired in-process research and development		—			83,104			—				83,104
Divestiture losses		—			—			2,711		(2)		2,711
Loss on disposal of property and equipment		628			—			—				628
Total operating expenses excluding cost of revenues		84,357			88,400			3,287				176,044
Income (Loss) from operations		24,457			(88,400	)		(3,287	)			(67,230	)
Interest income, net		1,044			—			—				1,044
Other expense, net		(1,246	)		(272	)		—				(1,518	)
Change in fair value of warrant liability		—			(9,261	)		—				(9,261	)
Income tax expense		(8,509	)		(6	)		—				(8,515	)
Net income (loss)	$	15,746		$	(97,939	)	$	(3,287	)		$	(85,480	)
Supplemental Disclosure of stock-based compensation expense
Cost of revenues	$	52		$	—		$	—			$	52
Selling and marketing		344			—			—				344
Research and development		481			—			—				481
General and administrative		1,916			4,488			—				6,404
Stock-based compensation total	$	2,793		$	4,488		$	—			$	7,281

(1) $0.6 million represents legal expense recorded in CPI during the year ended December 31, 2023.

(2) $2.7 million represents divestiture losses. See Note 8 for details.

The table below presents total assets as of December 31, 2024 and 2023.

	December 31, 2024
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	114,248	$	10,790	$	368	$	125,406

	December 31, 2023
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.

	Year Ended December 31, 2024
	Gyre Pharmaceuticals			Gyre			Other		Consolidated
Purchase of property and equipment	$	(2,301	)	$	(14	)	$	—	$	(2,315	)

	Year Ended December 31, 2023
	Gyre Pharmaceuticals			Gyre		Other		Consolidated
Purchase of property and equipment	$	(8,517	)	$	—	$	—	$	(8,517	)