GYRE THERAPEUTICS, INC. Segments Disclosure
16. |
Segment Information |
The Company is a consolidated entity comprised of two distinct operating segments: Gyre Pharmaceuticals and Gyre. 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 United States, while all of Gyre Pharmaceuticals’ operations are in mainland China.
Gyre Pharmaceuticals
Gyre Pharmaceuticals has three major commercial drug products, ETUARY®, Etorel®, and Contiva®—as well as several product candidates in preclinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARY®, Etorel®, Contiva®, and certain generic drugs. Gyre Pharmaceuticals primarily sells its pharmaceutical products to distributors in mainland China, 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 Hydronidone for the treatment of metabolic dysfunction-associated steatohepatitis (“MASH”)-associated liver fibrosis in the United States. Other than the IP associated with Hydronidone in the United States, Gyre has no other product candidates since the Company sold all of its legacy IP assets. Subsequent to October 2023, Gyre has not generated any revenue.
Other
Other represents the financial information from other subsidiaries, consisting of mainly CPI and BJC. As of December 31, 2025, CPI holds a 61.7% indirect ownership interest in Gyre Pharmaceuticals following an additional capital contribution of $1.28 million by BJC in exchange for 9,184,910 additional shares of Gyre Pharmaceuticals.
Segment information for the years ended December 31, 2025 and 2024 is as follows (in thousands):
|
|
Year Ended December 31, 2025 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Revenues |
|
$ |
116,588 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
116,588 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues |
|
|
5,416 |
|
|
|
— |
|
|
|
— |
|
|
|
5,416 |
|
Selling and marketing |
|
|
65,179 |
|
|
|
— |
|
|
|
— |
|
|
|
65,179 |
|
Research and development |
|
|
12,503 |
|
|
|
1,195 |
|
|
|
— |
|
|
|
13,698 |
|
General and administrative |
|
|
13,494 |
|
|
|
7,291 |
|
|
|
19 |
|
|
|
20,804 |
|
Loss on disposal of property and equipment |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Total operating expenses |
|
|
96,596 |
|
|
|
8,486 |
|
|
|
19 |
|
|
|
105,101 |
|
Income (Loss) from operations |
|
|
19,992 |
|
|
|
(8,486 |
) |
|
|
(19 |
) |
|
|
11,487 |
|
Interest income, net |
|
|
1,126 |
|
|
|
621 |
|
|
|
— |
|
|
|
1,747 |
|
Other expense, net |
|
|
(1,472 |
) |
|
|
(33 |
) |
|
|
— |
|
|
|
(1,505 |
) |
Change in fair value of warrant liability |
|
|
— |
|
|
|
2,707 |
|
|
|
— |
|
|
|
2,707 |
|
Income tax expense |
|
|
(4,554 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(4,556 |
) |
Net income (loss) |
|
$ |
15,092 |
|
|
$ |
(5,193 |
) |
|
$ |
(19 |
) |
|
$ |
9,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Supplemental Disclosure of stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues |
|
$ |
502 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
502 |
|
Selling and marketing |
|
|
2,250 |
|
|
|
— |
|
|
|
— |
|
|
|
2,250 |
|
Research and development |
|
|
245 |
|
|
|
— |
|
|
|
— |
|
|
|
245 |
|
General and administrative |
|
|
1,551 |
|
|
|
2,609 |
|
|
|
— |
|
|
|
4,160 |
|
Stock-based compensation total |
|
$ |
4,548 |
|
|
$ |
2,609 |
|
|
$ |
— |
|
|
$ |
7,157 |
|
|
|
Year Ended December 31, 2024 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Revenues |
|
$ |
105,757 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
105,757 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues |
|
|
3,884 |
|
|
|
— |
|
|
|
— |
|
|
|
3,884 |
|
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 |
|
|
83,736 |
|
|
|
5,856 |
|
|
|
2 |
|
|
|
89,594 |
|
Income (Loss) from operations |
|
|
22,021 |
|
|
|
(5,856 |
) |
|
|
(2 |
) |
|
|
16,163 |
|
Interest income, net |
|
|
1,321 |
|
|
|
232 |
|
|
|
(6 |
) |
|
|
1,547 |
|
Other (expense) income, 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 |
|
The table below presents total assets as of December 31, 2025 and 2024.
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Total assets |
|
$ |
138,407 |
|
|
$ |
27,369 |
|
|
$ |
356 |
|
|
$ |
166,132 |
|
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Total assets |
|
$ |
114,248 |
|
|
$ |
10,790 |
|
|
$ |
368 |
|
|
$ |
125,406 |
|
The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.
|
|
Year Ended December 31, 2025 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Purchase of property and equipment |
|
$ |
(1,190 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1,190 |
) |
|
|
Year Ended December 31, 2024 |
|
|||||||||||||
|
|
Gyre Pharmaceuticals |
|
|
Gyre |
|
|
Other |
|
|
Consolidated |
|
||||
Purchase of property and equipment |
|
$ |
(2,301 |
) |
|
$ |
(14 |
) |
|
$ |
— |
|
|
$ |
(2,315 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 27, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.