Company Overview - Gyre Therapeutics is pioneering fibrosis treatment with a track record of success, evidenced by the approval of pirfenidone in China in 2011[7] - The company has treated over 150,000 IPF patients with pirfenidone[7] - Gyre has maintained an approximately 50% IPF market share in China, with over 90% share in pirfenidone in 2024[7] - Gyre's revenue grew at approximately 32% CAGR since 2017, with 2023 revenue at $113.5 million and 2024 revenue at $105.8 million[7] Hydronidone Clinical Trial Results and Regulatory Pathway - In a Phase 3 trial for CHB-associated liver fibrosis, Hydronidone showed a statistically significant ≥1-stage fibrosis regression at Week 52: 52.85% vs Placebo: 29.84% (P = 0.0002)[14] - Hydronidone also achieved a key secondary endpoint with ≥1-grade inflammation improvement without fibrosis progression at Week 52: 49.57% vs Placebo: 34.82% (P = 0.0246)[14] - Serious Adverse Events in the Hydronidone group were 4.88% (6/123) compared to 6.45% (8/124) in the Placebo group[16] - The company expects to file a New Drug Application (NDA) to NMPA in Q3 2025 for Hydronidone, seeking accelerated approval[16] Market Opportunity and Expansion - In China, the total HBV infected population is estimated at 60-70 million, with 2.6 million diagnosed compensated F2-F4 fibrosis patients as the initial target for Hydronidone[21] - The MASH fibrosis market in the U S is approximately 7 2 times larger than the CHB fibrosis market[25]

Core Viewpoint - Gyre Therapeutics reported a net income of $3.7 million for Q1 2025 and reaffirmed its full-year revenue guidance of $118 to $128 million, indicating a strategic focus on expanding its market presence and product portfolio in the organ fibrosis treatment space [1][12]. Financial Performance - Revenues for Q1 2025 were $22.1 million, down from $27.2 million in Q1 2024, primarily due to a $5.2 million decline in ETUARY sales, which was anticipated following a one-time marketing campaign in early 2024 [12][18]. - The company reported a decrease in income from operations to $2.3 million from $8.1 million year-over-year, attributed to lower revenues [18]. - Non-GAAP adjusted net income for Q1 2025 was $2.9 million, down from $8.2 million in the same period last year, reflecting the decline in revenue and a slight increase in operating expenses [18][28]. Business Highlights - The launch of avatrombopag in March 2025 is expected to enhance Gyre's presence in hepatology and hematology, targeting thrombocytopenia in adults with chronic liver disease [5][6]. - ETUARY (pirfenidone) generated $21.7 million in sales during Q1 2025, maintaining its position as the market leader for idiopathic pulmonary fibrosis (IPF) in China, despite a year-over-year sales decline [3][12]. - Nintedanib is on track for commercial launch in May 2025, aimed at treating multiple forms of fibrosing interstitial lung disease, which is anticipated to support revenue growth in the second half of 2025 [4][12]. Pipeline Development - Gyre received NMPA approval to initiate a clinical trial of pirfenidone for radiation-induced lung injury (RILI), marking its entry into oncology supportive care, with plans for an adaptive Phase 2/3 trial in the second half of 2025 [6][7]. - The company is also advancing F573, a caspase inhibitor for acute liver failure, with a Phase 2 clinical trial completion expected by the end of 2026 [8][12]. - F230, a selective endothelin receptor agonist for pulmonary arterial hypertension, is set to begin a Phase 1 trial in Q2 2025 [9]. Corporate Updates - In March 2025, Gyre appointed Ping Zhang as Executive Chairman of the Board of Directors, indicating a strategic leadership change [11]. Cash Position - As of March 31, 2025, Gyre held $51.3 million in cash, cash equivalents, and deposits, which the company believes will be sufficient to fund its operating and capital requirements for the next 12 months [12][18].