Gyre Therapeutics reported third‑quarter 2025 results on November 7, 2025, posting net income of $5.9 million and revenue of $30.6 million for the quarter ended September 30. Basic earnings per share were $0.04 and adjusted EPS rose to $0.08, a beat of $0.0528 over the consensus estimate of $0.0272. The company’s full‑year revenue outlook was lowered to $115‑118 million, down from the prior $118‑128 million range, while operating income guidance was maintained at $6.9 million, reflecting a 64% increase from the prior year’s $4.1 million.
The quarter’s revenue grew 20% year‑over‑year to $30.6 million, driven by a 15% rise in sales of the flagship drug ETUARY, which generated $27.7 million. New‑product contributions also expanded: Etorel (nintedanib) added $1.5 million and Contiva (avatrombopag) added $1.2 million, up from $1.0 million and $0.9 million respectively in the same period last year. Despite the growth, revenue still missed the consensus estimate of $33.6 million, largely because the rollout of Etorel was slower than expected due to early supply‑chain and distribution challenges and uncertainty surrounding China’s centralized procurement policy.
The earnings beat was largely a result of disciplined cost management and a favorable product mix. Operating expenses grew at a slower pace than revenue, allowing operating income to rise 64% to $6.9 million. The company’s gross margin expanded to 45% from 42% year‑to‑year, driven by higher sales of the high‑margin ETUARY and the incremental contribution of the newer products. Adjusted EPS of $0.08 surpassed the consensus of $0.0272 by $0.0528, a 194% beat, underscoring the effectiveness of the company’s cost‑control program and the strength of its core portfolio.
Management explained that the downward revision of full‑year revenue guidance reflects a slower‑than‑expected commercialization of Etorel and market uncertainty in China. CEO Han Ying said, “The guidance cut is a cautious response to early supply‑chain challenges and the unpredictable nature of China’s government procurement.” She also highlighted progress on the pipeline, noting that the company is preparing to file a New Drug Application for Hydronidone in China and is working toward a U.S. IND in 2026, positioning the drug as a potential first therapy for reversing liver fibrosis in CHB patients.
The market reacted positively to the earnings beat and the company’s strong cash position of $80.3 million, which rose 57% year‑to‑date. Analysts noted that while revenue fell short of consensus, the earnings beat and margin expansion signaled operational resilience. The guidance cut, however, was viewed as a prudent adjustment to near‑term headwinds, particularly the supply‑chain delays for Etorel and the uncertainty of China’s procurement environment. Overall, the results suggest that Gyre Therapeutics remains on a solid profitability path while navigating short‑term commercial challenges and advancing its pipeline.
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