San Diego-based Gyre Therapeutics, Inc. (NASDAQ:GYRE), a pharmaceutical company with a market capitalization of $756 million and a "GOOD" financial health rating according to InvestingPro, disclosed on Thursday, May 22, 2025, that it has entered into an underwriting agreement with Jefferies LLC. The agreement pertains to a public offering of 2,222,222 shares of common stock at $9.00 each. Additionally, Gyre has granted the underwriters a 30-day option to purchase up to 333,333 additional shares.
The company anticipates netting approximately $18.5 million from this offering after deducting underwriting discounts, commissions, and other estimated offering expenses. With a strong current ratio of 3.6 and minimal debt-to-equity ratio of 0.02, these funds are intended to support the advancement of Gyre’s Phase 2 clinical trial for F351, a treatment targeting liver fibrosis associated with metabolic dysfunction-associated steatohepatitis in the United States. Remaining proceeds will be allocated to research and development, manufacturing, and general corporate purposes.
The offering is contingent on standard closing conditions and is expected to finalize on May 27, 2025. Gyre Therapeutics has agreed to indemnify the underwriters against certain liabilities, including those under the Securities Act of 1933. This offering is made under a shelf registration statement filed on November 14, 2024, and declared effective on November 22, 2024, supplemented by a prospectus filed on May 23, 2025. For comprehensive analysis and additional insights on GYRE’s valuation and growth potential, visit InvestingPro, which features 8 more exclusive ProTips and detailed financial metrics.
The details of the underwriting agreement and the opinion of Gibson, Dunn & Crutcher LLP regarding the share validity are included as exhibits in the SEC filing. This report is based on a press release statement.
In other recent news, Gyre Therapeutics has reported fourth-quarter revenue of $27.87 million and provided a full-year 2025 revenue guidance that falls short of analyst expectations. The company anticipates 2025 revenue to range between $118 million and $128 million, which is below the $135.7 million projected by analysts. This guidance includes the commercial launches of two new products, nintedanib for idiopathic pulmonary fibrosis and avatrombopag for chronic liver disease-associated thrombocytopenia, expected to launch in China. Additionally, Gyre Therapeutics announced a public offering of its common stock, with Jefferies LLC leading the offering as the book-running manager.
In clinical trial developments, Gyre Therapeutics revealed that its drug candidate Hydronidone achieved its primary endpoint in a Phase 3 trial for liver fibrosis in patients with chronic hepatitis B in China. The trial demonstrated a significant regression in liver fibrosis among patients treated with Hydronidone. Furthermore, the company plans to submit a New Drug Application in China and initiate a U.S. Phase 2 trial for Hydronidone in 2025. Gyre has also received approval from China’s National Medical Products Administration to start a trial for pirfenidone targeting radiation-induced lung injury and checkpoint inhibitor pneumonitis. These recent developments highlight Gyre Therapeutics’ ongoing efforts in advancing its pipeline and expanding its market presence.
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