Overview

• US biopharmaceutical firm's Q1 revenue rose 2% yr/yr, missing analyst expectations

• Company posted a net loss as operating expenses rose, including Cullgen acquisition costs

• Completed $300 mln all-stock acquisition of Cullgen, expanding pipeline into new disease areas

Outlook

• Gyre Therapeutics affirms 2026 revenue guidance of $100.5 mln to $111.0 mln

• Company is evaluating pipeline and clinical strategy after Cullgen acquisition; updates expected after review

Result Drivers

• NEW PRODUCT SALES - Revenue growth was primarily driven by increased sales of Contiva and Etorel, which contributed $0.5 mln and $0.7 mln, respectively, offsetting a decline in ETUARY sales

• RISING OPERATING EXPENSES - Higher selling, marketing, and research costs, including early-stage launch activities and clinical trials, drove a significant increase in operating expenses

• CULLGEN ACQUISITION COSTS - Transaction costs related to the Cullgen acquisition contributed to the rise in expenses and operating loss

Company press release: ID:nGNX4sH2k6

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$22.52 mln	$31.61 mln (3 Analysts)
Q1 Net Income		-$9.86 mln
Q1 Operating Profit		-$9.36 mln
Q1 Pretax Profit		-$9.24 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Gyre Therapeutics Inc is $18.00, about 123.9% above its May 6 closing price of $8.04

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