Gyre Therapeutics Announces Proposed Underwritten Public Offering of Common Stock
- Proceeds will advance Phase 2 clinical trial of F351 for MASH-associated liver fibrosis
- Company has commercial-stage status in biotechnology sector
- Multiple established financial institutions supporting the offering (Jefferies and H.C. Wainwright & Co.)
- Effective shelf registration statement already in place with SEC
- Potential dilution of existing shareholders' value
- Uncertainty regarding the offering size and terms
- No guarantee of offering completion due to market conditions
Insights
Gyre is diluting shareholders through a new stock offering to fund MASH clinical trials and operations, indicating potential cash needs.
Gyre Therapeutics has announced a proposed underwritten public offering of common stock, which typically results in share dilution for existing investors. This offering structure, with Jefferies as lead book-runner and H.C. Wainwright as co-manager, suggests the company is pursuing a traditional follow-on offering to raise additional capital.
The company has stated that proceeds will fund several critical initiatives: advancing its Phase 2 clinical trial of F351 in metabolic dysfunction-associated steatohepatitis (MASH)-associated liver fibrosis in the United States, continuing research and development activities, expanding manufacturing capabilities, and supporting general corporate operations.
This financing comes despite Gyre being described as "commercial-stage," which indicates the company has revenue-generating products but likely insufficient cash flow to fully fund its clinical development programs. The MASH indication represents a substantial market opportunity, as this condition affects millions globally with few approved treatments, but requires significant capital investment for clinical development.
The offering includes a 30-day option for underwriters to purchase additional shares, a standard arrangement that could increase the total capital raised. While the company has filed a shelf registration statement (effective November 2024), specific pricing and share quantity details remain undisclosed, creating uncertainty about the exact level of dilution existing shareholders will experience.
This financing approach suggests the company may be facing cash constraints or sees an opportunity to strengthen its balance sheet before potentially more challenging market conditions. Investors should monitor the final terms and pricing of this offering to assess its immediate impact on share value and the company's new cash runway.
SAN DIEGO, May 22, 2025 (GLOBE NEWSWIRE) -- Gyre Therapeutics (“Gyre”) (Nasdaq: GYRE), an innovative, commercial-stage biotechnology company focused on organ fibrosis, today announced that it has commenced an underwritten public offering of shares of its common stock. In addition, Gyre is expected to grant the underwriters of the offering an option for a period of 30 days to purchase additional shares of its common stock at the public offering price, less the underwriting discounts and commissions. The proposed public offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering. All of the shares of common stock to be sold in the offering are being offered by Gyre.
Gyre intends to use the net proceeds from this offering, together with its existing cash and cash equivalents and cash flows from operations, to advance its Phase 2 clinical trial of F351 in metabolic dysfunction-associated steatohepatitis (“MASH”)-associated liver fibrosis in the United States, for research and development, manufacturing and scale-up, as well as for working capital and general corporate purposes.
Jefferies is acting as lead book-running manager for the offering and H.C. Wainwright & Co. is acting as co-manager for the offering.
The shares of common stock described above are being offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) that was declared effective by the SEC on November 22, 2024. The offering will be made only by means of a prospectus, including a prospectus supplement, forming a part of an effective registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website, located at www.sec.gov. Prospective investors should read the preliminary prospectus supplement and the accompanying prospectus and other documents Gyre has filed with the SEC for more complete information about Gyre and the offering. Electronic copies of the preliminary prospectus supplement and the accompanying prospectus related to the offering may also be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at prospectus_department@jefferies.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Gyre Therapeutics
Gyre Therapeutics is a biopharmaceutical company headquartered in San Diego, CA, primarily focused on the development and commercialization of Hydronidone for liver fibrosis, including MASH, in the U.S. Gyre’s strategy builds on its experience in mechanistic studies using MASH rodent models and clinical studies in CHB-induced liver fibrosis. In the People’s Republic of China, Gyre is advancing a broad pipeline through its indirect controlling interest in Gyre Pharmaceuticals, including therapeutic expansions of ETUARY, and development programs for F573, F528, and F230.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which statements are subject to substantial risks and uncertainties and are based on estimates and assumptions. All statements, other than statements of historical facts included in this press release, are forward-looking statements, including statements concerning: Gyre’s expectations regarding the offering, including the timing, size, structure and completion of the proposed offering on the anticipated terms; the grant to the underwriters of the option to purchase additional shares; and the expected use of net proceeds from the offering. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These statements reflect our plans, estimates, and expectations, as of the date of this press release. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the forward-looking statements expressed or implied in this press release. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation: risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions relating to the offering; Gyre’s ability to execute on its clinical development strategies; positive results from a clinical trial may not necessarily be predictive of the results of future or ongoing clinical trials; the timing or likelihood of regulatory filings and approvals; competition from competing products; the impact of general economic, health, industrial or political conditions in the United States or internationally; the sufficiency of Gyre’s capital resources and its ability to raise additional capital. Additional risks and factors are identified under “Risk Factors” in Gyre’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on March 17, 2025 and in other filings Gyre may make with the SEC.
Gyre expressly disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact:
David Zhang
Gyre Therapeutics
david.zhang@gyretx.com
FAQ
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