Gyre: Intriguing Upcoming Data Catalyst, But I'm Still On Sidelines

(16min)

Summary

  • Gyre Therapeutics' stock is volatile - I'm upholding my "Hold" rating due to uncertain long-term prospects and potential dilution from future funding needs.
  • The company's products include Etuary, and two new generics, all approved in China, plus pipeline prospect hydronidone, with significant market opportunities in liver fibrosis and MASH.
  • Hydronidone's US advancement hinges on positive Phase 3 data from China, but even if approved by '27/28, the drug may face stiff competition from GLP-1 drugs like semaglutide and tirzepatide.
  • Despite promising candidates, high SG&A expenses and uncertain market dynamics make Gyre's long-term share price trajectory unpredictable in my view.
  • The upcoming China data catalyst could create short term upside, but after that, a long wait for more study data may weigh on Gyre's valuation.

Concept of a healthy liver. Isolated on white.

SvetaZi/iStock via Getty Images

Investment Overview

I last provided coverage on Gyre Therapeutics (NASDAQ:GYRE) for Seeking Alpha in April last year.

I discussed the company's listing on the Nasdaq, completed via a merger between Catalyst Biosciences and GNI Group, and

If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth. Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. I hope to see you there.

This article was written by

13.4K Followers

Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GYRE Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GYRE

Related Stocks

SymbolLast Price% Chg
GYRE
--