Gyre Therapeutics posted second-quarter 2026 revenue of $29.1 million, down $0.6 million, or 2%, from $29.7 million a year earlier, as higher sales of its flagship Etuary were offset by weaker collaboration revenue and softer sales of newer products.
Etuary generated $28.0 million in second-quarter sales, up from $23.5 million in the same quarter of 2025. That $4.5 million increase came as the company said focused marketing lifted volumes. The gains were partly offset by Etorel sales of $0.3 million, down from $1.6 million, and Contiva sales of $0.9 million, down from $1.5 million.
The revenue mix shifted sharply after the Astellas collaboration ended in March 2026. Collaboration revenue fell by $3.0 million in the quarter, more than wiping out the higher Etuary sales.
Costs moved in the opposite direction. Cost of revenues rose to $2.2 million from $1.2 million, up $1.0 million, or 92%. Selling and marketing expense fell to $13.8 million from $15.2 million, down $1.4 million, or 9%. Research and development jumped to $19.1 million from $8.4 million, up $10.8 million, or 129%, driven mainly by a $4.7 million increase in external clinical research costs and a $4.8 million milestone payment tied to China’s acceptance of the NDA for F351. General and administrative expense increased to $7.9 million from $7.3 million, up $0.6 million, or 8%.
Transaction costs added another $0.5 million in the quarter from the Cullgen acquisition, which closed in early May.
That spending pushed operating results deeper into the red. Loss from operations widened to $14.4 million from $2.2 million a year earlier. Net loss was $14.3 million versus $2.2 million in the prior-year quarter. Non-GAAP adjusted net loss was $12.2 million, compared with $0.6 million a year earlier.
For the first half of 2026, revenue fell to $53.5 million from $60.3 million, a decline of $6.8 million. The company said higher Gyre Pharmaceuticals revenue was more than offset by a $9.6 million drop in collaboration revenue after the Astellas agreement ended.
First-half cost of revenues rose to $3.4 million from $2.0 million. Selling and marketing expense increased to $27.9 million from $26.0 million. Research and development expense nearly doubled to $30.6 million from $16.4 million, up $14.2 million, again driven by the F351 program and the related milestone payment. General and administrative expense climbed to $18.0 million from $15.4 million. Transaction costs totaled $6.9 million, including $3.8 million tied to the terminated Pulmatrix merger proposal and $3.1 million related to the Cullgen acquisition.
The first half swung to a loss from operations of $33.3 million from income from operations of $0.3 million a year earlier. Net loss for the period was $32.8 million, compared with net income of $2.7 million in the first half of 2025.
Cash and investments totaled $103.2 million at June 30, 2026, down $12.9 million, or 11%, from $116.1 million at year-end 2025. The decline was mainly due to a $10.6 million drop in short-term investments.
On the pipeline side, China’s CDE accepted the NDA for F351 in May 2026 after the program received priority review in March. Gyre also said its phase 3 pirfenidone study in pneumoconiosis enrolled 272 patients and is expected to finish by the fourth quarter of 2026. In April, the company began an adaptive phase 2/3 trial of pirfenidone in oncology-related pulmonary complications and enrolled its first patient. The market has reacted to these announcements by moving the company's shares -0.47% to a price of $6.37. For more information, read the company's full 8-K submission here.
