0000950170-24-058642 | 10-Q | XBRL Viewer

Revenue - Summary of Sales by Product Categories (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total	$ 27,172	$ 24,931
Sales of Pharmaceutical Products
Disaggregation of Revenue [Line Items]
Total	$ 27,172	$ 24,931

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Lessee Disclosure [Abstract]

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities	$	139	$	127

Schedule of Present Value Assumptions used in Calculating Present Value of Lease Payments

The present value assumptions used in calculating the present value of the lease payments were as follows:


	March 31, 2024			December 31, 2023
Weighted-average remaining lease term	2.7 years			2.2 years
Weighted-average discount rate		4.80	%		4.78	%

Schedule of Maturity of Operating Lease Liabilities

As of March 31, 2024, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
Remaining in 2024	$	85
2025		103
2026		106
Total undiscounted lease payments		294
Less: imputed interest		(19	)
Total lease liabilities		275
Less: current portion of lease liabilities		(100	)
Lease liabilities, net of current portion	$	175

Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 26
2025	34
2026	34
2027	33
2028	18
Thereafter	51
Intangible assets, net	$ 196	$ 205

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets

The gross carrying amounts and accumulated amortization of the Company’s intangible assets with determinable lives as of March 31, 2024 and December 31, 2023 were as follows (in thousands):


	March 31, 2024
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(295	)	$	135
Computer software		171		(110	)		61
Total intangible assets	$	601	$	(405	)	$	196


	December 31, 2023
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(290	)	$	140
Computer software		171		(106	)		65
Total intangible assets	$	601	$	(396	)	$	205

Schedule of Estimated Future Amortization Expense

Based on finite-lived intangible assets recorded as of March 31, 2024, the estimated future amortization expense is as follows (in thousands):


	Estimated amortization expense
2024	$	26
2025		34
2026		34
2027		33
2028		18
Thereafter		51
Total	$	196

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Fair Value Measurements and Financial Instruments - Summary of Assumptions to Fair Value of Warrant Liability Based on Black-Scholes Option Pricing Model (Detail)	Mar. 31, 2024 $ / shares	Dec. 31, 2023 $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants share price per share	$ 17.48	$ 25.7
Term (years)	9 years 6 months 29 days	9 years 9 months 29 days
Warrants exercise price per share	$ 4,915	$ 4,915
Risk-Free Interest
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	4.2	3.88
Expected Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	84	84

Nature of Operations and Liquidity

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Liquidity


1.	Nature of Operations and Liquidity

Description of Business

Gyre Therapeutics, Inc. (the “Company,” “Gyre,” or the “combined company”), formerly known as Catalyst Biosciences, Inc. (“Catalyst”), is a biopharmaceutical company originally incorporated in Delaware on March 7, 1997 under the name Targacept, Inc. Catalyst was a biopharmaceutical company with expertise in protease engineering. Prior to ceasing research and development activities in March 2022, Catalyst had several protease assets that were designed to address unmet medical needs in disorders of the complement or coagulation systems.

On October 30, 2023, the Company consummated the transactions (the “Contributions”) contemplated by the Business Combination Agreement as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”), which were accounted for as a reverse asset acquisition and a purchase of noncontrolling interest in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). Continent Pharmaceuticals Inc. (“CPI”) was treated as the accounting acquirer of the reverse asset acquisition and is presented as the predecessor for post-acquisition financial reporting purposes. CPI holds an indirect controlling interest in Beijing Continent Pharmaceuticals Co., Ltd. (d/b/a Gyre Pharmaceuticals Co., Ltd., “Gyre Pharmaceuticals”), a commercial-stage biopharmaceutical company registered and established in the People’s Republic of China (“PRC”) in 2002.

After consummation of the Contributions, the immediate holding company of CPI became Gyre. The Company holds in aggregate a 65.2% indirect interest in Gyre Pharmaceuticals. The majority shareholder of Gyre is GNI USA, Inc. (“GNI USA”), which is indirectly wholly owned by GNI Group Ltd. (“GNI Japan”). Gyre is a financially-sustainable pharmaceutical company with a record of financial success that develops and commercializes small-molecule anti-inflammatory and anti-fibrotic drugs targeting organ diseases, focusing specifically on organ fibrosis. Fibrotic diseases represent a large patient population with significant unmet medical needs.

Liquidity

For the three months ended March 31, 2024, the Company had net income of $9.9 million, while net cash provided by operating activities was $2.9 million. As of March 31, 2024, the Company had an accumulated deficit of $78.0 million and cash and cash equivalents of $29.8 million. Based on the Company’s current operating plan, management believes that existing cash and cash equivalents, cash flows from operations, and access to capital markets will be sufficient to fund the Company’s operating activities and obligations for at least 12 months following the issuance of these condensed consolidated financial statements.

Subsequent Events - Additional Information (Detail) ¥ in Millions, $ in Millions		1 Months Ended
	Oct. 15, 2021 USD ($)	May 31, 2024 CNY (¥) Installment	May 31, 2024 USD ($) Installment	Apr. 30, 2024 USD ($) m²	Nov. 30, 2023 m²	Dec. 31, 2022 m²
Subsequent Event [Line Items]
Square meter area of office space under lease \| m²					640	180
2021 ATM Program
Subsequent Event [Line Items]
Proceeeds from issuance of aggregate gross sales	$ 50.0
Percentage of commission for shares sold	3.00%
Subsequent Event
Subsequent Event [Line Items]
Payments for leasing costs				$ 0.3
Monthly lease payment				$ 0.1
Inital lease term				3 years
Lease commencement date				Jun. 02, 2024
Lease expiration date				Jun. 01, 2027
Option to extend				The lease arrangement provides two options to extend for an additional three years beyond the initial lease term.
Lessee, Operating Lease, Existence of Option to Extend [true false]				true
Renewal term				3 years
Subsequent Event \| Jiangsu Wangao Agreement
Subsequent Event [Line Items]
Minimum payments based on spot exchange rate		¥ 35.0	$ 4.8
Upfront transfer fee		¥ 15.0	$ 2.1
Number of installements for sale \| Installment		3	3
Number of years for low to mid-single-digit royalty payments		8 years	8 years
Subsequent Event \| Office space
Subsequent Event [Line Items]
Square meter area of office space under lease \| m²				2,129.1

Stock Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Number of Shares Underlying Outstanding Options
Number of Shares Underlying Outstanding Options, Beginning Balance	18,280,548
Number of Shares Underlying Outstanding Options, Options granted	1,866	0
Number of Shares Underlying Outstanding Options, Options exercised	(60,297)
Number of Shares Underlying Outstanding Options, Options forfeited and cancelled	(3,622)
Number of Shares Underlying Outstanding Options, Ending Balance	18,218,495		18,280,548
Number of Shares Underlying Outstanding Options, Exercisable- March 31, 2024	18,205,433
Weighted- Average Exercise Price
Weighted- Average Exercise Price, Beginning Balance	$ 1.49
Weighted- Average Exercise Price, Options granted	17.86
Weighted- Average Exercise Price, Options Exercised	8.15
Weighted- Average Exercise Price, Options forfeited and cancelled	22.85
Weighted- Average Exercise Price, Ending Balance	1.46		$ 1.49
Weighted- Average Exercise Price, Exercisable - March 31, 2024	$ 1.46
Weighted-Average Remaining Contractual Term (Years)
Weighted-Average Remaining Contractual Term (Years), Outstanding Balance	6 years 8 months 12 days		6 years 10 months 24 days
Weighted Average Remaining Contractual Term, Exercisable - March 31, 2024	6 years 8 months 12 days

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions among consolidated entities were eliminated upon consolidation. The condensed consolidated financial statements have been prepared in accordance with GAAP and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s condensed consolidated financial information. These condensed consolidated results of operations and cash flows for any interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2024, or for any other future annual or interim period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Annual Report.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, allowance of doubtful accounts, long-term receivable, contingent value right (“CVR”) derivative liability, warrant liability, allowance for credit losses, reserves for excess or obsolete inventory, operating lease right-of-use assets and liabilities, recognition of research and development expenses to the appropriate financial reporting period based on the progress of the research and development projects, income taxes, stock-based compensation and useful lives of property and equipment and intangibles with definite lives. The Company bases its estimates on various assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Risks and Uncertainities	Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from larger and established companies, uncertainty of clinical results, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company, and general economic conditions.
Concentration of Credit Risk	Concentration of Credit Risk In May 2015, a new Deposit Insurance System (“DIS”) managed by the People’s Bank of China was implemented by the Chinese government. Deposits in the licensed banks in mainland China are protected by DIS, up to a limit of Chinese Renminbi (“RMB”) 500,000. The Company maintains cash and deposits at commercial banks in excess of the amount protected by DIS and the Federal Deposit Insurance Corporation and in the event of bankruptcy of one of these financial institutions, the Company may be unable to claim its deposits back in full. Management believes that these financial institutions are of high credit quality and continually monitors the creditworthiness of these financial institutions. As of March 31, 2024 and December 31, 2023, the Company had cash and cash equivalents of $29.8 million and $33.5 million, and long-term certificates of deposit of $23.1 million and $23.4 million, respectively. In addition, the Company had short-term bank deposits of $7.6 million as of March 31, 2024. Accounts receivable are typically unsecured and are derived from product sales. The Company manages credit risk related to the accounts receivable through ongoing monitoring of outstanding balances and limiting the amount of credit extended based upon payment history and creditworthiness. Historically, the Company has collected receivables from customers within the credit terms with no significant credit losses incurred.
Concentration of Customer Risk	Concentration of Customer Risk For the three months ended March 31, 2024 and 2023, the Company had one customer, Sinopharm Group Co., Ltd. (“Sinopharm”), who accounted for approximately 45.4% and 48.7% of accounts receivable, respectively. For the three months ended March 31, 2024, there were three customers, Sinopharm, China Resources Pharmaceutical Group Ltd. (“Resources Pharmaceutical”), and Shanghai Pharmaceuticals Holding Co., Ltd. (“Shanghai Pharmaceuticals”), who accounted for approximately 47.3%, 17.2% and 11.1% of total revenue, respectively. For the three months ended March 31, 2023, there were three customers, Sinopharm, Shanghai Pharmaceuticals, and Resources Pharmaceutical who accounted for approximately 49.4%, 13.5% and 10.4% of total revenue, respectively. All customers are located in mainland China.
Foreign Currency Risk	Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. 83.0% of the Company’s cash and cash equivalents, and 100% of the Company’s short-term bank deposits and long-term certificates of deposit as of March 31, 2024, in the amount of $24.7 million, $7.6 million and $23.1 million, respectively, were denominated in RMB.
Accounting Pronouncements Recently Adopted	Accounting Pronouncements Recently Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this standard as of January 1, 2024. The adoption of this ASU did not have any material impact on the Company’s interim condensed consolidated financial statements.
New Accounting Pronouncements - Issued But Not Yet Adopted	New Accounting Pronouncements – Issued But Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in the required additional disclosures being included in the Company’s consolidated financial statements, once adopted. The Company plans to adopt ASU 2023-09 and related updates as of January 1, 2025. The Company will assess the impact of adoption of this standard on its consolidated financial statements.

Intangible Assets - Schedule of Carrying Amounts and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Intangible assets with finite lives:
Gross carrying amount	$ 601	$ 601
Accumulated amortization	(405)	(396)
Intangible assets, net	196	205
Technological know-how
Intangible assets with finite lives:
Gross carrying amount	430	430
Accumulated amortization	(295)	(290)
Intangible assets, net	135	140
Computer software
Intangible assets with finite lives:
Gross carrying amount	171	171
Accumulated amortization	(110)	(106)
Intangible assets, net	$ 61	$ 65

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, Weighted average amortization period	4 years 10 months 24 days
Amortization of intangible assets	$ 100,000	$ 45,000

Stock Based Compensation - Summary of Stock-Based Compensation Expense Recognized (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 11
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 11

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended
	Oct. 30, 2023	Apr. 30, 2023	Feb. 28, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Commitments And Contingencies Disclosure [Line Items]
CVR derivative liability				$ 4,780		$ 4,722
Purchase of property and equipment				231	$ 1,742
Property and Equipment
Commitments And Contingencies Disclosure [Line Items]
Purchase of property and equipment				2,000
Research and Development
Commitments And Contingencies Disclosure [Line Items]
Committed to allocate				$ 13,000
Contingent Value Rights Agreement
Commitments And Contingencies Disclosure [Line Items]
Percentage of excess cash on dispositions net				100.00%
Excess amount retained from net proceeds related to disposition of assets				$ 1,000
Percentage of excess preapproved costs				100.00%
Distribution to CVR holders from asset sale proceeds			$ 200
Long-term CVR derivative liability			$ 4,500
CVR derivative liability				$ 4,700
Contributions closing payable amount	$ 1,100
Remaining outstanding balance				400
Litigation expenses		$ 400
F351 \| Gyre Pharmaceuticals \| Submission of the New Drug Application
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				4,600
F351 \| Gyre Pharmaceuticals \| NDA Passes the NMPA's Review and Inspection
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				1,200
F351 \| Gyre Pharmaceuticals \| NMPA's Approval of the NDA
Commitments And Contingencies Disclosure [Line Items]
Obligation to pay in exchange for the intellectual property rights				$ 7,000

Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets


5.	Intangible Assets

The gross carrying amounts and accumulated amortization of the Company’s intangible assets with determinable lives as of March 31, 2024 and December 31, 2023 were as follows (in thousands):


	March 31, 2024
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(295	)	$	135
Computer software		171		(110	)		61
Total intangible assets	$	601	$	(405	)	$	196


	December 31, 2023
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	430	$	(290	)	$	140
Computer software		171		(106	)		65
Total intangible assets	$	601	$	(396	)	$	205

Intangible assets are carried at cost less accumulated amortization and impairment, if applicable, and the amortization expense is recorded in operating expenses. The weighted average amortization period for the intangible assets as of March 31, 2024 is 4.9 years.

Amortization expense was $100,000 and $45,000 for the three months ended March 31, 2024 and 2023, respectively. Based on finite-lived intangible assets recorded as of March 31, 2024, the estimated future amortization expense is as follows (in thousands):


	Estimated amortization expense
2024	$	26
2025		34
2026		34
2027		33
2028		18
Thereafter		51
Total	$	196

Fair Value Measurements and Financial Instruments - Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 3,904	$ 5,860
Estimated Fair Value	3,904	5,860
Money Market Funds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	3,904	5,860
Estimated Fair Value	3,904	5,860
Cash and Cash Equivalents
Schedule Of Available For Sale Securities [Line Items]
Estimated Fair Value	$ 3,904	$ 5,860

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Section 50
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Paragraph 2
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Paragraph 3
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Section 50
-Paragraph 3
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
Remaining in 2024	$ 85
2025	103
2026	106
Total undiscounted lease payments	294
Less: imputed interest	(19)
Total lease liabilities	275
Less current portion of lease liabilities	(100)	$ (210)
Lease liabilities, net of current portion	$ 175	$ 199

Convertible Preferred Stock - Additional Information (Detail) - shares	Mar. 31, 2024	Jan. 22, 2024	Nov. 30, 2023	Oct. 31, 2023	Oct. 27, 2023	Dec. 31, 2022
Preferred Stock Warrants
Class of Stock [Line Items]
Warrants to purchase shares				811	811
Convertible Preferred Stock
Class of Stock [Line Items]
Preferred stock shares issued				811	811	12,340
Preferred stock, shares issued upon conversion	666.67		13,151
Number Of Shares Of Common Stock Issuable Upon Conversion Of The Outstanding Shares		8,767,333

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Stockholders' Equity - Additional Information (Detail) - USD ($)		3 Months Ended	12 Months Ended
	Oct. 15, 2021	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Stockholders Equity Disclosure [Line Items]
Common stock, par value		$ 0.001	$ 0.001
Common stock, shares sold		85,423,246	76,595,616
Aggregate amounts of restricted capital and statutory reserves		$ 64,300,000	$ 64,300,000
Statutory reserve fund		10.00%
Cumulative amount of statutory reserve fund		50.00%
Appropriations to statutory reserve		$ 0	$ 0
2021 ATM Program
Stockholders Equity Disclosure [Line Items]
Common stock, par value	$ 0.001
Proceeeds from issuance of aggregate gross sales	$ 50,000,000
Percentage of commission for shares sold	3.00%
Legal expenses incurred	$ 50,000
Common stock, shares sold		0		0

Balance Sheet Components - Schedule of Inventories, Net of Reserves (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory, Net [Abstract]
Raw materials	$ 724	$ 919
Work in progress	2,532	1,997
Finished goods	1,683	1,365
Inventories, net	$ 4,939	$ 4,281

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of Common Stock, Reserved for Future Issuance

Common stock reserved for future issuance is as follows:


	March 31, 2024		December 31, 2023
Options issued and outstanding		18,218,495		18,280,548
Preferred Stock Warrants issued and outstanding		540,666		540,666
Convertible Preferred Stock issued and outstanding		—		8,767,332
Total common stock reserved		18,759,161		27,588,546

Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue


6.	Revenue

The Company’s product revenues were mainly generated from the sale of ETUARY. Sales of ETUARY accounted for 99.2% and 98.7% of total revenue for the three months ended March 31, 2024 and 2023, respectively.

Sales of Pharmaceutical Products

The Company generates revenue mostly through sales of ETUARY and certain generic drugs. The distributors were the Company’s direct customers, and sales to distributors accounted for 100.0% of revenue from ETUARY. The distributors sell ETUARY to outlets, including hospitals and other medical institutions, as well as pharmacies.

Product returns to date have not been significant and the Company has not considered it necessary to record a reserve for product returns. The Company’s product revenues were recognized at a point in time when the underlying product was delivered to the customer, which was when the customer obtained control of the product. Revenue from sales of pharmaceutical products was $27.2 million and $24.9 million for the three months ended March 31, 2024 and 2023, respectively. All sales are generated in the PRC. Deferred revenue recognized during the quarter ended March 31, 2024 was immaterial.

The Company’s sales by product categories for the three months ended March 31, 2024 and 2023 are as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Sales of Pharmaceutical Products	$	27,172	$	24,931
Total	$	27,172	$	24,931

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Net income	$ 9,935	$ 4,217
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	11
Equity in loss of unconsolidated affiliate		343
Depreciation and amortization	415	276
Noncash lease expense	109	82
Amortization of land use rights	10	10
Deferred income taxes, net	(313)	(328)
Bad debt expense and other non-cash items	(7)	(63)
Accrued interest on certificates of deposit	(234)	(74)
Change in fair value of long-term receivable	(58)
Change in fair value of derivative liabilities	58
Change in fair value of warrant liability	(4,288)
Loss on disposal of property and equipment	3
Changes in operating assets and liabilities:
Accounts and note receivables	1	3,915
Inventories	(666)	525
Prepaid and other assets	(1,524)	(678)
Income tax payable	1,423	1,919
Accounts payable	(23)	156
Other noncurrent liabilities	(4)	(808)
Due to related parties	(6)	(1)
Accrued expenses and other liabilities	(1,839)	1,028
Operating lease liabilities	(119)	(102)
Net cash provided by operating activities	2,884	10,417
Investing Activities
Acquisition of intangible assets		(65)
Purchase of certificates of deposit	(7,039)	(5,841)
Purchase of property and equipment	(231)	(1,742)
Proceeds from sale of equipment	50
Net cash used in investing activities	(7,220)	(7,648)
Financing Activities
Proceeds from the exercise of stock options	658
Net cash provided by financing activities	658
Effect of exchange rate changes on cash and cash equivalents	(46)	200
Net (decrease) increase in cash and cash equivalents	(3,724)	2,969
Cash and cash equivalents at beginning of the period	33,509	25,175
Cash and cash equivalents at end of the period	29,785	28,144
Supplemental Disclosure of Non-Cash Financing and Investing Activities:
Convertible preferred stock conversion	64,525
Non-cash acquisition of property and equipment through prepaid conversion	453	252
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	$ 1,436	$ 463

Stockholders' Equity - Schedule of Common Stock, Reserved for Future Issuance (Detail) - shares	Mar. 31, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Total common stock reserved	18,759,161	27,588,546
Options Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved	18,218,495	18,280,548
Preferred Stock Warrants Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved	540,666	540,666
Convertible Preferred Stock Issued and Outstanding
Class of Stock [Line Items]
Total common stock reserved		8,767,332

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Leases

3 Months Ended

Mar. 31, 2024

Lessee Disclosure [Abstract]

Leases


7.	Leases

Operating Leases

Gyre Pharmaceuticals’ corporate headquarters, a 968 square meter office space, is situated in Beijing, PRC, with the lease expiring in June 2024. Additionally, a laboratory center spanning approximately 640 square meters was leased in Shanghai, PRC, which expired in November 2023. In 2022, the Company secured a new lease for an office space of approximately 180 square meters in Zhengzhou, PRC, with the lease set to expire in August 2024. In November 2023, the Company also secured a new lease for its U.S. headquarters in San Diego, California, with the lease set to expire in the first quarter of 2027.

The Company also has multiple short-term leased properties used as offices and employee dormitories. The Company recorded a total of $18,000 and $25,000 short-term rent expenses during the three months ended March 31, 2024 and 2023, respectively. The short-term rent expense amounts are recorded in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

As of March 31, 2024, the Company recorded an aggregate right-of-use asset of $0.4 million and an aggregate lease liability of $0.3 million in the accompanying condensed consolidated balance sheets.

For the three months ended March 31, 2024 and 2023, the Company’s operating lease expense was $0.1 million and $0.1 million, respectively. Variable lease payments for the three months ended March 31, 2024 and 2023 were immaterial.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities	$	139	$	127

The present value assumptions used in calculating the present value of the lease payments were as follows:


	March 31, 2024			December 31, 2023
Weighted-average remaining lease term	2.7 years			2.2 years
Weighted-average discount rate		4.80	%		4.78	%

As of March 31, 2024, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
Remaining in 2024	$	85
2025		103
2026		106
Total undiscounted lease payments		294
Less: imputed interest		(19	)
Total lease liabilities		275
Less: current portion of lease liabilities		(100	)
Lease liabilities, net of current portion	$	175

The Company is required to maintain security deposits of $0.4 million in connection with various leases, which amounts are included in other assets, noncurrent on the Company’s condensed consolidated balance sheets.

Land Use Rights

As of March 31, 2024, the Company held land use rights for two land parcels in Beijing’s Shunyi District, expiring in 2053, and in Cangzhou, Hebei Province, expiring from 2067 to 2071. These parcels, with a combined area of approximately 66,559 square meters, are utilized as manufacturing facilities. As of March 31, 2024, the aggregate recorded land use rights, net assets for these parcels was $1.5 million.

Stock Based Compensation - Fair Values of Stock Options Granted Estimated Using Black-Scholes Valuation Model (Detail) - Employee Stock Option	3 Months Ended
	Mar. 31, 2024 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate (%)	4.20%
Expected option life (in years)	6 years
Volatility (%)	84.30%
Weighted average share price of the Company (USD per share)	$ 17.86

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision and Effectie Tax Rate

During the three months ended March 31, 2024 and 2023, the Company recorded the following income tax provision (in thousands) and effective tax rate:


	Three Months Ended March 31,
	2024			2023
Income tax provision	$	2,546		$	2,054
Effective tax rate		20.40	%		32.75	%

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies


2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany accounts and transactions among consolidated entities were eliminated upon consolidation. The condensed consolidated financial statements have been prepared in accordance with GAAP and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s condensed consolidated financial information. These condensed consolidated results of operations and cash flows for any interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2024, or for any other future annual or interim period.

The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Annual Report.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, allowance of doubtful accounts, long-term receivable, contingent value right (“CVR”) derivative liability, warrant liability, allowance for credit losses, reserves for excess or obsolete inventory, operating lease right-of-use assets and liabilities, recognition of research and development expenses to the appropriate financial reporting period based on the progress of the research and development projects, income taxes, stock-based compensation and useful lives of property and equipment and intangibles with definite lives. The Company bases its estimates on various assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Risks and Uncertainties

The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from larger and established companies, uncertainty of clinical results, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company, and general economic conditions.

Concentration of Credit Risk

In May 2015, a new Deposit Insurance System (“DIS”) managed by the People’s Bank of China was implemented by the Chinese government. Deposits in the licensed banks in mainland China are protected by DIS, up to a limit of Chinese Renminbi (“RMB”) 500,000. The Company maintains cash and deposits at commercial banks in excess of the amount protected by DIS and the Federal Deposit Insurance Corporation and in the event of bankruptcy of one of these financial institutions, the Company may be unable to claim its deposits back in full. Management believes that these financial institutions are of high credit quality and continually monitors the creditworthiness of these financial institutions. As of March 31, 2024 and December 31, 2023, the Company had cash and cash equivalents of $29.8 million and $33.5 million, and long-term certificates of deposit of $23.1 million and $23.4 million, respectively. In addition, the Company had short-term bank deposits of $7.6 million as of March 31, 2024.

Accounts receivable are typically unsecured and are derived from product sales. The Company manages credit risk related to the accounts receivable through ongoing monitoring of outstanding balances and limiting the amount of credit extended based upon payment history and creditworthiness. Historically, the Company has collected receivables from customers within the credit terms with no significant credit losses incurred.

Concentration of Customer Risk

For the three months ended March 31, 2024 and 2023, the Company had one customer, Sinopharm Group Co., Ltd. (“Sinopharm”), who accounted for approximately 45.4% and 48.7% of accounts receivable, respectively. For the three months ended March 31, 2024, there were three customers, Sinopharm, China Resources Pharmaceutical Group Ltd. (“Resources Pharmaceutical”), and Shanghai Pharmaceuticals Holding Co., Ltd. (“Shanghai Pharmaceuticals”), who accounted for approximately 47.3%, 17.2% and 11.1% of total revenue, respectively. For the three months ended March 31, 2023, there were three customers, Sinopharm, Shanghai Pharmaceuticals, and Resources Pharmaceutical who accounted for approximately 49.4%, 13.5% and 10.4% of total revenue, respectively. All customers are located in mainland China.

Foreign Currency Risk

The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. 83.0% of the Company’s cash and cash equivalents, and 100% of the Company’s short-term bank deposits and long-term certificates of deposit as of

March 31, 2024, in the amount of $24.7 million, $7.6 million and $23.1 million, respectively, were denominated in RMB.

Accounting Pronouncements Recently Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this standard as of January 1, 2024. The adoption of this ASU did not have any material impact on the Company’s interim condensed consolidated financial statements.

New Accounting Pronouncements – Issued But Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted. This ASU will result in the required additional disclosures being included in the Company’s consolidated financial statements, once adopted. The Company plans to adopt ASU 2023-09 and related updates as of January 1, 2025. The Company will assess the impact of adoption of this standard on its consolidated financial statements.

Fair Value Measurements and Financial Instruments - Additional Information (Detail)		1 Months Ended
	Dec. 26, 2022	Oct. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2025 USD ($)	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares	Oct. 27, 2023 shares	Dec. 31, 2022 shares
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value measurement transfer between Level 1 and Level 2				$ 0	$ 0
Fair value measurement transfer Level 3				$ 0	$ 0
Warrants exercise price per share \| $ / shares				$ 4,915	$ 4,915
Preferred Stock Warrants
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Warrants to purchase shares \| shares		811				811
Aggregate purchase price of warrants		$ 5,000,000
Warrants exercise price per share \| $ / shares		$ 4,915
Expiration date		Oct. 30, 2033
Number of shares of common stock issuable upon exercise and conversion of warrants \| shares		540,666
Convertible Preferred Stock
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Preferred stock shares issued \| shares		811				811	12,340
Preferred stock, par value \| $ / shares		$ 0.001
Contingent Value Rights Agreement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Purchase agreement amendment date	Mar. 29, 2023
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| CVR Derivative Liability, Noncurrent \| Estimated Discount Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Derivative liability measurement input				0.0505
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| Long-term Receivable \| Estimated Discount Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Derivative asset measurement input				0.0505
Contingent Value Rights Agreement \| GCBP Asset Purchase Agreement \| Forecast
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Amount to be received under agreement			$ 5,000,000

Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued payroll and welfare	$ 5,930	$ 5,790
Accrued expenses - selling expenses	1,734	44
Supplier reimbursement	997	2,247
Accrued sales discount	912	903
Accrued expenses - general and administrative	601	1,190
Accrued professional services	251	837
Accrued expenses - research and development	236	161
Deferred government grants	40	40
Employee reimbursement	27	648
Other accrued liabilities	39	75
Accrued expenses and other current liabilities	$ 10,767	$ 11,935

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events


17.	Subsequent Events

Lease Agreement

In April 2024, the Company entered into a lease arrangement to lease 2,129.1 square meters of office space located in 6F, Building 1, Zone 4, Wangjing Xiyuan, Chaoyang District, Beijing. The Company paid approximately $0.3 million upon execution of the lease, which will be included in total lease costs. The monthly lease payment is approximately $0.1 million. The initial lease term is three years, which will commence on June 2, 2024, and expire on June 1, 2027. The lease arrangement provides two options to extend for an additional three years beyond the initial lease term.

Jiangsu Wangao Agreement

In May 2024, Gyre Pharmaceuticals entered into an agreement with Jiangsu Wangao Pharmaceuticals Co., Ltd. (the “Jiangsu Wangao Agreement”), effective from May 7, 2024 to May 6, 2035. Pursuant to the Jiangsu Wangao Agreement, Gyre Pharmaceuticals obtained the drug registration certificate for and became the marketing authorization holder of nintedanib, a kinase inhibitor for the treatment of idiopathic pulmonary fibrosis, within the PRC. The total minimum payments under the Jiangsu Wangao Agreement are RMB 35.0 million, or approximately $4.8 million, based on the May 7, 2024 spot exchange rate. This includes an upfront transfer fee of RMB 15.0 million, or approximately $2.1 million, payable in three installments, and subsequent low- to mid-single-digit royalty payments over eight years following the commencement of sales. Additionally, Gyre Pharmaceuticals will bear the costs associated with relocating the production site to a designated location and will cover all expenses related to the manufacturing process.

Related Party Transactions

3 Months Ended

Mar. 31, 2024

Related Party Transactions


14.	Related Party Transactions

Research and Development with GNI

No research and development fees were paid to GNI during the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, the Company had a $1.4 million related parties payable due to GNI.

Other Receivables from GNI

As of March 31, 2024 and December 31, 2023, the Company had recorded $1.3 million in other receivables from GNI, of which $0.8 million was from CPI’s restructuring transaction (see Note 8 – Restructuring in the Annual Report) and $0.5 million was from Gyre’s cost sharing with GNI.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Net Income per Share ("EPS") Attributable to Common Stockholders (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Basic and Diluted EPS Attributable to Common Stockholders

The following table sets forth the computation of EPS attributable to common stockholders, basic and diluted (in thousands, except share and per share data):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	9,935	$	4,217
Less: Allocation of undistributed earnings to noncontrolling interest		2,403		1,973
Net income attributable to common stockholders - basic	$	7,532	$	2,244
Less: Change in fair value of warrant liability		4,288		—
Net income attributable to common stockholders - diluted	$	3,244	$	2,244

Denominator:
Basic common shares outstanding:
Weighted average common shares outstanding		83,265,879		63,588,119
Weighted average shares used in calculating net income per share attributable to common stockholders, basic		83,265,879		63,588,119

Dilutive potential common shares:
Weighted average of common stock options		16,889,266		15,333,247
Weighted average of Convertible Preferred Stock (as converted)		2,119,575		—
Weighted average of Preferred Stock Warrants (as converted)		319,477		—
Weighted average shares used in calculating net income per share attributable to common stockholders, diluted		102,594,197		78,921,366

Net income per share attributable to common stockholders:
Basic	$	0.09	$	0.04
Diluted	$	0.03	$	0.03

Anti-dilutive Security not Included in Diluted per Share Calculations

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	As of March 31,
	2024		2023
Options to purchase common stock		128,027		—
Total		128,027		—

Balance Sheet Components

3 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components


4.	Balance Sheet Components

Inventories, net

Inventories, net of reserves of $3,000 and $46,000 as of March 31, 2024 and December 31, 2023, respectively, consisted of the following components (in thousands):


	March 31, 2024		December 31, 2023
Raw materials	$	724	$	919
Work in progress		2,532		1,997
Finished goods		1,683		1,365
Inventories, net	$	4,939	$	4,281

The provision for inventory and write-downs for the periods ended March 31, 2024 and December 31, 2023 were immaterial.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31, 2024		December 31, 2023
Accrued payroll and welfare	$	5,930	$	5,790
Accrued expenses - selling expenses		1,734		44
Supplier reimbursement		997		2,247
Accrued sales discount		912		903
Accrued expenses - general and administrative		601		1,190
Accrued professional services		251		837
Accrued expenses - research and development		236		161
Deferred government grants		40		40
Employee reimbursement		27		648
Other accrued liabilities		39		75
Accrued expenses and other current liabilities	$	10,767	$	11,935

Accounts and Note Receivables, Net

Accounts and note receivables, net consisted of the following (in thousands):


	March 31, 2024			December 31, 2023
Accounts receivable	$	15,209		$	15,204
Note receivable		356			389
Allowance for credit losses		(107	)		(41	)
Allowance and note receivables, net	$	15,458		$	15,552

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	March 31, 2024			December 31, 2023
Buildings	$	12,294		$	12,289
Construction in progress		8,420			7,875
Machinery and electronic devices		6,732			6,598
Furniture and fixtures		605			606
Motor vehicles		185			185
Property and equipment, gross		28,236			27,553
Less: Accumulated depreciation		(4,672	)		(4,265	)
Property and equipment, net	$	23,564		$	23,288

Segment Information - Additional Information (Detail) - Segment	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Segment Reporting Information [Line Items]
Number of operating segment	2
CPI contribution
Segment Reporting Information [Line Items]
Indirect ownership interest		56.00%

Balance Sheet Components - Additional Information (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Inventory reserves	$ 3,000	$ 46,000

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues	$ 27,172	$ 24,931
Operating expenses:
Cost of revenues	979	1,125
Selling and marketing	12,542	12,768
Research and development	2,182	2,635
General and administrative	3,398	1,739
Total operating expenses	19,101	18,267
Income from operations	8,071	6,664
Other income (expense), net:
Interest income, net	328	184
Other income	109	66
Change in fair value of warrant liability	4,288
Other expenses	(315)	(643)
Income before income taxes	12,481	6,271
Provision for income taxes	(2,546)	(2,054)
Net income	9,935	4,217
Net income attributable to noncontrolling interest	2,403	1,973
Net income attributable to common stockholders	$ 7,532	$ 2,244
Net income per share attributable to common stockholders, basic	$ 0.09	$ 0.04
Net income per share attributable to common stockholders, diluted	$ 0.03	$ 0.03
Weighted average shares used in calculating net income per share attributable to common stockholders, basic	83,265,879	63,588,119
Weighted average shares used in calculating net income per share attributable to common stockholders, diluted	102,594,197	78,921,366
Other comprehensive income:
Net income	$ 9,935	$ 4,217
Foreign currency translation adjustments	(141)	898
Comprehensive income	9,794	5,115
Net income attributable to noncontrolling interest	2,403	1,973
Foreign currency translation adjustments attributable to noncontrolling interest	(49)	395
Comprehensive income attributable to noncontrolling interest	2,354	2,368
Comprehensive income attributable to common stockholders	$ 7,440	$ 2,747

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Research and development fees	$ 2,182,000	$ 2,635,000
Related Party \| G N I
Related Party Transaction [Line Items]
Research and development fees	0	$ 0
Other Receivables	1,300,000		$ 1,300,000
Related Party \| G N I \| CPI contribution
Related Party Transaction [Line Items]
Other Receivables	800,000
Related Party \| G N I \| Gyre
Related Party Transaction [Line Items]
Other Receivables	500,000
Related Party \| F351 Agreement \| G N I
Related Party Transaction [Line Items]
Due to related parties	$ 1,400,000		$ 1,400,000

Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jan. 01, 2024	Dec. 31, 2023	Oct. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance	18,759,161			27,588,546
Options granted	1,866	0
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized employee stock based compensation expense	$ 0.1
Unrecognized employee stock based compensation expense, period for recognition	2 years 8 months 12 days
2023 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding shares of common stock	5.00%
Common stock, shares reserved for future issuance			3,829,780		17,845,496

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information


16.	Segment Information

The Company is a consolidated entity comprised of two distinct operating segments: Gyre Pharmaceuticals and Gyre after the Contributions. The Company’s reportable segments are based upon internal organizational structure, the manner in which operations are managed, the criteria used by CODM to evaluate segment performance, the

availability of separate financial information, and overall materiality considerations. All Gyre’s operations are within the U.S., while all of Gyre Pharmaceuticals’ operations are in mainland China.

Gyre Pharmaceuticals

Gyre Pharmaceuticals has one major commercial drug product, ETUARY, and several product candidates in pre-clinical and clinical development. Gyre Pharmaceuticals’ product revenues are mainly generated from the sale of ETUARY and certain generic drugs. Gyre Pharmaceuticals primarily sells its pharmaceutical products to distributors in the PRC, who ultimately sell the products to hospitals, other medical institutions and pharmacies. Gyre Pharmaceuticals also generates revenue from license agreements. However, the license agreements did not generate any revenue for the three months ended March 31, 2024 or 2023.

Gyre

Gyre is a biopharmaceutical company focused on the development and commercialization of F351 for the treatment of non-alcoholic steatohepatitis-associated liver fibrosis in the United States. Other than the IP associated with F351 in the U.S., Gyre has no other product candidates since the Company sold all of its legacy IP assets prior to the closing of the Contributions. Subsequent to the closing of the Contributions, Gyre has not generated any revenue.

Other

Other represents the financial information from other subsidiaries, consisting of mainly CPI, GNI HK, and Continent Pharmaceuticals U.S., Inc. During the year ended December 31, 2023, prior to the Contributions, CPI divested almost all of its assets other than its 56.0% indirect ownership interest in Gyre Pharmaceuticals (see Note 8 – Restructuring in the Annual Report).

Segment information for the three months ended March 31, 2024 and 2023 is as follows (in thousands):


	Three Months Ended March 31, 2024
	Gyre Pharmaceuticals		Gyre			Other		Consolidated
Revenues	$	27,172	$	—		$	—	$	27,172
Cost of revenues		979		—			—		979
Gross profit		26,193		—			—		26,193
Operating expenses excluding cost of revenues:
Selling and marketing		12,542		—			—		12,542
Research and development		2,009		173			—		2,182
General and administrative		2,257		1,141			—		3,398
Total operating expenses excluding cost of revenues		16,808		1,314			—		18,122
Income (loss) from operations	$	9,385	$	(1,314	)	$	—	$	8,071

Supplemental disclosure of stock-based compensation expense:
General and administrative	$	—	$	11		$	—	$	11
Stock-based compensation total	$	—	$	11		$	—	$	11


	March 31, 2024
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	109,347	$	11,750	$	913	$	122,010

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.


	Three Months Ended March 31, 2024
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Purchase of property and equipment	$	217	$	14	$	—	$	231


	Three Months Ended March 31, 2023
	Gyre Pharmaceuticals		Gyre		Other			Consolidated
Revenues	$	24,931	$	—	$	—		$	24,931
Cost of revenues		1,125		—		—			1,125
Gross profit		23,806		—		—			23,806
Operating expenses excluding cost of revenues:
Selling and marketing		12,768		—		—			12,768
Research and development		2,635		—		—			2,635
General and administrative		1,722		—		17			1,739
Total operating expenses excluding cost of revenues		17,125		—		17			17,142
Income (loss) from operations	$	6,681	$	—	$	(17	)	$	6,664

Supplemental disclosure of stock-based compensation expense:
Stock-based compensation total	$	—	$	—	$	—		$	—


	December 31, 2023
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.


	Three Months Ended March 31, 2023
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Purchase of property and equipment	$	1,742	$	—	$	—	$	1,742

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes


13.	Income Taxes

During the three months ended March 31, 2024 and 2023, the Company recorded the following income tax provision (in thousands) and effective tax rate:


	Three Months Ended March 31,
	2024			2023
Income tax provision	$	2,546		$	2,054
Effective tax rate		20.40	%		32.75	%

The change of effective tax rate for the three months ended March 31, 2024 and 2023 was primarily due the consummation of the Contributions in October 2023.

As of March 31, 2024, after consideration of certain limitations (see below), the Company had approximately $193.5 million federal and $10.5 million state net operating loss (“NOL”) carryforwards for U.S. tax purposes available to reduce future taxable income which, if unused, will begin to expire in 2037 for federal and 2034 for state tax purposes. The federal NOL carryforward includes $191.9 million that have an indefinite life.

If the Company experiences a greater than 50% aggregate change in ownership over a three-year period (a Section 382 ownership change), utilization of its pre-change NOL carryforwards are subject to annual limitation under Section 382 of the Internal Revenue Code (California has similar provisions). The annual limitation is determined by multiplying the value of the Company’s stock at the time of such ownership change by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards before utilization. The Company determined that ownership changes under Section 382 occurred on December 31, 2007, August 20, 2015, April 13, 2017, February 15, 2018, February 18, 2020, and December 26, 2022. Approximately $156.5 million and $75.2 million of the NOL carryforwards will expire unutilized for federal and California state income tax purposes, respectively. The ability of the Company to use its remaining NOL and tax credit carryforwards may be further limited if the Company experiences a Section 382 ownership change as a result of future changes in its stock ownership.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Fair Value Measurements and Financial Instruments - Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Long-term Receivable
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2023	$ 4,722
Changes in fair value	58
Balance at March 31, 2024	4,780
CVR Derivative Liability, Noncurrent
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2023	4,722
Changes in fair value	58
Balance at March 31, 2024	4,780
Warrant Liability, Noncurrent
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2023	12,835
Changes in fair value	(4,288)
Balance at March 31, 2024	$ 8,547

Nature of Operations and Liquidity - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Oct. 30, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Organization And Nature Of Operations [Line Items]
Net income		$ 9,935	$ 4,217
Net cash provided by operating activities		2,884	$ 10,417
Accumulated deficit		78,006		$ 85,538
Cash and cash equivalents		$ 29,785		$ 33,509
Gyre \| Gyre Pharmaceuticals
Organization And Nature Of Operations [Line Items]
Minority interest ownership indirectly holds	65.20%

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Fair Value Measurements and Financial Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments


3.	Fair Value Measurements and Financial Instruments

For a description of the fair value hierarchy and the Company’s fair value methodology, see Note 2 – Summary of Significant Accounting Policies in the Annual Report. There were no significant changes in these methodologies during the three months ended March 31, 2024. As of March 31, 2024, the Company’s highly liquid money market funds are included within cash equivalents.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands):


	March 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds(1)	$	3,904	$	—	$	—	$	3,904
Long-term receivable from GCBP		—		—		4,780		4,780
Total financial assets	$	3,904	$	—	$	4,780	$	8,684

Financial liabilities:
CVR derivative liability, noncurrent	$	—	$	—	$	4,780	$	4,780
Warrant liability, noncurrent		—		—		8,547		8,547
Total financial liabilities	$	—	$	—	$	13,327	$	13,327


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds(1)	$	5,860	$	—	$	—	$	5,860
Long-term receivable from GCBP		—		—		4,722		4,722
Total financial assets	$	5,860	$	—	$	4,722	$	10,582

Financial liabilities:
CVR derivative liability	$	—	$	—	$	4,722	$	4,722
Warrant liability, noncurrent		—		—		12,835		12,835
Total financial liabilities	$	—	$	—	$	17,557	$	17,557

(1)

Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets.

The carrying amounts of cash, accounts and note receivables, net, other receivables, accounts payable, due to related parties, CVR excess closing cash payable, and accrued liabilities approximate their fair values due to the short-term maturity of these instruments.

During the three months of March 31, 2024 and the year ended December 31, 2023, there were no transfers of fair value measurement between Level 1 and Level 2 and no transfers into or out of Level 3 for both financial assets and liabilities.

Long-term Receivables and Derivative Liabilities

Concurrent with the signing of the Business Combination Agreement on December 26, 2022, Catalyst and the Rights Agent (as defined in the CVR Agreement) executed a contingent value rights agreement (the “CVR Agreement”), as amended on March 29, 2023, pursuant to which each holder of Catalyst common stock as of January 5, 2023 (each, a “CVR Holder”), excluding GNI Japan and GNI Hong Kong Limited (“GNI HK”), received one contractual CVR for each share of Catalyst common stock held by such holder. Each CVR entitles the holder thereof to receive certain cash payments in the future.

The long-term receivable and the corresponding CVR derivative liability, noncurrent relate to the asset purchase agreement with GC Biopharma Corp. (“GCBP”). The fair value of this long-term receivable and derivative liability is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. The estimated fair value of the long-term receivable and CVR derivative liability, noncurrent was determined based on the anticipated amount and timing of projected cash flows to be received from GCBP pursuant to the GCBP asset purchase agreement discounted to their present values using an estimated discount rate of 5.05%. As of March 31, 2024, the Company expects to receive a $5.0 million hold-back payment from GCBP in the first quarter of 2025, which will be distributed, net of expenses, to the CVR Holders. The change in fair value of the long-term receivable from GCBP and the corresponding CVR derivative liability, noncurrent was recorded in interest and other income, net on the condensed consolidated statement of operations and comprehensive income.

Warrant Liability

In October 2023, Catalyst entered into a Securities Purchase Agreement for a private placement with GNI USA (the “Private Placement”). The Private Placement closed immediately following the Contributions, on October 30, 2023. Upon closing of the Private Placement, the Company issued 811 shares of Series X Convertible Preferred Stock, par value $0.001 per share (the “Convertible Preferred Stock”) and warrants to purchase up to 811 shares of Convertible Preferred Stock (the “Preferred Stock Warrants”) to GNI USA for an aggregate purchase price of approximately $5.0 million. The Preferred Stock Warrants are immediately exercisable at an exercise price of $4,915.00 per share of Convertible Preferred Stock and expire on October 30, 2033. The number of shares of common stock issuable upon exercise and conversion of the Preferred Stock Warrants is 540,666. The Company accounted for the Private Placement as a non-arm’s length transaction. The Preferred Stock Warrants were initially recognized at fair value upon issuance and the remaining proceeds from the Private Placement were allocated to the Convertible Preferred Stock.

The Preferred Stock Warrants are freestanding financial instruments classified as a warrant liability on the Company’s condensed consolidated balance sheet. The Preferred Stock Warrants are revalued in each reporting period with the change in fair value recorded as change in fair value of warrant liability in other income (expense), net on the condensed consolidated statement of operations and comprehensive income.

The fair value of the warrant liability is estimated based on the Black-Scholes option pricing model using the following weighted-average assumptions:


	March 31, 2024			December 31, 2023
Share price	$	17.48		$	25.70
Exercise price	$	4,915.00		$	4,915.00
Dividend yield		—	%		—	%
Risk-free interest		4.20	%		3.88	%
Term (years)		9.58			9.83
Expected volatility		84.00	%		84.00	%

The following table sets forth the changes in the estimated fair value of the Company’s Level 3 financial assets and liabilities (in thousands):


	Long-term receivable		CVR derivative		Warrant
	from GCBP		liability, noncurrent		liability
Balance at December 31, 2023	$	4,722	$	4,722	$	12,835
Changes in fair value		58		58		(4,288	)
Balance at March 31, 2024	$	4,780	$	4,780	$	8,547

Financial Instruments

Cash equivalents consisted of the following (in thousands):


March 31, 2024	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Money market funds (cash equivalents)	$	3,904	$	—	$	—	$	3,904
Total financial assets	$	3,904	$	—	$	—	$	3,904
Classified as:
Cash and cash equivalents							$	3,904
Total financial assets							$	3,904


December 31, 2023	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Money market funds (cash equivalents)	$	5,860	$	—	$	—	$	5,860
Total financial assets	$	5,860	$	—	$	—	$	5,860
Classified as:
Cash and cash equivalents							$	5,860
Total financial assets							$	5,860

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Revenue (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Summary of Sales by Product Categories

The Company’s sales by product categories for the three months ended March 31, 2024 and 2023 are as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Sales of Pharmaceutical Products	$	27,172	$	24,931
Total	$	27,172	$	24,931

Net Income per Share ("EPS") Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income per Share ("EPS") Attributable to Common Stockholders


11.	Net Income per Share (“EPS”) Attributable to Common Stockholders

The dilutive effect of outstanding stock options and warrants is calculated using the treasury stock method. Stock options and warrants are anti-dilutive and excluded from the diluted EPS attributable to common stock calculation if the exercise price exceeds the average market price of the common shares.

The following table sets forth the computation of EPS attributable to common stockholders, basic and diluted (in thousands, except share and per share data):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	9,935	$	4,217
Less: Allocation of undistributed earnings to noncontrolling interest		2,403		1,973
Net income attributable to common stockholders - basic	$	7,532	$	2,244
Less: Change in fair value of warrant liability		4,288		—
Net income attributable to common stockholders - diluted	$	3,244	$	2,244

Denominator:
Basic common shares outstanding:
Weighted average common shares outstanding		83,265,879		63,588,119
Weighted average shares used in calculating net income per share attributable to common stockholders, basic		83,265,879		63,588,119

Dilutive potential common shares:
Weighted average of common stock options		16,889,266		15,333,247
Weighted average of Convertible Preferred Stock (as converted)		2,119,575		—
Weighted average of Preferred Stock Warrants (as converted)		319,477		—
Weighted average shares used in calculating net income per share attributable to common stockholders, diluted		102,594,197		78,921,366

Net income per share attributable to common stockholders:
Basic	$	0.09	$	0.04
Diluted	$	0.03	$	0.03

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	As of March 31,
	2024		2023
Options to purchase common stock		128,027		—
Total		128,027		—

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 29,785	$ 33,509
Short-term bank deposits	7,567
Accounts and note receivables, net	15,458	15,552
Inventories, net	4,939	4,281
Prepaid assets	1,790	1,547
Other current assets	1,897	1,045
Total current assets	62,723	57,221
Property and equipment, net	23,564	23,288
Intangible assets, net	196	205
Right-of-use assets	359	489
Land use rights, net	1,480	1,493
Deferred tax assets	5,000	4,695
Long-term certificates of deposit	23,106	23,431
Other assets, noncurrent	802	995
Total assets	122,010	116,539
Current liabilities:
Accounts payable	330	355
Deferred revenue	35	39
Due to related parties	1,362	1,369
CVR excess closing cash payable	422	1,085
Accrued expenses and other current liabilities	10,767	11,935
Income tax payable	6,470	5,054
Operating lease liabilities, current	100	210
Total current liabilities	19,486	20,047
Operating lease liabilities, noncurrent	175	199
Deferred government grants	203	213
CVR derivative liability, noncurrent	4,780	4,722
Warrant liability, noncurrent	8,547	12,835
Other noncurrent liabilities	48	49
Total liabilities	33,239	38,065
Commitments and Contingencies (Note 12)
Stockholders' equity:
Common stock, $0.001 par value, 400,000,000 shares authorized; 85,423,246 shares and 76,595,616 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	85	77
Additional paid-in capital	133,199	68,179
Statutory reserve	3,098	3,098
Accumulated deficit	(78,006)	(85,538)
Accumulated other comprehensive loss	(1,736)	(1,644)
Total Gyre stockholders' equity (deficit)	56,640	(15,828)
Noncontrolling interest	32,131	29,777
Total equity	88,771	13,949
Total liabilities, convertible preferred stock, and equity	122,010	116,539
GC Biopharma Corp
Current assets:
Long-term receivable from GCBP	4,780	4,722
GNI
Current assets:
Other receivables from GNI	$ 1,287	1,287
Convertible Preferred Stock
Current liabilities:
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; nil shares and 13,151 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively		$ 64,525

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


12.	Commitments and Contingencies

Contingent Value Rights Agreement

Each CVR under the CVR Agreement entitles the holder to receive (i) certain cash payments from the net proceeds related to the disposition of Catalyst’s legacy assets, (ii) 100% of the excess cash (net of all current or contingent liabilities, including transaction-related expenses) retained by the Company in excess of $1.0 million as of the closing date of the Contributions and (iii) 100% of the excess amount, by which the preapproved costs to manage, negotiate, settle and finalize certain third party claims exceed the costs actually incurred with respect to such claims. The CVRs are not transferable, except in certain limited circumstances as provided for in the CVR Agreement, will not be certificated or evidenced by any instrument, and will not be registered with the SEC or listed for trading on any exchange.

In February 2023, Catalyst sold its legacy rare bleeding disorder program to GCBP. As a result, the Company distributed the net cash proceeds received from the GCBP asset sale of $0.2 million to the CVR Holders as well as recorded a $4.5 million long-term CVR derivative liability for the future distribution of the hold-back amount to be received in May 2025. As of December 31, 2023, the carrying value of the CVR derivative liability was $4.7 million

on the condensed consolidated balance sheet. Refer to Note 3 — Fair Value Measurements and Financial Instruments for additional information regarding the CVR derivative liability and GCBP asset sale.

On October 30, 2023, pursuant to the CVR Agreement, the Company recorded a $1.1 million CVR excess closing cash payable upon closing of the Contributions. The CVR excess closing cash payable is anticipated to be distributed among the CVR Holders. The balance of $0.4 million remained outstanding as of March 31, 2024.

Litigation and Legal Matters

The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s condensed consolidated financial statements.

In April 2023, separate stockholders of Catalyst filed lawsuits in the Delaware Chancery Court, captioned Bushansky v. Catalyst Biosciences, Inc., et al and Scott v. Catalyst Biosciences, Inc., et al., alleging Catalyst violated its fiduciary duties under Delaware Law by failing to disclose purportedly material information regarding the proposed Business Combination Agreement. In February 2024, both lawsuits were dismissed with prejudice and the Company reimbursed the stockholders for their legal and other expenses related to the litigation in the aggregate amount of $0.4 million.

Purchasing Commitments

Property and Equipment

The Company’s commitments related to purchase of property and equipment contracted but not yet reflected in the condensed consolidated financial statements were $2.0 million as of March 31, 2024 and were expected to be incurred within one year.

F351

In September 2020, Gyre Pharmaceuticals entered into an intellectual property (“IP”) transfer agreement (the “F351 Transfer Agreement”) with GNI Japan and certain of its wholly owned subsidiaries (the “GNI Group” or “GNI”). According to the F351 Transfer Agreement, Gyre Pharmaceuticals acquired the exclusive right to use Hydronidone IP rights in mainland China and the right of first offer for the global IP rights (the “F351 IP Rights”).

Under the F351 Transfer Agreement, in exchange for the F351 IP Rights, Gyre Pharmaceuticals is obligated to pay GNI Group $4.6 million upon submission of the F351 New Drug Application (the “NDA”) to Center for Drug Evaluation of the National Medical Products Administration (the “NMPA”) of the PRC, $1.2 million after the NDA passes the NMPA’s Center for Food and Drug Review and Inspection’s on-site registration inspection for the F351 product, and $7.0 million upon NMPA’s approval of the NDA.

Research and Development Programs

In addition to the F351 program, as of March 31, 2024, the Company has committed to allocate $13.0 million toward future research and development activities for various programs.

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2007
CALIFORNIA
Income Tax [Line Items]
Net operating loss carryforwards	$ 75.2
Federal Income Tax
Income Tax [Line Items]
Net operating loss carryforwards	$ 193.5	$ 156.5
Net operating loss carryforwards expiration year	2037
Net operating loss carryforwards having indefinite life	$ 191.9
State Income Tax
Income Tax [Line Items]
Net operating loss carryforwards	$ 10.5
Net operating loss carryforwards expiration year	2034

Condensed Consolidated Statements of Convertible Preferred Stock and Equity (Unaudited) - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Statutory Reserve	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Gyre Stockholders' (Deficit) Equity	Non-controlling Interest
Balance at Dec. 31, 2022	$ 72,217		$ 64	$ 32,795	$ 2,660	$ 7,395	$ (392)	$ 42,522	$ 29,695
Balance (in shares) at Dec. 31, 2022			63,588,119
Foreign currency translation adjustments	898						503	503	395
Net income	4,217					2,244		2,244	1,973
Balance at Mar. 31, 2023	77,332		$ 64	32,795	2,660	9,639	111	45,269	32,063
Balance (in shares) at Mar. 31, 2023			63,588,119
Balance at Dec. 31, 2023	13,949		$ 77	68,179	3,098	(85,538)	(1,644)	(15,828)	29,777
Balance (in shares) at Dec. 31, 2023			76,595,616
Temporary Equity, Balance at Dec. 31, 2023		$ 64,525
Temporary Equity, Balance (in shares) at Dec. 31, 2023		13,151
Stock-based compensation expense	11			11				11
Stock options exercised	$ 492			492				492
Stock options exercised (in shares)	60,297		60,297
Convertible preferred stock conversion	$ 64,525		$ 8	64,517				64,525
Convertible preferred stock conversion (in shares)			8,767,333
Temporary Equity, Convertible preferred stock conversion		$ (64,525)
Temporary Equity, Convertible preferred stock conversion (in shares)		(13,151)
Foreign currency translation adjustments	(141)						(92)	(92)	(49)
Net income	9,935					7,532		7,532	2,403
Balance at Mar. 31, 2024	$ 88,771		$ 85	$ 133,199	$ 3,098	$ (78,006)	$ (1,736)	$ 56,640	$ 32,131
Balance (in shares) at Mar. 31, 2024			85,423,246
Temporary Equity, Balance (in shares) at Mar. 31, 2024

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Trading Symbol	GYRE
Entity Registrant Name	Gyre Therapeutics, Inc.
Entity Central Index Key	0001124105
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		85,510,116
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Entity File Number	000-51173
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	56-2020050
Entity Address, Address Line One	12770 High Bluff Drive
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	567-7770
Document Quarterly Report	true
Document Transition Report	false

Leases - Schedule of Present Value Assumptions used in Calculating Present Value of Lease Payments (Detail)	Mar. 31, 2024	Dec. 31, 2023
Lessee Disclosure [Abstract]
Weighted-average remaining lease term	2 years 8 months 12 days	2 years 2 months 12 days
Weighted-average discount rate	4.80%	4.78%

Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 28,236	$ 27,553
Less: Accumulated depreciation	(4,672)	(4,265)
Property and equipment, net	23,564	23,288
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,294	12,289
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,420	7,875
Machinery and Electronic Devices
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,732	6,598
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	605	606
Motor Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 185	$ 185

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventories, Net of Reserves

Inventories, net of reserves of $3,000 and $46,000 as of March 31, 2024 and December 31, 2023, respectively, consisted of the following components (in thousands):


	March 31, 2024		December 31, 2023
Raw materials	$	724	$	919
Work in progress		2,532		1,997
Finished goods		1,683		1,365
Inventories, net	$	4,939	$	4,281

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31, 2024		December 31, 2023
Accrued payroll and welfare	$	5,930	$	5,790
Accrued expenses - selling expenses		1,734		44
Supplier reimbursement		997		2,247
Accrued sales discount		912		903
Accrued expenses - general and administrative		601		1,190
Accrued professional services		251		837
Accrued expenses - research and development		236		161
Deferred government grants		40		40
Employee reimbursement		27		648
Other accrued liabilities		39		75
Accrued expenses and other current liabilities	$	10,767	$	11,935

Schedule of Accounts and Note Receivable, Net

Accounts and note receivables, net consisted of the following (in thousands):


	March 31, 2024			December 31, 2023
Accounts receivable	$	15,209		$	15,204
Note receivable		356			389
Allowance for credit losses		(107	)		(41	)
Allowance and note receivables, net	$	15,458		$	15,552

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	March 31, 2024			December 31, 2023
Buildings	$	12,294		$	12,289
Construction in progress		8,420			7,875
Machinery and electronic devices		6,732			6,598
Furniture and fixtures		605			606
Motor vehicles		185			185
Property and equipment, gross		28,236			27,553
Less: Accumulated depreciation		(4,672	)		(4,265	)
Property and equipment, net	$	23,564		$	23,288

Revenue - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Percentage of revenue accounted sales to distributors	100.00%
Revenue from sales	$ 27,172	$ 24,931
ETUARY
Disaggregation of Revenue [Line Items]
Revenue from sales	$ 27,172	$ 24,931
ETUARY \| Sales \| ETUARY
Disaggregation of Revenue [Line Items]
Concentration risk percentage	99.20%	98.70%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Balance Sheet Components - Schedule of Accounts and Note Receivables, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 15,209	$ 15,204
Note receivable	356	389
Allowance for credit losses	(107)	(41)
Allowance and note receivables, net	$ 15,458	$ 15,552

Stock Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation


10.	Stock Based Compensation

2023 Omnibus Incentive Plan

The 2023 Omnibus Incentive Plan was approved by Catalyst’s stockholders in August 2023 and ratified by Gyre’s board of directors (the “Board”) in October 2023. The 2023 Omnibus Incentive Plan became effective on October 30, 2023. The 2023 Omnibus Incentive Plan permits the Company to issue up to 17,845,496 shares of common stock and will automatically increase by the lesser of (i) 5% of the total number of outstanding shares of common stock on December 31st of the preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Board on the first day of each fiscal year beginning on January 1, 2024. On January 1, 2024, pursuant to the automatic increase in the number of shares reserved, an additional 3,829,780 shares of common stock were reserved and made available for issuance under the 2023 Omnibus Incentive Plan.

The following table summarizes stock option activity considering the conversion of Gyre Pharmaceuticals options to Gyre options to purchase shares of Gyre common stock upon completion of the Contributions:


	Number of Shares Underlying Outstanding Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding — December 31, 2023		18,280,548		$	1.49		6.9
Options granted		1,866		$	17.86
Options exercised		(60,297	)	$	8.15
Options forfeited and cancelled		(3,622	)	$	22.85
Outstanding — March 31, 2024		18,218,495		$	1.46		6.7
Exercisable — March 31, 2024		18,205,433		$	1.46		6.7

Valuation Assumptions

The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Due to its limited relevant historical data, the Company estimated its volatility considering a number of factors, including the use of the volatility of comparable public companies. The expected term of options granted under the 2023 Omnibus Incentive Plan, all of which qualify as “plain vanilla” per SEC Staff Accounting Bulletin 107, is determined based on the simplified method due to the Company’s limited relevant history. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period.

Since no stock options were granted during the three months ended March 31, 2023, all weighted-average assumptions for that period were not applicable. The fair value of employee stock options granted during the three months ended March 31, 2024 was estimated using the following weighted-average assumptions:


	Three Months Ended March 31,
	2024			2023

Risk-free interest rate (%)		4.2	%	n/a
Expected option life (in years)		6.0		n/a
Expected dividend yield (%)		—	%	n/a
Volatility (%)		84.3	%	n/a
Weighted average share price of the Company (USD per share)	$	17.86		n/a

Total stock-based compensation expense recognized was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
General and administrative	$	11	$	—
Total stock-based compensation expense	$	11	$	—

As of March 31, 2024, the Company had an unrecognized stock-based compensation expense of $0.1 million, related to unvested stock option awards, which is expected to be recognized over an estimated weighted-average period of 2.7 years.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Employee Benefit Plans


15.	Employee Benefit Plans

Mainland China Contribution Plan

Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contribution for each employee is based on a percentage of the employee’s current compensation as required by the local government. The contributions are charged to profit or loss as they become payable in accordance with the rules of the central pension scheme. The total contributions for such employee benefits were $1.2 million and $1.0 million for the three months ended March 31, 2024 and 2023, respectively.

Defined-Contribution Savings Plan

In the U.S., the Company maintains a defined-contribution savings plan pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. The plan is available to employees who meet the minimum age and length of service requirements. The contributions made during the three months ended March 31, 2024 were immaterial.

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity


	Number of Shares Underlying Outstanding Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding — December 31, 2023		18,280,548		$	1.49		6.9
Options granted		1,866		$	17.86
Options exercised		(60,297	)	$	8.15
Options forfeited and cancelled		(3,622	)	$	22.85
Outstanding — March 31, 2024		18,218,495		$	1.46		6.7
Exercisable — March 31, 2024		18,205,433		$	1.46		6.7

Summary of Weighted Average Valuation Assumptions Used to Estimate Fair Value of Employee Stock Options Granted

The fair value of employee stock options granted during the three months ended March 31, 2024 was estimated using the following weighted-average assumptions:


	Three Months Ended March 31,
	2024			2023

Risk-free interest rate (%)		4.2	%	n/a
Expected option life (in years)		6.0		n/a
Expected dividend yield (%)		—	%	n/a
Volatility (%)		84.3	%	n/a
Weighted average share price of the Company (USD per share)	$	17.86		n/a

Summary of Stock-Based Compensation Expense Recognized

Total stock-based compensation expense recognized was as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
General and administrative	$	11	$	—
Total stock-based compensation expense	$	11	$	—

Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 27,172	$ 24,931
Cost of revenues	979	1,125
Gross profit	26,193	23,806
Operating expenses excluding cost of revenues:
Selling and marketing	12,542	12,768
Research and development	2,182	2,635
General and administrative	3,398	1,739
Total operating expenses excluding cost of revenues	18,122	17,142
Income from operations	8,071	6,664
Supplemental disclosure of stock-based compensation expense:
Stock-based compensation	11
Total assets	122,010		$ 116,539
Purchase of property and equipment	231	1,742
General and administrative
Supplemental disclosure of stock-based compensation expense:
Stock-based compensation	11
Gyre Pharmaceuticals
Segment Reporting Information [Line Items]
Revenues	27,172	24,931
Cost of revenues	979	1,125
Gross profit	26,193	23,806
Operating expenses excluding cost of revenues:
Selling and marketing	12,542	12,768
Research and development	2,009	2,635
General and administrative	2,257	1,722
Total operating expenses excluding cost of revenues	16,808	17,125
Income from operations	9,385	6,681
Supplemental disclosure of stock-based compensation expense:
Total assets	109,347		101,761
Purchase of property and equipment	217	1,742
Gyre
Operating expenses excluding cost of revenues:
Research and development	173
General and administrative	1,141
Total operating expenses excluding cost of revenues	1,314
Income from operations	(1,314)
Supplemental disclosure of stock-based compensation expense:
Stock-based compensation	11
Total assets	11,750		13,865
Purchase of property and equipment	14
Gyre \| General and administrative
Supplemental disclosure of stock-based compensation expense:
Stock-based compensation	11
Other
Operating expenses excluding cost of revenues:
General and administrative		17
Total operating expenses excluding cost of revenues		17
Income from operations		$ (17)
Supplemental disclosure of stock-based compensation expense:
Total assets	$ 913		$ 913

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Mainland China Contribution Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions for employee benefits	$ 1.2	$ 1.0

Lease - Additional Information (Detail)	1 Months Ended	3 Months Ended		12 Months Ended
Lease - Additional Information (Detail)	Nov. 30, 2023 m²	Mar. 31, 2024 USD ($) m²	Mar. 31, 2023 USD ($)	Dec. 31, 2022 m²	Dec. 31, 2023 USD ($)
Lessee Lease Description [Line Items]
Square meter area for office space under lease \| m²		968
Square meter area for laboratory center under lease \| m²	640			180
Short-term lease expenses		$ 18,000	$ 25,000
Right-of-use assets		359,000			$ 489,000
Operating lease, liability		$ 275,000
Lease expiration month and year	2027-03	2024-06		2024-08
Operating lease expense		$ 100,000	$ 100,000
Security deposits		$ 400,000
Combined square meter area for manufacturing facilities under lease \| m²		66,559
Land use rights, net assets		$ 1,500,000

Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands):


	March 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds(1)	$	3,904	$	—	$	—	$	3,904
Long-term receivable from GCBP		—		—		4,780		4,780
Total financial assets	$	3,904	$	—	$	4,780	$	8,684

Financial liabilities:
CVR derivative liability, noncurrent	$	—	$	—	$	4,780	$	4,780
Warrant liability, noncurrent		—		—		8,547		8,547
Total financial liabilities	$	—	$	—	$	13,327	$	13,327


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds(1)	$	5,860	$	—	$	—	$	5,860
Long-term receivable from GCBP		—		—		4,722		4,722
Total financial assets	$	5,860	$	—	$	4,722	$	10,582

Financial liabilities:
CVR derivative liability	$	—	$	—	$	4,722	$	4,722
Warrant liability, noncurrent		—		—		12,835		12,835
Total financial liabilities	$	—	$	—	$	17,557	$	17,557

(1)

Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets.

Summary of Assumptions to Fair Value of Warrant Liability Based on Black-Scholes Option Pricing Model

The fair value of the warrant liability is estimated based on the Black-Scholes option pricing model using the following weighted-average assumptions:


	March 31, 2024			December 31, 2023
Share price	$	17.48		$	25.70
Exercise price	$	4,915.00		$	4,915.00
Dividend yield		—	%		—	%
Risk-free interest		4.20	%		3.88	%
Term (years)		9.58			9.83
Expected volatility		84.00	%		84.00	%

Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities

The following table sets forth the changes in the estimated fair value of the Company’s Level 3 financial assets and liabilities (in thousands):


	Long-term receivable		CVR derivative		Warrant
	from GCBP		liability, noncurrent		liability
Balance at December 31, 2023	$	4,722	$	4,722	$	12,835
Changes in fair value		58		58		(4,288	)
Balance at March 31, 2024	$	4,780	$	4,780	$	8,547

Cash Equivalents

Cash equivalents consisted of the following (in thousands):


March 31, 2024	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Money market funds (cash equivalents)	$	3,904	$	—	$	—	$	3,904
Total financial assets	$	3,904	$	—	$	—	$	3,904
Classified as:
Cash and cash equivalents							$	3,904
Total financial assets							$	3,904


December 31, 2023	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Money market funds (cash equivalents)	$	5,860	$	—	$	—	$	5,860
Total financial assets	$	5,860	$	—	$	—	$	5,860
Classified as:
Cash and cash equivalents							$	5,860
Total financial assets							$	5,860

Leases - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flow, Operating Activities, Lessee [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 139	$ 127

Net Income per Share ("EPS") Attributable to Common Stockholders - Anti-dilutive Security not Included In Diluted per Share Calculations (Detail)	3 Months Ended
	Mar. 31, 2024 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	128,027
Options To Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti dilutive securities	128,027

Net Income per Share ("EPS") Attributable to Common Stockholders - Basic and Diluted EPS Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 9,935	$ 4,217
Less: Allocation of undistributed earnings to noncontrolling interest	2,403	1,973
Net income attributable to common stockholders	7,532	2,244
Less: Change in fair value of warrant liability	4,288
Net income attributable to common stockholders - diluted	$ 3,244	$ 2,244
Weighted average common shares outstanding	83,265,879	63,588,119
Weighted average shares used in calculating net income per share attributable to common stockholders, basic	83,265,879	63,588,119
Weighted average of common stock options	16,889,266	15,333,247
Weighted average of Convertible Preferred Stock (as converted)	2,119,575
Weighted average of Preferred Stock Warrants (as converted)	319,477
Weighted-average number of shares used in computing net income (loss) per share available to common stockholders, diluted	102,594,197	78,921,366
Net income per share available for common stockholders, basic	$ 0.09	$ 0.04
Net income per share available for common stockholders, diluted	$ 0.03	$ 0.03

Convertible Preferred Stock

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Convertible Preferred Stock


9.	Convertible Preferred Stock

In December 2022, Catalyst issued an aggregate of 12,340 shares of Convertible Preferred Stock to GNI Japan and GNI HK in connection with the F351 Asset Acquisition (see Note 1 — Organization and Nature of Operations of the Annual Report), which were subsequently transferred to GNI USA in October 2023.

In October 2023, immediately following the closing of the Contributions, the Company issued 811 shares of Convertible Preferred Stock and 811 Preferred Stock Warrants to GNI USA under the Private Placement. For additional information, see Note 3 — Fair Value Measurements and Financial Instruments.

In November 2023, GNI USA provided notice to the Company to convert its 13,151 shares of Convertible Preferred Stock. Each share of Convertible Preferred Stock was convertible into approximately 666.67 shares of common stock. On January 22, 2024, subject to the terms and conditions of the Convertible Preferred Stock Certificate of Designation, 8,767,333 shares of common stock were issued to GNI USA upon such conversion.

Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Segment information for the three months ended March 31, 2024 and 2023 is as follows (in thousands):


	Three Months Ended March 31, 2024
	Gyre Pharmaceuticals		Gyre			Other		Consolidated
Revenues	$	27,172	$	—		$	—	$	27,172
Cost of revenues		979		—			—		979
Gross profit		26,193		—			—		26,193
Operating expenses excluding cost of revenues:
Selling and marketing		12,542		—			—		12,542
Research and development		2,009		173			—		2,182
General and administrative		2,257		1,141			—		3,398
Total operating expenses excluding cost of revenues		16,808		1,314			—		18,122
Income (loss) from operations	$	9,385	$	(1,314	)	$	—	$	8,071

Supplemental disclosure of stock-based compensation expense:
General and administrative	$	—	$	11		$	—	$	11
Stock-based compensation total	$	—	$	11		$	—	$	11


	March 31, 2024
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	109,347	$	11,750	$	913	$	122,010

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.


	Three Months Ended March 31, 2024
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Purchase of property and equipment	$	217	$	14	$	—	$	231


	Three Months Ended March 31, 2023
	Gyre Pharmaceuticals		Gyre		Other			Consolidated
Revenues	$	24,931	$	—	$	—		$	24,931
Cost of revenues		1,125		—		—			1,125
Gross profit		23,806		—		—			23,806
Operating expenses excluding cost of revenues:
Selling and marketing		12,768		—		—			12,768
Research and development		2,635		—		—			2,635
General and administrative		1,722		—		17			1,739
Total operating expenses excluding cost of revenues		17,125		—		17			17,142
Income (loss) from operations	$	6,681	$	—	$	(17	)	$	6,664

Supplemental disclosure of stock-based compensation expense:
Stock-based compensation total	$	—	$	—	$	—		$	—


	December 31, 2023
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Total assets	$	101,761	$	13,865	$	913	$	116,539

The table below only includes cash outflows for the purchase of property and equipment and excludes non-cash activities.


	Three Months Ended March 31, 2023
	Gyre Pharmaceuticals		Gyre		Other		Consolidated
Purchase of property and equipment	$	1,742	$	—	$	—	$	1,742

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	85,423,246	76,595,616
Common stock, shares outstanding	85,423,246	76,595,616
Convertible Preferred Stock
Temporary equity, par value	$ 0.001	$ 0.001
Temporary equity, shares authorized	5,000,000	5,000,000
Temporary equity, shares issued		13,151
Temporary equity, shares outstanding		13,151

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 9,935	$ 4,217

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Equity


8.	Stockholders’ Equity

Common Stock

Common stock reserved for future issuance is as follows:


	March 31, 2024		December 31, 2023
Options issued and outstanding		18,218,495		18,280,548
Preferred Stock Warrants issued and outstanding		540,666		540,666
Convertible Preferred Stock issued and outstanding		—		8,767,332
Total common stock reserved		18,759,161		27,588,546

2021 ATM Program

On October 15, 2021, Catalyst entered into an Equity Distribution Agreement (the “ATM Agreement”) with Piper Sandler & Co. (“Piper Sandler”) as sales agent, pursuant to which the Company may offer and sell, from time to time, through Piper Sandler, shares of the Company’s common stock, par value of $0.001 per share, with aggregate gross sales proceeds of up to $50.0 million through an at-the-market offering program (the “ATM Program”). The Company will pay Piper Sandler a commission of 3% of the gross proceeds of any shares sold. The Company also agreed to reimburse Piper Sandler for certain expenses incurred in connection with its services under the ATM Agreement, including up to $50,000 for legal expenses in connection with the establishment of the ATM Program. The Company did not utilize this or any other ATM Program during the quarter ended March 31, 2024.

Sales of shares of common stock under the ATM Program may be made pursuant to the registration statement on Form S-3 (File No. 333-253874), which was declared effective by the SEC on May 3, 2021, and a related prospectus supplement filed with the SEC on October 15, 2021. For the three months ended March 31, 2024 and 2023, no shares of common stock were sold under the ATM Program.

Restricted Net Assets

Under PRC laws and regulations, Gyre Pharmaceuticals is subject to restrictions on foreign exchange and cross-border cash transfers, including to parent companies and U.S. stockholders. The ability to distribute earnings to the parent companies and U.S. stockholders is also limited. Current PRC regulations permit Gyre Pharmaceuticals to pay dividends to BJContinent Pharmaceuticals Limited (“BJC”) only out of its accumulated profits as determined in accordance with PRC accounting standards and regulations. Amounts restricted include paid-in capital and the statutory reserves of Gyre Pharmaceuticals. The aggregate amounts of restricted capital and statutory reserves of the relevant subsidiaries not available for distribution were $64.3 million as of March 31, 2024 and December 31, 2023.

Statutory Reserve

Gyre Pharmaceuticals is required to set aside at least 10% of its after-tax profits as the statutory reserve fund until the cumulative amount of the statutory reserve fund reaches 50% or more of its registered capital, if any, to fund its statutory reserves, which are not available for distribution as cash dividends. At the Company’s discretion, the

Company may allocate a portion of after-tax profits based on PRC accounting standards to a discretionary reserve fund.

There were no appropriations to these reserves during the three months ended March 31, 2024 or during the year ended December 31, 2023.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Schedule of Income Tax Provision and Effectie Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 2,546	$ 2,054
Effective tax rate	20.40%	32.75%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	1 Months Ended	3 Months Ended
	May 31, 2015 CNY (¥)	Mar. 31, 2024 USD ($)	Mar. 31, 2023	Dec. 31, 2023 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents		$ 29,785		$ 33,509
Long-term certificates of deposit		23,106		$ 23,431
Short-term bank deposits		$ 7,567
Percentage of cash and cash equivalents		83.00%
Percentage of short-term bank deposits and long-term certificates of deposit		100.00%
Cash and cash equivalents denominated in RMB		$ 24,700
Customer Concentration Risk \| Sinopharm Group Co., Ltd \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		47.30%	49.40%
Customer Concentration Risk \| Sinopharm Group Co., Ltd \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		45.40%	48.70%
Customer Concentration Risk \| China Resources Pharmaceutical Group Ltd \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		17.20%	10.40%
Customer Concentration Risk \| Shanghai Pharmaceuticals Holding Co., Ltd \| Revenue
Summary Of Significant Accounting Policies [Line Items]
Concentration of customer risk		11.10%	13.50%
Maximum
Summary Of Significant Accounting Policies [Line Items]
Deposits in licensed banks protected by DIS \| ¥	¥ 500,000
ASU 2023-07
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Jan. 01, 2024
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, immaterial effect		true