Gyre Therapeutics, Inc. closed its all‑stock acquisition of Cullgen Inc. on May 4, 2026, paying approximately $300 million in shares. Cullgen is now a wholly owned subsidiary, and Dr. Ying Luo, former CEO of Cullgen, has been appointed CEO and President of Gyre, positioning the combined company as a U.S.‑ and China‑based biopharmaceutical integrated platform.
The deal brings Cullgen’s degrader antibody conjugate (DAC) and targeted protein‑degradation (TPD) platform into Gyre’s pipeline, which already includes the late‑stage candidate Hydronidone (F351) for chronic hepatitis B‑associated liver fibrosis. Gyre’s commercial product, ETUARY, is sold in China for lung fibrosis, and the acquisition adds a new class of therapeutics that can be advanced through Gyre’s existing development and regulatory pathways.
Strategically, the transaction diversifies Gyre’s portfolio beyond its current idiopathic pulmonary fibrosis and liver‑fibrosis focus, broadens its therapeutic reach, and leverages Gyre’s profitable China commercial engine to fund future development. Management views the combination as a long‑term growth catalyst that will accelerate the development of new therapies and strengthen the company’s competitive position in both the U.S. and Chinese markets.
Financially, Gyre generated $105.0 million in revenue in 2024 and $116.6 million in 2025, a 10.2% year‑over‑year increase. In Q1 2025, revenue fell to $22.1 million from $27.2 million in Q1 2024, largely due to a decline in ETUARY sales. The company’s segments include Gyre Pharmaceuticals (sales of ETUARY and generics in PRC), Gyre, and Other. Gyre’s current ratio is 5.6, cash and equivalents total $75.9 million, and its market capitalization is $712 million with a price‑to‑earnings ratio of 349.
"We are eager to move forward as a U.S.- and China‑based fully integrated biopharmaceutical company," said Dr. Ying Luo. "Through this combination, we have created an entity that not only offers a commercial‑stage product with ETUARY, on the market in China for the treatment of lung fibrosis, but also a full‑spectrum pipeline of products from discovery to Phase 3, primarily focused on fibrosis and inflammatory diseases. This includes our lead product candidate, F351 (hydronidone) for the treatment of chronic hepatitis B‑induced liver fibrosis, as well as a strong preclinical and clinical pipeline, including TPDs and DACs." Ping Zhang, Executive Chairman and Interim CEO, added that 2026 is expected to be a pivotal regulatory year, noting the priority review status of Hydronidone in China and the company’s progress toward conditional approval.
Hydronidone received priority review status from China’s NMPA in March 2026 and has shown positive Phase 3 results for CHB‑associated liver fibrosis. Cullgen’s focus on targeted protein degradation positions the combined company to pursue novel therapeutic modalities across fibrosis and inflammatory disease indications, while Gyre’s existing commercial platform in China provides a robust engine to fund future development.
The Merger Agreement was dated March 2, 2026, with an expected close in early Q2 2026. Cullgen shareholders will vote on a conversion proposal on June 10, 2026. Because both companies are controlled by GNI Group Ltd., the transaction is accounted for as a common control combination, meaning Gyre’s financial statements will be retrospectively adjusted to reflect the acquisition.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.