By Kelly Cloonan

Shares of Gyre Therapeutics declined after the company announced an underwritten public stock offering, undercutting positive trial progress in China for its treatment for liver fibrosis.

The stock fell 15% to $9.49 in after-hours trading. Shares have declined 17% in the past 12 months through Thursday's close.

The biotechnology company said it plans to use the proceeds of the offering to advance its Phase 2 clinical trial of its Hydronidone compound to treat liver fibrosis in the U.S., as well as for research and development and other purposes.

The company didn't disclose the size or share price of the offering. It expects to grant the underwriters a 30-day option to purchase additional shares at the public offering price.

The offering lists Jefferies and H.C. Wainwright as its underwriters.

The company also said Hydronidone met the primary endpoint in a Phase 3 trial to treat liver fibrosis in patients with chronic hepatitis B in China. The compound demonstrated a 53% regression in liver fibrosis, compared to 30% for a placebo, the company said.

Pending regulatory approval, Hydronidone could become the first therapy specifically indicated for reversing liver fibrosis in such patients in China, Chief Executive Han Ying said. The results pave the way for broader expansion into metabolic dysfunction-associated steatohepatitis-related fibrosis in the U.S., Ying said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 22, 2025 18:18 ET (22:18 GMT)

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