** Shares of Gyre Therapeutics GYRE.O down 15.3% before the bell to $9.50 after follow-on priced

** San Diego-based biotech late Thurs announced ~2.2 mln shares at $9 for $20 mln gross proceeds

** Offering price represents 19.7% discount to stock's last sale

** Co intends to use net proceeds to fund advancement of its Phase II trial of F351 in metabolic dysfunction-associated steatohepatitis ("MASH”)-associated liver fibrosis in the U.S., for R&D, and manufacturing among other purposes

** Jefferies is bookrunner for offering

** Late Thurs, co said its lead compound, Hydronidone (F351), met primary endpoint in pivotal Phase III trial evaluating efficacy and safety for treatment of fibrosis in patients with chronic hepatitis B in China

** With ~93.8 mln shares outstanding as of May 1, co has ~$1bln market cap

** GYRE shares on Thurs rose 8.1% to $11.21, trimming YTD loss to ~7%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))