Shares of Gyre Therapeutics (NASDAQ: GYRE) are soaring 7.12% in pre-market trading on Wednesday following the release of its Full Year 2024 financial results. The biotechnology company has shown significant improvement in its financial performance, turning profitable despite a slight decline in revenue.
Gyre Therapeutics reported revenue of $105.8 million for the full year 2024, down 6.8% from the previous year but beating analyst estimates by 4.3%. The company achieved profitability with a net income of $12.1 million, a substantial turnaround from the $92.9 million loss in 2023. This resulted in earnings per share (EPS) of $0.14, although it fell short of analyst expectations. The profit margin improved to 11%, driven by lower expenses.
The company's pipeline shows promise with two products in Phase III clinical trials, one in Phase II, and two in Phase I. Looking ahead, Gyre Therapeutics' revenue is forecast to grow at an impressive 42% per annum on average over the next three years, outpacing the 20% growth projected for the US Biotechs industry. This positive outlook, combined with the company's return to profitability and better-than-expected revenue, appears to be fueling investor optimism despite the recent 24% share price decline over the past week.
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