SAN DIEGO – Gyre Therapeutics (NASDAQ:GYRE), a biotech firm focused on developing treatments for chronic organ diseases, is expected to be included in the ® and Russell 3000® Indexes as of June 28, 2024, following the annual reconstitution of the Russell Indexes. The preliminary list of additions was announced on May 24, 2024.
The inclusion in these indexes is seen as a significant milestone for Gyre, as expressed by CEO Han Ying, Ph.D. The company anticipates that this development will increase its visibility in the investment community as it continues to progress with its lead candidate, F351, for the treatment of NASH-associated fibrosis in both the People’s Republic of China (PRC) and the United States.
The Russell Indexes reconstitution captures the 4,000 largest U.S. stocks by market capitalization as of April 30, 2024. Inclusion in the Russell 3000® means automatic inclusion in either the large-cap Russell 1000® or small-cap Russell 2000®, along with the associated growth and value style indexes. Russell, a leading global index provider and owner of the Russell Indexes, utilizes a transparent, rules-based methodology influenced by market-capitalization rankings and style attributes to determine membership.
These indexes are commonly used by investment managers and institutional investors for creating index funds and benchmarking active investment strategies. Approximately $12.1 trillion in assets are benchmarked against the Russell U.S. Indexes.
Gyre’s strategy for its lead candidate, F351, is informed by its experience in mechanistic studies using NASH rodent models and clinical studies of liver fibrosis induced by chronic hepatitis B (CHB). Additionally, Gyre is advancing its drug pipeline in the PRC through Gyre Pharmaceuticals, which includes therapeutic expansions and the development of other compounds.
InvestingPro Insights
As Gyre Therapeutics gears up to join the prestigious Russell 2000® and Russell 3000® Indexes, the market has been responding to the company’s recent activities with notable volatility. Gyre’s stock has experienced significant fluctuations, which is evident from the InvestingPro Data showing a one-week total price return of -8.47% and a stark one-month price total return of -29.92%, reflecting the stock’s big hit over the last week and month as noted in InvestingPro Tips. Despite these short-term setbacks, investors who have held onto Gyre shares for the past year have seen a high return of 78.16%, showcasing the stock’s resilience over a longer horizon.
While the company does not currently pay dividends, it operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a stable financial footing as it continues to develop its drug pipeline. However, the stock is currently trading at a high Price / Book multiple of 18.1, which may raise valuation concerns for potential investors. Moreover, with a current market capitalization of $867.93 million, Gyre’s valuation reflects the high expectations and potential investors see in its innovative treatments for chronic organ diseases.
For those considering an investment in Gyre Therapeutics, InvestingPro offers additional insights and metrics to help make informed decisions. With the use of coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to an expanded set of InvestingPro Tips. Currently, there are 13 additional tips available for Gyre, providing a comprehensive analysis of the stock’s performance and potential investment opportunities.
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