Gyre Therapeutics tumbles after equity raise

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%