Gyre Therapeutics acquires Cullgen in $300M all-stock deal
What's the deal? San Diego-based Gyre TherapeuticsDealroom has a profile for this one. Try Dealroom → has agreed to acquire Cullgen, a clinical-stage biotech focused on targeted protein degradation, in an all-stock deal valued at approximately $300 million. The transaction is expected to close in the second quarter of 2026.
Cullgen's chief executive officer, Ying LuoDealroom has a profile for this one. Try Dealroom →, is expected to become president and CEO of the combined company, while Gyre's interim CEO and executive chairman, Ping ZhangDealroom has a profile for this one. Try Dealroom →, will remain as executive chairman.
Why now? The deal comes shortly after Cullgen terminated a proposed reverse merger with respiratory biotech Pulmatrix — making Gyre the second would-be partner in quick succession.
For Gyre, the timing is also strategic: its subsidiary, Gyre Pharmaceuticals, is preparing to file a new drug application in China for Hydronidone, a liver fibrosis treatment, and is seeking to expand that programme into ex-China markets. Adding Cullgen's pipeline gives the combined entity a broader platform ahead of that commercial push.
Gyre already has one commercial product in China — ETUARY, a lung fibrosis treatment that generated $105.8 million in net sales in 2024. Cullgen adds two clinical-stage programmes: CG001419, an oral pain and oncology drug that posted positive Phase 1 results in late 2025, and CG009301, a blood cancer treatment currently in Phase 1 trials.
What could go wrong? Targeted protein degradation is a promising but still unproven drug modality. Neither of Cullgen's lead candidates has completed pivotal trials, and the path from Phase 1 to approval is long and uncertain.
The combined company will also need to manage integration across US and China operations, with different regulatory environments and commercial teams.
Cullgen's aborted merger with Pulmatrix also raises questions. The terms of that deal's termination are not public, and it is unclear what, if any, complications carry over.
The signal: This deal reflects two converging trends: the growing appetite for targeted protein degraders — a next-generation approach to eliminating disease-causing proteins that large pharma has bet heavily on — and the increasing integration of US-listed biotechs with China-based manufacturing and commercial operations.
For smaller listed biotechs like Gyre, acquiring clinical-stage assets via all-stock deals is a capital-efficient way to build pipeline without raising cash in a difficult funding environment.
Sources:
Gyre Therapeutics
Cullgen
GlobeNewswire
Fierce Biotech
BioSpace
ConSalud
J.V.
