Turnstone Biologics Corp. Announces Q1 2024 Financials and Business Highlights

Turnstone Biologics Corp. (TSBX), a clinical-stage biotechnology company based in San Diego, reported its financial results for the first quarter ending March 31, 2024, and shared recent business highlights. The company, which focuses on innovative treatments for solid tumors using Selected Tumor-Infiltrating Lymphocyte (Selected TIL) therapy, is optimistic about the future potential of its therapeutic pipeline.

Turnstone’s President and CEO, Sammy Farah, emphasized the potential of the company’s next-generation Selected TIL therapies. Farah highlighted the company's proprietary 'cell selection' process designed to produce TIL products dominated by tumor-reactive T cells. This approach aims to tackle difficult-to-treat cancers with lower mutational burdens, such as colorectal cancer and other immunologically cold tumors. Turnstone’s lead asset, TIDAL-01, is currently being tested in several Phase 1 studies for various solid tumors. The company plans to share clinical data and a TIDAL-01 update mid-year.

The company has continued the development of TIDAL-01, its primary Selected TIL therapy, which focuses on expanding TIL therapy to more solid tumor types. TIDAL-01 employs a method to isolate and expand the most tumor-reactive TILs from a patient’s tumor, aiming to treat solid tumors where first-generation TILs have been ineffective. The therapy is being evaluated in types such as colorectal cancer, head and neck squamous cell carcinoma, uveal melanoma, breast cancer, and cutaneous melanoma. Turnstone has also increased its manufacturing capacity at H. Lee Moffitt Cancer Center’s cGMP facility for its TIDAL-01 product, with FDA clearance to proceed.

In April, Turnstone secured a $20 million non-dilutive revolving credit facility from Banc of California. This facility will support the ongoing development of the company’s pipeline and clinical trials.

Turnstone also announced changes to its Board of Directors, appointing William Waddill, who brings over three decades of financial and operational expertise in biotechnology. Patrick Machado has stepped down from the board.

Financially, Turnstone reported cash, cash equivalents, and short-term investments totaling $77.8 million as of March 31, 2024. The company expects these funds to support its operations into the third quarter of 2025.

Research and Development (R&D) expenses amounted to $15.8 million for the first quarter of 2024, a slight increase from $15.7 million in the same period in 2023. The increase was driven primarily by higher manufacturing and personnel costs related to the TIDAL-01 clinical trials, although this was offset by decreased clinical, regulatory, and pre-clinical research costs following the termination of the Takeda Agreement.

General and Administrative (G&A) expenses rose to $4.9 million from $4.0 million in the same period in 2023, largely due to increased professional service costs associated with public company operations, balanced by a slight decrease in personnel costs.

Turnstone reported a net loss of $19.6 million for the first quarter of 2024, compared to a net income of $0.1 million for the same period in 2023. The decrease was primarily due to the lack of recognized Collaboration Revenue in 2024, compared to the previous year.

Turnstone Biologics continues to develop its innovative TIL therapies, with TIDAL-01 being its most advanced program, currently undergoing multiple Phase 1 studies in various cancers. The company is also progressing with its preclinical pipeline, including TIDAL-02 and a combination program involving TIDAL-01 and viral immunotherapy.