SAN DIEGO - Turnstone Biologics Corp. (NASDAQ:TSBX), a clinical-stage biotech company, has announced a significant reorganization to prioritize its clinical program, TIDAL-01, in the development of treatments for solid tumors. The restructuring includes a workforce reduction by approximately 60% and leadership changes, aiming to extend the company's cash runway into the second quarter of 2026.
President and CEO Sammy Farah stated that the company is sharpening its clinical focus, expecting the cost-saving measures to add three quarters to its cash runway. Farah expressed gratitude to the affected employees for their dedication and contributions.
The TIDAL-01 program, based on tumor-infiltrating lymphocyte (TIL) therapy, has shown promising initial Phase 1 data, particularly in a colorectal cancer patient. Multiple Phase 1 trials are ongoing, with updates expected in the first half of 2025.
In addition to the layoffs, Turnstone is adjusting its leadership team. Dr. Ines Verdon takes over all clinical activities, Dr. Michael Fitch is promoted to oversee manufacturing operations, and Wendy Worcester will become the Principal Financial (NASDAQ:PFG) and Accounting Officer. Michael Burgess retires as Interim Chief Medical Officer but remains on the Board of Directors, and Saryah Azmat steps up as Chief Operating Officer.
Turnstone's focus on Selected TIL therapy aims to select and expand the most potent tumor-reactive T cells for more targeted tumor killing. The company's approach seeks to improve upon first-generation TIL therapies, which have shown limited response rates in certain tumor types.
The information for this article is based on a press release statement from Turnstone Biologics Corp.
In other recent news, Turnstone Biologics has been in the spotlight following the release of its first-quarter earnings for 2024 and the announcement of initial data from the ongoing STARLING trial of TIDAL-01. Turnstone Biologics reported a cash reserve of $78 million, sufficient to support operations into the latter half of 2025. The STARLING trial results showed that two out of four patients with mismatch repair-proficient metastatic colorectal cancer experienced clinical benefits.
Piper Sandler, following these developments, adjusted its price target for Turnstone Biologics to $3.75 from the previous $20.00, while maintaining an Overweight rating on the stock. The firm's decision is linked to Turnstone's strategic shift in research priorities and the inclusion of head and neck squamous cell carcinoma into their model.
Turnstone Biologics also announced positive preliminary data from its Phase 1 STARLING trial evaluating TIDAL-01, a novel therapy for metastatic colorectal cancer. The trial reported an overall response rate of 25% and a disease control rate of 50% among the first four evaluable patients treated with TIDAL-01. Turnstone plans to present a clinical update on TIDAL-01, expected to coincide with its second-quarter 2024 earnings report.
InvestingPro Insights
Turnstone Biologics Corp.'s (NASDAQ:TSBX) recent restructuring announcement aligns with several key financial indicators and market trends identified by InvestingPro. The company's decision to streamline operations and extend its cash runway comes at a critical time, as reflected in the current market data.
According to InvestingPro data, Turnstone's market capitalization stands at a modest $10.5 million, indicating the company's small-cap status in the biotech sector. This relatively small size underscores the importance of the company's strategic focus on its TIDAL-01 program and the need for efficient resource allocation.
Two relevant InvestingPro Tips shed light on Turnstone's financial situation. Firstly, the company "holds more cash than debt on its balance sheet," which supports its ability to fund operations through the extended runway into 2026. However, it is also noted that Turnstone is "quickly burning through cash," highlighting the urgency of the restructuring efforts to conserve resources.
The biotech firm's stock performance has been challenging, with InvestingPro data showing a significant price decline of 87.14% over the past year. This downward trend is further emphasized by the stock trading at only 7.9% of its 52-week high, suggesting investor skepticism about the company's near-term prospects.
These insights from InvestingPro provide valuable context to Turnstone's strategic decisions. Investors seeking a more comprehensive analysis can access 15 additional InvestingPro Tips for TSBX, offering a deeper understanding of the company's financial health and market position.
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