Turnstone Biologics Reports $70.8 Million Net Loss for 2024, Halts Clinical Trials

Turnstone Biologics Corp. reported a net loss of $70.8 million for the year ended December 31, 2024, compared to a net loss of $55.2 million in 2023. This increase in net loss is primarily attributed to a decrease in collaboration revenue, from $19.3 million in 2023 to $0 million in 2024, due to the termination of the Takeda Agreement. Research and development expenses decreased by $4.4 million to $56.1 million, primarily due to a reduction in pre-clinical research and personnel costs following a company restructuring in October 2024. General and administrative expenses also decreased slightly, by $1.5 million, to $16.4 million.

Significant changes occurred during the reporting period. On January 30, 2025, the company's board of directors approved the discontinuation of all clinical studies evaluating its lead product candidate, TIDAL-01, and initiated a process to explore strategic alternatives to maximize stockholder value. These alternatives include mergers, acquisitions, asset sales, and licensing agreements. The company also underwent a restructuring in October 2024, resulting in a 60% workforce reduction and changes in leadership. As of March 15, 2025, the company employed 14 full-time employees. Additionally, the company received approval to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market on March 27, 2025.

The company's financial performance was significantly impacted by the decision to halt clinical trials and pursue strategic alternatives. The termination of the Takeda Agreement resulted in the complete loss of collaboration revenue for 2024. While research and development expenses decreased due to the restructuring, the company anticipates further declines in these expenses as it winds down its clinical trial activities. The company's cash and cash equivalents totaled approximately $28.9 million as of December 31, 2024, which the company believes is sufficient to fund operations for at least the next 12 months.

Turnstone Biologics Corp. raised $80 million in gross proceeds from its initial public offering (IPO) on July 25, 2023, and an additional $7.8 million from the exercise of the underwriters' option. The company intends to use the remaining IPO proceeds to pursue strategic alternatives. The company's collaborations with Moffitt Cancer Center continue under a master collaboration agreement and a separate alliance agreement, with ongoing obligations and potential milestone payments. The company holds numerous patents and patent applications related to TIL therapy and viral immunotherapy.

The company's outlook is contingent upon the success of its strategic review process. While the company believes it has sufficient cash to fund operations for at least the next 12 months, the ultimate outcome of the strategic review process, including the possibility of a dissolution and liquidation, remains uncertain. The company acknowledges numerous risks, including competition, regulatory hurdles, and the inherent uncertainties of clinical development and commercialization. The company's future financial performance and ability to generate revenue depend heavily on the successful identification and implementation of strategic alternatives.