Turnstone Biologics Corp. Reports First Quarter 2025 Financial Results and Provides Recent Corporate Highlights

Rhea-AI Summary

Turnstone Biologics (NASDAQ: TSBX) reported its Q1 2025 financial results and announced significant operational changes. The company has discontinued all TIDAL-01 clinical studies in January 2025 and is now exploring strategic alternatives to maximize shareholder value. In March 2025, Turnstone transferred its listing from Nasdaq Global Market to Nasdaq Capital Market, maintaining its "TSBX" ticker symbol.

Financial results show cash and investments of $21.9 million as of March 31, 2025. R&D expenses decreased significantly to $4.4 million from $15.8 million in Q1 2024, primarily due to clinical development shutdown. G&A expenses remained stable at $4.8 million. The company's net loss improved to $11.8 million compared to $19.6 million in the same period last year.

Positive

• Net loss improved to $11.8 million from $19.6 million year-over-year
• R&D expenses reduced significantly by 72% to $4.4 million
• Maintained $21.9 million in cash and investments

Negative

• Discontinued all TIDAL-01 clinical studies, halting core program development
• Forced to transfer from Nasdaq Global Market to Nasdaq Capital Market
• Company seeking strategic alternatives, indicating potential business model uncertainty

Insights

Biotech Investment Analyst

Turnstone's discontinuation of its main clinical program signals a company in crisis, now exploring strategic alternatives with limited runway.

The announcement from Turnstone Biologics represents a critical inflection point in the company's trajectory. The discontinuation of all TIDAL-01 clinical studies effectively dismantles the company's core therapeutic approach – their Selected TIL therapy for solid tumors. This is not a mere pipeline adjustment but a fundamental abandonment of their primary value proposition.

The downgrade from Nasdaq Global Market to Nasdaq Capital Market further signals deteriorating financial health. This transition typically occurs when companies no longer meet the more stringent requirements of the Global Market, potentially related to market capitalization thresholds.

While the financial results show a narrowed net loss of $11.8 million compared to $19.6 million in the prior year, this improvement stems entirely from slashed R&D spending ($4.4 million vs $15.8 million), reflecting the clinical program termination rather than operational efficiency. The $21.9 million cash position provides some runway, but appears insufficient for pivoting to an entirely new therapeutic approach.

The euphemistic language around "exploring strategic alternatives" and "maximizing shareholder value" typically indicates the company is seeking acquisition, merger, or asset sale scenarios. Without its main program, Turnstone has effectively transitioned from a development-stage biotech to a corporate shell with remaining assets and cash.

For investors, this represents a fundamental transformation of their investment thesis. What was once a bet on novel cancer immunotherapy has become a wager on management's ability to extract remaining value through strategic transactions. The company has entered a critical phase where its future existence in its current form appears highly uncertain.

SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) -- Turnstone Biologics Corp. (“Turnstone” or the “Company”) (Nasdaq-CM: TSBX), a biotechnology company historically focused on the development of a differentiated approach to treat and cure patients with solid tumors by pioneering selected tumor-infiltrating lymphocyte (“Selected TIL”) therapy, today reported financial results for the first quarter ended March 31, 2025, and provided recent corporate updates.

Corporate Updates

In January 2025, Turnstone made the determination to discontinue all TIDAL-01 clinical studies and halted further development of the program. As a result, the Company initiated a process to explore a range of potential strategic alternatives focused on maximizing shareholder value. Turnstone continues to evaluate strategic alternatives and will provide additional updates when it is determined that further disclosure is appropriate or legally required.

In March 2025, Turnstone received approval from the Listing Qualifications Department at the Nasdaq Stock Market (“Nasdaq”) to transfer listing of its shares from the Nasdaq Global Market to the Nasdaq Capital Market. This transfer was effective as of the opening of business on March 31, 2025, and the Company’s shares of Common Stock continue to trade under the “TSBX” ticker symbol. The approval by Nasdaq was conditioned upon the Company meeting the applicable market value requirement of publicly held shares for continued listing and all other applicable requirements for listing on the Nasdaq Capital Market.

Financial Highlights

Cash, Cash Equivalents and Short-Term Investments: As of March 31, 2025, cash, cash equivalents and short-term investments were $21.9 million.

Research and Development (R&D) Expenses: R&D expenses for the three months ended March 31, 2025, were $4.4 million, compared to $15.8 million for the same period in 2024. The decrease was due primarily to shutting down almost all clinical development activities and the pursuit of strategic alternatives.

General and Administrative (G&A) Expenses: G&A expenses for the three months ended March 31, 2025, were $4.8 million, compared to $4.9 million for the same period in 2024.

Net Loss: Net loss for the three months ended March 31, 2025, was $11.8 million, compared to net loss of $19.6 million for the same period in 2024.

About Turnstone

Turnstone Biologics is a biotechnology company historically focused on the development of a differentiated approach to treat and cure patients with solid tumors by pioneering selected tumor-infiltrating lymphocyte (“Selected TIL”) therapy. For additional information about Turnstone, please visit www.turnstonebio.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that may occur in the future are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements in this press release regarding Turnstone’s plans to explore and evaluate a range of potential strategic alternatives focused on maximizing shareholder value. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied by such forward-looking statements. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: Turnstone’s ability to execute its planned exploration and evaluation of strategic alternatives; Turnstone’s ability to maintain compliance with Nasdaq’s listing rules; and unexpected demands on Turnstone’s cash resources. For a fuller description of risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements, see Turnstone’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on March 31, 2025, and Turnstone’s Quarterly Reports on Form 10-Q, especially, in each case, under the caption “Risk Factors,” as well as other documents that may be filed by Turnstone from time to time with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Turnstone undertakes no obligation to update any forward-looking statement in this press release, except as required by law.

Contact:

Ahmed Aneizi
Investor Relations
Turnstone Biologics
(347) 897-5988
ahmed.aneizi@turnstonebio.com

Turnstone Biologics, Corp. Condensed Consolidated Statement of Operations and Comprehensive Income (Loss)(unaudited) (In thousands, except share and per share data)
	Three Months Ended March 31,
	2025				2024
Collaboration revenue	$	—			$	—
Operating expenses:
Research and development		4,357				15,790
General and administrative		4,807				4,901
Total operating expenses		9,164				20,691
Loss from operations		(9,164	)			(20,691	)
Other (expense) income, net		(2,640	)			1,078
Net loss before income taxes		(11,804	)			(19,613	)
(Provision) benefit for income taxes		(2	)			(16	)
Net loss	$	(11,806	)		$	(19,629	)
Other comprehensive (loss) income		-				(117	)
Total comprehensive loss	$	(11,806	)		$	(19,746	)
Net loss attributable to common stockholders, basic and diluted		(11,806	)			(19,629	)
Weighted-average shares of common stock outstanding, basic and diluted		23,138,209				23,011,795
Net loss per share attributable to common stockholders, basic and diluted	$	(0.51	)		$	(0.85	)

Turnstone Biologics, Corp. Condensed Consolidated Balance Sheet (amount in thousands)
	March 31, 2025				December 31, 2024
	(unaudited)
Cash and cash equivalents and short term investments	$	21,847			$	28,926
Total assets		27,613				40,139
Total liabilities		7,627				8,672
Total stockholders' deficit		19,986				31,467

FAQ

Why did Turnstone Biologics (TSBX) discontinue its TIDAL-01 clinical studies in 2025?

Turnstone Biologics discontinued all TIDAL-01 clinical studies in January 2025 and is now exploring strategic alternatives to maximize shareholder value. The specific reason for discontinuation was not disclosed in the press release.

What is Turnstone Biologics (TSBX) current financial position in Q1 2025?

As of March 31, 2025, Turnstone has $21.9 million in cash and investments, with reduced R&D expenses of $4.4 million and a net loss of $11.8 million for Q1 2025.

Why did TSBX move from Nasdaq Global Market to Nasdaq Capital Market?

Turnstone received approval to transfer to Nasdaq Capital Market in March 2025, conditional upon meeting applicable market value requirements for publicly held shares and other listing requirements.

How much did Turnstone Biologics reduce its R&D expenses in Q1 2025?

Turnstone's R&D expenses decreased from $15.8 million in Q1 2024 to $4.4 million in Q1 2025, a 72% reduction, due to shutting down clinical development activities.