Turn Therapeutics Secures Up to $25 Million in Financing From Avenue Capital Group

Key Terms

atopic dermatitis medical

A chronic inflammatory skin condition, often called eczema, that causes dry, itchy, red patches and recurring flare-ups; think of it as a persistent rash that can come and go over a person’s life. It matters to investors because its chronic nature and large patient population create steady demand for treatments, influence drug development and approval decisions, affect healthcare costs and reimbursement, and can drive revenue and valuation shifts for companies working on therapies and diagnostics.

onychomycosis medical

A fungal infection of the fingernails or toenails that causes thickening, discoloration and often crumbling or separation from the nail bed; think of it as mold growing under a painted surface. It matters to investors because the condition drives demand for prescription drugs, over‑the‑counter treatments, medical devices and clinical trials, and changes in treatment options, approval outcomes or reimbursement can affect sales, market size and company valuations.

phase 2 medical

Phase 2 is the mid-stage clinical trial where a new drug or treatment is tested in a larger group of patients to see if it works and to keep checking safety after initial human testing. Think of it as a field test that proves whether a product actually delivers its promised benefit. Investors watch Phase 2 closely because its results strongly influence a medicine’s chances of reaching the market, the size of its potential sales, and the company’s valuation.

registrational trials regulatory

Registrational trials are the late-stage clinical studies designed to provide the evidence regulators need to decide whether a new drug or medical device can be approved for sale. Think of them as the final exam a medicine must pass to get a license: clear, positive results can unlock broad market access and revenue, while failures can wipe out expected future sales, making these trials a major driver of investment risk and value.

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Financing Extends Runway and Supports Continued Advancement of Atopic Dermatitis (Eczema) and Onychomycosis (Nail Fungus) Programs

LOS ANGELES--(BUSINESS WIRE)-- Turn Therapeutics, Inc. (Nasdaq: TTRX), a clinical-stage dermatology company developing novel therapies for inflammatory skin diseases, today announced it has entered into a growth capital loan facility with Avenue Venture Opportunities Fund II, L.P., a fund of Avenue Capital Group, for up to $25 million. The facility includes an initial $7 million tranche funded at closing, with up to an additional $18 million available upon achievement of clinical and corporate milestones.

“This financing comes at a critical inflection point for Turn as we approach the mid-year readout of our Phase 2 trial in moderate-to-severe atopic dermatitis,” said Brad Burnam, Chief Executive Officer of Turn Therapeutics. “GX-03 has generated encouraging independent investigator-sponsored human data in onychomycosis, where effective treatment options remain limited. We intend to continue advancing the onychomycosis program in parallel with delivering the Phase 2 atopic dermatitis data from our ongoing trial.”

Funds from the initial tranche of the Avenue Capital Group financing are expected to extend Turn Therapeutics’ runway through its Phase 2 atopic dermatitis readout and support preparation for registrational trials for GX-03 as a treatment for moderate-to-severe atopic dermatitis and onychomycosis. The Company anticipates that proceeds from the full financing will extend the runway through the end of 2027.

“We are pleased to partner with Turn Therapeutics and support its development of differentiated therapies in dermatology,” said Chad Norman, Senior Portfolio Manager at Avenue Capital Group. “We were impressed by the clinical progress to date and the potential of GX-O3 across multiple indications, and we structured this facility to support the Company’s next phase of growth.”

About Avenue Capital Group

Avenue Capital Group is a global investment firm focused primarily on opportunistic credit and special situations investments across the United States, Europe, and Asia. Founded in 1995 by Marc Lasry and Sonia Gardner, Avenue manages over $11 billion in assets with offices worldwide.

About Turn Therapeutics

Turn Therapeutics is a clinical-stage biotechnology company developing precision therapies for inflammatory skin diseases. Its lead candidate, GX-03, is a first-in-class, non-systemic topical therapy in development for moderate-to-severe atopic dermatitis, with additional potential in onychomycosis and other dermatologic conditions.

Forward-Looking Statement

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “suggest,” “target,” “aim,” “should,” “will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Turn’s current expectations and are subject to inherent uncertainties, risks, and assumptions that are difficult to predict, including risks related to the timing and effectiveness of the Company’s registration statement, the success of development programs, and the Company’s ability to execute its strategic plan. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Turn Therapeutics in general, see the risk disclosures in the Company’s filings with the SEC. All such forward-looking statements speak only as of the date they are made, and Turn undertakes no obligation to update or revise these statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260324462192/en/

Investor Relations/Media Contact:
Sasha Damouni
Damouni Group, LLC
Sasha@damounigroup.com

Source: Turn Therapeutics, Inc.