Turnstone Biologics will discontinue the TIDAL-01 clinical program and explore strategic alternatives to maximize shareholder value.
Quiver AI Summary
Turnstone Biologics Corp. has announced the discontinuation of all clinical studies related to its TIDAL-01 program due to the capital-intensive nature of manufacturing for its Selected TIL therapy and concerns over future funding. The company's management and Board of Directors are now exploring strategic alternatives to maximize shareholder value, which may include potential acquisitions or business combinations. Additionally, Turnstone will reduce its workforce and implement cost-containment measures while retaining essential staff for its strategic review. CEO Sammy Farah expressed gratitude to patients, collaborators, and team members for their contributions to the clinical efforts. The company has engaged a financial advisor to assist in exploring these options and does not plan to disclose further updates unless necessary.
Potential Positives
- The Company has engaged a financial advisor to assist in exploring strategic alternatives aimed at maximizing shareholder value.
- Turnstone intends to explore various strategic options, including potential acquisitions, mergers, or other transactions, which could provide future growth opportunities.
- The decision to streamline operations through workforce reduction and cost-containment measures indicates a proactive approach to financial management.
Potential Negatives
- The decision to discontinue all clinical studies evaluating TIDAL-01 indicates significant setbacks in the company's research and development efforts, potentially undermining investor confidence.
- Reduction of workforce and implementation of further cost-containment measures signal financial distress and may affect company morale and operational effectiveness.
- Engagement of a financial advisor to explore strategic alternatives raises concerns about the company's long-term viability and suggests that a merger or acquisition may be necessary for survival.
FAQ
Why has Turnstone Biologics decided to discontinue TIDAL-01 development?
Turnstone determined to halt TIDAL-01 due to capital-intensive manufacturing and funding challenges in the current financial markets.
What strategic alternatives is Turnstone exploring?
Turnstone is reviewing options like acquisitions, mergers, asset sales, or licensing to maximize shareholder value.
How will the company support its remaining workforce?
The company intends to retain essential staff needed for value-realization during its strategic review process.
What impact does this decision have on Turnstone's clinical studies?
All clinical studies evaluating TIDAL-01 in solid tumors have been concluded and will not continue.
Who can investors contact for further information?
Investors can contact Ahmed Aneizi at Turnstone Biologics for inquiries regarding the company's activities and plans.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
SAN DIEGO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Turnstone Biologics Corp. (“Turnstone” or the “Company”) (Nasdaq: TSBX) today announced that it has completed an assessment of its business and operations, including the status of its program, resources, and capabilities. The Company has made the determination to discontinue all clinical studies evaluating TIDAL-01 and halt further development of the program. As a result, Turnstone’s management and its Board of Directors have initiated a process to explore and review strategic alternatives focused on maximizing shareholder value.
“Manufacturing for our Selected TIL therapy requires continued investment in process improvements. Due to these capital-intensive requirements and after careful review of future funding needs and the current financial markets, the Company has decided to discontinue development of TIDAL-01 and to conclude all clinical studies evaluating the program in solid tumors,” said Sammy Farah, M.B.A., Ph.D., Turnstone’s President and Chief Executive Officer.
Turnstone has engaged a financial advisor to assist in this process, and along with support from its other advisors, intends to explore potential strategic alternatives that may include, but are not limited to, an acquisition, merger, business combination, sale of assets, licensing, or other transactions. Turnstone does not intend to disclose further developments unless and until it is determined that further disclosure is appropriate or legally required.
In addition, Turnstone is reducing its workforce while also implementing further cost-containment and cash conservation measures. The Company intends to retain all employees essential for supporting value-realization as part of its strategic review.
“I would like to convey our deepest gratitude to the patients, investigators, and collaborators for their participation in our clinical development efforts. I also wish to sincerely thank the Turnstone team members who worked so tirelessly on this program, and our shareholders for their commitment to our Company,” concluded Dr. Farah.
About Turnstone
Turnstone Biologics is a clinical-stage biotechnology company with a differentiated approach to treat and cure patients with solid tumors by pioneering selected tumor-infiltrating lymphocyte (Selected TIL) therapy. Turnstone’s next-generation TIL therapy is based upon the identification, selection and expansion of the most potent tumor-reactive T cells, known as Selected TILs, and is designed to overcome the limitations of first-generation bulk TIL that have demonstrated objective responses only in limited tumor types. For additional information about Turnstone, please visit
www.turnstonebio.com
, and follow us on
LinkedIn
.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the Company’s plans to explore and evaluate strategic options to enhance and preserve shareholder value; the Company’s ability to enter into any agreements or transactions in connection with the exploration of potential strategic alternatives, or if complete, that any such agreements or transactions will be successful or on attractive terms; the Company’s plans to take such other actions as necessary to reduce cash burn, and potential benefits of its cash preservation activities. All statements, other than statements of historical fact, contained in this Current Report, including statements regarding future events are forward-looking statements and can be identifies by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” “plan,” “potential,” “should,” “target,” “will” or “would,” or the negative of these terms or other comparable terminology. These statements are based on the current plans, objectives, estimates, expectations and intentions, beliefs and assumptions of our management team, and on information currently available to such management team and are not guarantees of future performance and inherently involve numerous risks and uncertainties, many of which are beyond Turnstone’s control. Turnstone undertakes no obligation to update or revise publicly any of the forward-looking statements after the date hereof to conform the statements to actual results or changed expectations except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, but are not limited to, risks and uncertainties related to: the Company’s ability to execute its planned exploration and evaluation of strategic alternatives; and unexpected demands on the Company’s cash resources; and other risks, including those described under the heading “Risk Factors” in Turnstone’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents Turnstone has filed, or will file, with the SEC.
Contact
Ahmed Aneizi
Investor Relations
Turnstone Biologics
(347) 897-5988
ahmed.aneizi@turnstonebio.com
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