Turnstone Biologics Reports $11.8 Million Net Loss in Q1 2025, Discontinues Clinical Studies

Turnstone Biologics Corp. reported a net loss of $11.8 million for the first quarter of 2025, a significant decrease from the $19.6 million loss recorded in the same period of 2024. The company's total operating expenses fell to $9.2 million, down from $20.7 million year-over-year, primarily due to a reduction in research and development costs, which dropped by 72% to $4.4 million as the company discontinued all clinical studies evaluating its lead candidate, TIDAL-01. General and administrative expenses remained relatively stable at $4.8 million, compared to $4.9 million in the prior year.

In terms of financial position, Turnstone's cash and cash equivalents decreased to $21.8 million as of March 31, 2025, down from $28.9 million at the end of 2024. The company has indicated that this cash balance is expected to be sufficient to fund its operations for at least the next twelve months. However, it has also acknowledged the need for additional capital to support future development activities, should it resume them. The accumulated deficit as of March 31, 2025, stood at $259.4 million, reflecting the ongoing financial challenges faced by the company.

Strategically, Turnstone's Board of Directors approved the discontinuation of all company-sponsored clinical studies on January 30, 2025, and is now pursuing strategic alternatives to enhance stockholder value. This includes exploring options such as mergers, asset sales, or licensing agreements. The company has also reduced its workforce significantly, with only eight employees remaining as of the end of March 2025. This restructuring is part of a broader effort to conserve cash and streamline operations during this transitional phase.

Turnstone's common stock was transferred from the Nasdaq Global Market to the Nasdaq Capital Market on March 31, 2025, following a deficiency notice regarding its stock price. The company has been granted an additional 180-day grace period to regain compliance with the minimum bid price requirement of $1.00 per share. If compliance is not achieved, the stock may face delisting, which could adversely affect its liquidity and market price.

Looking ahead, Turnstone's future remains uncertain as it navigates the strategic alternatives process. The company has engaged a financial advisor to assist in this exploration, but there are no guarantees that any potential transactions will be completed or that they will enhance stockholder value. The ongoing evaluation of its business strategy and the potential for further workforce reductions may impact its operational capabilities and market position in the biotechnology sector.