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SAN DIEGO - Turnstone Biologics Corp. (NASDAQ:TSBX), a clinical-stage biotechnology company with a market capitalization of $9.45 million, has announced the discontinuation of its TIDAL-01 clinical program and is now exploring strategic alternatives to maximize shareholder value. According to InvestingPro data, the company’s stock is trading near its 52-week low at $0.41, having declined about 18% year-to-date. The program, aimed at treating solid tumors, will cease as the company looks to review potential options, including mergers, acquisitions, or asset sales.
The decision to halt TIDAL-01’s development was influenced by the need for substantial investment in manufacturing process improvements for its Selected TIL therapy, a next-generation treatment designed to select and expand potent tumor-reactive T cells. President and CEO Sammy Farah, M.B.A., Ph.D., cited the capital-intensive nature of the program and the current financial market conditions as reasons for the discontinuation. InvestingPro analysis reveals the company is quickly burning through cash, though it maintains a healthy current ratio of 3.75, indicating sufficient liquid assets to meet short-term obligations.
In light of these developments, Turnstone has engaged a financial advisor to assist with the strategic review process. The company has stated that it will not disclose further developments until it deems further disclosure appropriate or legally required. For investors seeking deeper insights into Turnstone’s financial health and future prospects, InvestingPro offers 15 additional exclusive tips and comprehensive financial metrics to help inform investment decisions.
In addition, Turnstone is implementing workforce reductions and cost-containment measures to conserve cash. However, the company plans to retain essential employees to support value-realization during the strategic review.
Dr. Farah expressed gratitude to the patients, investigators, collaborators, and the Turnstone team for their dedication to the TIDAL-01 program and to the shareholders for their support.
This move comes as part of Turnstone’s broader efforts to adjust its business strategy in the face of challenging conditions. The company’s focus on Selected TIL therapy represents an innovative approach in the treatment of solid tumors, aiming to improve upon the limitations of first-generation bulk TIL therapies.
The information disclosed in this article is based on a press release statement from Turnstone Biologics.
In other recent news, Turnstone Biologics has seen a shift in its stock rating, with BofA Securities downgrading it from Neutral to Underperform. This decision follows a review of the third quarter updates, which pointed out challenging market conditions for cell therapy treatments. Factors such as limited availability of bed space at infusion centers and slower patient enrollment rates were cited as significant challenges for the company’s progress.
In further developments, Turnstone Biologics has been advancing its tumor-infiltrating lymphocyte (TIL) selection methods, as presented at the Society for Immunotherapy of Cancer (SITC) 39th Annual Meeting. The company’s research supports the development of its clinical candidate TIDAL-01, a therapy designed to isolate and selectively expand the most potent neoantigen-reactive TILs from a patient’s tumor.
Lastly, despite the potential of TILs to be effective beyond the currently approved therapy, operational challenges could hinder Turnstone’s ability to capitalize on this opportunity. The new price objective set by BofA Securities reflects an updated analysis that includes Turnstone’s third-quarter financial results, financing activities, operating expenses, and a lowered probability of success estimate for uveal melanoma treatment. These are the recent developments for Turnstone Biologics.
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