Turnstone Biologics Announces Plans to Explore Strategic Alternatives
Turnstone Biologics (Nasdaq: TSBX) has announced significant operational changes following a comprehensive business assessment. The company has decided to discontinue all clinical studies of TIDAL-01 and halt the program's development due to capital-intensive manufacturing requirements and current financial market conditions.
The company's management and Board of Directors have initiated a process to explore strategic alternatives to maximize shareholder value, which may include an acquisition, merger, business combination, sale of assets, or licensing. Turnstone has engaged a financial advisor to assist in this process.
As part of these changes, Turnstone is implementing workforce reductions and cost-containment measures, while retaining essential employees to support the strategic review process.
Turnstone Biologics (Nasdaq: TSBX) ha annunciato significativi cambiamenti operativi a seguito di una valutazione aziendale completa. L'azienda ha deciso di interrompere tutti gli studi clinici di TIDAL-01 e fermare lo sviluppo del programma a causa dei requisiti di produzione che richiedono capitali intensivi e delle attuali condizioni del mercato finanziario.
Il management dell'azienda e il Consiglio di Amministrazione hanno avviato un processo per esplorare alternative strategiche per massimizzare il valore per gli azionisti, che possono includere un'acquisizione, una fusione, una combinazione aziendale, la vendita di beni o la concessione in licenza. Turnstone ha ingaggiato un consulente finanziario per assistere in questo processo.
Come parte di questi cambiamenti, Turnstone sta attuando riduzioni della forza lavoro e misure di contenimento dei costi, mantenendo nel contempo i dipendenti essenziali per supportare il processo di revisione strategica.
Turnstone Biologics (Nasdaq: TSBX) ha anunciado cambios operativos significativos tras una evaluación empresarial completa. La compañía ha decidido interrumpir todos los estudios clínicos de TIDAL-01 y detener el desarrollo del programa debido a los requerimientos de fabricación que son intensivos en capital y a las actuales condiciones del mercado financiero.
La dirección de la empresa y la Junta Directiva han iniciado un proceso para explorar alternativas estratégicas que maximicen el valor para los accionistas, lo que puede incluir una adquisición, fusión, combinación empresarial, venta de activos o concesión de licencias. Turnstone ha contratado a un asesor financiero para ayudar en este proceso.
Como parte de estos cambios, Turnstone está implementando reducciones de personal y medidas de contención de costos, mientras retiene empleados esenciales para apoyar el proceso de revisión estratégica.
Turnstone Biologics (Nasdaq: TSBX)는 포괄적인 비즈니스 평가 후 중요한 운영 변화를 발표했습니다. 이 회사는 자본 집약적인 제조 요구사항과 현재의 금융 시장 상황으로 인해 TIDAL-01의 모든 임상 연구를 중단하기로 결정했습니다.
회사의 경영진과 이사회는 주주 가치를 극대화하기 위한 전략적 대안 모색 프로세스를 개시하였으며, 이는 인수, 합병, 사업 결합, 자산 매각 또는 면허 부여를 포함할 수 있습니다. Turnstone는 이 과정에서 도움을 줄 재무 자문사를 고용했습니다.
이러한 변화의 일환으로, Turnstone는 인력 감축 및 비용 절감 조치를 시행하고 있으며, 전략적 검토 프로세스를 지원하기 위해 필수 직원들을 유지하고 있습니다.
Turnstone Biologics (Nasdaq: TSBX) a annoncé des changements opérationnels importants à la suite d'une évaluation complète de l'entreprise. La société a décidé de mettre fin à toutes les études cliniques de TIDAL-01 et de suspendre le développement du programme en raison des exigences de fabrication nécessitant beaucoup de capital et des conditions actuelles du marché financier.
La direction de l'entreprise et le Conseil d'administration ont lancé un processus pour explorer des alternatives stratégiques afin de maximiser la valeur pour les actionnaires, ce qui peut inclure une acquisition, une fusion, une combinaison d'entreprises, la vente d'actifs ou des licences. Turnstone a engagé un conseiller financier pour assister dans ce processus.
Dans le cadre de ces changements, Turnstone met en œuvre des réductions d'effectifs et des mesures de contrôle des coûts, tout en conservant des employés essentiels pour soutenir le processus de révision stratégique.
Turnstone Biologics (Nasdaq: TSBX) hat nach einer umfassenden Unternehmensbewertung bedeutende betriebliche Änderungen angekündigt. Das Unternehmen hat beschlossen, alle klinischen Studien zu TIDAL-01 einzustellen und die Entwicklung des Programms aufgrund kapitalintensiver Herstellungsanforderungen und der aktuellen Finanzmarktsituation zu stoppen.
Das Management und der Vorstand des Unternehmens haben einen Prozess initiiert, um strategische Alternativen zu erkunden, um den Shareholder-Wert zu maximieren, was eine Übernahme, Fusion, Unternehmenszusammenschluss, Vermögensverkäufe oder Lizenzvergabe umfassen kann. Turnstone hat einen Finanzberater engagiert, um diesen Prozess zu unterstützen.
Im Rahmen dieser Änderungen implementiert Turnstone Personalabbau und Kostensenkungsmaßnahmen, während wesentliche Mitarbeiter zur Unterstützung des strategischen Überprüfungsprozesses erhalten bleiben.
- Engaged financial advisor to explore strategic alternatives for maximizing shareholder value
- Implementing cost-containment and cash conservation measures
- Discontinuation of all TIDAL-01 clinical studies
- Halting development of main therapeutic program
- Workforce reduction
- Capital-intensive manufacturing requirements affecting financial viability
Insights
This announcement represents a critical inflection point for Turnstone Biologics, effectively marking the company's transition into wind-down mode. The discontinuation of TIDAL-01, their key clinical program, coupled with workforce reductions and strategic review initiation, signals a terminal situation for the company's current business model.
The decision to halt TIDAL-01 development due to manufacturing challenges and capital requirements is particularly concerning. In the current biotech funding environment, companies with capital-intensive cell therapy programs face significant headwinds. The Selected TIL therapy's manufacturing complexities mirror industry-wide challenges in scaling cell therapy production, a factor that has impacted several companies in this space.
For investors, the strategic alternatives review typically presents upside potential. Given the company's sub-
- Asset sale of intellectual property and manufacturing capabilities
- Reverse merger opportunity for private companies seeking a public listing
- Complete liquidation of assets
The retention of employees essential for 'value-realization' suggests a focus on maintaining critical intellectual property and manufacturing documentation for potential asset sales. However, biotech asset sales in distressed situations historically yield minimal returns for existing shareholders, particularly when the lead program has been discontinued.
The company's strategic review comes amid a challenging period for biotech M&A, where buyers can be highly selective given the number of distressed assets available. Without active clinical programs, Turnstone's negotiating position is significantly weakened, likely leading to transaction terms that may not be favorable to current shareholders.
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
FAQ
Why did Turnstone Biologics (TSBX) discontinue its TIDAL-01 program in February 2024?
What strategic alternatives is TSBX considering after halting TIDAL-01 development?
How will TSBX's workforce be affected by the strategic review?
What cost-saving measures is TSBX implementing in 2024?
