Struggling biotech company Turnstone Biologics has filed for an $86 million IPO on Nasdaq in hopes of raising funds to stay afloat, according to an SEC filing. The company had only $64 million in operating capital by March 2023 and suffered net losses of $30 million in 2022. Turnstone focuses on developing oncolytic viruses and tumor-infiltrating lymphocytes (TILs) to target cancer. Its partnerships with AbbVie and Takeda ended in 2021 and 2022, respectively. Turnstone is now focusing on selected TILs, which it believes will extend the clinical benefit of TILs across most solid tumors. The IPO is seen as a litmus test for the struggling biotech industry.
Turnstone Biologics, which is one of many companies formed recently to develop oncolytic viruses that attack cancers, is hoping to raise sufficient funds to support its Phase I work and integrate viral immunotherapies with its TIL products. Its move comes amid serious concerns about the company's finances as there is "substantial doubt" among management and independent registered public accounting firm whether it can stay afloat without the cash infusion of a successful IPO. This year has already proven challenging for the bi