Turnstone Biologics, a Phase 1 biotech developing selected TIL therapies for solid tumors, announced terms for its IPO on Monday.
The La Jolla, CA-based company plans to raise $75 million by offering 5.8 million shares at a price range of $12 to $14. Takeda has agreed to submit a non-binding indication of interest on $8 million worth of shares in the offering (11% of the deal); if Takeda does not submit an indication of interest, then the company plans to sell $8 million worth of shares to Takeda in a concurrent private placement. At the midpoint of the proposed range, Turnstone Biologics would command a fully diluted market value of $288 million.
Utilizing a differentiated approach to tumor infiltrating lymphocytes (TILs), Turnstone's selected TILs are designed to extend clinical benefit across the majority of solid tumors. The company's lead candidate, TIDAL-01, is undergoing a Phase 1 trial for the treatment of breast cancer, colorectal cancer, and uveal melanoma. It is also conducting an investigator sponsored trial with Moffitt, in both cutaneous and non-cutaneous melanomas. Non-clinical studies in multiple tumor samples have achieved tumor-reactive T cell frequencies in Selected TIL drug product of up to 62% (targeting >70%), with a median frequency of 23%. Turnstone intends to provide an initial clinical update across these two trials in mid-2024.
Turnstone Biologics was founded in 2015 and booked $82 million in collaboration revenue for the 12 months ended March 31, 2023. It plans to list on the Nasdaq under the symbol TSBX. BofA Securities, Leerink Partners, and Piper Sandler are the joint bookrunners on the deal. It is expected to price during the week of July 17, 2023.
