Turn Therapeutics Secures $25 Million Financing

Turn Therapeutics, a clinical-stage biotechnology company specializing in dermatology, has announced a debt financing agreement worth $25 million with Avenue Capital Group. The funding is structured as a growth capital loan facility, providing an initial $7 million at closing and an additional $18 million contingent on achieving specific clinical and corporate milestones.

Financing Details

The agreement aims to bolster Turn Therapeutics' operational capabilities as it progresses through key clinical stages. The financing is projected to support the company through the anticipated mid-year results of its Phase 2 trial for moderate-to-severe atopic dermatitis. Additionally, the funds will aid in the ongoing development of GX-03, the company's lead candidate, which is under evaluation for both atopic dermatitis and onychomycosis.

Lead Investor

Avenue Capital Group, a prominent investment firm, is the lead investor in this financing round. Chad Norman, Senior Portfolio Manager at Avenue Capital Group, expressed confidence in Turn Therapeutics' clinical advancements and the potential of GX-03 across various indications.

Strategic Use of Funds

The funds are earmarked for several critical initiatives:

  • Clinical Trials: Support for the Phase 2 trial of GX-03 in moderate-to-severe atopic dermatitis.
  • Development Programs: Continued advancement of GX-03 for both atopic dermatitis and onychomycosis.
  • Preparations for Future Trials: Laying groundwork for potential registrational trials based on clinical progress.

Leadership Comments

Bradley Burnam, Founder and CEO of Turn Therapeutics, highlighted the significance of this financing at a pivotal moment for the company. "This financing comes at a critical inflection point for Turn as we approach the mid-year readout of our Phase 2 trial in moderate-to-severe atopic dermatitis," Burnam noted. He emphasized the dual focus on advancing the onychomycosis program alongside the atopic dermatitis trial.

Looking Ahead

If fully utilized, the financing facility is expected to sustain Turn Therapeutics' operations through the end of 2027, providing a substantial runway for clinical development and potential market entry. The company is poised to make significant strides in the dermatology sector, particularly with its innovative approach to treating conditions with limited existing options.