Turn Therapeutics Publishes First Quarter 2026 Results Alongside Company Updates
Turn Therapeutics a clinical-stage biotechnology company focused on developing targeted inflammatory and immunological therapies for dermatologic diseases, has reported its financial results for the first quarter ended March 31, 2026, along with key updates on its clinical and corporate progress. The company highlighted continued advancement of its lead investigational candidate GX-03, strengthened financial positioning through new growth capital, and ongoing development of its broader dermatology pipeline.
Strong Clinical Momentum for Lead Program GX-03
A central focus of Turn Therapeutics’ update is the continued advancement of its lead candidate, GX-03, which is currently being evaluated in a randomized, double-blind, vehicle-controlled Phase 2 clinical trial for the treatment of moderate-to-severe atopic dermatitis (AD), a chronic inflammatory skin disorder commonly known as eczema.
The trial remains fully on schedule, with topline results still expected in mid-2026. According to the company, the study is progressing as planned, and an interim analysis is expected at approximately 50% enrollment completion. This interim assessment will be conducted by an independent data monitoring committee (DMC), which will review safety and efficacy trends to determine whether the study should continue as originally designed or potentially expand enrollment based on emerging results.
Management emphasized that this interim analysis represents a key milestone in the program, as it may provide early indicators of GX-03’s therapeutic potential in addressing inflammatory pathways associated with atopic dermatitis.
Chief Executive Officer Bradley Burnam expressed confidence in the program’s trajectory, stating that the company remains committed to disciplined execution while advancing toward key clinical readouts. He noted that upcoming milestones, including interim and topline data, could significantly influence the future direction of both the GX-03 program and the company’s broader pipeline strategy.
Strategic Financing Strengthens Balance Sheet
During the first quarter of 2026, Turn Therapeutics significantly strengthened its financial position through a newly secured growth capital facility with Avenue Venture Opportunities Fund II, L.P., part of Avenue Capital Group.
The financing agreement provides the company access to up to $25 million in term loans. As part of the initial tranche, $7 million was funded on March 24, 2026, while the remaining $18 million will become available subject to the achievement of specific clinical and corporate milestones.
This structured financing approach is intended to provide Turn Therapeutics with flexibility while aligning capital deployment with programmatic progress. The company stated that the facility enhances its ability to support ongoing clinical development activities, including the Phase 2 GX-03 study, while also enabling continued investment in pipeline expansion.
Management highlighted that the financing strengthens operational stability at a critical stage of clinical development and allows the company to pursue near-term catalysts without compromising financial discipline.
Expansion Opportunities Beyond Atopic Dermatitis
In addition to its lead dermatology program, Turn Therapeutics continues to explore additional indications for GX-03, particularly in the treatment of onychomycosis, a fungal infection of the nails that can be difficult to treat and often requires prolonged therapy.
Preclinical and in-vivo studies have demonstrated that GX-03 exhibits strong nail-plate penetration and significant reduction in fungal burden. These findings support its potential as a topical therapeutic option for onychomycosis, an area with substantial unmet medical need.
The company has indicated that further clinical development steps for this indication are planned following completion of the ongoing atopic dermatitis program. This staged approach allows the company to prioritize late-stage dermatology development while maintaining optionality for pipeline diversification.
Financial Results for First Quarter 2026
Turn Therapeutics also reported its financial performance for the quarter ended March 31, 2026, reflecting increased operational activity and continued investment in research and development.
Cash Position and Balance Sheet Strength
As of March 31, 2026, the company reported cash and cash equivalents of approximately $11.2 million, a significant increase compared to $5.08 million as of December 31, 2025. The improvement in liquidity reflects the impact of the recently secured financing and additional capital inflows during the quarter.
Total assets increased to $18.64 million, compared to $12.16 million at the end of the previous fiscal year. Meanwhile, total liabilities rose to $12.53 million, up from $7.48 million, reflecting financing activity and ongoing operational commitments. Stockholders’ equity improved to $6.12 million, compared to $4.69 million at year-end 2025.
Operating Expenses
General and administrative (G&A) expenses for the first quarter of 2026 were reported at $1.14 million, representing a substantial increase from $375,738 in the same period of 2025. The company attributed this rise primarily to higher corporate activity, financing-related costs, and expanded operational support as clinical programs advance.
Research and development (R&D) expenses totaled $109,434, compared to $9,259 in the prior-year quarter. The increase reflects continued investment in the GX-03 Phase 2 clinical trial and supporting scientific activities.
Overall, total operating expenses for the quarter reached $1.25 million, compared to $385,000 in the first quarter of 2025. As a result, the company recorded a loss from operations of approximately $1.25 million, compared to a loss of $385,000 in the prior-year period.
Net Loss and Other Financial Items
Turn Therapeutics reported a net loss of $970,972 for the quarter, compared to a net loss of $328,547 in the first quarter of 2025. On a per-share basis, the company recorded a basic and diluted net loss of $0.03, compared to $0.01 in the prior-year period.
The increase in net loss was partially offset by non-operating income, including a $697,561 net gain from the change in fair value of a derivative liability instrument. Additional contributions included interest income of $49,679 and other income of $5,578, partially offset by amortization of deferred offering costs of $477,647.
Weighted-average common shares outstanding for the quarter were 29.48 million, compared to 26.96 million in the same period last year.
Clinical Outlook and Upcoming Milestones
Looking ahead, Turn Therapeutics is preparing for a series of important clinical milestones tied to its GX-03 development program.
The Phase 2 atopic dermatitis trial remains the company’s primary focus, with interim analysis expected in the second quarter of 2026. This review will be conducted by an independent committee assessing safety, efficacy trends, and the probability of success of the study. Depending on the findings, the committee may recommend continuing the study as planned or expanding enrollment.
Following the interim analysis, topline results are expected in mid-2026. These data are anticipated to provide critical insights into GX-03’s therapeutic potential in moderate-to-severe atopic dermatitis and may represent a major inflection point for the company.
Company Overview
Turn Therapeutics is a biotechnology company dedicated to developing innovative precision therapies targeting the underlying biological mechanisms of inflammatory diseases with significant unmet medical needs.
Its lead investigational candidate, GX-03, is a potentially first-in-class, non-systemic topical inhibitor designed to modulate key inflammatory pathways associated with dermatologic conditions such as eczema. The therapy is being evaluated for its ability to provide localized treatment while minimizing systemic exposure, a characteristic that could offer advantages over existing therapeutic options.
The company’s broader mission includes expanding its dermatology pipeline and exploring additional indications where its platform technology may provide meaningful clinical benefit.
Turn Therapeutics enters the remainder of 2026 with strengthened financial positioning, advancing clinical development, and several near-term catalysts on the horizon. With its Phase 2 GX-03 trial progressing as planned and interim and topline data expected within the next several quarters, the company is approaching a potentially pivotal stage in its development pathway.
As management emphasized, the combination of clinical momentum, structured financing support, and pipeline expansion opportunities positions the company to continue executing on its long-term strategy in inflammatory and dermatologic diseases.
About Turn Therapeutics
Turn Therapeutics is a biotechnology company focused on developing innovative, precision therapies that target the underlying causes of inflammatory diseases with high unmet needs. Turn’s lead investigational therapy, GX-03, is a potentially first-in-class, non-systemic topical inhibitor currently in late-stage development for the potential treatment of moderate-to-severe atopic dermatitis (eczema). This therapy is designed to modulate key inflammatory pathways involved in eczema and other inflammatory dermatological conditions.
