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Turn Therapeutics Reports First Quarter 2026 Financial Results and Provides Corporate Updates Phase 2 Trial for GX-03 in Moderate-to-Severe Atopic Dermatitis (AD) on Track, Topline Results Expected

Key Takeaway: Turn Therapeutics has released its financial results for the first quarter of 2026, showcasing a net loss while highlighting significant corporate developments. The company secured $7 million as part of a larger $25 million growth capital funding from Avenue Capital Group. Their lead product, GX-03, is undergoing a Phase 2 trial for moderate-to-severe atopic dermatitis, with topline results expected in mid-2026, which could influence the company's future strategy. The Phase 2 trial remains on track with an upcoming interim analysis, highlighting the focus on advancing their clinical pipeline despite financial challenges.

Market Sentiment Analysis

POSITIVE FACTORS

  • Turn Therapeutics secured $7 million in initial growth capital.
  • Phase 2 trial for GX-03 in atopic dermatitis is on schedule.
  • Expected topline results in mid-2026 with potential for significant impact.

CONCERNS & RISKS

  • The company reported a net loss of $970,972 for Q1 2026.
  • Total liabilities have increased significantly, raising financial concerns.

Full Press Release Details

Turn Therapeutics Reports First Quarter 2026
Financial Results and Provides Corporate Updates
Phase 2 Trial for GX-03 in Moderate-to-Severe
Atopic Dermatitis (AD) on Track, Topline Results Expected Mid-2026
Initial Tranche of $7 Million in Growth Capital
has been Funded by Avenue Capital Group
Westlake Village, CA - May 11, 2026 - Turn
Therapeutics Inc. (Nasdaq: TTRX), a clinical-stage biotechnology company developing targeted inflammatory and immunological therapies
for dermatologic conditions, today reported financial results for the three months ended March 31, 2026, and provided corporate updates.
"The first quarter of 2026 materially
strengthened Turn Therapeutics both operationally and financially," said Bradley Burnam, Chief Executive Officer of Turn
Therapeutics. "With the Avenue Capital facility now in place, we believe the Company is well positioned to advance our
clinical programs through multiple near-term catalysts while maintaining focus on disciplined execution. Our Phase 2 trial
evaluating GX-03 in moderate-to-severe atopic dermatitis remains on schedule, with an independent committee expected to assess
conditional probability of success at the interim analysis and determine whether the study should continue as designed or expand
enrollment based on the strength of the observed trend. We continue to expect topline results in mid-2026 and believe these
upcoming milestones have the potential to meaningfully shape the future of both our platform and pipeline."
Avenue Capital growth capital secured. On March 23, 2026, the Company closed a growth capital facility with Avenue Venture Opportunities Fund II, L.P., a fund of Avenue Capital Group, providing access to up to $25 million in term loans. The initial $7 million tranche was funded on March 24, 2026, with up to an additional $18 million available upon achievement of clinical and corporate milestones.
GX-03 in AD advancing. The Company's lead product candidate, GX-03, is being evaluated in an ongoing randomized, double-blind, vehicle-controlled Phase 2 clinical trial in adults with moderate-to-severe AD. An interim assessment will be conducted at approximately 50% trial completion by an independent data monitoring committee. Interim results are expected in the second quarter of 2026, with topline data expected to follow in mid-2026.
Quarter 2026 Financial Results
Turn Therapeutics Inc.
Consolidated Statements of Operations
Three Months Ended March 31,
2026 2025
Operating expenses:
General and administrative $ 1,136,709 $ 375,738
Research and development 109,434 9,259
Total operating expenses 1,246,143 384,997
Loss from operations (1,246,143 ) (384,997 )
Other income:
Net gain from change in fair value of derivative liability instrument 697,561 -
Amortization of deferred offering cost (477,647 ) -
Interest income 49,679 5,165
Other income 5,578 51,285
Total other income 275,171 56,450
NET LOSS $ (970,972 ) $ (328,547 )
Basic and diluted net loss per common share $ (0.03 ) $ (0.01 )
Weighted-average common shares outstanding, basic and diluted 29,476,002 26,956,217
Turn Therapeutics Inc.
Selected Balance Sheet Data
March 31, 2026 December 31, 2025
Cash and cash equivalents $ 11,217,671 $ 5,076,144
Total assets 18,644,136 12,162,241
Total liabilities 12,526,588 7,475,518
Total stockholders' equity 6,117,548 4,686,723
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.
Forward-Looking Statement
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained
in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate,"
"could," "estimate," "expect," "intend," "seek," "may," "might,"
"plan," "potential," "predict," "project," "suggest," "target,"
"aim," "should," "will," "would," or the negative of these words or other similar expressions,
although not all forward-looking statements contain these words. Forward-looking statements are based on Turn's current expectations
and are subject to inherent uncertainties, risks, and assumptions that are difficult to predict, including risks related to the success of development programs and the Company's ability
to execute its strategic plan. Further, certain forward-looking statements are based on assumptions as to future events that may not prove
to be accurate. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in
these forward-looking statements, as well as risks relating to the business of Turn Therapeutics in general, see the risk disclosures
in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the year ended December 31, 2025,
filed with the SEC on March 31, 2026. All such forward-looking statements speak only as of the date they are made, and Turn undertakes
no obligation to update or revise these statements, whether as a result of new information, future events, or otherwise.
Investor Relations/ Media Contact:

Frequently Asked Questions

What were Turn Therapeutics' Q1 2026 financial results?

For Q1 2026, Turn Therapeutics reported a net loss of $970,972.

What is the status of GX-03 in the clinical trial?

GX-03 is advancing in a Phase 2 trial for moderate-to-severe atopic dermatitis.

How much capital did Turn Therapeutics secure from Avenue Capital?

Turn Therapeutics secured an initial $7 million from Avenue Capital, with more available.

When are topline results for GX-03 expected?

Topline results for GX-03 are expected in mid-2026.

What are Turn Therapeutics' future plans with GX-03?

Turn Therapeutics aims to advance GX-03 based on upcoming milestones and assessments.

Last updated: May 11, 2026