Ottawa-born biotech startup Turnstone Biologics is halting all clinical studies, ceasing further development of its cutting-edge cancer-fighting viral treatments and exploring “strategic alternatives focused on maximizing shareholder value” that may include selling its assets, the company announced this week. Turnstone CEO Sammy Farah blamed rising manufacturing costs for the decision to shut down its remaining […]
Ottawa-born biotech startup Turnstone Biologics is halting all clinical studies, ceasing further development of its cutting-edge cancer-fighting viral treatments and exploring “strategic alternatives focused on maximizing shareholder value” that may include selling its assets, the company announced this week.
Turnstone CEO Sammy Farah blamed rising manufacturing costs for the decision to shut down its remaining tumour-infiltrating lymphocyte (TIL) therapy program that targeted colorectal cancer, head and neck cancer and uveal melanoma.
“Manufacturing for our selected TIL therapy requires continued investment in process improvements,” Farah said in a statement Tuesday. “Due to these capital-intensive requirements and after careful review of future funding needs and the current financial markets, the company has decided to discontinue development of TIDAL-01 and to conclude all clinical studies evaluating the program in solid tumours.”
Turnstone, which is now headquartered in San Diego but still maintains an office in the ByWard Market, said it is “reducing its workforce while also implementing further cost-containment and cash conservation measures.”
The company said it will “retain all employees essential for supporting value-realization as part of its strategic review.”
The move comes just four months after Turnstone laid off 60 per cent of its workforce and shook up its C-suite in a bid to extend its cash runway into the second quarter of 2026.
Founded by three Ontario medical researchers, including Dr. John Bell of The Ottawa Hospital, Turnstone went public on the Nasdaq exchange via a US$80-million IPO in 2023. The company raised more than $170 million in venture capital before going public and was an early trailblazer in Ottawa’s burgeoning biotech sector.
The company posted a net loss of US$17 million in the quarter ending Sept. 30, 2024 and had US$45.3 million in cash on hand. 
