Turnstone Biologics Corp. (TSBX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on February 4. Analyst Daina Graybosch from Leerink Partners reiterated a Hold rating on the stock and has a $1.00 price target.
Daina Graybosch’s rating is based on the discontinuation of Turnstone Biologics Corp.’s lead clinical program, TIDAL-01, which was an ex vivo expanded and selected tumor infiltrating lymphocyte (TIL) cell therapy. The results from TIDAL-01 were not promising, with a limited patient sample size that hindered any meaningful insights into the therapy’s effectiveness. This decision to halt the program reflects broader challenges within the TIL space, where several other companies have also struggled, leading to investor skepticism over the high cash requirements and complexities involved in developing and delivering these cellular therapies.
Despite the setbacks with TIDAL-01, there is a potential future for Turnstone’s pre-clinical program, TIDAL-02, which aims to use a biomarker approach for TIL selection and minimize reliance on IL-2 co-infusion, tackling toxicity issues. However, with the strategic alternatives being explored, including acquisitions or mergers, and the reduction of the price target from $3 to $1, the current outlook remains cautious, justifying the Hold rating. This rating suggests that while there is potential, investors should remain patient and monitor developments closely.
According to TipRanks, Graybosch is an analyst with an average return of -15.5% and a 30.86% success rate. Graybosch covers the Healthcare sector, focusing on stocks such as Merck & Company, BioNTech SE, and Affimed.
In another report released yesterday, Piper Sandler also downgraded the stock to a Hold with a $0.40 price target.