Turn Therapeutics, a clinical-stage dermatology company headquartered in Los Angeles, has secured up to USD 25 million in growth capital financing from Avenue Capital Group to advance its pipeline in atopic dermatitis and onychomycosis. The Nasdaq-listed company (TTRX) structured the facility as a loan arrangement with Avenue Venture Opportunities Fund II, L.P., rather than a traditional equity round, with an initial USD 7 million tranche funded at closing and up to USD 18 million available upon meeting clinical and corporate milestones.
Avenue Capital Group, a global investment firm managing over USD 11 billion in assets and founded by Marc Lasry and Sonia Gardner, served as the sole named financing partner. The company said proceeds from the initial tranche are expected to fund operations through a mid-year Phase 2 data readout in moderate-to-severe atopic dermatitis and to support preparation for registrational trials of its lead candidate, GX-03, in both atopic dermatitis and onychomycosis. Full drawdown of the facility would extend the company's runway through the end of 2027, the company said.
GX-03 is described as a first-in-class, non-systemic topical therapy in development for moderate-to-severe atopic dermatitis, with additional development planned in onychomycosis. The company has noted that GX-03 generated data in investigator-sponsored studies in onychomycosis, though details of those results have not been publicly disclosed. The molecule's mechanism of action and active pharmaceutical ingredients have not been specified in public filings. No clinical trials for Turn Therapeutics or GX-03 were identified in public trial registries at the time of this report, and the Phase 2 atopic dermatitis study referenced by the company may be registered under alternative identifiers or pending disclosure.