Turn Therapeutics Secures $25M Lifeline for High-Stakes Dermatology Drug

LOS ANGELES, CA – March 24, 2026 – Clinical-stage dermatology company Turn Therapeutics, Inc. (Nasdaq: TTRX) has secured a crucial growth capital loan facility of up to $25 million from Avenue Capital Group, a move that provides a significant financial runway as the company approaches a pivotal clinical trial readout for its lead drug candidate.

The financing agreement includes an initial $7 million tranche, funded at closing, with an additional $18 million available contingent upon the achievement of specific clinical and corporate milestones. This infusion of capital is timed to support the company through its most critical near-term objective: delivering data from its ongoing Phase 2 trial of GX-03 for moderate-to-severe atopic dermatitis, expected by mid-year.

“This financing comes at a critical inflection point for Turn as we approach the mid-year readout of our Phase 2 trial in moderate-to-severe atopic dermatitis,” said Brad Burnam, Chief Executive Officer of Turn Therapeutics. The funds, he noted, will be instrumental in advancing their pipeline and preparing for the next stage of development.

A Bet on a First-in-Class Therapy

The strategic importance of this financing cannot be overstated. The initial $7 million extends Turn's operational capacity through the upcoming data release, a make-or-break moment for many clinical-stage biotech firms. Should the company meet its milestones and access the full $25 million, it projects its financial runway will be extended through the end of 2027, enabling comprehensive preparation for late-stage registrational trials.

At the heart of this high-stakes venture is GX-03, a novel compound described as a first-in-class, non-systemic topical therapy. Turn is pursuing two primary indications for GX-03, both representing vast and underserved patient populations: atopic dermatitis (a form of eczema) and onychomycosis (fungal nail infection).

The company’s approach is rooted in the personal experience of its founder. CEO Brad Burnam, a self-taught formulator, started the company after developing a solution for his own severe, drug-resistant skin infection. This hands-on, problem-solving ethos continues to drive the company, which bootstrapped its way to its first FDA clearances before seeking larger-scale investment.

Tackling Multi-Billion Dollar Markets with Unmet Needs

GX-03's potential lies in its ability to address significant gaps in two of dermatology's largest markets. The global atopic dermatitis market was valued at approximately $17 billion in 2023 and is projected by some analysts to exceed $30 billion by the early 2030s. Despite the recent success of targeted biologics and JAK inhibitors, major unmet needs persist. Many patients with moderate-to-severe disease fail to achieve stable disease control, suffer from persistent and debilitating itch, or are wary of the potential side effects associated with systemic treatments.

As a non-systemic topical, GX-03 could offer a compelling alternative, potentially providing efficacy without the risks of system-wide drug exposure. This is a critical differentiator in a market where long-term safety is a primary concern for patients and physicians managing a chronic condition.

The second target, onychomycosis, represents a market projected to grow to over $6 billion by 2031. Existing treatments, both oral and topical, are hampered by high recurrence rates and growing antifungal resistance. Turn Therapeutics has highlighted encouraging data from independent investigator-sponsored studies of GX-03 in this indication, suggesting a parallel path to commercialization.

“GX-03 has generated encouraging independent investigator-sponsored human data in onychomycosis, where effective treatment options remain limited,” Burnam stated, confirming the company’s intent to “continue advancing the onychomycosis program in parallel with delivering the Phase 2 atopic dermatitis data.”

An Opportunistic Play by a Savvy Investor

The source of the capital, Avenue Capital Group, adds another intriguing layer to the story. Founded in 1995 by Marc Lasry and Sonia Gardner, Avenue is not a traditional biotech venture capital firm. It is a global investment powerhouse managing over $11 billion, specializing in opportunistic credit and special situations, often investing in distressed or undervalued assets with significant upside potential.

Avenue's decision to back Turn Therapeutics signals a belief in the underlying value of its assets and the potential for a substantial return, provided the company can execute on its clinical milestones. This type of milestone-based credit facility allows the investor to manage risk while providing the company with precisely the capital it needs to reach its next value inflection point.

“We are pleased to partner with Turn Therapeutics and support its development of differentiated therapies in dermatology,” said Chad Norman, Senior Portfolio Manager at Avenue Capital Group. “We were impressed by the clinical progress to date and the potential of GX-O3 across multiple indications, and we structured this facility to support the Company’s next phase of growth.”

This investment can be seen as part of a broader trend where specialized, high-growth sectors like dermatology are attracting capital from a more diverse set of financial players who recognize the robust market dynamics and potential for disruption.

Leadership and the Path Forward

With financing secured for the immediate future, the focus shifts to execution. Turn's leadership team combines entrepreneurial drive with deep industry experience. The recent appointment of Martin Dewhurst, a 30-year life sciences veteran from McKinsey & Company with a focus on M&A, to the board of directors, hints at a long-term strategy that may involve strategic partnerships or acquisition. His presence suggests the company is already planning for a future beyond its current clinical trials, building a framework for maximizing shareholder value.

For now, all eyes are on the upcoming mid-year data readout for GX-03 in atopic dermatitis. The results of this Phase 2 trial will serve as the next major catalyst, determining whether Turn Therapeutics can unlock the remaining $18 million in financing and take a significant step toward transforming care for millions of patients with inflammatory skin disease.