Turn Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Cash and cash equivalents totaled $10.4 million as of September 30, 2026, compared to $5.1 million as of December 31, 2025.
• General and administrative expenses for the three months ended September 30, 2026, were $1.4 million, a decrease of $0.4 million from $1.8 million in the same period in 2025.
• Research and development expenses for the three months ended September 30, 2026, were $0.6 million, an increase of $0.4 million from $0.2 million in the same period in 2025.
• Net loss for the three months ended September 30, 2026, was $6.2 million ($0.21 per share), compared to $1.9 million ($0.07 per share) in the same period in 2025.
• Net loss for the nine months ended September 30, 2026, was $13.1 million ($0.44 per share), compared to $3.5 million ($0.13 per share) in the same period in 2025.
• Total operating expenses for the three months ended September 30, 2026, were $2.0 million, compared to $1.9 million in the same period in 2025.
• Total other income (expense) for the three months ended September 30, 2026, was a loss of $4.2 million, driven by a $3.3 million loss from the change in fair value of derivative liability instruments and $0.6 million in amortization of deferred offering and financing costs.
• Total liabilities increased to $10.7 million as of September 30, 2026, from $7.5 million as of December 31, 2025.
• Total stockholders' equity increased to $5.7 million as of September 30, 2026, from $4.7 million as of December 31, 2025.

Guidance and Future Outlook:

• The company expects its available cash to fund operations into the third quarter of 2027, with additional capital available from existing facilities.
• Topline results from the Phase 2b atopic dermatitis trial are expected in the first quarter of 2027.
• Enrollment for the Phase 2a hidradenitis suppurativa trial is now expected to begin in the first quarter of 2027, accelerating from the previously announced second-quarter target.
• The company anticipates the first quarter of 2027 to be a very active period with the start of HS enrollment and the ongoing Phase 2b atopic dermatitis trial.

Business Segments and Product Lines:

• GX-03 Atopic Dermatitis: In the completed Stage 1/Phase 2a trial, 59.3% of patients treated with GX-03 achieved clear or almost clear skin after four weeks, compared to 30.4% for the vehicle group. At Week 8, 40.7% of GX-03 patients achieved EASI-100 (no visible eczema) compared to 17.4% for the vehicle group.
• GX-03 Severe Itch Subgroup: Among patients with severe itch, 61.5% of GX-03 patients achieved clear or almost clear skin after four weeks versus 8.3% for the vehicle group. At Week 8, 46.2% of GX-03 patients with severe itch achieved EASI-100 compared to 8.3% for the vehicle group.
• GX-03 Phase 2b: The ongoing trial involves 120–136 patients with severe itch (pp-NRS>7) and has recorded no patient dropouts to date.
• GX-03 Hidradenitis Suppurativa (HS): An approximately 80-patient Phase 2a trial will compare GX-03 with a matched ointment placebo to assess effects on active inflammatory lesions and pain.
• GX-03 Onychomycosis: Animal studies demonstrated GX-03 can penetrate the nail and reduce fungal burden; the company plans to share next steps as other programs advance.
• Scientific Research: August 2026 peer-reviewed research indicated GX-03 reduced IL-36 by about 50% and IL-31 by nearly 68% in animal studies, with average dermatitis severity 66% lower than the control group.

Market and Competitive Landscape:

• Hidradenitis suppurativa affects an estimated 900,000 adults in the U.S.
• Onychomycosis affects an estimated 10% of the general population and up to 50% of adults over 70.
• GX-03 is positioned as a differentiated, non-systemic treatment option for HS by addressing both inflammation and bacterial membrane disruption.
• The company highlights that severe itch may help strengthen confidence in an atopic dermatitis diagnosis compared to other skin conditions.

Risks and Challenges:

• Forward-looking statements are subject to inherent uncertainties, including risks related to the success of development programs and the availability of additional financing.
• Actual results may differ from expectations due to assumptions regarding future events that may not prove accurate.
• Specific risks include the ability to execute the strategic plan and the potential for trial outcomes to vary from observed data.

Management Commentary and Tone:

• CEO Bradley Burnam stated that the full Stage 1 trial results provide an important look at patient responses across a wide range of disease severity and that the company used these learnings to refine the ongoing Phase 2b trial.
• CSO Dr. Robert R. Redfield noted that the results for patients with severe itching are encouraging and that the Phase 2b trial is designed to verify these results in a larger group.
• The tone reflects confidence in the program's tolerability, citing dropout rates below 5% in the Phase 2a trial with no treatment-related discontinuations.

Other Key Points:

• Robert R. Redfield, M.D., former Director of the U.S. Centers for Disease Control and Prevention (2018–2021), was appointed Chief Scientific Officer on September 9, 2026.
• The company presented at the Stifel 2026 Virtual Immunology and Inflammation Forum on September 23, 2026, and a U.S. Bancorp | BTIG webcast on October 28, 2026.
• GX-03 is a proprietary, non-systemic topical formulation based on the core formula of prior FDA-cleared products.
• The company has no revenue reported, consistent with its status as a clinical-stage biotechnology company.