IO Biotech stock price target lowered to $4 at Morgan Stanley

Published 11/08/2025, 22:16
IO Biotech stock price target lowered to $4 at Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has lowered its price target on IO Biotech (NASDAQ:IOBT) to $4.00 from $6.00 while maintaining an Overweight rating on the stock. Currently trading at $1.05, the stock remains well below analyst targets ranging from $6.00 to $14.00, according to InvestingPro data.

The price target reduction follows what Morgan Stanley described as a "narrow miss" on the primary endpoint in IO Biotech’s Phase 3 trial for its Cylembio treatment, raising questions about the path forward for the therapy.

Despite the setback, Morgan Stanley noted strong progression-free survival (PFS) trends in the trial data, suggesting potential value for the treatment as the company plans to meet with the FDA to discuss next steps.

The research firm has reduced its probability of success for Cylembio to 40% from 50% previously, reflecting the increased risk following the Phase 3 results.

IO Biotech still intends to file for regulatory approval by the end of 2025, with Morgan Stanley maintaining its Overweight rating pending FDA feedback on the company’s development plans.

In other recent news, IO Biotech announced the results of its pivotal Phase 3 trial for Cylembio, an investigational cancer vaccine, in combination with pembrolizumab for advanced melanoma treatment. The trial showed that the combination therapy achieved a median progression-free survival of 19.4 months compared to 11.0 months for pembrolizumab alone, although it narrowly missed statistical significance. This development involved 407 patients with unresectable or metastatic melanoma. Additionally, IO Biotech recently held its 2025 Annual Meeting of Stockholders, where David Smith was elected to the board as a Class I director.

The company also disclosed that it has regained compliance with Nasdaq’s minimum bid price requirement, resolving a previous compliance issue. IO Biotech confirmed that its stock maintained a closing bid price of $1.00 or higher for at least ten consecutive business days. This compliance achievement comes after a period when the stock price fell below the required threshold. These developments are part of IO Biotech’s ongoing efforts to advance its pharmaceutical initiatives and maintain its market position.

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