IO Biotech advances cancer vaccine candidate IO112

NEW YORK - IO Biotech (IOBT), a clinical-stage biopharmaceutical company valued at $58.63 million, has published results from a preclinical study on its second cancer vaccine candidate, IO112, which targets the enzyme arginase 1 (Arg1), known for its role in immune suppression within the tumor microenvironment (TME). According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt, though it’s currently experiencing rapid cash burn as it advances its pipeline. The study, which appeared in the Journal for ImmunoTherapy of Cancer, suggests that IO112 could enhance anti-tumor immunity by reprogramming tumor-associated macrophages (TAMs) and promoting a proinflammatory TME.

The company’s Senior Vice President of Translational Research, Ayako Wakatsuki Pedersen, PhD, expressed excitement about the potential of IO112 to alter the phenotype of TAMs, which are abundant in the TME and contribute to an immunosuppressive environment that hinders cancer immunotherapy.

IO112 is a fully-owned, investigational product candidate by IO Biotech, containing a single Arginase 1-derived peptide intended to activate Arg1-specific human T cells. It is designed to target T cells recognizing epitopes from Arginase 1, an enzyme highly expressed in tumors associated with high levels of myeloid-derived suppressor cells, including in renal cell carcinoma, head and neck, breast, pancreatic, ovarian, colorectal, and prostate cancers.

Previously, IO112 has been evaluated in a Phase 1 trial in patients with arginase-positive solid tumors at the University of Copenhagen. The company plans to submit an Investigational New Drug Application (IND) to the US Food and Drug Administration (FDA) in 2025 to advance IO112 into further clinical development. With analysts setting price targets between $6 and $12, significantly above the current trading price of $0.89, InvestingPro subscribers can access additional insights about the company’s development potential through exclusive financial health scores and detailed metrics.

IO Biotech’s T-win® platform, which underpins its therapeutic cancer vaccine strategy, aims to activate T cells against both tumor cells and immune-suppressive cells in the TME. Their lead candidate, Cylembio™, is currently in clinical trials, and the company has received Breakthrough Therapy Designation from the FDA for advanced melanoma treatment in combination with Merck (NSE:PROR)’s KEYTRUDA® (pembrolizumab).

The findings support the continued clinical development of Arg1-based immune-modulatory vaccines, according to Mai-Britt Zocca, Ph.D., President and CEO of IO Biotech. The company, which InvestingPro analysis indicates is currently trading below its Fair Value, is dedicated to transforming the treatment of cancer patients and is headquartered in Copenhagen, Denmark, with US headquarters in New York, New York. The company maintains a healthy current ratio of 5.37, suggesting strong short-term financial stability despite ongoing R&D investments.

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In other recent news, IO Biotech is preparing for a significant period with the anticipated release of progression-free survival (PFS) data from their Phase 3 trial of IO102-IO103, also known as CylembIO, in advanced melanoma. Analysts at Jefferies maintain a Buy rating for the company, expecting positive results that could lead to a Biologics License Application (BLA) submission in 2025. The company has also secured a €57.5 million loan from the European Investment Bank (EIB) to advance its therapeutic cancer vaccines, extending its financial runway into the second quarter of 2026.

Furthermore, IO Biotech has been notified by Nasdaq of non-compliance with its minimum bid price requirement, giving the company until June 24, 2025, to address the bid price deficiency. In other developments, the company has enacted changes to its corporate governance documents and fiscal calendar, aligning its bylaws with recent amendments to the Delaware General Corporation Law.

Lastly, IO Biotech has announced promising data from a Phase 2 trial of IO102-IO103, showing promising activity in treating patients with metastatic non-small cell lung cancer. The company is also planning to file an Investigational New Drug (IND) application for Arginase 1 in 2025, expanding its clinical pipeline. These are the latest developments for IO Biotech.

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