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NEW YORK - IO Biotech (NASDAQ:IOBT) presented new preclinical data for two therapeutic cancer vaccine candidates at the Society for Immunotherapy of Cancer's 40th Annual Meeting in Maryland. The clinical-stage biotech, currently valued at approximately $55.5 million, has seen its stock price fluctuate significantly this year, trading at $0.84 - well below its 52-week high of $2.79.
The clinical-stage biopharmaceutical company showcased results for IO112, which targets arginase 1, and IO170, which targets Transforming Growth Factor (TGF)-β. Both candidates are derived from the company's proprietary T-win platform. According to InvestingPro data, IO Biotech holds more cash than debt on its balance sheet, though analysts note the company is quickly burning through cash - a common challenge for early-stage biotech firms developing novel therapeutics.
According to the data presented, IO112 demonstrated anti-tumor activity by modulating immunosuppressive myeloid cells, including tumor-associated macrophages, in the tumor microenvironment. The vaccine led to expansion of arginase 1-specific T cells that target and reprogram these cells, resulting in tumor growth inhibition.
For IO170, preclinical data showed the vaccine induced immune responses that inhibited tumor growth and reduced lung metastasis in a cancer model. The company noted that TGF-β signaling plays a role in various tumors, and their approach activates TGF-β-specific T cells through peptide vaccination.
"We look forward to advancing our cancer immunotherapy pipeline and expect to file an Investigational New Drug Application for IO112, our next candidate expected to enter clinical development, in 2026," said Mai-Britt Zocca, President and CEO of IO Biotech, in the press release.
Ayako Wakatsuki Pedersen, Senior Vice President of Translational Research, stated that the data for both candidates support further investigation into how these immunomodulatory approaches could treat various cancer indications.
IO Biotech is currently advancing its lead cancer vaccine candidate, Cylembio, in clinical trials while moving additional pipeline candidates through preclinical development.
The company is headquartered in Copenhagen, Denmark with US headquarters in New York. Despite recent volatility, IO Biotech has shown a strong return over the last month, though its overall financial health score remains weak according to InvestingPro metrics. Investors interested in deeper analysis of biotech companies can access over 10 additional ProTips and comprehensive financial data through the platform.
In other recent news, IO Biotech's experimental cancer vaccine, Cylembio, in combination with Merck's pembrolizumab, showed a notable improvement in progression-free survival for advanced melanoma patients. However, the combination narrowly missed statistical significance in its Phase 3 trial, as presented at the European Society for Medical Oncology Congress. Following this, the U.S. Food and Drug Administration recommended against submitting a Biologics License Application for Cylembio based on the trial data. As a result, IO Biotech's stock was downgraded by TD Cowen from Buy to Hold due to this setback. Additionally, H.C. Wainwright downgraded the stock from Buy to Neutral, citing delays in the potential launch timeline for Cylembio, now projected for 2029. The company is also facing financial challenges, leading to a workforce reduction of approximately 50%, with cash reserves expected to last into the first quarter of 2026. These developments highlight significant hurdles for IO Biotech as it navigates the regulatory landscape and financial constraints.
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