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NEW YORK - IO Biotech (IOBT), a clinical-stage biopharmaceutical firm with a market capitalization of approximately $61 million, has presented new preclinical data on two therapeutic cancer vaccine candidates at the American Association for Cancer Research Annual Meeting 2025. According to InvestingPro data, while the company maintains a strong balance sheet with more cash than debt, it faces significant cash burn challenges typical of early-stage biotech companies. The data showcased the potential of the company’s T-win® platform in driving anti-tumor immunity by reshaping the tumor microenvironment.
The first vaccine candidate, IO102-IO103, targets cells expressing IDO1 and PD-L1. Preclinical studies in mouse models demonstrated strong T-cell responses and a unique modulation of the tumor microenvironment, distinct from that seen with PD-1 or PD-L1 inhibitors. This suggests a possible synergistic effect when combined with existing checkpoint inhibitors. With the stock trading near $0.91, InvestingPro analysis indicates the company is currently undervalued despite showing a -36% return over the past year.
The second candidate, IO170, focuses on inhibiting Transforming Growth Factor beta (TGF-β), a key immunosuppressive driver within tumors. This vaccine showed significant growth inhibition in breast and prostate cancer models. It also led to an increase in vaccine-specific T cells and CD8+ T-cell density within tumors, indicating a shift towards an immune-activated microenvironment.
Dr. Ayako Wakatsuki Pedersen, Senior Vice President of Translational Research at IO Biotech, expressed confidence in the mechanistic rationale for using the dual-antigen approach of IO102-IO103 and targeting TGF-β with IO170. The findings were detailed in two poster presentations at the AACR meeting.
IO Biotech is developing its lead investigational cancer vaccine candidate, Cylembio® (imsapepimut and etimupepimut, adjuvanted), also known as IO102-IO103, which has received Breakthrough Therapy Designation from the US Food and Drug Administration for advanced melanoma treatment in combination with KEYTRUDA® (pembrolizumab).
The company continues to advance its pipeline through clinical and preclinical development, leveraging its T-win® platform to activate T cells against both tumor cells and immune-suppressive cells in the tumor microenvironment. With a current ratio of 3.33 and analysts setting price targets ranging from $6 to $12, InvestingPro subscribers can access 6 additional key financial insights and detailed analyst forecasts to better evaluate the company’s potential.
The presented posters are available on IO Biotech’s website for further reference. This article is based on a press release statement from IO Biotech.
In other recent news, IO Biotech has been making significant strides in its clinical trials and financial planning. The company reported that its pivotal Phase 3 trial for the cancer vaccine Cylembio, in combination with pembrolizumab, has reached full enrollment with 407 patients. This trial’s primary endpoint is progression-free survival (PFS), with results expected in the third quarter of 2025. H.C. Wainwright and Jefferies analysts have both maintained a Buy rating for IO Biotech, with price targets of $12 and $8, respectively, reflecting confidence in the company’s prospects. IO Biotech is on track to submit a Biologics License Application (BLA) for Cylembio by the end of 2025, contingent on positive trial outcomes.
Additionally, IO Biotech’s financial position has been bolstered by up to €57.5 million in debt financing from the European Investment Bank, expected to extend its cash runway into the second quarter of 2026. The company is also advancing its second cancer vaccine candidate, IO112, designed to target the enzyme arginase 1, with plans to submit an Investigational New Drug Application in 2025. IO Biotech’s progress includes promising data from a Phase 2 basket trial and ongoing development of its T-win platform for cancer immunotherapy. These developments underscore IO Biotech’s commitment to advancing cancer treatment options.
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