H.C. Wainwright Downgrades IO Biotech (IOBT) to Neutral

H.C. Wainwright analyst Emily Bodnar downgraded IO Biotech (NASDAQ: IOBT) from Buy to Neutral.

The analyst comments "Model update; downgrading to Neutral and no PT. We have updated our model to reflect the need for another Phase 3 trial to obtain FDA approval of Cylembio. We are now assuming a launch of Cylembio in 2029, rather than our prior estimate of 2026, as we expect it may take at least three years in order to complete a Phase 3 trial. This is based on the timing it took to complete the Phase 3 IOB-013 / KN-D18 trial. We have also lowered our POS for 1L melanoma to 30% from 50%, and for 1L H&N and 1L NSCLC to 5% from 10%. We have also moved our launch estimates for these other solid tumor types to 2030. Taken together with the lack of meaningful upcoming catalysts now that the FDA recommended running a new Phase 3 trial, we are downgrading our rating to Neutral with no price target. We have also added in a $1.5M payment related to the 50% restructuring into our model for 3Q25, per company guidance. We now assume a significant drop in SG&A in 2026 as the restructuring takes effect. We continue to assume a cash runway into 1Q26 and note that the company would need to raise capital or seek a partner in order to fund a new Phase 3 trial."

For an analyst ratings summary and ratings history on IO Biotech click here. For more ratings news on IO Biotech click here.

Shares of IO Biotech closed at $1.58 yesterday.

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