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H.C. Wainwright downgrades IO Biotech after FDA recommends another Phase 3 trial

As previously reported, H.C. Wainwright downgraded IO Biotech (IOBT) to Neutral from Buy with no price target after the company gave an update from its pre-BLA meeting with the FDA and reported that the agency does not recommend that the company submit a BLA for Cylembio. Given the company’s cash position, the company would either need to raise additional capital, partner, or license out Cylembio to advance the new Phase 3 trial, says the analyst, who downgrades the shares based on the shift from a near-term regulatory review to planning a new large pivotal trial.

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