Morgan Stanley downgraded IO Biotech (IOBT) to Equal Weight from Overweight with a price target of 39c, down from $4, after the company announced following a pre-BLA meeting with the FDA that regulators recommended that IO Biotech not submit a BLA based on data from the Phase 3 IOB-013 clinical trial. While the firm continues to believe Cylembio has potential, the FDA requiring another Phase 3 study, combined with limited cash, increases near-term uncertainty, the analyst tells investors.
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