IO Biotech (IOBT) AI Stock Analysis

• Market Cap: $98.82M
• Dividend Yield: N/A
• Average Volume (3M): 170.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: 32.77%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 65,880,910
• 10 Day Avg. Volume: 265,953
• 30 Day Avg. Volume: 170,611
• PEG Ratio: -0.18
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.10
• Enterprise Value/Market Cap: -0.74
• Enterprise Value/Revenue: -33.12
• Enterprise Value/Gross Profit: 343.57
• Enterprise Value/Ebitda: 0.20
• 1Y Price Target: $12.00
• Price Target Upside: 700.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 43 Neutral
• Price Target: ―

IO Biotech faces significant challenges due to its financial instability and lack of revenue. However, the progress in clinical trials and secured financing improve its future prospects, though it remains speculative. The technical analysis suggests neutral momentum, and the valuation highlights typical risks associated with biotech stocks awaiting commercialization.

Positive Factors

Clinical trial progress

The Phase 3 trial is designed to evaluate Cylembio + pembro vs pembro in 407 patients with a primary endpoint of PFS, and the trial is powered at 89% to detect a 35% reduction in the risk of an event, which could indicate a positive signal of a longer PFS with Cylembio.

Financial outlook

The company ended 2024 with $60 million in cash and equivalents, which is projected to be sufficient to fund operations into 2026.

Market positioning

Cylembio's approval would position it as a first-in-class therapeutic cancer vaccine for patients with advanced melanoma.

Negative Factors

Financial risk

The company faces risks such as safety signals in clinical programs, lower-than-expected efficacy, and greater-than-expected commercial competition.

Market risk

There is a risk of delisting if the company's shares go under $1.

Operational costs

The company's operating expenses are expected to increase significantly in 2025 due to launch readiness for Cylembio and continuation of the Phase 3 study.

IO Biotech Business Overview & Revenue Model

Company Description

IO Biotech (IOBT) is a biotechnology company focused on the development of immune-modulating cancer therapies. The company leverages its proprietary T-win technology platform to create novel immune therapies intended to treat various types of cancer by activating the immune system against tumor cells. IO Biotech operates within the pharmaceutical and biotechnology sector, working towards innovative solutions to improve cancer treatment outcomes.

How the Company Makes Money

IO Biotech makes money primarily through the development and commercialization of its immune-modulating cancer therapies. The company's revenue streams include potential product sales, licensing agreements, and collaborations with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on future sales. Additionally, IO Biotech may receive funding from grants and research collaborations with academic institutions and healthcare organizations, which contribute to its earnings and support ongoing research and development activities.

IO Biotech Financial Statement Overview

Summary

IO Biotech demonstrates financial instability typical for early-stage biotech firms, with no revenue and increasing losses. The reliance on financing activities to sustain operations without future revenue poses a significant risk.

Income Statement

IO Biotech shows consistently negative EBIT and net income, with no revenue generated over the years, indicating no commercialized products. The company has seen an increase in losses, impacting profitability significantly.

Balance Sheet

The company has a reasonable level of cash and low debt, but a declining stockholders' equity and persistent losses indicate a potential risk in long-term sustainability. The equity ratio shows a decrease in equity cushion.

Cash Flow

Negative free cash flow and operating cash flow indicate operational struggles, with significant cash burn over the year. There is a lack of cash inflow from operations, relying on external financing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-214.00K	0.00	-756.00K	-540.00K	0.00	0.00
	EBIT
-97.56M	-95.18M	-91.44M	-71.42M	-41.23M	-10.14M
	EBITDA
-96.93M	-93.20M	-91.23M	-69.34M	-67.45M	0.00
	Net Income Common Stockholders
-98.45M	-95.49M	-86.08M	-71.46M	-67.88M	-12.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.09M	60.03M	143.19M	142.59M	211.53M	3.40M
	Total Assets
45.74M	67.70M	150.72M	151.81M	222.29M	5.65M
	Total Debt
1.76M	1.92M	2.49M	2.79M	0.00	0.00
	Net Debt
-35.32M	-58.12M	-140.70M	-139.80M	-211.53M	-3.40M
	Total Liabilities
19.31M	20.68M	17.56M	12.95M	10.36M	40.96M
	Stockholders Equity
26.42M	47.02M	133.16M	138.85M	211.92M	-35.30M
Cash Flow		Free Cash Flow
-80.55M	-82.39M	-72.06M	-60.42M	-40.80M	-9.96M
	Operating Cash Flow
-80.49M	-82.35M	-71.74M	-59.73M	-40.65M	-9.96M
	Investing Cash Flow
-61.00K	-44.00K	-323.00K	-690.00K	-153.00K	0.00
	Financing Cash Flow
0.00	0.00	71.86M	0.00	252.95M	5.10M

IO Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOBT, the sentiment is Positive. The current price of 1.5 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.10, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IOBT.

IO Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
KRON	51 Neutral	$53.18M	―	-59.49%	―	21.15%	46.44%
AVTX	48 Neutral	$52.19M	―	678.24%	―	-69.59%	―
IOBT	43 Neutral	$98.82M	―	-138.78%	―	―	32.77%
ADAP	41 Neutral	$70.19M	―	-273.36%	―	883.05%	62.93%
CABA	39 Underperform	$88.80M	―	-73.85%	―	―	-40.59%
BMEA	35 Underperform	$95.06M	―	-156.81%	―	―	-10.99%

IO Biotech Corporate Events

IO Biotech Advances Phase 3 Trial and Secures Financing

On March 4, 2025, IO Biotech announced significant progress in its clinical trials and financial position. The company completed enrollment for its Phase 3 trial of Cylembio, an investigational cancer vaccine, and plans to submit a Biologics License Application to the FDA by the end of 2025. Additionally, IO Biotech secured up to €57.5 million in debt financing from the European Investment Bank, which is expected to extend its cash runway into the second quarter of 2026. These developments position IO Biotech for potential commercialization of its therapeutic cancer vaccine in 2026, pending FDA approval.