IO Biotech Reports $22.4 Million Net Loss in Q1 2025, Increases R&D Spending

IO Biotech, Inc. reported a net loss of $22.4 million for the first quarter of 2025, an increase from a net loss of $19.5 million during the same period in 2024. The company's total operating expenses rose to $22.6 million, up 11.8% from $20.2 million in the prior year, primarily driven by increased research and development costs, which reached $16.4 million, a 14.4% increase from $14.3 million. General and administrative expenses also saw a modest rise, totaling $6.2 million compared to $5.9 million in the previous year. The loss per share for the quarter was $0.34, compared to $0.30 in the first quarter of 2024.

In terms of financial position, IO Biotech's cash and cash equivalents decreased to $37.1 million as of March 31, 2025, down from $60.0 million at the end of 2024. The company’s total assets also fell to $45.7 million from $67.7 million, while total liabilities decreased slightly to $19.3 million from $20.7 million. The accumulated deficit increased to $381.7 million, reflecting ongoing operational losses since the company's inception.

Strategically, IO Biotech has made significant progress in its clinical development pipeline, particularly with its lead product candidate, Cylembio® (IO102-IO103). The company has fully enrolled its Phase 3 trial ahead of schedule, with 407 patients participating, and expects to report primary endpoint results in the third quarter of 2025. Additionally, the company has secured a €57.5 million loan facility from the European Investment Bank, with the first tranche of €10 million drawn down in May 2025. This funding is intended to support ongoing clinical trials and operational needs.

Operationally, IO Biotech continues to focus on expanding its clinical trials and product development. The company is also exploring additional financing options, including potential equity offerings and collaborations, to ensure sufficient capital for its ongoing research and development activities. As of March 31, 2025, the company had 65.9 million shares outstanding and is actively working to address a material weakness in its internal controls over financial reporting, which was identified in the previous fiscal year.

Looking ahead, IO Biotech anticipates continued operating losses as it invests in the development of its product candidates. The company expects that its current cash reserves, along with the anticipated drawdowns from the EIB loan facility, will be sufficient to fund operations into the second quarter of 2026. However, additional funding will be necessary to support future clinical and preclinical activities, and the company acknowledges the inherent uncertainties in achieving regulatory approvals and commercializing its product candidates.