IO Biotech Reports $48.6 Million Net Loss and Increased Operating Expenses for First Half of 2025

IO Biotech, Inc. reported a net loss of $48.6 million for the six months ended June 30, 2025, compared to a net loss of $40.1 million for the same period in 2024, reflecting a 21.2% increase in losses. The company's total operating expenses rose to $45.8 million, up from $41.7 million year-over-year, driven primarily by increased research and development costs, which amounted to $33.0 million, a 9.5% increase from $30.2 million in the prior year. General and administrative expenses also saw a rise, totaling $12.7 million, up 10% from $11.6 million in the previous year.

In terms of financial position, IO Biotech's cash and cash equivalents decreased to $28.1 million as of June 30, 2025, down from $60.0 million at the end of 2024. The company has also incurred significant liabilities, with total liabilities reaching $40.7 million, compared to $20.7 million at the end of the previous fiscal year. This increase is attributed to the issuance of term loan debt of $6.7 million and common stock warrants valued at $13.2 million, both related to the European Investment Bank (EIB) loan facility.

Strategically, IO Biotech has made significant advancements in its clinical development pipeline, particularly with its lead product candidate, Cylembio® (IO102-IO103). The company is currently conducting a Phase 3 trial for Cylembio in combination with pembrolizumab for the treatment of advanced melanoma, which has shown promising results in terms of progression-free survival (PFS). The trial enrolled 407 patients and demonstrated a median PFS of 19.4 months for those receiving the combination therapy compared to 11.0 months for those receiving pembrolizumab alone. The company plans to meet with the FDA to discuss the data and potential next steps for regulatory submission.

Operationally, IO Biotech has expanded its workforce to support ongoing clinical trials, with personnel costs increasing significantly. The company is also actively pursuing additional funding sources to support its operations, including a recent private placement that raised approximately $71.9 million. However, management has expressed concerns regarding the sufficiency of current cash reserves to fund operations beyond the first quarter of 2026, indicating a need for further capital to sustain its research and development activities.

Looking ahead, IO Biotech anticipates continued operating losses as it invests in the development of its product candidates. The company is focused on advancing its clinical trials and obtaining regulatory approvals, but it acknowledges the inherent uncertainties and risks associated with drug development. The management's outlook emphasizes the necessity of securing additional funding to support its long-term business strategy and operational needs.