IO Biotech Shares Face Mounting Pressure After Regulatory Setback

IO Biotech’s stock continues its downward trajectory, with Monday’s 12 percent plunge signaling further volatility ahead. The company confronts a challenging landscape defined by regulatory hurdles and a significant corporate restructuring initiative.

In response to recent developments, IO Biotech is implementing a workforce reduction that will eliminate half of its positions. This restructuring is projected to cost the company between $1.0 million and $1.5 million, with the stated goal of extending its financial runway only through the first quarter of 2026.

The company’s financial position shows considerable strain. Despite reporting $28.1 million in liquid assets and securing an additional €12.5 million credit facility in July 2025, IO Biotech continues to burn through cash rapidly. Read more...