IO Biotech (IOBT) Stock Forecast & Price Target

IO Biotech Inc demonstrates a promising outlook due to its effective Cylembio + pembrolizumab combination therapy, which has shown expanded immune responses and a strong efficacy in clinical trials, particularly in challenging patient populations. The projected revenue from potential partnerships and royalties is expected to grow significantly from $6.1 million in 2027 to $88.3 million by 2032, highlighting the financial potential of their innovative cancer treatment. Furthermore, the company's commitment to advancing its Phase 2 trials, despite cost-saving measures, underscores its dedication to bringing breakthrough therapies to market, bolstering confidence in its long-term prospects.

The financial outlook for IO Biotech has deteriorated significantly due to the shift from near-term regulatory reviews to the planning of a new pivotal trial, which has led to a drastic decrease in the company's valuation, now projected at $3 per share down from $10. Additionally, the probability of success (POS) for key product candidates has been sharply reduced, with 1L melanoma dropping from 50% to 30% and 1L H&N and 1L NSCLC decreasing to 5% from 10%. Moreover, the company faces multiple risks, including the need for approximately $400 million in additional financing through 2037 and the looming threat of share de-listing should the stock price fall below $1, combined with the absence of meaningful upcoming catalysts.