IO Biotech secures over 400 million dkk in new capital

The Danish biotechnology company IO Biotech is set to bring a new immunotherapy treatment for melanoma to market, thanks to a substantial capital injection from the European Investment Bank (EIB). Leading the company is Mai-Britt Zocca, who, along with a dedicated team, has secured an impressive deal worth over 400 million DKK.

IO Biotech has made significant strides in a sector where progress is slow, and success can be elusive due to a challenging investment environment. The company was listed on the stock exchange in the USA four years ago but has since seen over 90% of its market value erode.

Fortunately, the Danish biotech firm has a promising pipeline with clinical results that are exceptional enough to warrant over 400 million DKK in debt financing from EIB.

Clinical results initiated dialogue with European Investment Bank

IO Biotech's groundbreaking research and market potential have made the company particularly attractive to investors. Recent clinical trial results indicate that their vaccine could treat approximately 100,000 melanoma patients globally.

"I am incredibly proud of this investment. I see it as an endorsement of our scientific approach and the potential of our cancer treatment. It demonstrates that a smaller company can succeed with the right team, a solid track record, and a trustworthy relationship with investors," says Mai-Britt Zocca, CEO of IO Biotech.

The company's CFO, Amy Sullivan, underscores the innovative treatment as a key factor in the significant capital raise:

"Our science is highly convincing, and we have a unique treatment method. It was clear from the start that the investment bank was very focused on the innovative aspect and the enormous potential in transforming traditional cancer treatment."

Support from EIB enables the company to continue the development and commercialization of their vaccine. It is expected that the funds will extend their cash runway until the second quarter of 2026.

Raising capital is not without challenges

IO Biotech reports that their financing process took longer than expected and required patience and perseverance.

“Timing is everything when it comes to financing. Therefore, the timeline is also the most challenging aspect of such a process," says Mai-Britt Zocca, CEO of IO Biotech.

CFO Amy Sullivan adds: "The timeline spanned 8-9 months, but working with the EIB team was a truly positive experience. They were incredibly sharp and had a great collaboration spirit. Though the process was long, it was both fruitful and enjoyable."

 When it comes to due diligence, EIB follows a standardized process. The first step is crucial and challenging, as the bank selects only around 10% from an initial pool of 100 companies.

To other biotech companies aiming for significant investments, IO Biotech recommends viewing EIB as a partner.

"I hope our story can inspire others in the biotech industry to reach out and initiate dialogue, seeing European Investment Bank investment banks as partners. Even if there isn't a program that precisely matches the company's technology, a direct conversation can open opportunities. What may seem like a long, hard struggle can end well—as long as the science and data are promising enough."

 With the new financing, IO Biotech plans to continue developing the potential of immunotherapy and achieve its goals for the coming years, including new treatments for early-stage cancer.

The future looks bright for IO Biotech, and their ambitions to create effective cancer treatments are well-supported with the new capital.