Piper Sandler has reaffirmed its Overweight rating and $10.00 price target for IO Biotech (NASDAQ: IOBT) shares. The firm's stance remains positive despite the company's announcement that the Phase 3 IOB-013/KN-D18 study for IO102-IO103 did not meet the interim analysis (IA) objective response rate (ORR).
The analyst noted that the statistical threshold for a positive IA was high, with a p-value of less than or equal to 0.005, and it was anticipated that IO Biotech would seek approval based on the final progression-free survival (PFS) results from the study.
IO Biotech is expected to reach the primary PFS endpoint in the first half of 2025, according to management guidance. As a result, Piper Sandler continues to project a 2026 approval and launch for IO102-IO103 in the first-line melanoma treatment setting. The analyst's outlook remains unchanged in light of the anticipated milestone.
The firm also highlighted that additional updates from the ongoing Phase 2 basket trial of IO102-IO103 in combination with pembrolizumab are forthcoming.
Notable data from the squamous cell carcinoma of the head and neck (SCCHN) cohort is expected to be presented at the European Society for Medical Oncology (ESMO) conference, with non-small cell lung cancer (NSCLC) cohort data anticipated to be disclosed at a fall medical meeting.
Although these updates are not factored into the firm's success models for these settings, positive results could potentially enhance their estimates.
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