IO Biotech Secures €57.5M EIB Venture Debt to Advance Breakthrough Cancer Vaccine

IO Biotech Secures €57.5M EIB Venture Debt to Advance Breakthrough Cancer Vaccine

(IN BRIEF) IO Biotech, a Danish med-tech company, has obtained €57.5 million in venture debt financing from the European Investment Bank, with backing from the European Commission’s InvestEU programme. The financing, structured in three committed tranches of up to €37.5 million and one additional uncommitted tranche of €20 million, is earmarked for the development and launch of its immunotherapeutic cancer vaccine, IO102-IO103, targeting melanoma with plans for broader cancer applications. This funding will support the company through its final clinical development phases, regulatory approval, and market entry, as well as fuel the development of additional products based on its proprietary T-Win® platform. EIB Vice-President Ioannis Tsakiris highlighted the importance of providing risk-tolerant investment to European innovators, while CFO Amy Sullivan emphasized the critical timing of the support as IO Biotech anticipates pivotal phase 3 study results in Q3 2025.

(PRESS RELEASE) LUXEMBOURG, 27-Mar-2025 — /EuropaWire/ — Danish med-tech innovator IO Biotech has secured a €57.5 million venture debt financing facility from the European Investment Bank (EIB), the lending arm of the European Union, supported by the European Commission’s InvestEU programme. This strategic funding package comprises three committed tranches totaling up to €37.5 million, contingent on meeting specific conditions, along with an additional uncommitted accordion tranche of €20 million. The financing will drive the development and market launch of IO Biotech’s groundbreaking immunotherapeutic cancer vaccine, IO102-IO103, which is currently in clinical stages and designed to treat melanoma, with future applications planned for other cancer types.

The EIB financing is poised to bolster the final phases of clinical development, regulatory approval, and the subsequent commercialization of the lead candidate. Simultaneously, it will fund the creation of new product candidates derived from the company’s innovative T-Win® platform, paving the way for IO Biotech’s transformation from a pure research and development firm into a comprehensive pharmaceutical company. This evolution is expected to establish its products as key components in combination therapies for cancer patients.

EIB Vice-President Ioannis Tsakiris remarked, “Innovative European companies not only need capital but also investors willing to take risks, allowing them to scale up and reach commercialization before non-EU investors step in. IO Biotech’s groundbreaking technology has the potential to significantly impact healthcare, particularly in oncology. Bringing new pharmaceutical products to market requires substantial investment, especially in the final stages of development. With the support of the European Commission’s InvestEU programme, the EIB is bridging this funding gap, ensuring that cutting-edge European technology can grow, thrive, and benefit patients across the EU.”

Amy Sullivan, Chief Financial Officer of IO Biotech, added, “We appreciate the support we have received from the EIB with this transaction. This debt facility will help fund the continued development and pre-commercialization of our therapeutic cancer vaccine candidates generated from our T-Win® platform. This funding comes at a critical time for our company as we approach the results from the phase 3 pivotal study of our lead investigational therapeutic cancer vaccine, IO102-IO103, in the third quarter of 2025.”

The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, contribute to peace and security, and support a just and swift transition to climate neutrality. The Group’s AAA rating allows it to borrow at favourable conditions on the global markets, benefiting its clients within the European Union and beyond. The Group has the highest ESG standards and a tier one capital ratio of 32%.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

IO Biotech is a clinical-stage biopharmaceutical company developing novel, immune-modulating therapeutic cancer vaccines based on its T-win® platform. The T-win platform is based on a novel approach to cancer vaccines designed to activate T cells to target the immunosuppressive cells in the tumor microenvironment. IO Biotech is advancing its lead cancer vaccine candidate, IO102-IO103, in clinical trials, and additional pipeline candidates through preclinical development. IO Biotech is headquartered in Copenhagen, Denmark and has US headquarters in New York, New York.High-quality, up-to-date photos of our headquarters for media use are available here.

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SOURCE: European Investment Bank