Denmark: IO Biotech secures up to €57.5 million EIB venture debt to advance cancer vaccine research and development

This article is published in association with European Investment Bank.

• Further support for Denmark’s med-tech sector as IO Biotech boost cancer vaccine research with EIB venture debt financing.
• IO Biotech will use the financing for its innovative immunotherapeutic cancer vaccine to treat melanoma.
• The EIB’s financing is backed under the European Commission’s InvestEU initiative.

Danish med-tech company IO Biotech has signed a €57.5 million venture debt deal with the European Investment Bank. The debt facility includes three committed tranches totalling up to €37.5 million, which will become available if the company satisfies certain conditions, and one uncommitted accordion tranche of €20 million. The clinical-stage biopharmaceutical company is developing novel, immune-modulating cancer vaccine therapies based on an innovative proprietary technology platform. The company will mainly use the financing for the development and market launch of IO102-IO103, an immunotherapeutic cancer vaccine to treat melanoma, with a view to employing the vaccine more broadly against other types of cancer. The EIB financing is supported by the European Commission’s InvestEU programme.

The EIB financing will, on the one hand, support the finalisation of the clinical development as well as the regulatory approval and market launch of the lead candidate. On the other hand, the financing will also support the development of new product candidates generated through the Company’s platform. The funding is expected to enable IO Biotech to grow from a pure R&D company into a fully-fledged pharma company with products forming the backbone of combination therapy for people with cancer.

“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.”said EIB Vice-President Ioannis Tsakiris. “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, commented, “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.”

Background information

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 InvestEUFund 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.