IO Biotech Shares Jump 19% After FDA Approval for Cancer Drug

IO Biotech Inc. (IOBT) surged 19% in after-hours trading after the U.S. Food and Drug Administration approved its cancer treatment drug. The FDA granted breakthrough therapy designation for the medication, which targets specific genetic mutations in solid tumors. The approval could accelerate the drug's commercialization timeline and boost investor confidence in the company's pipeline. Cue Biopharma Inc. (CUE) and Cabaletta Bio Inc. (CBTA) also saw increased trading volumes as investors reassessed biotechnology sector valuations following the announcement. Both companies are developing similar immunotherapy approaches for cancer treatment. The FDA's decision may prompt additional regulatory filings from other biotech firms in the oncology space, potentially driving broader industry momentum. The approval comes as part of a broader trend toward personalized cancer therapies, with analysts expecting continued investment in targeted treatments over the next fiscal year.