IO Biotech shares rise 21.72% premarket after announcing exploration of strategic alternatives, including potential mergers and asset sales.

IO Biotech surged 21.72% in premarket trading following the announcement that it is exploring strategic alternatives, including potential mergers and asset sales, to maximize shareholder value. The company, which has been reevaluating its options amid a narrowing cash runway, indicated a proactive approach to restructuring its operations. While the FDA’s prior rejection of its lead melanoma vaccine filing remains a challenge, the latest move signals efforts to unlock value through strategic transactions, which investors may perceive as a path to near-term liquidity or acquisition opportunities. The sharp premarket gain suggests market optimism about potential outcomes from the strategic review process.