SCHEDULE: Novo Holdings Cuts IO Biotech Stake Below 5%

Novo Holdings A/S has significantly reduced its stake in IO Biotech, Inc., selling over 2.5 million shares and ceasing to be a beneficial owner of more than five percent.

Summary

• Novo Holdings A/S sold an aggregate of 2,512,453 shares of IO Biotech, Inc. Common Stock in open market transactions on January 21, 2026.
• The shares were sold at prices ranging from $0.206 to $0.3903, with a weighted average sales price of $0.2202 per share.
• Following the sale, Novo Holdings A/S beneficially owns 2,469,135 shares of Common Stock, issuable upon the exercise of immediately exercisable warrants.
• This remaining stake represents approximately 3.3% of IO Biotech's outstanding shares, based on 71,948,842 shares outstanding as of November 10, 2025, plus the warrant shares.
• Novo Holdings A/S ceased to be a beneficial owner of more than five percent of IO Biotech's Common Stock on January 21, 2026.

Sentiment

Score: 3

Explanation: The sentiment is negative as a significant institutional investor has reduced its stake below 5%, which can be interpreted as a lack of strong conviction in the company's future prospects.

Negatives

• A significant institutional investor, Novo Holdings A/S, has reduced its stake in IO Biotech, Inc. below the 5% threshold, which could be perceived as a negative signal regarding its long-term conviction in the company.
• The sale of over 2.5 million shares by a major shareholder may exert downward pressure on the stock price.

Stakeholder Impact

• Shareholders of IO Biotech, Inc. may react negatively to the news of a major institutional investor reducing its stake, potentially leading to a decrease in share price.
• The reduction in ownership by Novo Holdings A/S could impact investor sentiment and the perceived stability of the company's shareholder base.

Key Dates

Recommendation

The divestment by a significant institutional investor like Novo Holdings A/S, reducing its stake below 5%, often signals a lack of strong conviction or a strategic exit. This action could be interpreted by the market as a negative indicator for IO Biotech's future performance, potentially leading to downward pressure on the stock price. Investors might consider selling to mitigate potential losses or reallocate capital to opportunities with stronger institutional backing.

Keywords

IO Biotech, Novo Holdings, Beneficial Ownership, Schedule 13D/A, Share Sale, Institutional Investor, Biotechnology, SEC Filing