Morning Market Brief- Biotech Breakouts, Spider Silk Goes Live & Cannabis Gets Political Tailwinds
DENVER, Colo., Aug 11, 2025 (247marketnews.com)- IO Biotech (NASDAQ:IOBT) headlines the biotech sector this morning after announcing topline results from its pivotal Phase 3 trial evaluating Cylembio (imsapepimut and etimupepimut, adjuvanted) in combination with KEYTRUDA (pembrolizumab) for first-line treatment of unresectable or metastatic melanoma.
The combo demonstrated a clinically meaningful improvement in progression-free survival (PFS), with median PFS of 19.4 months vs. 11.0 months for pembrolizumab alone, though the trial narrowly missed the statistical significance threshold (HR=0.77; p=0.056 vs. a threshold of p ≤ 0.045). Subgroup data were compelling, especially in PD-L1 negative patients where median PFS surged to 16.6 months versus 3.0 months in the control arm. IO Biotech plans to meet with the FDA this fall regarding next steps for regulatory submission.
“Patients treated with Cylembio in combination with pembrolizumab have achieved the longest median PFS ever observed in a Phase 3 clinical study in advanced melanoma,” said Dr. Omid Hamid of The Angeles Clinic.
Kraig Biocraft Laboratories (OTCQB:KBLB) is launching full operations at its newest spider silk production facility in Southeast Asia. The site was secured via agreement with a local government agency and is now running its first full production cycle, significantly boosting capacity.
The facility marks a major step in scaling KBLB’s recombinant spider silk platform—technology with potential applications in military textiles, medical sutures, and performance apparel. The company is positioning this expansion as key to fulfilling upcoming product deliveries to commercial partners.
“This facility represents a critical step forward in our production capabilities. Our collaboration with government agencies in the region has created a robust platform for sustainable growth, allowing us to expand our operational footprint while maintaining close control over the quality and consistency of our spider silk,” said Founder and CEO of Kraig Labs, Kim Thompson.
Cannabis Sector Watch
A notable shift in sentiment is lifting U.S. and Canadian cannabis stocks after comments from Donald Trump suggested a more tolerant federal posture toward cannabis legalization.
Beneficiaries in today’s trade include:
- Tilray Brands, Inc. (NASDAQ:TLRY)
- Canopy Growth Corporation (NASDAQ:CGC)
- Aurora Cannabis Inc. (NASDAQ:ACB)
The sector, long weighed down by regulatory headwinds, is seeing renewed interest amid speculation that descheduling or rescheduling could become a 2025–26 campaign talking point.
Other stocks on radar today:
- Telos (NASDAQ:TLS), Village Farms International (NASDAQ:VFF), and Bluejay Diagnostics (NASDAQ:BJDX) are all trading with elevated volume ahead of earnings or news catalysts.
- Equillium (NASDAQ:EQ) and Entero Therapeutics (NASDAQ:ENTO) are climbing as small-cap biotech interest returns amid increased M&A activity in the sector.
- Gamehaus (NASDAQ:GMHS), a new SPAC play in the digital entertainment space, is gaining attention following its announced intent to merge with a European esports operator.
- Auddia (NASDAQ:AUUD) popped premarket after social sentiment around its AI-powered radio platform surged on retail forums.
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