Australian antiviral drug development company Island Pharmaceuticals (ASX:ILA) has successfully raised a total of $6.22 million through two separate funding initiatives to advance its dengue fever treatment program and expand its antiviral pipeline. The company raised $2.72 million via the exercise of 45,349,978 listed options and secured an additional $3.5 million through a two-tranche placement to existing and new investors.
PROTECT Clinical Trial Advancement
The funding will primarily support ongoing clinical development activities for ISLA-101, Island's lead asset for preventing and treating dengue fever. Subject dosing for the Phase 2b therapeutic arm of the company's Phase 2a/b PROTECT clinical trial was completed in February, with a clinical update expected in April 2025.
CEO and managing director David Foster emphasized the significance of the funding for the company's clinical development pathway. "We are pleased to confirm this additional funding in connection with our March 2024 Rights Issue - a result of strong demand for exercisable Options by eligible shareholders who participated in the Rights Issue, and a vote of confidence for our clinical development pathway to deliver improved health outcomes for dengue fever, which is becoming a fast-growing global threat," Foster said.
Strategic Pipeline Expansion
The $3.5 million placement, priced at $0.07 per share, will enable Island to complete both cohorts of its ISLA-101 PROTECT study and conduct due diligence on the galidesivir program. If the due diligence process is successful, the company plans to acquire and advance the galidesivir antiviral program, representing a significant expansion of its therapeutic pipeline.
The placement includes one new option attached with every new share issued, with 50 percent expiring within 12 months and 50 percent expiring within 24 months, subject to shareholder approval.
Investor Confidence and Support
The recent placement attracted notable investor support, including Dr Daniel Tillett and prominent Hong Kong-based fund manager Angus Walker, along with Island co-founder Dr Bill Garner, shareholder Jason Carroll, and recently appointed non-executive director Chris Ntoumenopolous.
Dr Daniel Tillett, commenting on his participation, highlighted the company's clinical progress and pipeline potential. "Island's impressive clinical progress with ISLA-101, along with the recent pipeline expansion into new antivirals, has created a compelling investment opportunity. The ability to leverage historical clinical data to advance overlooked antivirals in areas of great unmet need, combined with the potential value of acquiring two priority review vouchers upon approval, is highly attractive," Tillett said.
Financial Position and Future Outlook
Foster noted that the combined funding positions the company strongly for its current development programs. "This fundraising is an outstanding outcome for Island and places the company in a very strong position to complete the current Phase 2a/b study for ISLA101. It also supports the due diligence campaign for the Galidesivir antiviral therapeutic program and provides the acquisition funding required, should we proceed with the potential acquisition," he said.
The funding takes the company through several important inflection points, including all data readouts on the current ISLA-101 Phase 2a/b clinical trial, providing financial stability for the company's near-term clinical development activities.
