Island Pharmaceuticals (ASX: ILA), an anti-viral drug development company, has expedited its acquisition of the galidesivir anti-viral program from BioCryst Pharmaceuticals, a US-based company. Island Pharmaceuticals is focused on discovering, developing, and commercialising novel therapies for infectious diseases. The company aims to combat diseases where there is unmet medical need.
The decision to fast-track the US$550,000 acquisition followed a thorough due diligence process, instilling “considerable confidence” in the asset. This process included a comprehensive dataset review and collaboration with consultants to define a clear pathway for regulatory approvals. The company anticipates finalising the purchase within the next four weeks. A successful new drug application could grant Island access to a priority review voucher under a US Food and Drug Administration (FDA) program, incentivising drug development for neglected and rare paediatric diseases.
Galidesivir, a clinical-stage intravenous anti-viral molecule, exhibits broad-spectrum activity against over 20 RNA viruses, including Ebola, Marburg, MERS, Zika, and Yellow fever. BioCryst has received over US$70 million in US government funding to support ongoing clinical work targeting these diseases, encompassing drug development, trials, and manufacturing. Island aims to complete its maiden animal study utilising galidesivir to treat Marburg disease within the next 12 months.
Under the acquisition terms, Island will pay US$500,000 upfront, plus a US$50,000 option fee granting exclusivity. Further considerations include US$500,000 upon completion of a Phase 2 clinical trial, US$1 million upon approval of a new drug application, and tiered royalties of 5% to 10% of net sales. Island Pharmaceuticals plans to utilise its $4.82 million cash reserves, supplemented by proceeds from a recent $3.6 million share placement, to cover acquisition costs and potential animal trials.
