Island Pharmaceuticals Ltd (ASX: ILA), an Australian antiviral drug development company focused on areas of unmet need for antiviral therapeutics to address infectious diseases, has announced the acquisition of the Galidesivir antiviral program from BioCryst Pharmaceuticals Inc. The acquisition was formalised through an asset purchase agreement, expediting an earlier option agreement following positive due diligence. The company’s lead asset is ISLA-101, a drug with a well-established safety profile, being repurposed for the prevention and treatment of dengue fever and other mosquito-borne diseases.
Galidesivir is a broad-acting antiviral molecule with a history of development and over US$70 million in R&D funding from the U.S. government. Island Pharmaceuticals intends to prioritise its application for the treatment of Marburg virus. The company aims to potentially leverage the FDA’s Animal Rule for regulatory approval, which could allow for approval based on animal efficacy data, potentially requiring only one additional successful animal study in Marburg before a New Drug Application.
According to Island Pharma, a successful animal study could provide access to a Priority Review Voucher, which have recently been valued between US$100-150 million. The acquisition’s base purchase price was US$550,000, inclusive of an option fee. Further payments include US$500,000 upon completion of Phase 2 clinical trial, US$1 million upon approval of New Drug Application in US or equivalent or US$1.5 million upon Animal Rule approval. Tiered royalties of 5-10% of Net Sales and 25% of proceeds from sale of any Priority Review Voucher awarded due to FDA approval of the acquired program are also included.
Island Pharmaceuticals Chairman, Jason Carroll, stated that the acquisition is transformational for the company. CEO and Managing Director, Dr. David Foster, and Chairman, Mr. Jason Carroll, are scheduled to host an investor webinar today to discuss the strategic rationale for the acquisition. Interested parties can register via the provided link.
