Island Pharmaceuticals Ltd (ASX:ILA) is an antiviral therapeutics company targeting infectious diseases. It is currently at clinical-stage and focused on two key antiviral assets – Galidesivir (a broad-spectrum RNA antiviral initially for Marburg) and ISLA-101 (a repurposed small-molecule drug initially for dengue). We like ILA’s approach of focusing on existing drugs that can be repurposed, as considerable time, effort and investment has already been spent, while also increasing the probability of success for approval. Furthermore, both key drugs are targeting large unmet markets (the high-consequence biothreat Marburg and dengue), and each may well qualify for the FDA’s Priority Review Voucher (PRV) on approval (worth US$100-160m each, providing for an immediate cash windfall). Galidesivir has very near-term prospects – clinical trial data is impressive showing a 94% survival rate in Marburg-infected primates versus 0% for the untreated cohort, and several catalysts over the next 12 months, which if positive, could result in FDA clearance by the end of 2026.
