Island Pharmaceuticals (ASX:ILA) secured $9 million in strategic funding.
The capital was raised through a placement of approximately 25.7 million new ordinary shares priced at $0.35 each, led by a US-based family office alongside a select group of international institutional investors.
The infusion of capital bolsters the company's existing cash reserves, which stood at $6.87 million at the end of 2025, providing a robust financial runway for its most ambitious projects.
The primary objective of this funding is to accelerate the development of Galidesivir, the company’s lead antiviral candidate.
The funds will fully finance Galidesivir through the FDA’s two-stage Animal Rule development pathway and the subsequent New Drug Application for treating the Marburg virus.
The regulatory route is critical for drugs where human clinical trials are not ethical or feasible.
Beyond Marburg, the capital will be deployed toward pre-clinical and regulatory work targeting Ebola and Sudan virus opportunities within the US Government Strategic National Stockpile.
CEO Dr. David Foster emphasised that this "pivotal" funding follows recent FDA alignment on their development model, creating a "clearly defined, executable route to approval."
Success in this arena offers significant upside; an Animal Rule approval not only unlocks eligibility for lucrative US government procurement contracts but could also grant Island a priority review voucher, a high-value asset recently appraised at roughly US$200 million.
At the time of reporting, Island Pharmaceuticals' share price was $0.43.