Island Secures $3.6m Placement at 15c to Fund Larger Dengue Fever Trial

Strategic Capital Raise Ahead of Key Trial Data

Island Pharmaceuticals Limited (ASX: ILA), an Australian biotech focused on antiviral therapeutics, has successfully secured $3.6 million through a private placement of 24 million new shares priced at 15 cents each. This capital injection arrives at a critical juncture, just before the company anticipates releasing high-level results from its Phase 2a/b PROTECT trial evaluating ISLA-101 for dengue fever treatment.

The placement drew considerable demand from a mix of existing shareholders and new strategic investors, signaling confidence in Island’s clinical and growth prospects. Notably, company directors have committed to participate in the raise, subject to shareholder approval, underscoring internal alignment with the company’s forward strategy.

Funding Optionality for Clinical and Portfolio Growth

Proceeds from the placement will provide Island with financial flexibility to pursue a larger Phase 2 clinical trial for ISLA-101 in international markets where dengue is endemic. This expanded trial is contingent on the forthcoming PROTECT trial data, which will clarify the drug’s efficacy and inform regulatory pathways.

Beyond ISLA-101, the company plans to deploy funds towards expanding its asset portfolio, including advancing clinical trials for new antiviral molecules such as Galidesivir, a broad-spectrum antiviral currently under due diligence review. This dual focus on deepening clinical development and broadening the pipeline reflects Island’s ambition to strengthen its position in the antiviral therapeutics space.

Market Positioning and Next Steps

Island’s CEO, David Foster, highlighted the strong investor interest and the strategic timing of the raise, emphasizing the importance of capital readiness ahead of pivotal trial outcomes. The placement was managed by Perth-based ORA Capital, which will receive a 6% fee on funds raised.

The new shares will be issued under the company’s existing ASX listing rules and are expected to commence trading by late May 2025. Shareholder approval will be sought shortly for director participation, a move that could further bolster market confidence.

With the clinical data release imminent, investors will be closely watching how ISLA-101 performs in the PROTECT trial, as positive results could unlock accelerated development pathways, including potential FDA Priority Review Voucher eligibility, enhancing the drug’s commercial prospects.