On behalf of the Directors of Island Pharmaceuticals
Limited (Island), it is my pleasure to invite you to
become a shareholder in the Company.
Island is mid clinical-stage drug repurposing
company, focused on the newsworthy area of
antiviral therapeutics for infectious diseases. Our lead
asset is Isla101, a drug with a well-established safety
profile, being repurposed for the prevention and
treatment of dengue fever and other mosquito (or
vector) borne diseases.
In its former life, Isla101 was the subject of 45 Phase
I and II human clinical trials and has been
administered to thousands of patients in 5 countries
as well as the European Union – work which saw it
verified as safe in humans by multiple regulators.
While unsuccessful in its original planned uses as
either cancer or respiratory therapeutics, pre-clinical
work conducted at Monash University in animal
and human models has demonstrated Isla101 to be
extremely promising as an antiviral drug.
Given the vast body of clinical and pre-clinical data
held and two approved FDA Investigational New
Drug filings, the path to market for Isla101 is expected
to be swifter and development costs much lower
than under a traditional drug development regimen.
Upon completion of this Initial Public Offering, we
intend to take Isla101 into Phase II clinical efficacy
studies, creating new intellectual property, in what is
already a significantly de-risked clinical program.
Dengue fever is the very definition of an unmet
medical need. While some may imagine that it is
just a third world disease, global warming has meant
that mosquitoes carrying it are travelling further,
and at the time of writing, new cases had just been
recorded in Miami, Florida and, as recently as 2019,
in North Queensland. It is endemic in Asia, South
America, Central America and Africa. While 390
million humans are infected each year, it is thought
that around 30-50% people with the disease do not
present with symptoms, enabling the virus to spread
There is no specific pharmaceutical treatment and
the one vaccine which exists is available to a highly
restricted audience. Over 400,000 people affected
by disease every year could be treated if a suitable
The high case numbers, economic and health
impacts and dearth of treatment options has led
the World Health Organisation to declare dengue
fever a priority issue, and the US Food and Drug
Administration (US FDA) has made available
special rewards for developers of certain mosquito
borne disease treatments under its Priority Review
Voucher (PRV) system. Isla101 – when targeted at
dengue fever, Zika virus or chikungunya virus –
may be eligible for a PRV upon approval of a New
Drug Approval by the FDA. The PRV is saleable to
other drug developers and enables them to bring
pharmaceuticals to market six months faster than
under the standard process. This makes PRVs highly
attractive to major pharmaceutical companies.
Potential markets for Isla101 are driven by the range
of the mosquito vector within the area between
the Tropics of Capricorn and Cancer, home to half
of the world’s population. Furthermore, the range
of the mosquito is seasonally expanding past these
tropics, and in Australia now reaches down as far
as Southern Queensland, and in the US the disease
is endemic in Southern states such as Florida – an
expansion driven in part by global climate change.
People affected by the disease are those living in the
area where the mosquito vector is found, travellers
to these areas for work or recreation and the world’s
militaries, hence the interest in Isla101 by the US
Military in the form of a Collaborative Research
and Development Agreement (CRADA). Isla101 will
ultimately be evaluated in both prophylactic mode
(disease prevention) and therapeutic mode (disease
treatment) with an initial focus on the dengue virus.
Island’s business model is to repurpose drugs,
like Isla101, and partner them with biotech or
pharmaceutical companies for commercial gain.
The PRV opportunity for Isla101 presents a further,
highly attractive string in the Company’s commercial
bow. We also have access to a library of a further
4,600 compounds which may be repurposed for
areas of unmet need. Our collaboration with Monash
University underpins our pipeline development
strategy and will also enable us to create additional
shareholder value and to pivot quickly to develop
drugs where urgent emerging viral disease issues
Island is led by a highly capable, experienced
management team, Board of Directors and Scientific
Advisory Board with extensive expertise in drug
repurposing and development, infectious diseases
and executing successful commercial transactions.
Both the Board and management team are excited
about the future opportunities for Island.
This Prospectus is offering shares in the Company at
$0.25 to raise $7.5 million. Within this document is
detailed information about the Offer, our operations,
performance, financial position and key personnel,
as well as the broader sector we operate in. It also
provides detailed information on the risks associated
with an investment in Island, which are set out in
Section 9. I encourage you to read this Prospectus in
detail before making a decision to invest.
Proceeds raised under the Initial Public Offering will
enable the Company to:
(a) To support the Company’s Expenditure Program
including to perform a Phase 2 clinical study
on our lead program, Isla101, and formulation
development for commercial or follow on
(b) Achieve listing on the ASX, to broaden the
shareholder base and provide a market for the
(c) To pay the expenses of the Offer;
(d) To provide working capital; and
(e) Meet the Company’s ongoing administration
and corporate overhead expenses.
Potential investors should be aware that there are
risks associated with the Island Pharmaceutical’s
business and therefore there are risks associated
with an investment in the Company. These risks
include business risks related to the sufficiency of
funding, healthcare insurance and reimbursement,
regulatory requirements around clinical trials
and currency risks. The key risks are identified in
Section 9 of the Prospectus.
I encourage you to read this Prospectus in its entirety
to gain a full understanding of the Company’s
operations before making an investment decision.
On behalf of the Board, I commend this Offer to
you and look forward to welcoming you as a fellow
shareholder of the Company.
Island Pharmaceuticals Limited