Which biotech’s shares are surging higher on US patent news?

Shares in Island Pharmaceuticals Ltd (ASX: ILA) are marching higher after the company said it had secured patent protection in the US for the use of one of its compounds in tackling viruses.

Island shares traded as high as 49.5 cents in the morning session on the ASX before settling back to be 12.2% higher at 46 cents.

The biotechnology company said it had been granted a patent for the use of its compound Galidesivir in the treatment of filoviridae viruses.

The company went on to say:

The patent comprises a broad range of claims in connection with the treatment of a viral infections from the filoviridae family, via the administering of a therapeutically effective amount of Galidesivir. Patent protection for the use of Galidesivir to treat filoviridae viruses marks the latest successful conversion from application to approval for the diversified patent portfolio that Island gained full rights to as part of its acquisition of the Galidesivir program. The patent portfolio comprised both issued patents and pending patent applications, with each new approval strengthening the framework for Island to continue broadening its IP footprint alongside the clinical development pathway for Galidesivir.

Broad patent protection

The patent protection extends out to late 2031. The viruses the compound targets are single-stranded ribonucleic acid viruses, the best-known of which are the Ebola virus and the Marburg virus.

The company explained further:

Filoviridae viruses are generally recognised by the US government as biological select agents or toxins (BSAT), which have been classified by the US Department of Health and Human Services as having the potential to pose a severe threat to public health and safety.

The new patent win adds to the granting of a patent last month covering the use of Galidesivir in treatment options for COVID-19.

Island Pharmaceuticals Managing Director Dr David Foster said it was another important milestone for the company.

He added:

This latest patent grant highlights that our IP footprint continues to go from strength to strength, and further validates the vigour of the patent portfolio that we gained full ownership rights of as part of the Galidesivir acquisition.” “What is particularly pleasing about this patent is that it provides IP protection over a broad range of claims in the application of Galidesivir to treat filoviruses, in direct alignment with detailed clinical development pathway for the treatment of Marburg – a member of the filoviridae virus family.” “As we continue to advance the study design in close consultation with the FDA, this patent approval provides a strong framework to further expand our IP footprint alongside our clinical progress.

Island Pharmaceuticals was valued at $110.1 million at the close of trade on Tuesday.

The post Which biotech’s shares are surging higher on US patent news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.