Island Pharmaceuticals (ASX:ILA) said that its conduct was not strictly in compliance with the Australian Securities Exchange Listing Rule 15.7, adding that it "was unintentional, and is regrettable," according to a Tuesday Australian bourse filing.

The company said that this occurred during the time its shares were in a trading halt and under wall-crossing arrangements.

The company confirmed in response to a Feb. 5 ASX price query letter that feedback from the US Food and Drug Administration (FDA) on the development pathway for its drug candidate Galidesivir was materially price-sensitive.

Island received the feedback from the US FDA on the galidesivir Animal Rule development pathway on Jan. 30. It requested a trading halt on Feb. 2 due to the price-sensitive nature of the feedback and released the feedback in a Feb. 4 filing.

It said it "required time and expert advice to properly digest the feedback" because of the range of technical matters addressed. Before the firm received expert technical advice from its US-based regulatory advisers on the feedback, it considered its understanding of the information in the feedback was insufficiently definite to warrant disclosure.

The company also confirmed that during the course of Jan. 30, the receipt of the feedback was only known to its board and external regulatory advisers, and that no unusual trading activity is apparent on that day. It held initial discussions with its external regulatory advisers on the morning of Jan. 31, 2026, and it requested a trading halt from the ASX prior to market open on Feb. 2.

The company's shares fell past 1% in recent trading on Tuesday.