Idiopathic pulmonary fibrosis (IPF) scars lung tissue, causing breathing to become progressively harder.
It kills more than 5,000 people each year in the UK alone, according to the British Lung Foundation.
Researchers hope a new drug, inspired by an antibody in the blood of sharks, can begin human trials next year.
The drug, AD-114, was developed by researchers at Melbourne's La Trobe University and biotechnology company AdAlta.
