Health: Great day for Paradigm as knee data drops and $78m cap raise opens
Health & Biotech
Health & Biotech
It’s all happening in the offices of biotech Paradigm Biopharmaceuticals (ASX:PAR), which has today released the latest round of its Phase IIb knee pain data, alongside the opening of a $78 million capital raise.
The company, which is testing injectable pentosan polysulfate sodium (iPPS) in patients with knee pain from osteoarthritis and subchondral bone marrow edema lesions, soared to all-time highs in December last year when it announced the Phase IIb study had met its primary endpoints.
Today Paradigm informed investors that the primary secondary endpoint of the study — improved physical function in daily activities after 165 days compared with placebo — had also been met.
And there is more news to come – its shares are in a trading halt pending an announcement on the “outcome of the institutional component of the accelerated entitlement offer”, as well as another private placement.
Other secondary endpoints, including pain reduction and regression of bone marrow lesions, had CEO Paul Rennie saying Paradigm was on track to become one of the 10 per cent of companies that make it from Phase I to market.
“To have a large and rich data set of both subjective pain and function scores along with the objective MRI data showing the potential OA disease remission effect of iPPS is indeed powerful and very valuable in the eyes of partnering pharmaceutical companies,” he said.
“Osteoarthritis is the major cause of disability and impaired quality of life of people in the over 50 years of age. Paradigm’s clinical trial has confirmed iPPS reduces pain, improves both joint function and structure in subjects with OA.”
And in order to fund those crucial Phase III studies, the company has launched a mega capital raise of $77.9 million, made up of a $51.5m placement to sophisticated and professional investors and a $26.3m entitlement offer giving underwritten by Bell Potter giving current shareholders a chance to buy one additional share for every eight they own.
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