Shares in Paradigm Biopharma soared almost 50 per cent in afternoon trade on the back of the company’s PR blitz heralding a breakthrough discovery for the treatment of arthritis.

The shares closed up 40 per cent at 40 cents on Monday.

Paradigm (ASX:PAR) has found that a drug traditionally used to treat urinary tract infections and blood cots — Pentosan Polysulfate Sodium — can alleviate and even eradicate osteoarthritis pain.

A published, peer-reviewed case study of an Australian woman Kaye O’Loughlin has shown the wonder drug significantly reduced her pain and knee swelling, while improving joint function to the point she longer needs a total knee replacement.

In Australia, arthritis affects around three million people or 15 per cent of the population.

Paradigm Biopharma CEO, Paul Rennie, told Stockhead this was just the beginning of its osteoarthritis program with more announcements to be made in the next two months.

“This case study has helped our share price today and we’re very happy to see it rebound as it has,” Rennie says. “In the coming months we’ll be announcing the trial results of 30 more patients and the commencement of our phase 2 clinical trial with 100 Australian patients, which will be a double-bind, placebo controlled clinical trial.”

The lift should also please the company’s shareholders following the failure of Paradigm’s phase 2a hayfever trial, which sent shares diving 55 per cent back in June.

Paradigm didn’t clock any sales for the last quarter, while burning through $1.5 million, leaving $2.6 million in the bank.

The company expected to spend almost $1 million in the current quarter.