Paradigm Biopharmaceuticals (ASX:PAR) has completed a share placement to raise $5.75 million by issuing shares priced at $0.30 to institutional, sophisticated and professional investors.
The raising means Paradigm is well funded into CY2019 and importantly, post the completion of the Phase 2 Ross River virus and Phase 2b Osteoarthritis trials due to be completed at the end of CY2018.
In a vote of confidence, Paradigm’s management team participated in the capital raising with Paul Rennie electing to increase his holding by $100,000, subject to shareholder approval.
Paul Rennie, CEO, commented: “The strong support of institutional and sophisticated investors in this capital raising is a solid endorsement of our company and places Paradigm in a very strong position to accelerate our two Phase 2 clinical trials.
“Importantly, it means our company is well-funded post the completion of our key Phase 2 Ross River virus and osteoarthritis trials due to be completed by the end of CY2018.”
Use of funds
The proceeds from the placement will primarily be used to fund:
- The completion of the randomised, double-blind, placebo-controlled Phase 2b clinical trial in 100 subjects with osteoarthritis (OA) and concurrent bone marrow edema lesions (BMELs);
- Ongoing generation of real-world-evidence data in subjects with OA and concurrent BMELs;
- The expansion of the BMEL market into other joint and pain indications;
- The initiation of a pilot Phase 2 clinical trial in Chikungunya;
- Generation of intellectual property; and
- Working capital requirements.
Paradigm is a biotechnology company focused on repurposing pentosan polysulfate sodium (PPS), an FDA-approved drug that has a long track record of safely treating inflammation.
Paradigm is repurposing PPS for a number of applications with a focus on treatment of orthopaedic and viral arthritic indications.
Drug repurposing has the benefits of being lower cost, minimises risk and accelerated development timelines.
Paradigm’s strategy is to establish commercial partnerships with multiple leading pharmaceutical companies.
OA with BMEL clinical trial
Paradigm recently dosed the first participant in the Phase 2b clinical trial investigating the use of PPS in people with knee OA and concurrent BMEL.
One hundred participants will be recruited across five trial sites in Queensland, South Australia, Victoria, and Western Australia with results anticipated in the March quarter of 2019.