Notably, the two-tranche placement will facilitate the addition of seven new institutional funds to the share register.
Funds raised in the placement will be used to accelerate the timeline to commencement of the phase III trial for its lead drug candidate pentosan polysulfate sodium (PPS) in 2019.
Paradigm’s managing director Paul Rennie said: “We are extremely pleased with the support received from new and existing investors, indicating strong confidence in Paradigm’s clinical program and upcoming catalysts.
“With pain reduction of more than 50% across 125 osteoarthritis patients the data from the TGA special access scheme continues to underpin the potential for our pentosan treatment.
“With two phase II clinical trials reading out before the end of 2018 it is an exciting and pivotal time for the company."
Funding phase III and US presence
Funds will be used to accelerate the timeline to the commencement of Paradigm’s anticipated phase III trial of its osteoarthritis treatment.
Additionally, funds will be used to establish a presence in the US and to fund a compassionate use program involving the US Pro Players Elite Network.
This includes over eleven thousand of the National Football League’s (NFL’s) past players.
Phase IIb read out on track for mid-December
Paradigm remains on track to announce the read out from its phase IIb 110 patient trial in mid-December 2018.