Paradigm Biopharmaceuticals Ltd (ASX:PAR) has raised A$66 million, having raised A$45.7 million in a recent placement and another A$20.3 million following the successful completion of an entitlement offer.
Through the entitlement offer, PAR issued approximately 15.6 million shares at a price of A$1.30 per share. Eligible shareholders took up approximately 3.58 million new shares, representing a total take-up rate of about 23%.
The offer, which opened on August 15, closed on September 7.
The fully underwritten placement and offer are set to give PAR a proforma cash position of A$108.5 million to fund it into 2024.
Business and product development
As Proactive reported when the raise was first announced, the funds will be used for:
- Paradigm’s Phase 3 clinical program and new drug application (NDA) related activities;
- business development-related activities;
- product development-related activities (auto injector, for example); and
- working capital.
Read: Paradigm Biopharmaceuticals to raise $66 million to fund it through to CY24
The late-stage drug development company is aiming to develop and commercialise Pentosan Polysulfate Sodium for the treatment of pain associated with musculoskeletal disorders driven by injury, inflammation, ageing, degenerative disease, infection or genetic predisposition.
Paradigm is also exploring proof-of-concept studies for the use of PPS in respiratory and heart failure indications.
Upcoming milestones
Paradigm expects to report top-line data during September from the phase 2 study exploring change in synovial fluid biomarkers associated with joint destruction in knee OA patients.
Data reported will include the change in baseline of synovial fluid biomarkers following treatment once and twice weekly with Zilosul® versus placebo.
Clinical endpoints of improvements in WOMAC® pain and function following Zilosul® treatment versus placebo at day 56 will also be reported.
The data collected from this phase 2 study will be the first OA clinical trial data reported by Paradigm since the release of the Phase 2B (PARA_OA_005) clinical trial data in 2018. The collective analyses of pain, function, joint structure, and biomarker levels following PPS therapy will provide informative data to assess the potential of PPS as a disease-modifying osteoarthritis drug (DMOAD).
To generate further data establishing the in vivo mechanism of action of PPS in disease modification and provide complementary data in parallel with the PARA_OA_008 human clinical trial, Paradigm is concurrently conducting a trial in dogs with naturally occurring OA at the U-Vet Werribee Animal Hospital.
Paradigm intends to have data from the canine OA model available for release to the market along with the interim analysis data from PARA_OA_008 in September.