SA pharmaceutical firm Paradigm set to make billions from osteoarthritis drug

A pain-reducing osteoarthritis drug that could potentially benefit up to 15 per cent of the western world is set to become a multibillion-dollar product for an Adelaide pharmaceutical company.

Former Carlton player Andrew Walker with his family Cody, 9, Arli, 5, and Leti, 2, and wife Kylie. He started using a breakthrough new arthritis medicine he says has changed his life. Picture: Alex Coppel

An Adelaide company is on the brink of a medical breakthrough that could potentially benefit millions of osteoarthritis sufferers around the world.

ASX listed Paradigm Biopharmaceuticals has completed phase two trials for a new drug that reduces severe aches and pains by about half and allows people to exercise more.

It is hoped the treatment will delay expensive and short-term joint replacements.

The trials, which have taken two years to plan and implement, means the drug can now undergo final testing.

If successful, this is likely to lead to mass manufacturing of the drug in the US.

Former Carlton footballer Andrew Walker, whose career was cut short by a knee injury, has been involved in trialling the drug.

Andrew Walker, whose career was cut short by a knee injury, has been involved in trialling the drug. Picture: George Salpigtidis

“I retired in 2016 and was booked in for a knee replacement which really scared me,” he said.

“I was 29 years old. I was fortunate to be part of this trial, which has given me all sorts of freedom back in my knees.

“Just the everyday things I was struggling with, getting from the bedroom to the kitchen and getting the kids ready for school.”

Paradigm CEO Paul Rennie said 2.1 million Australians suffered from osteoarthritis, including one in five people aged over 45.

“This is all about pain relief and is targeted at the moderate to severe end of the pain spectrum,” Mr Rennie said.

“Pain stops (people) exercising, which leads to more ill health.”

Progress on the trial of pentosan polysulphate sodium (iPPS) resulted in Paradigm’s share price jumping about 50 per cent in early-morning trading yesterday.

“Phase two is where we see value for the company,” Mr Rennie said. “The stock price can bubble along for a while on a few good pieces of news, but for the first time the stakeholders can now move to the next stage. It will be a multi-billion dollar product. That’s why there is a lot of interest around phase two.”

Paradigm chief executive officer Paul Rennie founded the ASX listed company in 2015.

The clinical trials have been held across Australia by Paradigm.

Arthritis Foundation SA CEO Denise McMillan-Hall welcomed the iPPS trials.

“Together with exercise and other lifestyle habits, pain medication can assist in the management of osteoarthritis and allow people to live a full and active life,” she said.

“Osteoarthritis can greatly impact their life on a daily basis. Ongoing joint pain is one of the commonly reported effects of the disease, with over half of all people with osteoarthritis reporting they have moderate to very severe pain.

“People living with osteoarthritis are four times more likely to report having very severe pain than those without the disease.”

South Australian osteoarthritis sufferer Tammy is in her late 30s and was diagnosed with the disease 12 months ago.

“Flare-ups are random but mean constant pain when they happen,” she said.

She said preventive medicine was key and she welcomed an alternative to joint replacement.

Mr Rennie, who studied science at Flinders University, founded Paradigm in 2015.

The company’s chief scientific officer, Dr Ravi Krishnan, has 35 years of medical research experience under his belt and is an Adelaide University alumni.