Paradigm launches capital raising after successful osteoarthritis trials
Adelaide pharmaceutical company Paradigm has launched a $77.9 million capital raising after completing trials of a “potential blockbuster” drug in the treatment of osteoarthritis.
SA Business
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Adelaide pharmaceutical company Paradigm has launched a $77.9 million capital raising after completing trials of a “potential blockbuster” drug in the treatment of osteoarthritis.
The injection of capital would be used to see the company through to the end of phase 3 trials of its pentosan polysulphate sodium (iPPS) drug, which are expected to commence in the US, Europe and Australia this year.
It follows completion of successful phase 2b trials, which the company says showed improved knee function and 50 per cent pain reduction for six months.
Reduced bone marrow lesion (BML) grade, volume and area also signalled possible regression of the disease, the company’s chief executive Paul Rennie said.
“Traditionally, in osteoarthritis sufferers, bone marrow lesions remain the same size or get larger over time,” he said.
“Here, we see iPPS producing a net 65 per cent reduction in BML volume ... which is impressive, especially considering the MRI images were taken just two weeks after the last injection of iPPS, which is a very short time period after cessation of the drug.
“To have such a magnitude of difference on the total knee volume and area, and statistically significant difference for the medial compartment of the knee, is an amazing result and something that the medical, scientific and pharmaceutical fraternity will appreciate the importance of.”
The capital raising comprises a $51.6 million placement to sophisticated investors and a $26.3 million 1 for 8 entitlement offer to existing shareholders.
The offer is priced at $1.50 per share - a 21 per cent discount to Wednesday’s closing share price when the company entered a trading halt.
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