Paradigm Biopharmaceuticals Ltd (ASX:PAR) has raised A$66m, having raised A$45.7m in a recent placement and a further A$20.3m following a successful right offer.
Through the rights offering, PAR has issued approximately 15.6 million shares at a price of A$1.30 per share. Eligible shareholders subscribed approximately 3.58 million new shares, which represents a total subscription rate of approximately 23%.
The offer, opened on August 15, closed on September 7.
The fully secured placement and offering is expected to give PAR a pro forma cash position of A$108.5 million to fund it through 2024.
Business and product development
As Proactive reported when it first announced the raise, the funds will be used to:
- Paradigm’s Phase 3 clinical program and New Drug Application (NDA) activities;
- business development activities;
- activities related to product development (auto-injector for example); and
- working capital.
Bell Potter Securities Limited acted as sole lead manager and underwriter for the fully subscribed fundraising.
Read: Paradigm Biopharmaceuticals to raise $66 million to fund it through CY24
The late-stage drug development company aims to develop and commercialize Pentosan Polysulfate Sodium for the treatment of pain associated with musculoskeletal disorders caused by injury, inflammation, aging, 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.
Paradigm expects to release key data from the Phase 2 study in September exploring changes in synovial fluid biomarkers associated with joint destruction in patients with knee osteoarthritis.
Data reported will include change from baseline in synovial fluid biomarkers after once- and twice-weekly treatment with Zilosul® compared to placebo.
Clinical parameters of improvement in pain and WOMAC® function after treatment with Zilosul® compared to placebo at day 56 will also be reported.
Data collected from this Phase 2 study will be the first osteoarthritis clinical trial data reported by Paradigm since the publication of Phase 2B clinical trial data (PARA_OA_005) in 2018. , function, joint structure, and biomarker levels after PPS therapy will provide informative data to assess the potential of PPS as a disease-modifying drug (DMOAD).
To generate additional data establishing the in vivo mechanism of action of PPS in disease modification and to provide complementary data alongside the human clinical trial PARA_OA_008, Paradigm is concurrently conducting a trial in dogs with natural osteoarthritis at the ‘U-Vet Werribee Animal Hospital.
Paradigm intends to make the OA canine model data available to the market along with the PARA_OA_008 interim analysis data in September.