Paradigm BioPharmaceuticals launches $13.5m IPO

Paradigm BioPharmaceuticals has launched an up to $13.5 million IPO on the ASX, to help fund commercialisation efforts for its bone marrow edema (BME) treatment candidate.

The Melbourne-based company will raise between $10 million and $13.5 million via an offer at $0.35 per share.

The IPO will close on 12 December and the company will list on the ASX from 22 December. The company’s post-raising market valuation is expected to be up to $31.6 million.

Proceeds from the IPO will be used to help fund efforts including a phase II trial of the historic drug pentosan polysulfate sodium (PPS) in a new indication - BME. The trial is expected to commence in Australia and Europe in 2015.

Bone marrow edema typically effects sportspeople but can also be a side effect of a range of injuries including car accidents or falls. It is caused by fluid build-up and micro-fractures inside the bone, causing severe pain.

There are no approved products designed to treat the condition, and the typical therapeutic option of non-steroidal anti-inflammatory drugs can have serious side effects.

PPS has been approved in Europe for decades as a treatment for blood clots, and its anti-clotting abilities and anti-inflammatory properties make it a candidate for the treatment of BME.

“We know this drug works, we know this drug is safe. There is strong evidence it can be redeployed to benefit new classes of patients in other indications,” Paradigm BioPharmaceuticals Managing Director Paul Rennie said.

“There is no existing therapy to treat the underlying cause of BME and we are keen to pursue this terrific commercial opportunity by unlocking the full potential of this compound.”