Paradigm Biopharmaceuticals lists on ASX, announces clinical trial

Drug developer Paradigm Biopharmaceuticals (ASX:PAR) listed on the Australian Securities Exchange yesterday for the first time. Shares opened at $0.41 — a 12.5% premium to the $0.35 issue price — and closed at $0.37.

The listing follows Paradigm’s recent IPO, which raised the maximum subscription of $8 million. Funds from the IPO will progress the company’s Phase 2a clinical trial into a treatment for bone marrow edema (BME) lesions (bone bruising), which typically arise from sporting injuries, car accidents or minor accidental falls. A diagnosis of BME lesions following injury can progress to long-term degradation of the joint cartilage associated with the lesion (osteoarthritis).

There are currently no targeted, effective pharmaceutical treatment interventions for patients with BME lesions at the point of diagnosis. Non-steroidal anti-inflammatory drugs are commonly used; however, these are said to be ineffective at treating the underlying cause of the bone bruise and can have serious side effects.

As part of Paradigm’s upcoming clinical trial, up to 60 patients with BME will be administered intramuscularly six times over three weeks with the company’s pentosan polysulfate sodium (PPS) drug or placebo. PPS is known to protect cartilage, having anti-inflammatory and blood-clot-clearing properties — which are thought to be important in quickly resolving BME. The trial is expected to begin in late 2015 and be completed in 2017.

Paradigm also plans to progress development of nasally inhaled PPS as a new treatment for allergic rhinitis (AR) to substitute the use of corticosteroids. Further development of the inhalable product for allergic asthma will occur once the development of an AR nasal delivery product is completed.

The drug developer closed its first day on the ASX with a market capitalisation of $32 million based on its 87,580,219 shares on issue.