Paradigm Biopharmaceuticals (ASX:PAR) shares were up nearly +25% in morning trades as the company unveiled a loan of around $41 million to advance its osteoarthritis clinical investigations.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
But more exciting to some long-term holders was that the company issued convertible securities at a price of 75cps – suggesting the company (and its funders) believe there’s a good chance the share price could nearly double.
The fact the term facility was not dilutive of existing shares also came warmly received, underscoring, as usual, the kind of things HotCopper users look for. Not that this matters to Paradigm’s forward journey hereafter.
The funds should take the company ahead into mid-2026, citing expectations of being fully funded up until an interim analysis of all existing data.
So far, the company’s drawn down US$7M of the facility to fund clinical operations.
“This funding facility represents a valuable instrument to ensure continued clinical execution while maintaining strategic flexibility. Importantly, it allows Paradigm to pursue key milestones in the phase 3 program with confidence, while preserving optionality around future capital needs,” company MD Paul Rennie said.
“The phase 3 start-up phase is now largely complete, and we are moving forward with the clinical trial site initiation visits with recruitment to begin later this month.”
More market news
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
“Not possible”: ACCC is taking AGN to court over gas port claims
The big question here is: Do Paradigm’s good fortunes point towards a revival of the biotech boom through H2 CY2025?
PAR last traded at 38cps.
Join the discussion: See what HotCopper users are saying about Paradigm Biopharmaceuticals and be part of the conversations that move the markets.
Disclaimer: HotCopper had a commercial relationship with Paradigm at the time this article was crafted and published.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please clickhere.