Paradigm Biopharmaceuticals Ltd (ASX: PAR) shares remain in a trading halt after announcing a capital raise to support the next phase of its osteoarthritis trial – but is Paradigm in the buy zone?
What did Paradigm release this morning?
Paradigm’s Phase 2B clinical trial met key secondary end-points in osteoarthritis of the knee, with subjects receiving injectible pentosan polysulfate sodium (iPPS) were shown to have improved knee function and durable pain reduction for 6 months.
The positive secondary end-points and other strong results highlight the potential of iPPS to slow progression of osteoarthritis, and follows the successful completion of its phase 2b randomised, double-blind and placebo-controlled trial in December 2018.
Paradigm followed up the trial program update with a $77.9 million capital raise comprising a $51.5 million placement and a $26.3 million underwritten accelerated entitlement offer to fund the program.
The company expects to use the funds to fund its ongoing programs through