Paradigm Biopharmaceuticals has drawn down US$5 million from its Convertible Note Facility to fund the next phase of its global Phase 3 trial for knee osteoarthritis treatment, marking a key step as patient recruitment nears 50%.
- US$5 million drawdown completed under Convertible Note Facility
- Funding supports global Phase 3 trial of injectable pentosan polysulfate sodium
- Trial recruitment approaching 50% milestone
- Approximately US$10 million remains available for ongoing trial activities
- Operational expansion across US, Australia, Hong Kong, and Moldova
Funding Milestone Achieved
Paradigm Biopharmaceuticals Ltd (ASX, PAR) has announced the successful drawdown of US$5 million (approximately A$7.6 million) as Tranche 3 under its US$27 million Convertible Note Facility with Obsidian Global Partners. This latest tranche injection is designed to bolster the company’s working capital as it intensifies efforts in its pivotal Phase 3 clinical trial for injectable pentosan polysulfate sodium (iPPS), targeting knee osteoarthritis.
Advancing a Global Clinical Program
The PARA_OA_012 trial is now entering a critical phase with patient recruitment nearing the halfway mark. Paradigm’s clinical operations have expanded across multiple jurisdictions, including the United States, Australia, Hong Kong, and Moldova, reflecting a broadening global footprint. The company reports increased site activations and patient enrolments, signalling growing momentum in trial execution.
Strategic Use of Capital
This tranche drawdown coincides with a period of heightened clinical activity, encompassing increased patient dosing, monitoring, and regulatory engagement. Paradigm emphasises disciplined capital management, ensuring that expenditure aligns closely with operational progress. With approximately US$10 million still available under the facility, the company maintains financial flexibility to support upcoming milestones, including an interim analysis slated for mid-2026 and early commercial readiness initiatives.
Looking Ahead
As Paradigm progresses through this late-stage development phase, the successful drawdown underlines investor confidence and the company’s commitment to advancing its therapeutic candidate. The coming months will be pivotal as recruitment accelerates and interim data readouts approach, potentially setting the stage for regulatory discussions and eventual market entry.
Bottom Line?
Paradigm’s latest funding drawdown fuels momentum toward critical Phase 3 milestones, with eyes on mid-year interim results.
Questions in the middle?
- Will Paradigm meet its 50% recruitment target on schedule?
- How might interim analysis outcomes influence regulatory timelines?
- What are the company’s plans for commercial readiness post-trial?