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These small cap ASX shares are surging higher today

Although the market is in selloff mode again on Tuesday, not all shares have fallen with it.

In fact, three shares at the small end of the market have posted particularly strong gains today. Here’s why they are surging higher:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up 4% to $1.04 after the biotechnology company announced the completion of the clinical study report for its Phase 1 clinical trial of CYP-001 for the treatment of steroid-resistant acute graft versus host disease (GvHD). A copy of this report has now been provided to Fujifilm, which has 90 days to decide whether it wishes to exercise its license option. The phase 1 clinical trial delivered strong results with 13 out of 15 patients showing an improvement in GvHD severity by a least one grade compared to the baseline.

The Donaco International Ltd (ASX: DNA) share price has stormed 13.5% higher to 5 cents despite there being no meaningful news out of the casino and resort operator. In fact, the only bit of news out of Donaco today was that Perpetual Limited (ASX: PPT) has been selling shares, cutting its stake in the company down from 13.5% to 7.7%. The company’s shares have been extremely volatile this week after it announced a strategic review to consider ways to unlock the value of its assets and provide value to shareholders.

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has jumped 15% to $1.52 after announcing that it has met the primary endpoint of its phase 2B randomised double-blind placebo-controlled clinical trial. The trial was designed to evaluate the effects of injectable pentosan polysulfate sodium (iPPS) on knee pain in subjects with knee osteoarthritis and subchondral bone marrow edema lesions (BMELs) as assessed by the Knee injury and Osteoarthritis Outcome Score Pain subscale. According to the release, 46.2% of subjects receiving iPPS showed a greater than 50% reduction in pain from baseline compared to 22.5% of subjects receiving a placebo.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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