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Will the Paradigm share price climb higher on promising ASX update?

Paradigm Biopharmaceuticals Ltd (ASX: PAR) shares could climb higher in early trade after a promising corporate update to the ASX this morning.

What was in this morning’s update?

Paradigm announced in mid-April that its 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 company reported this morning that it is also seeing significant reductions in bone marrow lesions (BML) in sites of the body other than the knee using iPPS under the TGA special access scheme, including the hip, knee, and ankle.

Paradigm also said that it has identified the first 10 ex-NFL players with U.S-based doctors engaged and an imminent submission to the Food and Drug Administration (FDA) for compassionate use of iPPS, with first results expected in Q3 2019.

The company also noted that its main competitor in the osteoarthritis (OA) treatment space, Tanezumba (Pfizer and Lilly), missed a Phase 3 trial milestone with results showing both dosage levels fared worse than placebo on safety and failed to meet co-primary efficacy goals.

Should you buy Paradigm shares?

The Paradigm share price has soared 54.5% higher so far this year and recently hit a 52-week and record high of $2.15 per share.

The company also climbed into the S&P/ASX300 Index (ASX: XKO) in March 2019 following the latest S&P quarterly index rebalancing and I would expect its upcoming trial results on 50 ex-National Football League (NFL) players to bring further attention in the second half of the year.

I think there’s huge potential for Paradigm to continue to capture market share and boost earnings if the trial results continue to prove successful, particularly given the latest stumble by its key OA competitor.

In the next 3-5 years, I could easily see Paradigm challenging the likes of CSL Limited (ASX: CSL) and Ramsay Health Care Ltd (ASX: RHC) as a top blue-chip healthcare stock on the ASX.

For those who want to find the next hot growth company, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.

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Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.