Stock of the day: Paradigm Biopharmaceuticals share price climbs 6% on clinical data

The Paradigm Biopharmaceuticals share price climbed 6% today following promising results from a trial of its osteoarthritis drug.

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price climbed over 13% today before edging back to a more modest gain of 6% by the market's close. The Paradigm share price increase came after the healthcare company revealed promising results from a trial of its drug in the treatment of osteoarthritis. Data from a Phase 2B clinical trial showed the drug, Zilosul, reduced cartilage degradation. Data showed 85.7% of patients reported a moderate to considerable improvement in their condition with Zilosul treatment. 

What does Paradigm Biopharmaceuticals do? 

Paradigm Biopharmaceutcials is focused on repurposing the drug pentosan polysulphate sodium (PPS) for the treatment of inflammation. PPS, which was previously used to treat bladder inflammation and prevent deep vein thrombosis, has anti-inflammatory and tissue regenerative properties. Paradigm is looking to repurpose PPS to treat osteoarthritis, leveraging the benefit of the drug's long track record. Currently, trials are underway using Paradigm's injectable form of PPS (Zilosul or iPPS) to treat osteoarthritis. 

What did Paradigm Biopharmaceuticals announce? 

Paradigm announced promising results from trials into the use of Zilosul. A Phase 2B clinical trial showed the drug reduces cartilage degradation. Treatment with Zilosul resulted in a reduction in two key biomarkers associated with cartilage degradation. Data from another patient cohort also showed their chronic pain response reduced by a mean of 44.9% following treatment with Zilosul. In addition, 30 out of 34 patients reported they had experienced a moderate to considerable improvement in their condition.  

Paradigm plans to apply to the TGA for provisional approval for the use of Zilosul to treat osteoarthritis. Further clinical trials will contribute data to support the application. A number of former NFL players were treated with Zilosul under an Expanded Access Program and results from this program are expected in early August. 

What's next for the Paradigm share price?

Osteoarthritis is the most common joint disorder in the United States. Symptomatic knee osteoarthritis occurs in 10% of men and 13% of women aged 60 years and older. The number of people affected with osteoarthritis is likely to increase due to the aging population and obesity epidemic. If Zilosul proves effective in treating the condition, Paradigm could benefit significantly. 

Paradigm is also eyeing broader markets. Trials are planned to evaluate iPPS in the treatment of Mucopolysaccharidosis patients. The company is also finalising a commercial research agreement with an Australian University which will investigate the efficacy of iPPS in viral induced respiratory disease. After an early rally that saw the Paradigm share price surge to $3.21, it closed the day's trade at $3.00. 

Motley Fool contributor Kate O'Brien 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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