The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is on the rise this morning following a partnership agreement. At the time of writing, the biopharmaceutical company's shares are up 1.92% to $2.66.
What did Paradigm announce?
Paradigm shares are on the move today after updating the ASX with a positive announcement.
According to this morning's release, Paradigm advised that it has entered into a collaboration agreement with bene pharmChem (Bene). This follows a recently updated exclusive licence and supply deal between both parties in September last year.
Furthermore, the new agreement will seek to co-fund new R&D projects to unlock the potential benefits of Pentosan Polysulfate Sodium (PPS). Paradigm and Bene have also committed to work together on new intellectual (IP) property ownership to protect future innovations. This will be managed by the newly created, Joint Steering Committee. The purpose of the committee is to identify new projects, intended outcomes, and attribute IP ownership.
PPS, an injectable solution, aims to treat musculoskeletal disorders caused by injury, inflammation, aging, degenerative disease, infection or genetic predisposition. The semi-synthetic drug is packaged as Zilosul, and has shown improvements in pain reduction, joint function, and the prevention of cartilage damaging joints.
Additionally, Paradigm highlighted the importance of its longstanding relationship with Bene, the only approved manufacturer/supplier of PPS in the United States. While the new agreement establishes jointly funded activities, Paradigm will retain exclusive commercial rights to all information and developments.
Management commentary
Bene pharmaChem co-managing director Dr. Harald Benend commented on the upcoming trials for PPS:
Bene is excited by the imminent commencement of the phase 3 program for osteoarthritis and will be assisting Paradigm in any way possible to achieve the goal of successful registration and commercialisation of Zilosul for OA (osteoarthrosis).
Paradigm CEO and acting chair Paul Rennie also added:
We are eagerly awaiting the commencement of the pivotal phase 3 program for osteoarthritis; the market is eager for a safe and effective non-opioid therapy to relieve the burden of pain in osteoarthritis, PPS is showing great promise to meet this need.
About the Paradigm share price
The Paradigm share price has gained over 60% in the past 12 months, and is slightly up 2% year-to-date. The company's share price also reached a 52-week high of $3.88 in late June of 2020.
Based on the current share price, Paradigm has a market capitalisation of around $589 million, with 225.8 million shares outstanding.
