Why is the Paradigm share price rocketing 20% higher today?

The Paradigm share price is having a very strong day…

| More on:
Man with rocket wings which have flames coming out of them.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Key points

  • Paradigm shares are racing higher on Thursday morning
  • This follows news that the company has been granted a patent in Australia
  • This may bode well for the company's upcoming US application

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price isn't letting the market weakness hold it back today.

In morning trade, the biopharmaceutical company's shares are up 20% to $1.15.

Why is the Paradigm share price surging higher?

The catalyst for the strong rise by the Paradigm share price on Thursday has been the release of a positive announcement.

According to the release, the company has received official acceptance of an Australian patent application for the "treatment of bone marrow pathologies with polysulfated polysaccharides."

Paradigm's patent will expire in over 15 years on 6 August 2038.

The release notes that the first claim of the accepted patent refers to a method of improving knee function where the subject has a bone marrow lesion and osteoarthritis in a knee by administering pentosan polysulfate sodium (PPS).

It is also worth noting that there is only one FDA approved manufacturer of PPS, Bene pharmaChem. Pleasingly, Paradigm has an exclusive, sub-licensable, global supply agreement with Bene pharmaChem for the manufacture and commercial use of PPS for multiple indications extending for 25 years post first marketing approval.

What about in the US?

Readers may recall that earlier this year the company revealed that the US patent office rejected its patent application.

However, the release notes that this Australian patent was the same one the US rejected. Furthermore, the US rejection was not a final rejection.

In light of this, the market appears optimistic that Paradigm's next attempt to get its US patent application accepted may be successful. Paradigm intends to file its response to the US patent and trademark office by the end of July.

Paradigm's Chairman, Paul Rennie commented:

It is very exciting for the Company's strategic plans to have a patent which claims the treatment of people with osteoarthritis and bone marrow lesions with pentosan polysulphate sodium (PPS) and we expect further acceptance and grants in other territories in the coming months. We continue to work in partnership with our patent attorneys to proactively prosecute new patents to extend our protection on the use of PPS in disease indications with unmet medical needs.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

3 ASX companies that are global leaders

Numerous ASX companies have extended their reach beyond Australia to dominate in their fields.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Bell Potter just slapped a buy on this ASX 200 share offering a 30% return

Which stock is being tipped as a buy? Let's find out.

Read more »

Happy healthcare workers in a labs
Healthcare Shares

Macquarie initiates coverage of Neuren Pharmaceuticals shares; forecasts 45% upside

The broker described Neuren as a standout in the ASX biotech sector.

Read more »

A woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Does Macquarie think Cochlear shares are a buy, hold, or sell?

Macquarie has released a new note on Cochlear following the company's FY25 profit guidance change.

Read more »

Stethoscope with a piggy bank in the middle.
Healthcare Shares

Up 18% this year, does Macquarie expect NIB shares to go higher?

This expert has a bold prediction for NIB.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why is the Mesoblast share price up 11% in June?

The ASX biotech share reached a 10-week high of $1.94 today.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Up 51% since the tariff pain, is it too late to buy Pro Medicus shares?

After rocketing higher, is the ASX healthcare share still an opportunity?

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Healthcare Shares

CSL shares push higher on US FDA approval

This biotech giant has been given a boost in the United States.

Read more »