The All Ordinaries Index (ASX: XAO) has risen 5% this week, but one ASX All Ords share has stormed far higher.
The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has soared 53% since market close on 29 September. Paradigm entered a trading halt before market open last Friday and emerged from the freeze on Tuesday.
Let's take a look at why this ASX All Ords share is having such a good week.
Clinical trial results
Paradigm shares have been storming higher since the company released news of a successful clinical trial for osteoarthritis (OA).
The drug company's share price soared more than 20% on Tuesday and has kept storming higher since then. At market close today, the Paradigm share price gained another 19.5%, finishing the session at $1.93.
Earlier this week, Paradigm advised the primary endpoint had been met for synovial fluid biomarkers in the PARA_OA_008 phase two clinical trial.
Multiple osteoarthritis biomarkers were shown to favourably change over time in patients treated with injectable PPS (iPPS) compared to placebo.
The trial also showed significant improvement in Western Ontario and McMaster Universities Osteoarthritis Index pain and function scores.
Paradigm highlighted the promising market opportunity for osteoarthritis treatment. Market research found US customers would be willing to pay between US$2,000 and US$3,000 for the use of iPPS as a therapy for osteoarthritis. Worldwide, there were 303.1 million cases of osteoarthritis in 2017.
Commenting on the news, chief medical officer Donna Skerrett said:
We are encouraged by these preliminary data on the potential of iPPS to improve joint function and reduce the levels of biomarkers of cartilage degeneration in this translationally relevant model of naturally occurring OA.
Paradigm recently conducted a $66 million capital raise. This will fund the company into the 2024 calendar year. The company will hold its annual general meeting on 18 November.
Share price snapshot
Paradigm shares have climbed more than 3% year to date, while they have soared 63% in the past week.
For perspective, the ASX All Ords has lost nearly 10% year to date.
Paradigm has a market capitalisation of about $539 million based on the current share price.
