Funding Boost Critical as Paradigm Expands Knee Osteoarthritis Trial Globally
Paradigm Biopharmaceuticals has drawn down US$5 million under its convertible note facility to fund the accelerated expansion of its global Phase 3 trial for knee osteoarthritis treatment.
- US$5 million drawdown completed under US$27 million convertible note facility
- Funding supports global Phase 3 trial of injectable pentosan polysulfate sodium (iPPS)
- Operational expansion includes accelerated site activations and patient recruitment in US, Australia, Europe, and Asia
- US$15 million remains available to support ongoing clinical and commercial activities
- Interim analysis milestone planned for mid-2026
Funding Boost for Late-Stage Clinical Trial
Paradigm Biopharmaceuticals Ltd (ASX, PAR) has announced the completion of a US$5 million (approximately A$7.64 million) drawdown of Tranche 2 under its US$27 million convertible note facility with Obsidian Global Partners. This capital injection is earmarked to support the company’s global Phase 3 clinical trial evaluating injectable pentosan polysulfate sodium (iPPS) for knee osteoarthritis, a condition with significant unmet medical needs.
Accelerating Global Trial Operations
The drawdown comes at a critical juncture as Paradigm ramps up operational activities. The company has accelerated site activations and patient recruitment efforts across key regions including the United States and Australia. Additionally, Paradigm has engaged NBCD A/S as a global contract research organisation (CRO) partner to oversee new trial sites in Europe and Asia, marking a strategic expansion into international markets.
Financial Strategy and Runway
With this tranche secured, Paradigm remains well capitalised to navigate the intensified clinical execution phase. Approximately US$15 million remains available under the facility, providing financial flexibility to support ongoing trial activities, regulatory engagements, and preparations for commercial readiness. The company emphasizes disciplined financial management, aligning investment closely with trial progress and key milestones.
Looking Ahead to Key Milestones
Paradigm’s Phase 3 trial, known as PARA_OA_012, is advancing toward an interim analysis scheduled for mid-2026. This milestone will be pivotal in assessing the efficacy and safety of iPPS in treating knee osteoarthritis. The successful completion of this phase could position Paradigm to address a substantial market opportunity with a novel anti-inflammatory and tissue regenerative therapy.
Strategic Implications
The drawdown underlines Paradigm’s commitment to progressing its late-stage clinical program while maintaining financial discipline. By securing additional funding now, the company mitigates risks associated with operational scale-up and ensures continuity as it pursues regulatory approvals and eventual commercialisation.
Bottom Line?
Paradigm’s latest funding move sets the stage for a critical phase in its clinical journey, with eyes on mid-2026 interim results.
Questions in the middle?
- How will patient recruitment rates impact the timeline to interim analysis?
- What are the terms and potential dilution effects of the convertible note facility?
- How might international site expansions influence regulatory approval pathways?
