Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Paradigm Biopharmaceuticals / Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/paradigm-biopharmaceuticals" target="_blank" data-smartkarma-citation="entities:26140:1" rel="noopener">Paradigm Biopharmaceuticals (PAR AU)</a> has requested a trading halt to the ASX pending an announcement in relation to a capital raising. Normal trading will resume on Monday, December 9, 2024.</li>
<li>Assuming quarterly cash burn rate of A$7M, Paradigm’s cash balance should provide a runway through mid-Q3FY25. The company is in a dire need to raise fund.</li>
<li>With lead drug being in late-stage trial and having huge market potential, Paradigm seems to be an attractive biotech investment opportunity. Recently, optimism is growing surrounding Paradigm’s lead drug candidate.</li>
</ul>



Paradigm Biopharmaceuticals (PAR AU) has requested a trading halt to the ASX pending an announcement in relation to a capital raising. Normal trading will resume on Monday, December 9, 2024.
Assuming quarterly cash burn rate of A$7M, Paradigm’s cash balance should provide a runway through mid-Q3FY25. The company is in a dire need to raise fund.
With lead drug being in late-stage trial and having huge market potential, Paradigm seems to be an attractive biotech investment opportunity. Recently, optimism is growing surrounding Paradigm’s lead drug candidate.


Paradigm Biopharmaceuticals (PAR AU): Fund Raising Amidst Pipeline Progress Raises Conviction

Thematic (Sector/Industry)

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<li>In last month’s monetary policy decision, the Reserve Bank of Australia (RBA) kept interest rate unchanged at 4.35%.</li>
<li>According to a Reuters poll, a majority of the economists predicted interest rates to remain unchanged in the current quarter, followed by a 25bps cut to 4.10% in 4Q24.</li>
<li>Amid possible rate cut talks both in the domestic as well as the U.S. market, we want to take a look at Australian biotech companies.</li>
</ul>


In last month’s monetary policy decision, the Reserve Bank of Australia (RBA) kept interest rate unchanged at 4.35%.
According to a Reuters poll, a majority of the economists predicted interest rates to remain unchanged in the current quarter, followed by a 25bps cut to 4.10% in 4Q24.
Amid possible rate cut talks both in the domestic as well as the U.S. market, we want to take a look at Australian biotech companies.


Australian Biotech Companies Amid Talk of Likely Interest Rate Cut

Equity Bottom-Up

Paradigm Biopharmaceuticals / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/paradigm-biopharmaceuticals" target="_blank" data-smartkarma-citation="entities:26140:1" rel="noopener">Paradigm Biopharmaceuticals (PAR AU)</a> announced phase 2 trial result, demonstrating that lead drug candidate, iPPS treats the symptoms of osteoarthritis as well as preserves and/or regenerates joint tissues.</li>
<li>This is significant from a commercial perspective because the disease modifying effects of iPPS observed in the phase 2 clinical trial are expected to support a greater reimbursement.</li>
<li>Paradigm’s cash position was bolstered by A$66M capital raise in Aug’22. As of June 30, 2023, the company has a cash balance of A$56.3M, which should provide runway through Q1FY25.</li>
</ul>



Paradigm Biopharmaceuticals (PAR AU) announced phase 2 trial result, demonstrating that lead drug candidate, iPPS treats the symptoms of osteoarthritis as well as preserves and/or regenerates joint tissues.
This is significant from a commercial perspective because the disease modifying effects of iPPS observed in the phase 2 clinical trial are expected to support a greater reimbursement.
Paradigm’s cash position was bolstered by A$66M capital raise in Aug’22. As of June 30, 2023, the company has a cash balance of A$56.3M, which should provide runway through Q1FY25.


Paradigm Biopharmaceuticals (PAR AU): Positive Result from Phase 2 Trial; Satisfactory Cash Position

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<li>
<a href="https://www.smartkarma.com/entities/paradigm-biopharmaceuticals" target="_blank" data-smartkarma-citation="entities:26140:1" rel="noopener">Paradigm Biopharmaceuticals (PAR AU)</a> announced A$66 million capital raising, comprising A$45.7 million institutional placement and rights issue offer of A$20.3 million at A$1.30 per share.</li>
<li>At the completion of the transaction, Paradigm will have a proforma cash position of $108.5 million, which funds the company into 2024.</li>
<li>Paradigm is expected to announce data from one of its key trials related to knee OA pain in September, which will be a near-term catalyst for the company.</li>
</ul>



Paradigm Biopharmaceuticals (PAR AU) announced A$66 million capital raising, comprising A$45.7 million institutional placement and rights issue offer of A$20.3 million at A$1.30 per share.
At the completion of the transaction, Paradigm will have a proforma cash position of $108.5 million, which funds the company into 2024.
Paradigm is expected to announce data from one of its key trials related to knee OA pain in September, which will be a near-term catalyst for the company.


Paradigm Biopharmaceuticals (PAR AU): Comfortable Funding Position Through 2024

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<li>
<a href="https://www.smartkarma.com/entities/paradigm-biopharmaceuticals" target="_blank" data-smartkarma-citation="entities:26140:1" rel="noopener">Paradigm Biopharmaceuticals (PAR AU)</a> shares plunged 32% since we published our bearish insight on the company on January 11. Shares are trading near their pandemic lows.</li>
<li>Our negative view on the company due to the inherent safety proposition of lead drug and financial uncertainty remain intact. Insider buying led to the recent uptick in share prices.</li>
<li>Amid uncertain global market condition and general market apathy toward biotechnology companies, we will not be an investor of Paradigm Biopharmaceuticals despite its recent sell-down.    </li>
</ul>



Paradigm Biopharmaceuticals (PAR AU) shares plunged 32% since we published our bearish insight on the company on January 11. Shares are trading near their pandemic lows.
Our negative view on the company due to the inherent safety proposition of lead drug and financial uncertainty remain intact. Insider buying led to the recent uptick in share prices.
Amid uncertain global market condition and general market apathy toward biotechnology companies, we will not be an investor of Paradigm Biopharmaceuticals despite its recent sell-down.    


Paradigm Biopharmaceuticals (PAR AU): Concerns Persist Amid Deteriorating Financials

Australia

Paradigm Biopharmaceuticals Limited operates as a biopharmaceutical company. The Company develops PPS drug to treat respiratory diseases such as allergic asthma, allergic rhinitis, and chronic obstructive pulmonary. Paradigm Biopharmaceuticals offers its services in Australia.

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Paradigm Biopharmaceuticals (PAR AU)