Paradigm Biopharmaceuticals Ltd (ASX:PAR) shares surged to a new 12-month high today after having mechanism of action (MoA) data published for its flagship drug pentosan polysulfate sulphate (PPS) also known as Zilosul.
The MoA data is considered groundbreaking because it shows that Zilosul inhibits nerve growth factor (NGF) production in bone cells thereby reducing pain in patients with OA.
Shares have been up 50 cents, or almost 20%, today to a new 12-month high of $3.03 on volume of more than 2.5 million. This is up from $1.60 at the start of the month.
This newly identified MoA for PPS in pain reduction together with its anti-inflammatory and disease-modifying actions that protect cartilage degeneration provide strong support to Paradigm’s regulatory submissions to the US-FDA.
With the ongoing opiate crisis large pharmaceutical companies have spent billions of dollars attempting to develop non-opioid agents specifically targeting NGF.
This highlights the value of this new discovery by Paradigm, which could potentially present an attractive commercial partnership opportunity for large pharmaceutical companies.
Big pharma are actively trying to do a deal
Paradigm’s CEO Paul Rennie said: “I believe that this publication should alert the interest of ‘big pharma’ who are actively trying to deal with the opiate crisis by developing pharmaceutical agents that are non-opioid, non-addictive, safe and efficacious.
“Paradigm continues to demonstrate that PPS meets many of the needs being sought after in treating this disease.
“We are showing that PPS as the active agent within our product Zilosul is a pharmaceutical agent that curbs the disease process involved in OA at every level. That being; inflammation, cartilage protection and pain.
Publication in peer-reviewed journal helps Paradigm
“Having a mechanism of action (MoA) which has passed the rigor of peer review is important for Paradigm’s future submissions to the regulatory authorities.
“The MoA and the patent applications also further protect Paradigms intellectual property for use of PPS in treating OA.
“We continue on the pathway to commercialise Zilosul and believe this ground-breaking discovery will further attract commercial interest in Paradigm’s clinical development.”
