Managing director Paul Rennie sold about 4.13 million shares while non-executive chairman Graeme Kaufman and non-executive director John Gaffney sold 184,216 and 115,695 shares, respectively.
The purpose of the sale by Rennie is to fund a residential property, pay tax liabilities, balance his investment portfolio and to fund the repayment of an employee share plan (ESP) loan.
This is the first share sale by Rennie since he founded the company in 2014. Prior to Paradigm’s IPO, Rennie largely funded the entire company with his personal cash.
The current sale represents only 17.48% of Rennie’s holding. He still holds more than 19.5 million shares and owns 8.68% of Paradigm, retaining his position as the single largest shareholder of the company.
Multiple catalysts over the next 2-3 years
Paradigm Chairman Graeme Kaufman said: “We appreciate the support of these offshore institutions for helping facilitate this transaction as our share register continues to globalise.
“We are pleased that after 6 years and founding the company with the idea to treat to OA with PPS, Paul has been able to realise a small portion of liquidity to secure the financial future of his family.
“He has created tremendous shareholder wealth for a large number of our shareholders and we look forward to that continuing as we move towards some very large catalysts for the company over the next 2-3 years.”
Anticipated news flow for the remainder of calendar year 2020
- Potential to be included into the ASX 300 index during the rebalance scheduled to occur 19th June.
- Initial feedback from the Joint Parallel Scientific Advice submission to both the US FDA (Food and Drug Administration) and EMA (European Medicines Agency) during Q2. The submission put forward by Paradigm staff detailed the proposed trial design for a pivotal/registrational trial for MPS (mucopolysaccharidosis).
- Expanded Access Program (EAP) results to be released for entire patient population (n=10) treated under the EAP will be released to the market in Q3.
- New data on 100 patients under the TGA SAS (Therapeutic Goods Administration Special Access Scheme) using the primary and secondary endpoints for Paradigm’s proposed phase 3 trials, (i) reduced WOMAC pain from baseline and (ii) improved Patient Global Impression of Change (PGIC) at week 8 (Day 53).
- The company expects the data to be released to the market in Q3.
- Commencement of Paradigm’s MPS I Phase 2 clinical trial in Adelaide, Q3.
- Multi-Centred Phase 2/3 US and EU clinical trial for MPS VI on track to begin late CY2020.
- Phase 2b Osteoarthritis clinical trial and Phase 2A Viral Arthritis clinical trial Peer Reviewed Articles to be released to the market Q4.
- FDA Investigational New Drug (IND) submission for Osteoarthritis expected in Q4.
- TGA Provisional Approval submission likely Q4.
- New Patent Filings Q4.
- Partnership and commercial discussion remain ongoing.