Why is the Paradigm (ASX:PAR) share price climbing today?

The Paradigm (ASX: PAR) share price is up 2.8% after the company reported a loss in its first-half FY21 earnings. Here's a closer look.

| More on:
Medical staff wear hero capes, indicting strong shar [price performace for healthcare shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price gained ground today and is presently trading at $2.55 a share, a 2.82% bounce.

The share price increase comes after Paradigm released its 1HY21 financial results.

Here's the rundown of what we found out. 

Paradigm share price rises after company reports loss

Paradigm reported a net profit after taxes (NPAT) loss of $20.7 million for 1HY21. This compares to the $5.1 million loss reported for 1HY20.

The company advised that the increased NPAT loss was a product of the significant progress made with its osteoarthrosis (OA) and mucopolysaccharidosis (MPS) clinical programs.

Specifically, the company incurred the costs and expenses reflected in the NPAT loss in order to launch phase II and phase III trials for the treatment of MPS. Paradigm also allocated additional expenses to convene meetings pertaining to OA with the United States Food and Drug Administration and European Medicines Agency.

As of 31 December 2020, Paradigm posted $95.3 million worth of assets. $112.4 million in total assets was reported for the 1HY20 period.

Cash and cash equivalents totalled $85.2 million for 1HY21 compared to $80 million for 1HY20.

The company received a $3.4 million R&D tax incentive during 1Hy21.

Chief medical officer shares insight

Paradigm chief medical officer Dr Donna Skerrett commented on Paradigm's progress during the period, saying: 

During CY 2020, Paradigm conducted a number of non-clinical and clinical studies to provide updated information regarding drug characteristics, pharmacokinetics, and non-clinical toxicity as requested by the FDA in the company's first meeting with the agency in February 2020.

Paradigm has worked diligently to ensure it has all the necessary supporting non-clinical and clinical data and clinical development plan to support its IND submission in Q1 CY 2021.

Paradigm share price snapshot

Over the past year, the Paradigm share price has dropped about 26%.

The company's market capitalisation is $578.2 million. Paradigm currently has 225.9 million shares outstanding.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Broker Notes

Guess which ASX 300 stock was downgraded to sell today

Bell Potter has become bearish on this stock. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a gas worker with hard hat and high visibility vest stands cross armed and smiling in front of an elaborate steel structured gas plant.
Share Market News

Morgans names 2 ASX energy shares to buy now

These shares could be top picks for investors with a high tolerance for risk.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Broker Notes

Is the ResMed share price still cheap? What the numbers say

Let's see what analysts are saying about this blue chip as it nears a 52-week high.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Broker Notes

What does Macquarie think REA shares are worth?

Top broker Macquarie has reviewed its rating and price target on REA shares.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Woman checking out new TVs.
Broker Notes

Does JP Morgan think JB Hi-Fi shares can keep rising?

The retailer is up 16% for the year to date.

Read more »