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.
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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.
