Why the Paradigm (ASX:PAR) share price is charging 6% higher today

Here's why the Paradigm Biopharmaceuticals Ltd (ASX:PAR) share price is charging notably higher on Friday afternoon…

| More on:

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

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is charging higher on Friday.

In early afternoon trade the biopharmaceutical company's shares are up a sizeable 6% to $2.55.

Chalk-drawn rocket shown blasting off into space

Image source: Getty Images

Why is the Paradigm share price charging higher today?

Investors have been fighting to get hold of Paradigm's shares on Friday after the release of an announcement this morning.

According to the release, Paradigm has submitted its Investigational New Drug (IND) application to the US Food and Drug Administration (FDA). This is for the planned pivotal study and extension study with PPS (Zilosul) for the treatment of patients with Knee Osteoarthritis (OA). The company believes the submission of its IND application marks a significant milestone.

Management revealed that in preparation for the IND submission and commencement of the pivotal clinical program, Paradigm conducted meetings with key regulatory bodies. This was to ensure the clinical trial design would be acceptable on a global platform and meet all obligations required for registration upon successful trial results.

One of these was a pre-IND meeting in February last year with the FDA. At this meeting the two parties discussed the clinical trial protocol. Paradigm also received feedback from a Type-C meeting in December 2020, where the written response to questions posed by Paradigm was received from the FDA on the proposed clinical trial design.

In Europe, regulatory engagement with the EMA was also achieved via a virtual Scientific Advice meeting in September 2020.

Management commentary

Paradigm's Chairman and CEO, Paul Rennie, commented: "It has been incredibly pleasing watching all modules of the IND submission come together and I am very thankful for the highly experienced and skilled Paradigm team for achieving this significant milestone on time for all of our stakeholders."

"We believe that a harmonised clinical trial program that satisfies the requirements for registration with multiple global regulatory agencies will save Paradigm time and money as we approach registration and commercialisation of Zilosul."

Mr Rennie also believes that the IND will give the company's profile a boost and bring it into the radar of investors and potential partners.

"We anticipate the IND opening will provide further exposure to global investors and partners with the company already receiving an increase in global interest in our Phase 3 clinical program during our attendance this week at the 2021 BIO-Europe Spring Partnering conference where the company has participated in several partnering meetings."

"We look forward to providing further detail on the final study design and timing once the IND has been opened following the 30-day review period with the FDA."

Motley Fool contributor James Mickleboro 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 Gainers

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for the markets this Thursday.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today

These shares are having a good session on Thursday. But why?

Read more »

A group of happy young people watching sport on a laptop celebrate.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an exceptional session for investors today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today

These shares are having a better day than most on hump day.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today

These shares are having a solid session on Tuesday. But why?

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors had a rough start to the week.

Read more »

Three people with gold streamers celebrate good news.
Gold

Guess which ASX gold stock is leaping 22% in Monday's sinking market?

Investors are piling into this junior ASX gold stock on Monday. But why?

Read more »

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough end to a tough week.

Read more »