The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is going nowhere today after the company requested a trading halt.
The Paradigm share price has rocketed from $1.05 per share on 28 July to $1.99 per share at Wednesday's close, a gain of 89.5%.
Across this timeframe, the ASX-listed biopharmaceutical company released its quarterly results for the three months ended 30 June 2022 and announced the results of a major research project.
Before market open this morning, it entered a trading halt pending an announcement relating to a capital raising.
Let's dive deeper to get up to speed with what's happening at Paradigm.
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Why is Paradigm in a trading halt?
The Paradigm share price has been frozen today after the company requested a trading halt in relation to a capital raising.
It will remain halted until the start of normal trading on Monday or when the announcement is released to the market, whichever comes first.
The company burned $32 million of cash for FY22 and the cash balance at 31 December 2021 was nearly $55 million. It seems Paradigm wants to solidify its capital base to progress the research initiatives outlined below.
In its last announcement on Monday, Paradigm reported it will be presenting the results of its drug development to treat the metabolic disease mucopolysaccharidoses (MPS) type I in February next year.
Paradigm's long-term goal is to develop an injectable form of pentosan polysulfate sodium (PPS) to treat MPS. Historically, PPS has primarily been used to assist with bladder pain.
In addition, Paradigm is researching the use of PPS for a range of other clinical uses, such as treating pain in patients suffering from musculoskeletal disorders.
Paradigm share price snapshot
The Paradigm share price is up 45% in the last six months and 87% over the past month. It has also gained 4% this year to date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has declined by 2% across the last six months and 7% year to date, but is up almost 7% in the past month.
The recent rapid rally in the Paradigm share price has been spurred by some positive developments. However, investors should be aware that Paradigm's net loss has been on a downward trend from FY17 to FY21.
The recent momentum has driven Paradigm's market capitalisation to around $450 million.
