Paradigm Biopharmaceuticals (ASX:PAR) has secured $14 million from institutional and sophisticated investors, significantly exceeding its initial $8 million target, as the company positions itself for a critical phase in its late-stage osteoarthritis program.
The capital raising, conducted via a placement at $0.19 per share, reflects strong demand from both existing and new investors and comes alongside the launch of a share purchase plan targeting up to a further $2 million. Eligible shareholders will be able to participate on the same terms, with the company retaining discretion to scale or expand the offer.
Managing director Paul Rennie said the level of investor support underscored confidence in the company’s Phase 3 program and its upcoming interim analysis. “The strong demand for the Placement, resulting in it being significantly upsized, reflects growing investor confidence in Paradigm’s Phase 3 program and the upcoming interim analysis,” he said.
The funding strengthens Paradigm’s balance sheet and is expected to carry the company through key clinical and regulatory milestones, including interim analysis of its PARA_OA_012 trial and preparation for a potential NDA submission. Pro forma cash is expected to reach approximately $45 million, supporting operations through to the end of 2026.
More than half of participants in the global Phase 3 trial have already been dosed, with full dosing anticipated in the second quarter of 2026 and interim results expected in the third quarter. The study is evaluating injectable pentosan polysulfate sodium in patients with knee osteoarthritis, with the primary endpoint focused on pain reduction at Day 112.
Proceeds from the raise will be directed primarily toward the Phase 3 trial, NDA-related activities, partial repayment of an existing convertible note facility, and general working capital. The company said the repayment would reduce reliance on future drawdowns and improve overall capital flexibility.
An attaching option structure linked to the capital raising is designed to provide a pathway for additional funding in the event of positive clinical outcomes, aligning potential inflows with the timing of the interim analysis. Paradigm has also flagged the possibility of pursuing non-dilutive funding through partnering or regional licensing agreements following the interim data readout.
Rennie said the company was entering a defining period. “We believe this is a critical period for the Company as we approach a major value inflection point,” he said.