Clinical Trial Comment Sends Paradigm Share Price Plummeting

Paradigm Biopharmaceuticals [ASX:PAR] wiped 52.86% off its share price today, after a less-than-stellar update from one of its clinical trials.

What happened?

The company, which was researching potential hay fever treatments, was told the trial had not met crucial objectives. A poor result, which was reflected in the company’s share price.

Paradigm CEO Paul Rennie, while disappointed, is confident the company can move forward:

In the coming weeks, Paradigm will receive the final report and the drug master file, allowing for an independent expert to conduct an in-depth investigation, in order to determine the n
ext steps for our allergic rhinitis program.

In the short term, however, it is a substantial stumbling block for the company.

Where to from here for ASX:PAR?

Paradigm has two other clinical trials being conducted at the moment, both due in the third quarter, as well as a peer-review publication detailing the effect of pentosane polysulfate sodium (PPS) in osteoarthritis, focusing on bone marrow lesions (bone marrow edema).

Paradigm will no doubt be looking for positive signs from each of these milestones in the months ahead. Whether today’s failure can be salvaged into a positive outlook will be a priority for the company moving forward.

Regards,

Ryan Clarkson-Ledward,
Junior Analyst, Money Morning


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:


Money Morning Australia