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