On 25 October 2018, Paradigm Biopharmaceuticals (ASX: PAR) announced that it has entered into a Heads of Agreement regarding a strategic partnership with the New York, USA, based retired professional sporting network organization, the Pro Players’ Elite Network (PPEN). Following this news, the share price of the company increased by 8.904 percent as on 25 October 2018.
The agreement will facilitate both the companies by identifying and assisting elite US sportspeople that are having knee and joint pathologies and treat them with injectable Pentosan Polysulfate Sodium (iPPS). According to the Paradigm, it is a logical step forward, as this agreement will provide the company a great opportunity to not only treat people in need but to gain significant exposure and promotion of the Company and iPPS in the US. Paradigm Biopharmaceuticals can get benefit from PPEN’s extremely large network of ex-NFL Player.
By treating 125 patients in Australia, Paradigm Biopharmaceuticals was able to produce great TGA SAS results which reported an average of 51.5% pain reduction for knee OA pain of patients and now the company is expecting that they will be able to replicate the results in the US as well. Both Paradigm and the PPEN share the same desire in treating patients in the US given the scope of the opioid epidemic and the lack of safe, effective non-opioid pain treatments and both the parties are acutely aware of the proportionately high number of retired sportspeople that are suffering from chronic joint pain.
Under the agreement, the responsibility of PPEN will be to identify patients and assist in the recruitment of patients as well as assist with any associated media surrounding high profile US sportspeople that are treated with iPPS. The company is planning to utilize its established contacts and relationships with various NFL retired players and other elite sportspeople organizations, including the NFL Retired Players Association.
On 25 October 2018, Paradigm Biopharmaceuticals (ASX: PAR) also announced that it has successfully received commitments for an A$9 million placement to professional, institutional and sophisticated investors across Australia and Asia, including existing shareholders so that the company could maintain its excellent stretch of results and continue its strong run towards its next milestone – a phase 3 clinical trial program. The proceeds from the placement will also be used to establish a presence in the US and to fund a “compassionate use program” involving the US Pro Players Elite Network.
In the last six months, the share price of the company increased by 94.67 percent from $0.375 to $0.730 as on 22 October 2018. PAR’s shares traded at $0.795 with a market capitalization of circa $92.18 million as on 25 October 2018 (AEST 4:00 PM).
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