A silver lining in the current bearish decline is the opportunity to possibly enter strong stocks like Paradigm Biopharmaceuticals (ASX: PAR). PAR is one of Australia’s most talked-about biotechs of 2019 and 2020 so far.
PAR strives to alleviate the suffering and cartilage degradation of Osteoarthritis patients through its repurposed drug Zilosul. Today we will discuss why investors are rallying behind PAR more than ever and why we have put PAR in our free portfolio?
Why are investors rallying behind PAR?
Now, if we look at PAR’s share price over the last week it is not obvious that investors are flocking to the Aussie biotech. Because the share price is volatile. Meaning investors are day trading PAR. However, once the day trading ceases, we will likely see the linear growth in PAR resume.
Despite the coronavirus fear dragging PAR down, the biotech announced three positive Price Sensitive Events in February that you must know about.
Price Sensitive Event One (PSE) – PAR presented Multiple Sclerosis (MPS) poster at the World MPS in Florida – 13th February
PAR’s Multiple Sclerosis poster outlined and validated their clinical endpoints for patients suffering residual musculoskeletal. Geez, what a scientific mouthful.
Essentially PAR is taking a Patient-Centred Approach. In which they aim to understand the symptoms of residual musculoskeletal on a patient’s daily life. A PCA will make it easier for PAR to recruit patients for its Phase 2/3 clinical trial.
Thus, the presentation intended to expose their research to potential caregivers and patients with MPS.
The event was successful. Because the FDA and EMA agreed to a joint advice panel in March which PAR can gain useful guidance. Also, the presentation demonstrates how PAR is not just specialising in Osteoarthritis but also in Multiple Sclerosis.
PSE two – First patient dosed in USA under FDA approved Expanded Access program – 18th February
Paradigm dosed the first, out of ten, Ex-NFL players suffering from Osteoarthritis with Zilosul on the 18th February. This milestone marks the first patient to be treated with Zilosul in the US.
According Mitch Marrow, the first former NFL player (Carolina Panthers) who was treated with Zilosul in Australia said “The treatment was so life changing in treating my years of pain and I am thrilled more former NFL players will be treated with Zilosul in the US”.
Every biotech strives to change lives. Because when pain is gone life takes its place. Paradigm has successfully changed Mitch Marrow’s life which I’m sure is the first of many. The remining 9 patients will receive treatment across the next four weeks. PAR expects the last patient undergo treatment in mid-May.
In turn, investors saw the first patient dosage as PAR cutting the red ribbon into the US market. Thus, increasing potential revenue in the future.
PSE three- Paradigm reports positive Pre-IND meeting with US FDA – 21st February
Paradigm received informative feedback from the FDA around the injectable Zilosul treatment for Osteoarthritis.
PAR outlined in the meeting that the company is fully funded for a Phase 3 clinical trial and that IND filing in between March -June 2020 is likely.
Why we have put PAR on our portfolio?
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
The team began watching Paradigm back in September 2019 and recently added it to our free portfolio. We saw PAR as a stock with huge upside potential and little downside risk. Why do we have confidence in PAR?
When PAR came across my computer screen, I instantly noticed three things:
- PAR strives to solve an unmet medical need: The lack of effective drugs on the market that slow cartilage degradation and reduce OA pain = market opportunity
- PAR just received FDA approval = Their drugs are validated by a reputable authority + the FDA-PAR relationship could assist with clinical trial guidance
- PAR reported little cash flow, yet the share price was surging = PAR had investor confidence early on
Since then, Paradigm has bolstered its international profile, reported impressive H1 financials and began diversifying its product offering by exploring Multiple Sclerosis. To add the cherry on top PAR is jam-packed with PSE’s throughout 2020. Meaning it is likely to share price will continue to climb.
I would not personally, jump on PAR immediately. The recent volatility, caused by the coronavirus, is providing investors to get in at a nice entry point. Of course, your own research and due diligence are required before investing.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Patrick McLoughlin, Associate of YIG.