Background
- Paradigm Biopharmaceuticals Limited (Paradigm or the Company) is a clinical stage biopharmaceutical company, focusing on repurposing existing molecules for new indications with unmet clinical needs
- Based in Melbourne, Paradigm’s current focus is on developing and commercialising pentosan polysulfate sodium (PPS) for the treatment of arthralgia driven by injury, inflammation, aging, degenerative disease, infection, or genetics
- Paradigm engaged AE as an independent corporate advisor for a capital raise primarily to fund the Company’s osteoarthritis (OA) and mucopolysaccharidosis (MPS) clinical trial programs, as well as for new drug applications, working capital, costs of offer, further preclinical studies and possibly further intellectual property acquisitions
Our role
- Maximising competitive tension around the commercial parameters within which the company would be prepared to pursue a capital raise
- Review and assess all relevant regulatory framework and decide the most appropriate deal structure to ensure the Company can successfully raise capital without pushback from regulators
- Assisting the company with preparation and marketing of investor roadshows, briefings, presentations and public announcement
- Discussions with existing shareholders and outreach to AE’s extensive institutional investor network to determine willingness to partake in chosen structure
- Advised on the most appropriate method of funding including valuation, structure, and amount to be raised
- Funding strategy and timetable
Outcomes
- Paradigm successfully secured $77.9m in capital through a placement and subsequent entitlement offer in May 2019
- The placement and entitlement offer will allow Paradigm to add several new institutional investors onto its register, providing the company with several loyal, long-term investors
- The funds will be used to push the Company’s OA and MPS programs through to the end of their pivotal phase-3 studies and new drug applications. Their high cash balance will also put the Company in a strong negotiating position on commercial transactions, as they look into further acquisitions of Intellectual Property to broaden their portfolio