Paradigm Biopharmaceuticals secures US$27M funding to advance Phase 3 knee osteoarthritis trial

Paradigm Biopharmaceuticals (ASX:PAR) has secured a US$27 million convertible note funding facility from New York-based Obsidian Global Partners to support its global Phase 3 clinical trial for injectable pentosan polysulfate sodium in treating knee osteoarthritis.

An initial tranche of US$7 million has already been drawn to fund patient recruitment, site activations, and regulatory milestones.

This funding ensures Paradigm is fully financed through several key clinical milestones, including the activation of trial sites across Australia and the US, full patient recruitment by the first half of 2026, and an interim analysis on 50% of participants expected mid-2026.

The interim readout is seen as a critical value inflection point that could de-risk the trial and attract further investment, regardless of whether it fully meets efficacy and safety endpoints.

Managing Director Paul Rennie said the facility provides flexibility and enables Paradigm to maintain momentum while preserving future capital-raising options.

The company, alongside its CRO, is on track to recruit 466 participants within 12 months, with recruitment expected to begin later this month.

Obsidian's investment reflects strong confidence in Paradigm’s late-stage development strategy. "We believe Paradigm is uniquely positioned to deliver a much-needed solution to a large, underserved market," said Ari Morris, Obsidian’s Managing Partner.