The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price was on form again on Thursday.
The biopharmaceutical company’s shares pushed 4% higher to $2.93 on the day of its annual general meeting.
This latest gain means the Paradigm share price is now up 196% from 99 cents at the start of the year.
Why did the Paradigm share price push higher today?
This morning Paradigm released its annual general meeting presentation which reminded investors of the massive market opportunity its ZILOSUL drug has.
ZILOSUL is the brand name of its repurposing of Pentosan Polysulfate Sodium (PPS). This is an FDA-approved drug that has been used safely for treating inflammation for over sixty years.
Paradigm is focusing on repurposing PPS to treat osteoarthritis (OA). This is a market with over 31 million sufferers in the United States alone.
Things look very promising for ZILOSUL. Its Phase 2b trial in OA successfully met primary, secondary, and exploratory endpoints.
The company is now planning to file an Investigational New Drug Application (IND) with the FDA for a phase 3 clinical trial in early 2020. Which means there is the potential for a trial readout and regulatory submission in the United States as early as 2021.
Will it be worth the wait?
As you can see on the chart below, the company estimates that ZILOSUL has the potential to generate significant revenues.
Should you invest?
At the last count, Paradigm had 193,156,511 shares on issue. This means that it has a market capitalisation of approximately $570 million today.
Clearly if it can win even a 10% share of the U.S. market, its shares would be worth many multiples more than they are today.
This could make it worth considering if you’re a patient and long-term focused investor. Especially given its cash balance of ~$75 million. These funds should comfortably see Paradigm through to a commercial launch, if it gets that far.
However, I would suggest you limit an investment to just a small part of your portfolio. After all, there’s still a lot of work to do before that is even a possibility.
In addition to Paradigm, I think Clinuvel Pharmaceuticals Limited (ASX: CUV) and Medical Developments International Ltd (ASX: MVP) are worth watching closely as well.
The post The Paradigm Biopharmaceuticals share price is up 196% in 2019 appeared first on Motley Fool Australia.
Alternatively, take a look at these exciting growth shares which have been tipped as market beaters in 2020.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Medical Developments International Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019