Join our daily newsletter At The Bell to receive exclusive market insights
Paradigm Biopharmaceuticals (ASX: PAR) has entered into a binding term sheet with AVet Health to co-develop and license a novel oral combination therapy for the treatment of osteoarthritis (OA) in companion animals.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The therapy features a novel combination of pentosan polysulfate sodium (PPS) and a COX-2 inhibitor.
MD, Paul Rennie, said the agreement provides Paradigm with a pathway to progress this promising asset in the animal health sector while remaining fully focused on its pivotal Phase 3 PARA_OA_012 clinical trial for knee osteoarthritis.
“This agreement enables early generation of formulation and preclinical data that could support both a faster veterinary regulatory pathway via the APVMA and also provide data for our longer-term regulatory package in humans,” Mr Rennie said.
“Importantly, this is being done in a capital-efficient manner, allowing Paradigm to remain fully focused on our pivotal Phase 3 clinical trial of Zilosul and ongoing commercial interest as we prepare for the interim analysis.”
Paradigm acquired the intellectual property for the PPS and COX-2 inhibitor combination in 2025 as part of a strategic expansion of its osteoarthritis portfolio.
Mr Rennie said the acquisition was a key step in progressing the formulation as an oral, non-opioid therapy for the treatment of osteoarthritis in veterinary and human health, with a focus on earlier-stage disease.
“This oral formulation represents a first-in-class approach, combining PPS, a compound with potential disease-modifying benefits, with a COX-2 inhibitor to reduce inflammation and pain. This dual-action candidate is differentiated from injectable PPS products already marketed in the veterinary space, and may offer improved convenience, safety, and compliance for long-term OA management.”
Paradigm will fund the veterinary development program through a multi-stage development plan, with Stage 1 activities, including formulation development and initial non-clinical work, estimated to cost approximately $1 million.
AVet will contribute in-kind resources, including project management and scientific oversight, and supply and access to the Drug Master File of commonly used COX-2 inhibitors in the veterinary space, as part of this initial development phase.
AVet is a veterinary pharmaceutical company which has registered more than 95 products with the Australian Pesticides and Veterinary Medicines Authority (APMVA).
Osteoarthritis remains a major cause of pain and reduced mobility in companion animals.
PAR is up 3.45% to 30.0c, Mkt cap $124.2M.
Join the discussion: See what HotCopper users are saying about Paradigm Biopharmaceuticals and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
-1200x645-380x200.jpg)
