Paradigm Biopharmaceuticals has entered voluntary administration. The Melbourne drug developer made the move after an interim result halted its Phase 3 trial, and now hopes to restructure its debts while assessing what the trial data can still offer.
The company told investors that its board had appointed Hayden White and Chris Pattinson of FTI Consulting as voluntary administrators. The appointment took effect on 29 September under section 436A of the Corporations Act 2001.
The board said it acted with the support of Obsidian Global GP, LLC, and that the decision followed talks with Obsidian about “the financial implications of the interim clinical trial outcome and potential restructuring options.”
Paradigm has already said its Phase 3 PARA_OA_012 trial “will not proceed as planned” because the interim efficacy result fell below the threshold required to continue. The board said Paradigm needs time to resolve “the mismatch between current liabilities payable in the short term and the inherent long-term value of the intellectual property portfolio.”
The company said the board plans to work with the administrators, Obsidian and other stakeholders on a proposal for a deed of company arrangement. A deed of this kind is an…