Paradigm Biopharmaceuticals Limited
 

PAR Details

Positive Results From Recently Conducted Clinical Trial:Paradigm Biopharmaceuticals Limited (ASX: PAR) recently announced that it met its primary end point of safety in its Pilot Phase 2a randomised, double-blinded placebo-controlled, multicentre clinical trial in participants with chronic Ross River virus (RRV) induced arthralgia (joint pain or joint stiffness) treated with injectable pentosan polysulfate sodium. This small pilot RRV study has yielded very promising safety data and key efficacy outcomes in the reduction of disease symptoms in this debilitating chronic phase of the disease.

March’19 Quarter Key Highlights:The Company reported positive secondary end?points of improved knee function (Activities of Daily Living or ADL) and pain reduction to 6 months (reduction in KOOS pain score from baseline to Day 165). Additionally, Paradigm reported the secondary end?point objective data of reduction in BML Grade, Size and Volume in the iPPS groups as measured on MRI.  

H1FY19 Financial Performance:Revenue from continuing activities increased by 25.99% pcp to $28,140. Net (loss) for the period attributable to members increased by 23.14% pcp to $4,400,269.The Net tangible asset backing per ordinary security was reported at 6.51 cents per share as compared to 4.04 cents per share in the previous corresponding period.


H1FY19 P&L Statement (Source: Company Reports)

The Osteoarthritis Market:Osteoarthritis remains the most common form of joint disease globally. In the US alone, it affects over 30 Mn adults, while in Australia, arthritis affects around 3 Mn people. In both countries, the condition is a leading cause of pain and disability among the elderly and a cause of life?years lost due to disability. The demand for a new effective treatment is significantly amplified by the opioid epidemic throughout the United States. Every day, more than 115 people in the US die after overdosing on opioids. The misuse of, and addiction to opioids is a serious national crisis that affects public health as well as social and economic welfare. The Centers for Disease Control and Prevention estimates that the total "economic burden" of prescription opioid misuse alone in the United States is $78.5 Bn a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement.

Stock Recommendation:PAR is currently trading slightly above the average of its 52 weeks high and 52 weeks low levels, which indicates bullishness. Its current ratio for H1FY19 stands at 9.20x, which is better than the industry median of 4.55x, implying a better liquidity position to address its short-term obligations than its peer group. Hence, considering the aforesaid facts and current trading level, we recommend a “Speculative Buy” rating on the stock at the current market price of $1.445 per share (up 2.847% on June 13, 2019).

 
PAR Daily Chart (Source: Thomson Reuters)
 

OncoSil Medical Ltd
 

OSL Details

OSL provides overall survival data for its PanCo study: Medical devicecompany, OncoSil Medical Ltd (ASX: OSL) recently provided Overall Survival data for its PanCo study at the American Society of Clinical Oncology (ASCO) Annual Meeting 2019 in Chicago.The PanCO study is an ongoing international multi-institutional, single arm study which is being conducted across 12 sites in Australia, UK and Belgium. The study objectives are to further investigate the safety, efficacy, feasibility and performance of the OncoSil™ device when implanted intratumorally in patients with non-resectable locally advanced pancreatic cancer.
 
March’19 Quarter Key Highlights: During the period, the Company had cash outflows from operations of $2.8 Mn, resulting in a cash balance of A$10.2 Mn on March 31, 2019.


H1FY19 P&L Statement (Source: Company Reports)

H1FY19 (ended on December 31, 2019) Financial Performance: Revenues from ordinary activities increased by 6.3% pcp to $1,938,449. Loss for the half-year attributable to the owners of OncoSil Medical Ltd increased by 13.6% pcp to $5,149,905. Net tangible assets per ordinary security was reported at 2.14 cents per share as compared to 1.25 cents per share.

Stock Recommendation:OncoSil Medical’s share generated negative YTD return of 65.71%. It is presently trading close to its 52 weeks low level, which reflects that the stock is possessing good probability that it might witness a rise moving forward.

Its current ratio for H1FY19 of the company stands at 8.51x, which is better than the prior corresponding period of 4.47x, which implies the company is in a better position to address its short-term obligations than its previous corresponding period and this might attract the attention of the market players. Also, it can be assumed that the company can make deployments towards its operations. The company is having its Assets/Equity ratio of 1.13x in H1FY19, which is lower than the H1FY18 ratio of 1.28x and, thus, it looks like that the company is less dependent on debt when it comes to funding its assets.

Hence, considering the aforesaid facts and current trading level, we recommend a “Hold” rating on the stock at the current market price of $0.060 per share.

 
OSL Daily Chart (Source: Thomson Reuters)

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