• Paradigm and AVet Health sign binding terms to co-develop and license a PPS + COX-2 inhibitor oral therapy for veterinary osteoarthritis in Australia and New Zealand
• AVet will hold exclusive rights in ANZ, with Paradigm eligible for up to A$1 million in development milestones
• Paradigm to receive tiered royalties up to 20% on net sales under a 15-year licensing agreement

Paradigm Biopharmaceuticals Ltd. has signed a binding term sheet with AVet Health Ltd to co-develop and exclusively license a novel oral combination therapy comprising pentosan polysulfate sodium (PPS) and a COX-2 inhibitor for the treatment of osteoarthritis (OA) in companion animals. Under the binding terms, AVet will hold exclusive commercialisation rights for the product in Australia and New Zealand, with Paradigm eligible to receive up to A$1 million in development milestone payments. The definitive licensing agreement, once executed, will entitle Paradigm to tiered royalties up to 20% on net sales and run for 15 years post-registration with the Australian Pesticides and Veterinary Medicines Authority (APVMA). 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 A$1.0 million. AVet will contribute in-kind resources, including project management, scientific oversight, and access to Drug Master Files of commonly used COX-2 inhibitors. This collaboration enables early generation of formulation and preclinical data that could support a faster veterinary regulatory pathway and provide data for Paradigm's longer-term regulatory package in humans. The oral PPS + COX-2 inhibitor combination seeks to address unmet needs in the veterinary OA market by reducing required NSAID doses, modulating NGF expression, supporting cartilage structure, and providing an oral alternative to injectable PPS.

The veterinary agreement builds non-dilutive value for Paradigm's shareholders while leveraging the company's proprietary PPS platform, supporting commercial optionality ahead of key human data readouts in CY2026 and CY2027.