AUSTIN – Plus Therapeutics, Inc. (NASDAQ:), a clinical-stage pharmaceutical company, announced its participation in the upcoming 2024 Congress of Neurological Surgeons (CNS) Annual Meeting. The event will take place from September 28 to October 2 in Houston, Texas, where the company will present data from its Phase 2 trial concerning the treatment of recurrent glioblastoma (rGBM).
The presentation, scheduled for Monday, will detail the use of Rhenium (186Re) Obisbemeda, a novel injectable radiotherapy, in combating central nervous system (CNS) cancers. Dr. John Floyd from UT Health Science San Antonio will deliver the update on the ReSPECT-GBM trial.
Glioblastoma, a highly lethal brain cancer, affects roughly 15,000 U.S. patients annually. With a dire prognosis, the average life expectancy post-diagnosis is under 24 months. Current treatments offer limited survival benefits and come with significant side effects. Rhenium (186Re) Obisbemeda aims to deliver targeted high-dose radiation to CNS tumors, potentially reducing risks associated with non-targeted treatments and improving patient outcomes.
The treatment’s development is supported by an award from the National Cancer Institute (NCI) and a three-year $17.6M grant from the Cancer Prevention & Research Institute of Texas (CPRIT). Plus Therapeutics is also investigating the therapy’s use for leptomeningeal metastases in the ReSPECT-LM clinical trial.
Convection Enhanced Delivery (CED), the method used to administer Rhenium (186Re) Obisbemeda, involves minimally invasive surgery and direct catheter placement into the brain tumor, facilitating targeted drug delivery.
The company, based in Austin and San Antonio, Texas, is dedicated to developing targeted radiotherapeutics for difficult-to-treat cancers of the CNS. It has established strategic partnerships for the development, manufacturing, and potential future commercialization of its products.
This news is based on a press release statement and contains forward-looking statements about the company’s research, clinical trials, and product candidates. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, Plus Therapeutics, a medical device company, faces potential delisting from The Nasdaq Stock Market due to an equity shortfall. The company failed to meet Nasdaq’s minimum stockholders’ equity requirement and has received a subsequent letter from Nasdaq indicating non-compliance. Despite this, Plus Therapeutics plans to appeal the determination.
On the revenue front, Plus Therapeutics reported a Q2 revenue of $1.3 million, falling short of Ascendiant Capital’s anticipated $1.6 to $1.7 million range. This led the firm to revise its 2024 revenue estimates for the company from $7 million to $5 million. The company also reported a net loss of $7.6 million, which was higher than the estimated losses.
In other developments, Plus Therapeutics shareholders elected six members to the Board of Directors and approved the fourth amendment and restatement of the company’s 2020 Stock Incentive Plan. The company also announced the results of its ReSPECT-LM trial, indicating that rhenium obisbemeda was safe and well-tolerated.
Plus Therapeutics reported a solid financial position with a cash and investments balance of $8.4 million and anticipated grant revenue of $6 million to $7 million for the year. The company also secured a $3 million award from the U.S. Department of Defense for a pediatric brain cancer trial. These are some of the recent developments for Plus Therapeutics.
InvestingPro Insights
As Plus Therapeutics, Inc. (NASDAQ:PSTV) prepares to present its Phase 2 trial data at the CNS Annual Meeting, investors and industry observers are closely monitoring the company’s financial health and stock performance. According to InvestingPro, PSTV holds more cash than debt on its balance sheet, which could provide some financial flexibility as it continues its clinical trials. Nevertheless, the company is quickly burning through cash, which is a critical factor to consider given the high costs associated with developing novel treatments.
InvestingPro Data shows a market cap of $9.38 million USD for PSTV, underscoring the company’s position as a smaller player in the pharmaceutical industry. The revenue growth for the last twelve months as of Q2 2024 stands at an impressive 113.2%, highlighting a significant increase that may reflect the company’s potential to scale its operations. However, it is important to note the gross profit margin during the same period was -96.46%, indicating the company’s current costs far exceed its revenue, which is not uncommon in the biotech industry during the development phase.
Investors may also find the InvestingPro Tips revealing that two analysts have revised their earnings downwards for the upcoming period, suggesting that there may be concerns about the company’s near-term financial performance. Moreover, analysts do not anticipate the company will be profitable this year. Despite these challenges, PSTV has shown a significant return over the last week, with a 17.78% price total return, which may interest traders looking for short-term movements.
For those interested in further analysis and additional InvestingPro Tips, there are 11 more tips available on InvestingPro, providing in-depth insights into Plus Therapeutics’ financial and stock performance.
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