On Tuesday, H.C. Wainwright maintained a Buy rating and an $8.00 stock price target for Plus Therapeutics Inc. (NASDAQ:PSTV), following the company's presentation at the Society of Neuro-Oncology annual meeting, which took place from November 21-24. The presentation included an update on the Phase 1 ReSPECT-LM study, assessing the efficacy of rhenium obisbemeda (186RNL) in treating leptomeningeal metastasis (LM).
The study previously reported in August included results from 16 patients across the first four cohorts, revealing a median overall survival (mOS) of 12 months and favorable drug tolerance. The new data includes long-term follow-up on these patients and initial findings from the fifth cohort.
Despite a reduction in the top-line mOS to 9 months, it remains notably higher than the historical average of 4-6 months. As of the November 15 data cutoff, 9 out of 20 patients are still alive.
The update also highlighted that 14 of 15 evaluable patients exhibited lower or unchanged levels of circulating tumor cells (CTC) compared to baseline measurements. Moreover, a clinical neurological response was observed in 12 out of 14 patients, with 2 experiencing a response and 10 showing stable disease. The results were particularly promising for patients with primary breast or lung cancer, who made up 14 of the 20 evaluable patients.
The safety profile of rhenium obisbemeda was generally favorable, with only one instance of dose-limiting toxicity, thrombocytopenia, reported in the fifth cohort at a dose of 66 mCi. The study is continuing with patient enrollment in the sixth cohort, which is testing a dose of 75 mCi.
In light of these findings, H.C. Wainwright reiterated their positive stance on Plus Therapeutics, emphasizing the potential of rhenium obisbemeda as an effective treatment for LM and maintaining the $8 price target for the company's stock.
In other recent news, Plus Therapeutics has reported significant advancements in its Q3 2024 financials and clinical trials. Jones Trading has adjusted its outlook on Plus Therapeutics, reducing the price target on the company's shares to $10 from $32 while maintaining a Buy rating. The adjustment followed the company's third-quarter earnings announcement and reflects anticipated future capital raises.
The firm's confidence in Plus Therapeutics remains, emphasizing the market's underappreciation of the potential of the RNL platform, a central aspect of the company's clinical development efforts. Plus Therapeutics' ReSPECT-LM trial for its lead radiotherapeutic, Rhenium (186Re) Obisbemeda (RNL), has progressed to cohort 6, showing promising survival rates.
Despite a decrease in cash balance to $4.8 million, Plus Therapeutics has secured substantial grant revenue and funding avenues, including a private placement financing and grants from the Department of Defense.
The company is also collaborating with Brainlab for case planning software and received a $3 million grant for a pediatric brain cancer trial. These recent developments highlight Plus Therapeutics' progress in clinical trials and financial stability.
InvestingPro Insights
While H.C. Wainwright maintains a positive outlook on Plus Therapeutics (NASDAQ:PSTV), recent InvestingPro data reveals some financial challenges for the company. Despite a significant revenue growth of 52.63% in the last twelve months as of Q3 2024, PSTV is currently operating at a loss with a gross profit margin of -95.42% and an operating income margin of -255.95% for the same period.
InvestingPro Tips highlight that PSTV is quickly burning through cash and has short-term obligations exceeding liquid assets. This financial situation aligns with the company's focus on clinical trials, which often require substantial investment before generating revenue.
On a more positive note, PSTV holds more cash than debt on its balance sheet, which could provide some financial flexibility as it continues to develop rhenium obisbemeda. However, analysts do not anticipate the company will be profitable this year, reflecting the early stage of its product development.
For investors considering PSTV, it's worth noting that InvestingPro offers 7 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable given the company's current developmental stage and the potential impact of its clinical trial results on future performance.
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