AUSTIN, Texas - Plus Therapeutics, Inc. (NASDAQ:PSTV), a clinical-stage pharmaceutical company, has teamed up with SpectronRx, a radiopharmaceutical contract developer and manufacturer, to produce an advanced radiotherapy for central nervous system (CNS) cancers. The Manufacturing Services Agreement (MSA) announced today focuses on Rhenium (186Re) Obisbemeda, designed to treat CNS cancers, including leptomeningeal metastases and recurrent glioblastoma.
The partnership is strategic as Plus Therapeutics prepares for late-stage clinical trials in 2025 and anticipates commercial-level product demand. SpectronRx will produce late-stage clinical and commercial supplies of Rhenium (186Re) Obisbemeda using its extensive facilities, which span over 170,000 sq ft and employ 150 staff across five locations.
Rhenium (186Re) Obisbemeda, currently under evaluation in clinical trials, is an injectable radiotherapy that aims to deliver targeted high-dose radiation to CNS tumors. This treatment has the potential to improve patient outcomes by providing a more focused and potent radiation dose, reducing off-target risks compared to existing therapies. The radioisotope Rhenium-186 is particularly suited for CNS therapeutic applications due to its short half-life and dual capabilities for cancer tissue destruction and real-time imaging.
The collaboration aims to bolster the supply chain for Plus Therapeutics, ensuring the demands of forthcoming clinical trials and future commercial needs are met efficiently. This agreement is a critical step in expanding the reach and impact of Rhenium (186Re) Obisbemeda.
Plus Therapeutics is advancing a pipeline of product candidates with lead programs in recurrent glioblastoma (GBM) and leptomeningeal metastases (LM). The company has built a supply chain through strategic partnerships to support the development, manufacturing, and potential commercialization of its products.
SpectronRx, with its expertise in nuclear medicine manufacturing, aims to further its mission of advancing nuclear medicine by collaborating with Plus Therapeutics. The company provides radiopharmaceutical development and manufacturing services to 29 countries, working with over 31 pharmaceutical companies.
This information is based on a press release statement from Plus Therapeutics and SpectronRx.
In other recent news, Plus Therapeutics has been granted an extension by Nasdaq to meet the minimum stockholders' equity requirement, as per the latest 8-K filing with the U.S. Securities and Exchange Commission. The company's failure to meet the equity requirement previously and the uncertainty regarding future compliance highlight the ongoing financial challenges it faces. In parallel, Plus Therapeutics announced progress in its ReSPECT-GBM Phase 1/2 clinical trial for recurrent glioblastoma. The trial's extension to new sites is expected to support the further development of Rhenium (186Re) Obisbemeda as a treatment option.
In financial news, 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 Ascendiant Capital to revise its 2024 revenue estimates for the company from $7 million to $5 million. In governance 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 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. Plus Therapeutics secured a $3 million award from the U.S. Department of Defense for a pediatric brain cancer trial. These are recent developments for Plus Therapeutics.
InvestingPro Insights
As Plus Therapeutics (NASDAQ:PSTV) forges ahead with its strategic partnership with SpectronRx, investors should consider some key financial metrics that shed light on the company's current position. According to InvestingPro data, Plus Therapeutics has a market capitalization of $8.02 million, reflecting its status as a small-cap biopharmaceutical company focused on developing innovative treatments for central nervous system cancers.
The company's revenue for the last twelve months as of Q2 2024 stood at $5.51 million, with a notable revenue growth of 113.2% over the same period. This growth aligns with the company's efforts to advance its pipeline and prepare for late-stage clinical trials. However, it's important to note that the company is currently operating at a loss, with a negative gross profit of $5.31 million and an operating income margin of -256.04% for the same period.
InvestingPro Tips highlight some critical aspects of Plus Therapeutics' financial health. The company holds more cash than debt on its balance sheet, which could provide some financial flexibility as it moves towards late-stage clinical trials and potential commercialization. However, it's also noted that the company is quickly burning through cash, a common characteristic of biopharmaceutical companies in the development stage.
Another InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year, which is consistent with the significant investments required for clinical trials and the partnership with SpectronRx. This information underscores the importance of the company's strategic moves to secure manufacturing capabilities for future demand.
For investors considering Plus Therapeutics, it's worth noting that InvestingPro offers 11 additional tips that could provide further insights into the company's financial position and market performance. These additional tips could be particularly valuable for understanding the potential risks and opportunities associated with investing in a clinical-stage pharmaceutical company like Plus Therapeutics.
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