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Investing.com - H.C. Wainwright lowered its price target on Plus Therapeutics Inc. (NASDAQ:PSTV) to $3.00 from $5.50 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has shown significant volatility, with an impressive 89% return over the last week despite falling 75% over the past year. The company’s current market capitalization stands at $18.7 million, and analysis suggests the stock is currently fairly valued.
The firm’s adjustment follows a corporate update and conference call held by Plus Therapeutics on Wednesday, where management announced plans to begin commercializing its CNSide diagnostic in the second half of 2025. The company has established a centralized testing facility in Houston and intends to launch the assay initially in Texas during the third quarter. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly - crucial factors to consider as it approaches this commercial phase.
The CNSide diagnostic demonstrated strong clinical performance in the FORESEE study presented in November 2024, achieving sensitivity of up to 92% and specificity of up to 95% for managing leptomeningeal metastasis. Approximately 11,000 CNSide tests were performed between 2020 and 2024 under previous ownership, with an average of four tests per patient.
According to company management, up to 500,000 patients annually with primary CNS tumors or CNS metastases could benefit from the diagnostic for disease monitoring and diagnosis. Plus Therapeutics is currently working with payers to secure reimbursement agreements for the test.
H.C. Wainwright projects CNSide will generate approximately $2 million in revenue in 2025, growing to $38 million by 2032, as the company plans additional rollouts across the United States throughout 2025 and 2026.
In other recent news, Plus Therapeutics has announced several significant developments. The company plans to launch its CNSide cerebrospinal fluid diagnostic platform in 2025, initially in Texas, with an estimated U.S. market opportunity of over $6 billion. The platform aims to improve the diagnosis of CNS cancer metastases with high sensitivity and specificity. Additionally, the U.S. Food and Drug Administration has cleared Plus Therapeutics’ Investigational New Drug application for REYOBIQ to treat pediatric high-grade glioma and ependymoma. The trial, funded by a $3 million grant from the U.S. Department of Defense, will enroll children aged 6 to 21 years.
Furthermore, Plus Therapeutics has restructured a $15 million equity financing to reduce potential dilution, canceling warrants that could have issued up to 1.5 billion shares. Only about 36 million shares remain issuable under the new terms. In analyst news, Ascendiant Capital raised the price target for Plus Therapeutics stock to $20.50, maintaining a Buy rating, citing confidence in the company’s drug development progress. Financially, Plus Therapeutics reported $10 million in cash and no debt in the first quarter, with approximately $18 million raised to sustain operations into 2026. Lastly, the company presented new data on its lead drug REYOBIQ for CNS cancers, showing promising safety and clinical benefits in ongoing trials.
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