AUSTIN, Texas - Plus Therapeutics, Inc. (NASDAQ:PSTV), a clinical-stage pharmaceutical company, announced today that it has been selected for funding by the Department of Defense's office of the Congressionally Directed Medical Research Programs (CDMRP). This funding is set to support the company's clinical trial expansion for pediatric brain cancer starting in the third quarter of 2024.
The grant, part of the DoD Peer Reviewed Cancer Research Program (PRCRP), will back a Phase 1 dose escalation trial targeting Pediatric Brain Tumors, specifically high-grade glioma (HGG) and ependymoma.
The study will test the novel radiotherapeutic, Rhenium (186Re) Obisbemeda (186RNL), which is delivered through Convection Enhanced Delivery (CED), a method designed to maximize radiation dose delivery directly to CNS tumors.
Rhenium (186Re) Obisbemeda aims to provide a more targeted and potent dose of radiation, potentially improving outcomes and reducing risks compared to existing therapies. The radioisotope Rhenium-186 has been selected for its short half-life and beta energy, which is suitable for destroying cancerous tissue, along with gamma energy that allows for real-time imaging.
The funding is expected to extend Plus Therapeutics' operational cash runway into the second half of 2025 and bolsters the company's efforts in advancing its clinical development programs. In 2023, Plus Therapeutics sought approximately $7 million in grant funding and plans to apply for over $10 million in 2024.
Plus Therapeutics is currently engaged in other clinical trials, including ReSPECT-GBM for recurrent glioblastoma, which is supported by the National Cancer Institute (NCI), and ReSPECT-LM for leptomeningeal metastases, funded by a grant from the Cancer Prevention & Research Institute of Texas (CPRIT).
This announcement is based on a press release statement by Plus Therapeutics, Inc. and does not represent any endorsement of the company's claims. The forward-looking statements within the press release are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
InvestingPro Insights
As Plus Therapeutics, Inc. (NASDAQ:PSTV) secures a pivotal grant to advance its clinical trials, investors may be interested in how the company's financials stack up in real-time. According to InvestingPro data, Plus Therapeutics holds a market cap of approximately $6.97 million USD, indicating its size within the biopharmaceutical landscape. Despite a significant revenue growth of over 2000% in the last twelve months as of Q4 2023, the company is grappling with substantial challenges; it reported a gross profit margin of -97.23%, and an operating income margin of -271.14%, reflecting substantial costs outweighing revenue.
InvestingPro Tips suggest that while Plus Therapeutics is trading at a low revenue valuation multiple, analysts are concerned about its financial health. They point out that the company is quickly burning through cash and does not pay a dividend to shareholders. Moreover, analysts do not anticipate the company will be profitable this year, and net income is expected to drop. These insights could be crucial for investors weighing the potential risks and rewards of investing in a company at the forefront of pediatric brain cancer research.
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