In a July 22 research note, H.C. Wainwright & Co. LLC Healthcare Analysts Sean Lee, Swayampakula Ramakanth, Ph.D. and Arthur He, Ph.D. commented that clinical-stage pharmaceutical company Plus Therapeutics Inc. (PSTV:NASDAQ), which is focused creating and developing treatments for patients fighting cancer, recently announced financial and operating results for Q2/22.
Plus Therapeutics reported that during this most recent quarter the firm did not earn any revenue and posted a net loss of $0.24 per share. The analysts noted that these results were in line with consensus estimates of no revenues with a $0.23 per share net loss. Based upon the latest information, H.C. Wainwright & Co advised that it has updated its FY/22 projections for no revenues and a net loss of $0.83 per share. H.C. Wainwright noted that with $18.1M (million) in cash on its balance sheet, Plus Therapeutics' operations are sufficiently funded into 2023.
The analyst said that Plus Therapeutics is expected to provide some updates on the status of its programs aimed at addressing recurrent glioblastoma (GBM) and leptomeningeal metastases (LM) in Q3/22 and Q4/22, respectively.
Updated data from the company's Phase 1/2 ReSPECT-GBM study of Rhenium NanoLiposome (RNL) for the treatment of recurrent GBM is expected to be presented at a medical conference in September. Previous trial data demonstrated that 186RNL was capable of delivering a highly concentrated dose of radiation at up to 740 Gy (gray) to GBM tumors without any significant side effects.
Plus Therapeutics' management has indicated that it preparing to complete the CMC work required for producing GMP-grade RNL by Q3/22 and is consulting with the U.S. Food and Drug Administration (FDA) to develop a path forward. H.C. Wainwright said it expects that the firm will submit a request for a single-arm pivotal study that could be initiated as early as Q4/22.
The company is also investigating 188RNL as a treatment for LM in a Phase 1/2 trial. H.C. Wainwright advised it expects Plus to provide an update on this study at a symposium in November which might offer greater clarity on the feasibility of using RNL for this particular indication. The analysts emphasized that "if RNL treatment is able to demonstrate a median survival beyond the five-to-seven months achieved by traditional treatments, we believe it could be a major catalyst for the stock."
H.C. Wainwright stated that though it remains optimistic about Plus's clinical programs it has made changes to its valuation metrics to account for changes in financing costs, market conditions, and expected future capital costs. Based on these factors the research firm said it is lowering its 12-month price target from $7.00 to $3.50 per diluted share.
Plus Therapeutics Inc. is a clinical-stage pharmaceutical company based in Austin, Texas focused on the development, manufacturing, and commercialization of innovative treatments for cancer and other life-threatening diseases. The firm's location offers nearby access to world-class cancer institutions and researchers and access to funding opportunities from the Cancer Prevention and Research Institute of Texas (CPRIT). The firm uses its proprietary nanotechnology platform to develop products using novel liposomal encapsulation technology to enhance the delivery, efficacy, and safety of injectable drugs.
H.C. Wainwright & Co. advised that it is reiterating its Buy rating and $3.50 price target on Plus Therapeutics Inc.
The research firm indicated that it arrived at its price target by conducting a risk-adjusted net present value (rNPV) analysis of projected future RNL royalty revenues. The modeling calculations utilized a 16.1% discount rate and a 0% terminal growth rate resulting in a rNPV of $145M. By adding Plus Therapeutics' existing cash balances of $18M to this amount the research firm was able to establish a 12-month price target of $3.54 per share, which it rounded down slightly to $3.50.
Plus Therapeutics Inc. shares trade under the symbol "PSTV" on the Nasdaq and last closed for trading at $0.53 on Friday, July 22, 2022. The company has approximately 22.2 million outstanding shares and a market cap of around $11.75 million.
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Disclosures for H.C. Wainwright & Co., Plus Therapeutics Inc., July 22, 2022
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Sean Lee, Swayampakula Ramakanth, Ph.D. and Arthur He, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Plus Therapeutics, Inc (including, without limitation, any option, right, warrant, future, long or short position). As of June 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Plus Therapeutics, Inc.
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Plus Therapeutics, Inc for non-investment banking services in the previous 12 months.
The Firm or its affiliates did not receive compensation from Plus Therapeutics, Inc for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Plus Therapeutics, Inc as of the date of this research report. The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person.
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