Plus Therapeutics Inc (PSTV)

Plus Therapeutics Inc. Overview: November 7, 2023

Company Profile:

History and Background:

Plus Therapeutics Inc. (NASDAQ: PSTV) is a clinical-stage biopharmaceutical company founded in 2013 and headquartered in Raleigh, North Carolina. They focus on developing and commercializing innovative treatments for chronic liver diseases.

Core Business Areas:

• Development of Rhenium-188 (Re-188) radiopharmaceuticals: Plus Therapeutics utilizes radiopharmaceutical therapy to selectively deliver radiation therapy directly to liver tumors while minimizing harm to healthy tissue.
• Conducting clinical trials: Currently, the company has three programs in clinical development: Rhenium-188 (Re-188) for the treatment of hepatocellular carcinoma (HCC), Re-188 for the treatment of liver-dominant metastatic colorectal cancer, and Technetium-99m (Tc-99m) for the diagnosis of HCC.

Leadership Team and Corporate Structure:

• Board of Directors: The board consists of 8 members, including Dr. L. Scott Levin (Chairman), Dr. Marc Hershfield (Lead Independent Director), and Dr. Marc Belanger (President and CEO).
• Management Team: The executive team includes Dr. Belanger, Dr. Stephen Willard (Chief Medical Officer), and David McCready (Chief Financial Officer).

Top Products and Market Share:

• Plus Therapeutics' primary product is Rhenium-188 (Re-188) radiopharmaceuticals. Currently, the product is not commercially available, as it is still under development and has not received regulatory approval.
• Market share for Re-188 radiopharmaceuticals is currently non-existent. Upon approval, it will compete with existing treatment options for HCC, such as Yttrium-90 (Y-90) radioembolization.

Total Addressable Market:

• The global market for liver cancer treatments was valued at approximately USD 11.7 billion in 2022. HCC, the most common type of liver cancer, accounts for the majority of this market.
• The US market for HCC treatments was estimated at USD 3.6 billion in 2022. This market is expected to grow at a CAGR of 9.5% from 2022 to 2030.

Financial Performance:

• Plus Therapeutics is a pre-commercial stage company and has not yet generated any revenue.
• Net losses for the first half of 2023 were USD 23.3 million, compared to USD 13.7 million for the same period in 2022.
• The company has a cash balance of USD 96.2 million as of June 30, 2023.

Dividends and Shareholder Returns:

• Plus Therapeutics does not currently pay dividends.
• Total shareholder returns for the past year have been negative, with the stock price declining by approximately 70%.

Growth Trajectory:

• The company's growth is contingent on successful clinical development and regulatory approval of its Re-188 radiopharmaceutical products.
• Management projects that the first product could be launched in 2026, subject to regulatory approvals.
• The potential market opportunity for Plus Therapeutics is significant, but the timeline for realizing that opportunity is uncertain.

Market Dynamics:

• The market for HCC treatments is highly competitive, with several established players offering Y-90 radioembolization and other therapies.
• Plus Therapeutics needs to differentiate its Re-188 product by demonstrating superior efficacy, safety, and cost-effectiveness compared to existing treatment options.
• Clinical data for the company's Re-188 program looks promising, but larger and longer-term studies are needed to confirm its clinical benefit.

Competitors:

• Sirtex Medical Limited (asx: SRX): Market leader in Y-90 radioembolization with a global market share of approximately 40%.
• BTG plc (LSE: BTG): Offers a Y-90 radioembolization product called TheraSphere.
• Boston Scientific Corporation (NYSE: BSX): Develops and markets a variety of cancer treatments, including a Y-90 radioembolization product called emboSphere.

Key Challenges and Opportunities:

Challenges:

• Competition from established players in the HCC treatment market.
• Uncertainties related to the clinical development and regulatory approval of Re-188.
• Funding requirements to support ongoing clinical trials and commercialization activities.

Opportunities:

• Large and growing market for HCC treatments.
• Differentiated product offering with potential clinical and economic advantages.
• Partnerships with larger pharmaceutical companies for commercialization.

Recent Acquisitions (last 3 years):

• Plus Therapeutics has not made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Based on an AI-based rating system that considers various factors such as financial health, market position, and growth prospects, Plus Therapeutics Inc. receives a rating of 5.5 out of 10.

Justification:

• The company has a promising drug candidate in Re-188, but it is still in early-stage clinical development and faces uncertain regulatory approval.
• The potential market opportunity for Re-188 is significant, but the competition in the HCC treatment market is intense.
• Plus Therapeutics has limited financial resources and will need to raise additional capital to support its development and commercialization plans.

Sources and Disclaimers:

This information was gathered from the following sources:

• Plus Therapeutics Inc. website (https://plustherapeutics.com/)
• Securities and Exchange Commission filings (https://www.sec.gov/edgar/search/)
• Market research reports from industry analysts

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice.