Plus Therapeutics (PSTV) Stock Rockets On Q2 Progress

Plus Therapeutics PSTV Stock News

Plus Therapeutics Inc (NASDAQ: PSTV) is rocketing in the market this morning, trading on gains of well over 130% early on. The gains come after the company released its second quarter report. However, some questions are being raised. In particular, Vir2lBoy on StockTwits wrote:

$PSTV I don’t hold any shares in this one but how can it go up when average net loss is higher then the last Q or did I read this article wrong :…

In the post, the author linked to the company’s press release surrounding the filing here. So, what is it that has the stock rocketing? Here’s what’s going on:

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PSTV Stock Is Rocketing On Strong Progress Toward Commercialization

As Vir2lBoy mentioned in his comment, net loss has climbed. During the quarter, Plus Therapeutics said that net loss from operations was $2.3 million or $5.12 per share. Total net loss, accounting for discontinued operations, came to $9.1 million, or $20.67 per share. Operating cash burn came in at $1.6 million, and the company ended the quarter with $4.5 million in cash and cash equivalents.

So, it’s clearly not the financial data that has the investing community buzzing. So, what is it that has investors so excited about PSTV?

It has a lot to do with the company’s DocePlus. This is the lead drug in the company’s pipeline, DocePlus. The treatment is being developed as a potential option for non small cell lung cancer, and is progressing well.

In the quarter, the company completed and published Phase 1 data, received orphan drug designation from the FDA, and more. Importantly, the company received feedback from the FDA suggesting that a 505(b)(2) new drug application is an acceptable regulatory approach.

As a result of all of the positive news, the company said that it plans on submitting Phase 2 clinical trial protocol for the drug to the US. It is also working to find commercial and manufacturing partners for the drug as a New Drug Application may come down the line relatively soon.

The company also said that it is seeking partners for DoxoPLUS. The DoxoPLUS candidate is a generic injectible doxorubicin that can be used for multiple cancer types.

In a statement, Dr. Marc Hedrick, President and CEO at PSTV, had the following to offer:

Plus Therapeutics is committed to executing its ‘PLUS’ corporate strategy to marry effective and well described active pharmaceutical agents with novel delivery technology to make better compounds for patients. Advancing our DocePLUS product candidate and nanotechnology platform via a virtual development approach combining lean operations and efficient capital deployment are critical to our future success.

So, Why Is The Stock Flying?

The answer is simple. Plus Therapeutics is making strong headway in the development of its core assets. As a result, the heavily shorted stock has started to turn the page and go green.

As we know, when heavily shorted stocks go green, a short squeeze can be triggered. In this particular case, a short squeeze seems to be taken place. Driven by strong progress on the clinical development side of the coin, PSTV is enjoying a dramatic run for the top as short sellers abandon ship!

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