Is Plus Therapeutics (PSTV) Stock a Buy?

Plus Therapeutics Inc (NASDAQ: PSTV) is having a painful start to Wednesday’s session, falling more than 7% in the premarket. While that may be concerning to some, the fact of the matter is that, for many, it’s setting the stage for the opportunity to get in on serious gains ahead at a discount. 

In fact, there’s a strong argument that PSTV stock is setting up for more massive gains. Here’s why:

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A Recent MSA Sets the Stage for Growth

Recently, Plus Therapeutics announced that it met two significant milestones on its way to cGMP manufacturing of Rhenium-186 NanoLiposome, also known as 186 RNL. One of these major milestones was the fact that it has entered into a Master Services Agreement, or MSA, with IsoTherapeutics Group LLC. 

As part of the agreement, the two will work together to develop, manufacture, and supply Rhenium-186 isotopes for Plus Therapeutics’ 186RNL investigational radiotherapeutic. 

So, what’s the big deal?

Well, the agreement will help to make sure that Rhenium-186 used for the treatment meets FDA requirements for use in late-stage clinical trials. That’s huge news. After all, why would PSTV be wasting its time entering a partnership like this if these late-stage clinical trials weren’t expected to take place. 

So, what’s the other milestone?

PSTV also announced that it completed the technology transfer of analytical test methods with Piramal Pharma Solutions surrounding 186RNL. This is important because PSTV has an agreement with Piramal Pharma to develop, manufacture, and supply the company with its 186RNL intermediate drug product. 

When this news hit yesterday, the stock rocketed, gaining nearly 100% by the opening bell. Unfortunately, those gains tapered off throughout the day and in the after-hours/pre-market session. Nonetheless, the stock is still sitting a respectable 17% higher than it was on Monday’s close. 

Are the Gains Over?

Before I get into making any predictions, I want to say that I do this part of my job for fun. I have no crystal ball that lets me look into the future and I can’t say for certain that anything will happen. Ms. Cleo isn’t here! Of course, you should do your own research and formulate your own opinion. 

With that said, I’m expecting big things out of Plus Therapeutics in the near, mid, and long-term future. 

The fact is that its 186RNL has shown real promise, and reaching these recent milestones is a massive win for investors. Now, the company has what it needs in order to move forward with clinical trials; clinical trials that have already been approved by the FDA. 

At the same time, PSTV is gaining the support of the social community, which has real, very positive implications. Granted, some are talking about a short squeeze, which simply doesn’t make sense because there are minimal short positions on the stock, but the hype is good for the holder. 

That’s especially the case when you consider the fact that Plus Therapeutics stock has a tiny float. 

There are just over 15 million shares available to the public. Yesterday’s volume was over 133 million shares. That means that those 15 million shares traded hands nearly 100 times a piece yesterday. 

As more demand continues to pile into a stock representing a company with significant promise in a high value indication, the potential for this thing to soar through the roof is incredible. 

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The Bottom Line

The bottom line here is that Plus Therapeutics seems to be making all of the right moves at the right times, and investors are starting to take note. As this trend continues, the extreme excitement has the potential to give the bulls what they’re looking for in the short and mid-term. In the long run, the company’s work is likely to speak for itself considering its overwhelmingly promising pipeline! 

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