u/MH-J3R

My read on management after the Phase 2 update and today’s earnings is that they are trying to position the company for the next stage rather than simply manage quarter to quarter. The LM study is still enrolling, but they appear to believe they can establish the optimal dose and dosing interval with a relatively small number of additional patients and still hit that milestone before year-end.

The cash position is obviously tight, and management knows it. What caught my attention is the continued reference to partnering/licensing efforts, together with the Houston office expansion. I would not take either as confirmation that a deal is coming, but taken together they suggest management is planning for a larger operating footprint and exploring ways to fund that growth without relying entirely on equity. If they believe the recent LM data has improved the value of REYOBIQ, this would be a logical time to pursue a partnership, licensing transaction or other non-dilutive capital.

CNSide also appears to be part of that broader buildout. They have exceeded the 150 million covered-lives target, billing is starting through XiFin, there is a backlog of tests to submit, and Medicare reimbursement remains a 2026 objective. Expanding the Houston presence also makes sense if they expect CNSide volumes, clinical activity and the therapeutic programs to increase over the next year.
So I think the next few months come down to execution and financing. Establish the LM dosing regimen, keep GBM moving, convert CNSide coverage into actual revenue, build out the infrastructure in Houston, and find the best way to fund the company through the next major clinical milestones.

There is obviously no guarantee that a partnership or other non-dilutive solution materializes, and an equity offering that meaningfully erodes existing shareholders is still very much on the table. I just think that is the nuclear option rather than the preferred outcome, particularly if management believes the clinical and commercial assets are worth materially more than where the market is valuing them today.

I’ve been wanting to write about the potential of AI and data mining for some time. I think the overton window is about to open for this part of the market.

Anthropic has started talking about the potential of AI and data mining, which I think opens up the conversation for companies like Plus. Given how small Plus is from a market-cap perspective, I doubt it could shift the conversation or attract enough attention on its own. Anthropic can.

Whenever I come up with a price target for this company, it seems to move higher the more research I do.

I’m excited about Reyobiq, but I honestly think it overshadows the bigger story. This is really an AI and diagnostics company first, and a biotech company second, or possibly even third.

I’m looking forward to seeing the revenue from CNSide, but also the business cases that come from the data and AI side of the company.

This fall and winter should be very interesting for Plus.

Please just get the cash burn under control while we blow this thing up.

Plus Therapeutics' CEO & President, Dr. Marc Hedrick, penned a letter to shareholders outlining the significant milestone of our company's upcoming brand evolution to Cerenome coming on August 3rd.

Read the full letter to learn more about our vision for the future of CNS oncology: bit.ly/4bwv0lH

$PSTV

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