Stock Alert: Plus Therapeutics Stock Up 55% In Pre-Market

(RTTNews) - Shares of Plus Therapeutics Inc. (PSTV) are surging over 55% in pre-market today, after the company announced a definitive agreement to license multiple rare cancer drug product candidates from private Texas-based radiotherapeutic company NanoTx Therapeutics Inc.

The transaction terms include an upfront payment of $400,000 in cash and $300,000 in Plus voting stock. Furthermore, the company might pay up to $136.5 million in development and sales milestone payments and a tiered single-digit royalty on U.S. and European sales. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of fiscal 2020.

The licensed drug portfolio is anchored around nanoliposome-encapsulated radionuclides for several cancer targets. The lead drug asset is a chelated Rhenium NanoLiposome (RNLTM), initially being developed for recurrent glioblastoma.

Plus Therapeutics noted that it is licensing multiple BMEDA-chelated rhenium nanoliposome product candidates as part of this transaction. The lead drug asset is being developed for recurrent glioblastoma, a rare, incurable, and fatal disease.

The company is also licensing a second preclinical product candidate, a co-encapsulated doxorubicin and BMEDA-chelated Rhenium NanoLiposome (DRNLTM) for treating squamous cell carcinoma of the head and neck.

The stock has been trading in the range of $0.93 - $22.89 for the past one year, and closed Friday's trade at $1.44. PSTV is currently trading at $2.28, up $0.84 or 58.33% in the pre-market trading session.