Plus Therapeutics(PSTV.US) cancer drug for lung cancer patients with leptomeningeal metastasis receives FDA orphan drug designation, leading to a 300%+ stock surge overnight.

Plus Therapeutics(PSTV.US) announced on Thursday that its treatment for brain metastases in lung cancer patients, Rhenium(186Re)Obisbemeda, has been granted orphan drug status by the U.S. Food and Drug Administration. The company's stock price surged 311.43% on Thursday and continued to rise over 50% in after-hours trading. Rhenium(186Re)Obisbemeda is designed to treat brain metastases, which refers to the spread of cancer cells to the membrane that covers the brain and spinal cord. The orphan drug designation was granted for this indication. The FDA grants orphan drug status to provide financial incentives for developers of drugs for rare diseases and conditions. In addition to tax credits for clinical trial expenses and waivers of user fees for marketing applications, developers can receive seven years of U.S. market exclusivity. Plus Therapeutics said the designation was granted after the company recently completed an early single-dose trial.