PSTV Plunges 40% on $15M Offering: What’s Brewing in Biotech?

Summary
• Plus Therapeutics (PSTV) slumps 40.35% to $0.2804, its lowest since October 2025
• $15M equity offering priced at $0.38/unit triggers massive sell-off
• Turnover surges to 84.9M shares, 62.1% of float traded
• RSI at 33.49 and MACD below signal line confirm bearish momentum

Plus Therapeutics has plunged nearly 40% in a single session following the announcement of a $15 million public offering. The stock’s collapse has outpaced even the broader biotech sector’s volatility, with technical indicators and options data painting a grim short-term outlook. Traders are now dissecting the equity dilution’s impact and whether the company’s pipeline can justify the carnage.

Equity Offering Sparks Investor Exodus
The 40.35% intraday drop in PSTV is directly tied to the company’s $15 million public offering, priced at $0.38 per unit—well below the previous close of $0.4701. The offering, which includes 39.47 million units (each with one share and a $0.38-exercise warrant), represents a 30% discount to the prior close and a 62.1% turnover rate. Investors interpreted the aggressive dilution as a vote of no confidence in the stock’s intrinsic value, triggering a liquidity cascade. The underwriter’s over-allotment option for an additional 5.9 million shares further exacerbated fears of supply overload, compounding the sell-off.

Navigating the Bearish Playbook: ETFs and Technicals
• 200-day MA: $0.5449 (far above current price)
• RSI: 33.49 (oversold territory)
• MACD: -0.0194 (bearish divergence)
• Bollinger Bands: $0.4814–$0.6432 (current price near lower band)

The technical landscape for PSTV is unambiguously bearish. The stock trades 48.3% below its 50-day MA and 54% below the 200-day MA, with RSI in oversold territory but no immediate reversal signals. Key support levels at $0.25 and resistance at $0.50 define a tight trading range. Given the lack of options liquidity, traders should focus on ETFs like XLV (healthcare) or XBI (biotech) for sector exposure. However, PSTV’s standalone risk remains high due to its speculative pipeline and cash burn.

Options Payoff Calculation Primer: Assuming a 5% downside to $0.2664, call options would expire worthless, while puts could see limited gains. For example, a $0.30 put would yield $0.034 per share, or $3,400 for a 100-share contract. However, the absence of listed options for PSTV means no actionable derivatives play.

Backtest Plus Therapeutics Stock Performance
Plus Therapeutics (PSTV) has experienced a significant decline of approximately -40% from the beginning of 2022 until now. Let's analyze the stock's performance during this period and evaluate its potential for recovery:1. Recent Performance: The stock's value has dropped significantly, which could be due to various factors including market conditions, company-specific news, or industry trends. It is important to note that such a substantial decline can lead to increased volatility and potential trading opportunities for investors with a higher risk tolerance.2. Company Fundamentals: PSTV has been developing targeted radiotherapeutics for rare and difficult-to-treat cancers, with a focus on the ReSPECT-LM and ReSPECT-GBM clinical trials for Rhenium-186 NanoLiposome. The company has shown positive interim data from these trials, indicating potential for future growth. However, the recent funding of $17.6 million from the State of Texas will only partially offset the capital requirements for the LM program.3. Strategic Partnerships: PSTV has expanded its partnership with Medidata to accelerate enrollment and reduce costs in its Phase 2 trial of Rhenium-186 NanoLiposome for recurrent glioblastoma. This partnership is leveraging Medidata's Synthetic Control Arm platform, which has been favorably received by the FDA.4. Market Sentiment: The overall sentiment around PSTV remains positive, as evidenced by the company's ongoing clinical trials and partnerships. However, the recent significant drop in stock price may have dampened short-term investor confidence.In conclusion, while PSTV has experienced a substantial decline, the company's ongoing clinical trials, strategic partnerships, and positive interim data suggest a potential for recovery. Investors should consider the company's long-term prospects and the potential risks associated with the recent price drop before making investment decisions. It is also advisable to monitor the company's future performance closely, particularly the outcomes of its clinical trials and the impact of its partnerships on the development of its therapeutic products.

PSTV at Crossroads: Capital Burn or Catalyst?
The $15 million offering may provide short-term liquidity but risks further diluting shareholder value. With cash reserves of $16.6 million as of September 2025, the company’s ability to fund its ReSPECT trials without additional capital raises is questionable. Traders should monitor the $0.25 support level and the FDA’s feedback on Reyobiq’s trial design, expected later in 2026. Meanwhile, sector leader Johnson & Johnson (JNJ) rose 2.18%, underscoring the disparity between speculative biotech plays and established giants. Action Alert: Short-term traders should avoid long positions; consider shorting PSTV against a $0.25 breakdown or hedging with sector ETFs like XLV.