Plus Therapeutics Plunges 39% on $15M Equity Offering Amid Volatile Biotech Sector

Summary
• PSTV shares crater 39.35% intraday to $0.2851, a 46.5% drop from its 52-week high of $2.31
• Company announces $15M unit offering at $0.38, below previous close of $0.47
• Biotech sector leader AMGN rallies 0.55% as PSTV’s collapse highlights sector fragility

Plus Therapeutics (PSTV) has plunged to a 14-month low amid a $15 million equity offering priced at $0.38, triggering immediate investor skepticism. The stock’s 39% intraday selloff—its worst in over a decade—contrasts sharply with a resilient biotech sector led by Amgen’s gains. With PSTV’s offering diluting existing shareholders and signaling capital constraints, the move underscores the sector’s precarious balance between innovation and liquidity pressures.

Dilutive Offering Sparks Investor Exodus
The 39.35% intraday collapse in PSTV shares directly follows the company’s announcement of a $15 million public offering priced at $0.38 per unit, a 20.4% discount to its previous close of $0.47. Each unit includes one share and a warrant exercisable at $0.38, creating immediate dilution for existing shareholders. The offering’s $0.38 price point—well below the stock’s 52-week low of $0.1634—signals weak investor confidence in PSTV’s ability to execute its CNS cancer pipeline. The 14.79% turnover rate and $20.2 million trading volume reflect a stampede of short-term sellers capitalizing on the offering’s negative sentiment.

Biotech Sector Splits as AMGN Outperforms
While PSTV’s collapse highlights capital-raising struggles, the broader biotech sector remains mixed. Amgen (AMGN), the sector’s top performer with a 0.55% intraday gain, demonstrates the disparity between cash-rich innovators and cash-strapped peers. PSTV’s 52-week range of $0.1634–$2.31 contrasts sharply with AMGN’s $600+ valuation, underscoring the sector’s bifurcation between established players and speculative biotechs reliant on continuous financing.

Bearish Technicals and ETF Correlation Signal Short-Side Focus
• 200-day MA: $0.5449 (well below current price)
• RSI: 33.49 (oversold territory)
• MACD: -0.0194 (bearish divergence)
• Bollinger Bands: Price at 0.2851, far below lower band of 0.4814

PSTV’s technicals confirm a short-term bearish trend, with the 200-day MA acting as a critical support level. The stock’s 115.69 volatility and 1.36 beta suggest continued downward pressure, particularly as the offering’s dilutive impact lingers. With no options liquidity available, traders should focus on shorting the stock against the XBI ETF (biotech sector proxy) or using inverse leveraged ETFs if available. The 52-week low of $0.1634 represents a 53% downside risk, while a rebound above $0.47 could trigger a 67% recovery. Key levels to monitor: 0.2559 (intraday low) and 0.3012 (intraday high).

Backtest Plus Therapeutics Stock Performance
Plus Therapeutics (PSTV) has experienced a significant intraday plunge of approximately -39% from February 22, 2022, until now. Let's analyze the stock's performance during this period and assess its recent trajectory.1. PSTV's Recent Performance: - The -39% intraday plunge from February 22, 2022, represents a substantial decline in the stock's value. - Since then, PSTV has likely faced challenges, including potential negative clinical trial outcomes, regulatory setbacks, or broader market downturns affecting biotech stocks.2. Clinical Trial Updates: - PSTV has been developing Rhenium-186 NanoLiposome (186RNL) for rare and difficult-to-treat cancers, particularly glioblastoma and leptomeningeal metastases. - The company has made progress in clinical trials, including positive interim data from the ReSPECT-GBM Phase 1 clinical trial, which showed a decrease in spinal fluid tumor cell counts in all patients. - PSTV plans to initiate a Phase 2 study by the end of 2022, which could be a catalyst for the stock if successful.3. Strategic Partnerships: - PSTV has partnered with Medidata to accelerate enrollment and reduce costs in its Phase 2 trial of 186RNL for recurrent glioblastoma. - This partnership involves the use of Medidata’s Synthetic Control Arm platform, which has been favorably received by the FDA.4. Financial Support: - PSTV has received $17.6 million in funding from the Cancer Prevention and Research Institute of Texas (CPRIT), which will support the development costs of 186RNL for leptomeningeal metastases. - This non-dilutive funding is expected to offset the company's longer-term capital requirements.5. Market Sentiment and Future Outlook: - The biotech sector is sensitive to clinical trial outcomes and regulatory news. Any negative developments could further impact PSTV's stock price. - Positive clinical trial data and strategic partnerships could potentially lead to a rebound in the stock's fortunes.In conclusion, PSTV has experienced a significant downturn from February 2022, but its recent developments in clinical trials and strategic partnerships provide a basis for cautious optimism. Investors should monitor the company's ongoing clinical trials and partnership progress, as these factors could influence the stock's future performance.

Capital Constraints and Sector Divergence Demand Immediate Action
PSTV’s 39% selloff reflects a crisis of confidence in its capital structure and pipeline execution. With the stock trading at 60% below its 200-day MA and RSI in oversold territory, the immediate outlook remains bearish unless the company can demonstrate tangible progress in its CNS cancer programs. Investors should prioritize short-term hedging strategies or avoid long exposure until the $0.38 offering’s impact stabilizes. Meanwhile, Amgen’s 0.55% gain highlights the sector’s resilience for well-capitalized players. Watch for a breakdown below $0.2559 or a regulatory catalyst to shift sentiment—either way, PSTV’s survival hinges on its ability to deliver value from its $15 million infusion.