Clinical-stage pharmaceutical company Plus Therapeutics (NASDAQ: PSTV) has announced that the US Food and Drug Administration (FDA) has granted the company orphan drug designation, sending its stock skyrocketing.
The designation is for the company’s lead investigational drug Rhenium NanoLiposomes (RNL) which is used to treat patients with recurrent glioblastoma.
The FDA grants orphan designation to support the development of medicines to treat rare conditions.
Because they treat rare conditions, the drugs would not be profitable to produce without government assistance, and the designation means that the company will be provided with certain benefits including the exemption of fees and tax benefits.
“Receiving FDA orphan drug designation and approval to advance the trial into Cohort 6 are key milestones in our development of this treatment for recurrent glioblastoma,” said Dr Marc Hedrick, President and Chief Executive Officer of Plus Therapeutics.
PSTV stock price…
As mentioned, after the announcement, shares of Plus Therapeutics have soared premarket and are currently trading at $3.12 per share, up 27.35%. Its share price has gained 43% in the last three months.