Stock price soars over 300% overnight! Plus Therapeutics (PSTV.US) lung cancer patient drug for meningeal metastasis obtains FDA orphan drug designation.

Plus Therapeutics (PSTV.US) announced on Thursday that its treatment for leptomeningeal metastasis in lung cancer patients, Rhenium (186Re) Obisbemeda, has received orphan drug designation from the US Food and Drug Administration (FDA). Boosted by this news, the company's stock price closed up 311.43% on Thursday, with further gains of over 50% in after-hours trading. Leptomeningeal metastasis refers to cancer cells spreading to the membrane covering the brain and spinal cord, and the orphan drug designation granted to Rhenium (186Re) Obisbemeda specifically targets this indication. The purpose of FDA granting orphan drug designation is to provide financial incentives for developers of drugs targeting rare diseases and conditions. In addition to tax credits for clinical trial expenses and waiver of marketing application user fees, developers can also receive seven years of exclusive market rights in the US. Plus Therapeutics stated that this designation was obtained after the company recently completed early-stage single-dose trials.