Plus Therapeutics Expands CNSide Licensing to California, Nearing Full U.S. Coverage

What happened

Plus Therapeutics announced that its CNSide diagnostic assay is now licensed in California, expanding coverage to 48 states and over 90% of the U.S. population. This follows the national agreement with UnitedHealthcare effective September 2025, aimed at boosting CNSide's commercialization as part of the company's broader strategy. However, the DeepValue report highlights that CNSide's success hinges on measurable increases in test volumes and reimbursements, which remain unproven and critical for generating non-dilutive revenue. The company faces persistent financial challenges, including a negative cash flow of $14.5 million over nine months in 2025, going-concern disclosures, and Nasdaq listing risks due to a low stock price. While geographic expansion is a necessary step, it does not directly address the core liquidity issues, clinical execution risks for REYOBIQ, or competitive pressures in the crowded CNS oncology space.

Implication

For investors, this news reinforces the company's efforts to commercialize CNSide, which is essential for diversifying revenue streams beyond clinical trials. However, without evidence of significant test adoption or payer reimbursement under the UnitedHealthcare agreement, the expansion alone is unlikely to impact the company's strained cash position or near-term financial stability. The broader investment thesis remains heavily dependent on clinical outcomes for REYOBIQ in recurrent glioblastoma and leptomeningeal metastases, where execution risks and regulatory hurdles persist. Investors should closely monitor upcoming CNSide volume data and reimbursement rates to assess any real progress, as weak commercialization would reinforce avoidance. Overall, the stock's speculative nature and downside risks from potential dilution or delisting remain unchanged, warranting caution despite this incremental step.

Thesis delta

The expansion of CNSide licensing does not alter the core investment thesis, which remains neutral with high risk due to financial instability and clinical dependencies. It confirms progress on a key watch item for commercialization but does not shift the reliance on future clinical data or address the going-concern and liquidity overhangs that dominate the risk profile.