Micro-, Small-Cap Firms Dominate Market Rally

1. Plus Therapeutics Inc. (NASDAQ:PSTV)

Plus Therapeutics soared by 311.43 percent on Thursday to finish at $1.44 apiece as investors gobbled up shares in the company following the Food and Drug Administration (FDA)’s grant of Orphan Drug Designation (ODD) to Rhenium Obisbemeda for the treatment of leptomeningeal metastases (LM) in patients with lung cancer.

The FDA grants ODD status to an investigational drug or biologic intended to prevent, diagnose, or treat a rare disease or condition affecting fewer than 200,000 people in the United States.

According to PSTV, ODD provides certain benefits to drug developers, including seven potential years of market exclusivity, tax credits for qualified clinical trials, and exemptions from significant regulatory fees, including the Prescription Drug User Fee Act (PDUFA) charge of $4.3 million in 2025 and the Pediatric Research Equity Act (PREA) requirements.

While we acknowledge the potential of PSTV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSTV but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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