Analyst David Lebowitz of Citi maintained a Hold rating on Pliant Therapeutics (PLRX – Research Report), reducing the price target to $1.50.
David Lebowitz’s rating is based on the recent developments surrounding Pliant Therapeutics, particularly the discontinuation of the Phase 2b BEACON-IPF trial for bexotegrast. The trial was halted due to a higher incidence of IPF-related adverse events in the treatment groups compared to the placebo group, despite some early signs of efficacy. This uncertainty regarding the future of bexotegrast, combined with the lack of revenue in FY24 and increased R&D expenses, has led to a cautious outlook.
Furthermore, while Pliant has a substantial cash reserve expected to fund operations for the next year, the unclear path forward for bexotegrast and the reduced probability of success for its potential launch have contributed to the Hold rating. The company’s future strategies, including possible new studies or indications for bexotegrast, remain uncertain, impacting the overall investment risk and potential returns.