Hold Rating on Pliant Therapeutics Amid Trial Discontinuation and Safety Concerns

H.C. Wainwright analyst Ed Arce has maintained their neutral stance on PLRX stock, giving a Hold rating today.

Ed Arce’s rating is based on the recent discontinuation of Pliant Therapeutics’ BEACON-IPF Phase 2b trial, which was halted due to an imbalance in adverse events between the treatment and placebo groups. The decision to stop the trial was influenced by a recommendation from the Data Safety Monitoring Board and an external expert panel, highlighting concerns over the safety of bexotegrast in treating idiopathic pulmonary fibrosis (IPF). While there were early signs of efficacy in terms of forced vital capacity, the unexpected lower rate of adverse events in the placebo group raised significant safety concerns.
Despite these issues, there is potential for bexotegrast to be reconsidered for IPF or other diseases, pending a thorough analysis of the collected data. Pliant Therapeutics plans to complete this review in about three months, which will guide future development decisions. The possibility of exploring additional indications, such as primary sclerosing cholangitis, remains open depending on the findings. Given these uncertainties and the need for further data, Ed Arce has maintained a Hold rating on PLRX shares.