Pliant Therapeutics (PLRX) has received a new Hold rating, initiated by Cantor Fitzgerald analyst, Pete Stavropoulos.
Pete Stavropoulos has given his Hold rating due to a combination of factors surrounding Pliant Therapeutics’ recent developments. The primary reason for this rating is the company’s decision to discontinue the P2b BEACON-IPF study of bexotegrast in idiopathic pulmonary fibrosis due to safety concerns, which led to a significant drop in the company’s stock price. The study was halted after observing more IPF-related adverse events, prompting a need for a comprehensive analysis to understand the underlying causes.
Despite the setback, Pliant Therapeutics has other clinical-stage programs and a P1-ready asset in its pipeline. However, without clear guidance on which programs will be prioritized moving forward, Stavropoulos remains cautious. The company plans to conduct a detailed review of the BEACON-IPF study to determine if the adverse events were related to drug exposure or other factors, which will take approximately three months. Until there is more clarity on these issues, Stavropoulos maintains a neutral stance on the stock.
In another report released yesterday, Leerink Partners also downgraded the stock to a Hold with a $2.00 price target.