Pliant Therapeutics downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Pliant Therapeutics (PLRX) to Sector Perform from Outperform with a price target of $4, down from $45, after the company announced that it will pause dosing and enrollment in its ongoing Phase 2b/3 IPF study of lead drug bexotegrast following recommendations by the data safety monitoring board. At best, this may be resolvable by determining the trigger and perhaps modifying dosing/population in conjunction with FDA, though that comes with some added risk and disruption, says the analyst, who adds that at worst, it may reflect “an insurmountable imbalance in toxicity or mortality, spelling the end of the program.”