Needham analyst Joseph Stringer lowered the firm’s price target on Pliant Therapeutics (PLRX) to $10 from $38 and keeps a Buy rating on the shares. The analyst cites the company’s Friday announcement that following a prespecified DSMB – Data Safety Monitoring Board – data review, Pliant has paused all dosing and enrollment in the bexotegrast Phase 2b BEACON-IPF trial. Very few details were provided in the press release, and while its not clear what prompted the DSMB to recommend the pause, the most likely scenario is a safety/futility issue, the firm states. Needham notes that with the stock down 60% after the statement, the market is pricing in a worst-case scenario – trial termination due to safety/futility.
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