H.C. Wainwright analyst Ed Arce has maintained their neutral stance on PLRX stock, giving a Hold rating on February 11.
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Ed Arce has given his Hold rating due to a combination of factors surrounding the current situation with Pliant Therapeutics. The primary concern revolves around the BEACON-IPF Phase 2b trial for bexotegrast, where a recommendation from the Data Safety Monitoring Board (DSMB) has led to a pause in enrollment and dosing. Pliant has convened an expert panel to review unblinded data to understand the DSMB’s concerns, which suggests a high level of uncertainty about the drug’s safety and efficacy.
While the market reacted positively to the news of assembling an expert panel, the lack of clarity on the potential findings and future course of the trial contributes to the Hold rating. Ed Arce also withholds a price target due to the significant uncertainty surrounding Pliant’s primary asset. Potential risks include any determination that bexotegrast is unsafe, while upside would involve a resolution of the safety concerns and resumption of the trial.
According to TipRanks, Arce is a 5-star analyst with an average return of 18.6% and a 48.50% success rate. Arce covers the Healthcare sector, focusing on stocks such as Arcturus Therapeutics, Akero Therapeutics, and Acurx Pharmaceuticals.
In another report released on February 11, Canaccord Genuity also downgraded the stock to a Hold with a $4.00 price target.