Pliant Therapeutics: Hold Rating Maintained Amid Trial Discontinuation and Adjusted Financial Outlook

Analyst Edward Nash of Canaccord Genuity maintained a Hold rating on Pliant Therapeutics (PLRX – Research Report), retaining the price target of $4.00.

Edward Nash has given his Hold rating due to a combination of factors surrounding Pliant Therapeutics. The primary reason is the recent discontinuation of the BEACON-IPF Phase IIb/III trial for bexotegrast, which was halted due to a higher incidence of adverse events in the treatment group compared to the placebo. This decision led to the removal of the IPF indication from the financial model, significantly impacting the projected sales and market entry timeline.
Furthermore, while Pliant is progressing with its oncology program, the lack of proof-of-concept data means it has not been included in the current valuation model. The company’s financial outlook has been adjusted to reflect these changes, including a reduction in operating expenses due to the cancellation of the anticipated late-stage clinical trial. As a result, the Hold rating and the $4 price target are maintained, primarily based on the company’s cash per share.