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Pliant Therapeutics (PLRX)
NASDAQ:PLRX

Pliant Therapeutics (PLRX) AI Stock Analysis

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Pliant Therapeutics

(NASDAQ:PLRX)

Rating:37Underperform
Price Target:
Pliant Therapeutics is currently facing substantial financial difficulties, with zero revenue in 2024 and ongoing net losses. These challenges are reflected in the low financial performance score. Technical analysis shows bearish trends but hints at a potential short-term rebound. Valuation remains poor due to a negative P/E ratio and lack of dividends. Additionally, a significant workforce reduction indicates further strategic challenges. Overall, these factors contribute to a low stock score, indicating high risk and limited appeal for potential investors.
Positive Factors
Drug Development
PLN-101095 demonstrated a 50% partial response rate at the highest dose cohort, indicating promising anti-tumor activity.
Financial Strategy
The company's strategic realignment is expected to meaningfully extend their financial runway while they assess future plans.
Negative Factors
Clinical Trial Discontinuation
PLRX announced the discontinuation of the Phase IIb/III BEACON-IPF study for bexotegrast due to a higher rate of IPF-related adverse events observed in the bexo-treated groups.
Workforce Reduction
The company recently announced a restructuring and workforce reduction to reduce cash burn.

Pliant Therapeutics (PLRX) vs. SPDR S&P 500 ETF (SPY)

Pliant Therapeutics Business Overview & Revenue Model

Company DescriptionPliant Therapeutics, Inc., a clinical stage biopharmaceutical company, discovers, develops, and commercializes novel therapies for the treatment of fibrosis and related diseases in the United States. Its lead product candidate is PLN-74809, an oral small-molecule dual selective inhibitor of avß6 and avß1 integrins, which is in three Phase 2a trials. The company also develops PLN-1474, a small-molecule selective inhibitor of avß1, which completed Phase 1 clinical trial for the treatment of liver fibrosis associated with nonalcoholic steatohepatitis. In addition, it is developing two additional preclinical integrin-based programs, which include an oncology program, as well as a program for an allosteric agonistic monoclonal antibody against an undisclosed integrin receptor for treatment of muscular dystrophies, including duchenne muscular dystrophy. Pliant Therapeutics, Inc. was incorporated in 2015 and is based in South San Francisco, California.
How the Company Makes MoneyPliant Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships and collaborations with larger pharmaceutical companies. These partnerships may involve upfront payments, milestone payments based on the achievement of specific development goals, and royalties on future product sales. As a clinical-stage company, Pliant's revenue is also influenced by research grants or subsidies, but the majority of its future earnings potential lies in the successful approval and market introduction of its drug candidates.

Pliant Therapeutics Financial Statement Overview

Summary
Pliant Therapeutics is facing significant financial challenges with declining revenues and persistent losses. The balance sheet remains relatively stable with low leverage, but cash flows are under pressure, necessitating external funding to support operations. The company needs to improve revenue generation and cost management to achieve financial stability.
Income Statement
20
Very Negative
Pliant Therapeutics has shown a declining revenue trend from 2019 to 2024 with revenue dropping to zero in 2024. The company is experiencing persistent net losses, evident from the negative net profit margins, indicating challenges in achieving profitability. EBIT and EBITDA margins are also negative, reflecting high operating expenses relative to revenue.
Balance Sheet
40
Negative
The company's balance sheet shows a stable equity base despite consistent losses. The debt-to-equity ratio remains low due to minimal debt, signaling low leverage which reduces financial risk. However, the company's stockholders' equity has decreased over time, indicating financial pressure.
Cash Flow
30
Negative
Pliant Therapeutics has negative operating and free cash flows, indicating cash outflows from operations. The free cash flow has worsened over time, showing increasing capital strain. The cash flow from financing activities has been positive, suggesting reliance on external funding.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.001.58M9.69M7.57M41.82M
Gross Profit-622.00K0.001.58M6.00M4.37M41.82M
EBITDA-218.09M-228.37M-158.23M-118.85M-95.73M-40.34M
Net Income-219.51M-210.30M-161.34M-121.50M-17.91M-39.74M
Balance Sheet
Total Assets344.77M396.95M512.15M350.61M221.22M295.53M
Cash, Cash Equivalents and Short-Term Investments305.64M355.72M494.25M331.19M200.60M276.89M
Total Debt60.17M60.19M11.37M15.81M7.19M283.00K
Total Liabilities87.61M92.87M38.58M37.27M22.16M12.46M
Stockholders Equity257.16M304.08M473.58M313.34M199.06M283.06M
Cash Flow
Free Cash Flow-176.71M-159.35M-117.28M-96.39M-77.40M-38.80M
Operating Cash Flow-174.10M-155.50M-116.36M-94.63M-75.44M-37.27M
Investing Cash Flow149.91M140.34M-127.01M-150.20M73.70M-210.87M
Financing Cash Flow1.83M23.12M274.40M226.85M2.53M213.21M

Pliant Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.20
Price Trends
50DMA
1.42
Negative
100DMA
1.73
Negative
200DMA
7.35
Negative
Market Momentum
MACD
-0.07
Positive
RSI
37.94
Neutral
STOCH
14.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLRX, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.42, and below the 200-day MA of 7.35, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 14.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLRX.

Pliant Therapeutics Risk Analysis

Pliant Therapeutics disclosed 79 risk factors in its most recent earnings report. Pliant Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pliant Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
50
Neutral
$86.48M-88.03%-21.28%36.26%
49
Neutral
$79.49M-60.25%255.31%-141.39%
43
Neutral
$74.84M-456.32%0.13%
41
Neutral
$80.42M-62.04%-61.95%
37
Underperform
$71.82M-63.22%-100.00%-26.44%
36
Underperform
$106.46M-34.87%15.09%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PLRX
Pliant Therapeutics
1.20
-9.32
-88.59%
VERU
Veru
0.58
-0.37
-38.95%
ATOS
Atossa Therapeutics
0.84
-0.25
-22.94%
MGNX
MacroGenics
1.38
-2.82
-67.14%
SRZN
Surrozen
8.74
-1.11
-11.27%
CLYM
Climb Bio
1.26
-5.37
-81.00%

Pliant Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Pliant Therapeutics Announces Major Workforce Reduction
Negative
May 1, 2025

On May 1, 2025, Pliant Therapeutics announced a significant workforce reduction, impacting approximately 45% of its employees, expected to be completed by the end of the second quarter of 2025. This move includes the termination of Chief Legal and Compliance Officer Mike Ouimette’s employment and is anticipated to result in $3.6 million in severance and related benefits, reflecting a strategic shift that may affect the company’s operational dynamics and stakeholder interests.

Spark’s Take on PLRX Stock

According to Spark, TipRanks’ AI Analyst, PLRX is a Underperform.

Pliant Therapeutics faces major financial difficulties with zero revenue in 2024 and persistent net losses, impacting its overall stability. Technical indicators suggest a bearish trend, but the stock is nearing oversold levels, which might offer potential for a short-term rebound. Despite a stable balance sheet, the negative P/E ratio and lack of dividends make the stock less appealing from a valuation standpoint.

To see Spark’s full report on PLRX stock, click here.

Business Operations and Strategy
Pliant Therapeutics Adopts Stockholder Rights Agreement
Neutral
Mar 13, 2025

On March 12, 2025, Pliant Therapeutics’ board of directors adopted a stockholder rights agreement to protect against hostile takeovers by issuing a dividend of one preferred share purchase right for each outstanding share of common stock. This move aims to prevent any entity from gaining control of the company without paying a control premium, ensuring that the board has the opportunity to act in the best interests of all stockholders. The rights become exercisable if a person or group acquires 10% or more of the company’s common stock without board approval, allowing existing stockholders to purchase additional shares at a discount, thus diluting the acquiring party’s stake.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 02, 2025