Citi Raises Pliant Therapeutics Price Target to $1.70 Amid Unclear Path Forward

Citi analyst David Lebowitz raised Pliant Therapeutics' (PLRX) price target to $1.70 from $1.50, maintaining a Neutral rating post-Q2 report. The company largely completed restructuring but the path forward for bexotegrast remains unclear.

Citi analyst David Lebowitz has raised the price target for Pliant Therapeutics (PLRX) to $1.70 from $1.50, maintaining a Neutral rating following the company's second quarter (Q2) report. The analyst's move comes as Pliant Therapeutics has largely completed its strategic restructuring but the future of its lead product candidate, bexotegrast, remains uncertain.

In its Q2 report, Pliant Therapeutics disclosed that it has discontinued development of bexotegrast in idiopathic pulmonary fibrosis (IPF) following an analysis of the full safety and efficacy data from the BEACON-IPF Phase 2b/3 clinical trial. While the drug demonstrated early signs of efficacy, it was found to have an unfavorable risk-benefit profile due to IPF-related adverse events [1].

The company's Phase 1 trial of PLN-101095 in solid tumors continues to enroll, with initial data from the trial expected by the end of 2025. PLN-101095 is an oral, small molecule, dual selective inhibitor of αvβ8 and αvβ1 integrins designed to block TGF-β activation in the tumor microenvironment.

Pliant Therapeutics reported a net loss of $43.3 million for the quarter, down from $55.9 million in the prior-year quarter. The decrease was primarily driven by the discontinuation of BEACON-IPF and personnel-related costs resulting from the strategic restructuring of its workforce. The company ended the quarter with $264.4 million in cash, cash equivalents, and short-term investments [1].

Despite the challenges, Lebowitz noted that Pliant Therapeutics has maintained core capabilities in support of its next steps and remains committed to delivering shareholder value. However, the path forward for bexotegrast remains unclear, and the analyst's Neutral rating reflects this uncertainty.

References:
[1] https://ir.pliantrx.com/news-releases/news-release-details/pliant-therapeutics-provides-corporate-update-and-reports-16