Tuesday, shares of Pliant Therapeutics (NASDAQ:PLRX) maintained a Buy rating from TD Cowen, following encouraging clinical trial results. The firm highlighted the positive Phase 2a 24-week INTEGRIS-PSC data for the company's lead drug candidate, bexotegrast (bexo), which is being evaluated for the treatment of primary sclerosing cholangitis (PSC).
The recent trial data demonstrated that bexo, at a 320mg dosage, was well-tolerated for up to 40 weeks without any serious adverse events (SAEs). The exploratory endpoints, which included Enhanced Liver Fibrosis (ELF), magnetic resonance imaging (MRI), and Fibroscan assessments, indicated a potential increase in disease-modifying activity.
The analyst noted that the U.S. Food and Drug Administration (FDA) appears to be in favor of using non-invasive testing endpoints in drug development for PSC. This support is crucial for the future clinical trials of bexo in PSC. However, the continuation of these trials hinges on securing program-specific funding, as the current financial resources are allocated for the ongoing Phase 2/3 bexo trials in idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF).
The company's focus remains on advancing bexo through the clinical stages for IPF and PPF, with the PSC program's progression awaiting additional capital. The positive safety profile and exploratory endpoint results from the Phase 2a study are seen as a strong foundation for the future development of bexo in PSC treatment.
In other recent news, Pliant Therapeutics has been the subject of several analyst notes and has reported promising trial results.
Piper Sandler has confirmed its Overweight rating and $40.00 stock price target for Pliant Therapeutics, citing upcoming milestones such as the release of the 24-week Phase 2a INTEGRIS-PSC data and a meeting with the FDA, both expected in mid-2024. Similarly, Oppenheimer reiterated an Outperform rating and a price target of $48.00 following the release of a study on the effects of Pliant's drug bexotegrast on patients with Idiopathic Pulmonary Fibrosis (IPF).
RBC Capital also maintained an Outperform rating on Pliant Therapeutics, with a steady price target of $45.00, in light of positive indicators from an independent study on bexotegrast for the treatment of IPF. Stifel reaffirmed its Buy rating on Pliant Therapeutics following the announcement of topline data from an exploratory study.
The company itself announced positive topline data from a 12-week trial of bexotegrast for treating IPF, showing a reduction in total lung collagen in patients and improvements in forced vital capacity and cough severity.
InvestingPro Insights
Amidst the optimistic clinical trial results for Pliant Therapeutics' lead drug candidate, real-time financial data from InvestingPro provides a broader perspective on the company's market position. With a market capitalization of approximately $798.11 million and a rather high revenue valuation multiple, Pliant Therapeutics is trading at a significant premium relative to its revenue over the last twelve months as of Q1 2023, which stands at $0.25 million. Notably, the company holds a solid liquidity position, as indicated by its cash reserves outweighing its debt, and its liquid assets surpass short-term obligations.
InvestingPro Tips suggest caution, as analysts have recently revised their earnings expectations downwards for the upcoming period, and do not anticipate the company to be profitable this year. Despite a significant return over the last week, with a 19.84% price total return, Pliant Therapeutics has not been profitable over the last twelve months. For investors looking to delve deeper into Pliant Therapeutics' financials and future prospects, there are additional tips available on InvestingPro. To explore these insights and more, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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