Pliant Therapeutics Drops IPF Drug Trial After Review, Analyst Flags Uncertain Future

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Pliant Therapeutics halted its Phase 2b trial for bexotegrast in IPF, raising concerns about future prospects.
Needham downgraded Pliant to Hold from Buy, citing a lack of near-term catalysts and a thin early-stage pipeline.
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On Monday, Pliant Therapeutics Inc. PLRX announced the discontinuation of the BEACON-IPF Phase 2b trial, which evaluated bexotegrast in patients with idiopathic pulmonary fibrosis (IPF).

The move follows a prespecified data review and recommendation by the trial’s independent Data Safety Monitoring Board and a secondary review and recommendation by an outside expert panel.

Needham downgraded Pliant Therapeutics, citing no meaningful catalysts or upside drivers over the next year.

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Needham analyst Joseph Stringer writes that the IPF program was the main value driver for Pliant Therapeutics.

The remainder of the pipeline is relatively thin and in early-stage development.

Needham has downgraded from Buy to Hold, with no price target assigned compared to $10 previously.

With the stopped IPF program, the update has created a significant challenge if the drug is considered for other conditions.

Pliant Therapeutics notes that bexotegrast showed some effectiveness in the IPF trial, leaving room for potential dose-ranging studies to improve its benefit-risk profile—possibly even in IPF again.

However, this would be a long and difficult process with uncertain prospects. Bexotegrast has also shown promise in primary sclerosing cholangitis (PSC), but its development in this condition carries risks.

Price Action: PLRX stock is up 0.36% at $1.38 at last check Monday.

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