On Tuesday, Citi adjusted its price target on Pliant Therapeutics (NASDAQ: PLRX) shares, bringing it down to $44.00 from the previous $45.00, while maintaining a Buy rating on the stock.
The biopharmaceutical company, which focuses on the discovery and development of novel therapies for fibrotic diseases, recently reported its first-quarter financial results for 2024 and provided updates on its pipeline programs.
During the last quarter, Pliant Therapeutics made significant progress with its BEACON-IPF trial for idiopathic pulmonary fibrosis (IPF), a chronic lung disease. The trial's design has been accepted by the European Union and other global health authorities as a pivotal Phase 2b/3 study.
This adaptive trial design is expected to potentially expedite the pathway to approval. Although the U.S. Food and Drug Administration (FDA) has not yet approved this design, Pliant Therapeutics is in ongoing discussions with the agency and is focused on generating more data to support its case.
Pliant Therapeutics is also preparing for an imminent topline readout from a separate 12-week Phase 2a PET imaging trial. This study aims to evaluate the effects of the company's experimental drug, bexotegrast, on lung collagen and forced vital capacity (FVC) in 10 patients with IPF, comparing those treated with a 160mg dose of the drug to a placebo group.
Looking ahead, the company has set sights on mid-2024 for the release of 24-week data from the INTEGRIS PSC trial, which is examining the impact of a 320mg dose of its treatment in patients with primary sclerosing cholangitis (PSC), a chronic liver disease. This upcoming data is anticipated to provide further insights into the drug's activity and long-term safety profile.
InvestingPro Insights
As Pliant Therapeutics (NASDAQ: PLRX) continues to navigate the development of treatments for fibrotic diseases, recent financial metrics and analyst trends offer additional context for investors following Citi's updated price target. With a market capitalization of $831.8 million, the company is operating with a negative P/E ratio of -5.05, reflecting its current lack of profitability. This aligns with the expectations from analysts that the company will not be profitable this year. However, it's noteworthy that PLRX holds more cash than debt, which could provide some financial flexibility in the near term.
InvestingPro Tips highlight that six analysts have recently revised their earnings estimates upwards for the upcoming period, indicating potential optimism about the company's future performance. Additionally, the company has experienced a significant return over the last week, with a 16.67% price total return, which could capture the interest of investors looking for short-term movements.
For investors seeking a more in-depth analysis, InvestingPro offers a comprehensive array of additional tips for Pliant Therapeutics, which can be accessed at https://www.investing.com/pro/PLRX. To further enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 5 more InvestingPro Tips available, investors can gain a deeper understanding of the company's financial health and market position.
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