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Pliant Therapeutics Inc. (PLRX) stock has tumbled to a 52-week low, touching down at $1.2, as the biotech firm faces a challenging market environment. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, while the company maintains a strong liquidity position with a current ratio of 10.91. This latest price level reflects a significant drop from previous valuations, underscoring the volatility that the company has experienced over the past year. Investors have witnessed a dramatic 1-year change in the stock's performance, with Pliant Therapeutics Inc. seeing its value plummet by -91.76%. The steep decline has raised concerns among shareholders and sparked discussions about the company's future prospects and potential strategies to stabilize and grow its market position. Despite the challenges, InvestingPro analysis shows five analysts have revised their earnings upwards for the upcoming period, with price targets ranging from $1.50 to $47.00. The stock currently appears undervalued according to InvestingPro's Fair Value model. Discover 13 additional exclusive insights and detailed analysis with InvestingPro.
In other recent news, Pliant Therapeutics reported fourth-quarter earnings that exceeded analyst expectations, with a loss per share of $0.82 compared to the anticipated $0.99. Despite the positive earnings report, the company announced the discontinuation of its BEACON-IPF Phase 2b trial for the drug bexotegrast due to safety concerns, following recommendations from an independent data safety monitoring board and an expert panel. This decision was influenced by a higher occurrence of IPF-related adverse events in the treatment groups compared to the placebo group, although some early signs of efficacy were noted.
In response to this development, Citi analyst David Lebowitz significantly reduced Pliant's stock price target to $1.50 from $4.00, while maintaining a Neutral rating. Similarly, Cantor Fitzgerald reinstated coverage with a Neutral rating, reflecting caution as the company evaluates the trial data over the next few months. Pliant Therapeutics also announced the adoption of a shareholder rights plan to prevent hostile takeovers, distributing one preferred share purchase right per common stock share to record holders as of March 2025.
Additionally, Pliant shared promising interim results from a Phase 1 trial of PLN-101095 for advanced solid tumors, showing a 50% objective response rate at the highest dose tested. These developments indicate Pliant's ongoing efforts to advance its pipeline despite recent setbacks.
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