BUZZ-Pliant Therapeutics slumps after company halts enrollment in mid-stage trial of lung disease drug

Updates

Shares of drug developer Pliant Therapeutics PLRX.O fall about 59% to a record low of $3.21 since its Nasdaq debut on June 3, 2020

Late on Friday, the company said it had voluntarily paused enrollment and dosing in mid-stage trial testing of its experimental lead drug, bexotegrast, to treat a type of lung disease called idiopathic pulmonary fibrosis

Idiopathic pulmonary fibrosis is a rare lung disease that causes scarring and stiffening of the organ's tissue

At least three brokerages downgrade stock

"This could turn out to be nothing, or it could spell the end for bexotegrast" - brokerage H.C. Wainwright

Brokerage RBC Capital Markets cuts rating to "sector perform" from "outperform" and slashes PT to $4 from $45

Best-case scenario for the company would be resuming study, but this may require some modification of the trial, which may lead to disruption and add risks - RBC

Stock was down 26% in 2024