Pliant Therapeutics unveiled promising results for a lung disease treatment on Monday, and PLRX stock rocketed into the stratosphere.
On the stock market today, Pliant stock catapulted 34.5% higher, closing at 30.28. Earlier, PLRX stock hit its highest point since May 2021. Shares also broke out of a cup-with-handle base after topping a buy point at 24.01, according to MarketSmith.com.
The biotech company tested its treatment in patients with idiopathic pulmonary fibrosis, or IPF. Patients with this disease have a hard time breathing due to built-up scar tissue on their lungs. But after 12 weeks of treatment with Pliant's drug bexotegrast, patients experienced significant improvements in symptoms.
Now, investors in PLRX stock are closely watching for 24-week data, expected in the second quarter.
PLRX Stock: A Best-In-Class Drug?
SVB Securities analyst Mike Kratky says Pliant's approach to IPF could be "best-in-class."
The release Monday focuses on a 320-milligram dose of bexotegrast. Pliant examined patients' forced vital capacity — the maximum amount of air they could forcefully exhale after fully inhaling — and scans of lung tissue scarring after 12 weeks of treatment.
The 320-milligram dose of led to statistically significant improvement on forced vital capacity, beating out the previously tested doses at 40, 80 and 160 milligrams. Pliant also noted a strong treatment effect on lung imaging and other biomarkers.
"Overall, we see these results reinforcing our view that bexotegrast will compete for a best-in-class profile in IPF, a roughly $4 billion global commercial opportunity where safe and effective therapies are desperately needed," SVB's Kratky said in a note to clients.
He has an outperform rating on PLRX stock.
Pliant's Nearly Perfect RS Rating
Kratky noted one patient died of acute respiratory failure in Pliant's study. However, investigators say the death wasn't due to bexotegrast treatment. There were no drug-related serious or severe side effects. The side effects tied to bexotegrast were mild or moderate in severity, Pliant said in a news release.
The 24-week data could "help even further characterize bexotegrast's safety and (effectiveness) profile" before the company begins another midstage study in the middle of 2023, Kratky said.
Pliant shares have a strong IBD Digital Relative Strength Rating of 98 out of a best-possible 99, according to IBD Digital. This puts PLRX stock in the top 2% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
