Pliant Therapeutics Reports Significant Financial Challenges, Net Loss of $57.8 Million in Q3 2024

Pliant Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing therapies for fibrosis, reported no revenue for the three months ended September 30, 2024, a stark decline from $1.58 million for the same period in 2023. This drop is attributed to the termination of the Novartis Collaboration and License Agreement in April 2023, which previously provided revenue through upfront fees and milestone payments.

Total operating expenses for the third quarter of 2024 reached $62.0 million, an increase of $14.3 million compared to $47.7 million in the same quarter of 2023. The loss from operations also rose to $62.0 million from $47.7 million year-over-year. The net loss for the quarter was $57.8 million, up from $41.5 million in the prior year, reflecting a worsening financial position.

For the nine months ended September 30, 2024, the net loss was $160.6 million, compared to $120.2 million for the same period in 2023. Total operating expenses for this nine-month period increased to $175.0 million from $138.7 million in 2023. Research and development expenses surged to $130.5 million, primarily due to costs associated with the ongoing BEACON-IPF clinical trial for the lead product candidate, bexotegrast.

As of September 30, 2024, Pliant's total assets were $445.7 million, down from $512.2 million at the end of 2023. The company reported total current assets of $410.0 million, a decrease from $505.5 million, while total stockholders' equity fell to $345.8 million from $473.6 million. The accumulated deficit increased to $660.3 million, reflecting the ongoing financial losses.

Pliant's cash and cash equivalents improved to $79.6 million as of September 30, 2024, compared to $63.2 million at the end of 2023. The company also reported a net cash increase of $16.4 million for the nine months ended September 30, 2024, although this was a decrease from $24.0 million in the same period of 2023.

Strategically, Pliant has been focusing on advancing its clinical programs, including the BEACON-IPF trial and the development of PLN-101095, a new candidate for treating fibrosis. The company has also entered into an Amended Loan Agreement with Oxford Finance LLC, increasing its borrowing capacity to $150 million, which may help support its ongoing operations and clinical trials. However, the company continues to face uncertainties regarding future funding and operational sustainability, given its reliance on external financing and the absence of product sales.