Pliant Therapeutics Reports $56.2 Million Net Loss in Q1 2025, Announces Workforce Reduction

Pliant Therapeutics, Inc. reported a net loss of $56.2 million for the first quarter of 2025, compared to a net loss of $47.0 million for the same period in 2024. The company's total operating expenses increased to $58.9 million from $52.4 million year-over-year, primarily driven by a rise in research and development costs, which reached $43.4 million, up from $37.1 million. The increase in expenses is attributed to the acceleration of close-out activities for the BEACON-IPF Phase 2b trial, which was recently discontinued due to safety concerns. The company’s accumulated deficit now stands at $766.2 million, with cash, cash equivalents, and short-term investments totaling $307.1 million as of March 31, 2025.

In terms of operational changes, Pliant announced a strategic restructuring on May 1, 2025, which will reduce its workforce by approximately 45%. This decision is part of a broader effort to extend the company's cash runway and support ongoing clinical trials. The company is also focusing on its lead product candidate, bexotegrast, which is being developed for idiopathic pulmonary fibrosis (IPF). Despite the discontinuation of the BEACON-IPF trial, Pliant plans to analyze the data and evaluate next steps for bexotegrast's development.

Pliant's employee headcount was significantly impacted by the recent workforce reduction, which is expected to be completed by the end of the second quarter of 2025. The company had 61,386,278 shares of common stock outstanding as of May 1, 2025. The restructuring aims to streamline operations and reduce costs, allowing the company to focus on advancing its clinical programs, including PLN-101095, which is currently in a Phase 1 trial for solid tumors.

Looking ahead, Pliant anticipates continued net losses as it invests in research and development activities to advance its product candidates through clinical trials. The company is also evaluating its capital needs and may seek additional funding through public or private equity offerings, collaborations, or other financing arrangements. The outcome of these efforts, along with the success of its clinical trials, will be critical in determining the company's future financial performance and market position.

Overall, Pliant Therapeutics is navigating a challenging landscape marked by significant operational changes and ongoing financial losses, while striving to advance its innovative therapies for fibrosis and related diseases.