Pliant Therapeutics, a biotech firm focused on fibrosis treatments, is laying off 45% of its workforce, approximately 75 employees, following the suspension of a key drug trial due to safety concerns. This decision comes as the company faces a significant drop in valuation from over $760 million to around $105 million amid waning investor confidence. Pliant is also evaluating different dosing strategies, while exploring new drug candidates in anti-tumor and muscular dystrophy treatments. The layoffs are aimed at extending its cash runway and maintaining its clinical trial execution capability.
Pliant Therapeutics announced a 45% workforce reduction, equivalent to about 75 employees, to extend its cash runway after halting a critical Phase 2b trial over safety concerns.
Despite initial positive signs for efficacy, investor confidence was severely shaken after Pliant halted its leading drug candidateâs trial, dropping its valuation from $760M to approximately $105M.
In a statement regarding the layoffs, Pliant emphasized that the cuts aimed to maintain its strong late-stage clinical trial execution capability and sustain financial viability.
Pliant has incurred significant research and development costs, totaling $169 million last year, while still awaiting critical data and assessing new drug candidates.
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