Could Pliant Therapeutics Stock Double Your Money?

Biotech stocks are finally starting to show signs of life again. Despite stubbornly high levels of inflation and eroding profit margins among some U.S. banks during the second quarter, biotech stocks have largely shrugged off the headwinds to post respectable gains since the start of the second half of 2022.

Pliant Therapeutics (NASDAQ: PLRX), a small-cap, clinical-stage biotech, has helped to lead the space higher this month. Thanks to a positive phase 2a trial readout for its idiopathic pulmonary fibrosis (IPF) candidate known as PLN-74809, the drugmaker's shares nearly quadrupled in value at one point in early July.

Matter of fact, the only reason Pliant's shares aren't still more than 200% higher thus far in July is that the company immediately decided to push through a sizable secondary offering following the publication of those fairly strong mid-stage trial results. Nonetheless, Pliant's shares are still up by a healthy 163.4% for the month at the time of this writing.

Source Fool.com