PepGen Inc. Faces Clinical Trial Challenges and Competitive Pressures Leading to Sell Rating

In a report released yesterday, Tazeen Ahmad from Bank of America Securities maintained a Sell rating on PepGen Inc. (PEPG – Research Report), with a price target of $3.00.

Tazeen Ahmad has given his Sell rating due to a combination of factors concerning PepGen Inc.’s current clinical trial status and competitive positioning. The company has decided to pause its phase 2 CONNECT2-EDO51 study to concentrate on the CONNECT1-EDO51 study, which is still awaiting crucial data. This decision comes amidst an ongoing clinical hold in the U.S. for the CONNECT2 trial, which has not shown any new safety concerns but still requires further data to inform the design of future trials.
Moreover, while initial data from the DM1 program showed promising splicing correction results, the lack of significant functional outcome differences compared to placebo raises questions about the efficacy of the treatment. Additionally, there are concerns about the safety profile of PepGen’s EDO platform, and the presence of competitors who are more advanced in their development stages adds to the uncertainty. These factors contribute to the cautious outlook and the maintenance of an Underperform rating with a price objective of $3.

PEPG’s price has also changed dramatically for the past six months – from $9.100 to $2.280, which is a -74.95% drop .