BofA downgrades PepGen to Underperform after clinical hold

BofA downgraded PepGen (PEPG) to Underperform from Neutral with a price target of $3, down from $6, after the FDA placed a clinical hold on the company’s new drug application to initiate the CONNECT2-EDO51 clinical trial in patients with Duchenne muscular dystrophy. A second clinical hold for PepGen negatively impacts the investment thesis on its Enhanced Delivery Oligonucleotide platform, the analyst tells investors in a research note. BofA looks for additional platform validation in future program updates.