Analyst Ananda Ghosh from H.C. Wainwright reiterated a Buy rating on PepGen Inc. (PEPG – Research Report) and decreased the price target to $8.00 from $14.00.
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Ananda Ghosh has given his Buy rating due to a combination of factors surrounding PepGen Inc.’s strategic decisions and promising trial data. The discontinuation of the PGN-EDO51 program, due to its failure to achieve meaningful dystrophin expression and safety concerns, is seen as a prudent move. This decision allows the company to focus on its DM1 program, which has shown encouraging preliminary data in the FREEDOM-DM1 trial.
The trial demonstrated a robust increase in splicing correction, which is predicted to have therapeutic significance and could translate into clinical benefits. The safety profile of the DM1 program is also reassuring, with no adverse effects on kidney function or electrolyte balance, unlike the DMD program. The positive early data and the potential for future clinical improvements suggest that the DM1 program could become a best-in-class therapy. These factors, along with the potential for strategic collaborations or acquisition interest, underpin Ananda Ghosh’s Buy rating for PepGen Inc.
In another report released on May 12, Stifel Nicolaus also reiterated a Buy rating on the stock with a $14.00 price target.