Bank of America Securities analyst Tazeen Ahmad reiterated a Sell rating on PepGen Inc. (PEPG – Research Report) yesterday and set a price target of $3.00.
Tazeen Ahmad has given his Sell rating due to a combination of factors related to PepGen Inc.’s recent clinical trial results and ongoing regulatory challenges. The initial data from the FREEDOM-DM1 study showed promising splicing correction levels, but there was no significant functional improvement observed compared to the placebo group. This raises concerns about whether the splicing correction will translate into meaningful clinical benefits over time.
Additionally, safety issues remain a concern, as there were serious adverse events reported, although they were not directly linked to the study drug. The ongoing clinical hold on the DMD program in the US further contributes to uncertainty, as it reflects potential safety risks associated with the company’s EDO platform. These factors, combined with the need for more de-risking data, underpin the Underperform rating with a price objective of $3.