PepGen initiated with a Buy at Guggenheim ahead of DM1 data

As previously reported, Guggenheim initiated coverage of PepGen (PEPG) with a Buy rating and $6 price target The firm believes the stock “could trade higher by 5x to 10x over the next three quarters” following clarity from the ongoing Single Ascending Dose/Multiple Ascending Dose studies in Myotonic Dystrophy Type 1, but if the SAD/MAD data underwhelm it would expect management will return residual cash to shareholders. Key upcoming clinical readouts include 15 mg/kg SAD data to be presented on October 11 and 5 mg/kg MAD data during Q1, notes the analyst, who is “optimistic” about the company’s ability to demonstrate clinically meaningful improvement in splicing and other biomarkers.