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PepGen Inc. (PEPG)
NASDAQ:PEPG
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PepGen Inc.
(NASDAQ:PEPG)
34Underperform
Positive Factors
Efficacy of DM1 program
The initial data from the FREEDOM-DM1 trial highlighted a dose-dependent robust increase in the splicing correction at 28 days just after one dose.
Potential for efficacy
PEPG's blocking approach could potentially translate to greater efficacy vs. degradation approaches.
Safety data
The safety data from the study might provide assurance on the value proposition of the EDO platform, with most TEAEs being mild to moderate.
Negative Factors
Clinical trial hold
PepGen announced they will be temporarily pausing the phase 2 CONNECT2-EDO51 study in DMD to focus on the ongoing phase 2 CONNECT1-EDO51 sister study.
Competitor positioning
There are a number of competitors further ahead in development (RNA, DYN, etc.).
Regulatory concerns
The company noted ongoing interactions with regulators to address their safety concerns to support further dose escalation.
PepGen Inc. (PEPG) vs. S&P 500 (SPY)
Market Cap
$36.94M
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue GrowthN/A
EPS Growth14.06%
CountryUS
Employees81
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.84
Shares Outstanding32,692,387
10 Day Avg. Volume296,143
30 Day Avg. Volume1,701,584
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.25Price Target Upside1225.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
PepGen Inc. Business Overview & Revenue Model
Company DescriptionPepGen Inc., a clinical-stage biotechnology company, focuses on the development of oligonucleotide therapeutics for use in the treatment of severe neuromuscular and neurologic diseases. The company's lead product candidate is PGN-EDO51, an EDO peptide in Phase I clinical trials to treat individuals with Duchenne muscular dystrophy (DMD). It is also developing PGN-EDODM1, an EDO peptide-conjugated PMO for the treatment of myotonic dystrophy type 1, as well as EDO therapeutic candidates, such as PGN-EDO53, PGN-EDO45, and PGN-EDO44 for the treatment of DMD. The company was founded in 2018 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneyPepGen Inc. generates revenue primarily through the development and commercialization of its proprietary therapies and drug candidates. The company's revenue model includes licensing agreements, collaborations, and strategic partnerships with pharmaceutical companies, which provide upfront payments, milestone payments, and royalties based on the successful development and commercialization of its therapies. Additionally, PepGen may engage in research and development collaborations that offer financial support in exchange for access to its innovative EDO platform. Key factors contributing to its earnings include the successful advancement of its clinical pipeline and the establishment of strong partnerships within the biotech and pharmaceutical industries.
PepGen Inc. Financial Statement Overview
Summary
PepGen Inc. faces significant financial challenges with zero revenue and increasing net losses, reflecting operational inefficiencies. While the balance sheet shows limited leverage, accumulating losses and negative cash flow from operations highlight ongoing financial strain.Income Statement
PepGen Inc. has consistently reported zero revenue over the past years, with increasing net losses. The lack of revenue generation indicates significant challenges in commercializing its products or services. The net profit margin is negative and deteriorating, suggesting operational inefficiencies and high expenditure relative to nonexistent revenues.10
Very Negative
Balance Sheet
The company maintains a strong equity base compared to its total assets, with a high equity ratio, reflecting limited leverage. However, the accumulating losses are eroding shareholder equity, and the absence of revenue growth poses risks to long-term financial stability. The debt-to-equity ratio is low, which is positive, but it highlights the company's reliance on equity financing.50
Neutral
Cash Flow
Operating cash flow has been consistently negative, reflecting the company's inability to generate cash from core operations. Despite negative free cash flow, the company has managed to secure financing, which has kept it afloat. There's a lack of improvement in free cash flow growth, indicating continued financial strain.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| -299.00K | 0.00 | -1.18M | -493.00K | -178.00K | -110.00K | EBIT |
| -46.82M | 0.00 | -84.77M | -68.30M | -27.11M | -1.88M | EBITDA |
| -46.52M | 0.00 | -83.58M | -67.81M | -26.93M | -1.77M | Net Income Common Stockholders |
| -50.49M | -89.98M | -78.63M | -69.10M | -27.28M | -1.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 120.19M | 120.19M | 110.41M | 181.75M | 132.90M | 9.78M | Total Assets |
| 150.88M | 150.88M | 143.05M | 217.44M | 143.64M | 10.64M | Total Debt |
| 18.66M | 18.66M | 20.10M | 24.53M | 0.00 | 0.00 | Net Debt |
| -30.76M | -30.76M | -60.67M | -157.22M | -132.90M | -9.78M | Total Liabilities |
| 32.26M | 32.26M | 34.63M | 37.81M | 10.55M | 868.00K | Stockholders Equity |
| 118.62M | 118.62M | 108.42M | 179.63M | 133.09M | 9.77M |
| Cash Flow | Free Cash Flow | ||||
| -40.95M | -82.87M | -71.60M | -63.02M | -23.10M | -1.66M | Operating Cash Flow |
| -38.55M | -82.37M | -69.00M | -59.27M | -22.60M | -1.65M | Investing Cash Flow |
| -2.40M | -37.67M | -32.00M | -3.75M | -500.00K | -8.00K | Financing Cash Flow |
| 131.96M | 88.75M | -189.00K | 112.19K | 147.66M | 7.95M |
PepGen Inc. Technical Analysis
Negative
1.00
Price Trends
1.72
Negative
2.86
Negative
6.86
Negative
Market Momentum
-0.19
Positive
36.89
Neutral
5.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEPG, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.72, and below the 200-day MA of 6.86, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEPG.
PepGen Inc. Risk Analysis
PepGen Inc. disclosed 93 risk factors in its most recent earnings report. PepGen Inc. reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PepGen Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $5.08B | 20.68 | 19.71% | ― | 52.97% | ― | |
54 Neutral | $942.40M | ― | -73.24% | ― | -4.42% | -42.17% | |
53 Neutral | $3.06B | ― | -33.47% | ― | 13.99% | 0.17% | |
49 Neutral | $4.38B | ― | -93.03% | ― | -10.48% | -18.79% | |
48 Neutral | $6.36B | 1.24 | -44.94% | 2.70% | 18.33% | 1.47% | |
42 Neutral | $3.37B | ― | 33.08% | ― | -13.97% | 43.51% | |
34 Underperform | $36.94M | ― | -79.26% | ― | ― | 14.06% |
* Healthcare Sector Average
Performance Comparison
PEPG
PepGen Inc.
1.13
-10.77
-90.50%
IONS
Ionis Pharmaceuticals
27.77
-15.17
-35.33%
SRPT
Sarepta Therapeutics
55.65
-70.66
-55.94%
PTCT
PTC Therapeutics
42.75
15.84
58.86%
WVE
Wave Life Sciences
6.14
0.10
1.66%
RNA
Avidity Biosciences
24.80
-0.84
-3.28%
PepGen Inc. Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -27.01% | Next Earnings Date: Jun 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in clinical trials and a strong financial position due to recent funding, as well as regulatory advancements such as FDA fast track designation. However, there were challenges with increased expenses and a notable net loss for the year. Despite these financial lowlights, the clinical and regulatory achievements present a strong positive outlook.Highlights
Clinical Trial Progress
Completed enrollment for cohort 1 in CONNECT1-EDO51 evaluating 5 mg per kg dose in DMD patients in the Phase II clinical trial. Clearance received from MHRA in the U.K. to initiate CONNECT2-EDO51, a Phase II study of EDO51.
Financial Position
Successful underwritten stock offering raised approximately $80 million, extending projected cash runway into 2026.
FDA Fast Track Designation
EDODM1 granted fast track designation by FDA, facilitating development and review of therapies for serious conditions with unmet medical needs.
Dystrophin Production Expectations
At 10 mg per kg dose cohort, potential to achieve greater than 9% of normal levels of dystrophin protein, highest level achieved by a DMD exon-skipping therapy to date.
Lowlights
Increased Expenses
Research and development expenses increased to $68.1 million for the full year 2023, attributed to advancement of PGN-ED051 and PGN-EDODM1 programs.
Net Loss
Net loss for the fourth quarter of 2023 was $19.5 million, with a full year net loss of $78.6 million.
Cash Depletion
Cash and cash equivalents decreased from $181.8 million on December 31, 2022, to $110.4 million on December 31, 2023.
Company Guidance
During the PepGen Q4 2023 earnings call, the company provided guidance on several key metrics and developments. They highlighted the initiation of clinical trials for their EDO cell-penetrating peptide platform targeting Duchenne Muscular Dystrophy (DMD) and myotonic dystrophy type 1 (DM1). PepGen's lead program, PGN-EDO51, aims to treat DMD with an exon 51-skipping approach, targeting approximately 13% of DMD patients in the U.S. and EU. They completed enrollment for cohort 1 in CONNECT1-EDO51 at a 5 mg per kg dose and anticipate escalating to 10 mg per kg pending safety reviews. The company expects preliminary data for the 5 mg per kg cohort by mid-2024, with projections suggesting high dystrophin production levels. For DM1, the FDA lifted a clinical hold on EDODM1, which received fast track designation. The FREEDOM-DM1 Phase I trial began dosing in December 2023, and PepGen aims to report preliminary data in the second half of 2024. Financially, PepGen reported a net loss of $19.5 million for Q4 and $78.6 million for the full year, with research and development expenses totaling $68.1 million in 2023. Following a stock offering in early 2024, they are positioned to fund operations into 2026.PepGen Inc. Corporate Events
Executive/Board Changes
PepGen Inc. Expands Board with New Appointments
Positive
Mar 31, 2025
On March 27, 2025, PepGen Inc. announced the appointment of Mitchell Finer, Ph.D., and Lisa Wyman to its Board of Directors, expanding the board from six to eight members. Dr. Finer, with extensive experience in genetic therapies and executive roles in various biotechnology companies, and Ms. Wyman, known for her expertise in scaling manufacturing and navigating global regulatory agencies, are expected to strengthen PepGen’s board as the company advances its mid-stage clinical trials and continues to develop its EDO platform.
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
PepGen Inc. Announces Positive FREEDOM-DM1 Trial Results
Positive
Feb 24, 2025
On February 24, 2025, PepGen Inc. announced positive initial results from its ongoing FREEDOM-DM1 trial for patients with myotonic dystrophy type 1 (DM1), showing significant splicing correction in different dosage cohorts. The company also reported its financial results for the fourth quarter and year-end 2024, highlighting increased research and development expenses and a net loss, yet maintaining a strong cash position to fund operations into 2026. These developments underscore PepGen’s commitment to advancing its therapeutic candidates and its strategic positioning in the biotechnology industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.