PepGen Inc. (PEPG) AI Stock Analysis

• Market Cap: $354.05M
• Dividend Yield: N/A
• Average Volume (3M): 6.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: N/A
• EPS Growth: 4.71%
• Country: US
• Employees: 79
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.52
• Shares Outstanding: 68,748,220
• 10 Day Avg. Volume: 930,736
• 30 Day Avg. Volume: 6,679,177
• PEG Ratio: 0.10
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.44
• Enterprise Value/Market Cap: -0.06
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 28.43
• Enterprise Value/Ebitda: 0.22
• 1Y Price Target: $11.50
• Price Target Upside: 130.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $5.00 ▲(0.20% Upside)

The score is held back primarily by weak fundamentals (no revenue, large losses, and significant cash burn), partially offset by a relatively supportive balance sheet. Technicals are positive with price above major moving averages and favorable momentum indicators, while valuation is constrained by negative earnings and no dividend signal. A positive corporate update on the DM1 program and runway provides some support but remains execution- and data-dependent.

Positive Factors

Patent Protection

The new patent secures long-term competitive advantage for PGN-EDODM1, potentially enhancing market position and revenue prospects if the drug is approved.

Clinical Progress

Successful clinical outcomes can lead to regulatory approvals and market entry, crucial for revenue generation and competitive positioning in the biotech industry.

Management Strength

Experienced leadership in business and legal affairs can enhance strategic execution, partnerships, and regulatory navigation, supporting long-term growth.

Negative Factors

Cash Burn

High cash burn rate indicates reliance on external funding, which could be risky if capital markets tighten, affecting long-term financial sustainability.

No Revenue

Lack of revenue generation limits self-sustainability and increases dependency on external financing, posing a risk to long-term viability.

Rising Leverage

Increased leverage can strain financial flexibility and increase risk, especially if losses continue, potentially impacting future growth and stability.

PepGen Inc. Business Overview & Revenue Model

Company Description

PepGen 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 Money

PepGen 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. shows a lack of revenue generation, leading to net losses and negative operating cash flow. The company relies on equity financing to sustain operations, which poses significant risks to financial stability. Despite a strong equity base, the absence of revenue growth is a critical concern.

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.

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.

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.

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	-719.00K	-1.50M	-1.18M	0.00	0.00	0.00
EBITDA	-92.82M	-89.09M	-83.58M	-67.81M	-26.93M	-1.77M
Net Income	-93.56M	-89.98M	-78.63M	-69.10M	-27.28M	-1.89M
Balance Sheet
Total Assets	190.06M	150.88M	143.05M	217.44M	143.64M	10.64M
Cash, Cash Equivalents and Short-Term Investments	163.66M	120.19M	110.41M	181.75M	132.90M	9.78M
Total Debt	17.44M	18.66M	20.10M	24.53M	0.00	0.00
Total Liabilities	26.92M	32.26M	34.63M	37.81M	10.55M	868.00K
Stockholders Equity	163.14M	118.62M	108.42M	179.63M	133.09M	9.77M
Cash Flow
Free Cash Flow	-85.76M	-82.87M	-71.60M	-63.02M	-23.10M	-1.66M
Operating Cash Flow	-85.27M	-82.37M	-69.00M	-59.27M	-22.60M	-1.65M
Investing Cash Flow	77.51M	-37.67M	-32.00M	-3.75M	-500.00K	-8.00K
Financing Cash Flow	108.28M	88.75M	-189.00K	112.19M	147.66M	7.95M

PepGen Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEPG, the sentiment is Neutral. The current price of 4.99 is below the 20-day moving average (MA) of 5.99, below the 50-day MA of 5.59, and above the 200-day MA of 2.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 2.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PEPG.

PepGen Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXEO	58 Neutral	$563.46M	-2.78	-80.69%	―	―	4.97%
PEPG	53 Neutral	$354.05M	-1.76	-62.25%	―	―	4.71%
RCKT	52 Neutral	$428.56M	-1.65	-74.88%	―	―	18.39%
LYEL	52 Neutral	$498.38M	-1.00	-75.75%	―	-34.92%	-43.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EDIT	41 Neutral	$216.71M	―	-211.37%	―	-24.90%	7.19%

PepGen Inc. Corporate Events

PepGen Inc. Appoints New Chief Business Officer

On December 8, 2025, PepGen Inc. announced the appointment of Joseph Vittiglio, Esq., as Chief Business and Legal Officer. Vittiglio, who has extensive experience in legal and business leadership within the biotechnology sector, is expected to play a key role in guiding PepGen through complex transactions and strategic partnerships as the company progresses with its PGN-EDODM1 program and prepares for the 2026 readouts from its FREEDOM2-EDODM1 study.

The most recent analyst rating on (PEPG) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on PepGen Inc. stock, see the PEPG Stock Forecast page.

PepGen Inc. Reprices Underwater Stock Options

On November 4, 2025, PepGen Inc.‘s Board of Directors approved a repricing of underwater stock options for current employees, including key executives. This decision, made in accordance with the company’s stock plans, aims to retain and motivate employees by reducing the exercise price of options to $4.53, provided they remain with the company through a specified retention period. The repricing addresses the issue of two-thirds of the company’s outstanding stock options being underwater, with previous exercise prices significantly higher than the current market value. This strategic move is intended to align employee incentives with the company’s interests during a critical phase.

The most recent analyst rating on (PEPG) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on PepGen Inc. stock, see the PEPG Stock Forecast page.