PepGen (NASDAQ:PEPG) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

PepGen (NASDAQ:PEPG) issued its quarterly earnings results on Tuesday. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.01), FiscalAI reports.

Here are the key takeaways from PepGen’s conference call:

• PepGen reported a 46.5% mean improvement in splicing after four doses of PGN-EDODM1 at 10 mg/kg, with four of six treated participants exceeding 50% improvement. The company said this was the highest mean splicing correction reported to date in a multiple-dose DM1 study.
• The company also reported improvements across several functional measures: myotonia improved by 4.3 seconds at week 13, while hand grip strength improved 16% at week 16, alongside favorable changes in timed mobility tests. These results come from a small cohort and are early; patient-reported outcomes did not yet show a clear signal.
• Management described the treatment as generally well tolerated, with no serious adverse events, dose-limiting toxicities, or discontinuations. Four mild kidney-related events were reported; albuminuria was transient, and the company said it saw no meaningful changes in eGFR or serum creatinine.
• The U.S. multiple-ascending-dose study remains under a partial FDA clinical hold related to questions about prior mouse toxicology findings. PepGen said it is conducting additional mouse studies to address the agency’s concerns, although the hold has not stopped the ongoing study in other countries.
• PepGen expects to report longer-term safety data at 10 mg/kg and additional data from the open-label extension in January 2027, with results from the 12.5 mg/kg cohort expected in the first half of 2027. The company said these data will inform dose selection and discussions with regulators about a pivotal trial.

PepGen Trading Down 1.1%

Shares of PEPG stock traded down $0.06 during trading hours on Thursday, reaching $5.20. 6,443,633 shares of the company’s stock were exchanged, compared to its average volume of 1,607,713. The stock has a market cap of $360.43 million, a PE ratio of -4.86 and a beta of 2.02. The stock’s fifty day moving average price is $2.74 and its two-hundred day moving average price is $2.98. PepGen has a 1 year low of $1.31 and a 1 year high of $7.80.

PepGen News Roundup

Here’s some of the latest news about PEPG:

• Positive Sentiment: In the FREEDOM2-DM1 trial, PGN-EDODM1 showed a mean 46.5% splicing correction, with reported functional improvements and a favorable safety profile at the tested dose. The results have helped drive buying interest and support plans to study a higher dose. PepGen Phase 2 data and cash position
• Negative Sentiment: PepGen priced a $125 million public offering of 25 million shares at $5 per share. The financing adds substantial capital for development, but issuing new shares dilutes existing shareholders. PepGen offering announcement
• Negative Sentiment: Investors should weigh the small trial sample—six treated patients, according to one report—and the continuing U.S. clinical hold, which limits near-term development prospects in the United States. Analysis of DM1 data and trial risks

Analyst Upgrades and Downgrades

PEPG has been the subject of a number of recent research reports. Wall Street Zen raised shares of PepGen from a “sell” rating to a “hold” rating in a research note on Saturday, November 7th. Wedbush increased their price target on shares of PepGen from $4.00 to $10.00 and gave the company an “outperform” rating in a report on Wednesday. Weiss Ratings upgraded PepGen from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, September 22nd. HC Wainwright reissued a “buy” rating on shares of PepGen in a research note on Wednesday, September 9th. Finally, Bank of America upgraded PepGen from an “underperform” rating to a “neutral” rating and upped their price objective for the company from $2.50 to $6.00 in a research report on Tuesday. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, PepGen currently has an average rating of “Moderate Buy” and an average price target of $11.50.

PepGen Company Profile

PepGen Inc. is a clinical-stage biotechnology company developing genetic medicines for serious neuromuscular diseases. The company’s technology is designed to improve the delivery of oligonucleotide therapeutics into skeletal and cardiac muscle, with the goal of addressing diseases caused by genetic mutations or abnormal RNA processing. PepGen’s platform, known as Enhanced Delivery Oligonucleotides (EDO), combines therapeutic oligonucleotides with proprietary peptides intended to facilitate their distribution into muscle tissue.