PepGen Inc

PepGen Inc. (NASDAQ: PEPG) is a clinical-stage biotechnology company. The Company is engaged in advancing the next generation of oligonucleotide therapeutics with the goal of transforming the treatment of severe neuromuscular and neurologic diseases. Its proprietary enhanced delivery oligonucleotide (EDO), platform leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics. Its EDO peptides are engineered to optimize tissue penetration, cellular uptake and nuclear delivery.

Recent Business and Financial Updates

• Clinical Trial Updates and Financial Highlights for 2024
  • Preliminary Data Expectations: CONNECT1-EDO51 Trial: Preliminary data from the 5mg/kg dose cohort in the CONNECT1-EDO51 trial is anticipated by mid-2024. This Phase 2 trial evaluates PGN-EDO51 for Duchenne Muscular Dystrophy (DMD) and focuses on safety, exon 51 skipping, and dystrophin production. FREEDOM1-DM1 Trial: Preliminary data from at least the 5mg/kg dose cohort in the FREEDOM1-DM1 trial is expected in the second half of 2024. This Phase 1 trial assesses PGN-EDODM1 for Myotonic Dystrophy 1 (DM1) and will include safety, splicing correction, and functional outcome measures.
  • Recent Program Highlights: PGN-EDO51 for DMD: PGN-EDO51, PepGen's lead investigational candidate, leverages Enhanced Delivery Oligonucleotide (EDO) technology to target exon 51 of the dystrophin transcript, benefiting approximately 13% of DMD patients. The CONNECT1-EDO51 trial in Canada and the upcoming CONNECT2-EDO51 trial in the UK aim to support accelerated approval pathways. PGN-EDO51 has received Orphan Drug and Rare Pediatric Disease Designations from the FDA.
  • PGN-EDODM1 for DM1: PGN-EDODM1 uses EDO technology to restore MBNL1's normal splicing function. The FREEDOM-DM1 trial evaluates its efficacy in DM1 patients. The trial includes sites in the U.S., Canada, and the UK. Preliminary data from this trial will be available in the latter half of 2024. PGN-EDO53 for DMD: PGN-EDO53 targets exon 53 of the dystrophin transcript, addressing approximately 8% of DMD patients. This candidate is advancing through investigational new drug (IND) and clinical trial application (CTA) enabling nonclinical studies.
• Corporate and Financial Updates
  • Funding and Financials: PepGen has secured net proceeds of USD 86.3 million from recent stock offerings, extending its cash runway into 2026. As of March 31, 2024, the company held USD 175.2 million in cash, cash equivalents, and marketable securities. Research and Development expenses were USD 14.7 million for the first quarter of 2024, compared to USD 14.4 million in Q1 2023. General and Administrative expenses increased to USD 5.1 million from USD 3.7 million in the same period. The net loss for the quarter was USD 18.0 million, up from USD 16.3 million in Q1 2023. The company had approximately 32.4 million shares outstanding as of March 31, 2024.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands upward trending with value of 68.65, with expectations of a consolidation or an upward momentum. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels. The current price is near an important resistance zone of USD 17-USD 19, if broken on the upside will lead to continuation of the upward trend.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to PepGen Inc. (NASDAQ: PEPG) at the closing market price of USD 16.32 as of May 30, 2024.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 30, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.