PepGen Stock Plummets 44% on Disappointing Trial Data

PepGen Shares Decline Sharply After Clinical Trial Update

PepGen Ltd. (NASDAQ:PEPG) shares experienced a significant 44% drop in after-hours trading. The decline followed the release of disappointing results from a clinical trial for its myotonic dystrophy type 1 treatment, PGN-EDODM1.

Overview of Trial Data

The biotechnology firm reported data from the 5 mg/kg dose cohort in its Phase 2 FREEDOM2-DM1 trial. Results showed a mean splicing correction of 7.3% for the treatment group, which was not substantially better than the 6.8% observed in the placebo group. The company highlighted that an outlier patient negatively skewed the results; excluding this patient, the mean splicing correction was 22.9%. Furthermore, no meaningful improvements were seen in key functional endpoints like the 10-meter walk/run test or handgrip strength at this dosage.

Market Impact and Future Outlook

Despite the setback, PGN-EDODM1 was generally well-tolerated with no serious adverse events reported. PepGen is continuing the trial and is currently dosing patients in a higher 10 mg/kg cohort. The company anticipates reporting data from this higher dose group in the second half of 2026. PepGen confirmed it has sufficient cash to fund operations into the second half of 2027, providing a financial runway to pursue further clinical development.

Summary

Investors reacted negatively to the 5 mg/kg dose data, leading to the sharp fall in stock price. Market focus now shifts to the upcoming results from the higher 10 mg/kg dose cohort, which will be critical in determining the future viability of PGN-EDODM1.

FAQ

Q: Why did PepGen stock fall significantly?
A: The stock dropped 44% due to disappointing Phase 2 clinical trial results for its myotonic dystrophy type 1 drug, which showed minimal efficacy at the 5 mg/kg dose compared to a placebo.

Q: What is the next step for PepGen's trial?
A: PepGen is proceeding with a higher dose cohort of 10 mg/kg and expects to release data for this group in the second half of 2026.

Source: Investing.com