PepGen Inc. (PEPG) Rating Upgraded With 135% Upside Potential on FREEDOM Study Results

PepGen Inc. (PEPG) has been upgraded to 'Buy' by H.C. Wainwright, with a new price target of $12.00, a 135% increase from the previous target. The upgrade follows the company's FREEDOM single-dose study for DM1 patients, which showed a 53.7% mean splicing correction at 15 mg/kg. This is the highest level disclosed in DM1 patients to date, and the research firm believes it could lead to significant functional advancements. The company's financials have also shown impressive outperformance, with a return of 34.04% compared to the market's average of 13.10%.

PepGen Inc. (PEPG) has received a significant boost from H.C. Wainwright, which has upgraded the stock to 'Buy' and raised its price target to $12.00, a 135% increase from the previous target of $8.00. The upgrade follows the company's FREEDOM single-dose study for myotonic dystrophy type 1 (DM1) patients, which demonstrated a remarkable 53.7% mean splicing correction at 15 mg/kg. This is the highest level disclosed in DM1 patients to date, according to the research firm.

The study showed a generally favorable safety profile, with mild or moderate adverse events that were transient and manageable. One patient experienced a transient, reversible renal biomarker elevation that resolved without intervention, indicating potential ongoing safety considerations for the program. The firm highlighted that the nearly 54% splicing correction sets a new benchmark and suggests that repeat dosing could yield clinically meaningful functional benefits.

H.C. Wainwright outlined three scenarios for the upcoming first quarter 2026 MAD readout: a bull case with sustained 50% splicing correction driving the stock to $18-20, a base case with 30-35% correction stabilizing shares at $15-18, and a bear case with recurrent renal signals pulling the stock back to $1-2. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value.

In other recent news, PepGen Inc. reported significant advancements in its treatment for DM1. The company announced a mean splicing correction of 53.7% following a single 15 mg/kg dose in its Phase 1 FREEDOM-DM1 study, marking an unprecedented achievement in DM1 treatment. All patients in the 15 mg/kg cohort demonstrated improved splicing correction, highlighting the potential effectiveness of PepGen’s PGN-EDODM1 treatment. Additionally, PepGen has initiated an underwritten public offering of 31,250,000 shares of its common stock at $3.20 per share. This offering is expected to raise $100 million in gross proceeds, with the option for underwriters to purchase additional shares. The offering is set to close by late September 2025, pending customary closing conditions.

PepGen’s financials have shown impressive outperformance, with a return of 34.04% compared to the market's average of 13.10%. The company maintains a strong financial position, with a current ratio of 4.74 and more cash than debt on its balance sheet.

References

PepGen stock price target raised to $12 from $8 at H.C. Wainwright^[1] https://www.investing.com/news/analyst-ratings/pepgen-stock-price-target-raised-to-12-from-8-at-hc-wainwright-93CH-4255541
PepGen Announces Positive Initial Results, Including Robust Splicing Correction, from Ongoing FREEDOM-DM1 Trial in Patients with DM1^[2] https://www.businesswire.com/news/home/20250224773471/en/PepGen-Announces-Positive-Initial-Results-Including-Robust-Splicing-Correction-from-Ongoing-FREEDOM-DM1-Trial-in-Patients-with-DM1