H.C. Wainwright Starts PepGen Inc. (PEPG) at Buy

H.C. Wainwright analyst Andrew S. Fein initiates coverage on PepGen Inc. (NASDAQ: PEPG) with a Buy rating and a price target of $26.00.

The analyst comments "PGN-EDO51—addressing DMD unmet need by targeting cardiac muscle expression. PepGen is a clinical-stage biotechnology company developing the next generation antisense oligonucleotide therapeutics to treat severe neuromuscular and neurologic diseases. The company’s enhanced delivery oligonucleotide (EDO) platform is based on over a decade of research and development that leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics in tissues which have proven resistant to ASO treatments and develop therapeutics focused in neuromuscular, muscular, and central nervous system (CNS) diseases by optimizing tissue penetration, cellular uptake, and nuclear delivery of ASOs. We emphasize PepGen’s lead candidate is PGN-EDO51, a peptide conjugated ASO targeting Exon 51, which has shown significant exon skipping activity and dystrophin expression in cardiac muscle cells and in non-human primates, respectively, an unmet need in DMD therapy that we believe differentiates the program from other competitor ASO therapies such as Sarepta's SRP5051. More specifically, in healthy volunteers, single 10 mg/kg dose of PGN-EDO51 demonstrated robust exon skipping activity. Based on the preclinical and clinical data shared by the company and here discussed, we specifically expect mean dystrophin expression to be between 6-10% in skeletal muscles. The Phase 2a trial in DMD patients is anticipated to initiate in 1H2023 (details awaited), which we note could reflect pivotal development. Considering macro events in the DMD ASO space the stock might have considerable upside from FDA’s decision on SRP-9001, Sarepta’s gene therapy for the treatment of DMD, scheduled to be announced on May 29, 2023, and from SRP-5051's Phase 2 MAD data readout which might be announced in 2H2023. With these program advancements in mind, we are initiating with a Buy rating and $26 price target."

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Shares of PepGen Inc. closed at $14.51 yesterday.

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