HC Wainwright initiated coverage of PepGen IncPEPG with a Buy rating and $26 price target.
PepGen is developing next-generation antisense oligonucleotide (ASO) therapeutics for neuromuscular and neurologic diseases.
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.
The analyst says the candidate differentiates from competitor ASO therapies such as Sarepta’s SRP5051.
More specifically, in healthy volunteers, a single 10 mg/kg dose of PGN-EDO51 demonstrated robust exon-skipping activity.
Considering macro events in the Duchenne Muscular Dystrophy ASO space, the stock might have considerable upside from FDA’s decision on SRP-9001, Sarepta’s gene therapy for Duchenne, scheduled on May 29, 2023 and from SRP-5051’s Phase 2 data readout expected in 2H 2023, according to HC Wainwright.
The analyst assumes PGN-EDO51’s U.S. launch in 2025, with a PoS of 40% and a global peak sales of $289 million in 2034.
PEPG Price Action: PEPG shares are trading 4.82% higher at $15.21 Wednesday afternoon.
