PepGen prices common stock offering at $3.20 per share to raise $100m

BOSTON - PepGen Inc. (NASDAQ:PEPG) has priced an underwritten public offering of 31,250,000 shares of its common stock at $3.20 per share, the clinical-stage biotechnology company announced Thursday. The offering is expected to generate $100 million in gross proceeds before deducting underwriting discounts, commissions and offering expenses. According to InvestingPro data, the company currently holds more cash than debt on its balance sheet, though it has been rapidly burning through its cash reserves.

The offering is scheduled to close on or about September 26, 2025, subject to customary closing conditions. PepGen has also granted the underwriters a 30-day option to purchase up to an additional 4,687,500 shares at the public offering price, less underwriting discount.

Leerink Partners and Stifel are serving as joint bookrunning managers for the transaction.

PepGen plans to use the net proceeds to fund ongoing research and clinical development efforts, including its FREEDOM-DM1 and FREEDOM2-DM1 clinical trials, as well as for working capital and general corporate purposes.

The securities are being offered through a previously filed and effective registration statement on Form S-3. A final prospectus supplement and accompanying prospectus related to the offering will be filed with the Securities and Exchange Commission.

PepGen focuses on developing oligonucleotide therapies for severe neuromuscular and neurological diseases using its Enhanced Delivery Oligonucleotide platform, which leverages cell-penetrating peptides to improve uptake and activity of therapeutics.

The information in this article is based on a company press release statement.

In other recent news, PepGen Inc. reported positive results from its Phase 1 FREEDOM-DM1 study. The company announced that its experimental treatment for myotonic dystrophy type 1 achieved a mean splicing correction of 53.7% following a single 15 mg/kg dose. All six patients in the study showed improved splicing correction, which is a critical measure of the treatment’s effectiveness. Additionally, PepGen has commenced an underwritten public offering of its common stock and pre-funded warrants. The company plans to grant underwriters a 30-day option to purchase additional shares. Leerink Partners and Stifel are serving as joint book-running managers for this offering. The offering is subject to market conditions, and its completion is not guaranteed. These developments highlight PepGen’s ongoing efforts in advancing its treatment pipeline and securing financial resources.

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