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BOSTON - Clinical-stage biotechnology company PepGen Inc. (NASDAQ:PEPG) has closed its previously announced underwritten public offering, raising $115 million in gross proceeds before deducting underwriting discounts, commissions and offering expenses. The company’s stock has shown remarkable momentum, surging over 210% in the past week. According to InvestingPro data, PepGen maintains a strong balance sheet with more cash than debt.
The company sold 35,937,500 shares of common stock at $3.20 per share, which included the full exercise of the underwriters’ option to purchase an additional 4,687,500 shares. Leerink Partners and Stifel acted as joint bookrunning managers for the offering.
According to the press release statement, 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.
PepGen is developing oligonucleotide therapies targeting severe neuromuscular and neurological diseases. The company’s Enhanced Delivery Oligonucleotide platform uses cell-penetrating peptides to improve the uptake and activity of oligonucleotide therapeutics.
The shares were offered through a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on July 8, 2024. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC on Wednesday.
In other recent news, PepGen Inc. has reported significant developments in its ongoing research and financial activities. The company announced that its experimental treatment for myotonic dystrophy type 1 (DM1) achieved a mean splicing correction of 53.7% in its Phase 1 FREEDOM-DM1 study. This result marks the highest splicing correction reported in DM1 patients to date, with all patients in the 15 mg/kg cohort showing improvement. Following these promising results, H.C. Wainwright raised its price target for PepGen to $12 from $8 while maintaining a Buy rating.
Additionally, PepGen has priced an underwritten public offering of 31,250,000 shares at $3.20 per share, aiming to raise $100 million in gross proceeds. The offering is expected to close soon, subject to customary conditions, with an option for underwriters to purchase additional shares. Leerink Partners and Stifel are managing this offering. These developments reflect PepGen’s ongoing efforts to advance its clinical programs and secure financial resources for future growth.
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