PepGen stock plunges to 52-week low at $1.16 amid market challenges

Published 13/02/2025, 15:42
PepGen stock plunges to 52-week low at $1.16 amid market challenges

PepGen Inc. (PEPG) stock has tumbled to a 52-week low, reaching a price level of just $1.16, as investors react to a series of market headwinds and company-specific challenges. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 8.47, though it’s quickly burning through its cash reserves. This latest price point marks a significant downturn for the biotechnology firm, which has seen its stock value erode by an alarming 90.98% over the past year. The steep decline reflects broader investor sentiment and a challenging environment for the sector, raising concerns about the company’s future performance and strategic direction. Despite the selloff, analyst price targets range from $3 to $20, and InvestingPro analysis suggests the stock may be undervalued at current levels. As PepGen grapples with these hurdles, market watchers and stakeholders are closely monitoring its efforts to stabilize and eventually recover from this low ebb. InvestingPro subscribers have access to 14 additional investment tips for PEPG, offering deeper insights into the company’s prospects.

In other recent news, PepGen Inc. is facing significant scrutiny as it continues its clinical trials for Duchenne muscular dystrophy (DMD) treatment. The company’s CONNECT1-EDO51 Phase 2 trial in Canada is under increased regulatory oversight after two participants experienced reversible side effects. Despite these safety signals, Health Canada has permitted the continuation of the trial but has requested further clarification on the safety findings before allowing higher dose escalations.

Simultaneously, PepGen’s CONNECT2-EDO51 Phase 2 trial in the United States has been put on clinical hold by the U.S. Food and Drug Administration (FDA), prompting a reassessment of the company’s financial outlook. H.C. Wainwright reduced its price target for PepGen to $16, maintaining a Buy rating, while BofA Securities downgraded the company’s shares to Underperform and lowered the price target to $3.

These developments have led to adjustments in the projected success probability for PepGen’s drug candidate, affecting the company’s stock target. Despite these challenges, PepGen is progressing with its trials, addressing safety concerns, and working closely with regulatory agencies to clarify the issues raised. These recent developments highlight the complexities and uncertainties inherent in the clinical trial process.

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