Capstone Holding Corp. lowers convertible note conversion price to $1.00
In a recent financial disclosure, Mary Beth DeLena, General Counsel of PepGen Inc. (NASDAQ:PEPG), reported a sale of company stock valued at approximately $2,405. The transaction, which took place on February 26, 2025, involved the sale of 1,432 shares at a price of $1.68 per share, slightly above the current trading price of $1.53. This sale was conducted to meet tax withholding obligations associated with the vesting of performance-based restricted stock units. The stock, which has seen a 90% decline over the past year, currently trades significantly below analysts’ target range of $3-20 per share. According to InvestingPro analysis, PepGen appears undervalued at current levels.
Earlier, on February 24, 2025, DeLena acquired 3,000 shares of common stock at no cost, following the achievement of a performance condition as determined by the company’s Compensation Committee. This acquisition was part of a performance-based stock unit grant under PepGen’s 2022 Stock Option and Incentive Plan. Following these transactions, DeLena holds 1,568 shares of PepGen’s common stock, representing a small portion of the company’s $55.9 million market capitalization. Discover more insights about PEPG’s valuation and 12+ additional analysis tips with InvestingPro.
In other recent news, PepGen Inc. has reported promising initial data from its FREEDOM-DM1 Phase 1 trial, showing significant splicing correction in patients with myotonic dystrophy type 1 (DM1) after a single dose of PGN-EDODM1. The study showed a 29.1% mean splicing correction at the higher 10 mg/kg dose, with the drug demonstrating a favorable safety profile. Despite these positive results, Stifel analysts have adjusted their price target for PepGen to $14 from $17, maintaining a Buy rating due to uncertainties around functional data interpretation and ongoing regulatory concerns. Meanwhile, H.C. Wainwright also reduced its price target to $16 from $26, following safety data from the CONNECT1-EDO51 Phase 2 trial, which showed reversible hypomagnesemia in participants. The trial in Canada continues, but Health Canada has requested additional safety information before allowing higher doses. The U.S. FDA has placed a clinical hold on the CONNECT2-EDO51 trial, leading BofA Securities to downgrade PepGen to Underperform and cut the price target to $3 from $6. BofA cited the repeated clinical holds as a reason for reassessing the value of PepGen’s platform. Despite these challenges, PepGen remains committed to advancing its clinical programs and addressing regulatory inquiries.
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