PepGen CMO Mellion resigns, effective April 4

PepGen Inc. (NASDAQ:PEPG), a pharmaceutical company specializing in drug preparations currently trading below its InvestingPro Fair Value, announced the departure of Chief Medical (TASE:BLWV) Officer Michelle L. Mellion, MD. Dr. Mellion’s resignation, effective at the close of business on April 4, 2025, was reported with no disagreements cited with the company. The announcement comes as PepGen maintains a strong liquidity position with a current ratio of 7.41, though InvestingPro data indicates the company is quickly burning through its cash reserves.

The resignation was made public through an 8-K filing with the Securities and Exchange Commission on Friday, March 28, 2025, with the actual resignation taking place on March 24, 2025. PepGen, headquartered in Boston, Massachusetts, affirmed that Dr. Mellion’s decision to step down was not due to any dispute or difference of opinion with the company’s practices, policies, or leadership. The company’s stock has faced significant challenges, with a 89% decline over the past year and current market capitalization of approximately $53 million.

Dr. Mellion’s career and her time as Chief Medical Officer at PepGen have been marked by her contributions to the company’s medical strategies and drug development initiatives. The announcement of her departure comes without immediate mention of a successor or the company’s plans for filling the vacancy.

As an emerging growth company, PepGen has now to navigate the transition in its executive team, ensuring continuity in its operations and maintaining investor confidence. The company has not provided further details on the reasons behind Dr. Mellion’s decision to resign or any future endeavors she might pursue. According to InvestingPro analysis, which offers 13 additional investment tips for subscribers, the company faces near-term challenges with analysts not anticipating profitability this year and an EBITDA of -$96.23 million in the last twelve months.

The information regarding this corporate change is based solely on the recent SEC filing by PepGen Inc. and contains only the facts presented in the document. The filing indicates no further changes in the company’s executive team or board of directors at this time. Investors and the market are now awaiting further announcements from PepGen regarding the implications of this departure on the company’s future medical and pharmaceutical strategies.

In other recent news, PepGen Inc. has announced the temporary suspension of its Phase 2 CONNECT2-EDO51 study for Duchenne muscular dystrophy (DMD) to focus on data from its CONNECT1-EDO51 study, with results expected in the third quarter of 2025. In parallel, PepGen is advancing its FREEDOM-DM1 Phase 1 trial for myotonic dystrophy type 1 (DM1), reporting significant splicing correction in patients, with a mean correction of 29.1% at the 10 mg/kg dose. The company’s promising DM1 trial results have been tempered by safety concerns in its DMD program, where two participants experienced asymptomatic hypomagnesemia, resolved with magnesium supplements. Health Canada has allowed the continuation of the CONNECT1 trial at current dosing levels, but further data is required before dose escalation. In the United States, the FDA has placed a clinical hold on the CONNECT2 trial, pending additional safety data. Analyst firms have responded to these developments, with Stifel lowering PepGen’s stock price target to $14 while maintaining a Buy rating, and H.C. Wainwright reducing its target to $16, also maintaining a Buy rating. Despite these challenges, PepGen continues to work with regulatory bodies to address safety questions and advance its clinical programs.

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