Why This PepGen Analyst Is Bullish On The Biotech Stock

HC Wainwright initiated coverage of PepGen Inc PEPG with a Buy rating and $26 price target.
PepGen is developing next-generation antisense oligonucleotide (ASO) therapeutics for neuromuscular and neurologic diseases.
PepGen's lead candidate is PGN-EDO51, a peptide-conjugated ASO targeting Exon 51, which has shown significant exon-skipping activity and dystrophin expression in cardiac muscle cells.
The analyst says the candidate differentiates from competitor ASO therapies such as Sarepta's SRP5051.
More specifically, in healthy volunteers, a single 10 mg/kg dose of PGN-EDO51 demonstrated robust exon-skipping activity.
Related: PepGen's Duchenne Candidate Has Potential For Greater Exon Skipping Capabilities At Lower Doses Versus Sarepta's Candidate, Says Analyst.
Considering macro events in the Duchenne Muscular Dystrophy ASO space, the stock might have considerable upside from FDA's decision on SRP-9001, Sarepta's gene therapy for Duchenne, scheduled on May 29, 2023 and from SRP-5051's Phase 2 data readout expected in 2H 2023, according to HC Wainwright.
The analyst assumes PGN-EDO51's U.S. launch in 2025, with a PoS of 40% and a global peak sales of $289 million in 2034.
PEPG Price Action: PEPG shares are trading 4.82% higher at $15.21 Wednesday afternoon.

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