Robbins LLP is Investigating Allegations that PepGen Inc. (PEPG) Misled Investors Regarding the Viability of its Drug Candidate

Robbins LLP reminds stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired PepGen Inc. (NASDAQ:PEPG) securities between March 7, 2024 and March 3, 2025. PepGen is a clinical-stage biotechnology company that focuses on the development of oligonucleotide therapeutics for use in the treatment of severe neuromuscular and neurologic diseases.  The Company’s lead product candidate was PGN-EDO51, a proprietary enhanced delivery oligonucleotide (“EDO”) peptide for the treatment of Duchenne muscular dystrophy (“DMD”).

The Allegations:

According to the complaint, defendants failed to disclose that: (i) PGN-EDO51 was less effective and safe than defendants had led investors to believe; (ii) the CONNECT2 study was dangerous or otherwise deficient for purposes of U.S. Food and Drug Administration (“FDA”) approval; (iii) as a result of all the foregoing, PepGen was likely to halt the CONNECT2 study, and PGN-EDO51’s clinical, regulatory, and commercial prospects were overstated; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The complaint alleges that on January 29, 2025, PepGen issued a press release providing updates regarding safety concerns observed in the CONNECT1 study and the FDA’s concerns regarding the CONNECT2 study.  With respect to the CONNECT1 study, the press release stated, inter alia, that “[d]osing of one of the[] . . . participants [in the 10 mg/kg cohort] was paused due to a reduction of his estimated glomerular filtration rate[.]”  In addition, PepGen “ha[d] received communication from Health Canada . . . request[ing] additional information from the Company to address Health Canada’s safety concerns before any further dose escalation or enrollment of any additional participants at the current dose levels.”  With respect to the CONNECT2 study, the same press release stated, in relevant part, that “[t]he Company is working with the FDA to address its questions regarding supportive data for the dosing levels planned for the patient population.” On this news, PepGen’s stock price fell $0.40 per share, or 21.74%, to close at $1.44 per share on January 30, 2025.

Then, on March 4, 2025, PepGen issued a press release “announc[ing] its voluntary decision to temporarily pause the [CONNECT2] study . . . until the Company can review results from the 10 mg/kg cohort in the ongoing [CONNECT1] study.”  On this news, PepGen’s stock price fell $0.53 per share, or 18.86%, to close at $2.28 per share on March 4, 2025.

What Now: You may be eligible to participate in the class action against PepGen Inc. Shareholders who want to serve as lead plaintiff for the class must file a motion for lead plaintiff by August 8, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.