Stock Markets March 30, 2026

PepGen Shares Plunge After Phase 2 5 mg/kg Cohort Shows Minimal Benefit

Stock tumbles as low-dose data show little separation from placebo; higher-dose results and cash runway noted

By Sofia Navarro PEPG
PepGen Shares Plunge After Phase 2 5 mg/kg Cohort Shows Minimal Benefit
PEPG

Shares of PepGen Ltd (NASDAQ:PEPG) plunged 44% in after-hours trading after the company disclosed Phase 2 FREEDOM2-DM1 data for the 5 mg/kg multiple ascending dose cohort. The treatment arm showed a mean splicing correction of 7.3% versus 6.8% for placebo, with six patients in the active group and two in placebo. Excluding one patient who experienced a marked worsening, the remaining five treated patients had a mean splicing correction of 22.9%. No meaningful functional improvements were observed at this dose, and PepGen is continuing to dose the 10 mg/kg cohort with data expected in the second half of 2026. The company reports it has cash to fund operations into the second half of 2027.

Key Points

  • PepGen shares dropped 44% in after-hours trading after release of 5 mg/kg cohort data from the Phase 2 FREEDOM2-DM1 trial.
  • Mean splicing correction was 7.3% with PGN-EDODM1 versus 6.8% for placebo; excluding one outlier, the mean for five treated patients was 22.9%.
  • No meaningful improvements were seen on the 10-meter walk/run test or handgrip strength at the 5 mg/kg dose; PGN-EDODM1 was generally well tolerated.

PepGen Ltd reported results from the 5 mg/kg multiple ascending dose cohort of its Phase 2 FREEDOM2-DM1 trial and saw its shares fall 44% in after-hours trading on Monday. The company released data showing limited separation between active treatment and placebo on the trial's primary biomarker measurement.

In the 5 mg/kg cohort, mean splicing correction with PGN-EDODM1 measured 7.3% compared with 6.8% for placebo. The cohort comprised eight patients randomized 6:2 to receive either PGN-EDODM1 or placebo every four weeks over a 12-week period. Six patients received active treatment and two received placebo.

PepGen highlighted that one treated patient was an outlier who demonstrated a substantial worsening in splicing correction of 70.8%, which pulled down the overall mean for the treated group. Removing that single outlier, the remaining five patients who received PGN-EDODM1 showed a mean splicing correction of 22.9%.

At the 5 mg/kg dose level, the trial did not record meaningful improvements on functional measures. Specifically, no significant gains were observed on the 10-meter walk/run test or in handgrip strength.

The company reported that PGN-EDODM1 was generally well tolerated in this cohort. No serious adverse events were reported, and all treatment-emergent adverse events considered related to dosing were classified as mild. Nausea was the most frequently reported adverse event. There were no treatment-related discontinuations and no adverse events linked to renal function.

Muscle tissue concentrations of PGN-EDODM1 were measured in five of six treated patients approximately one week after the fourth dose, with a mean concentration of 158 ng/g reported for those measurements.

PepGen is actively dosing the 10 mg/kg multiple ascending dose cohort of FREEDOM2, with five of eight patients having received up to three doses so far. The company intends to report data from the higher-dose cohort in the second half of 2026. PepGen also stated it has sufficient cash to fund operations into the second half of 2027.


Context and next steps

The 5 mg/kg cohort results show limited biomarker separation from placebo and no meaningful functional benefit at this dose level. Investors will be watching the 10 mg/kg cohort results due in the second half of 2026 for additional evidence on dose response. The company has indicated a cash runway into the second half of 2027.

Risks

  • Small cohort size and the presence of a single outlier substantially affected group averages, creating uncertainty in interpreting efficacy signals - impacts biotech and equity markets.
  • No meaningful functional improvement observed at the 5 mg/kg dose introduces uncertainty about clinical benefit at lower doses - impacts clinical development and investor sentiment in biotech.
  • Trial outcomes for the higher 10 mg/kg cohort remain pending, and future data will be necessary to assess dose response and program viability - impacts funding and development timelines.

More from Stock Markets

Advent to Acquire Minority Stake in Natura as Founders Leave Board Mar 30, 2026 Unilever Nears Agreement to Merge Food Unit with McCormick, Creating $60 Billion Combined Company Mar 30, 2026 Unilever Orders Global Hiring Freeze Citing Middle East Conflict and Energy Pressures Mar 30, 2026 Mexico Stocks Close Higher as Industrials and Consumer Names Lead Gains Mar 30, 2026 IMAX CEO Begins Temporary Medical Leave as Senior Team Assumes Day-to-Day Duties Mar 30, 2026