PepGen Inc

PepGen Inc. (NASDAQ: PEPG) is a biopharmaceutical company. The Company is engaged in developing a transformative oligonucleotide delivery technology and pipeline of product candidates to treat neuromuscular and neurologic diseases. Its enhanced delivery oligonucleotide (EDO), platform leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics.

Recent Financial and Business Updates:

• Recent Company Developments:
  • PepGen has embarked on a global strategic approach by initiating its Phase 1 FREEDOM-EDODM1 study of PGN-EDODM1 in patients with myotonic dystrophy type 1 (DM1) across multiple regions, subject to regulatory alignment.
  • In May 2023, PepGen revealed that it had received a clinical hold notification from the FDA pertaining to its Investigational New Drug Application (IND) aimed at commencing a Phase 1 trial of PGN-EDODM1 in DM1 patients. The company is actively collaborating with the FDA to expedite the resolution of this hold in the United States.
  • During the same month, PepGen made significant contributions to various platforms, including delivering three oral presentations at the 5th Annual RNATx Symposium. These presentations delved into the initial human findings from PGN-EDO51. The company also participated in the Meet the Drug Developers Webinar Series and the American Society of Cell and Gene Therapy Conference. PepGen's involvement extended to a Defeat Duchenne Canada webinar where they discussed PGN-EDO51.
• Upcoming Project Milestones
• PepGen has outlined its future targets, foreseeing the dosing of patients in the CONNECT1-EDO51 trial. This open-label, multiple ascending dose (MAD) Phase 2 study is set to take place in Canada during the latter part of 2023. Additionally, the company aims to initiate CONNECT2-EDO51, a Phase 2 multinational, randomized, double-blind, placebo-controlled MAD study (RCT), also planned for the second half of 2023.
• Financial Performance for the Three Months Ending June 30, 2023
  • As of June 30, 2023, PepGen held cash and cash equivalents totaling 147.0 million USD, providing funding for its current operational plans until early 2025.
  • Research and Development expenditures for the three months ending June 30, 2023, reached 16.9 million USD, marking an increase from 14.2 million USD during the same period in 2022. Similarly, General and Administrative expenses climbed to 4.2 million USD compared to 3.4 million USD in the same timeframe last year.
  • The net loss for the three months ending June 30, 2023, amounted to 19.5 million USD, surpassing the 17.3 million USD loss reported for the same period in 2022. PepGen's outstanding shares numbered approximately 23.8 million as of June 30, 2023.

Technical Observation (on the daily chart)

The price of PEPG stock has shown a consistent downward trend since making its 52-week high on March 24, 2023, with a correction of approximately 70.61%. The RSI (14 period) momentum indicator is in an uptrend with currently at a value of 42.12, with expectations of some consolidation. Moreover, the price is currently positioned between both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support and resistance levels respectively.

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As per the above-mentioned price action, key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to PepGen Inc. (NASDAQ: PEPG) at the current market price of USD 5.29 as of August 24, 2023, at 08:20 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The Yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 24, 2023. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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