PepGen downgraded to Neutral at BofA after DMD data reported

BofA downgraded PepGen (PEPG) to Neutral from Buy with a price target of $12, down from $19, after the company reported data from the first dose cohort of PGN-EDO51, its lead investigational candidate for patients with Duchenne muscular dystrophy, or DMD, whose mutations are amenable to an exon 51-skipping approach. Three patients dosed at 5mg/kg Q4W showed mean absolute dystrophin expression of 0.61%, representing a 0.26% change from baseline at three months, notes the analyst, who contends that while the three month data are indicative of potential efficacy, they introduce “some new questions, including how much more efficacious will the higher doses be and what potential safety observations could be.” For now, the firm takes “a more conservative near-term view” on the program given the lack of clear differentiation from competitor programs and Sarepta’s (SRPT) expansion of Elevidys to all patients, the analyst tells investors.