PepGen Inc. posted a net loss of $18.03 million for the third quarter ended September 30, 2025, a 16% improvement from the $21.4 million loss reported for the same period last year. The loss per share of $0.52 beat the consensus estimate of $0.56, largely because operating expenses fell to $18.65 million, driven by a $4.3 million reduction in research and development spending compared with $17.7 million in Q3 2024. The company’s cash, cash equivalents and market‑able securities stood at $163.7 million, giving it a runway that extends into the second half of 2027.
The FREEDOM‑DM1 trial’s 15 mg/kg cohort achieved a 53.7% mean splicing‑correction rate, the highest reported to date for any DM1 patient cohort. This milestone validates PepGen’s Enhanced Delivery Oligonucleotide platform and supports the company’s strategy to advance the program toward regulatory approval. In the parallel FREEDOM2 study, all 20 patients in the 5 mg/kg cohort have received at least one dose, and the company expects first‑quarter 2026 readout data, providing an early safety and efficacy signal in a larger, multi‑dose setting.
PepGen closed a $115 million financing in September 2025, a transaction that has extended the company’s cash runway to the second half of 2027. The capital infusion allows PepGen to continue investing in its lead DM1 program without immediate dilution or financial distress, reinforcing its long‑term development trajectory.
James McArthur, Ph.D., President and CEO, said the quarter was defined by the strong FREEDOM‑DM1 results, noting that the high levels of splicing correction “have the potential to translate into meaningful functional improvements” in patients. He added that the financing “positions the company well to advance FREEDOM2 and further validate the therapeutic potential of PGN‑EDODM1.”
Analysts have responded positively to the data and financing, upgrading their outlooks on the company’s prospects. The strong clinical signal and extended runway have alleviated some of the typical headwinds faced by clinical‑stage biotechs, such as funding uncertainty and regulatory risk.
Looking ahead, PepGen expects the Q1 2026 readout from FREEDOM2 to confirm the safety and efficacy profile observed in the 15 mg/kg cohort. The company remains focused on progressing PGN‑EDODM1 toward regulatory approval while maintaining disciplined cost management to preserve its extended cash runway.
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