BofA Lifts PepGen (PEPG) PT to $3 on Positive DM1 Data Despite Underperform Rating

PepGen Inc. (NASDAQ:PEPG) is one of the hot stocks to buy with huge upside potential. On October 9, BofA raised the firm’s price target on PepGen to $3 from $1 and maintained an Underperform rating on the shares. This sentiment came out as the firm updated its financial model to assign a standalone value to the DM1 program following positive early Phase 1 data that showed splicing correction.

The DM1 program refers to the company’s investigational drug, PGN-EDODM1, for treating Myotonic Dystrophy Type 1/DM1 by using its proprietary Enhanced Delivery Oligonucleotide/EDO technology.  As of now, the firm needs more information regarding the translation of this splicing correction to a functional benefit and the degree of splicing correction observed after repeat dosing.

Bank of America also reminded investors that PepGen is behind its competitors in the development timeline, and it is still unclear if the company will be able to pursue an accelerated approval pathway.

PepGen Inc. (NASDAQ:PEPG) is a clinical-stage biotechnology company that develops oligonucleotide therapeutics for the treatment of severe neuromuscular and neurologic diseases in the US.

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Disclosure: None. This article is originally published at Insider Monkey.