PepGen Inc. reported its financial results for the first quarter of 2026, revealing a net loss of $17.8 million, a significant improvement compared to a net loss of $30.2 million in the same period last year. The company’s operating expenses decreased to $18.9 million from $31.3 million, primarily driven by a reduction in research and development costs, which fell from $25.4 million to $13.0 million. This decline was attributed to decreased manufacturing costs and personnel-related expenses, including a reduction in stock-based compensation.
The company’s cash and cash equivalents, along with marketable securities, totaled $132.3 million as of March 31, 2026, down from $150.9 million at the end of 2025. PepGen's accumulated deficit increased to $378.9 million, reflecting its ongoing investment in research and development without generating revenue from product sales. The company has not yet achieved profitability and continues to rely on equity financing to fund its operations, having raised significant capital through various offerings, including a recent $1.5 million from the sale of common stock under its At-the-Market program.
Operationally, PepGen is focused on advancing its lead product candidate, PGN-EDODM1, for the treatment of myotonic dystrophy type 1 (DM1). The company is currently conducting the FREEDOM2 Phase 2 clinical trial, which has received regulatory clearance in several countries, including Canada and the UK. The trial is designed to assess the safety and efficacy of PGN-EDODM1, and preliminary results have shown promising splicing correction rates. However, the trial remains on partial clinical hold in the U.S. as the company works with the FDA to address regulatory questions.
In terms of strategic developments, PepGen has made significant changes to its workforce and operational focus, having discontinued its research and development efforts related to Duchenne muscular dystrophy (DMD) in May 2025. The company plans to expand its headcount to support ongoing clinical trials and regulatory activities. As of March 31, 2026, PepGen employed a total of 69 employees, reflecting its commitment to enhancing its research and development capabilities.
Looking ahead, PepGen anticipates that its existing cash reserves will be sufficient to fund operations into the second half of 2027. However, the company acknowledges the need for additional funding to support its clinical development and commercialization efforts. The management remains optimistic about the potential of PGN-EDODM1 and is focused on navigating the complexities of drug development and regulatory approval processes.
About PepGen Inc.
PepGen Inc. is a biotechnology company developing oligonucleotide therapeutics using its proprietary Enhanced Delivery Oligonucleotide (EDO) platform. Focused on neuromuscular and neurological diseases like Duchenne muscular dystrophy and myotonic dystrophy, it leverages cell-penetrating peptides to improve tissue delivery and efficacy. Its pipeline includes clinical-stage exon-skipping and splicing correction programs, aiming to address genetic root causes with enhanced safety, potency, and scalability.
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