Oppenheimer initiated coverage of PepGen with an Outperform rating and $15 price target. The firm notes PepGen is a clinical-stage myotonic dystrophy type 1 company employing a cell-penetrating peptide aiming to optimize drug delivery. Despite its best-in-class efficacy in DM1, PepGen has been under pressure due to concerns that kidney adverse events observed with its Duchenne muscular dystrophy program could potentially reemerge in DM1, Oppenheimer notes. Although kidney safety is a credible risk, the firm's analysis of safety data suggests the 10mg/kg dose can balance acceptable safety with potentially best-in-class efficacy.
