PepGen Faces Securities Fraud Investigation Amid FDA Clinical Hold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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Should l Buy PEPG?
Source: Globenewswire
- FDA Clinical Hold: On March 4, 2026, PepGen announced that the FDA placed a partial clinical hold on its PGN-EDODM1 FREEDOM2-DM1 trial, raising concerns about previously submitted pharmacology and toxicology studies, which resulted in a stock price drop of $1.25, or 18.57%, on March 5.
- Clinical Data Release: On March 30, 2026, PepGen released clinical data from the FREEDOM2-DM1 trial, where despite the company labeling the results as 'promising', analysts noted a lack of significant improvement in handgrip strength or 10-meter walk/run tests, leading to a further stock decline of $2.46, or 58.16%, on March 31.
- Investor Investigation: Pomerantz LLP is investigating whether PepGen and its executives engaged in securities fraud or other unlawful practices, advising investors to contact them to join the class action, highlighting significant market concerns regarding corporate governance.
- Legal Background: Pomerantz LLP, a premier firm in corporate and securities class litigation, has a long history of advocating for victims of securities fraud and corporate misconduct, indicating that PepGen's legal challenges could adversely affect its future market performance.
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Analyst Views on PEPG
Wall Street analysts forecast PEPG stock price to rise
2 Analyst Rating
1 Buy
0 Hold
1 Sell
Hold
Current: 1.640
Low
3.00
Averages
11.50
High
20.00
Current: 1.640
Low
3.00
Averages
11.50
High
20.00
About PEPG
PepGen Inc. is a clinical-stage biotechnology company advancing the next generation of oligonucleotide therapies. The Company’s Enhanced Delivery Oligonucleotide (EDO) platform leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics. Its EDO peptides are engineered to optimize tissue penetration, cellular uptake and nuclear delivery. Using these EDO peptides, the Company is generating a pipeline of oligonucleotide therapeutic candidates designed to target the root cause of serious diseases. It is focused on addressing the underlying cause of Duchenne muscular dystrophy (DMD) and myotonic dystrophy type 1 (DM1), which have high unmet need. Its pipeline consists of two clinical stage programs, PGN-EDO51 for DMD patients who are amenable to an exon 51-skipping approach and PGN-EDODM1 for DM1 patients, and several additional preclinical stage programs. Its product candidates also include PGN-EDO53, PGN-EDO45 and PGN-EDO44.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of PepGen Inc. investors regarding potential securities fraud or other unlawful business practices, highlighting serious concerns over corporate governance and compliance.
- Clinical Trial Halted: On March 4, 2026, the FDA placed a partial clinical hold on PepGen's FREEDOM2-DM1 trial, questioning previously submitted pharmacology and toxicology studies, which led to an 18.57% drop in stock price to $5.50 per share the following day, reflecting investor apprehension about the company's prospects.
- Clinical Data Disappointment: Although PepGen characterized the March 30, 2026 clinical data as
See More
- FDA Clinical Hold: On March 4, 2026, PepGen announced that the FDA placed a partial clinical hold on its PGN-EDODM1 FREEDOM2-DM1 trial, raising concerns about previously submitted pharmacology and toxicology studies, which resulted in a stock price drop of $1.25, or 18.57%, on March 5.
- Clinical Data Release: On March 30, 2026, PepGen released clinical data from the FREEDOM2-DM1 trial, where despite the company labeling the results as 'promising', analysts noted a lack of significant improvement in handgrip strength or 10-meter walk/run tests, leading to a further stock decline of $2.46, or 58.16%, on March 31.
- Investor Investigation: Pomerantz LLP is investigating whether PepGen and its executives engaged in securities fraud or other unlawful practices, advising investors to contact them to join the class action, highlighting significant market concerns regarding corporate governance.
- Legal Background: Pomerantz LLP, a premier firm in corporate and securities class litigation, has a long history of advocating for victims of securities fraud and corporate misconduct, indicating that PepGen's legal challenges could adversely affect its future market performance.
See More
- Securities Fraud Investigation: Pomerantz LLP is investigating PepGen Inc. for potential securities fraud involving its officers, which could undermine investor confidence and lead to stock price volatility.
- Partial Clinical Hold: On March 4, 2026, PepGen announced that the FDA placed a partial hold on its PGN-EDODM1 clinical trial, raising concerns about previously submitted pharmacology and toxicology studies, potentially impacting future R&D progress.
- Significant Stock Price Drop: Following the FDA announcement, PepGen's stock fell by $1.25, or 18.57%, to close at $5.50 on March 5, 2026, reflecting market concerns about the company's outlook.
- Lack of Meaningful Improvement: On March 30, 2026, PepGen's clinical data was criticized by analysts for not showing significant improvements in patients' handgrip strength or 10-meter walk/run tests, leading to a further stock decline of $2.46, or 58.16%, to $1.77 on March 31, 2026.
See More
- Securities Fraud Investigation: Pomerantz LLP is investigating claims on behalf of PepGen Inc. investors regarding potential securities fraud or unlawful business practices, indicating serious concerns about corporate governance and accountability.
- Partial Clinical Hold: On March 4, 2026, PepGen announced that the FDA placed a partial clinical hold on its PGN-EDODM1 trial, raising questions about previously submitted pharmacology and toxicology studies, which significantly undermined investor confidence.
- Significant Stock Price Drop: Following the FDA announcement, PepGen's stock price fell by $1.25, or 18.57%, closing at $5.50 on March 5, 2026, reflecting a pessimistic outlook from the market regarding the company's future prospects.
- Lack of Meaningful Improvement: Although PepGen characterized the clinical data released on March 30, 2026, as
See More
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of PepGen Inc. investors regarding potential securities fraud or other unlawful business practices, highlighting serious concerns about corporate governance and compliance.
- Clinical Trial Halted: On March 4, 2026, PepGen announced that the FDA placed a partial clinical hold on its PGN-EDODM1 trial, raising questions related to previously submitted pharmacology and toxicology studies, which could impact the company's future R&D efforts.
- Stock Price Plummets: Following the FDA announcement, PepGen's stock price fell by $1.25, or 18.57%, closing at $5.50 per share on March 5, 2026, reflecting market pessimism regarding the company's outlook.
- Potential Legal Consequences: The investigation may lead to class action lawsuits against PepGen, further affecting its reputation and financial standing, prompting investors to closely monitor developments to assess potential risks.
See More
- FDA Clinical Hold: On March 4, 2026, PepGen disclosed that the FDA imposed a partial clinical hold on its PGN-EDODM1 FREEDOM2-DM1 trial due to concerns regarding previously submitted pharmacology and toxicology studies, which could hinder the company's future research and development efforts and erode market confidence.
- Sharp Stock Decline: Following the additional clinical data release on March 30, 2026, PepGen's stock price plummeted in after-hours trading, exacerbating investor losses and indicating a lack of market confidence in the company's clinical progress and future prospects.
- Investor Rights Investigation: Johnson Fistel, PLLP is investigating whether PepGen violated federal securities laws, urging investors who suffered losses from holding PepGen stock to join the investigation, which may provide legal support and compensation opportunities for affected investors.
- Law Firm Background: Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm, ranked among the Top 10 Plaintiff Law Firms in 2024, having recovered approximately $90.725 million for clients, showcasing its strong capabilities and influence in securities litigation.
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