PepGen Under Investigation for Securities Fraud Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
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Should l Buy PEPG?
Source: PRnewswire
- Securities Fraud Investigation: Pomerantz LLP is investigating on behalf of PepGen Inc. investors whether the company and its officers have engaged in securities fraud or other unlawful business practices, highlighting serious concerns regarding corporate governance.
- 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 could impact the company's future R&D efforts.
- Significant Stock Drop: 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 concerns about the company's outlook.
- Legal Firm Involvement: Pomerantz LLP, a prominent securities class action firm with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud, indicating heightened investor scrutiny on corporate governance and transparency.
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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: 4.520
Low
3.00
Averages
11.50
High
20.00
Current: 4.520
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.
- PEPG Trial Disappointment: PepGen's Phase 2 Freedom 2 study results showed no significant improvements in walking speed or hand strength at the starting dose of 5 mg/kg, leading to a 45% plunge in premarket trading, reflecting investor disappointment in the therapy's efficacy.
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- PHR Revenue Outlook Cut: Phreesia lowered its fiscal 2027 revenue outlook to $510 million to $520 million, below analyst expectations of $552.1 million, resulting in a 27% drop in share price and prompting downgrades from multiple brokerages.
- Market Sentiment Fluctuates: While retail sentiment for PEPG, SGMO, and PHR on Stocktwits was 'extremely bullish', the disappointing performance and unclear outlook have severely undermined investor confidence, reflecting a cautious attitude towards biotech stocks.
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- Securities Fraud Investigation: Pomerantz LLP is investigating on behalf of PepGen Inc. investors whether the company and its officers have engaged in securities fraud or other unlawful business practices, highlighting serious concerns regarding corporate governance.
- 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 could impact the company's future R&D efforts.
- Significant Stock Drop: 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 concerns about the company's outlook.
- Legal Firm Involvement: Pomerantz LLP, a prominent securities class action firm with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud, indicating heightened investor scrutiny on corporate governance and transparency.
See More
- Investigation Launched: Pomerantz LLP is investigating on behalf of PepGen Inc. investors regarding potential securities fraud or other unlawful business practices, indicating serious concerns about corporate governance.
- Clinical Trial Halted: 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 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: Pomerantz LLP, a prominent securities litigation firm, may initiate a class action against PepGen and its executives, further exacerbating the legal risks and financial pressures faced by the company.
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- Securities Fraud Investigation: Pomerantz LLP is investigating claims on behalf of PepGen Inc. investors regarding potential securities fraud or unlawful business practices, indicating significant scrutiny over the company's governance.
- Clinical Trial Hold: On March 4, 2026, PepGen announced that the FDA placed a partial clinical hold on its PGN-EDODM1 trial, raising concerns related to previously submitted pharmacology and toxicology studies, which could impact the company's future R&D efforts.
- Stock Price Decline: 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 concerns about the company's outlook.
- Law Firm's Reputation: Pomerantz LLP, a leading firm in securities class action litigation with over 85 years of experience, focuses on protecting the rights of victims of securities fraud and corporate misconduct, underscoring its authority and influence in the industry.
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- FDA Clinical Hold: On March 5, 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 significantly impact the company's research and development trajectory and market confidence.
- Sharp Stock Decline: Following the FDA announcement, PepGen's stock price plummeted during intraday trading on March 5, 2026, indicating investor anxiety over regulatory developments and uncertainty surrounding the FREEDOM2 clinical program, potentially leading to decreased investor confidence and capital outflows.
- Legal Investigation Initiated: Johnson Fistel, PLLP is investigating whether PepGen and its executives violated federal securities laws, and investors who suffered losses from PepGen stock are encouraged to join the investigation, which may affect the company's legal liabilities and future financial performance.
- Investor Rights Protection: Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm, ranked among the Top 10 Plaintiff Law Firms in 2024, reflecting its effectiveness in advocating for investors, which may attract more affected investors seeking legal recourse.
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- FDA Clinical Hold: PepGen's PGN-EDODM1 trial targeting myotonic dystrophy type 1 faces a partial clinical hold from the FDA due to concerns over submitted pharmacology and toxicology studies, potentially impacting the company's future R&D efforts.
- Trial Phase Impact: The hold affects the FREEDOM2-DM1 Phase 2 trial, and while the Phase 1 FREEDOM study data remains unchallenged, this decision may lead to delays in clinical progress, thereby affecting investor confidence.
- Data Submission Commitment: PepGen has committed to submitting additional analyses to the FDA, including recently unblinded FREEDOM data, indicating the company's dedication to addressing FDA inquiries swiftly to restore trial progress and maintain market position.
- Market Reaction: Following the FDA's announcement of the partial hold, PepGen shares continued to decline in premarket trading, reflecting market unease regarding the company's clinical trial outlook, which could negatively impact its financing and future growth.
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