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Securities law

Faruqi & Faruqi Investigates PepGen Class Action

Strategic Insights

— 2 min read

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PepGen Inc. ("PepGen" or the "Company") (NASDAQ: PEPG) concerning allegations that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that PepGen's clinical, regulatory, and commercial prospects were overstated due to issues with its PGN-EDO51 and CONNECT2 studies. The complaint alleges that PepGen's stock price fell significantly after disclosures regarding safety concerns, FDA's clinical hold notice, and ultimately, the Company's decision to discontinue development of its DMD programs.

Key Takeaways:

  • The suit alleges that PepGen and its executives made false and/or misleading statements regarding the effectiveness and safety of PGN-EDO51 and the CONNECT2 study, leading to a fall in the Company's stock price.
  • PepGen's stock price fell by 32.69% to close at $11.43 per share on July 31, 2024, after a Stifel analyst noted that the dystrophin increase was below what PepGen anticipated.
  • The FDA issued a clinical hold notice for the IND application, indicating concerns regarding risks posed to patients in the CONNECT2 study.
  • PepGen's stock price fell by 3.63% to close at $4.51 per share on December 16, 2024, after the FDA's clinical hold notice.
  • The Company issued a press release providing updates on safety concerns observed in the CONNECT1 study and the FDA's concerns regarding the CONNECT2 study.
  • PepGen's stock price fell by 21.74% to close at $1.44 per share on January 30, 2025, after the disclosures regarding safety concerns and FDA's clinical hold notice.
  • The Company decided to temporarily pause the CONNECT2 study until review of results from the 10 mg/kg cohort in the ongoing CONNECT1 study.
  • PepGen's stock price fell by 18.86% to close at $2.28 per share on March 4, 2025, after the temporary pause of the CONNECT2 study.
  • The Company announced that PGN-EDO51 did not achieve target dystrophin levels in the CONNECT1 study and had chosen to discontinue development of its DMD programs.

Statistics:

  • PepGen's stock price fell $5.55 per share, or 32.69%, to close at $11.43 per share on July 31, 2024.
  • The Company's stock price fell by 3.63% to close at $4.51 per share on December 16, 2024.
  • PepGen's stock price fell by 21.74% to close at $1.44 per share on January 30, 2025.
  • The Company's stock price fell by 18.86% to close at $2.28 per share on March 4, 2025.

Sources:

  • GlobeNewswire, "Faruqi & Faruqi, LLP Investigates PepGen Inc. (PEPG) Over Allegations of Securities Fraud" (August 5, 2025)
  • PepGen Inc., "PepGen Announces Positive Clinical Data from the First Dose Cohort (5 mg/kg) of PGN-EDO51" (July 30, 2024)
  • PepGen Inc., "PepGen Issued a Clinical Hold Notice from the FDA on its IND Application" (December 16, 2024)
  • PepGen Inc., "Update on Safety Concerns Observed in the CONNECT1 Study and FDA's Concerns Regarding the CONNECT2 Study" (January 29, 2025)
  • PepGen Inc., "PepGen Announces Temporary Pause of the CONNECT2 Study" (March 4, 2025)
  • PepGen Inc., "PepGen Announces Discontinuation of Development of Its DMD Programs" (May 28, 2025)

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