Faruqi & Faruqi Investigates PepGen, Inc. Securities Class Action

Strategic Insights -

A federal securities class action has been filed against PepGen Inc. ("PepGen" or the "Company") (NASDAQ: PEPG), alleging that the Company and its executives made false and/or misleading statements regarding the efficacy and safety of PGN-EDO51, a treatment for Duchenne Muscular Dystrophy (DMD). The complaint alleges that the Company knew of potential safety concerns and risks associated with the CONNECT2 study and failed to disclose this information to investors. As a result, PepGen's stock price plummeted, causing significant losses for investors.

Key Takeaways:

  • The complaint alleges that PepGen and its executives made false and/or misleading statements about the efficacy and safety of PGN-EDO51, which led to a significant decline in the Company's stock price.
  • The CONNECT2 study was allegedly flawed or deficient, and PepGen knew of the potential risks associated with the study.
  • The FDA issued a clinical hold notice regarding the IND application for the CONNECT2 study, indicating concerns about patient safety and the study's deficiencies.
  • PepGen's stock price fell $5.55 per share, or 32.69%, on July 31, 2024, after a Stifel analyst noted that the dystrophin increase was below expectations.
  • The stock price fell further on December 16, 2024, and January 30, 2025, after PepGen announced safety concerns and FDA issues regarding the CONNECT2 study.
  • On March 4, 2025, PepGen announced its decision to temporarily pause the CONNECT2 study, and the stock price fell $0.53 per share, or 18.86%.
  • On May 28, 2025, PepGen announced that PGN-EDO51 did not achieve target dystrophin levels in the CONNECT1 study, and the Company chose to discontinue development of its DMD programs.
  • The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, and any member of the putative class may move the Court to serve as lead plaintiff.
  • Faruqi & Faruqi, LLP is investigating potential claims against PepGen and encourages investors who suffered losses to contact them directly.

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 stock price fell $0.17 per share, or 3.63%, to close at $4.51 per share on December 16, 2024.
  • The stock price fell $0.40 per share, or 21.74%, to close at $1.44 per share on January 30, 2025.
  • The stock price fell $0.53 per share, or 18.86%, to close at $2.28 per share on March 4, 2025.
  • PepGen's stock price has continued to decline since the announcement of the clinical hold notice and the pause of the CONNECT2 study.

Sources:

  • Newsfile Corp. - August 4, 2025 - "Faruqi & Faruqi, LLP Investigates PepGen, Inc. Securities Class Action"
  • Newsfile Corp. - August 4, 2025 - "Faruqi & Faruqi, LLP Investigates PepGen, Inc. Securities Class Action"
  • Stifel analyst report (date not specified)
  • Leerink Partners analyst report (date not specified)
  • PepGen press release - July 30, 2024
  • PepGen press release - December 16, 2024
  • PepGen press release - January 29, 2025
  • PepGen press release - March 4, 2025
  • PepGen press release - May 28, 2025