PepGen Inc. has successfully closed a $115 million underwritten public offering, providing crucial funding to advance its pipeline of oligonucleotide therapies targeting severe neuromuscular and neurological diseases. The clinical-stage biotechnology company sold 35,937,500 shares of common stock at $3.20 per share, with underwriters exercising their full option to purchase an additional 4,687,500 shares.
Funding to Accelerate Clinical Development
The net proceeds from this offering will primarily fund PepGen's ongoing research and clinical development efforts, with specific focus on the FREEDOM-DM1 and FREEDOM2-DM1 clinical trials. These funds will also support working capital and other general corporate purposes as the company advances its therapeutic pipeline.
Leerink Partners and Stifel served as joint bookrunning managers for the offering, which was conducted under a shelf registration statement declared effective by the Securities and Exchange Commission on July 8, 2024.
Enhanced Delivery Platform Technology
PepGen's approach centers on its Enhanced Delivery Oligonucleotide (EDO) platform, which represents over a decade of research and development. The platform leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics, addressing a key challenge in oligonucleotide drug delivery.
Using these EDO peptides, the company is developing a pipeline of oligonucleotide therapeutic candidates designed to target the root cause of serious diseases. This approach aims to transform treatment options for patients with severe neuromuscular and neurological conditions, where current therapeutic options remain limited.
Strategic Positioning in Oligonucleotide Therapeutics
The successful completion of this offering positions PepGen to advance its clinical programs at a critical juncture in oligonucleotide therapeutic development. The company's focus on enhancing delivery mechanisms addresses one of the fundamental challenges in this therapeutic class, potentially improving both efficacy and safety profiles of oligonucleotide-based treatments.
The FREEDOM clinical trial programs represent key milestones in PepGen's development strategy, with the fresh capital providing runway to execute these studies and potentially expand the clinical pipeline. The company's commitment to targeting the root causes of serious diseases aligns with the growing emphasis on precision medicine approaches in neuromuscular and neurological disorders.
