PepGen Inc. (NASDAQ:PEPG) Reports Q2 2025 Earnings: Narrower Loss and Clinical Progress Amid Legal Uncertainties

PepGen Inc. (NASDAQ:PEPG) reported its second-quarter 2025 financial results, posting a net loss of $23.1 million, or $(0.70) per share, compared to a net loss of $28.3 million, or $(0.87) per share, in the same period last year. The company’s earnings per share (EPS) of -$0.70 slightly outperformed analyst estimates of -$0.8441, while revenue remained in line with expectations at $0.0.

Financial Performance vs. Estimates

• EPS Beat: The reported loss of $0.70 per share was better than the anticipated $0.8441 loss, suggesting slightly lower-than-expected operating expenses.
• Revenue Neutral: As a clinical-stage biotech firm, PepGen has no commercialized products, so its $0 revenue was unsurprising and matched forecasts.
• Cash Position: The company ended the quarter with $74.7 million in cash and equivalents, projecting a runway into Q2 2026.

Market Reaction

Following the earnings release, PepGen’s stock showed modest movement, with a 3.8% gain since the announcement. However, performance over the past two weeks has been slightly negative (-6.2%), possibly reflecting broader market sentiment or pre-earnings caution. The stock has risen 16.1% over the past month, suggesting some investor optimism ahead of key clinical updates.

Key Highlights from the Earnings Report

1. Clinical Progress:

   • The company completed dosing in the 15 mg/kg cohort of its FREEDOM Phase 1 trial for PGN-EDODM1, a potential treatment for myotonic dystrophy type 1 (DM1).
   • Topline data from this cohort is expected in early Q4 2025.
   • Resources are shifting to the FREEDOM2 Phase 2 trial, with initial results anticipated in Q1 2026.

2. Corporate Updates:

   • PepGen appointed Kasra Kasraian, PhD, as Chief Technology Officer in May 2025, bringing extensive biotech experience.
   • The company presented clinical and preclinical data at the 2025 Myotonic Dystrophy Foundation Conference, reinforcing confidence in its pipeline.

3. Financials:

   • R&D expenses decreased to $18.4 million (vs. $25.1 million in Q2 2024), reflecting a strategic shift in trial focus.
   • G&A expenses remained stable at $5.5 million.

Outlook vs. Analyst Estimates

PepGen did not provide formal financial guidance, but analysts project:

• Q3 2025 EPS Estimate: -$0.765 (no revenue expected).
• Full-Year 2025 EPS Estimate: -$3.09 (no revenue expected).

The lack of a revenue outlook is typical for pre-revenue biotech firms, so the market reaction hinges more on clinical progress than financials.

Legal Context

Recent headlines indicate that PepGen faces a securities lawsuit, with a deadline for investors to join by August 8, 2025. While this could introduce volatility, the immediate market response has been muted, suggesting investors are more focused on clinical milestones.

Conclusion

PepGen’s Q2 results reflect steady progress in its neuromuscular disease pipeline, with a slight EPS beat and controlled spending. The stock’s recent uptick suggests cautious optimism, though legal uncertainties may weigh on sentiment in the near term.

For more detailed earnings estimates and historical data, visit PepGen’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.