PepGen (PEPG) Q1 2026 earnings summary

Executive summary

• Amended and restated employment agreements were executed for the CEO, CFO, Head of R&D, Chief Business and Legal Officer, and CTO, effective March 3, 2026.

• FREEDOM2-DM1 5 mg/kg cohort showed favorable safety, splicing, and vHOT data, supporting further dose escalation in the ongoing 10 mg/kg cohort.

• The 10 mg/kg cohort is fully enrolled, with data expected in the second half of 2026; 12.5 mg/kg cohort data anticipated in 2027.

• Regulatory clearance obtained to expand FREEDOM2 trial to South Korea, Australia, and New Zealand; sites active in Canada, UK, and South Korea.

• All agreements supersede prior arrangements except for continuing obligations and equity documents.

Significant events and developments

• Each executive's agreement specifies at-will employment, annual base salary, target bonus, eligibility for benefits, and equity awards governed by existing plans.

• Severance and change-in-control provisions are detailed, including salary continuation, bonus proration, COBRA premium payments, and accelerated equity vesting upon qualifying termination events.

• Restrictive covenants, including confidentiality, non-solicitation, and non-competition, remain in force for all executives.

• Agreements include compliance with Section 409A of the Internal Revenue Code and specify procedures for dispute resolution and jurisdiction.

• FDA granted Orphan Drug and Fast Track Designations to PGN-EDODM1 for DM1.

Financial highlights

• Cash, cash equivalents, and marketable securities totaled $132.3 million as of March 31, 2026, sufficient to fund operations into the second half of 2027.

• Research and development expenses were $13.0 million for Q1 2026, down from $25.4 million in Q1 2025.

• General and administrative expenses remained flat at $5.9 million year-over-year.

• Net loss was $17.8 million ($0.26 per share) for Q1 2026, compared to $30.2 million ($0.92 per share) in Q1 2025.

• 69.1 million shares outstanding as of March 31, 2026.