PepGen Skyrockets Over 120% on Breakthrough Drug Trial Results

Shares of PepGen (PEPG) skyrocketed over 121% in a massive volume surge after the company announced breakthrough results from a Phase 1 study of its experimental drug for myotonic dystrophy type 1 (DM1), a rare and debilitating genetic disorder.

The clinical-stage biotechnology company reported that its drug, PGN-EDODM1, demonstrated what it called an in patients. This result, observed in the highest-dose cohort of the FREEDOM-DM1 study, represents a significant step forward in treating the underlying cause of the disease, which currently has no approved therapies.

Following the news, PepGen's stock experienced its best day on record, driven by investor optimism about the drug's potential. The positive data marks a critical turning point for the company, which had previously discontinued other programs to focus on its DM1 treatment.

In a concurrent move to bolster its financial position for further development, PepGen also announced a . The company priced 31.25 million shares at $3.20 each to raise capital for advancing the DM1 program and other research initiatives. The offering is expected to provide the necessary funding to move PGN-EDODM1 into further clinical trials.

Analysts and investors have responded positively to the dual announcements, viewing the clinical results as a major de-risking event for the company's lead asset. According to the company's press release, the treatment was well-tolerated, with no serious adverse events reported, further boosting confidence in the drug's safety profile.

PepGen now plans to report results from its FREEDOM2-DM1 multiple ascending dose study in the first quarter of 2026, a key catalyst that Wall Street will be closely watching. The successful trial results and concurrent financing position PepGen to become a leader in the treatment of myotonic dystrophy, a field with high unmet medical need.