PepGen Inc.: A Stock with Upside Potential

PepGen Inc. (NASDAQ:PEPG) stands out as one of the stocks with significant upside potential. On October 9, Bank of America raised the company's price target to $3 per share; however, they maintained an Underperform rating. This commentary came as they updated their financial model to assign an independent value to the company's DM1 program. The updated model is supported by positive early Phase 1 data demonstrating splicing correction.

DM1 program refers to the research-stage drug PGN-EDODM1 that the company is developing for Myotonic Dystrophy Type 1. This treatment utilizes the company's proprietary Enhanced Delivery Oligonucleotide (EDO) technology. The company is currently working to gather more information on how this splicing correction can translate into functional benefits and is conducting studies to understand the splicing correction observed after re-dosing.

Bank of America reminded investors that PepGen has fallen behind its competitors in the development timeline. Whether the company can pursue an accelerated approval pathway remains uncertain.

PepGen Inc. (NASDAQ:PEPG) is a clinical-stage biotechnology company developing oligonucleotide therapies for the treatment of severe neuromuscular and neurological diseases in the U.S. While acknowledging the investment potential of PEPG, we believe that some artificial intelligence stocks offer greater upside potential and carry less downside risk.