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PepGen chief medical officer sells $168k in stock, buys shares at lower price

Published 27/06/2024, 06:30 am
PEPG
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PepGen Inc. (NASDAQ:PEPG) Chief Medical Officer, Michelle L. Mellion, engaged in transactions involving the company's common stock on June 24, according to a recent SEC filing. Mellion sold a total of 9,260 shares at an average price of $18.19, netting approximately $168,427. On the same day, she also acquired the same number of shares at $10.21 each, totaling around $94,544.

The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling securities to avoid accusations of insider trading. The plan was adopted by Mellion on January 19, 2024. The weighted average sale price of $18.19 was part of multiple transactions ranging from $18.00 to $18.75 per share. Mellion has offered to provide detailed information regarding the individual sales prices upon request.

In addition to the sale, Mellion exercised options to buy 9,260 shares of PepGen stock. The transactions were part of an ongoing option exercise schedule where the options vest over four years with a quarter of the shares vesting on the first anniversary, and the remainder vesting in monthly installments thereafter, contingent on continued service.

Following these transactions, Mellion's direct ownership in PepGen Inc. stands at 80,498 shares. The stock option exercised has an expiration date set for June 30, 2032.

PepGen Inc., headquartered in Boston, Massachusetts, operates in the pharmaceutical preparations industry, focusing on developing transformative therapies for individuals with debilitating diseases.

In other recent news, PepGen Inc., a Boston-based pharmaceutical company, reported significant changes in its executive roles and corporate governance, along with advancements in its clinical pipeline. PepGen recently promoted Dr. Michelle Mellion to Chief Medical Officer and Dr. Hayley Parker to Senior Vice President, Global Regulatory Affairs, highlighting their instrumental roles in the company's clinical development and regulatory strategies.

In its corporate governance, PepGen's shareholders approved an amendment limiting the liability of certain officers, aligning with recent changes to Delaware law. This Officer Exculpation Amendment, as well as the election of two Class II directors and the ratification of KPMG LLP as the company's independent registered public accounting firm for 2024, were key outcomes of the company's 2024 Annual Meeting of Stockholders.

Furthermore, PepGen received orphan drug and rare pediatric disease designations from the U.S. Food and Drug Administration (FDA) for its investigational drug PGN-EDO51, aimed at treating Duchenne muscular dystrophy. These designations are expected to expedite the development and review process of treatments for rare diseases. The company anticipates preliminary data from its ongoing CONNECT1 Phase 2 trial this year and plans to commence the CONNECT2 Phase 2 trial later. These developments are part of PepGen's recent activities aimed at advancing its clinical pipeline.

InvestingPro Insights

PepGen Inc. (NASDAQ:PEPG) has been under the investor's microscope recently, particularly following the insider stock transactions by Chief Medical Officer, Michelle L. Mellion. To provide a broader financial context to these transactions, we turn to the latest data and insights from InvestingPro.

InvestingPro Data indicates that PepGen Inc. currently has a market capitalization of $543.64 million, reflecting the company's value as perceived by the market. Despite the insider's confidence suggested by the stock transactions, the company's P/E ratio stands at -4.3, with an adjusted figure for the last twelve months as of Q1 2024 at -6.83, highlighting that the company is not currently profitable.

The company's EBITDA for the same period was reported at -$85.12 million with a growth rate of -18.45%, further underscoring the financial challenges the company faces. However, in terms of stock performance, the company has seen a significant 1 Year Price Total Return of 75.79%, with a particularly strong return over the last six months, amounting to 136.86%.

InvestingPro Tips for PepGen Inc. suggest that while the company holds more cash than debt, which is a positive sign for liquidity, it also suffers from weak gross profit margins. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio. Yet, the company's liquid assets do exceed its short-term obligations, providing some financial stability.

For readers looking to delve deeper into the financial health and future prospects of PepGen Inc., InvestingPro offers additional tips, with a total of 11 detailed insights available at https://www.investing.com/pro/PEPG. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable tips and more.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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