0001193125-26-091536
SEC filingPepGen Inc. reported a net loss of $89.7 million for fiscal year 2025, a slight improvement from a $90.0 million loss in 2024. The company generated no revenue, with total operating expenses of $93.6 million, primarily driven by $71.0 million in research and development costs for its lead candidate PGN-EDODM1 and $22.6 million in general and administrative expenses. The company ended the year with $148.5 million in cash, cash equivalents, and marketable securities, providing a runway into the second half of 2027. Key developments included positive Phase 1 data for PGN-EDODM1, the discontinuation of the PGN-EDO51 program, and a $107.6 million public offering completed in September 2025.
PepGen Inc. reported a net loss of $89.7 million for the fiscal year ended December 31, 2025, a marginal improvement from a $90.0 million loss in the prior year. The company generated no revenue, consistent with its clinical-stage status. Total operating expenses were $93.6 million, comprising $71.0 million in research and development and $22.6 million in general and administrative costs. Other income contributed $4.0 million, primarily from interest income. The net loss per share was $2.00, unchanged from 2024. The company's cash position was strengthened by a $107.6 million public offering in September 2025, ending the year with $148.5 million in cash, cash equivalents, and marketable securities.
The company is a clinical-stage biotechnology company with no products approved for commercial sale and has not generated any revenue from product sales. All financial resources are directed toward research and development activities, primarily focused on advancing its lead product candidate, PGN-EDODM1, for the treatment of myotonic dystrophy type 1 (DM1). The company's ability to generate future revenue is entirely dependent on the successful development, regulatory approval, and commercialization of its product candidates, which is not expected for several years, if ever.
As a pre-revenue company, traditional margin analysis is not applicable. The company's financial results are dominated by operating losses driven by research and development expenditures. Research and development expenses decreased by $5.4 million year-over-year to $71.0 million, primarily due to reduced preclinical and manufacturing costs following the advancement of programs into clinical trials and the discontinuation of the DMD program, partially offset by increased clinical trial costs. General and administrative expenses increased by $1.3 million to $22.6 million due to higher consulting, legal, and personnel-related costs.
Net cash used in operating activities was $81.6 million for the year, primarily driven by the net loss. The company's investing activities used $15.2 million, mainly for purchases of marketable securities. Financing activities provided $108.0 million, predominantly from the September 2025 public offering. The company ended the period with total assets of $173.9 million, including $151.0 million in current assets (cash, marketable securities, and prepaid expenses). Total liabilities were $26.5 million, resulting in stockholders' equity of $147.4 million. Management believes existing cash resources are sufficient to fund planned operations into the second half of 2027.
The company's future success depends on advancing PGN-EDODM1 through clinical development. It faces significant risks, including the need for substantial additional funding, clinical trial delays or failures, regulatory hurdles, and intense competition. Management expects operating losses to continue as it conducts clinical trials and research activities. The company plans to finance future operations through equity offerings, debt financings, or collaborations, but there is no assurance such funding will be available on acceptable terms. Key near-term milestones include reporting data from the 5 mg/kg cohort of the FREEDOM2 study in Q1 2026 and the 10 mg/kg cohort in the second half of 2026.