PepGen Inc. Segments Disclosure
12. Segment Reporting
ASU 2023-07 establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statements.
Segment reporting is prepared on the same basis that the, who is the Company’s chief operating decision maker and manages the business, makes business decisions and assesses performance. The Company has one reportable segment and regularly reviews operating expenses and net loss on a consolidated basis. The Company operates in one location in Boston, Massachusetts focused on advancing oligonucleotide therapeutics with the goal of transforming the treatment of severe neuromuscular and neurologic diseases. The Company tracks external operating expenses on a program-by-program basis. Net loss is comprised of expenses related to the Company's two product candidates, one of which was discontinued in May 2025, and other personnel, facility, and general and administrative costs. Operating expenses and net loss are the basis the chief operating decision maker uses for the purpose of deciding how to allocate resources, specifically on a program basis as presented below.
The chief operating decision maker uses operating expenses and net loss to evaluate progress on research and development activities on the Company's two product candidates, one of which was discontinued in May 2025, as well as when making strategic decisions regarding the Company's research and development efforts. Operating expenses and loss are also used to monitor budget versus actual results.
The following table outlines the Company’s functional operating expenses (in thousands):
|
|
Year Ended |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Research and Development Expenses |
|
|
|
|
|
|
||
PGN-EDODM1 direct research and development expenses |
|
$ |
28,850 |
|
|
$ |
21,265 |
|
PGN-EDO51 direct research and development expenses |
|
|
8,690 |
|
|
|
19,195 |
|
Platform and external research and development expenses |
|
|
537 |
|
|
|
2,556 |
|
Personnel-related (including stock-based compensation) |
|
|
22,136 |
|
|
|
23,433 |
|
Facility related and other |
|
|
5,123 |
|
|
|
5,819 |
|
Other research and development expenses |
|
|
5,707 |
|
|
|
4,210 |
|
Total research and development expense |
|
|
71,043 |
|
|
|
76,478 |
|
General and Administrative Expenses |
|
|
|
|
|
|
||
Personnel-related (including stock-based compensation) |
|
|
12,697 |
|
|
|
12,449 |
|
Facility related and other |
|
|
2,051 |
|
|
|
1,987 |
|
Other general and administrative |
|
|
7,821 |
|
|
|
6,825 |
|
Total general and administrative expense |
|
|
22,569 |
|
|
|
21,261 |
|
Loss from operations |
|
|
(93,612 |
) |
|
|
(97,739 |
) |
Other income (expense): |
|
|
|
|
|
|
||
Interest income |
|
|
4,017 |
|
|
|
7,142 |
|
Other (expense) income, net |
|
|
(11 |
) |
|
|
(1 |
) |
Total other income, net |
|
|
4,006 |
|
|
|
7,141 |
|
Income tax (expense) benefit |
|
|
(49 |
) |
|
|
617 |
|
Net loss |
|
$ |
(89,655 |
) |
|
$ |
(89,981 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.