Form 4: PepGen CTO Acquires Shares, Options

PepGen Inc.'s Chief Technical Officer, Kasra Kasraian, acquired 34,557 restricted stock units and 135,000 stock options on March 1, 2026.

Summary

• Kasra Kasraian, Chief Technical Officer of PepGen Inc. (PEPG), acquired 34,557 restricted stock units (RSUs) on March 1, 2026.
• Each RSU represents the contingent right to receive one share of Common Stock upon vesting, with an acquisition price of $0.
• The RSUs will vest in equal annual installments over four years, with the first installment vesting on March 1, 2027, contingent on continued service.
• Mr. Kasraian also acquired 135,000 stock options on March 1, 2026, with an exercise price of $6.22 per share.
• These stock options have an expiration date of February 29, 2036.
• The options will vest 25% on the one-year anniversary of the grant date (March 1, 2027), with the remaining 75% vesting in 36 equal monthly installments thereafter, subject to continued service.
• Following these transactions, Mr. Kasraian beneficially owns 51,307 shares of Common Stock and 135,000 derivative securities (stock options).

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, as it signifies continued executive commitment and aligns management's financial interests with long-term shareholder value, which is generally favorable.

Positives

• The acquisition of restricted stock units and stock options aligns the Chief Technical Officer's interests with those of shareholders, incentivizing long-term performance.
• The significant equity grants demonstrate the company's commitment to retaining and motivating key executive talent.

Risks

• The vesting of both the restricted stock units and stock options is contingent upon the Reporting Person's continued service to the Issuer on each vesting date, meaning the awards could be forfeited if service is terminated.

Future Outlook

The vesting schedules for both the restricted stock units and stock options extend several years into the future, indicating an expectation of continued service and long-term commitment from the Chief Technical Officer.

Industry Context

StockSavvy.ai notes that equity grants to key executives like the Chief Technical Officer are a standard practice in the biotechnology and pharmaceutical industries, aiming to align leadership incentives with long-term shareholder value creation. Such grants are crucial for attracting and retaining top talent in a competitive sector.

Comparison to Industry Standards

• The structure of equity awards, including a mix of restricted stock units and stock options with multi-year vesting schedules, is consistent with typical executive compensation packages observed in the biotech industry, similar to practices at companies like Moderna or BioNTech for their senior scientific and technical leadership.
• The exercise price of $6.22 for the stock options reflects the market price at the time of grant, a common practice to ensure options provide value only if the stock price appreciates, aligning with performance-based compensation models.

Related Party Transactions

• The acquisition of restricted stock units and stock options by Kasra Kasraian, the Chief Technical Officer, constitutes a related party transaction as it involves compensation from the issuer to a key executive.

Stakeholder Impact

• Shareholders: The equity grants align the Chief Technical Officer's long-term financial interests with shareholder value, potentially leading to more focused efforts on company growth and performance.
• Employees: Such compensation structures can serve as a benchmark and motivator for other employees, demonstrating the company's commitment to performance-based rewards.

Next Steps

• The first installment of restricted stock units will vest on March 1, 2027.
• 25% of the stock options will vest on March 1, 2027, followed by monthly vesting installments thereafter.

Key Dates

Keywords

PepGen Inc., PEPG, Kasra Kasraian, Chief Technical Officer, Restricted Stock Units, RSUs, Stock Options, Insider Transaction, Executive Compensation, Equity Awards, Vesting Schedule