Ocugen stock jumped on positive news from the FDA. The agency has lifted a clinical hold on Covaxin, or BBV152, to help the company move forward with its COVID-19 vaccine. Though the stock has dropped since then, the news helped clear a significant roadblock for Ocugen.
The company expects to reach a revenue-generating vaccine within a year. Despite this, Ocugen is going to need more dilutive financing in the near future. The company last raised funds in February through a public offering of common stock. Nevertheless, a recent market trough has prompted some investors to reconsider their position in the stock.
The company is a leading biotechnology company that focuses on developing innovative therapies to treat a variety of diseases. It has recently initiated a Phase 1/2 clinical trial for a vaccine against Covid-19. While Ocugen hasn’t yet made a breakthrough in the vaccine space, the company has made progress in other areas, including clinical trials. Regardless of whether or not the company’s efforts in Covid-19 go through as planned, Ocugen’s share price may wobble a bit before moving higher.
While Ocugen stock was down about 60% this year, it climbed 15% in premarket trading on Thursday after the company announced a partnership with Washington University. The collaboration will help the company develop and commercialize its Covid-19 nasal spray vaccine. The partnership is a significant step forward for the Covid-19 treatment, though it still has a long way to go before it is approved.
In addition to gene therapies for eye diseases, Ocugen also is developing a vaccine to combat the devastating effects of the COVID-19 virus. The company’s COVAXIN vaccine candidate is aimed at saving lives and developing a cure for the virus. The vaccine will be marketed by Ocugen in North America. The company will receive 45% of the vaccine’s profits.
Ocugen shares have a modest market cap of $2 billion. It is still a risky investment. The company has yet to win its EUA for Covaxin, and it’s not likely to happen anytime soon. The company has been talking with the FDA to find a pathway to success, and it’s likely that the FDA will require more clinical studies in the U.S.
As for the future, the company has several vaccine candidates in its pipeline. It also announced an agreement with Washington University in St. Louis to develop and commercialize COVID-19 vaccine. The vaccine has already won authorization in India, and Ocugen will work with various agencies to get it approved in other countries faster. However, it will still face stiff competition in the vaccine market.