- NASDAQ:OCGN drops by 20.24% despite the NASDAQ breaking through the 14,000 barrier.
- One Wall Street analyst warns OCGN has risen too high in a short amount of time.
- OCGN is attempting to bring its COVID-19 vaccine candidate to the United States.
Update: Ocugen Inc (NASDAQ: OCGN) has kicked off Wednesday's trade with a substantial decline of around 15% to trade below $11. Shares of the Malvern, Pennsylvania-based company are falling for the second consecutive day after hitting an all-time high of $18.77. One of the reasons for the decline from the highs – it is essential to note that OCGN was a penny stock back in December – is profit-taking. Another factor is that some investors are concerns that the deal that Ocugen struck with Bharat BioTech may not yield the dividends that some expect. The road to a COVID-19 vaccine may be long. See all the latest hot stocks news.
NASDAQ:OCGN has finally hit a speed bump as the penny biotech stock surged to a new all-time high in 2021, already returning over 500% to its investors. On Tuesday, the stock fell 20.24% to close the trading day at $12.61 as Wall Street cautioned investors on the meteoric stock performance. Even with the drop, Ocugen has grown from a stock worth $0.20 to a $2 billion market cap company all within the span of the past 52-weeks, as the Pennsylvania-based firm uses its leverage to take on some pharmaceutical giants.
Those companies that Ocugen is challenging include Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), the two leaders in the COVID-19 vaccine race. Ocugen is not producing their own vaccine though, but rather are working on receiving FDA Emergency Use Authorization to bring over Bharat’s vaccine candidate, Covaxin. Bharat is an Indian pharmaceutical titan that has produced an intranasal vaccine for COVID-19 that does not require a shot. Bharat would supply the initial doses but Ocugen is looking to work with American-based biotech companies to produce subsequent doses of Covaxin.
OCGN stock news
OCGN also received an analyst downgrade on Tuesday as Chardan analyst Keay Nakae warned of the euphoria surrounding Ocugen, and lowered the price target to $13. While Ocugen certainly has a high ceiling moving forward given it has agreed to a 45% revenue split with Bharat, Covaxin still has yet to receive FDA EUA. In fact, Ocugen has yet to even approach the FDA and Phase 3 clinical trials are still taking place until March. Investors who have ridden Ocugen up from its penny stock status may want to trim some profits until more affirmative news is released.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Bears still dominate the sentiment
AUD/USD quickly reversed Monday’s auspicious start to the week on Tuesday, shifting its attention to the downside and printing new multi-week lows near 0.6430 ahead of the release of inflation data in Oz.
EUR/USD: Sellers will not leave it alone
EUR/USD resumed its widespread leg lower on Tuesday, rapidly setting aside Monday’s bullish price action and returning to the area below the 1.0500 support prior to key US data releases on Wednesday.
Gold under pressure below $2,630
Gold fluctuates above $2,600 on Tuesday after sliding almost three percent – a whopping $90 plus – on Monday due to rumors Israel and Hezbollah were on the verge of agreeing on a ceasefire. Whilst good news for Lebanon, this was not good news for Gold as it improved the outlook for geopolitical risk.
Bitcoin needs a further correction for sustained growth
After weeks of rapid growth, Bitcoin (BTC-USD) entered the maximum turbulence zone falling below $94,000. BTC is currently trading at $93,764 and continues to trend downward, having exited the ascending channel.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.