Ocugen Inc (NASDAQ: OCGN) is up big in the market this morning, and for good reason. The company released interim results from a Phase 3 study of a COVID-19 vaccine, and needless to say, the results were positive. Here’s what’s going on:
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- Ocugen Announces Positive COVID-19 Vaccine News
- Management Commentary
- What Analysts Think About OCGN Stock
- Risks to Consider Before Buying OCGN Stock
- Final Thoughts
Ocugen Announces Positive COVID-19 Vaccine News
As mentioned above, Ocugen is flying in the market this morning after releasing COVID-19 vaccine news. In the press release, the company said that its co-development partner, Bharat Biotech, announced the results of the first interim analysis of the Phase 3 study of COVAXIN.
COVAXIN is a whole virion inactivated COVID-19 vaccine candidate. According to the release, COVAXIN demonstrated vaccine efficacy of 81%.
In a statement, Dr. Shankar Musunuri, Chairman, CEO, and Co-founder of OCGN, had the following to offer:
We are thrilled with the interim efficacy results of Bharat Biotech’s Phase 3 trial of COVAXIN in India. These results, which in part suggest significant immunogenicity against the rapidly emerging UK variant, represent an additional step towards outlining the regulatory pathway for EUA and approval in the United States. COVAXIN, a whole virion based vaccine candidate, is designed to fill a significant unmet need in our national arsenal of vaccines against COVID-19.
The above statement was followed up by Dr. Bruce Forrest, member of the vaccine scientific advisory board of Ocugen. Here’s what he had to offer:
Today’s results from the interim analysis of Bharat Biotech’s Phase 3 trial of COVAXIN mark a milestone in the development of another critical vaccine option for the US market. COVAXIN has been shown to induce immune responses against multiple protein antigens of the virus potentially reducing the possibility of mutant virus escape. This breadth of immune responses has been demonstrated by ability of antibodies induced by COVAXIN to neutralize the UK variant of SARS-Cov-2.
What Analysts Think About OCGN Stock
Overall, analysts have a positive opinion of Ocugen stock. In fact, there are four analysts covering the stock at the moment, three of which rate it a Buy. The other analyst covering the stock rates it a Hold.
Price targets on OCGN range from $4 to $13, with a median price target of $9.25. However, it’s important to keep in mind that the vast majority of analyst coverage on the stock is outdated. As a result, the price targets on the stock don’t take recent news into account. So, I’m expecting that upon review, these price targets will be increased.
Risks to Consider Before Buying OCGN Stock
If you’re thinking about buying OCGN stock, it’s important that you consider the risks. After all, there’s no such thing as an investment that doesn’t come with the risk of loss. When it comes to Ocugen, the most significant risks include:
- Clinical Stages. At the moment, Ocugen is a clinical stage biotechnology company. That means that the company has no approved therapeutics and is not able to earn revenue through the sale of its products. As such, if the money the company has in the bank isn’t enough to get it through to commercialization, it may move forward with a dilutive offering.
- Regulatory Risks. While clinical trials are going well, before the company can bring products to market, it must win regulatory approval. Should regulators find any holes in the data, the stock could experience significant declines.
- Volatility. Finally, OCGN stock is known to experience heavy levels of volatility. While the volatility is fun on the upside, it can be overwhelmingly painful on the downside. Volatility also makes the timing of trades more difficult.
Sure, there are risks to consider before diving into Ocugen stock. However, these risks are largely outweighed by the potential benefits.
At the end of the day, the news today means that the company may be one of the next to bring a COVID-19 vaccine to market, which would mean the company would likely drive significant revenues. All in all, OCGN stock is one to watch closely.