Investors in a biotechnology company Ocugen Inc (NASDAQ:OCGN) have had a difficult November so far. Especially those who bought stocks as OCGN started a rally in the last week of October. OCGN stock peaked at $ 15.67 on November 2, then fell sharply.
Now trading at around $ 7.71, the shares are worth less than half of what they were two weeks ago. What’s going on here, and does the November massive sale present an opportunity? Or is volatility a sign that potential investors need to keep their distance?
OCGN is a gene therapy company focused on curing genetically inherited eye diseases. He partnered with India Bharat Biotech in the commercialization of a Covid-19 vaccine, Covaxin. He also achieved meme stock status in early 2020 while trading as Penny stock for most of 2020. He is now an artist – albeit volatile – who has seen further growth. by 300% so far in 2021, despite its slowdown in November.
In Wallet Grader it is a “B” listed share. The OCGN stock covers a lot of ground. It has the potential to generate big returns, but it is not without risk. Here’s what happened with OCGN over the past two weeks.
The Grand Rally
Ocugen shares have risen significantly on several occasions this year – primarily in February, May and again to begin in November. These rapid moves (in February, OCGN stock climbed 201% in a single day) followed by steep declines were largely motivated by retail investors. This is the very stock factor. These investors were not motivated by the company’s advancements in gene therapy for macular degeneration. They are reacting to news about Covaxin, the Covid-19 vaccine that Ocugen markets in partnership with Bharat Biotech.
Since last November, the Covid-19 vaccine market has been dominated by several companies, but there is still a huge global market for vaccines. Many countries have barely started immunizations, and even in those where there has been significant progress, childhood immunization is just beginning.
The last OCGN share rally started around the end of October and saw the value of the shares rise by over 60% over the course of a week.
The main catalyst for the rally was the anticipation that the World Health Organization (WHO) would publish an Emergency Use List (EUL) for Covaxin. Designation is required for Covaxin to be eligible to be part of the COVAX vaccine supply program. It is also considered to speed up the regulatory approval process for use in countries like America.
WHO announced EUL approval for Covaxin on November 3.
The big drop
Why did OCGN stocks start dropping following the WHO announcement? It appears retail investors were spooked when the news didn’t push stocks further and then started to sell. News that Ocugen had filed for emergency use of Covaxin for American children with the FDA failed to stem the slide.
The sale continued when Ocugen announced its third quarter results on November 9. The company reported a loss of 5 cents per share, which was worse than Wall Street estimates of a loss of 4 cents per share.
Review of OCGN actions
Considering the events of the past few weeks, does it make sense to add OCGN stocks to your portfolio?
There is potential for further growth in the history of OCGN. If it gets this FDA approval, Covaxin could be used with children in the United States between the ages of 2 and 18. It’s a fairly large market at this point, with only one other vaccine currently approved for this use. Aside from Covaxin – which tends to get all the attention – don’t forget Ocugen’s main focus. She is advancing in her gene therapy treatments for eye diseases.
The the Wall Street newspaper follows three analysts with Ocugen coverage. Three is a small sample size, but for what it’s worth, they have a consensus “overweight” rating for OCGN stock. Their median price target of $ 10.33 offers a 34% increase.
If you’re ready to overcome the occasional volatility that comes with being a meme title, OCGN might well be worth considering. Especially now that he’s returned to Earth after his last peak.
As of the publication date, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) positions in the securities mentioned in this article.
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