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Ocugene (NASDAQ:OCGN) stock rose nearly 15% today in premarket trading after the biotech company announced that the University of Washington had signed a licensing agreement with the company for its intranasal Covid-19 vaccine. However, after the market opened, it fell to only about 3% in the green.
The agreement will see Washington University in St. Louis, Missouri, help develop, manufacture and market Ocugen’s Covid-19 vaccine in the United States, Europe and Japan. This represents a significant advance for Ocugen’s Covid-19 vaccine, which is administered to patients through a nasal spray.
Prior to today’s rise, OCGN stock was down 60% this year and trading at $1.88 per share, putting it deep in penny stock territory.
In a press release, Ocugen said he and the University of Washington plan to work closely with various US government agencies responsible for pandemic preparedness to begin clinical trials of the Covid-19 nasal spray vaccine as soon as possible. 19.
“Ocugen is excited about the potential of this vaccine to be a universal booster,” said Dr. Shankar Musunuri, chief executive officer (CEO) and co-founder of Ocugen. “We look forward to working with US, European and Japanese regulators to accelerate development.”
why is it important
Based in Malvern, Pennsylvania, Ocugen had primarily focused on developing treatments for various eye diseases. The company pivoted during the pandemic and invested in developing a Covid-19 treatment. However, while Ocugen’s vaccine has been approved for emergency use in India, it has yet to receive approval in America from the US Food and Drug Administration (FDA).
The fact that the University of Washington will help market Ocugen’s Covid-19 nasal spray could help eventually get the treatment the required FDA approvals so it can sell it in the United States. Many industry analysts have applauded Ocugen’s efforts to turn its vaccine into a nasal spray that people can self-administer rather than having to pick up a needle from a medical clinic.
As Covid-19 evolves and becomes endemic, pharmaceutical companies are developing new treatment methods ranging from pills to nasal sprays.
What’s next for OCGN stocks
Ocugen’s stock today receives a much-needed boost after announcing its partnership with the University of Washington to accelerate the development and potential approval of its Covid-19 vaccine in the United States and abroad. other markets around the world.
However, while the partnership with the University of Washington is encouraging, investors should keep in mind that Ocugen’s Covid-19 nasal spray has not yet entered clinical trials and still has some way to go. to get FDA approval – if it is approved.
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At the date of publication, Joel Baglole did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.