OCGN Stock Forecast: Ocugen Inc extends sell-off amid covid vaccine doubts, profit-taking

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.

Stocks Reporter FXStreet

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.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

GBP/USD flirts with two-day lows near 1.3180

GBP/USD remains on the back foot in the latter part of Tuesday’s session, sliding to the sub-1.3200 area and challenging weekly lows. Cable’s decline comes as investors assess the political uncertainty in the UK, coupled with softer-than-expected UK PMI data and the better tone in the Greenback.

EUR/USD weakens below 1.1400 on stronger Dollar

EUR/USD adds to Monday’s losses and recedes below the 1.1400 support to clinch fresh 13-month lows in the latter part of Tuesday’s NA session. The pair’s marked sell-off comes on the back of the persistent move higher in th US Dollar, always propped up by rising bets of further tightening by the Fed.

Gold appears supported near $4,100 for now

Gold rapidly reverses Monday's bounce and is trading sharply lower on Tuesday. The yellow metal, however, manages well to keep business above the $4,100 mark per troy ounce despite a firmer US Dollar and expectations that the Fed will keep rates higher for longer.

Australia CPI set to show inflation accelerated again in May

The Australian Bureau of Statistics will publish the high-impact Consumer Price Index for May on Wednesday at 01:30 GMT. Heading into the inflation test, the Australian Dollar is at its lowest level in two months against the US Dollar, having surrendered the 0.7000 psychological mark.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.