OCGN Stock Price: Ocugen Inc. reverses gains and falls 9% despite FDA news

• NASDAQ:OCGN shoots up 19.33% during Friday’s trading session.

• Ocugen is the latest penny stock to win the favor of retail investors looking for the next big thing.

• OCGN is moving down some 9% on Tuesday, shrugging off the FDA news.

Update: Tuesday's trading session is unfavorable to OCugen investors, with shares falling some 9% to around $0.64. The sell-off comes despite the FDA boost the company recently received, described below. Another reason for he fall may come from Russia, where President Vladimir Putin announced his country has a coronavirus vaccine.

NASDAQ:OCGN has been a roller coaster for investors over the last few years – to say the least. The 52-week high of $17.40 may be confusing to people at first glance – especially since Ocugen is considered a penny stock biotech company. One needs to only look back six years when the firm debuted, with a split-adjusted price level of just under $800 per share. Last September, the stock underwent a 1:60 reverse split to try and salvage some financial legitimacy – but even after the split the stock price continued to plummet.

On the surface, Ocugen’s professional goal is to develop gene therapies that would provide cures for numerous diseases that cause blindness. Its website shows that it has three different therapies at various stages of pre-clinical studies. While that sounds promising, it also is a clear message that none of these treatments are currently bringing any revenues for Ocugen. Nevertheless, one of its treatments, OCU400 has just received orphan drug status from the FDA. 

A deeper dive into Ocugen’s financials quickly paints a troubling picture for the firm ahead of its quarterly earnings call next week. There are several red flags that show the financial weakness of the company including an EBITDA loss of 13.9 million and a ROA (return on assets) of -119.20%. Both numbers are key indicators of financial instability and poor management – just two of the many reasons why the stock has a devastating -95.91% return over the last year. 

OCGN Stock Forecast

Ocugen has caught the attention of retail investors, particularly those that use the popular Robinhood platform. On Friday, OCGB recorded a trading volume that was nearly double the normal average volume for this stock. High volume is usually a motivator that causes a share’s price to fluctuate higher or lower with more extreme volatility. Investors should expect the rollercoaster ride to continue for Ocugen – starting with the high chance of a pullback when the markets open on Monday.