Ocugen (OCGN) stock is a relatively new biotechnology company specializing in diverse and lucrative fields such as gene therapy and Covid 19 vaccines. In February, OCGN made a contractual agreement with Bharat Biotech to produce the Covaxin Covid-19 vaccine, which showed minimal side effects and had an 81% efficacy rate in phase 3 clinical trial in India soaring OCGN Stock price by 270%. Ocugen agreement stipulates that it will commercialize the vaccine in the U.S, targeting a huge demographic and capturing a staggering 45% of the profits from its sale.
The vaccine produced by OCGN is an inactivated vaccine. Primarily, an inactivated or dead form of the SARS-CoV-2 virus is inserted into the human bloodstream. Afterwards antibody production is started by the immune system and the body ‘Learns’ the defense mechanism. Hence if an infection occur, the immune system can respond swiftly and efficiently.
Financially, the company consists of over $24 million in capital and has approximately $2.1 million in debt. In 2020, its net losses were $21.8 million, however new OCGN stock can be issued to generate capital and new income from vaccines could further help Ocugen to diversify its pipeline.
Furthermore, Pfizer, Moderna, and AstraZeneca have already started mass production of their vaccines, hence OCGN can have a hard time grabbing a significant share in the saturated market. However, Bharat Biotech claims that Covaxin demonstrates “significant immunogenicity against the rapidly emerging variants.” giving OCGN product line distinctive competency over other vaccines which can produce a potentially huge financial surplus.
OCGN has invested in a very lucrative market of vaccines especially amongst the time of a pandemic. A strategic relationship with Bharat Biotech combined with an 81% efficacy rate of the vaccine has peaked investor interest with speculations of high capital gains in the near future.