The stock of Ocugen, Inc. (OCGN) declined in the current market. The stock was traded at 9.15% less than the previously closed value to reach $6.45. At the end of the last session, the stock closed at $7.10. The average volume of stock traded in the regular trading session was around 50.37 Million.
Reasons for the Ocugen, Inc. (OCGN) stock decline
At the start of this month when the World Health Organization (WHO) approved the company vaccine named Covaxin for Emergency Use Listing (EUL), the investors could have been noticed to cash on the news. The stock of the company saw a significant increase in its value crossing $15 per share. But after this significant peak, the stock of Ocugen, Inc. (OCGN) plunged due to the fact that if we see it through the investor lens there is not much space left in the market to dominate the scene. Because if we analyze the commercial aspect of the scenario it is not sure that at the time when the FDA will approve the Covaxin how much of the room will be left in the market, as the leading companies like Pfizer have already reached the majority of the audience. Covaxin is likely to get approved in the mid of 2022, which seems like it will not bring much revenue for the company to significantly affect its profitability.
The other reason for its decline today is the reason that FDA stated that they are issuing a hold, investigational new drug application (IND) on the Covaxin to evaluate the specific deficiencies and how to address those deficiencies. Covaxin is currently authorized for use against Covid-19 by WHO in 17 countries and expects that its pending authorization for its use in 60 other countries will be approved. But in North America, the vaccine is put on hold as of now by the FDA.
Highlights of 3rd quarter results
- As of 30th September 2021, the company reported no revenue.
- The company’s net loss in the 3rd quarter was reported to be $10.76 million.
- The company had cash and cash equivalents of $107.35 million.
- R&D expenses were around $6.3 million.
- The net loss per share was reported to be$0.05.
Conclusion
The company is looking forward to the authorization by WHO to use its vaccine in more than 60 countries. But as of now, their major concern is the clinical hold of the FDA on Covaxin. Their major rival Pfizer has already dominated the market and it would not be easy for Ocugen, Inc. (OCGN) to grab a share in the market as most people have gone through the second dose of the vaccination. Their biggest concern would be the approval for authorization by WHO to use its vaccine in 60 other countries.
