CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Ocugen results preview: What lies ahead for the biopharma?

While Ocugen is set to report its first-quarter financial results, research teams are hopeful of a rebound in the Covid-19 vaccine maker’s shares.

  • Ocugen, Inc (Nasdaq: OCGN) share price drops to US$9.58 per share
  • The biopharma play will announce its earnings on Friday morning in the US
  • The stock has lost 38.9% in the past few days despite encouraging updates
  • Analysts were still largely bullish, targeting the shares to reach US$12.50
  • Buy and sell US stocks with an IG account

Ocugen’s stock stays volatile

Shares of biopharmaceutical firm Ocugen continued to slide on Thursday (06 May 2021), shedding 12.2% day-on-day to finish at US$9.58, ahead of a pre-market earnings announcement on Friday (07 May 2021).

The counter had tumbled 38.9% since Monday’s close, despite several encouraging updates on a Covid-19 vaccine candidate, Covaxin, as well as the company’s pipeline efforts.

Ocugen develops and commercialises gene therapies to cure blindness diseases. It is also developing Covaxin, Bharat Biotech’s Covid-19 vaccine candidate, for the US market. Covaxin was recently found to be effective against three key variants of the coronavirus.

OCGN’s stock has been hugely volatile since late December. After finishing at US$0.29 per share on 21 December 2020, OCGN has shot up by more than 3,000%.

Ocugen’s 1Q 2021 results: What to expect

Before the market opens on Friday, the drug developer will report its financial results for the first quarter of 2021.

Analysts forecast that its earnings per share could come in at US$0.26 for 1Q 2021, reversing from the loss per share of US$0.022 in 4Q 2020, according to estimates compiled by Bloomberg.

Revenue could also stand at about US$156 million for the latest quarter, compared to zero revenue previously, research teams predicted.

Ocugen may post a net profit of US$52 million, analysts said, versus a net loss of US$3.8 million in the final quarter of 2020.

Three out of the four analysts covering OCGN shares gave ‘buy’ ratings, while one said to ‘hold’. Their average 12-month target price stood at US$12.50 as of Thursday, Bloomberg data showed.

Just this week, Roth Capital Partners’ research team gave a ‘buy’ call with a US$10 target price, and Cantor Fitzgerald recommended ‘overweight’ alongside a US$15 target.

Covaxin proves effective against multiple Covid-19 variants

After the latest Covaxin trial results, Ocugen was one of the most talked-about stocks on Reddit’s online investor forum WallStreetBets this week, Reuters said.

In a new study, Covaxin demonstrated potential effectiveness against the Brazil variant of SARS-CoV-2, Ocugen announced this week.

Another study in India had also suggested that the vaccine candidate was effective against the UK variant and the India double mutant variant, Ocugen noted.

Roth Capital analyst Zegbeh Jallah said Covaxin’s other differentiating advantages included its potential use in younger patients and immunocompromised patients.

Moreover, the product does not require cool temperatures for transport or storage; it can be stable at room temperature for up to three months. It can also be stored in constant-temperature refrigerators for up to two years, which means it can be stockpiled, Jallah added.

Trade stocks, indices, forex, commodities and more with IG today

Create an IG account or log in to your existing account to get started now.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Explore the markets with our free course

Learn how shares work – and discover the wide range of markets you can trade CDFs on – with IG Academy's free ’introducing the financial markets’ course.

Put learning into action

Try out what you’ve learned in this shares strategy article risk-free in your demo account.

Ready to trade shares?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Trade over 12 000 popular global stocks
  • Protect your capital with risk management tools
  • React to breaking news with out-of-hours trading on 70 key US stocks

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.