Ocugen shares lose momentum after US$100m offering
Biopharmaceutical firm Ocugen’s shares rallied following positive clinical trial results for its Covid-19 vaccine candidate, but retreated after a share offering.
- Ocugen Inc (Nasdaq: OCGN) share price drops to US$11.21 per share
- Its vaccine development partner said Covaxin showed 78% overall efficacy
- Separately, Ocugen sold US$100 million of shares to institutional investors
- Buy and sell Ocugen shares with an IG account
Ocugen stock price hits two-month high
Shares of Ocugen - a gene therapy firm that aims to cure blindness and is also working on a new coronavirus vaccine - pulled back by 3.9% to finish Wednesday at US$11.21.
Despite the day-on-day decline, that is still the stock’s strongest close since early February 2021.
Over the past week, OCGN shares had nearly doubled from US$5.64 at last Monday’s close, thanks to encouraging results for its potential Covid-19 vaccine.
Year-to-date, the counter has shot up by over 500%, from US$1.83 at the end of 2020.
Among four analysts, three had ‘buy’ calls on OCGN shares while one recommended ‘hold’, as of Wednesday. Their average 12-month target price was US$12.50, according to Bloomberg data.
Ocugen closes US$100 million direct offering at premium
Last Friday, Ocugen said it would sell 10 million shares at US$10 apiece directly to healthcare-focused institutional investors.
The offer price was at a 7.6% premium to OCGN’s closing price of US$9.29 last Thursday.
Ocugen this Wednesday announced it has closed the offering with US$100 million in gross proceeds raised.
Net proceeds of US$93.4 million will go into general corporate purposes, capital expenditures, working capital, and general and administrative expenses.
HC Wainwright & Co acted as the exclusive placement agent. Analysts at HC Wainwright & Co gave a ‘buy’ call and US$12 target price on OCGN shares.
Positive data for Ocugen’s potential Covid-19 vaccine
Ocugen is co-developing Covid-19 vaccine candidate Covaxin with India’s Bharat Biotech, for the US market.
Last Wednesday, Ocugen said the second interim analysis of Bharat Biotech’s Phase 3 clinical trial of Covaxin yielded ‘positive’ results. The news sent OCGN shares soaring 42.9% the next day.
The product demonstrated 78% efficacy against mild, moderate, and severe Covid-19 disease, as well as 100% efficacy against severe Covid-19 disease alone.
With these ‘competitive’ results, Ocugen believes it has sufficient information to support an Emergency Use Authorization (EUA) filing in the US, noted Roth Capital analyst Zegbeh Jallah.
If EUA is granted and Covaxin can be sold in the US, ‘this could lead to a significant revenue generating opportunity for Ocugen’, Jallah added. He has a ‘buy’ call and US$10 target on OCGN.
Covaxin appears to be effective against novel mutants and has storage advantages, as it can be stored at normal refrigerator temperatures. Given this, Roth Capital maintained its ‘conviction on positive outlook on the market opportunity’.
Bruce Forrest, a member of Ocugen’s vaccine scientific advisory board, said the safety and efficacy were ‘remarkable’ considering the prevalence of several coronavirus variants circulating at the time of the trial.
The company plans to consider clinical development in special populations such as children, Forrest said.
Trade US stocks with IG today - long or short
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.