Ocugen (NASDAQ:OCGN) news for Wednesday about a massive stock buyback plan has OCGN stock on the move.
An Ocugen news release reveals that the clinical stage biopharmaceutical company is planning to buyback up to $2 million worth of its stock. The company says that it believes its stock is currently undervalued, which is why it’s moving forward with this plan.
Ocugen currently has a roughly 12.20 million outstanding shares of OCGN stock on the market. It’s plan to buy back $2 million worth of these shares will be through a broker in the open market. With the company’s stock currently sitting at around $2.00 per share, this means it can buy back roughly 1 million shares.
The Ocugen news also notes that part of the reason it can move forward with this share repurchase plan is its strategic partnership with emerging biotechnology company CanSinoBIO. OCGN says that this partnership allows for greater flexibility with its capital resources.
OCGN stock was up 39.84% as of Wednesday afternoon. It’s previous closing price was $1.28 per share, which is a far cry from the $441.36 at the start of the year. However, it’s worth noting that the company completed a merger with Histogenics at the end of September. This had the two publicly-traded companies combining to create a single publicly-traded company on the NASDAQ stock exchange.
As of this writing, William White did not hold a position in any of the aforementioned securities.