Ocugen (NASDAQ:OCGN) is simply shooting higher today. The move comes as Ocugen shares a big announcement about its work with a novel coronavirus vaccine. So what do you need to know? And why is OCGN stock soaring higher?
Importantly, investors should make sure they understand what Ocugen is all about. Essentially, the company is a clinical-stage biotech firm that specializes on therapies for blindness. Investors likely are most familiar with OCGN stock because of its candidates like OCU200, OCU400 and OCU410, which all specialize in addressing different vision-related conditions.
However, Ocugen is captivating interest on Tuesday for a completely different reason. It turns out that the company has formed an arrangement with Bharat Biotech to develop a Covid-19 vaccine. Unsurprisingly, that news has OCGN stock soaring more than 130%.
So what else do investors need to know? Well, Bharat Biotech, an India-based biotechnology firm, specializes in vaccines. It currently has 16 vaccines in its portfolio and has a wide variety of other patents. With this in mind, it has developed its Covid-19 candidate COVAXIN. Bharat Biotech is using a more traditional vaccine approach with COVAXIN, using an adjuvanted inactive virus. This means that it has taken an inactive form of the novel coronavirus and supplemented it with an adjuvant, something which enhances an immune response.
Additionally, Bharat Biotech has already completed Phase 1 and Phase 2 trials, enrolling approximately 1,000 participants. Based on initial findings, the company believes it is promising in terms of its safety and immunogenicity. And now, COVAXIN is part of a 26,000-person Phase 3 trial in India.
So where does Ocugen come in? Well, the two companies just signed a deal regarding COVAXIN. Ocugen will help develop and commercialize the vaccine in the U.S. This is exactly why OCGN stock is on the move.
Why COVAXIN Matters for OCGN Stock
But why should investors care about the COVAXIN news? And why is OCGN stock really up 130%? Remember, leading vaccine makers like Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) have already been rolling out doses. Why should Bharat Biotech and Ocugen captivate investors here?
Broadly, the answer is in the fact that the Covid-19 situation continues to worsen. A new strain that experts say is 70% more infectious is plaguing the United Kingdom. And in the United States, cases, hospitalizations and deaths continue to rise. This means that investors are still hungry for anything that can help, and another vaccine offering is quite appealing.
Additionally, Ocugen says that the COVAXIN vaccine does stand out from others on the market. This is, according to the company, because COVAXIN targets multiple virus protein antigens. In other words, COVAXIN could help better protect individuals against the evolving Covid-19.
With all attention on the pandemic situation, keep OCGN stock on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.