The onset of the novel coronavirus has prompted a number of companies to shift their business models. A prime example of this would be Ocugen (NASDAQ:OCGN). Anyone thinking about owning OCGN stock will need to take the company’s recent change into consideration.
Undoubtedly, the bears and skeptics will point out that there’s risk inherent in joining the race to develop a Covid-19 vaccine. After all, Ocugen certainly isn’t the first company to develop such a vaccine.
On the other hand, with vaccine supply shortages being a major issue, there’s room for more than one Covid-19 vaccine developer. Besides, Ocugen’s vaccine candidate may offer advantages over the ones that are currently available.
That’s an exciting prospect as it offers the potential of a new and possibly better Covid-19 vaccine. It’s also exciting for OCGN investors who are awaiting a green light from regulators.
OCGN Stock at a Glance
For folks who’ve been waiting for a price dip to get into OCGN stock, their wish has been granted.
OCGN had an amazing run in early February. The share price shot up from $1.81 on Feb. 1 to a breathtaking 52-week high of $18.77 on Feb. 8.
That’s certainly bullish price action. Yet, it’s not always a great idea to chase a stock after a vertical move has been made. OCGN stock provides a textbook example of this, as the share price sharply declined after the Feb. 8 peak.
On the afternoon of Feb. 12, OCGN stock was priced near the $10 level. This could be considered an opportunity to start accumulating the shares at a more favorable price point.
Moreover, the price trajectory is still to the upside. After all, the OCGN stock price was under $1 just a few months ago.
The Big Pivot
Like I said earlier, the onset of the coronavirus caused a number of companies, including Ocugen, to shift their business models.
In a real game changer for the company and perhaps for the medical field, Ocugen recently partnered with India-based vaccine innovator Bharat Biotech.
You might not have heard of Bharat Biotech, but the company has a major presence in the global battle against infectious diseases. In fact, Bharat Biotech has delivered over 6 billion doses of vaccines worldwide.
Meanwhile, Ocugen was previously known for addressing diseases related to eye conditions. That’s certainly a worthwhile pursuit. Still, the pivot to co-developing a Covid-19 vaccine candidate has evidently galvanized OCGN stock holders.
The evidence of this, naturally, is found in the rapid price movement of OCGN stock.
What could have caused the recent share-price drop, though? Perhaps some profit taking may have been involved.
Also, Chardan analyst Keay Nakae lowered his rating on OCGN stock to “neutral” from “buy,” evidently citing a concern that the share price had risen too far, too fast.
Important Advantages
As you are probably aware, an influential analyst’s downgrade can cause a stock price to decline. Nakae’s warning might have had this impact to OCGN stock.
But is it a reason to abandon OCGN? I don’t believe so, as Ocugen and Bharat are developing a Covid-19 vaccine candidate with important advantages.
For one thing, Ocugen and Bharat’s Covid-19 vaccine candidate, Covaxin, may induce immune responses to several coronavirus proteins. This means that Covaxin might help to increase immunity against potential new future strains of Covid-19.
Furthermore, Covaxin can be stored at refrigerator-level temperatures. That’s a clear-cut advantage over Covid-19 vaccines that must be stored at extremely low temperatures.
There’s no guarantee, but soon the U.S. Food and Drug Administration might extend Emergency Use Authorization for Covaxin. It’s not hard to imagine that this event, if it happens, would have a positive impact on the OCGN stock price.
The Takeaway
Share-price drops can present opportunities for investors to take a position in exciting companies. Thus, the recent drop in the OCGN stock price shouldn’t scare off any prospective shareholders.
Plus, the team-up with Bharat Biotech offers the hope of a new Covid-19 vaccine with distinct advantages — and that’s potentially great news for OCGN stock holders, and for many people waiting for a vaccine right now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
