Ocugen (NASDAQ:OCGN) may be the most explosive stock on the market right now. From a December 2020 low of 29 cents, OCGN stock now trades at almost $11, a return of over 3,600%.
That’s not bad for a stock that was nearly delisted. And it’s all thanks to a deal to help make Bharat Biotech’s Covid-19 vaccine candidate, Covaxin, for the U.S. market.
But while this move has been impressive to date, I think there’s plenty more upside in store for the stock. In fact, if OCGN stock can break above triple top resistance around $21.60, it could potentially refill a bearish gap around $34.20.
Of course, that depends on if the Covid-19 vaccine can produce even more impressive data.
OCGN Stock: So Far, the Vaccine Shows an Efficacy of 81%
Earlier this week, Ocugen rocketed on news that Covaxin had an efficacy rate of 81%. Dr. Bruce Forrest, a member of Ocugen’s vaccine advisory board, noted in a press release:
“Today’s results from the interim analysis of Bharat Biotech’s Phase 3 trial of COVAXIN mark a milestone in the development of another critical vaccine option for the US market. COVAXIN has been shown to induce immune responses against multiple protein antigens of the virus potentially reducing the possibility of mutant virus escape.”
Should we see more strong data from the company, OCGN stock could easily push to higher highs. Plus, should the U.S. Food & Drug Administration (FDA) grant the company Emergency Use Authorization (EUA), $11 may be the cheapest this stock could be for a while.
Analysts appear just as bullish. For example, Tipranks quotes HC Wainwright analyst Swayampakula Ramakanth as saying the following:
“Compared to COVID-19 vaccines currently authorized under EUA, COVAXIN could induce more broad immunity targeting multiple viral proteins, potentially resulting in better protection against emerging mutant viruses, such as the UK and South African variants.”
So, while this is all still a wait-and-see situation, I wouldn’t be shocked if the OCGN rally continued on anticipation of better news.
A Vaccine Isn’t Ocugen’s Only Catalyst
But this isn’t the only thing OCGN stock has going for it. Outside of the United States, the company also had recent success in Europe.
Reportedly, the European Medicines Agency (EMA) granted Ocugen “orphan medical designation” for its treatment of two eye-related issues. The first, retinitis pigmentosa (RP), impacts some 165,000 people in Europe while the other, Leber Congenital amaurosis (LCA), impacts about 40,0000.
According to Dr. Mohamed Genead, the Acting Chief Medical Officer of Ocugen, there’s an “unmet need” with both of these debilitating issues. Genead notes:
“RP and LCA are chronically debilitating groups of IRDs characterized by severe impairment in visual functions starting as young as infancy, often progressing into night blindness and tunnel vision and eventually causing total blindness.”
So, OCGN is widening the suite of treatment options for these illnesses and stands to benefit from that work.
The Bottom Line
All in all, there’s a good deal of excitement surrounding OCGN stock.
In just months, it ran from just 29 cents to as high as $14. Now, it sits at $11, but the rally could continue based on its involvement with Bharat Biotech’s Covid-19 vaccine candidate. Ocugen’s RP and LCA progress in Europe could help as well.
Considering the fact that OCGN stock was nearly delisted months ago, its progress and the 3600% jump are impressive. And if the stock can break above triple top resistance, it could secure that movement, too.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.