Red-hot Ocugen (NASDAQ:OCGN) was a top gainer on Friday, rocketing higher on a variety of headlines. However, OCGN stock is pulling back on Monday. Here is one reason investors should not panic — and hint, it involves a major Covid-19 vaccine rollout.
As a quick recap, Ocugen is a biotech company that specializes in treating rare conditions that cause blindness. However, it has also become a Covid-19 vaccine play. It signed on with Bharat Biotech, an Indian vaccine specialist, to help develop and commercialize its COVAXIN in the United States. And to bulls, hopes for emergency-use authorization in the U.S. are a great reason to dive in now.
Last week, we saw evidence of that bullishness. Ocugen received orphan drug designation for one of it blindness solutions in Europe. Then, Brazil announced it struck a supply deal with Bharat Biotech. Lastly, a Motley Fool contributor said authorization from the U.S. Food and Drug Administration could be just around the corner. OCGN stock shot up nearly 40% as a result.
There is reason for that optimism to continue today, but shares are down roughly 9% in intraday trading. Before you panic, you can likely consider this a normal pullback after a major rally. However, bulls should pay attention to one big news item coming from India.
So what do you need to know?
Today, India ramped up the second phase of its Covid-19 vaccine rollout. It turns out that Bharat Biotech is at the center of that story.
What to Know About OCGN Stock Today
Today, the second phase of the vaccine rollout in India began. This phase expands vaccination to those in the general population over the age of 60, following the vaccination of frontline and other healthcare workers. Additionally, individuals aged 45 or older with existing illnesses are eligible. Most importantly for investors, there are two vaccines included in this rollout. The first is Covishield from the University of Oxford and AstraZeneca (NASDAQ:AZN). The second is COVAXIN, from none other than Bharat Biotech. And today, a few high-profile individuals received their COVAXIN doses…
As Grady McGregor reported for Fortune today, Prime Minister Narendra Modi received his first dose of COVAXIN today. Supreme Court members and their families will receive their first doses tomorrow. That is a huge vote of confidence for Bharat Biotech. And because of their partnership, it is also a huge vote of confidence for Ocugen and OCGN stock.
While the path ahead is not certain for Ocugen, this is a company worth watching. If the emerging biotech company can clear FDA hurdles, OCGN stock could be a Covid-19 star. Just make sure to keep doing your own research.
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.