Today, shares of Ocugen (NASDAQ:OCGN) are once again on the move. This time, shareholders in OCGN stock have seen daily double-digit gains as of early morning trading. That’s welcome news, considering the downside momentum OCGN stock has seen in recent weeks.
Yesterday, a key announcement was made by Mexico’s health regulator, Cofepris. Mexico has approved the use of the the Covid-19 vaccine COVAXIN. This vaccine has been developed by Bharat Biotech, the Indian partner of Ocugen, and is one of the key drivers of Ocugen’s incredible stock price moves this year.
Currently, COVAXIN has been approved for use in a number of countries globally, with India removing “clinical trial” language from the vaccine earlier this year.
Mexican regulators appear excited to bring another vaccine option to the table. Mexico’s Foreign Minister Marcelo Ebrard has provided bullish commentary on COVAXIN via a series of tweets on Tuesday.
Muy oportuna decisión de COFEPRIS de autorizar el uso de emergencia de la vacuna COVAXINE fabricada en la India . Se amplían las opciones para la vacunacion contra COVID-19 en México!!!
— Marcelo Ebrard C. (@m_ebrard) April 6, 2021
Here’s why investors believe this announcement is very bullish for Ocugen right now.
Accelerated Vaccine Rollout Extremely Positive for OCGN Stock
The race to vaccinate the world is one which investors are increasingly starting to recognize won’t be driven by one or two vaccine options.
Indeed, governments are increasingly viewing more options as better. For example, Mexico has approved five different vaccines for use. Other countries are expanding their vaccine portfolios, as production issues and logistical distribution challenges rampant.
Ocugen shareholders are hoping countries such as the U.S. or U.K. could authorize more vaccines for use. Indeed, such a move could provide additional momentum for OCGN stock. Given Ocugen’s U.S. presence, there’s increasing hope COVAXIN could be authorized by the U.S. Food and Drug Administration at some point.
So what does this all mean? Whether COVAXIN is ultimately approved by U.S. regulators is one question. However, investors are also concerned about the timeline of a prospective U.S. authorization.
In this regard, yesterday’s announcement by Mexico’s regulators is certainly bullish.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.