Ocugen (NASDAQ:OCGN) is facing a bit of self-inflicted adversity thanks to its announcement that it will not pursue emergency-use authorization. However, the company is not letting bearish attitudes weigh it down. Instead, it is moving forward with plans to get full FDA approval for its Covid-19 vaccine. News of a partnership with a manufacturer is giving those who stuck by OCGN stock something to be excited about.
Ocugen is no longer pursuing emergency-use authorization with the FDA, per a press release from last week. This is a stinging blow to speculative investors who put big bets on the company, as it is an underdog with huge upside potential in the vaccine race.
The company is earning back some trust today, and benefitting the investors who are holding through the period of volatility. Ocugen announced it has found a manufacturer for its vaccine candidate.
The company is putting a lot of time into making sure its Covaxin vaccine is effective and will secure full approval from the FDA. The announcement is assuring investors that things are moving along as fast as possible, with the company standing at the ready to start production the second approval comes its way. The manufacturer of Covaxin in the U.S. will be Washington state’s Jubilant HollisterStier.
OCGN Stock Gains as Investors Have Reason to Be Optimistic
Through all of this, investors have reason to get bullish. Ocugen may be missing out on EUA, but that doesn’t matter much anymore. The U.S. is getting closer to herd immunity, so the FDA isn’t looking for any more fast vaccines. The opportunity for Ocugen appears to be up in Canada, where vaccination levels are stagnating. The company can look to corner that market.
It’s for these reasons that OCGN is seeing a decent boost on today’s trading session. OCGN stock saw an increase of over 15% as the bell rung this morning, and through the day has seen 50% increased trading from its average volume. Ultimately, OCGN stock settled to a 2% gain on the day, with slightly more bullish prospects.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.