Ocugen (NASDAQ:OCGN) is not having the best of mornings. The company, once seen as a serious underdog in the Covid-19 vaccine race, is struggling today. An announcement by the company this morning is dealing a knockout blow to OCGN stock.
It was just yesterday that users on Reddit’s r/WallStreetBets were declaring “OCGN to the moon.” A handful of posts were made hailing OCGN as the next big pharma pump, and lots of faith was being put into the stock exploding when it inevitably got its emergency-use authorization application to the FDA.
Now, Ocugen is starting to trend on Reddit once again, but for all the wrong reasons. A devastating piece of news is crushing the hopes of OCGN holders.
The company reporting this morning that it will not be applying at all for EUA. The company cites the FDA’s recommendation against applying as the reason, as the agency is unlikely to approve any new vaccines for EUA. The agency is also requesting more information and data around Ocugen’s Covaxin product anyway.
Instead, the company is aiming to file for full approval with the U.S. government. This new goal means both adjusting and lengthening the vaccine’s rollout timeline in the U.S., much to the chagrin of investors.
Redditors Shift Gears as OCGN Stock Stumbles
Those Redditors who were hailing the stock just hours ago are changing their tones. Mentions of the stock on the message board are up over 100% this morning, and the comments tell you everything you need to know. One user summarizes holders’ feelings with a simple message: “RIP OCGN.”
But are things really over for Ocugen just because of the huge bad news? In the meme stock, short squeeze era, the news might as well be a small speed bump under the tires of r/WSB.
OCGN trading volume stands at 58 million shares so far today. That’s quickly nearing its daily average, and OCGN stock is trimming its pre-market losses.
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.