The Delta variant strain of Covid-19 has become a major issue in 2021’s second half. As a result, there has been renewed interest in clinical-stage biopharmaceutical specialist Ocugen (NASDAQ:OCGN) and some traders are giving OCGN stock a second look now.
As you may be aware, Ocugen’s Covid-19 vaccine candidate is known as Covaxin. The company is developing Covaxin for the North American market with a partner called Bharat Biotech.
Not long ago, InvestorPlace contributor Will Ashworth seemed to suggest that OCGN stock isn’t worth $8. In fact, Ashworth promised to eat his hat if the stock is worth that price.
I tend to agree that it’s not worth $8. Actually, I’d say that it’s worth more than that. Maybe even twice its current share price.
A Closer Look at OCGN Stock
For one thing, prospective investors should take note of how fast Ocugen shares can move.
Back in December 2020, OCGN stock was trading at around 30 cents. That turned out to be the bargain of the century.
In a stunning rally, the Ocugen share price rose to the $16 area in February of 2021.
Were Reddit users involved in that breathtaking run-up? It’s entirely possible, though this wouldn’t be easy to prove or disprove.
Not long afterwards, OCGN stock pulled back and re-loaded for another rally. Interestingly, the buyers (again, possibly Reddit traders) propelled the stock to the same area, around $16.
The previous pattern repeated itself as the Ocugen share price retreated again. In early August, the stock was trading at $7 and change.
Thus, $16 is a resistance level but also a potential price target for the bulls.
From a technical standpoint, at least, it’s entirely possible that OCGN stock is poised for another run, which would double the share price (again).
Pursuing a Different Path
When you get knocked down in your life’s endeavors, do you just give up, or do you try a different approach to reach your goals?
I certainly hope that you wouldn’t just give up . And I also hope that you’re investing in companies that try different strategies when they’re faced with life’s challenges.
As Ashworth pointed out, Ocugen issued a press release on June 10, declaring that it will no longer pursue an emergency use authorization for Covaxin. Ashworth also observed that the OCGN stock price tumbled after that news item was released.
I can understand why this development would spook some investors. Yet, let’s look beyond the headline and delve into the details.
It appears that Ocugen isn’t just capitulating; rather, it’s pursuing an alternative path.
Specifically, the company plans to work with the U.S. Food and Drug Administration towards filing a Biologics License Application (BLA) in the U.S.
Crossing Borders, Rolling Forward
Not only that, but Ocugen will engage with Health Canada to seek authorization for Covaxin, under an interim order for use in Canada.
To put it another way, Ocugen is looking beyond the U.S. border in advancing its high-conviction Covid-19 vaccine candidate.
And not long ago, it was revealed that Ocugen initiated a “rolling submission” to Health Canada for Covaxin.
This is a process which allows companies to submit safety and efficacy data and information as they become available.
And while we’re on the topic of available data, Ocugen recently released clinical efficacy data demonstrating Covaxin’s 93.4% protection rate against severe symptomatic Covid-19.
The research also found that Covaxin demonstrated 65.2% protection against the SARS-CoV-2, B.1.617.2 Delta variant.
The Bottom Line
Ashworth could be right: OCGN stock might not be worth $8.
But then, the stock could also be worth much more than that.
I won’t eat my hat if I’m wrong. However, I will definitely be surprised if Ocugen’s resilience and persistence fail to pay off in the long run.
On the date of publication, David Moadel 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.