Ocugen (NASDAQ:OCGN) bulls are in for a jam-packed and suspenseful day. The vaccine play is already on the move in pre-market, thanks to a big announcement spurring optimism. And beyond that, the pool of OCGN stock investors will be at the mercy of the World Health Organization (WHO) today. The major governing health body will be considering approval for the vaccine starting this week.
Let’s face it: Ocugen hasn’t had the easiest path to success this year. Multiple speed bumps have slowed down progress. The U.S. Food and Drug Administration (FDA) did not approve Covaxin for emergency use authorization (EUA). As such, the company has been forced to take a long and winding path toward full authorization. Beyond that, the WHO had delayed discussing approval for the vaccine when it was first slated to back in August. Last week, the organization delayed discussion once more.
Things are beginning to look up for OCGN this morning. A one-two punch of good news is incentivizing investors to hold their OCGN stock for at least the short term.
OCGN stock surged 7% in pre-market on the heels of an optimistic company announcement. Ocugen says that upon approval, its Indian vaccine development partner, Bharat Biotech, will be the sole provider of materials for production of the shots. The announcement is vastly helpful news for investors; it shows Ocugen has a plan and is ready to move immediately upon approval.
And speaking of approval, the company could be seeing the green light sooner than you think. After delaying discussion twice, the WHO says it is convening this week to finally talk about the approval status of Covaxin. Monday saw the first of four consecutive meetings on the Covaxin shot and whether it is both safe and effective enough for approval.
OCGN Stock Surges on Materials Announcement, Investors Await WHO Approval
This news is huge for OCGN. After waiting months on end for an approval, a green light from the WHO will allow the company to get its shots into millions of arms. The biggest beneficiary of the approval stands to be India, one of the most densely populated countries in the world. Bharat Biotech is Ocugen’s closest development partner, its newly announced material provider, and a company being rooted on by the Indian population. Given that only 18% of the country is fully vaccinated, the approval could do wonders for stifling the spread of the virus there.
Beyond this, investors can be sure that even after approval, Ocugen is looking to remain a top biotech play. The company is not forgetting its roots in fighting ocular diseases. The company is partnering with Chinese company CanSinoBio to develop a gene therapy to treat inherited retinal diseases.
Since the market’s opening, OCGN stock has been building price momentum. OCGN is currently up over 11% after its small surge in pre-market. It’s also trading at very high volumes; just moments into the session, nearly 15 million shares of the stock are trading hands. On an average day, OCGN sees about 14 million shares traded by the closing bell.
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.