Ocugen (NASDAQ:OCGN) holders are looking at the light at the end of the tunnel this morning. The biotech play has had quite the interesting year, full of ups and downs, but it could be paying off soon. As the company lies in wait for full approval of its novel coronavirus vaccine, it seems as though OCGN stock is getting a hopeful boost with one major breakthrough today. Investors are keeping their fingers crossed that this hype proves worthy.
Ocugen stock is spending the morning inflating by over 16.5%, after a great bit of upward momentum throughout pre-market trading. Indeed, it seems investors are getting a bit antsy after the conclusion of the World Health Organization’s discussions of its approval of Ocugen’s Covaxin vaccine. They’re also celebrating a catalyst thanks to the Indian government.
The biotech outfit and its partner from India, Bharat Biotech, have been targeting approval for the U.S. market for a long while now. Unfortunately, they were slightly late to the game in terms of getting its vaccine ready for commercialization; the U.S. Food and Drug Administration (FDA) refused to grant emergency use authorization (EUA) to the Covaxin vaccine early this summer. The companies have since pivoted, announcing that they are seeking full approval in the U.S. market, rather than EUA.
Elsewhere, the pair of companies are seeking approval from the World Health Organization (WHO) for the vaccine. Upon approval, Bharat and Ocugen can began commercializing the vaccine and distributing it to other locations in dire need of vaccines. Of course, India is one such country, where only about one-fifth of the population is fully vaccinated.
OCGN Stock Sees Gains as It Secures Indian Government Approval, Awaits WHO Ruling
The WHO met last week to discuss Covaxin and whether or not the organization will greenlight it for use. A four-day event wrapped up toward the end of the week. Now, OCGN stock holders and the companies are on the edges of their seats as they anticipate a ruling. The organization’s announcement could come in the next few days.
Meanwhile, investors have something a little more definitive to celebrate this morning with. That’s the fact that Covaxin secured approval from India’s national drug regulator for use in children between the ages of 2 and 18.
A main concern the world faces is in getting vaccines to children. With the rollout of the first vaccines, adults receive the brunt of emphasis, especially older ones; however, there is now an effort to make sure the shots are safer for younger people. The approval for Covaxin is helping Ocugen to get at the forefront of addressing this need in a country that desperately needs it. As the companies sit in wait of the WHO’s word, this news is a promising catalyst for the stock.
Of course, OCGN stock is reflecting the magnitude of the approval. Shares are up over 16.5%, with over 61 million shares trading hands. This is far larger than a typical day for OCGN, which sees an average of 13 million shares trading in a given day.
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.