OCGN Stock Alert: This Covaxin Update Is Sending Ocugen Rallying

Last week brought plenty of turbulence for Ocugen (NASDAQ:OCGN), but today began with what promises to be a positive development for investors. When reports broke that the World Health Organization (WHO) had begun its review of the Covaxin Covid-19 vaccine last week, OCGN stock began to surge. Unfortunately the day of celebration was cut short when regulators announced that the decision was being delayed. Shares plunged as quickly as they had risen. The WHO still hasn’t met for its final assessment, but Australia’s government has confirmed that they will add Covaxin to the list of accepted vaccines for travelers.

A bunch of glass vials of SARS-CoV-2 vaccines.

Source: Shutterstock

What’s Happening With OCGN Stock?

Shares are reacting well to this news so far. OCGN stock outperformed the market on Friday and its gains are continuing into this week as trading kicks off.

In the first hour of trading, it is up nearly 9%. Despite declining last Tuesday, the stock has been rising steadily since, currently up more than 38% for the past five days.

More impressive are its gains for the month of October, which passed 81% this morning. The stock is almost back to the prices it saw in May 2021, its highest point for the past six months. As it heads into November, it’s tempting to foresee a rosy outlook for OCGN stock.

However, there are plenty of questions that remain unanswered.

What It Means

Ocugen’s road to establishing itself as a key player in the vaccine race has been long and complicated. If the events of last week are any indication, that journey not over yet.

This development from Australia is certainly good news for Ocugen. Essentially, it is a vote of confidence in its partner’s vaccine from a prominent world government. If Bharat Biotech’s vaccine is able to get Indian travelers into different countries, Covaxin gets further legitimacy. For investors then looking for a sign that Ocugen will be able to succeed in the U.S. and Canada, that helps the bull case.

However, so much is in the hands of the WHO. Ocugen needs a concrete (and positive) answer from global health regulators to see sustained, long-term growth.

Unfortunately, time doesn’t seem to be on Ocugen’s side. The company’s hopes of gaining a market share among better-established vaccine producers are dependent on gaining access to larger markets, chiefly the U.S. and Canada. As InvestorPlace contributor Thomas Niel noted last week, Canada’s high vaccination rates may make it difficult for new companies to secure a piece of the market. That same trend is finally catching on in the U.S. as more employers mandate vaccinations, making it less likely that Covaxin will catch on as a popular option.

Why It Matters

While the company awaits a thumbs up from the WHO, though, things are looking up for its competitors. Fellow vaccine producer Novavax (NASDAQ:NVAX) continues to generate positive coverage despite its recent controversy. Novavax is still awaiting news on authorization in the U.K., but it just got a green light from Indonesia’s regulators.

So what comes next? Regulators have confirmed that the WHO could resume its review — and make a decision on Covaxin — as soon as Nov. 3. Keep a close eye on vaccine news.

On the date of publication, Samuel O’Brient 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.

Article printed from InvestorPlace Media, https://investorplace.com/2021/11/ocgn-stock-alert-this-covaxin-update-is-sending-ocugen-rallying/.

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