Shareholders of Ocugen (NASDAQ:OCGN) are having a volatile week to say the least. For starters, the U.S. Food and Drug Administration (FDA) lifted its clinical hold on the company’s Investigational New Drug (IND) application for Covaxin. This sent shares of OCGN stock soaring to as high as $4.53. However, after the price increase, the biopharmaceutical company announced that it had commenced the public offering of 16 million common shares for total proceeds of $53.5 million. In addition, Ocugen granted the underwriter the option to purchase an additional 2.4 million shares within 30 days. As a result of the public offering, shares of OCGN stock are down more than 20%.
Ocugen stated that it will use the proceeds from the offering for “general corporate purposes, capital expenditures, working capital and general and administrative expenses.” Since the FDA recently lifted its clinical hold on Covaxin, some of the proceeds will likely go toward clinical studies. Covaxin already has applications for emergency use authorization (EUA) in over 60 countries.
So, where will Ocugen head from here? Well, one analyst has a price target as high as $15, implying upside of more than 350%. Let’s jump right in.
3 Analysts Weigh In on OCGN Stock
- Cantor Fitzgerald has a price target of $15. Analyst Kristen Kluska explains that preliminary data from a Covaxin study demonstrated a higher interim efficiency than expected. Additionally, earlier data “demonstrated promising signals in humoral and cellular responses against multiple viral proteins.” However, Kluska highlights that Ocugen carries severe downside risk if Covaxin is not successful or approved.
- Roth Capital has a price target of $6. Analyst Zegbeh Jallah was concerned with the timeframe of Ocugen’s drug approval process and expects further clinical studies to be costly and time-consuming. However, the analyst is hopeful for OCU400, a novel gene therapy candidate, and believes it gives the company diversification.
- Chardan Capital Markets has a price target of $4.50. Analyst Keay Nakae lowered his price target after the company announced that it would no longer seek EUA approval from the FDA. The analyst had previously stated that EUA for Covaxin was a big factor for his previous price target of $13.
- Finally, Ocugen has an average price target of $8.88 among four firms with coverage of the stock.
On the date of publication, Eddie Pan did not hold (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.