Clinical-stage biopharmaceutical company Ocugen (NASDAQ:OCGN) is up big today as omicron cases continue to spread across China. OCGN stock is up nearly 16% heading into the afternoon as investors remain hopeful about the company’s prospects.
So what’s going on with Ocugen lately?
Well, Ocugen is likely a beneficiary of the wave of new Covid-19 cases popping up across the world. China in particular is in the midst of its most intense wave of Covid-19 since 2020. As such, it should come as little surprise that vaccine makers have seen newfound attention of late. This, of course, includes Ocugen, which has some commercial rights to Covaxin.
Ocugen partnered with Bharat Biotech as the North American distributor of Covaxin. Under the deal, Ocugen takes home 45% profits from vaccines distributed in the United States and Canada. This means that even if China or other countries outside North America purchased Covaxin, Ocugen wouldn’t see revenue.
However, the wave of new cases is once again sparking positivity around OCGN stock.
Rare Bright Spot for OCGN Stock as Company Pursues FDA Approval
OCGN has seen its share of troubled times in the past few years. Shares are down about 11% in the year to date, although they are still up 16% over the past six months.
Just this month, the U.S. Food and Drug Administration (FDA) declined to grant Ocugen emergency-use authorization (EUA) for the pediatric use of Covaxin. With Covid-19 cases slowing down in the United States, Ocugen was hoping the market for individuals under 18 would help it gain. The company says it will continue to pursue full approval of its vaccine in the U.S. market. It has also not abandoned the pediatric use request.
OCGN bulls are also likely waiting to hear more from its clinical-stage blindness treatment. In December, the FDA accepted Ocugen’s investigational new drug application for its gene therapy candidate, OCU400. It’s a novel treatment of retinitis pigmentosa, and one many have high hopes for.
On the date of publication, Shrey Dua 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.