That said, for investors who understand the potential downside, there is an intriguing story here. Learn More. Keith Speights for Investors were hopeful that the small drugmaker would be able to win U.S. Can you feel the ground moving beneath your feet? You canfollow Will on Twitterat @HealyWriting. Ocugen sold $25 million of stock in a private placement before the merger. Shares of Ocugen ( OCGN) skyrocketed over 800% in the past three trading sessions after the biopharmaceutical company disclosed it had signed a binding letter of intent (LOI) with India based. These symbols will be available throughout the site during your session. Do Not Sell My Personal Information (CA Residents Only). Names like Ocugen (NASDAQ:OCGN) arent trading for about 50 cents apiece by accident. Will Be Even Bigger Than Your Wildest Expectation, 7 Over-$100 Stocks That Are Worth Every Penny, Louis Navellier and the InvestorPlace Research Staff, 5 Penny Cryptos With the Most Potential for Growth. As of this writing, Vince Martin has no positions in any securities mentioned. Companies will inevitably be optimistic about their prospects for success (at least publicly). The statistics support having long-term exposure to this asset class. CFO Sanjay Subramanian said that there was "the potential for near-term revenue," depending on the EUA. The OCGN stock forecast 2022 outlook suggests that Ocugen's stock may struggle in the short term. If youre not convinced by now, maybe you will consider OCGN stock a poor investment when looking at the fundamentals. These options will be cheaper than owning the stock itself. And its at least possible that OCGN could wind up being a winner. Biotech companies have emerged from similar levels to become huge winners, as evidenced simply by looking at some of the best biotech stocks for 2019. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Probably the most important thing to do after Ocugen's crash, though, is to identify lessons learned and apply them to future investing decisions. Maybe. Sign up below to get this incredible offer! Investors should worry about companies with no revenue even under the best of circumstances. *Stock Advisor returns as of November 20, 2020. In the late summer of 2018, the stock crashed below $1 per share as investors sold off following a failed phase three trial. An unprofitable biotech that focused on commercializing therapies to cure blindness prior to the present pandemic, Ocugen ( OCGN) stock took on a new life on December 22, when it announced. Add in a $31 million market capitalization and potentially significant cash burn, and Ocugen stock self-evidently is not for risk-averse investors. 1125 N. Charles St, Baltimore, MD 21201. However, sometimes the optimism isn't justified. Ocugen Inc. stock rises Wednesday, outperforms market Feb. 22, 2023 at 5:14 p.m. Lorem ipsum dolor sit amet, consectetur adipiscing elit. A partnership with a respected Asian biotechnology company offers some validation to the pipeline, and a key product is progressing through Phase III trials. On June 10, though, Ocugen announced that the U.S. Food and Drug Administration (FDA) had effectively shut the door on an EUA filing. Cassava Sciences (NASDAQ:SAVA) has soared 454% in just the last three months. All rights reserved. However, the Strong Buy consensus rating is backed with a $0.9 price target, which implies downside of 68% from current levels. Invest better with The Motley Fool. Typically, I care little about financials with biotechs. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. As of this writing, Matt did not hold a position in any of theaforementioned securities. To make the world smarter, happier, and richer. In this case, shares rallied about four-fold in just a few days. It brings in no revenue. The short answer is: everything. In other words, it means that even by biotech standards OCGN stock is an enormously risky play. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. It has real products. Article printed from InvestorPlace Media, https://investorplace.com/2020/01/ocugen-stock-faint-heart/. However, due to the fact the details of the definitive agreement have yet to be finalized, in addition to the current lack of insight into the U.S. regulatory pathway or commercial strategy, Ramakanth stays on the sidelines for now. But any success they find will be without me as a shareholder. How can we possibly evaluate a stock on a fundamental basis with that being reality? Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. These symbols will be available throughout the site during your session. How long might it take for Ocugen to win full FDA approval for Covaxin? Shares of Ocugen (OCGN 4.03%) were crashing 19.2% lower as of 11:23 a.m. Matthew McCall left Wall Street toactually helpinvestors by getting them into the worlds biggest, most revolutionary trends BEFORE anyone else. 86% of retail CFD accounts lose money, Benzinga's Top Ratings Upgrades, Downgrades For March 1, 2023, Ocugen upgraded at Chardan citing attractive entry point ahead of catalysts, Analysts Are Bullish on These Healthcare Stocks: Theratechnologies (THTX), Ocugen (OCGN), Ocugen (OCGN) Gets a Buy from H.C. Wainwright, Mizuho Securities Sticks to Their Buy Rating for Ocugen (OCGN), Ocugen (OCGN) Q4 2022 Earnings Call Transcript, Why Catalyst Biosciences Shares Are Trading Higher By 105%; Here Are 20 Stocks Moving Premarket, Registration on or use of this site constitutes acceptance of our. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. From a near-term standpoint, there are two key risks. If it goes down, your loss won't be as great as it would be if you held onto all of your shares. Investors need to understand the risk profile here. Its worth emphasizing: Ocugen stock is a play with enormous risk. Thats one of the best rallies weve seen in that amount of time (95 trading sessions, 136 days). OCGN does not even appear to have an apparent reason to exist. Ocugen shares jumped to $3.50 on massive volume in December when the Covaxin partnership was announced. 5 Hypergrowth Stocks With 10X Potential in 2023, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. The Ocugen 52-week low stock price is 0.93, which is 1.1% below the current share price. Create your Watchlist to save your favorite quotes on Nasdaq.com. I will just say this on Ocugen: Theres a reason it trades for sub-$1 after hitting resistance near $180 in 2018. The Ocugen deal is a way to salvage some limited value. Its certainly possible. 7 Travel Stocks to Buy Banking On Pent-Up Demand. David and Tom just revealed what they believe are the ten best stocks for investors to buy right now and Ocugen, Inc. wasn't one of them! Thats not a new problem: a previous Phase 1/2 study, according to the prospectus, was discontinued early due to slow enrollment. The company noted that additional trials may be required as well. To be sure, current cash isnt enough. In the late summer of 2018, the stock crashed below $1 per share as investors sold off following a failed phase three trial. Instead, this appears destined to join the long list of failed biotech startups. This can prove to be a costly lesson to learn. 7 Penny Stocks Poised for Explosive Growth in 2023, With No Revenue or Approved Treatments, Ocugen Stock Is a Clear Sell. Nasdaq Those lessons will vary between different investors, but I'll point out a major one to keep in mind. If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Unfortunately, when the market bounced in late March 2020, Ocugen kept heading lower. 10 stocks we like better than Ocugen, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The vaccine reportedly has a 78% efficacy rate against COVID-19, significantly lower than leading vaccines granted FDA emergency authorization. So far, that merger hasnt worked out for Histogenics former shareholders. This decision isn't surprising, considering that Ocugen previously abandoned the pursuit of an EUA path for the vaccine in adults. Copyright Admittedly one could argue that it could have been bought for a quarter and sold for 75 cents, but hindsight is 20/20 in all of these names. The Ocugen deal is a way to salvage some limited value. The FDA gave a thumbs-down to Ocugen's EUA request for the pediatric use of Covaxin. COVID-19 vaccines from Pfizer and Moderna are already on the market in the U.S. with efficacy levels of 94% or greater. Honestly, OCGN stock is unlikely to survive. The generic form of brimonidine, the active ingredient, is not approved for the condition, according to Ocugens most recent presentation. Our 3 Top Picks. All rights reserved. If Ocugen goes up, you can still profit. The Motley Fool has a disclosure policy. CanSinoBio will receive some of the profits, but Ocugen still would skyrocket with FDA approval and ensuing revenue and there are more products in the pipeline. Custom BMW. All rights reserved. The first is that Ocugen is facing potential delisting from the NASDAQ given that its share price still sits well below $1. In 2018, its NeoCart biologic failed to meet the primary endpoint of its own Phase III trial. Theres even room for more lines. The risk-reward proposition for Ocugen is obviously much different now than it was when individuals were buying the stock over the last several months. Even before that point, the most promising candidates generally can find funding. 2023 InvestorPlace Media, LLC. Related Link: If You Invested $1,000 In Moderna Stock One Year Ago, Here's How Much You'd Have Now. MALVERN, Pa., April 28, 2021 (GLOBE NEWSWIRE) -- Ocugen, Inc. (Nasdaq: OCGN), a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness. A bout of buying in late July sent shares from 20 cents apiece to above 90 cents a share a few days later. Investors who have owned stocks in the last year have generally experienced some big gains. Other than an emphasis on cell therapies, the companies had almost nothing in common. What should investors do now? Type a symbol or company name. OCGN Ocugen Inc 155,223 $0.9721 $0.0263 (2.63%) Lorem ipsum dolor sit amet, consectetur adipiscing elit. The equity has experienced a continual decline for years. 5 Hypergrowth Stocks With 10X Potential in 2023, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. Written by In November, Bharat Biotech began Phase 3 testing of Covaxin in India. Shares fell 72% on the news, and kept falling after Histogenics decided to suspend development of the product in December 2018. Do not expect this to become the biotech who made good like Biogen (NASDAQ:BIIB). MALVERN, Pa., May 29, 2018 /PRNewswire/ -- Ocugen, Inc., a rapidly growing ophthalmology company developing a rich clinical pipeline of innovative therapies that address rare and underserved ocular diseases, today announced that it will present at the 2018 BIO International Convention, taking place June 4-7, 2018, in Boston. Some of the names will rally big, putting together epic squeezes that can double or triple the stock prices in just a few days. With $3.2 million in cash vs. current liabilities of $3.3 million, Ocugen likely has enough cash on hand to cover its short-term obligations. Objective investors could have clearly seen then that there actually were significant reasons to be concerned. Ocugen Inc First Quarter 2022 Financial Results and Recent Business Highlights 04/21/2022 Noble Capital Markets' Eighteenth Annual Investor Conference 03/14/2022 34th Annual ROTH Conference 02/25/2022 Ocugen, Inc. Q4 and Full Year 2021 Financial Results and Recent Business Highlights 01/10/2022 H.C. Wainwright Bioconnect Conference 12/22/2021 At the beginning of 2020, Ocugen shares were trading at just 47 cents. That product drives the current bull case for Ocugen stock. There's a pretty good case to be made that other stocks offer even better prospects for returns with lower risk than Ocugen does. If you already owned Ocugen stock before the company's disappointing news, you have several alternatives. CanSinoBio will be able to fund much of the development of OCU300, Ocugens flagship product that targets oGVHD (ocular graft versus host disease), a common complication of bone marrow transplants. The stock ultimately hit its 2020 low on June 1 at a price of just 17 cents. Just a few days ago, Ocugen (NASDAQ: OCGN) was flying high with shares up more than 460% year to date. Considering Bharats reputation for world-class R&D and manufacturing capabilities in vaccines and bio-therapeutics, H.C. Wainwright analyst Swayampakula Ramakanth thinks the company is a suitable partner.. *ALL INFO ABOUT THE BIKE AND GEAR USED DOWN BELOW**If not listed it's left stock*BIKE: 2018, BMW R NINET SCRAMBLER.EXHAUST: Akrapovic Headers, Uni. Bharat's offering COVAXIN, a whole-viron inactivated COVID-19 vaccine candidate, has already shown promise in Phase 1 and 2 clinical trials in India and the enrollment of 26,000 subjects for the Phase 3 study is currently underway. Ocugen, previously a private company, instituted a reverse merger, which they completed on Sep. 30. You never know when they will suddenly go on a squeeze. The point is, the risk/reward of owning something like Ocugen is simply not worth it vs. having even basic equity exposure. The company's product pipeline consists of OCU400, OCU300, OCU100 and OCU200 which are in clinical stage. Ocugen, Inc. is a biopharmaceutical company, which engages in the development and commercialization of therapies to cure eye diseases. If were playing that game then Im buying LEAP call options on Apple and Amazon in March. This requires no immediate effort on your part. However, when that occurred, Ocugen stock lost most of its value. While anything is possible, I would not anticipate a miracle here. Part of the proceeds will be used to support its partnership with Bharat. The company does not earn revenue, relying on grants, a dwindling cash position, and stock dilution to keep its doors open. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. The $25 million private placement executed before the merger brought in much-needed cash. If you missed that action, you missed all the gains. In that list, you can even include penny-stock trader. Theres an opportunity here. The company has a gene therapy platform as well as two preclinical compounds that aim to treat retinal diseases. The company was founded by Shankar Musunuri and Uday B. Kompella in 2013 and is headquartered in Malvern, PA. Article printed from InvestorPlace Media, https://investorplace.com/2019/12/no-pathway-forward-for-ocugen-stock/. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Nano-cap biotech play Ocugen has an intriguing story and a ton of risk. Investing is always a game of balancing risk and reward. Over the next few weeks, Ocugen is expected to meet with the FDA to discuss how to advance COVAXINs development. The reverse merger with Histogenics was a disappointment, but the purchase price for the NeoCart intellectual property suggests that company had little chance of survival on its own. The Motley Fool has a disclosure policy. That's right -- they think these 10 stocks are even better buys. Axsome Therapeutics (NASDAQ:AXSM) had an equity value below $75 million in March 2017; its now worth over $3 billion after rising over 1,000% last year. The simplest thing to do is to hang onto the stock and hope that it recovers sooner or later (which is a possibility). Ocugen had to go an unusual route to go public. Ocugen isnt a promotional, fly-by-night penny stock. It means that raising capital will be more difficult going forward. Keith Speights has no position in any of the stocks mentioned. For more information on how our historical price data is adjusted see the Stock Price Adjustment Guide. On its first trading day as OCGN stock, it lost almost 64% of its value and closed that day at $2.85 per share. The potential synergies of such a union do not seem clear. However, the marriage of Histogenics and Ocugen looks destined to end in a suicide pact instead of a mere divorce. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Its product pipeline candidates include OCU400, OCU410, OCU200, and COVAXIN. Plus500. Keith Speights for Like other life sciences companies involved in Covid-19 vaccine. *Average returns of all recommendations since inception. Ocugen In 2021, Beyond: Optimism about Covaxin coupled with massive short squeezes in a handful of popular social media stocks sent Ocugen shares skyrocketing up to as high as $18.77 in February 2021. Another alternative is to sell some or all of your Ocugen stock and invest the money elsewhere. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. The Ocugen 52-week high stock price is 4.03, which is 328.7% above the current share price. Cost basis and return based on previous market day close. Ocugens Big Run: One company that has been a home-run investment in the last year has been biotech stock Ocugen Inc (NASDAQ:OCGN). Emergency Use . Literally, zero. For now, though, what happens in India stays in India. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. The biotech stock promptly crashed by more than 30%. For most of its history, what we now know as Ocugen stock was Histogenics, a cell therapy company focused on orthopedics. Until July 20, when OCGN stock jumped about 20%, shares were down 21% from the March low. But just because a company does not have crippling debt doesnt mean its a buy. The Motley Fool has no position in any of the stocks mentioned. Ocugen Inc Stock - OCGN Share Price Today, News and Discussion 0.90% SPY 0.59% QQQ 0.60% TSLA 6.12% SI 60.35% CRM 11.51% RIVN 0.32% ARKK 0.96% RLY.X 56.44% PLUG 6.72% V 0.22% CDIO 13.87% RETA 5.92% More Advertisement 3rd Party Ad. However, an EUA in India doesn't mean that Covaxin is a slam dunk to win EUA in the U.S., as well. Conditions only seem to get worse for Ocugen (NASDAQ:OCGN). Conditions have only become worse since that time. Hence, instead of ruining just two lives, this new Ocugen may be destroying the investment future of all who buy. From the outside looking inward, it looks like a marriage of two people who got together simply because nobody else would take them. Historical daily share price chart and data for Ocugen since 2023 adjusted for splits. Bharat Biotech has a history of successful vaccine commercialization in South Asia. I am all for a good opportunity, but I dont know why some investors insist on penny stocks. The second is that the balance sheet still needs some help. Ocugen hasn't stated yet when a potential late-stage study of Covaxin could start. The market capitalization of Relmada Therapeutics (NASDAQ:RLMD) went from under $10 million at the end of 2017 to over $500 million at the moment. Nasdaq Until July 20, when OCGN stock jumped about 20%, shares were down 21% from the March low. *Stock Advisor returns as of June 7, 2021. Ocugen has responded to Health Canada regarding deficiencies identified with its regulatory filing for Covaxin. Investors were hopeful that the small drugmaker would be able to win U.S. Maybe OCGN stock will be one of them again. It has real management. Histogenics itself highlights the risks involved in small-cap biotech. All rights reserved. Ill be sticking to the stocks that are actually working. The company is led by CEO and Co-founder, Shankar Musunuri, and entered into the public equity market in 2019 via. The firm's modifier gene therapy platform is engaged in addressing retinal diseases, including retinitis pigmentosa, leber congenital amaurosis, and dry age-related macular degeneration. For now, the biggest near-term hope for Covaxin may be that Canada or another developed economy will buy the vaccine to share with developing nations. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. If they have solid financials, but their trials continually fail, they will likely not succeed. After encouraging preliminary results, Ocugen began trying to sell 100 million doses of the vaccine in February. To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Copy and paste multiple symbols separated by spaces. Ramakanth believes the broad immunity targeting different components of the virus could potentially provide better protection against emerging mutant viruses, such as the one currently circulating in the UK. With this in mind, in the Phase 1 study, COVAXIN has shown robust antibody responses against spike (S1) protein, receptor-binding domain (RBD) and the nucleocapsid (N) protein of SARS-CoV-2. Unfortunately for investors, the U.S. FDA did not grant Covaxin an Emergency Use Authorization and instead recommended in June that Ocugen opt for a Biologic License Application that will likely require additional Phase 3 testing. What Is the Best EV Stock to Buy Now? The stock had gained some traction after they announced the. Not an offer or recommendation by Stocktwits. Considering the conditions facing the company, I do not recommend Ocugen stock regardless of risk tolerances. Even at around 40 cents per share, I would consider Ocugen stock overvalued. Theres even room for more lines. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Shares fell 72% on the news, and kept falling after Histogenics decided to suspend development of the product in December 2018. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. 1125 N. Charles St, Baltimore, MD 21201. That's not going to happen now. But theres a big difference in having an edge flipping sub-$5 stocks vs. combing over this group as an investor looking for sound fundamentals and a mistakenly low stock price.