Ocugen’s Recent Vaccine Efficacy Results Should Have Traders Cheering

Stocks to buy

Investing in clinical-stage biopharmaceutical companies can be hit-or-miss. Other companies are advancing Covid-19 vaccines, of course, but Ocugen (NASDAQ:OCGN) is unique and OCGN stock is still highly affordable.

a number of test tubes and capsules are pictured under a cool blue light representing biotech stocks

Source: Shutterstock

Before taking a position in Ocugen, though, you’ll definitely want to conduct your due diligence. Biotech stocks can move fast — and by that, I mean in either direction. OCGN stock has had its fair share of ups and downs. Yet catching the stock at the right time — particularly when it’s down from its peak price level — can lead to exceptional profits.

Not that profits are ever guaranteed. It would be impossible to do that. Still, a powerful partnership has placed Ocugen in a unique position to address a viral strain of the novel coronavirus that’s impacting the population on a global scale.

OCGN Stock at a Glance

It seems like ages ago now, but in December of 2020 OCGN stock was trading at around 30 cents per share. That’s before the stock went vertical in early February.

During the height of meme-stock mania, the Ocugen share price rose to a 52-week high. The jaw-dropping peak? This stock reached $18.77 on Feb. 8.

The price chasers who bought during the hype phase got punished, however. Painfully, OCGN stock declined over the next few months, even reaching the $5 level in mid-April.

But here’s where it gets a little bit spooky. In May, the Ocugen share price rallied to almost exactly the same price level that it had reached in February. Was the meme-stock, short-squeeze crowd responsible for this? Or, was it just a coincidence?

Either way, the outcome was the same in both instances: a quick pop followed by a gradual drop. By Jul. 7, OCGN stock was down to $7.16 — a pretty good discount and an opportunity to grab some shares at a reasonably favorable price point. Today, it still trades at that $7 level.

A Critical Step

So, let’s start with the basics behind OCGN stock. Ocugen’s Covid-19 vaccine candidate is known as Covaxin. Currently, the company is developing Covaxin for the U.S. market with a partner called Bharat Biotech. We’ll definitely have news about Bharat to discuss in a moment. But for now, investors need to know that Ocugen has that company in its corner as well as another partner of significance.

More specifically, Ocugen selected Washington state-based Jubilant Hollisterstier as its manufacturing partner for Covaxin, potentially to be commercially manufactured for the U.S. and Canadian markets. As emerging Covid-19 variants threaten North America, Ocugen will certainly benefit from securing that U.S.-based manufacturing capability.

In fact, this move with Jubilant — according to J.P. Gabriel, Ocugen’s senior vice president for Manufacturing and Supply Chain — “is a critical step as we prepare to submit our regulatory submissions to the FDA and Health Canada.” Moreover, Jubilant Pharma Limited CEO Pramod Yadav reported that his company has “two facilities in North America working to manufacture multiple COVID-19 vaccines and therapies.”

Continuing the Efforts

No doubt, having a North American manufacturing partner should provide an advantage for Ocugen and OCGN stock. However, the investors want to see positive clinical data. That’s often a make-or-break factor in the biopharmaceutical business.

But the good news is that Ocugen’s partner, Bharat Biotech, recently released encouraging results concerning its Phase 3 study of Covaxin.

First, Covaxin demonstrated 77.8% efficacy against mild, moderate and severe Covid-19. Yet, that’s not the best part of the news release.

Here’s the part that should grab your attention: Covaxin demonstrated 93.4% efficacy against severe Covid-19 disease alone. Ocugen’s CEO, Shankar Musunuri, justifiably asserted that this Phase 3 study analysis comes at “a crucial time” as the world braces for another potential wave of Covid-19 outbreaks from the Delta variant.

Furthermore, Bharat Biotech isn’t done yet — not even close. In regard to Covid-19 variant strains, Bharat Biotech Chairman and Managing Director Krishna Ella stated, “We continue our efforts towards additional studies on variants of concern.”

The Takeaway on OCGN Stock

The ongoing battle against Covid-19 will take different forms and pathways. There are no easy solutions here. However, Ocugen appears to be on the right track — and that could mean great things for OCGN.

With partner companies Jubilant Hollisterstier and Bharat Biotech, Ocugen is demonstrating excellent progress. As such, in time, OCGN stock could prove its value to skeptical traders.

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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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