Ocugen (NASDAQ:OCGN) was one of the most explosive stocks, at one point. In fact, from a December 2020 low of about 29 cents, the stock exploded to $17.65 by November 2021. All thanks to hopes for its coronavirus vaccine, Covaxin. Even Noble Financial analyst Robert LeBoyer had an outperform rating on the stock, with a target of $15 a share at the time.
Unfortunately, it fell apart shortly after because of all the red flags. In fact, as I noted on Feb. 9, “Unless it can get emergency use authorization in the U.S. and Canada, it’s not likely to make money. Coupled with fierce coronavirus vaccine competition, the existing agreement with Bharat Biotech isn’t actually good for the company. I wouldn’t rush to buy the stock.”
With Too Many Red Flags, Avoid the OCGN Stock
No wonder the OCGN stock now trades at $2.25, and falling. Making matters worse, the US FDA declined to grant emergency use authorization for pediatric use. It also placed a clinical hold on Phase 2/3 studies for Covaxin in the U.S.
“Ocugen said the FDA’s action is the result of the company’s decision to voluntarily implement a temporary pause in dosing participants while it evaluates statements made by the World Health Organization following its inspection of Bharat Biotech International Ltd.’s manufacturing plant. The WHO said it discovered manufacturing deficiencies at the plant during an inspection in March,” reported Philadelphia Business Journal contributor John George.
So, hopefully you listened, and avoided the OCGN dud. Granted, the company does have other pipeline candidates, which focus on eye diseases. However, late stage studies are still far off.
For example, the company is in pre-clinical trials for dry age-related macular degeneration, diabetic macular edema, diabetic retinopathy and wet age-related macular degeneration. In short, there’s nothing to get excited about here. Avoid the OCGN stock, as it heads significantly lower.
On the date of publication, Ian Cooper 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.