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Why Ocugen Stock Is Crushing It Today

By Keith Speights - Jan 4, 2021 at 12:01PM

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Investors are excited about big news for Ocugen's Indian partner.

What happened

Shares of Ocugen ( OCGN -6.25% ) were skyrocketing 64.2% higher as of 11:35 a.m. EST on Monday. The huge gain came after the company's partner, Bharat Biotech, received emergency use authorization (EUA) in India for COVID-19 vaccine Covaxin.

So what

Investors appear to expect that Bharat's big win for Covaxin in India could translate to success for Ocugen in the U.S. On Dec. 22, Ocugen and Bharat announced a binding letter of intent to jointly develop Covaxin for the U.S. market.

Coronavirus vaccine vial and syringe in front of an Indian flag

Image source: Getty Images.

However, an EUA in India doesn't mean that Covaxin is a slam dunk to win EUA in the U.S., as well. Importantly, neither Bharat nor Indian regulators revealed the efficacy of the vaccine. COVID-19 vaccines from Pfizer and Moderna are already on the market in the U.S. with efficacy levels of 94% or greater.

Covaxin doesn't have an advantage in terms of dosing compared to these leading vaccines. Like Pfizer's BNT162b2 and Moderna's mRNA-1273, it requires two doses. 

Now what

In December, Ocugen stated that it had put together an advisory board of "leading academic and industry experts to evaluate the clinical and regulatory path to approval in the U.S. market." The next key catalyst for the biotech stock could be the announcement of the details of the plan to win EUA for Covaxin in the U.S. market. For now, though, what happens in India stays in India.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Ocugen, Inc. Stock Quote
Ocugen, Inc.
$5.40 (-6.25%) $0.36
Pfizer Inc. Stock Quote
Pfizer Inc.
$51.48 (-5.14%) $-2.79
Moderna, Inc. Stock Quote
Moderna, Inc.
$265.33 (-13.49%) $-41.39

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