Biotech play Ocugen (NASDAQ:OCGN) is one that’s flying today. Currently, OCGN stock is more than 11% higher at the time of writing on very heavy volume.
Today’s move in Ocugen caps off a 40% move over the past five trading days alone. This is a vaccine-related stock that has continued to rally due to a number of catalysts of late.
Among the key catalysts that investors have focused on is this company’s Covaxin vaccine. Yet another Covid-19 vaccine, Ocugen’s partnership with Indian Bharat Biotech as the company’s U.S. arm has garnered a lot of attention. Ocugen’s potential to bring this vaccine to market domestically has been a key factor to debate among investors.
On the one hand, Bharat has seen incredible success in emerging markets. This is a vaccine that has gained approvals in a number of key markets. In fact, India just approved Bharat’s vaccine for use in children as young as two years old. Accordingly, investors in Ocugen have been banking on a U.S. authorization for some time.
However, such an authorization has not happened.
Let’s dive into why sentiment around Ocugen is starting to improve on this front today.
OCGN Stock Higher on Expectation Covaxin Could Get WHO Approval
Today, reports have circulated that the Ocugen-Bharat Covaxin vaccine could see World Health Organization (WHO) approval as soon as this week.
This announcement would add further credence to regulators looking at Covaxin in various markets. For Ocugen, looking to bring Covaxin to the U.S., such a move could be game-changing.
Previous delays with Ocugen’s emergency use listing from the WHO due to technical queries sent to Bharat have caused some volatility in Ocugen’s stock price. However, a confirmation from the WHO that this vaccine is safe for use could boost Ocugen’s chances of getting approval in the U.S.
Indeed, some investors may wonder if the window of opportunity is closing on the vaccine market in the U.S. Yes, booster shots have been approved. However, given the vaccine hesitancy that’s being seen right now, it’s unclear whether a new vaccine will be successful, or in high demand, should an approval be granted.
Accordingly, OCGN stock appears to be one that investors are likely to experience volatility with. Investors should take due care to size positions accordingly and ensure this investment fits their individual risk profiles.
On the date of publication, Chris MacDonald 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.