One of the favorite stocks of retail investors in recent years has been Ocugen (NASDAQ:OCGN). This clinical-stage biopharmaceutical company has surged in interest, particularly due to its partnership with Bharat Biotech to develop a Covid-19 vaccine. Today, this enthusiasm appears to be strong, with OCGN stock surging more than 10% at the time of writing.
Essentially, Ocugen has the U.S. and Canadian rights to Bharat Biotech’s Covid-19 vaccine, Covaxin. India and several other countries have already approved this vaccine. However, Ocugen’s revenue in the relationship comes from sales of the Covaxin vaccine in U.S. and Canada. Accordingly, without formal approval, critics says its window of opportunity has been slowly closing for some time.
That said, there are a couple reasons why investors are looking at Ocugen once again. Let’s dive into what’s driving interest in this stock today.
Why Is Ocugen Soaring Today?
As InvestorPlace Assistant Financial News Writer Shrey Dua pointed out in a recent piece, some of this positive sentiment can likely be tied to surging Covid-19 cases in China. The outbreak, and regulatory response by the government, has made lots of headlines. However, continued interest around vaccines in general has boosted the valuation of Ocugen and its peers of late.
The thing is, Ocugen isn’t likely to see any direct benefit from an outbreak in China. As of right now, its Covaxin story is tied to the U.S. and Canada.
We’re excited to share our revamped website that focuses on spotlighting our commitment to breaking new ground in #GeneTherapy, #InfectiousDisease, and our work to deliver novel treatment options for people living with disease. Explore the new https://t.co/02jfI1nqGh pic.twitter.com/mGK89BhANA
— Ocugen (@Ocugen) March 17, 2022
That said, Ocugen is more than a partner on a Covid-19 vaccine. The company’s portfolio of ophthalmology, gene therapy and other infectious disease treatments is noteworthy. Accordingly, the company appears to be wanting to shift investor focus to these lines of business. Today, Ocugen announced via Twitter that it has revamped its website to align with the company’s vision of where it’s headed.
Overall, these catalysts appear to be bullish. However, in this uncertain market, perhaps investors may want to take a cautious approach to OCGN stock.
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.