Despite vaccination rates continuing to rise in many countries, new vaccines are continually being developed and approved to try and stay ahead of the ever-changing COVID-19 landscape. One of these vaccines, Covaxin, is currently made by clinical-stage biopharmaceutical firm Ocugen Inc. (NASDAQ: OCGN) in partnership with India-based Bharat Biotech.
Why Does This Matter to Investors?
Ocugen’s COVID-19 vaccine Covaxin was granted emergency use approval for children between the ages of two and 18 by the Indian government. This makes it among the first vaccines to be given such a wide-ranging emergency use approval in the world; especially in such a specific age group.
As a result, Ocugen stock rose 18.5% during Tuesday trading and has remained in the green pre-market on Wednesday. Currently trading at $9.11, investors will be keeping a keen eye on where the price goes from here. Resistance has been seen previously around the $10 price level so bullish investors will hope Ocugen can break this cycle and consolidate their new position.
Is Ocugen a Good Investment?
An emergency use classification is an extremely positive development for Ocugen, but continued growth in the uncertain vaccine market is never guaranteed. Commercial opportunities in high-value economies such as the United States could also be hard to come by due to the sheer number of already established vaccines. Companies such as Moderna Inc. and Novavax Inc. already have huge name recognition and commercial footholds in these areas, so it remains to be seen if Ocugen can break into such lucrative markets. If Ocugen can navigate these issues and gain some traction in these areas, they could potentially build a vastly profitable stream of revenue to help keep investors happy.
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Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.