Shares of Ocugen Inc shot up by 15.6% in pre-market trading on Monday as the company announced the sale of 10 million shares to institutional investors focused on healthcare at a purchase price of $10 per share in a registered direct offering.
Ocugen (OCGN), a gene therapy company that aims to cure blindness, is set to close the direct offering on April 27 and it expects gross proceeds of $100 million from this offering. The company intends to use the net proceeds for working capital needs, general corporate purposes and capex.
Meanwhile, last week, OCGN’s COVID-19 vaccine co-development partner, Bharat Biotech, announced positive results for the second interim analysis of the currently ongoing Phase 3 study of Covaxin. The data indicated 100% efficacy against severe COVID-19 disease and a 78% vaccine efficacy in mild to moderate disease. (See Ocugen stock analysis on TipRanks)
At that time, OCGN had indicated that it intends to bring Covaxin to the US market.
On April 21, Roth Capital analyst Zegbeh Jallah reiterated a Buy and a price target of $10 on the stock. Jallah argues these positive efficacy results for Covaxin could result in OCGN filing an emergency use authorization (EUA) application for the vaccine in the US and if approved, it could be a “significant” opportunity for OCGN to generate revenues.
Overall, the consensus on the Street is that OCGN is a Strong Buy, based on 3 Buys and 1 Hold. The average analyst price target of $12.50 implies that the stock has an upside potential of 29.8% to current levels.
According to the TipRanks Smart Score system, OCGN scores a “Perfect 10”, indicating that the stock is likely to outperform the market.
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