Why is Ocugen (OCGN) stock soaring? Here's what you must know

Stocks of Ocugen, Inc. (NASDAQ:OCGN) surged 22.3 per cent on Tuesday, February 22, as investors responded positively to a significant development announced by the company on Friday, February 18.

As markets remained closed on Monday due to President's Day celebrations, the surge in the share prices came at the start of the trading session.

On Friday, the Food and Drug Administration (FDA) lifted the clinical hold on Ocugen's Investigational New Drug (IND) application.

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The application was filed to evaluate the COVID-19 vaccine candidate called BBV152. Notably, the BBV152 vaccine is called COVAXIN™ outside of the United States.

In November last year, the FDA had placed a clinical hold on the IND application, which restricted Ocugen from starting its planned phase 3 study of the vaccine candidate.

What's next for Ocugen (NASDAQ:OCGN)

Dr Shankar Musunuri, chief executive officer and co-founder of Ocugen, said that the company can now move COVAXIN™'s clinical program forward.

Bharat Biotech developed COVAXIN™ through collaboration with the Indian Council of Medical Research (ICMR) – National Institute of Virology (NIV).

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Outside of the United States, more than 200 million doses of COVAXIN™ have been administered and 20 countries have authorized the vaccine for emergency use.

Ocugen is expected to continue the phase 3 study for securing Emergency Use Authorization (EUA) of the vaccine in the United States. Notably, the World Health Organization (WHO) also added COVAXIN™ in the list of vaccines for emergency use.

Bottom line

On February 22, Ocugen announced the pricing of a public offering. The company is set to offer 15,973,420 million shares of common stock for around US$ 53.5 million.

The underwritten public offering is expected to close on February 25, and the underwriter would have an option of purchasing 2.4 million additional shares within 30 days.

As per the company statement, Cantor Fitzgerald & Co. was given the underwriting responsibility for the proposed offering.

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Ocugen is offering the common stock pursuant to a registration statement filed the Securities and Exchange Commission. The company had previously filed Form S-3ASR on March 22 last year.