Why is biotechnology firm Ocugen (OCGN) down in pre-market trading?

3 min read | March 04, 2022 07:27 AM PST | By Rupam Roy

Image source: © Timonschneider | Megapixl.com

Why is it declining?

The Malvern, Pennsylvania-based biopharmaceutical firm, Ocugen said that the US Food and Drug Administration (FDA) has declined to issue a Emergency Use Authorization (EUA) for COVAXIN for people aged 2 to 18 years.

The investors were disappointed with the company's gloomy update, evident by the sharp decline in its stock prices.

The company has gained attention due to its Covid-19 vaccine development.

However, the company said that it aims to continue its work with the US Food and Drug Administration for evaluating the regulatory pathway for the pediatric utilization of Covaxin.

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Stock performance and financial highlights of Ocugen:

The OCGN stock was priced at US$2.44 at 9:29 am ET on March 4, down by 25.85% from its previous close of US$3.29. Its stock value tumbled 63.32% over the past 12 months.

Ocugen has a market capitalization of US$708.57 million, with a forward P/E one-year of 47.00, and EPS of US$-0.29. Its stock saw the highest price of US$17.65 and the lowest price of US$2.87 in the last 52 weeks.

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The company has reported a net and comprehensive loss of US$14.58 million, or US$0.07 per share, in Q4, FY21 as compared to US$3.79 million, or US$0.02 per share, in the year-ago quarter.

For fiscal 2021, the company's net and comprehensive loss were US$58.36 million, or US$0.30 per share.

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Bottom Line:

The company has grabbed attention after it announced to develop a Covid drug last year.

However, its decline in market value from US$3 billion last year to US$708 million now indicates a large sell-off in the stocks. But it is expected to bounce back strong if it provides positive reports for Covaxin. Ocugen has developed Covaxin in collaboration with India’s Bharat Biotech.

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Meanwhile, the overall market has witnessed a decline this year due to various macroeconomic factors and ongoing Russia-Ukraine tensions.

The S&P 500 healthcare sector gained 17.49% in the last 12 months while declining 6.62% YTD.

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