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Ocugen (NASDAQ:OCGN) experienced a 10% upswing over the weekend following its milestone approval from the U.S. Food and Drug Administration (FDA) to proceed with a Phase 3 trial for its groundbreaking rare eye disease treatment.
Their gene therapy, OCU400, aims to combat retinitis pigmentosa (RP), a degenerative condition that leads to blindness by causing the gradual breakdown of the retinal tissue.
As of now, OCGN shares have surged by over 7%, hovering around $1.90 per share with a market cap of approximately $485 million, despite reporting zero revenue over the past three years.
OCGN’s Reincarnation as a Memestock
Amidst the chaos of the pandemic, Ocugen found itself in the limelight as a meme stock due to its Covid-19 vaccine aspirations. At its peak in 2021, OCGN stock reached a noteworthy $13 per share.
Now, the company is reclaiming its position in the market with two innovative drug candidates.
OCU410 is currently undergoing initial trials for patients afflicted with macular degeneration, while their RP-specific drug, OCU400, presents a ray of hope to approximately 2 million individuals globally affected by RP.
Established in 2013, Ocugen entered the public domain through a reverse merger back in 2019. Its earlier attempt to introduce the Indian Covid-19 vaccine, Covaxin, failed to take off in late 2020, leading to a shareholder lawsuit.
The company’s recent focus on eye-related therapies marks a return to its roots, with co-founder and CEO Shankar Musunuri steering the ship. Prior to founding Ocugen, Musunuri’s professional voyage included stints at Nuron Biotech and pharmaceutical giant Pfizer (NYSE:PFE).
In a business update released on April 2, Ocugen disclosed a cash balance of $39.5 million by the end of 2023. Additionally, the company announced the initiation of early stage trials for OCU410ST, a treatment targeting Stargardt disease.
The Road Ahead for OCGN
Embarking on Phase 3 trials is a costly and time-consuming expedition. Without securing additional funding, Ocugen may find it challenging to bring its therapeutic innovations to the market successfully.
On the publication date, Dana Blankenhorn revealed no direct or indirect investments in the securities discussed in this article. The sentiments expressed are solely those of the author and are subject to the InvestorPlace.com Publishing Guidelines.
