Shares of Ocugen (NASDAQ:OCGN) skyrocketed last week to $9.63, which is 67% higher than the $5.78 that it finished the previous week at. The speculative stock that often gets help from retail investors and Reddit forums generated a lot of bullishness after the company reported strong results from the second interim analysis of COVAXIN, a COVID-19 vaccine that it is developing with Bharat Biotech. It had a 78% efficacy against mild, moderate, and severe levels of the disease. And it was 100% effective in preventing severe COVID-19 disease.
Later in the week, the company also announced a $100-million offering at a price of $10 per share – higher than what the stock was trading at. In after-hours trading, Ocugen's stock ended up climbing even higher, to more than $11.
The COVID-19 pandemic has helped lift many stocks to new heights. Shares of Ocugen are up more than 2,700% in just one year. Even Moderna (NASDAQ:MRNA), which has a COVID-19 vaccine that the Food and Drug Administration issued an emergency use authorization for last year, is nowhere near that type of return but it too has done well, rising around 240% in 12 months.
The danger for Ocugen is whether there will be enough demand for yet another COVID-19 vaccine. The company has generated minimal revenue over the past 12 months and if COVAXIN doesn't boost its numbers, the stock could be due for a significant correction. A year ago, Ocugen was trading at around $0.30 per share and there's little doubt that without this vaccine, it would be nowhere where it is right now.
