The possibility of marketing the coronavirus vaccine Covaxin had been one of the major triggers behind the remarkable rally that was seen in the Ocugen (NASDAQ:OCGN) stock from back in December 2020 up until November 2021. However, things have fallen apart for the company throughout the past few months.
Trading Data
On Friday, OCGN stock fell 0.45% to $2.23 with more than 5.20 million shares, compared to its average volume of 9.65 million shares. The stock moved within a range of $2.0450 – 2.3294 after opening trade at $2.28.
Key Analysis
The company had struck a deal with Indian firm Bharat Biotech to market the vaccine in North America, however, it was always dependent on getting an Emergency Use Authorisation from the United States Food and Drug Administration. As it happens, the agency refused to grant the authorization even for pediatric use.
However, that was not the end of the company’s troubles. The FDA also put a clinical hold on Phase 2 and Phase 3 studies into the vaccine in the United States. The stock had been touted vigorously as one to watch out for and even some noted analysts had set high target prices. At this point, there are too many red flags in Ocugen and hence, it is difficult to see how the stock can make recovery any time soon. It may be a good idea for investors to consider avoiding the stock at this point.
Technical Data
OCGN stock is trading below the 20-Day and 50-Day Moving averages of $2.26 and $2.74 respectively. Moreover, the stock is trading below the 200-Day moving average of $5.41.
