Why Ocugen Stock Is Falling Today
Shares of Ocugen (NASDAQ: OCGN) were falling 7.8% as of 11:15 a.m. ET on Tuesday. The decline is a continuation of the sell-off that began last week after Ocugen announced the Food and Drug Administration (FDA) rejected Emergency Use Authorization (EUA) for the pediatric use of COVID-19 vaccine Covaxin.
This sustained downswing for Ocugen is understandable. The company's fortunes hinge largely on the prospects for Covaxin. Ocugen now has a much longer road ahead to be able to market the vaccine in the U.S. after the FDA slammed the door on an EUA pathway in immunizing kids.
However, there's a pretty good case to be made that Ocugen's valuation never should have risen as much as it did. The company had already hit a dead end last year with a potential EUA pathway in the U.S. for Covaxin in immunizing adults. The chances that the FDA would have a different perspective with the vaccine in pediatric use never appeared to be very high.
Source Fool.com
