Why Ocugen Stock Rocketed 200% Today
Shares of Ocugen (NASDAQ: OCGN) tripled on Monday after the biopharmaceutical company said it conducted a stock offering at a substantial premium to its closing price on Friday.
Ocugen announced on Tuesday that it struck a deal with India-based vaccine developer Bharat Biotech to potentially bring Covaxin, a COVID-19 vaccine candidate, to the U.S. Following the announcement, investors were bracing for dilution. Clinical trials can be expensive, and Ocugen ended the third quarter with only $19.3 million in cash reserves. So, it was only a matter of time before the biotech would need to sell stock to obtain the cash it needed to fund Covaxin's development in the U.S.
Ocugen's stock price soared on Monday. Image source: Getty Images.
Source Fool.com
