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.
Source Fool.com