What happened
Clearly going for the Yo-Yo Stock of the Day title, Ocugen (NASDAQ: OCGN) fell by as much as 7% in early trading Monday before bouncing back to close almost 4.6% higher. The rollercoaster was put in motion by some dispiriting news about the coronavirus vaccine the company has licensed.
So what
On Saturday, the World Health Organization (WHO) announced that it has suspended the supply of Covaxin through United Nations procurement agencies. In doing so, it recommended without elaboration that countries currently using the vaccine "take action as appropriate."
Image source: Getty Images.
The WHO's announcement is based on an inspection it made in mid-March on the manufacturing process of the vaccine. During this proceeding, it identified a "need to conduct process and facility upgrade[s] to address recently identified deficiencies in good manufacturing practices (GMP)."
The organization added that the shot's developer, India-based Bharat Biotech, has pledged to rectify the situation. However, the suspension will result in an interruption in supplies of the vaccine.
While Ocugen is not the manufacturer of Covaxin, it does hold the exclusive North American commercial rights for the jab with a license from the Indian company.
Now what
So it's little wonder that Ocugen stock took a hit in early Monday trading. The later price upswing might have had something to do with the biotech company's most recent proprietary news item, which was inarguably positive.
Last Friday, Ocugen announced it had dosed its first patient in a phase 1/2 clinical trial of its OCU400 pipeline drug. The study aims to gauge the efficacy of OCU400 in treating retinitis pigmentosa, a rare eye disease. On reflection, investors likely considered this to be a more impactful development for the company than the regulatory hiccup with Covaxin.
10 stocks we like better than Ocugen, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Ocugen, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 3, 2022
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
