Ocugen upgraded at Chardan citing attractive entry point ahead of catalysts

Ocugen (NASDAQ:OCGN) shares extended gains in the pre-market Wednesday after Chardan Capital Markets upgraded the COVID vaccine developer to Buy from Neutral, arguing that the company's recent selloff gives an attractive entry point ahead of multiple catalysts.

After a rapid rise in 2021 amid investor interest in its experimental COVID vaccine, Ocugen (OCGN) has lost ~72% over the past 12 months, as indicated in this graph.

"…with fundamentally strong science behind the company's programs and a number of important catalysts over the next 12 months and beyond, we believe current valuation represents an attractive entry point," Chardan wrote.

The firm specifically points to the company's ophthalmic gene therapy OCU400 in Leber congenital amaurosis (LCA) and retinitis pigmentosa. A Phase 1/2 trial for the candidate is on track for an initial data readout in mid-2023 ahead of Phase 3 initiation before year-end.

Chardan also cites a potential Phase 1 initiation for OCU200 in diabetic macular edema after the company said it submitted a clinical trial application for the study in February.

Read: Seeking Alpha contributor Harrier Capital issued a Strong Sell rating on Ocugen (OCGN) in January, arguing that the company will have to run a long and expensive additional study to win FDA approval for its COVID shot.