How much could the biotech company Ocugen Inc grow?

Biotech company Ocugen Inc. (OCGN) is undervalued, analysts at Mizuho Securities believe. Its market opportunities go beyond the production of the COVID-19 vaccine. Currently, according to Mizuho, Ocugen is evaluated solely on the commercial prospects of its COVID-19 vaccine, which is already approved for use for adults in Mexico and is under consideration by regulatory authorities in Canada. However, Ocugen has a promising development in its portfolio that can bring hundreds of millions of dollars in sales. 

We are talking about a candidate for the treatment of OCU400 eye diseases. This candidate is a modifier of gene therapy, which at treating the early and middle stages of the development of retinitis pigmentosa. This hereditary condition leads to vision impairment and later to blindness. The symptoms of the disease appear at different ages, but the earlier treatment, the less severe the consequences will be. If the OCU400 candidate successfully passes all stages of testing and receives approval from the regulator, it will be able to bring Ocugen several hundred million dollars in sales. 

If we can apply to regulators in two to three years, research and testing will go according to plan. Mizuho analysts believe that OCU400 is capable of becoming the most successful Ocugen drug. Therefore, this week, the company’s specialists increased the target price for OCGN shares to $ 5, which is almost twice the current price and also set a recommendation to “buy” shares. 

According to analysts, the market is currently missing a vital value proposition from Ocugen. It is necessary to consider the risks since even promising candidates at the early stages of development sometimes do not achieve the required results at later stages. Therefore, investments in Ocugen are still risky, although the company already has a commercial product — the Covaxin vaccine against COVID-19.