Ocugen (NASDAQ:OCGN) Posts Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Ocugen missed earnings expectations: The company reported a quarterly loss of $0.07 per share versus the $0.05 consensus estimate, while revenue of $1.49 million exceeded expectations. Operating expenses and net loss increased from a year earlier.
• Clinical pipeline milestones remain central: The FDA cleared OCU410 to begin its Phase III ARMADA-3 trial, expected to start by September 2026, while enrollment is complete in the Phase III OCU400 trial with top-line data anticipated in early 2027.
• Financing extended the runway but may create dilution risk: Ocugen raised $130 million through convertible notes and reported $100.4 million in cash and restricted cash, which management says supports operations into 2028. However, the company is evaluating additional financing and other measures that could dilute shareholders.

Ocugen (NASDAQ:OCGN - Get Free Report) issued its earnings results on Thursday. The company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.02), FiscalAI reports. The firm had revenue of $1.49 million for the quarter, compared to analyst estimates of $0.89 million.

Here are the key takeaways from Ocugen's conference call:

• OCU410 received FDA clearance to begin its Phase III ARMADA-3 trial in geographic atrophy, along with RMAT designation. The approximately 237-patient global study is expected to start by September 2026, supported by Phase II data showing a 31% reduction in lesion growth at the optimal dose.
• Ocugen expects several major clinical catalysts, including an interim decision for OCU410ST in Stargardt disease in the third quarter of 2026 and top-line data for OCU400 and OCU410ST in the first half of 2027. Management continues to target three BLA submissions by 2028.
• Enrollment is complete in the 140-patient Phase III liMeliGhT trial for OCU400 in broad retinitis pigmentosa, with top-line data expected in the first quarter of 2027. The company also completed manufacturing qualification batches intended to support potential BLA filings and commercial supply.
• Ocugen closed a $130 million convertible notes financing, reporting $100.4 million in cash, cash equivalents, and restricted cash at June 30, which management says extends its runway into 2028. It also signed a binding term sheet granting Roots Pharmaceutical and Al-Dhow International exclusive OCU400 rights in the Middle East and North Africa.
• Operating expenses increased to $17.9 million in the quarter from $15.2 million a year earlier, while quarterly net loss widened to $0.07 per share from $0.05. Management is evaluating additional financing, warrant exercises, business-development transactions, and a potential share authorization increase, creating possible future dilution.

Ocugen Stock Down 3.1%

NASDAQ:OCGN traded down $0.04 during mid-day trading on Thursday, hitting $1.24. 5,555,461 shares of the company's stock traded hands, compared to its average volume of 4,795,637. The company has a fifty day moving average of $1.34 and a 200 day moving average of $1.57. The company has a debt-to-equity ratio of 4.17, a quick ratio of 1.86 and a current ratio of 1.86. Ocugen has a twelve month low of $0.94 and a twelve month high of $2.73. The company has a market capitalization of $420.50 million, a P/E ratio of -5.17 and a beta of 2.21.

Insiders Place Their Bets

In other Ocugen news, CFO Treerita Essali Johnson-Greene purchased 21,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were acquired at an average price of $1.23 per share, for a total transaction of $25,830.00. Following the completion of the purchase, the chief financial officer owned 521,000 shares of the company's stock, valued at approximately $640,830. The trade was a 4.20% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 3.95% of the company's stock.

Institutional Trading of Ocugen

Several large investors have recently bought and sold shares of OCGN. Vanguard Group Inc. raised its holdings in shares of Ocugen by 3.1% in the third quarter. Vanguard Group Inc. now owns 15,223,585 shares of the company's stock worth $24,814,000 after buying an additional 450,904 shares during the last quarter. Millennium Management LLC raised its stake in Ocugen by 29.7% in the 4th quarter. Millennium Management LLC now owns 5,396,417 shares of the company's stock worth $7,285,000 after acquiring an additional 1,234,268 shares during the last quarter. State Street Corp lifted its position in Ocugen by 193.6% during the 4th quarter. State Street Corp now owns 3,978,738 shares of the company's stock worth $5,371,000 after acquiring an additional 2,623,361 shares during the period. Geode Capital Management LLC grew its stake in Ocugen by 3.9% during the 4th quarter. Geode Capital Management LLC now owns 3,819,242 shares of the company's stock valued at $5,159,000 after purchasing an additional 142,050 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in shares of Ocugen in the fourth quarter valued at about $3,417,000. Hedge funds and other institutional investors own 10.27% of the company's stock.

Wall Street Analysts Forecast Growth

OCGN has been the subject of several research reports. Weiss Ratings cut shares of Ocugen from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, June 23rd. Wall Street Zen raised Ocugen from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Finally, Canaccord Genuity Group reduced their price target on Ocugen from $12.00 to $11.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $9.50.

About Ocugen

Ocugen Inc is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing gene therapies to treat rare inherited retinal diseases, as well as vaccines designed to address unmet needs in infectious diseases. Headquartered in Malvern, Pennsylvania, the company applies its proprietary gene therapy platform to create novel treatments aimed at preserving and restoring vision, while leveraging strategic partnerships to broaden its vaccine pipeline.

In its gene therapy portfolio, Ocugen is advancing multiple programs targeting retinal disorders.

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