The stock market continued to advance strongly on Monday morning, sending the Nasdaq Composite (NASDAQ INDEX: ^ IXIC) to new records. As of 11:00 am EST, the Nasdaq was up about 0.7%, approaching the 14,000 mark. You’re here (NASDAQ: TSLA) and NVIDIA (NASDAQ: NVDA) featured with big payouts to start the week.
Still, there have been much larger moves in a few Nasdaq stocks that have only recently made their way into the limelight. Or Ocugen (NASDAQ: OCGN) or Cassava science (NASDAQ: SAVA) is a household name among most investors, but both biotechnology stocks have been on fire lately and continued to rise on Monday morning. Here’s what’s going to keep their momentum going.
Ocugen gets money
Ocugen shares more than doubled Monday morning. The clinical-stage biotechnology share price is now more than six times what it reached just a week ago in early February.
What pushed Ocugen higher on Monday was very unusual news. The company made a direct offer of common stock to raise capital, which is not uncommon for a company after its shares have surged so far. Yet what is astonishing is that he sold 3 million shares at a price of 46% higher only when the stock closed on Friday afternoon. Investors were prepared to pay $ 7.65 per share on a stock with the most recent closing price of $ 5.25, helping Ocugen raise $ 23 million.
Investors are increasingly excited about Ocugen’s strategic partnership with the Indian Bharat Biotech, in which Ocugen will work to commercialize Bharat’s Covaxin vaccine for COVID-19. If the vaccine can get emergency use clearance from the U.S. Food and Drug Administration, Ocugen is expected to get a 45% share of profits from U.S. sales of Covaxin.
The demand for coronavirus vaccines is high, and this gives Ocugen a huge chance to get a big paycheck. With Covaxin having obtained approval for use in India, investors are more optimistic than ever that the vaccine can replicate this success to serve the US market.
Cassava continues to grow
Elsewhere, Cassava Sciences’ shares were 36% higher. The biotech company is moving forward with its development plans for what could become a breakthrough in the treatment of Alzheimer’s disease.
Cassava reported on what he called “significant program progress” for his drug candidate simufilam for Alzheimer’s disease and detailed the milestones he hopes to achieve in 2021. Specifically, Cassava wants to start a clinical trial of phase 3 for candidate treatment in the second semester of this year. , expanding target recruitment to 150 patients and taking steps to expand its studies and provide interim analysis as results arrive.
Cassava has two purposes for separate studies. We will try to show that the treatment will slow the rate of cognitive decline and reduced daily function in patients. The other is actually improvement over a six month period.
Investors were very satisfied with Cassava data has already released from earlier stage studies of simufilam. With biotechnology’s ambitious plans for the future, those with loved ones battling Alzheimer’s disease hope cassava will give them a breakthrough to finally find an effective treatment for the disease.
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