Ocugen Inc. (NASDAQ: OCGN) is climbing in the market this morning, trading on gains of more than 14% early on. The gains come after the company announced that it plans on moving forward with a share repurchase program. Here’s the scoop:
OCGN Stock Gains Big On Share Repurchase Program
Ocugen issued a press release early this morning. The company said that its Board of Directors have unanimously approved a share repurshase program. Ultimately, the program authorizes the repurchase of up to $2 million in value of its outstanding common stock.
In the release, OCGN said that it believes that there is a significant undervaluation in its share price. The company believes that the decision reflects its continued confidence in achieving its corporate goals and commitment to increasing shareholder value.
Ocugen plans on repurchasing shares through a broker in the open market. Of course, the amount, timing and price of purchases will be at the discretion of management and guidance of the Board.
In the release, OCGN reminded investors of its recent strategic partnership with CanSinoBIO. Under the partnership, the two will work to develop OCU400, an orphan drug designated gene therapy candidate.
Importantly, as a result of this partnership, CanSinoBIO will be responsible for all CMC development and manufacturing of clinical supplies. The company’s obligation also includes all associated costs.
Why Investors Are So Excited
At the end of the day, there are plenty of reasons to be excited here. Share repurchase programs tend to fuel investor excitement, and combining that with a recent partnership, well, there’s a lot to look forward to. Here’s why investors are reacting to Ocugen’s news in such a positive way.
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