FDA grants Ocugen’s OCU410ST rare pediatric disease status

Published 27/05/2025, 12:14
FDA grants Ocugen’s OCU410ST rare pediatric disease status

MALVERN, Pa. - Ocugen, Inc. (NASDAQ: OCGN), a biotechnology company specializing in gene therapies for eye diseases and currently valued at $271.82 million, announced today that the U.S. Food and Drug Administration (FDA) has awarded Rare Pediatric Disease Designation (RPDD) to its gene therapy product OCU410ST. According to InvestingPro analysis, the company maintains a healthy liquidity position with a current ratio of 2.6, though it faces significant cash burn challenges. This therapy is aimed at treating ABCA4-associated retinopathies, including Stargardt disease, retinitis pigmentosa 19, and cone-rod dystrophy 3.

The RPDD is granted to drugs that treat serious and life-threatening diseases affecting children under 18 and fewer than 200,000 individuals in the U.S. Stargardt disease, the most common form of inherited macular degeneration, affects approximately 100,000 people across the U.S. and Europe. The disease usually develops in childhood or adolescence, leading to progressive vision loss.

OCU410ST has also received Orphan Drug designations from the FDA and the European Medicines Agency for these conditions. Dr. Shankar Musunuri, Chairman, CEO, and Co-founder of Ocugen, emphasized the importance of this designation, noting the lack of FDA-approved treatments for Stargardt patients and the impact of the disease on families. InvestingPro data reveals that despite recent developments, the company reported a significant net loss of $57.51 million in the last twelve months, highlighting the capital-intensive nature of biotech research and development.

With the RPDD, Ocugen may become eligible for a Priority Review Voucher (PRV) if the PRV program is reauthorized by Congress. PRVs can expedite the review process for other products or be sold, often for around $100 million.

OCU410ST utilizes an AAV delivery platform to administer the RORA gene, a Nuclear Hormone Receptor that regulates pathways associated with Stargardt disease. Ocugen plans to begin the Phase 2/3 pivotal confirmatory trial in the coming weeks and aims for a Biologics License Application filing in 2027.

This news is based on a press release statement from Ocugen, Inc. and has not been independently verified. The forward-looking statements in the press release are subject to risks and uncertainties, including the possibility that clinical trial results may vary and regulatory assessments may differ. Trading at $0.93, the stock has shown significant volatility, with InvestingPro reporting a strong 15% return over the past week. Investors seeking deeper insights can access comprehensive analysis and 15 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including Ocugen.

In other recent news, Ocugen, Inc. reported its first-quarter 2025 financial results, showing a net loss of $15.3 million or $0.05 per share, which was slightly better than the forecasted loss of $0.06 per share. The company also reported revenue of $1.48 million, though no forecast was available for comparison. Ocugen is advancing its gene therapy programs, with significant milestones expected in the coming years. The company is progressing with its Phase 3 liMeliGhT study for OCU400, a gene therapy for retinitis pigmentosa, and plans to submit a Biologics License Application by 2026. In analyst updates, H.C. Wainwright adjusted its price target for Ocugen to $7.00 from $8.00 while maintaining a Buy rating, citing the potential of OCU400’s gene-agnostic approach. Ocugen’s cash and restricted cash totaled $38.1 million as of March 31, 2025, down from $58.8 million at the end of 2024, which the company expects to sustain its operations into the first quarter of 2026. The company is also making strides in manufacturing processes to support future product launches. These developments reflect Ocugen’s strategic focus on addressing unmet medical needs in the biotechnology sector.

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