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MALVERN, Pa. – Ocugen, Inc. (NASDAQ: OCGN), a biotechnology company specializing in gene therapies for blindness diseases, announced today that it has signed a term sheet to negotiate a licensing agreement for exclusive rights in Korea for its gene therapy product OCU400. The agreement with an unnamed leading healthcare company in Korea includes upfront fees and development milestones totaling up to $11 million. The deal comes as Ocugen, currently valued at $259 million, seeks to strengthen its position despite challenging market conditions. According to InvestingPro analysis, the company faces significant cash burn rates while maintaining a healthy current ratio of 2.6.
Under the proposed terms, Ocugen will receive sales milestones of $1 million for every $15 million of net sales in Korea, along with royalties amounting to 25% of net sales. The company will also be responsible for manufacturing OCU400 for commercial supply. This revenue structure could provide important growth opportunities for Ocugen, which reported $4.52 million in revenue over the last twelve months. InvestingPro data reveals 13 additional key insights about Ocugen’s financial health and market position, available to subscribers.
OCU400 is designed to treat retinitis pigmentosa (RP), a group of genetic disorders that result in vision loss. Approximately 15,000 individuals in Korea are affected by RP. Ocugen’s CEO Dr. Shankar Musunuri expressed that the partnership aims to leverage the Korean company’s network to address the needs of RP patients in the region and aligns with Ocugen’s strategy to preserve rights to larger geographies for maximizing patient reach and shareholder return.
The definitive licensing agreement is expected to be finalized within 60 days. Ocugen is currently advancing OCU400 through Phase 3 clinical development with a target Biologics License Application filing by mid-2026. The stock, which has shown high volatility with a beta of 4.24, has demonstrated strong momentum recently. Detailed analysis of Ocugen’s development pipeline and market potential is available in the comprehensive Pro Research Report, one of 1,400+ deep-dive reports available exclusively on InvestingPro.
This press release contains forward-looking statements that involve risks and uncertainties, including the execution of a definitive agreement and the anticipated benefits of the licensing agreement. These statements are based on current expectations and are subject to changes based on various factors.
Ocugen’s focus is on developing and commercializing novel gene therapies for major blindness diseases globally. The company’s modifier gene therapy platform aims to address unmet medical needs for large patient populations with a gene-agnostic approach.
The information for this article is based on a press release statement from Ocugen, Inc.
In other recent news, Ocugen, Inc. reported its first-quarter 2025 earnings, revealing 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 recorded revenue of $1.48 million, although no forecast was available for comparison. Ocugen is advancing its gene therapy programs, with significant milestones expected in the coming years. The U.S. Food and Drug Administration granted Rare Pediatric Disease Designation to Ocugen’s OCU410ST for treating ABCA4-associated retinopathies, potentially qualifying the company for a Priority Review Voucher. Additionally, Ocugen plans to initiate a Phase 2/3 pivotal confirmatory trial for OCU410ST soon, with a Biologics License Application filing targeted for 2027. Meanwhile, H.C. Wainwright adjusted its price target for Ocugen’s stock to $7.00 from $8.00, maintaining a Buy rating. The firm emphasized the potential of Ocugen’s OCU400 therapy, which is progressing in a Phase 3 study for retinitis pigmentosa. These developments highlight Ocugen’s strategic focus on advancing its gene therapy pipeline.
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