Ocugen's Quarterly Loss Shrinks To $3.6 Million On A Derivative Gain, Not Core Results
A $16.6 million non-cash gain cut the net loss from $20.1 million, while first Phase 3 data for OCU400 are expected in early 2027.
Ocugen, which develops gene therapies for blinding eye diseases, cut its third-quarter net loss to $3.6 million from $20.1 million a year earlier, but the improvement came from a $16.6 million non-cash gain on a derivative liability, according to results released Wednesday. The loss from operations was $17.8 million, in line with last year's $17.6 million.
The gain behind the smaller loss
Operating expenses were $19.7 million, up from $19.4 million a year earlier. Research and development rose to $12.5 million from $11.1 million, while general and administrative costs fell to $7.2 million from $8.2 million.
Revenue from collaborative arrangements was $1.95 million, against $1.75 million in the year-earlier quarter. Interest expense was $3.1 million, up from $1.3 million.
Loss per share was $0.01, compared with $0.07 a year earlier, on 339.3 million shares outstanding at September 30. For the first nine months, the net loss was $47.7 million, against $50.1 million a year earlier.
Cash, notes and a deficit
Cash, cash equivalents, restricted cash and short-term investments totaled $84.6 million at September 30, which the company expects to fund operations into 2028. At the end of 2025 the figure was $18.9 million.
The balance sheet also carries $83.1 million of convertible notes and a $17.1 million derivative liability. Stockholders' equity was a deficit of $17.7 million.
Three late-stage programs and new licenses
Ocugen's lead candidate, OCU400 for retinitis pigmentosa, has enrolled 140 patients in its Phase 3 trial. Topline data are expected in the first quarter of 2027, followed by a planned Biologics License Application. CEO Shankar Musunuri said the company remains focused on "executing key clinical and regulatory milestones."
Ocugen signed a second regional OCU400 license, with Roots Pharmaceutical for the Middle East and North Africa, after Kwangdong Pharmaceutical in South Korea. It is eligible for up to $4 million in upfront and initial development payments, up to $255 million in sales milestones and a 22% royalty on net sales, and will make commercial supply.
In the Bahamas, OCU400 received provisional approval and priority designation, with final approval and patient enrollment possible as early as year-end. Dosing has begun in the 240-subject Phase 3 trial of OCU410 for geographic atrophy, an advanced form of dry age-related macular degeneration. Topline data for OCU410ST in Stargardt disease are expected in the second quarter of 2027.
The 140-patient OCU400 readout, expected in the first quarter of 2027, is the first of three Phase 3 results Ocugen is counting on.
Sources
- 8-K Filing — Ocugen, Inc. (OCGN) — SEC EDGAR
- Exhibit tm2628896d1_ex99-1.htm — Ocugen, Inc. 8-K exhibit — SEC EDGAR
- Exhibit tm2628896d1_ex99-2.htm — Ocugen, Inc. 8-K exhibit — SEC EDGAR
