MALVERN, PA — Ocugen Inc. (NASDAQ: OCGN) extended its expected cash runway into 2028 with a $130 million convertible debt financing as the biotechnology company moves one retinal gene therapy into Phase 3 and approaches pivotal data from two other late-stage programs.
The Malvern-based company ended June with $100.4 million in cash, cash equivalents and restricted cash, up from $32.2 million at March 31. The financing generated about $112.5 million in net proceeds, including the full exercise of a $15 million over-allotment option.
Ocugen used about $32.7 million of the proceeds to retire its Avenue Capital loan, removing debt carrying a 12.25% interest rate. The new convertible senior notes carry a 6.75% rate and mature in 2034.
The strengthened balance sheet comes as Ocugen increases spending on clinical programs targeting geographic atrophy, retinitis pigmentosa and Stargardt disease. The company expects potentially consequential clinical results from two programs during the first half of 2027.
Operating expenses increased to $17.9 million in the second quarter from $15.2 million a year earlier. Research and development spending rose to $10.7 million from $8.4 million, while general and administrative expenses increased to $7.2 million from $6.8 million.
Ocugen reported a net loss of 7 cents per common share, compared with a loss of 5 cents per share in the second quarter of 2025. The company had 339 million common shares outstanding at June 30.
The most advanced new development involves OCU410, Ocugen’s experimental gene therapy for geographic atrophy secondary to dry age-related macular degeneration. The Food and Drug Administration cleared the company to begin its Phase 3 ArMaDa3 registrational trial, which Ocugen expects to start during the third quarter.
The planned global trial will enroll about 237 participants and is designed with 95% statistical power for its primary endpoint. Ocugen is targeting potential Biologics License Application and Marketing Authorization Application filings in 2028.
The Phase 3 program follows 12-month Phase 2 data that Ocugen reported showed a statistically significant 31% reduction in geographic atrophy lesion growth compared with control among patients within the specified lesion-size range at the dose selected for Phase 3.
The FDA also granted OCU410 Regenerative Medicine Advanced Therapy designation. The designation provides increased interaction with the agency during development and makes the program eligible for mechanisms including priority review and accelerated approval if applicable regulatory requirements are met.
Ocugen estimates geographic atrophy affects approximately 2 million to 3 million people in the U.S. and Europe.
The company’s OCU400 program for retinitis pigmentosa is approaching another major regulatory milestone. Ocugen completed enrollment of 140 patients across more than 30 genetic mutations in its liMeliGhT registrational trial and expects topline results in the first quarter of 2027.
The company is preparing for a potential rolling BLA submission following those results and has completed Process Performance Qualification batches supporting its manufacturing preparations and potential commercial supply.
Ocugen also signed a binding term sheet with Roots Pharmaceutical and its strategic partner, Al-Dhow International Holding, to negotiate an exclusive license for OCU400 across the Middle East and North Africa.
The proposed agreement calls for a moderate upfront payment, as much as $255 million in sales-based milestone payments and a 22% royalty on net sales, according to Ocugen. The companies have not yet completed a definitive licensing agreement.
OCU410ST, Ocugen’s program for Stargardt disease, is also approaching pivotal data. The company completed enrollment and dosing of 63 patients in its Phase 2/3 GARDian3 trial and expects topline results in the second quarter of 2027, followed by a planned BLA submission in mid-2027.
Stargardt disease affects about 100,000 patients across the U.S. and Europe and currently has no approved therapies, according to the company. OCU410ST has received FDA Orphan Drug and Rare Pediatric Disease designations, along with European regulatory designations.
Ocugen’s three late-stage programs use its modifier gene therapy platform, which is designed to target regulatory genes affecting multiple biological pathways rather than correcting individual disease-causing mutations.
“As we advance toward key data milestones in the first half of 2027, we remain focused on creating long-term value for our patients and shareholders,” Chairman and Chief Executive Officer Shankar Musunuri stated.
Ocugen also expanded its management team during the quarter, naming Mohamed Genead chief medical officer in June and Chris Clark vice president of corporate communications in July.
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