Malvern-based Ocugen saw its stock fall almost 20 percent after an announcement to use convertible notes to pay down existing debt and fund ongoing drug development, writes John George for the Philadelphia Business Journal.
The gene therapy company plans to raise $115 million through these notes, which is debt that be turned into stock. The notes will carry a 6.75 percent annual interest rate, with holders able to convert every $1,000 of debt into approximately 373 shares of common stock.
Of the proceeds, roughly $32.7 million will repay a loan from Avenue Capital Group upon the offering’s expected May 7 close. The rest of it will support research, development, and general operations.
Ocugen expects to hold about $112.1 million in cash following the repayment, extending its financial runway into 2028, according to CEO and co-founder Shankar Musunuri.
The company currently has no commercial products on the market, but has three primary gene therapy candidates for eye disorders. One drug candidate is currently in late-stage clinical testing and Ocugen hopes to seek FDA approval for it later this year.
Read more about Malvern’s Ocugen paying off debts as stocks when down, while staying hopeful for the future, at the Philadelphia Business Journal.
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Editor’s Note: This post was originally published on VISTA.Today in May 2026.
