Oculus Innovative Sciences (OCLS) Gets FDA Nod

Oculus Innovative Sciences, Inc. (OCLS) climbed 33 percent to $2.44 after rising to $2.65 earlier, the highest intra-day price since March 10, 2010. The commercial healthcare company said Tuesday morning its compound to treat a kind of skin inflammation was approved for marketing by the U.S. Food and Drug Administration.

“Our newly approved dermatology indication opens two interesting new markets to Oculusatopic dermatitis, which afflicts 15 million U.S. patients, and radiation dermatitis, with over one million U.S. patients…” said Hoji Alimi, founder and CEO of Oculus. “And in line with our business strategy, we plan to partner this new indication at the earliest for faster commercialization.”

Shares of OCLS are up on heavy volume after breaking through the $2.20 level. The day’s trading range for the equity, which remains at depressed levels – having fallen 5.64% year-to-date, has been between $2.20 and $2.65 per share.

Technically speaking ; more than 2.3 million Oculus shares have already traded hands compared to a daily average of just 84,000 shares. The security is still acting healthy on an intra-day basis and continues to see a squeezing behavior as it holds the $2.40 area. However, it’s hard to say with certainty that all of the action following today’s 4 month-breakout is entirely consolidative in nature. At the same time, since there is no resistance in this vicinity, an argument could be made that the stock may be on its way higher over the near-term if the bulls or higher timeframe players take today’s gains and extend the move. On the other hand, if today’s spike suggest bottom, do not expect a fast rally out of here but rather a small and consistent appreciation toward the $3.00 level.

Over the past 12 months Oculus Innovative Science shares have traded between $2.20 and a 52-week high of $2.69. OCLS shares currently trade with a negative t/12 EPS of 0.27.

The median Wall Street price target on the stock is $4.50 with a high target of $4.75.

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About Ron Haruni 1070 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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