Just a few days ago, Ocugen(NASDAQ:OCGN) was flying high with shares up more than 460% year to date. Investors were hopeful that the small drugmaker would be able to win U.S. Emergency Use Authorization (EUA) for Covaxin, the COVID-19 vaccine developed by Ocugen's partner, Bharat Biotech.

On June 10, though, Ocugen announced that the U.S. Food and Drug Administration (FDA) had effectively shut the door on an EUA filing. The company stated that it will pursue a path to file for full FDA approval of Covaxin. The worst news was that another late-stage clinical study will likely be required to support the regulatory filing.

The biotech stock promptly crashed by more than 30%. What should investors do now? Here are three prudent steps to take.

Investors should definitely reevaluate Ocugen's prospects in light of the company's bad news announced last week. Some were undoubtedly anticipating a relatively quick EUA win for Covaxin followed by strong U.S. sales for the COVID-19 vaccine. That's not going to happen now.

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