3 Biotech Penny Stocks to Watch This Month
As we head toward the middle of January, there are plenty of penny stocks that are showing potential. This week got off to an interesting start, with most blue-chip stocks trading lower. However, as the day progressed we watched many stocks move higher. In the stock market today, there are quite a few uncertainties. First, the pandemic continues to be a major theme that has a large impact on trading. Second, Joe Biden’s presidency will begin on January 20th, which in itself has several implications.
Despite these factors, we are seeing biotech stocks hover near all-time highs. Take a look at one of the benchmark ETFs for the sector. The Nasdaq Biotech ETF (NASDAQ: IBB) came within less than 50 cents of retesting all-time highs this week. On Friday, the ETF hit a high of $159.61 to make a new milestone high. It appears as though investors are confident about the economy as vaccines continue to be distributed.
While the latter half of 2020 was a great period for most stocks, 2021 could hold even more potential. If vaccines continue to be distributed in a fast manner, the economy could recover and hopefully, that will be back to pre-pandemic levels. At the center of it all, healthcare and biopharma remain a clear focus for traders. In light of this, here are five biotech penny stocks to watch as January rolls on.
Biotech Penny Stocks to Watch:
- Biolase Inc. (NASDAQ: BIOL)
- T2 Biosystems Inc. (NASDAQ: TTOO)
- BioLineRX Ltd. (NASDAQ: BLRX)
Biolase Inc.
One of the biotech penny stocks seeing heightened popularity is Biolase Inc. The company produces lasers that are used by the dental industry. On Monday, January 11th, shares of BIOL stock were up around 11% by midday. The main reason that BIOL stock is seeing this upward momentum is the resumption of dental procedures.
Biolase states that these procedures have returned to 80% of their pre-COVID levels. This is important because Biolase sells lasers for almost every category of dental procedure in the market. This includes its Waterlase systems for use in cutting tissue and for cosmetic procedures. Biolase also has its Epic Hygiene Laser, which is in use for enhancing clinical procedures.
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With 261 patented technologies and 52 patent-pending products, Biolase looks like it is continuously innovating. This is a great way to stay competitive in an area where competition could be on the rise. To date, Biolase has sold more than 41,000 laser systems in over 80 countries around the world.
This week Biolase states it will be presenting at the H.C. Wainwright Bioconnect 2021 Investor Conference. In the conference, the company will discuss recent progress and achievements as well as what it plans to do moving forward. This event is something that investors may want to pay attention to, as it could show the direction that Biolase will be taking.
T2 Biosystems Inc.
T2 Biosystems Inc. is another early mover on Monday. By midday, shares of TTOO stock were up by around 8% to $1.56 per share. The company is a developer of diagnostic products that are in use throughout the medical industry. This includes the T2 Magnetic Resonance technology that allows it to detect various biomarkers in the body. Additionally, the company is developing the TSARS-CoV-2 Panel, which is a molecular test for COVID. The latter is one of the main reasons that T2 Biosystems is seeing heightened interest from investors in my opinion. As cases continue to rise around the world, the demand for accurate testing is also on the rise. At the end of 2020, the company received Emergency Use Authorization or EUA for its covid-19 diagnostic panel.
This panel can provide results within two hours and is done via a nasal swab. While there are quite a few companies producing similar tests, T2 Biosystems is one of the leaders in the industry. Because demand is so high right now, it appears as though there is a very large market opportunity. On Thursday, January 7th, the company announced the appointment of Aparna Ahuja, MD to be its new chief medical officer. Dr. Ahumja brings a great deal of experience in both general medicine and the biotech industry.
John Sperzel, CEO of T2 Biosystems states that “I am confident that Aparna’s extensive professional experience and passion for improving patient care through diagnostic testing will help to increase awareness and foster adoption of our technology.”
Something to note on Monday is a recent Tweet from T2. The company posted, “We are excited to announce that we have partnered with Werfen as our new distributor in the United Kingdom!” This has become a point of interest for traders this week and helped spark a continuation move in the stock.
BioLineRX Ltd.
Another sizable gainer of the day on Monday, was BioLineRX Ltd. By midday, shares had risen as high as $3.01. In the past six months, the BLRX stock price has jumped by over 65%. BioLineRX focuses on developing and researching pharmaceutical drugs for use in oncology. The company utilizes the in-licensing of new drug compounds where it then develops them through the various clinical stages. BioLine also partners with other pharmaceutical companies for the commercialization of its products. Currently, BioLineRX has several compounds that are in its pipeline. This includes Motixafortide, which is in a Phase 2a study with Keytruda to see its potential in treating pancreatic cancer.
Additionally, the company is studying its AGI-134 compound as an immunotherapy candidate for treating solid tumors. The company is also advancing other treatments. In December, BioLineRX announced final results from a Phase 2a study of its BL-8040. This wasn’t a study alone but in combination with KEYTRUDA® and chemotherapy in patients with second-line stage IV pancreatic ductal adenocarcinoma. The results of the study showed substantial improvement as compared to historical results across all study endpoints. The stock ended up popping to highs of $3.72 then consolidated during the weeks to follow. Now, at the start of January, BLRX has begun climbing again.
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As it appears, BioLineRX is a very broad biopharmaceutical company. Because it licenses drugs and then puts them through its pipeline, its focus tends to be more on the business side of the pharma industry rather than pure research & something to keep in mind.
Biotech Penny Stocks Remain A Focus For Traders
We’ve discussed biotech stocks plenty of times previously. One of the obvious drivers early last year was vaccine companies. However, I feel like that opened the door for new traders to become familiar with the industry in general. It also exposed those new traders to the type of trading that goes on with biotech penny stocks specifically. High volatility and high speculation continue pushing these stocks in both directions. However, with new strength in the market, biotech, among other industries, could be one to focus on for January.
