Are These 3 Biotech Penny Stocks Worth Adding To Your List?
Biotech penny stocks are a constant source of excitement for investors of all types. In 2021, the pandemic has made investing in the biotech industry extremely popular. While this began as a focus on Covid-related companies, it quickly evolved into a larger market focus. With so many to choose from, it can be difficult to pick the best penny stocks for your biotech watchlist. But, there are a few tips to consider that could make it easier.
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How to Pick Biotech Penny Stocks to Buy
First and foremost is, what type of biotech company is it? Usually, there are two types of businesses within the biotech industry. On one hand, we have companies that are producing drugs and compounds for treating a range of illnesses. This includes treatments that are in the various stages of approval or those that have already been commercialized.
On the other hand, we have companies that produce a product such as a medical device, disease testing kits, and so on. Both of these types of businesses can have value, but investors should explore the different potential that each may offer.
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The next thing to consider is funding. With any industry, capital is always extremely important. However, with biotech companies, capital is the main driver of growth. This has to do with the large capital expenditures needed for medical trials, device design and production, and everything in between.
Because of this, we will usually see biotech companies engaging in large offerings as a way to raise money. This can be dilutive to share prices, however, most of the time it is a nonissue.
Lastly, no matter what the company is, investors should have a thorough understanding of what is in its pipeline. This pertains to both medical device companies and drug manufacturers. If a company has a lot of compounds in its pipeline, but no approved substances, it could be years away from churning revenue. However, if it does have a commercialized product, it could be worth taking a look at.
In addition to this, consider the market opportunity for the product, and the potential market size for its use. So, with all the bases covered, let’s take a look at three biotech penny stocks making big waves in 2021.
3 Biotech Penny Stocks to Watch In 2021
- Oragenics Inc. (NYSE: OGEN)
- BIOLASE Inc. (NASDAQ: BIOL)
- Asensus Surgical Inc. (NYSE: ASXC)
Oragenics Inc. (NYSE: OGEN)
The first biotech penny stock to consider is Oragenics Inc. in the past month, shares of OGEN stock have increased by around 6% and YTD by almost 30%. For some context, Oragenics is a producer of antibiotics products for various infectious diseases. The company’s lead product candidate is OG716, which is used for treating Clostridium difficile. It is also developing a Terra CoV-2 vaccine product providing immunity from respiratory syndrome coronavirus. With its relation to Covid, many investors were watching OGEN stock during the early days of the pandemic. And now, a year and a half later, it remains quite popular.
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On July 27th, Oragenics entered a licensing agreement with the National Research Council of Canada to pursue the rapid development of a next-generation COVID vaccine. The agreement will give Oragenics antigen expression cell line technology that can produce spike proteins in six to eight weeks of gene sequence definition. This includes the technology in use to engineer vaccine antigens against SARS-CoV-2 aka COVID-19.
“Entering into this licensing agreement as well as a separate material transfer agreement with the NRC are expected to have a profound, positive impact on our company’s strategic direction and we look forward to pursuing the development of next-generation vaccines against SARS-CoV-2.”
Executive Chairman of Oragenics, Frederick W. Telling
Since this announcement was made, the company has experienced a lot of momentum in the market. Considering this, will OGEN make your list of penny stocks to watch?
BIOLASE Inc. (NASDAQ: BIOL)
BIOLASE Inc. is both a popular biotech company on its own and a biotech penny stock that is frequently discussed across social media. Today, shares of BIOL stock shot up by a solid 30%, bringing its five-day gain to almost 40%. This company creates laser systems for use by dental doctors. These systems let dentists and other oral surgeons perform a wide variety of procedures. The company also sells teeth whitening gel kits, flexible fibers, and handpieces.
On August 12th, the company reported its second-quarter results for 2021. The company’s net revenue grew 211% to $9.1 million during this period. The company’s laser system sales went up by 424% as well.
“Our strong second-quarter performance is due to rising demand for our industry-leading dental lasers as a result of our intensified focus on education and training, the increased safety our lasers provide to dentists and their patients, and the published studies highlighting the improved results our laser provides to treat perio-disease.”
President and CEO of BIOLASE, John Beaver
After these notable second-quarter results, will BIOLASE make your penny stocks watchlist this month?
Asensus Surgical Inc. (NYSE: ASXC)
If you’re looking for another product-centered biotech penny stock, Asensus Surgical could be worth looking into. The company operates in a unique area of the biotechnology industry, producing groundbreaking products for doctors and surgeons alike.
For some context, Asensus Surgical is a biotech company that sells medical devices and surgical robotics. The company’s Senhance Surgical system allows for up to four arms to control robotic instruments and a camera for surgery. It also offers the SurgiBot System which is a robotically enhanced laparoscopic surgical system.
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On August 5th, the company reported its second-quarter results for 2021. In the first half of 2021, the company reported that its Senhance Surgical Systems performed over 1000 global procedures. This is the highest first-half performance that the technology has achieved ever. With any biotech company, the adoption of technology is one of the most important steps to success. While this is only a small number relative to what the future could hold, it is a big step in the right direction.
“During the quarter, we continued to drive strong adoption and utilization trends while making progress towards our strategic focus areas, including the expansion of clinical evidence, growth of our installed base, increased procedure volumes, the expansion of our portfolio and the continued technological development of Senhance.”
The CEO and President of Asensus Surgical, Anthony Fernando
Considering this information, is ASXC stock a contender for your watchlist?
Which Biotech Penny Stocks Are on Your Watchlist Right Now?
While finding the best biotech penny stocks to buy is not easy, it can be done with some careful research. Considering all the steps mentioned above, there is plenty of value to be had with biotech penny stocks right now.
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However, keep in mind that this industry in particular is subject to a sizable amount of volatility. This means that prices change quickly with little to no notice. So, with all of this in mind, which biotech penny stocks are on your watchlist right now?
