Penny stocks are something out of a fairytale book for some investors. Others look to these small-cap stocks every day to find the next big breakout. Penny stocks can provide traders with large profits in relatively short time frames. In times where there’s penny stock news, the event can act as a catalyst.
Can it produce potentially sustainable gains? The jury is still out on that. But because of this, the best penny stocks to buy when it comes to volatility may be biotech penny stocks. One has already taken off today; but can it continue higher?
Biotech Penny Stock To Watch: BioPharmX Corporation (BPMX)
BioPharmX Corporation (BPMX Stock Report) is a biotech penny stock to watch. The company mainly focuses on dermatology. The company works on treatments to address chronic dermatologic diseases that have no cure or have ineffective treatments. BioPharmX currently has 4 drugs undergoing clinical trials with the one furthest along called BPX-01-Acne.
BioPharmX created HyantX to produce its treatments. HyantX is a delivery system that can stabilize and solubilize hydrophilic molecules in a gel environment. This allows their treatments to be less irritating and more tolerable by a patient’s skin.
So What Happened With This Biotech Penny Stock?
The company recently had extremely positive news that prompted a skyrocket in BPMX stock price. BioPharmX announced that its BPX-04-Rosacea treatment for papulopustular rosacea received positive results in its Phase 2b trial. The price action from the news pushed the biotech penny stock from $0.8855 to $1.58, or 78%. This movement is the biggest increase for BioPharmX in over 3 months.
“My patients were extremely pleased with their participation in this clinical trial…the most compelling takeaway from my experience was my patient’s satisfaction with BioPharmX’s elegant gel formulation and the lack of irritation that is so commonly experienced with many topical agents. I look forward to the advancement of this promising topical therapy.”Dr. Mark Amster, a board-certified dermatologist and investigator in the clinical trial