It’s important to make a list of penny stocks to buy before you even come close to hitting the order button on your trading platform. It’s also important to know which sectors to pay attention to. Over the course of the past few decades, biotechnology, for example, has become one of the most important sectors for investors. That’s primarily due to the sort of progress happening during this period.
Due to the scope of growth in the biotech space, it’s worthwhile to take a look at some of the penny stocks that have the potential to generate substantial gains. But you obviously won’t know the type of gains until you do your research. Also, there’s no guarantee that a penny stock you want to buy, will actually go up at all.
However, in order to find the right biotech penny stocks to buy, an investor needs to keep an eye on the market and watch the latest movements. They also need to be aware of upcoming events that these health science companies have in the pipeline. Here is a look at three biotech penny stocks that gained recently.
Biotech Penny Stock To Watch #1
Acasti Pharma (ACST)
First on the list of penny stocks: Acasti Pharma Inc (ACST Stock Report). The company has been on a roll ever since it provided highly positive key fiscal year-end updates. Acasti stated at the time that it has $34.4 million in cash. With the gradual dialing down of clinic trials, it would have a significant amount of cash leftover.
The funds are expected to be allocated towards other Phase 3 trials. It stated that it had made significant progress in China as well. Over the past month, Acasti stock has almost double and recently, the stock rose by another 15%. During premarket trading on Tuesday, ACST has begun to gap up as well.
Biotech Penny Stock To Watch #2:
Achillion Pharmaceuticals (ACHN)
Another biotech penny stock that has made significant moves recently is Achillion Pharmaceuticals, Inc. (ACHN Stock Report). ACHN stock has gone up by as much as 165% ever since it announced positive updates. These were from its Phase 1 trial of its medicine ACH 5228. In the 2nd phase of the trial, the company wishes to test the medicine to treat conditions like ophthalmology, nephrology, hematology, and neurology.
With most biotech stocks in general, positive phase trial results can become a catalyst for a bullish market. Therefore it might not be out of the question, should its Phase 2 trials prove optimistic. This could certainly be a stock to keep in the watch list.
Biotech Penny Stock Gainers #3
Adaptimmune Therapeutics (ADAP)
However, the last one in the list of penny stocks to watch turned bullish most recently. On Monday, Adaptimmune Therapeutics PLC – ADR (ADAP Stock Report) released favorable penny stock news. Adaptimmune began a radiation sub-study of its medicine ADP A2M4. This was in partnership with the University of Texas MD Andersen Cancer Center.
The data that has been published so far have shown that the drug could be an effective one. Furthermore, a partnership with a leading university could hasten its effective development. Investors seemed to think the same and ADAP stock rallied by as much as 11.60%. It is going to be interesting to see how the stock performs over the coming days.