Penny Stocks To Watch #2: Surface Oncology
Surface Oncology (SURF Stock Report) was another one of the top penny stocks this quarter. Since April 1st, SURF stock has climbed from around $1.80 to highs of $7.66. Quarter to date, SURF stock is still up over 170%. The company recently tapped Jones Trading as a sales agent for a $50 million share offering.
Keep in mind that the company put out big news earlier this month. This could be cause for further bullish speculation on the stock. Surface announced that it entered into a clinical trial collaboration with Merck (MRK Stock Report), known as MSD outside the United States and Canada , through a subsidiary. This is to evaluate the safety and efficacy of combining Surface’s SRF617 with Merck’s KEYTRUDA® (pembrolizumab). According to the company, this combination will be studied as a component of the first-in-human Phase 1/1b study of SRF617. It will be evaluated in patients with solid tumors, with a focus on patients with gastric cancer and those who have developed resistance to checkpoint inhibition. Considering that these are both areas of unmet needs, this could be pivotal for the company.
Though SURF stock is trading at the higher end of the penny stock range, it has been one to watch in Q2. The big question is what will come next? A collab with Merck certainly isn’t a small event to not take note of. But considering the planned raise, will that impact the wild run SURF stock has seen? You can see more details of the raise in the company’s May 22 424B5 filing.
