Are These Biotech Penny Stocks On Your List Right Now?
One of the hottest sectors this year is biotechnology. No matter if you like momentum, speculation, fundamentals, etc. there are plenty of biotech penny stocks to watch in 2020. With that, it’s important to understand some of the basics of these wildly trading names.
First, when it comes to small-cap biotech stocks, you’re likely going to be looking at more speculation bias than anything. These are the companies that are “emerging” or “early stage”. These companies may be in Phase 1 clinical trials or even “pre-clinical” trials. Essentially, you’re looking at penny stocks that have companies in the ‘beta stages’ of growth.
While many still have a long road ahead, even small victories can equate to big price movement. At the same time, missing targets can also have an impact in a negative fashion. It’s important to understand what you’re reading in headlines. While some headlines appear positive, you need to read the fine details. This is where things like “endpoints” and “efficacy” will be popular hot-button items to be aware of.
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But as we’ve seen, even if there’s a negative response, management’s reaction is important too. When it comes to favorable results, how they aim to progress into advanced trials, and how they aim to finance those trials is just as important. On the flip side, if you have biotech penny stocks or healthcare penny stocks reporting bad results, you’ll want to know the plan.
Biotech Penny Stocks To Watch
Does the company work toward fixing issues or does it scrap the treatment all together? Minerva Neurosciences (NERV Stock Report) was one of these examples that we actually began watching last week. While shares have imploded from previous levels, we’re seeing it as NERV stock has managed to claw back by more than 100% in just 2 days. The reason?
Look at management’s commentary after its trials missed targets. “We intend to consult with the US FDA about the next steps in the development of roluperidone for this indication after we complete the analysis of the study data.” So that maybe one of the reasons behind the fact that NERV stock didn’t completely fall apart after falling so hard last week.
So there’s a brief idea of how to use penny stock news to your advantage. With that in mind, let’s take a look at a list of penny stocks that are trending this week. Will they be the best penny stocks to buy right now?
Biotech Penny Stocks To Watch: Tenax Therapeutics
Tenax Therapeutics (TENX Stock Report) is another example of a biotech penny stock dropping big after bad news. TENX stock dropped from over $1 to lows of $0.25 after trial news and the announcement of a discounted share offering. However, since then shares have been on the move and recovered significantly from those $0.25 lows.
That momentum has continued to surge in May and June. The initial surge came after a 13D filing revealed a large stake taken by Ziyad Binsalamah, in Tenax. In June, Tenax blew open the doors after posting results from its Phase 2 trial of levosimendan. This was in patients with pulmonary hypertension and heart failure. The data further support a move to Phase 3 as you’ll see in follow up comments.
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Dr. Stuart Rich , Professor of Medicine at the Bluhm Cardiovascular Institute at Northwestern University commented “Levosimendan is the first drug to ever show a favorable mechanism of action with biventricular effects in patients with PH-HFpEF. The consistency of the hemodynamic data and improvement in 6-minute walk demonstrates that levosimendan has great promise as a treatment for PH-HFpEF which has a serious unmet need. The favorable safety profile, especially the absence of any proarrhythmic effects, supports the further development with a phase 3 trial.”
Biotech Penny Stocks To Watch: Tevana Inc.
Trevana Inc. (TRVN Stock Report) is another biotech penny stock managing to reverse course this year. Overall, TRVN stock was in a downtrend for most of 2019 and into the early second quarter of 2020. After finally hitting 52-week lows of $0.46, the biotech penny stock swiftly began its ascent. Since hitting those lows in early April, TRVN stock has run as high as $1.52 before June 2. This came as the company reported on several key updates that triggered market momentum in April, May, and now June.
The April publication of a review of the clinical and nonclinical data for oliceridine in “Drugs of Today,” got things rolling. Late month’s update on multiple institutions on studies of its TRV027 in COVID-19 stoked the fire even more. This week, things heated up again after another big update.
Trevena announced entry into a collaboration with Imperial College London to evaluate the potential of TRV027. Remember this is its AT1 receptor selective agonist to treat acute lung injury contributing to acute respiratory distress syndrome (ARDS) in COVID-19 patients. ARDS is a major complication leading to mortality associated with COVID-19 as many have become familiar with. Imperial College London will be sponsoring and funding this study, with additional support through the British Heart Foundation Centre for Research Excellence Award. This helped boost TRVN stock back above $1.40 during premarket trading on June 2.
Biotech Penny Stocks To Watch: AMERI Holdings, Inc.
Finally, some news out of the cannabis biotech sector has traders excited on Tuesday. This came after the latest news from AMERI Holdings Inc. (AMRH Stock Report). The company announced that its proposed amalgamation partner Jay Pharma Inc. received institutional review board approval by Rabin Medical Center in Petah Tikva, Israel.
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This was for a Phase I/II clinical trial investigating Jay Pharma’s proprietary cannabidiol formulation for the treatment of glioblastoma multiforme. It’s a rare and aggressive form of brain cancer. According to the company, this open-label, two-arm, randomized, prospective study is scheduled to begin after final approval from the Israel Ministry of Health. AMERI said that is expected this summer.
“We believe that this clinical trial will further advance our understanding into how CBD affects this aggressive, rare and deadly cancer,” said Dave Johnson , CEO and Chairman-elect of Jay Pharma. “Our focus on cannabinoid medicine is driven by our belief in its potential efficacy in palliative cancer care and the potential of our proprietary cannabinoid formulation.”
Since this news came out close to the opening bell, it’s likely just started to circulate. Something else to keep in mind is that AMRH stock has a very low outstanding share count, which likely constitutes this as one of the low float penny stocks to watch. Due to the simple fact that AMRH stock really doesn’t trade a lot, this latest surge could turn some heads this week. The big question: can this momentum continue after the news gets digested by the stock market today?