Are These Penny Stocks On Your Biotech Watch List Right Now?
When it comes to penny stocks, hot sectors can be constant sources of catalysts. One of the hottest right now has been biotech. We’re talking about one of the sectors of the stock market today that has been home to some of the biggest stock breakouts. The psychology involved with trading penny stocks of biotech companies is part speculation, part fundamental, and part FOMO.
This is especially true when you talk about stocks under $5. Investors always want to be on the cutting edge; the ground floor. There’s really no closer to a ground floor you can get than a start-up biotech company.
Most of these entities will go years without turning a profit but the potential of their pipeline and, in turn, potential revenue, as a result, are what investors are “buying into”. With penny stocks, volatility is a huge factor in profiting from big swings. Biotechnology and healthcare stocks are also just as volatile.
So mixing the two can make for a very “interesting” combination. Needless to say, if you can handle big swings in penny stock prices and understand how to make money with these swings, then it might be worth it to watch biotech stocks.
Biotech Penny Stocks To Watch: Revive Therapeutics
Revive Therapeutics Inc. (RVVTF Stock Report) (RVV) has been one of the biotech penny stocks to watch for a few months now. On March 25, it was trading around $0.06. Three months later, RVVTF stock has not only reached highs of $0.274 but continues to trade around $0.15 consistently at the end of June. What has been behind the attention? A few things that Revive has been working on.
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First, we can’t overlook the COVID-19 portion of its pipeline. Researchers have linked COVID-19 to acute respiratory distress syndrome, or ARDS. People who survive ARDS and recover from COVID-19 may have lasting pulmonary scarring. This is something that is also realized in a host of other viruses including pneumonia and chronic influenza.
Revive has explored the use of Bucillamine, for example, in the treatment of acute gout flares in a Phase 2 study in the U.S. This was under its Investigational New Drug (IND) application that was granted and accepted by the U.S. FDA. According to the company, Bucillamine has unrealized potential for the treatment of influenza with both proven safety and proven mechanism of action.
What’s more, is that The FDA recommended that Revive proceed directly into a Phase 3 confirmatory clinical trial. This is to evaluate Bucillamine for the treatment of patients with mild-moderate COVID-19 due to the SARS-CoV-2 infection in order to “ensure expeditious evaluation of the safety and efficacy of Bucillamine.” Since there’s been a lot of focus on coronavirus cases spiking recently, Revive could have already begun to turn heads based on the above-average trading volumes from this week. Will it be on your list of biotech penny stocks to watch? Read more on Revive, here.
Penny Stocks To Watch: Citius Pharmaceuticals
Citius Pharmaceuticals (CTXR Stock Report) is another one of the biotech penny stocks that have been on the move since March. From March 19th to this week, CTXR stock has jumped as much as 209.5%. This came as shares reached highs of $1.30 in late April following the submission of a pre-IND meeting request to the Center for Biologics Evaluation and Research of the FDA.
Though shares have pulled back from those highs, CTXR stock maintained a level of support well above its mid-March levels. In fact, for those looking at technical trends, you can see that both the 200 and 50-Day Moving Averages have acted as support for most of the second quarter.
This week CTXR stock is back on the move, bouncing off of the 50DMA and back above $1.00. This comes as Citius announced that its CEO would be giving a presentation at the Life Sciences Investor Forum today (June 25). With the presentation set for mid-morning, it makes sense as to why there’s been a build-up of excitement in the stock market today. The presentation was on the company’s Phase 3 trial with Mino-Lok in COVID-19.
The trial is more than half-enrolled. Mino-Lok is the company’s antibiotic lock solution used to treat patients with catheter-related bloodstream infections. Citius explains that there is an increased need for central lines coupled with limited resources to remove and replace infected central venous catheters. That’s based on a higher number of hospitalizations right now.
Penny Stocks To Watch: Durect Corp.
No question about it, DURECT Corp. (DRRX Stock Report) has been another top performer since mid-March. On 3-18 DRRX stock hit a low of $0.95. Since then it has climbed as high as $2.96 and it came within $0.08 of hitting that on June 25th. A big focus for the company recently has been on its hepatitis therapy. In fact, at the end of the month last month, DURECT reported positive topline data.
In a Phase 1b study, it’s DUR-928 for nonalcoholic steatohepatitis showed improvements in serum liver enymes and liver imaging. There were also no adverse events in the well-tolerated treatment. This data further supported development of DUR-928 as a result. However, there hasn’t been much more from DURECT after its June 3 presentation at the Jefferies Healthcare Conference.
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Among the majority of analysts covering DRRX stock, the average rating is “Strong Buy”. H.C. Wainwright was the most recent to reiterate its rating. The firm also boosted its price target. First, as far as the rating from H.C., it reiterated a “Buy”. However, its new target for the penny stock is now $6. This is up from its prior target of $5.50.
Penny Stocks To Watch: Kitov Pharma Ltd.
No list of biotechnology penny stocks to watch would be complete without mentioning Kitov Pharma Ltd. (KTOV Stock Report). KTOV stock has been explosive this quarter. When we first started following it this year, shares were trading around $0.45. The focus for Kitov has been on its progress with pain management and immune diseases. The company itself has been focusing on its cancer therapy, NT219 as a therapy for multiple treatment-resistant cancers.
Amid this big run, KTOV stock dropped from June 23 highs of $1.35 after a mid-day update came out on a $35 million raise priced at $0.90. But ever since then the KTOV stock price has been back in action. That’s most likely had something to do with the offering closing. This was reported in the June 23rd release, “The offering is expected to close on or about June 25, 2020, subject to satisfaction of customary closing conditions.”
Kitov intends to use the net proceeds of this offering to fund the development of its oncology drug candidates and the acquisition of new assets among other things. So with tens of millions in cash and a market recovery from a sell-off earlier this week, KTOV stock could be back on the list of penny stocks to watch heading into the rest of the week. Will it be on yours? KTOV stock has climbed more than 150% since we started watching this company in early May.
Biotech Penny Stocks To Watch: T2 Biosystems
T2 Biosystems (TTOO Stock Report) is yet another shining example of how big biotech penny stocks can move. Earlier this year, TTOO stock became a more frequently discussed company amid all of the exciting things happening in health care and biotech. Since then, we’ve seen shares explode from around $0.50 to highs of $1.95 on June 10. At the start of June, anticipation was building around the expected first shipment of the company’s SARS-CoV-2 test. According to the company, it has the resources to produce up to 100,000 tests per month and that it could potentially ramp up production to roughly 1 million tests per month with additional “non-dilutive funding.”
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This week the focus is back on TTOO stock following its latest tweet. The company tweeted a link stating, “A retrospective study on T2Candida by @HSVHospital concluded that using T2Candida led to fewer days of antifungal therapy and many opportunities for improvement in antifungal #stewardship were identified.”
However, the fact remains. Investors are still hungry for an update on test deliveries. While things have been “expected” for the month, nothing’s been confirmed by the company so far. Is this latest surge simply based on increasing speculation about such info? TTOO stock is up over 12% in the last 2 days.