Should Biotech Penny Stocks Be Part Of Your Strategy Right Now?
Volatility is a big part of penny stocks. Then, when you pair it with a volatile sector, it could be the “perfect storm” for that high-risk, high-reward. Small- and micro-cap biotech penny stocks are some of the most volatile and for good reason. It has everything to do with the speculative nature of the companies themselves.
These are typically early-stage companies in pre-clinical stages working to develop novel treatments. Other companies may deal with medical devices too. We saw plenty of medical device penny stocks surge earlier this year with COVID-19 pushing demand for personal protective equipment. There were also companies benefiting from growing demand for coronavirus testing.
Whether it’s healthcare settings or virtual settings, there are plenty of angles to play biotech and health care. It even folds in technology in the form of telehealth applications. With coronavirus cases climbing in the U.S., this is likely going to be a clear focus for quite some time.
In addition, you can’t help but to think that many of these companies have other treatments in their pipelines. Investors searching for coronavirus penny stocks at first could also gain exposure to traditional biotech as well. Things like cancer treatments and autoimmune therapies are all things to take into account. With that in mind, let’s take a look at a few biotech penny stocks to watch for the upcoming month of August.
Biotech Penny Stocks To Watch: Revive Therapeutics Ltd.
Shares of Revive Therapeutics Ltd. (RVVTF Stock Report) (RVV) has been on a slow rise over the last few months. if you look at the chart, you’ll obviously see big spikes, including the recent jump to highs of $0.50. But then if you look at some technical levels, you’ll notice that RVVTF stock has followed along with its 50-day moving average since March. That has seen the biotech penny stock climb from around $0.04 at the time to recent trading levels of $0.19. A consistent move of 375% heading into August and after its last big update could be something to note.
At the end of June, Revive announced the submission of an Investigational New Drug application to the U.S. FDA. This was for a Phase 3 confirmatory study for Bucillamine. The trial is to see Bucillamine as a potential treatment in COVID-19. The company has also previously met with Health Canada in a Pre-Clinical Trial Application meeting. Revive also said that it intends to follow up with the submission of the complete CTA package for Health Canada around its Phase 3 study as part of the same multinational clinical strategy.
As far as the first Phase 3 study is concerned, once the U.S. FDA allows the IND to go into effect, Revive said it will initiate a randomized, double-blind, placebo-controlled study of Bucillamine in patients with mild-moderate COVID-19 in Q3-2020. With much more attention on coronavirus vaccine stocks, it’s not surprising to see this momentum in July. Is August setting up to experience something similar?
Biotech Penny Stocks To Watch: CHF Solutions
Another one of the penny stocks we’ve followed closely lately is CHF Solutions (CHFS Stock Report). This is more on the bio-technology/device side of the industry and the company has been making progress with its ultrafiltration therapy. CHF’s Aquadex SmartFlow™ system is used for managing fluid overload in patients with renal and other diseases.
CHF has fallen into the list of coronavirus penny stocks to watch especially considering the uses of its ultrafiltration therapy. Fluid overload or “hypervolemia” is an issue among critically ill children and adults, including patients hospitalized with COVID-19, heart failure, and kidney disease. This week the company announced another key update. CHF reported that it signed a distribution agreement with SysteMedic Ltd covering Israel and Palestine. This is the company’s second distribution partnership in the Middle East and brings its therapy availability to 16 countries outside the U.S.
On top of that, a mid-morning tweet triggered some additional, bullish sentiment on Thursday. CHF said that its Aquadex “usage to stabalize COVID-19 patients has grown in Florida due to the second wave of the virus. 3 new hospitals in Central Florida just added ultrafiltration as an alternative therapy for fluid management.”
CHFS stock has rallied strong this year. Since the end of February, the company has been on watch lists. At the time, the penny stock traded around $0.40. As of this week, CHFS stock reached a high of $0.8912 so far. Does August have more in store?
Biotech Penny Stocks to Watch: Seelos Therapeutics Inc.
Seelos Therapeutics Inc. (SEEL Stock Report) has been on the watch list since mid-May and is somewhat of a “slow mover”. It’s also one of the few listed penny stocks to have a foot in the emerging psychedelics industry. Revive, mentioned earlier, as well as other OTC-listed penny stocks are more popular for the emergence and popularity of psychedelics.
However, in Seelos’ case, anyone looking for listed mushroom stocks could have come across this in their travels. The company’s pipeline products include SLS-002, for instance. This is intranasal racemic ketamine for patients with suicidality in post-traumatic stress disorder and depressive disorder. Besides that, the company has a growing pipeline of rare disease drug candidates as well.
In May we saw two announcements spark initial interest. First, the company announced that it has been granted Rare Pediatric Disease Designation for SLS-005 in Sanfilippo syndrome from the U.S. FDA. Seelos then announced the appointment of F. Hoffman-La Roche alum, Judith Dunn to its Board. In June The company received feedback from the FDA supporting the design of a 16-day study for Acute Suicidal Ideation and Behavior in patients with Major Depressive Disorder. Seelos plans on starting that this fall.
This month, the company received a positive opinion on European Orphan Drug Designation for SLS-005 from the European Medicines Agency Committee for Orphan Medicinal Products. SLS-005 has also been granted Fast Track designation from the FDA for Oculopharyngeal Muscular Dystrophy.