Penny Stocks To Watch #2: BELLUS Health Inc.
It’s never uninteresting to see penny stocks evolve from certain milestones. We first began to follow BELLUS Health Inc. (BLU Stock Report) on July 6th just as the stock had reached a new low. Why would anyone look at the company on that date? Well, biotech penny stock in particular can be fickle. Namely, when they report negative results, there’s always management’s discussion to focus on afterward. While it tends to be a bad scenario for anyone who held shares prior to the news, after the drop tends to be “interesting”. Stocks either continue aggressively lower or try to bounce. In this case, BLU stock didn’t bounce big but it didn’t break down either.
On July 6, BELLUS reported that it did not meet its primary endpoint in its Phase 2 RELIEF trial of BLU-5937 to treat chronic cough. In the trial, the drug was well tolerated, with no serious adverse events reported. However, it didn’t meet its primary endpoint of reducing placebo-adjusted cough frequency. Roberto Bellini, President and Chief Executive Officer of BELLUS Health said, “We believe the Phase 2 data support moving BLU-5937 forward into an adaptive Phase 2b trial enriched for higher cough count patients. We expect to begin this trial in the fourth quarter of 2020.”
Aside from earnings results, which appear to have been expected based on the market’s lack of reaction, no new update has come out. But that hasn’t meant there isn’t anything to focus on with this company, currently. The twitter feed of Bellus CEO Roberto Bellini. In a discussion thread, Bellini cited several initiatives for the upcoming few months. He also discussed BLU-5937 and how it showed ‘clear activity’ in higher cough patients. He didn’t expect big details in the quarterly however, he cited that September could be a busy month to keep Bellus in mind.