4 Biotech Penny Stocks To Watch Right Now
One of the top sectors for penny stocks and blue-chips alike has been biotechnology and healthcare. Obviously, the global pandemic and search for a coronavirus vaccine upped the attention on this sector in 2020. Aside from that, however, we’ve also got to keep in mind that this industry is loaded with innovation.
It’s that innovation that has become a catalyst for speculative breakouts and big wins for investors. Something to note with companies in the bio/pharma/health care arenas is the road to success can be lengthy but milestones along the way tend to act as triggers for breakouts and break downs.
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I’m talking about things like phase trials, FDA reporting dates, and countless other factors that contribute to the excitement for biotech penny stocks in particular. Another thing to keep in mind is that both the healthcare and biotech ETFs, which give a general overview of the health of these sectors, reached fresh, all-time highs this quarter. In light of this data, it could be an important time to check out a few biotech penny stocks.
Biotech Penny Stocks To Watch: Midatech Pharma
Something I didn’t cover above but might be obvious is volatility in this sector is also relatively higher than others. One of the companies that exemplifies this well is Midatech Pharma (MTP Stock Report). Over the last few weeks, MTP stock has spiked big multiple times then pulled back swiftly almost immediately after. The company has developed three in-house technology platforms, each with its own unique mechanism to improve delivery of medications to sites of disease.
On Friday, there wasn’t any news. However, shares of MTP stock were surging during premarket hours. The last update that came from the company was that warrants exercised and equity was issued. However, other than that, there hasn’t been much more on the newsfeed from the company. On July 21 Midatech announced a research collaboration for its Q-Sphera platform with a European affiliate of a global pharmaceutical company. Midatech will deploy its in-house expertise and proprietary drug delivery platforms towards assets nominated by the pharmaceutical company.
The affiliate as well as the “global pharmaceutical company” weren’t mentioned by name. Right now, we just know according to statements in the PR that it’s a “highly reputable” company. It will be interesting to see if any more details emerge. For now, MTP stock is pushing higher on Friday. Premarket highs saw the penny stock hit $3.32.
Biotech Penny Stocks To Watch: EyePoint Pharmaceuticals Inc.
We discussed EyePoint Pharmaceuticals Inc. (EYPT Stock Report) a few times this month. Initially, it was after EYPT stock hit a new 52-week low. Since last August, EyePoint stock has dropped from over $2.60 to where it’s at today. The latest nail in its coffin came after earnings were released for its second quarter. EyePoint was inline with EPS of ($0.10) and actually beat on sales with $4.12 million compared to estimates of $3.73 million. If you read management’s discussion, they seem to have several initiatives in sight (no pun intended).
However, this week EYPT stock has seen a bit of a turnaround (for now). EyePoint announced the expansion of its exclusive license agreements with Ocumension Therapeutics, this week. This was for the development and commercialization of YUTIQ® and DEXYCU® in certain Asian markets. Under the expanded agreements, Ocumension made a one-time $9.5 million payment to EyePoint. This was for the rights to commercialize both products under their own brand names. It was specific to South Korea and other jurisdictions across Southeast Asia.
EyePoint said it will use the payment to support its operations and the ongoing clinical development of its pipeline. This includes its lead product candidate EYP-1901, which is intended for wet age-related macular degeneration. With shares trading higher on Friday, where do you think EYPT stock ends up by the closing bell?
Biotech Penny Stocks To Watch: Hancock Jaffe Laboratories Inc.
Hancock Jaffe Laboratories Inc. (HJLI Stock Report) is one of the penny stocks we talked about earlier this month. This came to light as a company filing showing a FORM 144 on August 7th. Also, buzz was building around a previous update in June regarding a proposed merger. The company signed a non-binding letter of intent to merge with Catheter Precision, Inc., a private medical device company focused on cardiovascular diseases, including heart arrhythmias.
This week, HJLI stock is back in focus. Hancock announced that two additional VenoValve patients from its first-in-man, clinical study in Colombia have now reached the one-year milestone. Specifically, this was following VenoValve surgery. It was observed that chronic venous insufficiency had “significantly improved” in both patients when compared to pre-surgery levels.
For the two additional patients that are now one-year post VenoValve surgery, including one patient that is 86 years old, reflux \has improved an average of 62%, Venous Clinical Severity Scores have improved an average of 42%, and pain, as measured on a visual analog scale improved an average of 79%.
Biotech Penny Stocks To Watch: Caladrius Biosciences Inc.
Caladrius Biosciences Inc. (CLBS Stock Report) hasn’t had the most eventful year in 2020. It has maintained a general level of support around its 50-Day Moving Average this quarter, though. If you look at the chart, you’ll see what I’m talking about as CLBS has been trading relatively sideways for most of the year. But on Friday, CLBS stock took off early. If you’re searching for an immediate catalyst, you won’t find a news release or a filing. But I did some digging for you.
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On the clinicaltrials.org website, we can see that Caladrius has a clinical trial that was posted on August 21st. This clinical trial will explore the safety and potential efficacy of CLBS119 for the repair of COVID-19 induced pulmonary damage in adults. The “detailed description” explains the trial as:
[An] open-label clinical trial will explore the safety and potential efficacy of peripheral blood derived autologous CD34+ cells for the repair of COVID-19 induced pulmonary damage in adults. Eligible subjects will receive a single administration of CLBS119.
But again, there’s no headline from the company nor was there a tweet. In any even, CLBS stock reached premarket highs of $2.62 and maintained support around $2.40 before the bell.