Are These Penny Stocks On Your Watch List?
In 2020, penny stocks are catching the eye of many new investors. This generally refers to stocks under $5. This year has brought in an increased amount of investors into the market because of the current economic situation. Some penny stocks have been able to climb much higher depending on certain industries. One of the topics discussed earlier today was specific to biotech & healthcare penny stocks. While these penny stocks are volatile, they can be worth it for investors who do proper research.
Making money with penny stocks isn’t as simple as just creating a trading account and picking a random ticker. Usually, investors will have some kind of strategy that they follow. Sometimes you can find penny stocks to buy after news is released, for instance. Other investors will focus on charts and look for patterns. Others might focus on different industry & sector trends. Health care has been one of the hot topics this year. In fact, last week, the SPDR Healthcare ETF (XLV) hit a new all-time high. This week it continues to creep back up following a brief consolidation over the last few days.
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September is just around the corner with new opportunities likely to present themselves. With more economic data pointing at shifting trends, it’s also important to keep a broader awareness in light right now. What I mean by this is understand the stocks across the board are increasingly volatile. As such, having a stomach for big swings might be important for traders right now. Will any of these be on your list of penny stocks before next month?
Penny Stocks To Watch: Revive Therapeutics
The first penny stock to watch is Revive Therapeutics Ltd. (RVVTF Stock Report) (RVV). Some of its technology is meant to treat people experiencing pain, inflammation, and physical injuries. This year Revive has been one of the contenders for the COVID-19 drug race. There are currently more than 170 companies developing treatments for the virus. Revive Therapeutics has stepped up and shown promising results.
On August 26th Revive announced that it made more advancements with its potential coronavirus treatment. This drug is called Bucillamine and is currently about to enter its Phase 3 trials. It has been reported that up to 1,000 patients will be enrolled and the trial will go on for 14 days. The company expects to have patients enrolled in the trials by September. Revive is attempting to treat COVID-19 patients with its drug with the US FDA’s Expanded Access Program. This allows patients to receive drugs still under investigation when they have a serious disease or illness.
The CEO of Revive Therapeutics, Michael Frank, said “(With) the submission of the Phase 3 study protocol to Advarra, a premier IRB services company in North America, for review and approval, it will enable us to select key clinical sites in the US and proceed with site initiation visits to allow for the selected US clinical locations to enroll patients.”
This is a pivotal step for small-cap biotech companies like Revive Therapeutics. Also, keep in mind that Revive is further exploring FDA Expanded Access approval options. Since late-June, RVVTF has jumped as high as $0.50 and is currently up by more than 30% from June 26th to date.
Penny Stocks To Watch: Lipocine Inc.
Another one of the penny stocks that we’ve followed recently is Lipocine Inc. (LPCN Stock Report). This year we began picking up on its developments during the middle of the first quarter. Lipocine is a pharmaceutical company with a primary focus on its TLANDO treatment. This is the company’s oral testosterone replacement therapy.
Lipoccine has been setting its eyes on TLANDO as a means to restore regular testosterone levels in men who have a deficiency or lack of endogenous testosterone. TLANDO includes topical, injectable, and other forms of oral testosterone. An analyst at H.C. Wainwright, Oren Livnat believes that TLANDO is on its way to the FDA giving it approval status.
Livnat had this to say about Tlando: “We believe TLANDO has demonstrated a likely better blood pressure profile than approved Jatenzo, with a simpler dosing regimen to achieve efficacy, and that the FDA would likely rather avoid the headache of a Formal Dispute Resolution and just allow both products be approved with appropriate labeling.”
During the week of August 27th, LPCN stock is trading higher. On August 25th, LPCN stock price was at $1.44 a share on average. The following day, LPCN stock reached $1.63 a share on average. Wednesday, LPCN stock has reached $1.85 a share on average. This week is likely a pivotal one for Lipocine as its Prescription Drug User Fee Act goal date is this month on August 28, 2020. So, in light of this, if LPCN is on your list of penny stocks to watch, be well-aware that the outcome could be a potential catalyst for a move in either direction.
Penny Stocks To Watch: Xeris Pharmaceuticals Inc.
Xeris Pharmaceuticals Inc. (XERS Stock Report) focuses on selling injectable and infusible drug formulations, commercially. In June, XERS stock was experiencing some recent highs. That was until the company announced a $20 million public offering and that, of course, saw XERS stock price drop.
From June 24th to 25th, shares fell about 48.77% from $5.30 a share to $2.72. But from late July to late August, XERS stock has been spiking back up. It was trading at $2.83 at the end of July. As of August 26th, XERS stock reached a high of $4.13. A lot of the recent momentum came after the company announced earnings. Xeris reported an EPS and sales beat. Specifically, EPS loss was reported at $0.63 instead of the $0.73 that was estimated.
Aside from earnings, it’s also important to note its pipeline advancements. In July, Xeris reported additional data from a Phase 1b Comparative study of its concentrated diazepam formulation, XP-0863 for seizures. The FDA provided feedback that Xeris’ drug development program could advance directly into a Phase 3 registration study in both pediatric and adult patients with epilepsy. On top of that Xeris launched its Gvoke HypoPen™ and implemented a $0 copay offer for commercially insured patients.
There was some blowback from the FDA last week. The Administration commented on Xeris’ TV ads for Gvoke saying they made misrepresentations about certain risks associated with the drug. However, it seems that the market took things in stride (so far).