Could Sector-Based News Impact These Penny Stocks?
We’ve discussed penny stocks and sympathy trades in the past. What are sympathy trades? If you’re unfamiliar, these tend to be stocks that rally after related news or larger company stock movement trigger momentum for other stocks. Think of the myriad instances we’ve seen over the years. When Constellation Brands bought a stake in Canopy Growth a few years back, we saw marijuana stocks rally. Similarly, this year when certain biotech companies announced big COVID-19 news, we saw smaller-company stocks react.
Now, not all penny stocks with some related product or service will break out on big sector news. However, it’s worth mentioning that sentiment and speculation are big drivers for stocks under $5. This weekend big news came out of the biotech space. No, it wasn’t coronavirus news, however, there was a new development there as well. It had to do with a $21 billion buyout. Gilead (GILD Stock Report) will acquire biotech company Immunomedics (IMMU Stock Report) in a $21 billion deal that will expand Gilead’s cancer treatment platform. One of the biggest additions for Gilead will be Immunomedics’ Trodelvy. It’s an FDA-approved treatment for metastatic triple-negative breast cancer.
“Trodelvy is an approved, transformational medicine for a form of cancer that is particularly challenging to treat,” Gilead Chief Executive Daniel O’Day said. “We will now continue to explore its potential to treat many other types of cancer, both as a monotherapy and in combination with other treatments.”
In light of this, there could be some speculative momentum to consider in the stock market this week. But it might not only be focused on cancer treatment penny stocks. We might see more bullishness from coronavirus vaccine stocks too.
Penny Stocks To Watch As Israel Goes Back Into Lockdown
It wasn’t just headlines related to Gilead’s deal with Immunomedics to consider this weekend. The Israeli government is set to impose a second COVID-19 national lockdown.
The government decided to impose a lockdown lasting three weeks. This is the first country to reimpose such strict guidelines on a national scale. It came after a massive surge in coronavirus cases. Prime minister, Benjamin Netanyahu, said hospital heads had warned the healthcare system would be stressed if infection rates rose higher. “They raised a red flag,” he said. “I know these steps are a heavy price for us all. These are not the holiday we are used to. We certainly won’t be able to celebrate with our extended families.”
In light of this, COVID penny stocks could remain on the list heading into the first half of the week as well. Either way, we’re going into a new week with two major, broad market headlines to keep in mind.
Cancer Penny Stocks To Watch: Genetic Technologies Ltd
Genetic Technologies Ltd (GENE Stock Report) stock has held up well after jumping in July. Using the 50-day moving average as recent support, GENE stock has managed to bounce back from a recent pullback earlier this month. The recent focus of the company was on its COVID-19 test. In mid-July, the penny stock rose to highs of $10.30 after news that Genetic Technologies would scale up manufacturing of its COVID-19 test. The test uses a Single Nucleotide Polymorphism panel, which can show if a person may be more or less adversely affected by COVID-19.
However, as we know, biotech stocks typically have multiple pipeline products. In light of this, Genetic Technologies has placed a more recent focus on its breast cancer risk assessment tests. Late last week we saw the company follow up on this topic with a big update.
The company announced that initial sales of its GeneType for Breast Cancer Risk Assessment began in the United States via an online health platform, elicity by InTeleLabs. InTeleLabs is an independent telehealth and personalised medicine company. Genetic Technologies CEO Dr George Muchnicki said, “GeneType for Breast Cancer outperforms current standard risk assessment tools, giving clinicians and patients a better way to identify at-risk women for additional breast cancer screening and prevention options. Making this test available via telehealth clinicians gives individuals interested in risk assessment another avenue for access.”
In addition to GeneType for Breast Cancer, The company also said that its GeneType for Colorectal Cancer will be available through the third-party online platform as well as a pipeline of tests to follow.
Coronavirus Penny Stocks To Watch: Aytu Bioscience Inc.
Aytu Bioscience Inc. (AYTU Stock Report) has been on the list of coronavirus penny stocks to watch for a while. In late-February, this penny stock first hit the radar. At the time AYTU stock was trading around $0.75 and the company had just closed on an acquisition of Innovus Pharmaceuticals.
Aytu BioScience is a specialty pharmaceutical company commercializing novel products addressing patient needs. For the most part, AYTU stock has been a channel-bound trade over the last few months. While it experiences sporadic jumps here and there, the stock remained in a channel between $1.20 and $1.70. AYTU stock recently dipped below that lower level of the channel in September as COVID stocks cooled down. However, during the last few sessions, AYTU stock has bounced back.
Last week the company announced that it inked a deal to distribute the Pinnacle CovID RAD Rapid Antigen Detection Test worldwide. The rapid antigen test delivers results in fifteen minutes. Pinnacle IVD Corporation plans to scale U.S. manufacturing capacity for the CovID RAD Rapid Antigen Detection Test to 25 million tests per month.
Coronavirus Penny Stocks To Watch: iBio Inc.
iBio Inc. (IBIO Stock Report) also had a strong start to the year. However, the last few weeks have been mostly quiet and, like AYTU, range-bound. The penny stock traded between $1.70 and $2.70, so it’s a much wider range in this case. All the same, there hasn’t been a clear trend formation so far.
The company recently announced a worldwide license agreement with Planet Biotechnology Inc. This deal is for the development of Planet’s COVID-19 therapeutic candidate, ACE2-Fc. In vitro studies demonstrated that its ACE2-Fc blocks the SARS-CoV-2 virus from infecting Vero E6 cells. The company also most recently announced that it selected IBIO-201, its LicKM™-ubunit vaccine, as its leading candidate for the prevention of SARS-CoV-2 infection. In March, iBio filed four provisional patent applications with the U.S. Patent and Trademark Office in support of its Covid-19 vaccine platforms.
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Tom Isett, Chairman & CEO of iBio, explained that “While IBIO-201 produced significantly higher anti-spike neutralizing antibody titers than IBIO-200, we are still encouraged by the potential of IBIO-200.”
Cancer Penny Stocks To Watch: Checkpoint Therapeutics Inc.
Checkpoint Therapeutics (CKPT Stock Report) is another one of the oncology or cancer penny stocks to watch right now. Last week we discussed this company after the penny stock jumped on more headlines. The company announced dates for upcoming presentations this month. These include H.C. Wainwright’s Global Investment Conference, Cantor’s Global Healthcare Conference, & MedTech Summit, & Lake Street Capital Markets Growth Conference.
What’s more, is that key clinical data will be presented as well. Back in July, Checkpoint had announced that an abstract highlighting updated interim safety and efficacy data from the ongoing registration-enabling clinical trial of cosibelimab was accepted for e-poster presentation at the European Society for Medical Oncology Virtual Congress 2020, to be held September 19-21, 2020. Cosibelimab was used in patients with metastatic cutaneous squamous cell carcinoma.
The company previously released interim results for cosibelimab in a poster presentation at the ESMO Congress last year. Results included a 50% objective response rate by investigator assessment in the first 14 mCSCC patients, including one complete response. All responses were confirmed and ongoing at the time of analysis.