Penny Stocks To Watch If Biotech Is Your Focus This Week
Another week and another round of penny stocks to watch. One of the top sectors this year that has produced some of the biggest winners: Biotechnology. There’s no secret that coronavirus vaccine stocks have been a prime focus for investors. In fact, if you look at some of the massively successful penny stocks in 2020, you’ll be sure to find COVID names on that list. Whether it was the names rising a few hundred percent or other penny stocks like Novavax, Inc. (NASDAQ:NVAX) rising a few thousand percent, the fact remains. Early money placed on these stocks returned huge windfalls for some investors.
Some have even called this the best trade of all-time. No other investor has personified the magnitude of this opportunity than billionaire hedge fund manager, Bill Ackman. The Pershing Square founder ended up turning $27 million into several billion dollars taking full advantage of the opportunity that the COVID-trade provided.
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However, he wasn’t the only one who saw potential in the market. Millions of new “Robinhood Traders” took the global economic shutdown and turned it into something of substance. New retail traders flooded the stock market attempting to make money with penny stocks while businesses were shuttered from the public.
Penny Stocks To Watch With Key Developments In Biotech
Compounding this with the “coronavirus trade” the retail community, previously inexperienced with trading in general, found that these “COVID stocks” dealt with more than just coronavirus vaccines. This became clear after the billion-dollar buyout news between Gilead and Immunomedics earlier this month. In sympathy with that headline, traders looked at these previous “vaccine stocks” and found many had immuno-oncology platforms.
Now, we’re seeing a broader focus on biotech penny stocks stemming from multiple catalysts this month. One of the beauties of this sector is that companies will announce upcoming dates for things like data readouts, PDUFA dates, NDAs, and INDs. In light of this, it creates a “high-risk, high-reward” scenario that so many traders look for. Keeping that in mind, here’s a list of penny stocks that have or could be making key updates this month.
Penny Stocks To Watch #1: GT Biopharma (OTC:GTBP)
GT Biopharma (GTBP Stock Report) is one of the immuno-oncology stocks that recently gained attention following new updates in its Phase I/II trial of GTB-3550. The company has focused on novel treatments for numerous types of solid tumor cancers. Its lead drug candidate, GTB-3550, is GT Biopharma’s first TriKE™ (tri-specific natural killer engager) product candidate. The initial developed focuses on treating of acute myeloid leukemia (AML).
This past week, the company announced that it had completed treatment of the first patient enrolled at Dose Level 3 in this Phase I/II trial of GTB-3550. Results appear to have been favorable with the dose showing a decrease in AML blast levels from 18% to 12% in the bone marrow. GT Biopharma also observed an increase in the patient’s NK cell activity and numbers attributable to the IL-15 component of the TriKE™ molecule. Additionally, the patient experienced no adverse reactions.
What To Watch With GT Biopharma
In response, the company explained, “We also observed improvement in marrow cellularity, a decrease in AML blast levels, and improving platelet and red blood cells numbers. The patient will be retreated with an additional round of GTB-3550 therapy at the 25mcg/kg/day dose.”
Considering the recent excitement surrounding early-stage biotech companies, GTBP stock has gained ground over the last few days. During the last week, it experienced several days of above-average activity and price climbed to some of its highest levels since the beginning of the month.
Penny Stocks To Watch #2: Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP)
Tonix Pharmaceuticals Holding Corp (TNXP Stock Report) has been one of the biotech penny stocks to watch since May. When we first reported on during the mid-second quarter, TNXP stock was trading around $0.70. The penny stock would ultimately go on to soar to highs of $2.46 in July making for a strong start to Q3. However, as you can see on the chart, TNXP ended up as a short-lived move. The penny stock has since, steadily consolidated ever since. However, this week could be one to keep in mind.
This pivots off of the company’s update earlier this month. Tonix announced the first participant was enrolled in the Phase 3 RALLY study (TNX-CY-F306) of TNX-102 SL 5.6 mg for the management of fibromyalgia. TNX-102 SL is the company’s sublingual tablet formulation of cyclobenzaprine HCl for the management of fibromyalgia. RALLY is the company’s second of two potentially pivotal Phase 3 studies of TNX-102 SL.
What To Watch With Tonix Pharmaceuticals
Why could this week be important for Tonix? In that September 3rd update the company explained that an interim analysis of the first of the current fibromyalgia trials, RELIEF, is expected by the end of September. Considering that we’ve got 3 days left in that timeframe, this week could be pivotal for Tonix. Topline results are expected by year-end. If the RALLY study maintains current enrollment timelines and objectives, it is expected to report topline data in the second half of next year.
Penny Stocks To Watch #3: BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)
BioCryst Pharmaceuticals, Inc. (BCRX Stock Report) is another one of the biotech penny stocks to watch this week. In fact, BCRX stock has been on the radar as one of the coronavirus vaccine stocks to watch since April. At the time, the company had just opened enrollment into a clinical trial to assess the safety, clinical impact and antiviral effects of its galidesivir treatment in patients with COVID-19. Fast-forward a few months and BCRX stock has managed to climb from around $2 to highs of over $6.
Closing out last week, BCRX stock was trading at $3.64. However, aftermarket momentum took the stock slightly higher to $3.66. What’s got traders looking at BioCryst right now? We’ve got another “third quarter milestone” to look for. In its August 6th update, the company discussed several initiatives.
What To Watch With BioCryst Pharmaceuticals
First, the company is conducting a randomized, double-blind, placebo-controlled clinical trial (NCT03891420) in Brazil. The trial design to focuses on assessing the safety, clinical impact, and antiviral effects of galidesivir in COVID-19 patients. The company is expected to provide information from Part 1 of this clinical trial by the end of Q3 2020.
Additionally, on August 3, 2020, the company announced that the FDA granted Fast Track designation for BCX9930 for the treatment of paroxysmal nocturnal hemoglobinuria (PNH). It was also granted orphan-drug designation at the end of August. The company expects to report data from treatment-naïve PNH patients receiving 200 mg / 400 mg twice daily this quarter.
In both cases, the clock is ticking for these results to get published within the announced timeframe. Considering the late afternoon move BCRX stock saw Friday, could that be a sign of what’s to come in the week ahead?
Penny Stocks To Watch #4: Spring Bank Pharmaceuticals Inc (NASDAQ:SBPH)
Spring Bank Pharmaceuticals Inc (SBPH Stock Report) is due to present data of its own this week. Unlike the previous two penny stocks, Spring Bank announced a formal date that it would present abstracts related to its IV SB 11285 Phase 1a/1b trial. The presentation will be at the 7th ImmunoTherapy of Cancer conference from October 3-5, 2020.
Spring Bank is a clinical-stage biopharmaceutical company developing treatments for oncology and inflammatory diseases. Its lead clinical product candidate is SB 11285. The therapy focuses on treating selected cancers. Furthermore, Spring Bank’s STING antagonist compounds take aim at treating a broad range of inflammatory diseases. Its STING agonist ADC program centers around oncology applications.
What To Watch With Spring Bank Pharmaceuticals
Aside from this, Spring Bank also has other relevant pipeline treatments to keep in mind. In April the company began pursuing programs to study its portfolio of RIG-I agonist and STING agonist compounds. The focus was on them being potential treatments for SARS-CoV-2.
Meanwhile, Spring Bank has a pending merger deal set to close later this year. The company agreed to acquire F-Star Therapeutics, a clinical-stage company delivering tetravalent bispecific antibodies in cancer therapy. There’s a lot of moving parts to this right now. However, this week, the focus could be all about the upcoming presentation during the first few days of October.
Penny Stocks To Watch #5: Selecta Biosciences Inc (NASDAQ:SELB)
Selecta Biosciences Inc (SELB Stock Report) is another biotech name to note this week. The company’s main focus is on its immune tolerance platform, ImmTOR™. Back in August, the company gave a corporate update outlining the milestones reached and upcoming plans for investors to consider. One of these was with regard to clinical milestones for its SEL-212, the company’s lead product candidate for treating chronic refractory gout patients.
During the second quarter, Selecta closed strategic licensing agreement with Sobi for SEL-212 for $100 million in initial payments and up to $630 million in potential milestones, and tiered double-digit royalties. The companies announced the start of phase 3 DISSOLVE clinical trials earlier this month. Meanwhile, the company expects topline results from its Phase 2 COMPARE clinical trial this quarter. The primary endpoint of the COMPARE trial is the maintenance of serum uric acid levels of <6mg/dL at three and six months.
What To Watch With Selecta Biosciences
In addition, early this month Selecta presents at a few upcoming investor conferences. The company’s CEO, Carsten Brunn, Ph.D., will participate virtually in the Jefferies Virtual Gene Therapy/Editing Summit Thursday after the close. He also participates in fireside chats next Monday at the Chardan Virtual 4th Annual Genetic Medicines Conference.
Again, keep in mind with companies with upcoming milestone dates, this could present a high-risk/reward scenario. Obviously, favorable results could translate as a bullish catalyst. However, keep in mind that the opposite end of that spectrum could also become a reality as well. In any case, these companies have gained attention recently and could take some of the spotlight this week.