These Biotech Penny Stocks Continue Seeing Positive Sentiment
As the latest news suggests, rising Covid cases means more attention is being paid to biotech penny stocks. These low priced stocks have become some of the most intriguing investments during the year. While they can be quite volatile, biotech penny stocks offer investors an exciting and affordable way to find potential value in the stock market. One thing to keep in mind is that not all biotech stocks are working on Covid related endeavors. But, all biotech stocks seem to be correlated to one another quite highly. Because of this, we tend to see most biotech penny stocks rise and fall in tandem with the rest of the biotech sector.
For some context, penny stock simply means any stock that is trading under $5. As you can see, this leaves quite a large space for companies of all types. In addition, because they are so cheap, penny stocks have a very low barrier to entry. With this in mind, we should always remember to do all the research we can into a given penny stock. This means understanding volatility, volume, financials and what a company is working on for the future.
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With this information at hand, investors can have an easier time finding out which penny stocks are worth watching. And with so much going on in the biotech sector, there is plenty of opportunity for biotech stocks. With that in mind, let’s take a look at four top penny stocks to watch right now.
Biotech Penny Stocks To Watch: GT Biopharma Inc.
GT Biopharma Inc. (GTBP Stock Report) mounted a late-week comeback last week. Over the last few days, the biotech penny stock has been working to maintain support. This appears around its 200-day moving average. One thing to note is that the company is set to present interim data at the upcoming ASH conference. The significance here is that its GTB-3550 for treating acute myeloid leukemia will be debuted in front of a large medical community. Furthermore, it’s important to keep in mind the company’s end of September announcement. GT Biopharma gave a Dose Level 3 Update on a patient completing a 25mcg/kg/day dose.
Why’s this important? In a recent update the company cited early information was released this month; you might consider that a preview. Here’s what was revealed in the online ASH meeting program:
“Though no objective responses were seen at the initial low dose cohorts tested, these early data suggest proof of principle that the drug has immune activity in humans. Subsequent patients given higher dose levels will determine if NK cell proliferation translates into clinical efficacy.”
Now, what we know is that these data were based on 4 patients. This includes 2 dosed at 5mcg/kg/day and 2 at 10mcg/kg/day. It doesn’t appear to include the newer information released by the company on its Dose Level 3 at 25mcg. Given the case that “higher dose levels will determine” if this translates to clinical efficacy, and that, in fact, a higher 25mcg/kg/day dose level 3 showed a positive result (so far), what could this mean for GT Biopharma’s GTB-3550?
Biotech Penny Stocks to Watch: 9 Meters Biopharma Inc.
9 Meters Biopharma Inc. (NMTR Stock Report) is a clinical-stage biotech company working on producing treatments for a wide range of ailments. The company states that its drug pipeline includes drugs used for treating celiac diseases as well as other ailments. On November 9th, 9Meters announced its Q3 2020 results for the period ending on September 30th.
John Temperato, CEO of 9 Meters Biopharma stated that “in a short period of time since our formation, the 9 meters team has meaningfully progressed our clinical trial in short bowel syndrome while maintaining the timeline for our celiac disease trial, which are our two key value-driving corporate objectives. These achievements are supporting our goal of building a patient-focused company.”
In terms of financials, the company reported a loss of around $0.06 per share for the third quarter. Which is quite a big step in the right direction considering a $0.26 loss in Q3 of 2019. In addition, the company remains with $12.4 million in cash on hand, putting it in a decent cash position. We have to also consider that while companies have drugs in their pipeline, they don’t usually see large revenue until treatment is approved by the FDA. While we wait for its trials to continue, it seems as though investors should continue to watch NMTR stock. With all of this in mind, investors can decide if NMTR stock is right for them.
Biotech Penny Stocks to Watch: Aerpio Pharmaceuticals Inc.
Aerpio Pharmaceuticals Inc. (ARPO Stock Report) is another leading biopharmaceutical company working on producing several drugs to combat unmet medical needs. The company states that it has several drugs in its pipeline that could be utilized in the fight against Covid. Currently, Aerpio is working on substances that activate the Tie2 receptors in the body to help fight against Covid related acute respiratory distress syndrome or ARDS. Recently, Aerpio Pharmaceuticals announced that it has dosed its first patient in the Phase 2 trials of this substance. The drug known as Razuprotafib targets ARDS in cases that require it.
CEO of the company, Joseph Gardner stated that “we commend our clinical team and the trial investigators who have established a close collaboration in this important pgoram. Razuprotafib may also benefit Covid-19 patients who have not yet progressed to ARDS, and we hope that it may fill the need for effective therapeutics for this devastating disease while vaccine development advances. Additionally, therapeutics that can prevent or treat ARDS in Covid-19 may prove useful in other diseases where ARDS is the primary cause of morbidity and mortality.”
As we can see, Aerpio Pharmaceuticals clearly has a close relationship with the Covid industry that has popped up in the past six months. Because of this, many believe that it could be a solid biotech penny stock to watch.
Biotech Penny Stocks to Watch: BioCryst Pharmaceuticals Inc.
BioCryst Pharmaceuticals Inc. (BCRX Stock Report) is the final company on this list of biotech penny stocks to watch. The company states that it is working on the discovery of oral medicines that can treat rare diseases that are not met by current innovations. This includes its drug Orladeyo for treating heredity angioedema. In addition, BioCryst has several other drugs such as Rapivab, which is in use to treat influenza. What puts BioCryst on the list of biotech stocks to watch right now is its drug galidesivir, which the company is studying as a treatment for Covid-19. Recently, the company reported its Q3 results for 2020.
In the results, the company stated that “for the three months ended September 30, 2020, total revenue was $6.1 million, compared to $1.8 million in the third quarter of 2019. The increase was primarily due to an increase in collaboration revenue under U.S. government deployment contracts and higher peramivir product sales.”
With the aforementioned U.S. government contracts, the company has been able to quickly grow its revenue and the research it is doing on the drug in question. As a Covid-19 biotech penny stock, it looks like BioCryst has a unique market position. For this reason, investors can decide whether or not BCRX stock fits their portfolio style right now.