Biotech Penny Stocks To Watch Before The New Year
This week was more than just a big week for penny stocks. Several sectors and broader markets in general, reached new all-time highs. Now, not only did we see things like the S&P and Dow mirror that, but we also saw the Russell 2000 (IWM ETF) do the same. Strength in small cap stocks is just one facet to consider. However, you’ve also got to focus on which sectors and industries are driving the surge. If you couldn’t guess by the title, yes, biotech is one of them. On Monday, shares of the Biotech ETF (IBB) pushed to new record levels on the heels of fresh vaccine news. While things settled down by the end of the day, it hasn’t put the brakes on momentum, Tuesday morning.
When you’re looking for biotech stocks to buy, catalysts come in handy. It doesn’t have to be the lead up to a major earnings update either. In most cases, industry conferences and presentations may be enough of a platform to act as a catalyst.
Small Cap Biotech Penny Stocks To Watch In December
Just recently we saw the 62nd ASH Annual Meeting become the stage for numerous biotech and healthcare companies. While the meeting concludes today, there’s already been plenty of information to digest. Many of these companies, in fact, have offered positive results on different phase trials and treatment candidates.
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Compounding this with positive vaccine news and it’s no wonder why traders are searching for the next round of biotech penny stocks to buy. But why penny stocks? You don’t need to look much further than sector darling, Novavax (NVAX Stock Report). It has become the poster-child for why penny stocks are more than just “cheap shares”.
This year alone, NVAX stock ran from below $5 to nearly $190 and currently sits around $123. The direction of these stocks can shift with even the slightest bit of positive (or negative) news. So keep this in mind. If you’re looking for volatile penny stocks to buy right now, biotech stocks are some of the most explosive.
Biotech Penny Stocks To Buy [or sell]: Regulus Therapeutics Inc .
Regulus Therapeutics Inc. (RGLS Stock Report) has been on the rise for months now. While this wasn’t as parabolic as some of the other biotech penny stocks, it has climbed significantly all the same. Quarter to date, RGLS stock is up over 95% as of Tuesday’s premarket high.
What To Watch With RGLS Stock
Why could this be one of the biotech penny stocks to watch right now? Tuesday morning the company announced the closing of a $19.4 million offering. The significance here is that the funds will primarily to advance RGLS4326 for the treatment of Autosomal Dominant Polycystic Kidney Disease.
In October 2020, the company dosed the first patient in a Phase 1b clinical study for RGLS4326. It will evaluate administration of RGLS4326 for safety, pharmacokinetics, and changes in levels of polycystin 1 (PC1) and polycystin 2 (PC2). The first cohort is planned to enroll up to nine patients who will receive RGLS4326 every two weeks over a six week period. Regulus anticipates the availability of results from the first cohort by the end of Q1 2021. So this funding could be a key asset to meeting this milestone.
Biotech Penny Stocks To Buy [or sell]: Evogene Ltd.
Shares of Evogene Ltd. (EVGN Stock Report) are also on the watch list this month. Realistically, EVNG stock has been one to watch for most of the second half of the year. Since the end of July, the biotech penny stock has climbed from around $1 to highs of $5.30 and currently rests around $4. The diversified biotech company has achieved some notoriety for a few of its operating arms. This includes traditional biotech as well as things like medical cannabis.
What To Watch With EVGN Stock
This month, analysts at Cantor Fitzgerald initiated coverage on the company. The firm issued an Overweight Rating and announced a $9 price target. The most recent news that could coincide with current events has to do with its cannabis company, Canonic. The company announced receipt of approval from the Israeli Medical Cannabis Agency for the propagation of medical cannabis seedlings. This allows Canonic to move forward with the execution of its commercialization plan aiming to release its first product in Israel in 2022.
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Furthermore, the company’s also focused on its oncology pipeline. Biomica, its immuno-oncology company, reported positive in-vivo results from its BMC128 anti-tumor candidate. Early results have shown that both prior to and in combination with immune checkpoint inhibitors, there was a significant improvement in anti-tumor activity in mice.
Biotech Penny Stocks To Buy [or sell]: Lexicon Pharmaceuticals
Lexicon Pharmaceuticals (LXRX Stock Report) is another one of the big gapping biotech penny stocks to watch on Tuesday. Shares jumped to early, pre-market highs of $2.84 with strong volume boosting momentum. While LXRX stock has been relatively quiet and has experienced sporadic trading this quarter, Tuesday’s headlines seem to have helped spark another move. Whether or not that will remain the case is likely a concern for traders. Many times when stocks gap up so much, it opens the door for profit taking. So in this case, LXRX stock is green in the morning session. But will that be a different case by the closing bell?
What To Watch With LXRX Stock
The most recent catalyst came on Tuesday when Citigroup analysts upgraded Lexicon from Neutral to Buy and boosted their price target by 185.7% to $6. We saw a similar move in November when analysts at Gabelli & Co upgraded Lexicon from Hold to Buy.
A lot more attention has been placed on Lexicon following strong readouts from its SOLOIST and SCORED trials for the company’s sotagliflozin. This is the company’s oral glucose regulation treatment known as sodium-glucose co-transporter types 1 and 2 (SGLT1 and SGLT2). SGLT1 is responsible for glucose absorption in the gastrointestinal tract, and SGLT2 is responsible for glucose reabsorption by the kidney.
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In a November update, Deepak L. Bhatt, M.D., M.P.H., lead author for The New England Journal of Medicine publications of the SOLOIST and SCORED results explained, “Cardiovascular disease continues to be a leading cause of death in people with type 2 diabetes… Both studies add to the evidence that SGLT2 inhibition should be standard of care in heart failure, and the SCORED data reflecting a reduction in myocardial infarction and stroke and better glucose control in CKD patients suggest potential benefits from the dual SGLT1 and SGLT2 mechanism of this particular agent.”
