Biotech Penny Stocks to Watch
Friday, January 8th was a relatively good day for many penny stocks. After a week of volatility in the stock market, Friday represented a relatively calm day for investors. Now that the year is off to a decent start, there are a few catalysts that remain and to take note of. First, vaccine distribution and how it will affect certain stocks. Second, day traders & investors should determine how Joe Biden’s presidency will play into the stock market. These seem to be two of the most prominent factors that are affecting penny stocks & blue-chip stocks alike right now. With that in mind, investors seem to be focused on biotech stocks in January.
Over the past year, we have watched many small-cap biotech companies shoot up in value by substantial amounts. This is of course due to the effects of the pandemic on world markets and the demand for treatments. Outside of biotech and biopharmaceutical companies, there are several other industries benefiting from the pandemic. These include things like technology and transportation.
As you can see, it’s important to think outside of the box when looking for penny stocks that may have potential. With biotech in focus, however, there are plenty of options that could provide value for investors. All things considered, here are four biotech stocks that jumped on January 8th and that analysts appear more bullish on right now.
Penny Stocks To Buy [According To Analysts]
- BioNano Genomics Inc. (BNGO Stock Report) “Buy“
- Lexicon Pharmaceuticals Inc. (LXRX Stock Report) “Buy”
- Verastem Inc. (VSTM Stock Report) “Buy“
- Transenterix Inc. (TRXC Stock Report) “Hold“
Best Penny Stocks To Buy [Ladenburg Thalmann]: BioNano Genomics Inc.
BioNano Genomics Inc. is one of the companies we’ve discussed in great detail over the last few weeks. In fact, since December 28th, we’ve watched BNGO stock skyrocket from around 90 cents to highs of over $7. While there was some serious consolidation after that move, Friday, the company announced the pricing of its new public stock offering. The company stated that it would be selling around 29 million shares of common stock for a price of $3.05 per share. While raises aren’t usually the highpoint with penny stocks, after the announcement, shares of BNGO stock ended up putting in a 14% gain by the end of the day on Friday.
Of course, the idea of share dilution is on the table but this deal should add roughly $88 million to its balance sheet. There is definitely a tradeoff here, but it seems as though BioNano is working to show strength in its financials. The company is currently utilizing genetic testing to help patients suffering from a wide variety of ailments. This is based on its Saphyr system for scientists and clinicians conducting genetic research and patient testing.
What To Watch With BNGO Stock
One of the things we’ve seen experience an uptick in attention is genetic research, testing, and therapeutic stocks. BNGO, by far, has demonstrated the nature of this excitement. Furthermore, analysts at Ladenburg Thalmann have followed suit. Right now the firm has a Buy rating on BNGO. With aftermarket momentum pushing shares higher on Friday, will this be another parabolic move for the stock or is another pullback in store?
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Best Penny Stocks to Buy [Citigroup]: Lexicon Pharmaceuticals Inc.
The beginning of December saw traders putting together lists of penny stocks to watch before 2021. In our article, “Are These Biotech Penny Stocks To Buy Before 2021?” Lexicon Pharmaceuticals Inc. was highlighted along with 2 other companies, both of which have followed suit with the LXRX stock trend. This is another clinical-stage biopharmaceutical company working on treating a wide variety of illnesses. The company is currently in the development of drugs such as Xermelo, which can treat the side-effects of carcinoid syndrome.
[Read More] Top Penny Stocks To Watch If You Like Tech Stocks In January 2021
In addition, the company is in Phase 3 trials for its drug LX9211, which is utilized in the treatment of Type 2 Diabetes. Lexicon has several licensing agreements that are currently underway. This includes agreements with Genentech, Ipsen Pharma SAS, and others. On January 4th, the company announced that it had dosed its first patient in the study of LX9211. The goal of this study is to see its efficacy in treating post-herpetic neuralgia.
Over the course of six weeks, patients at 30 clinical sites will receive either LX9211 or placebo. Additionally, this drug has received a fast track designation from the FDA which is a major hurdle that the company has overcome. Investors should consider that it will still take some time before the different trials are completed. But in the meantime, the company is still developing other drugs. Lexicon has illustrated its focus on treating diabetes and diabetic-related conditions. Approximately 34 million people are currently living with diabetes in the U.S. This provides a very large base for Lexicon to work off of.
What To Watch With LXRX Stock
What’s more, is that the company presents next Thursday at the J.P. Morgan Healthcare Conference. While the bank doesn’t currently cover Lexicon, Citigroup has recently weighed in. The firm has a “Buy” rating on the penny stock along with an LXRX stock forecast price 56% higher than Friday’s close, at $6.
Best Penny Stocks to Buy [Cantor Fitzgerald]: Verastem Inc.
Since early November, Verastem Inc. has been in focus much more frequently. It’s a biopharmaceutical company that saw its shares bump up significantly over the last few weeks, Friday included. The company is developing and commercializing various treatments for cancer. Verastem has several unique drugs that are currently in its pipeline. This includes duvelisib, which is used in rare types of leukemia.
Last month, the company announced that it had begun a Phase II study for its drug known as VS-6766. The goal of this study is to see its efficacy in treating chemotherapy-resistant cancers. One thing to keep in mind is that trials like these take a significant amount of time. And in the meantime, biotech companies will usually spend quite a lot of money on development and commercialization.
Despite this, Verastem still boasts a broad portfolio of pharmaceuticals that are in later trial phases. In its latest financial report, the company posted a very healthy balance sheet for Q3 2020. Brian Stuglik, CEO of Verastem stated that “the third quarter of 2020 was marked most notably by the sale of the Copiktra franchise to Secure Bio in a deal valued at up to $311 million, plus royalties. This strategic transaction allows us to focus our resources and efforts on advancing the VS-6766 and defactinib combination program.”
What To Watch With VSTM Stock
Looking ahead to next week, the company presents at the HC Wainwright BioConnect beginning on Monday. While HC currently has a “Buy” rating on the stock, it isn’t the only one. Cantor Fitzgerald not only agreed with this rating, it also placed a $6 price target on the stock. This places Cantor’s VSTM stock forecast price 137% higher than Friday’s closing levels.
Best Penny Stocks To Hold [Raymond James]: Transenterix Inc.
While it isn’t officially “Buy-rated”, Transenterix Inc. was one of the biggest gainers of the day on January 8th. It also saw a nice continuation into post-market trading. The majority of this positive sentiment comes from an announcement regarding its business that was released on Wednesday. The announcement stated that the company ended the year with around $17.5 million in cash on hand and full-year revenue of around $3 million.
Anthony Fernando, CEO of Transenterix, stated that “looking at 2020 as a whole, we are pleased with the momentum generated across our organization during these challenging times. We continue to expand our global footprint with new system installations and procedure volumes rebounded in the back half of the year across each of our geographies.”
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For some context, Transenterix is a biotech product manufacturer, producing tools needed in digital laparoscopy. In addition, the company offers robotic tools that can be used in a wide range of surgical applications. These products have seen increased popularity in the past few years as surgical technology has continued to develop. As a cutting edge company, Transenterix needs to make sure that it is ahead of the curve for the foreseeable future.
What To Watch With TRXC Stock
Keep in mind that the company has several milestones in 2021 that the market should keep in mind during the first half of the year. Transenterix expects to achieve regulatory milestones including receive of its CE Mark approval for the ISU in Europe, an FDA 510(k) clearance for General Surgery indication expansion, file for FDA 510(k) clearance for articulating instruments and file for FDA 510(k) clearance for the next generation ISU features.
