Biotech Penny Stocks For Your January Watch List
Last week was a wild one for penny stocks and blue-chip stocks alike. While we saw more action in smaller companies, both the Russell 2000 Small-Cap ETF (IWM) and the S&P 500 ETF (SPY) pulled back. One of the benchmark ETFs that actually reached new 2021 and all-time highs was the Nasdaq Biotech ETF (IBB). For the first time, it reached $163.60 and finished the week just shy of the record close it saw on Thursday afternoon. Needless to say, it appears that biotech stocks are hot right now.
This weekend, you also likely read plenty of headlines talking about how active penny stocks are as well. Thanks to the flood of new retail traders, these cheaper stocks are gaining in popularity. During times like these, traders and investors need to look at both broader trends and more specific trends. Obviously, things like electric vehicles and alternative energy stocks have been hot-ticket items among traders. But thanks to a mix of COVID headlines and the generally upbeat sentiment surrounding health and pharma, biotech stocks remain some of the most active in the stock market today.
While this trend isn’t new (biotech has long been an active sector), it is worth noting the recent milestone. With the IBB reaching new record levels on Friday, stocks within this sector could be prime candidates for your watch list this week. Keeping this in mind, we’ve got a list of penny stocks that saw strong momentum late last week. Will that continue during the short week ahead?
Biotech Penny Stocks To Watch
- Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS)
- Venus Concept Inc. (NASDAQ: VERO)
- Ocugen, Inc. (NASDAQ: OCGN)
Sunesis Pharmaceuticals Inc.
Shares of Sunesis Pharma have been on the rise since the middle of last quarter. In fact, since November 2nd, this biotech penny stock has rallied from $1.19 to highs of $2.95 on Friday. One of the recent points of interest has focused on the company’s recent buyout deal. Viracta Therapeutics Inc. announced the all-stock deal late last year. The company is a precision oncology company targeting virus-associated malignancies.
The new company will focus on building upon Viracta’s clinical-stage, precision oncology pipeline. This will include Viracta’s lead program for the treatment of Epstein-Barr virus-positive relapsed/refractory lymphomas. This deal comes at a time when cancer stocks continue captivating interest in the market. One of the topics we’ve discussed in the past is how this new army of traders was introduced to biotech through the early surge in virus stocks.
Now that biotech, in general, has gained momentum, companies like Sunesis have started to see the benefits. Last week the prospectus for the Viracta merger was filed. It shows that a special meeting will be held on February 22 to vote on the deal. With that upcoming milestone, it will be interesting to see the market’s reaction in the meantime. Also, keep in mind that Viracta plans to initiate a registration trial for the treatment of EBV+ lymphoma in the first half of this year. With so many things to take into consideration as potential milestones & catalysts, will SNSS be on your list of penny stocks to watch heading into February?
Venus Concept Inc.
Another one of the biotech penny stocks gaining ground recently is Venus Concept. The company primarily focuses on minimally invasive and non-invasive medical aesthetic and hair restoration technologies. It has a reach in over 60 countries and 25 direct markets. Venus recently presented at 2 industry conferences this month, which seems to have helped give the stock a boost this year. Furthermore, the company reported preliminary unaudited Q4 revenue results last week and introduced revenue guidance expectations for 2021. This seems to have become the latest catalyst sparking interest in the company.
While quarterly results year-over-year came in lower, the outlook for 2021 was strong. Venus explained that “Assuming no significant and persistent resurgence of COVID-19… total revenue for the twelve months ending December 31, 2021, is expected to be in the range of $98.0 million to $103.0 million.”
This would be an increase of roughly 27% to 31% year-over-year, compared to the preliminary total GAAP. With this strong outlook and recent capital raise, VERO could be one of the biotech penny stocks to watch during the year
Finally, Ocugen, Inc. has been one of the more frequently discussed biotech stocks we’ve mentioned. One of the main reasons for this is that Ocugen is currently working on a COVID vaccine. As many have already come to find, vaccine stocks are still very much in the spotlight in 2021.
Specifically for Ocugen, the company’s partner, Bharat Biotech has gained a lot of attention this year. It received emergency use authorization for the COVID-19 drug, Covaxin in India. Bharat will have 10 million doses of the vaccine available in February. Furthermore, the company said that around 200 million to 500 million doses of the vaccine will be the annual capacity to come online this year.
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Looking ahead at this week, Ocugen could remain a focus. The company is set to present at the Noble Capital Small and Microcap Investor conference. Dr. Shankar Musunuri, Chairman, CEO, and Co-Founder will present virtually providing an update on the development of Ocugen’s COVAXIN™ for the US market. He will also share Ocugen’s recent accomplishments and its plans to initiate four Phase 1/2 clinical trials within 1-2 years.
Should Biotech Penny Stocks Be On Your List In 2021?
When it comes to penny stocks, in general, volatility & speculation are two obvious catalysts. However, throw in an industry like biotechnology, and those two things can quickly compound. If you’re planning on looking for biotech penny stocks to buy, keep that in mind. These novel advancements in treatment and different types of therapies are clearly an attraction. But as we’ve seen, one slight miss on an efficacy study or a trial that doesn’t meet its endpoints can trigger a big hit to certain stocks. Understanding these risks is important especially when it comes to an industry light this.