Will These 5 Biotech Penny Stocks Rally Under a New President?
As the biotech industry continues its surge, many investors wonder which biotech penny stocks could be worth watching right now. This is a tough question to answer in only a few sentences, as there are plenty of implications regarding the latest trends. Let’s start by breaking down some of incoming-President Biden’s near-term goals.
For one, Biden intends to work on ending Covid. This involves massive subsidies, large infusions of capital into the biotech industry, and the hopeful reopening of the economy. With a stimulus package working its way through the government, the market as a whole seems bullish about the future.
Next, you’ve got to consider the overall trend we see in things like cancer stocks & pain management. Millions of new traders were introduced to biotech via COVID stocks. But have now come to find massive opportunities within the industry itself. In the past six months, biotech penny stocks have been the focus of many investors.
In that time, we’ve seen many stocks shoot up in value. Whether or not this bullish sentiment will stay in the long term remains to be seen. But with all of this in mind, will these five biotech penny stocks see a biotech boom?
Biotech Penny Stocks to Watch
- Checkpoint Therapeutics Inc. (NASDAQ: CKPT)
- Lipocine Inc. (NASDAQ: LPCN)
- OncoCyte Corp. (NYSEAMERICAN: OCX)
- Celsion Corp. (NASDAQ: CLSN)
- electroCore Inc. (NASDAQ: ECOR)
Checkpoint Therapeutics Inc.
Checkpoint Therapeutics is one of the companies that has been on the presentation circuit this month. Over the last week, the company presented at both the LifeSci Partners event and the H.C. Wainwright BioConnect Conference. Furthermore, next week the company will present at the B. Riley Securities’ Oncology Investor Conference. These conferences are a big deal for biotech companies, as they allow investors to gain insight into what they are doing. With this, investors should stay up to date on any announcements made by Checkpoint at the conference. But, for some more context on what Checkpoint does, let’s take a look at its business model.
Checkpoint develops, acquires, and commercializes non-chemotherapy, combination treatments. Its licensed portfolio of antibodies includes targeting programmed cell death-ligand 1 (PD-L1), glucocorticoid-induced TNFR related protein, and carbonic anhydrase IX. It has an ongoing Phase 1 trial studying its cosibelimab treatment in patients with advanced cancers.
Checkpoint explained that cosibelimab “demonstrated a 51.4% objective response rate and 13.5% complete response rate, which is nearly double the complete response rate observed at the time of previous analysis.” This is exciting news and something that investors should take note of. While these trials can take a long time to see through, in the meantime, is CKPT a penny stock to watch?
One of the larger gainers of the day on January 20th is Lipocine Inc. During trading, and into after-hours, shares of LPCN stock shot up by around 26%, ending the day at $2.26 per share. In the past month, shares are up by over 45%, and since January 2020, by over 270%. What’s interesting is that LPCN was positively affected by the onslaught of the pandemic. Lipocine has a focus on treating metabolic and endocrine disorders. It has a large portfolio of drugs in its pipeline that are currently in the various trial stages. This includes its lead product, which is known as TLANDO (oral testosterone therapy).
TLANDO is currently in a Phase 2B trial to see its efficacy and safety in treating NASH disorders. Additionally, the company is also working on its drugs known as LPCN 1107, LPCN 1144, and more. This information shows that Lipocine has a large number of candidates working toward various approvals. Last week, the company announced that the Phase II study of its compound LPCN 1144 showed statistical significance in its ability to treat men with NASH. In combination with the recent tentative approval of TLANDO, this news has put Lipocine in a bright spotlight this month.
Another big gainer of the day, pushing up by around 30%, is OncoCyte Corp. In the past month, shares of ONX stock are up by over 63% to $4.12 as of January 20th. The big gain on Wednesday comes as the company announced a $25 million registered offering. OncoCyte states that its work on cancer-related compounds is critical to the furthering of treatment.
The offering consists of $25 million worth of common shares, sold at around $3.42 per share. Additionally, the deal is being funded heavily by Pura Vida Investments LLC. Ron Andrews, CEO of OncoCyte, stated that “we are honored to have the continued support and vote of confidence from Pure Vida, a firm whose focus is on innovative and disruptive healthcare companies, and Broadwood Partners, L.P., our largest and long-term shareholder, for our expanding comprehensive portfolio of tests.”
Andrews further states that with this funding, the company will be able to improve its balance sheet, aiding in the launch of several new products in the coming future. This includes the launch of both DetermalO and DetermaTX, which should occur later in 2021. While this is exciting news, investors should watch out for any share dilution that occurs. Obviously, this could be more pertinent in the long term, but it is definitely something to note. With this, is OCX a penny stock to watch?
The biggest gainer that we’re covering in this article from January 20th is CLSN. During trading and into after-hours, shares of CLSN stock rocketed up by almost 90%. Interestingly enough, no news came out on Wednesday that would indicate a reason for this big bullish gain. For this reason, let’s take a look at some previous events that may have lead up to this. First, as an oncology drug company focused on DNA and RNA-based therapies, Celsion has received a lot of attention.
Although Celsion is not producing any drug to fight Covid-19, its work on both ovarian and brain cancers is exciting. The company has several drugs in its pipeline, including its flagship substance known as GEN-1. This DNA-based compound treats cancers in localized settings. One thing to note is that no major news has come from CLSN in the past few months.
But something to take a look at is the company’s recent filings. This week an 8-K was put out terminating the Purchase Agreement, dated September 8, 2020, with Lincoln Park Capital. Considering that the company has no further obligations under the 2020 Purchase Agreement, traders seem to have become more optimistic this week.
The medical technology company electroCore Inc. On January 20th, shares of ECOR stock shot up by a solid 32%, ending the day at $2.55 per share. Since November, shares are up by over 60%, which is a considerable gain. For some context, electroCore works as a commercial-stage medical device company focused on products for use in treating acute pain. This includes treatments for those suffering from migraines and episodic cluster headaches. Within its pipeline is its lead product candidate known as gammaCore Sapphire. This device can be used for many years and is rechargeable and reloadable. The device utilizes a type of therapy known as nVNS or non-invasive vagus nerve stimulation.
On Tuesday, January 20th, electroCore announced that it has established a Unique Level II HCPSC Code for its nVNS device. Dan Goldberger, CEO of electroCore states that “the establishment of a unique HCPSC code for non-invasive vagus nerve stimulation is a major step forward in obtaining additional coverage within the medical benefit pathway with the goal of providing patients with easier access to our therapy.”
With this exciting news in mind, electroCore could be one step closer to commercializing its nVNS product. Whether or not this makes it a penny stock to watch is up to you.
Should Biotech Penny Stocks Be On Your Watch List In 2021?
If you’re day trading, you’ve likely seen this trend emerge. Biotech stocks are on fire in January. In fact, looking at the broader markets, while the S&P & Nasdaq finally dig out of the dumps of last week, the biotech sector has continued to explode. For the 6th consecutive day, the Nasdaq Biotech ETF (IBB) made a new all-time high.