4 Biotech Penny Stocks to Watch Right Now
Over the course of the past year, investors have focused heavily on biotech penny stocks. Now, this makes sense given the pandemic and the massive capital investments into biotech as a result. But now, a year after the pandemic began, investors are flooding into all types of biotech companies. The pandemic has highlighted just how much innovation is going on across the biotech industry. And because of this, many investors believe that certain companies could be worth holding in the short or long term.
Additionally, the $1.9 trillion stimulus package would offer billions in capital to companies currently working on coronavirus-related treatments or vaccines. Now one thing to keep in mind is that the entirety of the stock market has become incredibly volatile during this time. This is due to a combination of pandemic-related uncertainty and the influx of retail investors. Because retail investors tend to be more speculative and sentimental, prices can change very quickly. For this reason, investors need to stay as up-to-date as they can with the news. This means that investors can avoid unexpected price changes and fast-moving volatility.
Right now, we’ve seen a surge in the market thanks to growth in the group of retail investors day trading. Among this group, the “Robinhood traders” take up a large majority. The application has made it very easy to gain access to the market. The downside is that not all penny stocks are accessible on the platform. This list includes penny stocks on Robinhood that have experienced strength as biotech names have gotten a boost recently. Will they be on the buy or avoid side of your list?
Penny Stocks To Buy On Robinhood For Under $5
- Check-Cap Ltd. (NASDAQ: CHEK)
- Polarityte Inc. (NASDAQ: PTE)
- Auris Medical Holding Ltd. (NASDAQ: EARS)
- Phio Pharmaceuticals Corp. (NASDAQ: PHIO)
Check Cap Ltd.
Check-Cap is a clinical-stage biotech company working on producing a wide range of diagnostic technologies. This includes products that can diagnose colorectal cancer with its C-Scan technology. This technology could be a breakthrough in the cancer screening industry, as it allows for a preparation-free experience. For some context, C-Scan is a pill that uses X-ray and integrated positioning to produce a 3D scan of the body part in question. If this sounds like sci-fi technology, that’s because it is incredibly innovative. The company is currently working on the commercialization of C-Scan and deducing how many areas of the diagnostic industry it can use.
In a letter from CEO Alex Ovadia announced a few weeks ago, Ovadia stated that “we continue preparations towards initiation of the U.S. pivotal study of C-Scan during 2021. In November 2020, we achieved a major milestone, including finalizing of our proposed pivotal design and submission of our investigational device exemption to the U.S. FDA and we are in the process of responding to comments that we received from the FDA.”
Also, the company is currently working on building out a manufacturing platform for C-Scan. While the coronavirus has slowed this process, the company is still working hard to commercialize this product. In January of this year, Check-Cap announced that it received roughly $750,000 in a grant from the Israel Innovation Authority. With these funds, the company should have an easier time building out a manufacturing platform for C-Scan. With all of this in mind, is CHEK on your list of penny stocks to watch?
PTE stock is one that we’ve discussed numerous times in the past few months. The company offers a large range of products, including regenerative tissue tools, biomaterials, biomedical engineering solutions, and more. While many companies are working on advanced material sciences to replace skin tissue, Polarityte utilizes the patient’s own tissues. It takes a small sample, where it can then grow a piece of healthy autologous tissue.
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These methods are quite groundbreaking and can lead to faster and more efficient recovery. The company’s flagship product, SkinTE, allows for the repair, reconstruction, and replacement of existing skin tissue. Only a week ago or so, the company provided a corporate update for investors. In this update, the company stated that it is working heavily on submitting an IND or investigative new drug application for SkinTE.
Additionally, the company announced that it had fully enrolled 100 subjects in a trial to develop SkinTE to treat diabetic foot ulcers. As of the most recent announcement, Polarityte holds roughly $23.19 million in cash and cash equivalents as of the end of its last quarter. The company also embarked on a fundraising method that raised roughly $25.67 million in gross proceeds. The company states that it is well funded to further work on several milestones it has planned. Obviously, we have to take into account that these trials take quite a long time. But, given that funding is the most necessary component for completion, Polarityte could be a company to keep tabs on during the regulatory submission process.
Auris Medical Holding Ltd.
Another popular biotech penny stock is Auris Medical Holding Ltd. Different from the others on this list, Auris works as a clinical-stage developer of novel therapeutics. These therapeutics are used in the treatment of neurology, rhinology, allergy, and CNS disorders. Right now, the company has a large range of products in its pipeline. This includes AM-125, AM-301, AM-111, and more. A few weeks ago, the company announced the initiation of a clinical investigation into AM-301 to treat allergic rhinitis.
The study will consist of 36 patients dosed with either AM-301 or a placebo. Thomas Meyer, CEO of Auris, stated that “we are very excited to initiate the clinical investigation of AM-301 for its intended use of alleviating allergic symptoms triggered by inhalation of airborne allergens. Allergic rhinitis from exposure to allergens..is affecting 7.8% of the adult U.S. population, and 9% of children can have a major impact on well-being and quality of life. Despite its high prevalence, there is still no cure for it.”
This is something that we often see in the biotech industry. If there are unmet needs in an area of medicine, companies like Auris are quick to hop on board to attempt to find a treatment or cure. Because this ailment affects so much of the population, could Auris have a good chance of commercializing its product if the studies go according to plan? Results from the allergen challenge chamber study are expected in Q2 2021.
Phio Pharmaceuticals Corp.
Another pharmaceutical company that is on our radar is Phio Pharmaceuticals Corp. the company is working on producing several different next-gen immune-oncology products. These products utilize the company’s self-delivering RNAi therapeutic platform known as Intasyl. With this platform, the company aims to utilize the body’s own immune system to suppress tumors with various immune cells. This treatment is very new and something that is still in the various stages of testing and approval. A week or so ago, the company announced a registered direct offering of roughly $7.7 million worth of common stock.
The deal consists of around 2.246 million shares sold for $3.42 per share. With this, the company states that it will have the necessary capital for general corporate purposes and the various milestones it wishes to accomplish. Wednesday afternoon, the company announced that this was formally closed, earmarking proceeds to develop its immuno-oncology programs, R&D, and corporate purposes. This news comes just a day after Phio was set to be issued a U.S. patent titled “IMMUNOTHERAPY OF CANCER.”