Are These Biotech Penny Stocks On Your Watch List?
I know it isn’t March yet but with only a few days left, it might be time to put together your list of penny stocks to watch. The markets declined strongly on Tuesday with broader sectors like tech dipping to some of the lowest levels in weeks. While this may have been the case for larger tech stocks, smaller biotech stocks have come into focus. Many have experienced a sharp rebound during Tuesday’s session.
We might not be out of the woods yet. But comments from Jerome Powell’s testimony gave clues to the economic outlook and potential recovery strategy.
“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain…Although there has been much progress in the labor market since the spring, millions of Americans remain out of work,” Powell said in prepared remarks delivered to the Senate Banking Committee. “The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.”
The broader market appeared unfazed by the commentary. At least, for now, Powell’s commentary didn’t lead to another leg lower on Tuesday. As more data comes out, we’re sure to see how that translates into different sectors. For this article, we’re going to look at biotech stocks, sure. But, as you’ll see, this isn’t your typical line-up of “the usual suspects,” & some are on the fringes of brand new market trends.
Biotech Penny Stocks To Watch For March 2021
- Havn Life Sciences (OTC: HAVLF)
- Seelos Therapeutics (NASDAQ: SEEL)
- Mind Medicine Inc. (OTC: MMEDF)
- Zomedica Corp. (NYSE: ZOM)
- Senestech Inc. (NASDAQ: SNES)
Psychedelic & Mushroom Penny Stocks To Watch
One of the things I discussed above was that there are companies on this list in a newer niche in biotech: psychedelics. Call it magic mushrooms, hallucinogens, shroom stocks, etc. The science behind this focuses on the neural benefits of psychedelic-assisted therapy.
As we’ve seen with other “early fringe industries,” like cannabis, psychedelics are beginning to gain more appeal. A lot of that early appeal aside from the novel method was the attraction from big investors. Everyone from Peter Thiel to Kevin O’Leary, and a slew of early investors in the original pot stock boom flocked to this industry. Among them was Vic Neufeld who was the original captain at the helm of cannabis trailblazer, Aphria (NASDAQ: APHA).
Havn Life Sciences
Neufeld is now sitting on the board of Havn Life Sciences. The company has focused on advancing its psychedelic platform and effectively standardize extraction methods for psychoactive compounds. Havn has also focused on a non-psychoactive commercial portfolio of natural health products using different mushrooms and fungus types.
This month, the company announced a strategic partnership with neuroscience and technology leader, HealthTech Connex Inc. With the approval of Havn’s Licensed Dealer application, Havn Labs would become a preferred psychedelic supply partner for the future clinical trials launched by HealthTech Connex’s Centre for Neurology Studies. The British Columbia-based organization uses technology, clinics, and clinical trials to translate neuroscience innovations into improved care for various neurological conditions. This move also allows Havn’s own researchers to take advantage of HealthTech Connex’s neuroscientific and technological expertise.
One of the other reasons that the market has been monitoring HAVLF aside from its leadership and progress within the industry is its inclusion in the first psychedelic ETF. The Horizons Psychedelic Stock Index ETF (PSYK) began trading this year and including Havn in its inaugural holdings basket.
This week, Havn’s shares became DTC eligible as well. What does this mean? Essentially, it expands exposure for the stock itself across a larger portion of the investment community. So with broader access and clear attention from major funds like Horizons, will HAVLF be on your list of penny stocks to watch in March?
Shares of Seelos are also included in the PSYK ETF. In fact, among all holdings in the ETF, it weighs SEEL stock the heaviest. As of February 19th, 11.21% of PSYK’s holdings were in SEEL. Given this, it may be important to see why such a fund would have so much weighting in the company.
Only recently has Seelos been known as the psychedelic stock that PSYK has made it out to be. We’ve reported on the company many times in the past. Its main focus was on central nervous system disorders, in general. How Seelos gets wrapped into the psychedelic realm is with its SLS-002 treatment. This is Seelos’ intranasal racemic ketamine for treating acute suicidal ideation and behavior in major depressive disorder patients.
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Last month, the company announced its first patients’ dosing in the study of the treatment. In light of further advancements of the treatment, last week, Seelos amended its agreement with Vyera Pharmaceuticals AG to develop SLS-002 to repurchase a significant portion of the royalties payable on any future net sales of SLS-002. Raj Mehra, Ph.D., Chairman, and CEO of Seelos, explained, “The current study of SLS-002 is dosing patients with major depressive disorder who are at imminent risk of suicide. We plan to further evaluate ketamine in front-line major depression and other related indications.”
Mind Medicine Inc.
Rounding out the first portion of this list of penny stocks is Mind Medicine. This is a third psychedelic stock on the list and another one that’s included in PSYK. Like most of the market, MMEDF shares dropped hard early on but have managed to rebound during the Tuesday session. One of the interesting parts about Mind Med is its use of technology in psychedelic-assisted therapy.
Last year the company launched a digital division, Albert, utilizing virtual reality and psychedelic care. MindMed is also conducting trials for things like LSD. In an industry-first, the company recently began a clinical trial measuring and evaluating MDMA and LSD’s combination in the human body.
This month, the company released an update announcing the proposed acquisition of a digital medicine & health company, HealthMode. The startup uses artificial intelligence-enabled digital measurement to increase precision and speed of clinical research.
Veterinary Biotech Stocks To Watch
While this isn’t a psychedelic approach to medicine, it is different from your typical cancer stock or pain management company. Veterinary medicine has become a relatively larger focus for some traders over the last few months. It has even gained some attention from notable names in entertainment.
One of these notable names was Carole Baskin from Tiger King. While it came to light that her “support” was simply a paid gig through Cameo, the market took it as a sign of bullishness earlier this year. Shares of ZOM stock popped on the apparent endorsement. Even after the video of Baskin was revealed to have been a paid gig, traders remained bullish on the stock. Heading into March, ZOM could be one of the more popular names to note.
That’s because the long-awaited commercialization timeline could finally be coming to a major milestone. For months, Zomedica had given numerous updates on the launch of its TRUFORMA veterinary diagnostic device. The final period was by the end of March. Considering we’re about a month away, ZOM could be one of the veterinary biotech penny stocks to watch.
Ahead of this proposed commercial launch, Zomedica was also able to raise roughly $200 million after a full exercise of underwriter options. These proceeds were earmarked for platform development, marketing milestone payments, and potential strategic acquisitions if presented. Heading into March, these are all things to keep in mind.
Senestech is another animal-related company. It focuses on animal pests. Similar to Zomedica, Senestech also raised several million dollars to put to work. Its flagship product, ContraPest®, is a technology targeting the reproductive capabilities of both sexes in rat populations, inducing egg loss in female rats and impairing sperm development in males. The product is designed, formulated, and dispensed to be a low hazard for handlers and non-target species such as wildlife, livestock, and pets.
Senestech has also attracted the likes of some institutional interest this month. If you were reading our articles on Monday, we discussed companies that had seen a build-up of insider and/or institutional interest. In Senestech’s case, Intracoastal Capital reported a 9.4% passive stake in the company in February.