Are These Biotech Penny Stocks On Your Watch List Right Now?
The tech wreck continues this week, but that hasn’t put a pause on other sectors. Furthermore, the market’s appetite for risk appears to be growing stronger once again. Earlier today, we saw the list of Reddit penny stocks begin to move once again. Some of those names ended up reaching levels not seen since the January breakout.
Another point of focus is on small-cap stocks, in general. If you look at the benchmark ETFs like SPY, QQQ, and IWM, you should see what I’m talking about. By midday, the Russell 2000 Small-Cap Index ETF (NYSE: IWM) was up nearly 2%. Meanwhile, the S&P 500 ETF (NYSE: SPY) hadn’t breached the 1% level, and the Nasdaq ETF (NASDAQ: QQQ) was actually negative.
Reddit & Robinhood Traders Focus On Small-Cap Stocks
Some of the market’s top-performing sectors included financials, industrials, consumer staples, and biotech. The reopening trade has taken a good amount of attention in light of the CDC’s latest guidelines. The organization said that those fully immunized could begin gathering in small groups. This sent shares of companies in travel and entertainment surging early. This may have been due, in part, to the latest trend retail traders have started. Frequently labeled Robinhood traders for the simple fact that many use the mobile app, millions of retail traders have sought out market trends.
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Furthermore, a bigger focus appears to be on emerging companies, as noted by the momentum in the IWM. Additionally, biotech penny stocks, in general, have gained interest in light of potential industry momentum stemming from upcoming conferences and flurry of news headlines hitting the stock market today. In light of this, here’s a list of biotech penny stocks to watch and small-cap stocks jump on Monday.
Robinhood Penny Stocks To Watch
- GT Biopharma Inc. (NASDAQ: GTBP)
- Aeterna Zentaris Inc. (NASDAQ: AEZS)
- Chembio Diagnostics (NASDAQ: CEMI)
- Motus GI Holdings (NASDAQ: MOTS)
- Jaguar Health Inc. (NASDAQ: JAGX)
Penny Stocks On Robinhood To Watch #1: GT Biopharma Inc.
GT Biopharma has been one of the biotech penny stocks to watch on our list for months. However, if you’ve paid attention to its developments, you see something a bit different. That’s because it now trades on the Nasdaq exchange. A recent uplisting from the OTC put GTBP stock in front of a new crowd, including one on Robinhood and Webull, where OTC penny stocks are restricted from access. Furthermore, the company was able to raise over $23 million via the Nasdaq public offering.
This week, the immunotherapy technology company announced new data from the preclinical study for its ROR1 TriKE product candidate. The target of the treatment is for those who have prostate cancer. “We are pleased to report our ROR1 TriKE™ has passed this important preclinical milestone and demonstrated effectiveness in promoting redirected and target-specific killing by NK cells. We plan to evaluate the ROR1 TriKE™ in additional IND-enabling preclinical studies to transition to a Phase I/II clinical trial,” said Anthony J. Cataldo, GT Biopharma’s Chairman and Chief Executive Officer.
GT Biopharma has been in the spotlight before this latest development for the ongoing progress in its clinical trials for GTB-3550 in treating relapsed/refractory acute myeloid leukemia and high-risk myelodysplastic syndrome. Earlier this year, GT Biopharma announced the 8th patient in the trial had begun treatment. The previous 7 patients have all demonstrated positive responses to different treatment levels ranging from 5 mcg/kg/day to 50 mcg/kg/day. With potentially new trials on the horizon to further expand its TriKE platform, will GTBP be on the list of Robinhood penny stocks to watch this month?
#2: Aeterna Zentaris Inc.
Shares of AEZS stock bounced back strongly on Monday. The biotech penny stock was in a steady downtrend for the last few weeks. Much of the sell-off came after Aeterna announced a bought deal to raise nearly $30 million in February. Needless to say, Monday saw an about-face for the small-cap biotech stock ahead of its upcoming presentation at the H.C. Wainwright Global Life Sciences Conference this week.
One of the pressure points for traders concerning AEZS has been the company’s potential COVID-19 vaccine. Last month Aeterna announced that it entered into an exclusive option agreement to evaluate a preclinical potential COVID-19 vaccine developed at the Julius-Maximilians-University Wuerzburg. According to the company, this vaccine technology uses a typhoid fever vaccine as a carrier strain. Aeterna anticipates that it has the potential to be an orally active COVID-19 (SARS-CoV-2) live-attenuated bacterial vaccine and expects to decide on licensing by mid-2021.
The company is also developing it for the diagnosis of childhood-onset growth hormone deficiency. It’s the latter which Novo Nordisk is currently marketing macimorelin in the U.S., under the tradename Macrilen. As it relates to that upsized offering, Aeterna intends to use the net proceeds from the offering to investigate further therapeutic uses of Macrilen™ in addition to expanding commercialization efforts. So with multiple catalysts leading up to this week and the upcoming presentations at the conference, AEZS could be on the list of penny stocks to watch for some.
Penny Stocks On Robinhood To Watch #3: Chembio Diagnostics
It’s been a while since Chembio has been on our list of penny stocks. Last year, we saw the biotech explode from under $2.50 to over $15.89 during the early months of the pandemic. One of the driving forces behind that move was the company’s rapid test development. At the time, Chembio reported that it received a $4 million purchase order for the production of DPP COVID-19 IgM/lgG system in Brazil. This was the company’s rapid test platform to help in the diagnosis of “SARS-CoV-2 infections.
Fast-forward a year and shares have come back down, below the $5 level. Will that remain the case this month? Only time will tell but what we can see is that Chembio continues reaching new milestones in 2021. This month, there’s likely going to be a focus on fundamentals. First, Chembio appointed a new Board member, David Bespalko. He has experience in specialty diagnostics.
His track record span several leading biotech organizations, including Thermo Fisher and Baxter Healthcare. In addition to this, anyone with CEMI stock on their list right now needs to keep March 11th in mind. This is when the company is set to report its Q4 and full-year financial results. Hopefully, this will give a glimpse into the company’s performance overall in 2020. However, it could pose a risky situation as well. The reason being is that if Chembio falls short, it could breed volatility for CEMI stock.
#4: Motus GI Holdings
Motus GI Holdings also bounced back strong on Monday following weeks of selling. In mid-February, shares reached highs of $2.74 following momentum from developments earlier in the year. The company announced that it received approval from the EU notification body, DEKRA, for enhancements to its Pure-Vu GEN2 colonoscopy system. It also later received a U.S. patent titled ‘Apparatus and method for coupling between colonoscope and add-on tubes‘ in February.
This week could be a busy one for the company. Motus is set to deliver presentations at the H.C. Wainwright Global Life Sciences Conference on Tuesday and the Centers for Medicare and Medicaid Services ICD-10 Reimbursement Cod Committee Meeting. At the latter, Motus will present its request for an ICD-10 code for the Pure-Vu GEN2 system. This is part of a larger method for obtaining reimbursement for certain procedures that use the system to clean a poorly prepared colon during a colonoscopy.
With multiple events happening this week, it will be interesting to see the market’s reaction. Looking ahead, Motus also has earnings and another presentation at the Oppenheimer Annual Healthcare Conference next week.
#5: Jaguar Health Inc.
Rounding out the list and following a similar trend as other biotech penny stocks mentioned is Jaguar Health. Shares of the company’s stock have been sliding ever since JAGX reached highs of $4.47 in January. Aside from general market conditions, one of the negative catalysts playing a role was announcing a multi-million dollar financing at a discount to market.
The company was also wrapped up in the Robinhood confusion where numerous stocks had trading restrictions placed on them. In any event, this week saw a turnaround in the recent downtrend, with JAGX shares jumping back above $2.20 for the first time this month.
Market momentum has continued this week after news on Friday of a binding term sheet for $5 million in non-dilutive financing was reported. Jaguar’s transaction involves the sale of royalty rights related to the future potential of its crofelemer COVID-related indication revenue stream.
“The COVID-related indication is the initial indication to be pursued by Napo EU, the exclusive target of the planned Dragon special purpose acquisition company (the “Dragon SPAC”), which is anticipated to be listed on AIM Italia. We expect to issue additional updates regarding Napo EU next week,” said Lisa Conte, Jaguar’s founder, president, and CEO. With numerous angles to focus on, JAGX seems to have gained a bit more attention early this week. Will that continue into the remainder of March?