Are These Biotech Penny Stocks Worth Watching in 2021?
Biotech penny stocks are without a doubt, some of the biggest winners of the year. While this began as a result of the pandemic, Covid has helped to push biotech companies regardless of their work relating to it.
So on one hand, we do have penny stocks that are producing a treatment or product for Covid, and on the other hand, we have ones that are not. But, as Covid cases drop substantially in the U.S. and many countries globally, investors are turning their focus towards new and innovative biotech stocks. One thing to keep in mind is that biotech moves fast. Very fast.
Because of the nature of the industry, stocks under $5 in biotech tend to be some of the most volatile securities out there. Prices can change within the span of a few hours or even a few minutes.[Read More] 7 Penny Stocks to Watch With Crypto News Sparking a Market Dip
And, these changes can occur due to almost anything. If a new compound is approved by the FDA, prices shift, if an announcement is made, prices shift, and so on. While this should not serve to inspire fear, it should help to show that there is a lot of opportunity with biotech.
Because of this, keeping a close watch on your portfolio is not only smart but highly necessary. And, investors should know the volatility of the company they plan to invest in, before pulling the trigger. With all of this in mind, here are three hot biotech penny stocks to watch right now.
3 Biotech Penny Stocks to Watch in 2021
- Iterum Therapeutics PLC. (NASDAQ: ITRM)
- T2 Biosystems Inc. (NASDAQ: TTOO)
- Evofem Biosciences Inc. (NASDAQ: EVFM)
Iterum Therapeutics PLC. (NASDAQ: ITRM)
Iterum Therapeutics PLC. is a penny stock we’ve covered numerous times in the past few months. And today, shares of ITRM stock shot up by around 18% by EOD. This gain comes on the back of a late-cycle meeting with the FDA it announced yesterday, regarding its compound sulopenem etzadroxil/probenecid. Currently, sulopenem is under investigation for its potential to treat uncomplicated UTIs in patients.
Additionally, the company announced that the FDA would not require a committee review of the regulatory filing for this compound in treating UTIs. This committee review was originally scheduled for June of this year, however, after the meeting yesterday, the FDA decided that it was not necessary for a further review.
So, this is one step closer to gaining approval from the Food and Drug Administration in a more timely manner. Now, investors are waiting on a decision as to whether it will be approved by late July of 2021.
For some context, Iterum is a clinical stage pharmaceutical company working on various anti-infectives to treat drug-resistant pathogenic infections. Sulopenem is its closest compound to being approved, which is currently in Phase 3 of trials.
Because of this, many investors are betting on this compound being approved, which after today, seems like it could be more likely. While ITRM stock is highly volatile, it could be worth adding to your penny stocks watchlist.
T2 Biosystems Inc. (NASDAQ: TTOO)
Shares of TTOO stock bounced by around 12% today, adding it to the list of big biotech gainers on Friday. While no news was announced for the company during the trading day, it does have an upcoming shareholder meeting on June 25th.
This meeting is getting investors excited, and T2 continues to remind those with TTOO stock holdings to vote at it. If you’re wondering what T2 Biosystems does, it is a leader in devices that can detect sepsis-causing pathogens.
In its pipeline of products are the T2Dx Instrument, T2Candida Panel, the T2Bacteria Panel, and several others. Also of note is its T2SARS-CoV-2 Panel. Additionally, T2 is working on producing several new panels for a variety of both common and rare infectious diseases. All of this means that the company is working hard to broaden the market for its products.[Read More] 5 Penny Stocks on Reddit For Your June 2021 Watchlist
In its Q1 2021 results, TTOO posted a quarterly loss of $0.07 per share. This was to be expected however, it is much less than its loss of $0.22 in the same period last year. Additionally, T2 managed to beat estimates, posting revenue of almost $7 million. This is substantially more than the $2.55 million it posted in the same quarter a year prior.
Because of this, many investors believe that T2 Biosystems could be on a positive trajectory. And with so much in its pipeline, that remains the main goal of the company. However, investors should continue to watch TTOO to see how quickly and how much it can commercialize its products. This is an extremely important factor when considering a biotech penny stock to watch. So, with all of this in mind, will TTOO be on your watchlist?
Evofem Biosciences Inc. (NASDAQ: EVFM)
Up around 6.5% by EOD is EVFM stock. While no news came out of EVFM today, this rise could be attributed to larger gains made all across the biotech industry. So to better understand Evofem Biosciences, we have to look closely at what it does.
Evofem is a commercial-stage biopharmaceutical company working on innovative products for women’s health needs. This includes reproductive health and sexual health products.
Its first FDA-approved commercial product known as Phexxi was launched back in September of last year. And now, it is working on getting its new product candidate, EVO100, approved for use in preventing urogenital Chlamydia trachomatis and Neisseria gonorrhoeae in women. It is currently in a Phase 3 clinical trial known as EVOGUARD.
Last week, Evofem announced the closing of a $50 million public offering. This offering, worth 50 million shares of common stock, will be used for the commercialization of Phexxi as well as for trials with EVOGUARD. And, investors always like to see a well-funded biotech company. So, with the proper capital needs to fund its current pipeline and approved compound, Evofem Biosciences could be worth watching as we move forward.
Biotech Penny Stocks Continue to Heat Up
As far as penny stocks go, biotech companies have seen incredible growth in the past year or so. While this started as a result of the pandemic increasing focus on them, it has now shined a large light on the entire biotech industry.
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But, with Covid cases decreasing, it’s important to find a biotech company on the list of penny stocks that may have value outside of the pandemic-related economy. With biotech penny stocks continuing to heat up, which companies will you add to your watchlist?