3 Biotech Penny Stocks for Your June Watchlist
Biotech penny stocks have without a doubt been some of the hottest small-caps of the year. When the pandemic first hit at the beginning of 2020, most biotech companies saw their shares shoot down dramatically alongside the entire market. However, as the race for a vaccine picked up, investors witnessed major momentum among a variety of biotech penny stocks.
While this began as an interest in only biotech companies focused on a Covid treatment, it quickly became an industry-wide obsession. And the result of this over a year later is an intense focus on the groundbreaking work that these companies are doing. To find the right biotech penny stock to buy, investors need to understand what to look for. The most important factor is what a company is doing and whether any of its compounds are in the commercialization stage.
Picking the Best Biotech Penny Stocks Right Now
With biotech, the main product is either a medicine or a medical tech product. Because of the stringent process needed for approval, it can take years before a product sees approval in the U.S. or internationally. So, finding a valuable biotech penny stock is all about understanding what is in its pipeline and what has made it through the pipeline.
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Additionally, many biotech companies license their products out as a way to bring in additional revenue. This can result in recurring, large sums of cash on balance sheets for decades to come. Once all of this has been considered, investors should take a look at the company’s financials.
While revenue is important, with biotech, investors tend to look at the cash balance. This indicates how long of a cash runway it has and whether it has the funds to finish any ongoing trials. With all of this in mind, let’s take a look at three biotech penny stocks for your June watchlist.
3 Biotech Penny Stocks to Watch in 2021
- Sesen Bio Inc. (NASDAQ: SESN)
- Enzolytics Inc. (OTC: ENZC)
- Zomedica Corp. (NYSE: ZOM)
1. Sesen Bio Inc. (NASDAQ: SESN)
Sesen Bio Inc. is a biotech penny stock that creates targeted fusion protein therapeutics for the treatment of cancer patients. It is involved in the process of design, engineering, development, and commercialization of these therapeutic products. Sesen’s lead candidate is Vicinium which is a targeted fusion protein in Phase III clinical trials to treat BCG-unresponsive non-muscle invasive bladder cancer.
It also has VB6-845d, a product candidate used to treat different anti-epithelial cell adhesion molecule solid tumors. While this may seem like a niche market, often a biotech company will become a major player in treating one or two areas of disease. And, later on, new uses can be discovered for existing compounds.
On June 2nd, Sesen Bio made headlines after announcing a large partnership. This announcement details a new global supply partnership with Qilu Pharmaceutical. In the deal, Sesen will receive a $2 million milestone payment upon completion of a technology transfer.
Qilu will be a part of the manufacturing network for the global commercial supply of Vicineum, Sesen’s lead candidate. This is big news as manufacturing is always a concern for biotech companies. Having this partnership should help with the major commercialization efforts surrounding Vicineum.
“Qilu Pharmaceutical has extensive biomanufacturing expertise and experience supplying products for commercial sale around the world, which positions them well to support the anticipated significant global demand for Vicineum.”
The CEO and President of Sesen, Dr. Thomas Cannell
The company will also support Qilu in the development and commercialization of Vicineum in China. Now SESN stock is up more than 5% on June 7th. Will this company make your penny stocks watchlist?
2. Enzolytics Inc. (OTC: ENZC)
Another biotech penny stock showing solid market performance right now is Enzolytics Inc. ENZC is a drug development biotech company with a focus on the commercialization of its proprietary proteins. These are in use mainly to treat infectious diseases. In its product pipeline are several clinically tested and patented anti-HIV therapeutics.
It also has a proprietary cell line that produces human monoclonal antibodies, targeting and killing HIV. While research on HIV is extensive, there is still a lot of work that needs to be done on treating and curing this ailment. For that reason, many investors continue to watch ENZC stock. Considering this, what has Enzolytics been up to recently?
In the past few months, Enzolytics has made a shift into the Covid-treatment industry. On June 7th, Enzolytics released its comprehensive therapeutics protocol for the production of monoclonal antibodies. The goal is to address ongoing and future pandemics.
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The first step of artificial intelligence in biotech is identifying conserved immutable target sites. This aspect is already complete and should help to push its pipeline further. This technique is utilized in the treatment of HIV, HTLV-1, and more recently, SARS-CoV-2 (COVID-19). As stated earlier, the pandemic has brought a lot of attention to companies both working on Covid-related treatments and those that are not. The ones that are, however, are also aiming to use the new advancements for potential future pandemics.
After this announcement was made, ENZC stock increased by around 30% on June 7th. Now, it will be interesting to see how the company continues to advance its groundbreaking work. So, as a company with a lot in its pipeline both novel and highly researched, will ENZC stock be on your watchlist this year?
3. Zomedica Corp. (NYSE: ZOM)
Zomedica Corp. is a biotech stock that is different from the others on this list. Rather than producing compounds for humans, ZOM develops medical products for companion animals. Its main product is TRUFORMA which is a diagnostic biosensor platform that detects thyroid disorders in dogs and cats, as well as adrenal disorders in dogs.
It currently has a collaboration agreement with Celsee Inc. to develop and commercialize liquid biopsy assays and related consumables for cancer detection in companion animals. Last month, ZOM released its first quarter financial results for 2021 which had a decent impact on its share price.
“Our first product, TRUFORMA®, now is on the market and we are building out our direct sales organization to reach our customers; we are working hard with Qorvo Biotechnologies, our technology partner, to complete additional assays to complement the initial three that are currently available to customers; and we have cash and cash equivalents of more than $250 million to support our commercialization efforts and our product and corporate growth plans.”
The CEO of Zomedica, Robert Cohen
Zomedica is considered a “meme stock” by many traders. This is a term given to stocks that are heavily invested in by retail traders use platforms like Reddit and Twitter to find companies to invest in. This started with the popular subreddit r/WallStreetBets and since then, many new meme stocks have exploded in popularity.
Because of its frequent mentions on social media, ZOM stock can often see large price swings with no reason to back it. For this reason, the company could be seen as more of a volatile investment. With all of this information in mind, will ZOM make it on to your list of penny stocks to watch?
Which Biotech Penny Stocks Are On Your Watchlist?
Picking the best biotech penny stocks to watch is all about understanding the ebb and flow of the market. While some may have value in the short term, others could have better long-term prospects.
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Educating yourself on how to trade penny stocks overall and those in specific industries, will always be a major asset to your portfolio. And in 2021, there is a lot to keep track of. So, considering all of this, which biotech penny stocks are on your watchlist?
