Biotech Stocks Continue to Grow Amid Falling Covid Cases
Over the past year and a half, biotech stocks, and biotech penny stocks, in particular, have become a major talking point. Because of Covid, more investors are focusing on the biotech industry than in many years prior.
And, this makes sense given that there are plenty of penny stocks working on Covid-related treatments. However, in the past six months, investors have broadened their focus beyond those companies just working on a Covid vaccine or compound.
Now, we are seeing an overall interest in the biotech industry as a whole. This is true whether it be groundbreaking new medicines or better versions of medical devices. So, because momentum is high, plenty of penny stocks to watch in the biotech industry have reached record highs in the past few months.
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While trading volume over that time was relatively low and the market has been trading mostly sideways, investors are excited about the future. As Covid cases decline to the lowest rate in months, and more than 2 billion vaccine doses have been administered globally, the next few months could be fruitful.
But, traders are also cautious, and this fear is illustrated through the trading we’ve witnessed since around April. Moving forward, investors should pay attention to the news and what is occurring worldwide. This is the best way to try and stay ahead of the game. Considering this, let’s take a look at three biotech penny stocks for your morning watchlist.
3 Biotech Penny Stocks to Watch Right Now
- Tyme Technologies Inc. (NASDAQ: TYME)
- Axcella Health Inc. (NASDAQ: AXLA)
- iBio Inc. (NYSE: IBIO)
Tyme Technologies Inc. (NASDAQ: TYME)
Tyme Technologies Inc. is a biotech penny stock that has been performing well in the market recently. The company develops cancer metabolism therapies in the United States. One of its lead candidates is SM-88 which is in several Phase II/III clinical trials to treat 15 different types of cancer.
This includes but is not limited to lung, breast, prostate, lymphoma, sarcoma, and other types of cancer. It also has TYME-18 which is a CMBT compound in preclinical stages to treat solid tumors. Given that this compound has the potential to treat so many different types of cancer, it could take some time before approval is granted. However, the broadness of its scope is a major benefit for Tyme and investors alike.
Tyme has not released any recent company-specific updates in the past few weeks. However, it does plan on hosting a conference call on June 10th after the market closes. This is when the company will report conclusions from its comprehensive strategic review and outline its updated business plan. Tyme will also report its fiscal year financial results on the same date. These are both sizable events to take note of. Conference calls and balance sheets give a unique insight into what a company is doing now, and what it could do in the coming months.
On the trading day before this took place, TYME stock pushed up substantially. And, in the past month, shares of TYME have shot up by over 30%. With this being said, it is important to stay up to date with any advancements made by the company. In biotech, things always move fast, so updates are extremely important. With this in mind, will TYME make your list of penny stocks to watch?
Axcella Health Inc. (NASDAQ: AXLA)
Axcella Health Inc. is another biotech penny stock that is growing substantially in many recent trading sessions. Over the past five days, AXLA stock has shot up 55%. Despite being down around 14% in early market trading, many investors are showing bullish sentiment for Axcella.
For some context, the company treats complex diseases and enhances health with endogenous metabolic modulator compositions. Its lead product candidates include AXA1665, to treat overt hepatic encephalopathy, AXA1125 to treat non-alcoholic steatohepatitis, and more.
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While no company-specific news drove yesterday’s substantial gain, we can dig a little deeper to try and explain this. Recently, Senda Biosciences, another biotech company, announced that it closed a $98 million Series B financing deal. One participant in this deal was Flagship Pioneering, which is a company that develops first-in-category life science platform companies that are transforming human health and sustainability. And, a company under its umbrella is, you guessed it, Axcella Health. While this does not purely relate to AXLA, often we see correlative momentum when one event occurs in the biotech industry.
On the day of this announcement, shares of AXLA stock rose more than 48% in the market. AXLA stock opened at $3.44 per share and closed at $5.13 per share, making it no longer a penny stock. At one point, AXLA reached as high as $5.89 per share, which is quite a substantial intraday move. With all of this information in mind, will you add AXLA stock to your list of penny stocks to watch?
iBio Inc. (NYSE: IBIO)
iBio Inc. is a biotech penny stock that provides contract development and manufacturing services. These services are offered to collaborators and third-party customers. Its therapeutic and lead candidate is IBIO-100. This compound holds an investigational new drug development designation to treat systemic scleroderma, idiopathic pulmonary fibrosis, and more. It has many other trials making advancements as well at the moment. So what is causing this recent 6% uptick in IBIO stock price?
Well, iBio is currently developing a COVID-19 vaccine candidate. It has not been approved for use yet, but often companies related to COVID developments will perform well in the meantime. The company provided a corporate update in mid-May that gave investors some insight as to where the company is now at.
“Our focus on strategy execution was reflected in our third-quarter results as we advanced our second-generation COVID-19 vaccine candidate, defended our intellectual property rights, and achieved strong year-over-year revenue growth while adding new development services clients.”
The Chairman and CEO of iBio, Tom Isett
While treatments surrounding Covid can provide major room for speculation, it’s best to consider the other compounds in iBio’s pipeline. It’s worth noting that IBIO and the biotech industry right now, tend to be highly speculative. But, given that IBIO stock has a lot of momentum behind it right now, will it make your watchlist?
Which Biotech Penny Stocks Are You Watching?
Finding the best biotech penny stocks to buy can be challenging. But, with the internet at our fingertips, doing research has never been easier. Considering this, it’s best to consider the factors that go beyond pure speculation.
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This means understanding what compounds a company has in its pipeline, and what its short and long-term goals are. With this in mind, there is plenty of momentum in the biotech industry right now. So, which biotech penny stocks are you watching?
