3 Top Biotech Penny Stocks to Watch in 2021
Making a list of biotech penny stocks to watch is easy in 2021. With the pandemic putting a major emphasis on the biotech industry as a whole, corresponding penny stocks have jumped tremendously in value during the past year and a half. While the focus began only on companies that held involvement in Covid-related treatments, it is now on any and all biotech stocks with encouraging products and financial data.
In biotech, one of the best signs of progress is how much funding it has. When looking at a balance sheet, look for the amount of cash on hand it is holding. Yes, capital is the most important factor in any company’s success. However, with biotech, trials are extremely expensive, and compounds/medical devices can spend years in the testing phases. This means that capital is even more important with biotech than almost any other industry.
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With the influx of penny stock traders on Robinhood, billions of dollars of retail investor capital has flooded the stock market in the past year or two. Because of this, biotech companies have access to greater amounts of funding than before. While it is important to see what products are in the company’s pipeline, it is equally important to see if it has funding to support current and future endeavors. With this in mind, let’s take a look at 3 well-funded biotech penny stocks to watch in 2021.
3 Biotech Stocks To Add To Your June Watchlist
- Aprea Therapeutics Inc. (NASDAQ: APRE)
- Iterum Therapeutics PLC (NASDAQ: ITRM)
- Predictive Oncology Inc. (NASDAQ: POAI)
Aprea Therapeutics Inc. (NASDAQ: APRE)
The first biotech penny stock on this list is Aprea Therapeutics. Up by around 20% at midday on June 16th, APRE is a Boston-based biopharmaceutical company that operates internationally with research and development facilities in Stockholm and Sweden. Specifically, it focuses on the formation and commercialization of cancer therapeutics. Its work with novel cancer therapies focuses on tumor suppression methods.
The further a tumor progresses through its different stages of development the more damaging it can become. The main dangers with tumors are metastasis, unregulated growth, and angiogenesis. Even with benign tumors, both uncontrolled growth and angiogenesis can still occur so suppression and regression are a patient’s best chance at survival. APRE is doing just this by using a therapeutic meant to reactivate a mutant tumor suppressor protein known as p53.
The company’s staple product is Eprenetapopt (APR-246). This is a small molecule that is currently in clinical development for both hematologic malignancies and solid tumors. It functions as a small molecule reactivator for mutant p53 and is administered orally. The FDA has granted these therapeutic designations: “Breakthrough Therapy, Orphan Drug, and Fast Track”, which put it that much closer to approval.
Recently the Phase 1 and Phase 2 trials of this compound met pre-specified primary efficacy endpoints of complete remission (CR) rate. This was done by evaluating the use of Eprenetapopt with Venetoclax and Azacitidine in patients with TP53 mutant AML. Dr. Eyal Attar commented, “We are pleased with these results from the combination of eprenetapopt with venetoclax and azacitidine in this very difficult-to-treat TP53 mutant AML population, a patient group with significant unmet medical need.”
APRE has seen solid gains today as mentioned above. While it technically is no longer a penny stock at just over $5.80 per share, the jump over the $5 threshold only occurred today. This is largely due to good news surrounding its compounds and the trials for the drugs mentioned above. When a penny stock breaks through that barrier of $5, many investors are encouraged to jump in as this threshold can create a mental barrier. Considering its exciting work on tumor suppression, will APRE stock be on your watchlist?
Iterum Therapeutics PLC ( NASDAQ: ITRM)
In the past month, shares of ITRM stock have shot up by a more than significant 80% or so. This is due to two main reasons. First, its past Q1 financial results were highly optimistic, showing growth in its top and bottom line. Additionally, ITRM reported around $100.5 million in cash and cash equivalents.
This funding should be sufficient to last the company into the second half of 2023. With biotech, the most important factor to consider aside from its compounds is whether it has enough cash to sustain its operations into the future. Testing and trials are extremely expensive, meaning that capital is the main source of growth.
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In addition to positive financials, the company recently announced that the FDA would not require an advisory committee review of its regulatory filing for the compound sulopenem. This means that the process could occur much faster than expected. For some context, ITRM is in the process of developing sulopenem to treat uncomplicated urinary tract infections (uUTI). Oral Sulopenem, is as its name suggests, an orally bioavailable antibiotic. It’s considered a broad-spectrum penem β-lactam antibiotic and is currently showing high efficacy against similar substances.
“With an FDA decision on oral sulopenem expected in the second half of 2021 and a strong cash position, we are preparing for a launch of oral sulopenem into the community in the fourth quarter of 2021 if approved.”
Corey N. Fishman, CEO of ITRM
This is big news for the company as a launch that soon could mean heightened revenue if commercialization activities occur. While nothing is guaranteed, especially when we consider the FDA’s role, the future of ITRM does look exciting. Whether Iterum Therapeutics is worth keeping an eye on, however, is up to you.
Predictive Oncology Inc. (NASDAQ: POAI)
Predictive Oncology is another relatively well-known biotech penny stock. Interestingly enough, Predictive Oncology utilizes artificial intelligence to create highly advanced cancer treatments. It does so by gathering rich data samples to best interpolate a personalized cancer therapy based on its sample pool of patients. This focuses on treatments that have been most effective and can be highly personalized treatment plans.
For cancer treatment, genomics has started to play a large role in decision making. A major undertaking is underway to try and compile all cancer case studies by the community as a whole to study the disease on an individual level. This collaborative work can expedite treatment by using new methods that are known to work in similar cases. Using AI technology can further aid this decision-making process and give the patient the best hope of recovery.
Recently, POAI entered into an agreement with multiple institutional investors to secure funding. By selling 15,520,911 shares of its common stock at $1.375 per share POAI should have enough capital to continue its operations for quite some time. The gross proceeds from this deal come in at around $21.34 million and it intends to use this funding for working capital and corporate purposes.
In the past month, shares of POAI stock have shot up by almost 30% and in the past six months, that number is almost double. Considering its sizable growth and solid capital footing, POAI could be an interesting addition to your watchlist.
Biotech Penny Stocks Are Showing Solid Potential Right Now
There’s a reason why so many investors choose penny stocks to buy in the biotech industry. Because of their swift price movements and high speculative nature, these stocks tend to move very fast. This can result in sizable gains as well as just as sizable losses.
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The most important thing to consider is to always do as much research as possible. This ensures that you will know exactly what you’re getting into. Considering the potential trajectory of the biotech industry right now, which penny stocks are you watching in 2021?
