3 Biotech Penny Stocks to Watch in July 2021
Biotech penny stocks have been on fire over the past year and a half. While this began during the pandemic and the resulting focus on biotech companies working on a Covid treatment, it is now much broader. In June of 2021, investors are searching for penny stocks in the biotech industry regardless of their involvement in a Covid treatment or vaccine. There are a few good reasons for this.
First and foremost, biotech companies tend to release a great deal of news. Because the entire list of penny stocks tends to be so speculative, the news will always affect price. This means that we can see biotech stocks fluctuate greatly either up or down during the course of a trading day.
While bad news results in negative movements, often good news can result in the opposite. So, when considering biotech penny stocks to watch, make sure you know exactly what the company does, and how far along its compounds or products are in the pipeline. Because drug development can take years before commercialization takes place, knowing what the timeline is will be a major benefit to you and your portfolio.
Lastly, investors should understand both what the funding needs of the company are, and how much funding it has on hand. As stated earlier, drug development can take years, and in that time, cash burn is more than likely. Because of this, having a large cash balance is a major necessity for biotech companies to see potential success. Considering all of this, let’s take a look at some of the top biotech penny stocks to watch right now.
Top Biotech Penny Stocks to Watch Next Month
- Pieris Pharmaceuticals Inc. (NASDAQ: PIRS)
- Sesen Bio Inc. (NASDAQ: SESN)
- AnPac Bio-Medical Science Co Ltd. (NASDAQ: ANPC)
Pieris Pharmaceuticals Inc. (NASDAQ: PIRS)
Pieris Pharmaceuticals Inc. is a biotech penny stock that discovers and develops anticalin protein-based drugs. The U.S.-based company is developing anticalin proteins that are low molecular-weight proteins derived from lipocalins. These naturally occurring human proteins are found in human blood plasma and other bodily fluids. Its lead Anticalin-based drug candidates are PRS-060/AZD1402 which is in Phase II clinical trial targeting IL-4Ra to treat asthma and inflammatory diseases.
The last month has been very kind to PIRS stock. The company announced a respiratory and ophthalmology collaboration with Genentech on May 25th. Pieris will get $20 million upfront and is eligible for more than $1.4 billion in additional potential milestone payments plus royalties for commercial programs.
The company’s stock price has increased by about $2 per share since this announcement was made. This is a substantial amount, but the real potential lies in the long-term time frame of this deal. While partnerships are common in the biotech industry, they are one of the major proponents of growth for individual companies.
“We look forward to working closely with Genentech on the development of new inhaled and ophthalmological treatments based on the Anticalin platform. This collaboration further expands our partnered efforts in respiratory diseases and opens a new avenue for our Anticalin technology to potentially provide patient benefit through local biological effects.”The President and CEO of Pieris Stephen S. Yoder
Considering this big news, PIRS could continue to see momentum as we move forward. However, whether or not it deserves a spot on your watchlist, is up to you.
Sesen Bio Inc. (NASDAQ: SESN)
Sesen Bio Inc. is a biotech company that designs, engineers, develops, and commercializes targeted fusion protein therapeutics. These therapeutics are in use to treat patients with cancer. Its lead candidate known as Vicinium is a targeted fusion protein in Phase III clinical trials to treat BCG-unresponsive non-muscle invasive bladder cancer. Its other product candidate, CB6-845d is in use for the treatment of anti-epithelial cell adhesion molecule positive solid tumors.
The market for cancer-related drugs is quite large and continues to grow every day. Because cancer is one of the most common illnesses globally, many companies are scrambling to find both viable treatments and potential cures. Sesen Bio is a company that we’ve covered numerous times for this very reason.
On June 2nd, Sesen announced a global supply partnership with Qilu Pharmaceutical. This is a supply agreement for Vicineum making Qilu a part of the manufacturing network for global commercial supply of the therapeutic.
“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.”Dr. Thomas Cannell, President and CEO of Sesen
Again, partnerships like these are incredibly important with biotech companies. However, this collaboration should greatly help with the commercialization stage of vicineum. Because commercialization is the main driver of revenue growth, and drug production is a difficult task, the partnership between these two companies makes complete sense.
While it may take some time for the details to be fully fleshed out, it is without a doubt, exciting for the company and investors alike. In the last month, SESN stock went from $2.69 per share to nearly $4.50 per share. This is a major gain and one that should be in mind when considering SESN stock for your watchlist.
AnPac Bio-Medical Science Co. Ltd. (NASDAQ: ANPC)
Up by more than 17% in pre-market trading are shares of ANPC stock. While many large gains go without news, ANPC made a big announcement in early morning on June 18th. Before we get into it, let’s talk about what AnPac does. ANPC is a biotech company working on early cancer screening detection as well as certain cancer treatments.
It has two certified laborite sorties in China and one laboratory in the U.S. The company’s Bio CDA tech platform can detect the risk profile of more than 20 different cancer types. Today, the company announced that it was granted its first disease treatment patent as well as a multi-million dollar funding deal.
“We are pleased that AnPac Bio has been granted our first disease treatment patent, whose disease treatment-related claims will be licensed to our new cancer treatment joint venture (while future disease treatment only patent applications will the transferred to the cancer treatment joint venture).
We are also pleased that our cancer treatment joint venture has secured funding to speed up its cancer treatment developments. Our core business of cancer detection and this new cancer treatment venture are expected to have significant synergies in terms of technology, market, business, and customer.”Dr. Chris Yu, CEO of AnPac
This is a big deal and one that investors should definitely take note of. It’s not every day that patents are granted to biotech companies. And, this explains today’s sizable gain for ANPC stock. With this considered, will ANPC be on your watchlist?
Which Biotech Penny Stocks Are on Your List?
Finding the best biotech penny stocks to buy in 2021 can be challenging. With so much market movement and many trading days showing low volume, the past two months have not been the easiest.
However, after Powell’s speech a few days ago, many investors are showing excitement around the future. With the pandemic coming to a slow end, the hope is that the market will begin to climb as we witnessed earlier in the year. When and how long this will take remains unknown. Regardless, which biotech penny stocks are on your list in 2021?