Biotech Penny Stocks & Small Caps Gain Ground After Cytokinetics Gets Boost On News
When it comes to penny stocks or small-caps, in general, sector & industry trends can play a role. Broader markets and indexes like the S&P 500 ETF (NYSE: SPY) and Nasdaq ETF (NASDAQ: QQQ) have slumped. But some companies are enjoying a strong move on Monday. For instance, Cytokinetics Inc. (NASDAQ: CYTK) shares jumped to some of their highest levels in nearly a year. This came after the company announced positive topline results from 2 cohorts in its REDWOOD-HCM Phase 2 clinical trial of CK-3773274 (CK-274). This is the company’s investigational treatment targeting hypertrophic cardiomyopathy.
“The combined data from Cohorts 1 and 2 in REDWOOD-HCM met our high expectations for this trial of CK-274 in patients with obstructive HCM, given the observed onset of response to initiation of treatment, magnitude and breadth of response, reversibility of LVEF decreases, and favorable tolerability profile,” said Fady I. Malik, M.D., Ph.D., Cytokinetics’ Executive Vice President of Research & Development.
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Thanks to these results, Cytokinetics expressed its anticipation of what its Phase 3 trial could bring to the table. Let’s put this into perspective. CYTK wasn’t any of the penny stocks that broke out last year. However, its valuation was a fraction of what it is today. Last October, CYTK stock was trading around $15 a share; more than 50% less than its value on July 19th. With that, attention is certainly on smaller biotech stocks right now.
Penny Stocks & Small Cap Biotechs Gain Attention On Sympathy Trend
With this news placing attention on smaller biotech companies, it will be interesting to see how things play out at the start of the week. A few things to note are that both broader small-caps and biotech, in general, are feeling the pressure from the market’s early sell-off this week. However, some stand-outs could present some potential early on as well. At the end of the day, broader trends don’t always dictate the pace for smaller stocks (including penny stocks). This shortlist includes a few names to watch that’ve bounced while broader markets slid.
- GT Biopharma Inc. (NASDAQ: GTBP)
- Iveric Bio (NASDAQ: ISEE)
- NRX Pharmaceuticals Inc. (NASDAQ: NRXP)
GT Biopharma Inc. (NASDAQ:GTBP)
Roughly 4 months ago, GT Biopharma (GTBP Stock Report) was trading as a penny stock. Shares of the biotech company hovered under $5 a share as the company began rolling out its plan to advance a novel treatment pipeline. Built on the framework of its tri-specific killer engager cell technology (TriKE), GTBP stock has managed to turn heads in a short period of time.
One of the unique traits of GT is that early clinical data has already shown the potential of its treatment technology. The company’s lead candidate, GTB-3550, for instance, has demonstrated effective treatment in patients with acute myeloid leukemia (AML), myelodysplastic syndrome (MDS). So far, 11 patients have completed treatment in the GTB-3550 Phase 1 clinical trial. According to the company, Patients 5, 7, 9, and 11 experienced 33%, 61%, 63% and 50% reduction in CD33+ AML/MDS bone marrow blast levels, respectively. The Phase 1 safety portion is expected to finish up in late August with a data publication scheduled for the end of September. Considering the early progress and near-term potential catalysts, GTBP stock has found itself on watch lists this year.
What’s more, aside from GTB-3550, the company’s other TriKE candidates have demonstrated efficacy in combination with other treatments. For instance, GT Biopharma’s B7H3 TriKE was combined with Fate Therapeutic’s (NASDAQ: FATE) FT538 iNK cells targeting tumor cells in prostate cancer. While FT538 alone showed a slight impact to cells in the model, the combination with GT’s TriKE demonstrated a complete eradication of cancer cells:
Additionally, GT Biopharma’s CEO, Anthony Cataldo told PennyStocks.com that:
“GT Biopharma’s TriKE™ technology is a clear breakthrough in cancer treatment. Not only has it shown early success in hematologic diseases like acute myeloid leukemia, the potential demonstrated in combination with Fate’s FT538 iPSC NK cells opens up endless possibilities for the application of TriKE combination treatment in other potential drug therapy platforms targeting things like IL-15.”
Iveric Bio (NASDAQ: ISEE)
Another one of the former biotech penny stocks to watch right now is Iveric Bio (ISEE Stock Report). Last August, shares of ISEE stock were trading below $4 at one point. Fast-forward to this year and the former penny stock has reached highs of $10.25. Given the momentum that has built up just recently, Iveric Bio has experienced a strong surge in interest. What seems to have helped spark the action, began when Wedbush updated its stance on ISEE. The firm boosted its price target to $15 from $11 and maintained its Outperform rating.
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Following this, the company received an FDA agreement for its GATHER2 Phase 3 clinical trial. This trial is focused on Iveric’s Zimura for geographic atrophy. Why was this important? This special protocol assessment provided the company with an official evaluation and guidance on the design for a protocol aimed at creating the basis for a new drug application.
The company expects to finish enrollment of this trial by the end of this month. It also brought on a new Chief Commercial Officer, Christopher Simms, who comes from a strong background in biotech prowess. Simms joins Iveric from Novartis where he managed commercial operations and launched BEOUV for wet age-related macular degeneration. Simms also served at Genentech. With the addition of a new CCO and anticipated completion of enrollment in this next trial, ISEE stock may be one to watch before the end of July.
NRX Pharmaceuticals Inc. (NASDAQ: NRXP)
Shares of NRXP were also going against the grain of the broader biotech trend at the start of the week. NRX Pharmaceuticals (NRXP Stock Report) announced that it will present data at the Disease Control and Prevention Summit this week. Wednesday (7/21) the company provides evidence that its YESAMI treatment might help prevent “cytokine storm” in patients with COVID-19.
According to the company, “In the recently-completed phase 2b/3 trial, patients treated with placebo experienced a statistically significant elevation in interleukin 6 (IL-6) cytokine levels, whereas those treated with ZYESAMI™ had a minimal increase in IL-6. Change in cytokine level was a prespecified endpoint of the study.”
The data were submitted to the FDA as a supplement to its pending Emergency Use Authorization application. The company has also planned on submitting a biomarker letter of intent to the FDA. NRX has explained that cytokine release syndrome or “cytokine storm” has been related to mortality in a number of conditions including Acute Respiratory Distress Syndrome. Since these data also have to do with a pending EUA application for ZYESAMI, Wednesday’s further details may be something to keep mindful of heading into the week. Needless to say, this small cap stock has seen a strong move over the last few days. Shares rallied from around $8 in post-market trading on July 16th to highs of over $11 on Monday.
Are Small Caps or Penny Stocks On Your List Right Now?
There’s plenty of potential with smaller stocks. But just like any investment, it’s important to be mindful of volatility. In general, the smaller the company, the more fluctuations it may see in the stock market. Understanding things like what’s potentially upcoming that might be a catalyst, key technical levels on a chart, and other trading topics to use are key to finding opportunities. In the stock market today, some of the names on this list could be ones to watch as the market finds its range in July.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from June 2, 2021, to July 1, 2021. This compensation is payment 4 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 2, 2021, to August 2, 2021. This compensation is payment 5 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click Here For Full Disclaimer