Best Biotech Penny Stocks to Watch in July 2021
Biotech penny stocks remain some of the hottest stocks of the year so far. While there are hundreds of penny stocks in the biotech industry to choose from, only a handful have a lot to offer investors of all types. To understand which, we have to take a deeper dive into what makes biotech penny stocks worth buying. In 2021, the answer to that question comes in two parts.
On one hand, investors need to understand what a company has in its pipeline, and how close those products are to approval. Because the FDA process can be both expensive and lengthy, seeing how close a pharmaceutical or medical tech product is to being approved, is extremely important. Additionally, investors should understand the potential market size for a product. This will illustrate the size of a given revenue stream depending on either commercialization or licensing.
The second thing to consider with biotech stocks is how much money the company has on hand. As mentioned earlier, producing a drug or product is extremely expensive. So, having enough of a cash runway for the foreseeable future is pertinent to a company’s success. Considering all of this, let’s take a look at three biotech penny stocks that you need to know about in 2021.
- NeuroBo Pharmaceuticals Inc. (NASDAQ: NRBO)
- Synthetic Biologics Inc. (NYSE: SYN)
- InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV)
NeuroBo Pharmaceuticals Inc. (NASDAQ: NRBO)
Over the past year or so, biotech penny stocks have been on a tear. One of the newcomers on the scene right now is NeuroBo Pharmaceuticals Inc. NRBO is a clinical-stage biotech company that operates in multi-modal therapeutics. Most of its drugs are purposed for neuropathic, viral, and neurodegenerative diseases.
Currently, NRBO has a strong portfolio containing four drug candidates. Gemcabene, which is a compound it is working on, is in tests right now for the treatment of COVID-19. Recently NRBO announced that it will add Hyung Heon Kim as well as Andrew I. Koven to its Board of Directors.
“On behalf of the NeuroBo Board, I am delighted to welcome Hyung and Andrew to the Company. Their collective industry leadership experience and legal expertise will be greatly valued as we advance our pipeline of multi-modal disease-modifying therapies for viral, neuropathic, and neurodegenerative diseases.”Richard J. Kang, President, and CEO of NeuroBo
Today, shares of NRBO stock pushed up by around 50%. This is major, and despite no news coming out of the company on July 20th, this is an impressive gain to consider. With penny stocks, we often see major rises or drops in value with no news to back them. This is common as stocks under $5 tend to be quite volatile. And while gains without news are not always this large, it does happen from time to time.
It’s worth noting that NRBO stock is quite volatile. And, at around $4.50, it is by no means one of the cheapest penny stocks out there. However, it does have a lot going in its pipeline right now which could be driving some of this momentum. With this in mind, will NRBO stock be on your watchlist?
Synthetic Biologics Inc. (NYSE: SYN)
When novel therapeutics are produced, they go through a rigorous set of Phased trials regulated by the FDA before gaining full approval. So, it’s no surprise that when a drug finally gains approval, corresponding companies can jump substantially in value.
Synthetic Biologies is an interesting biotech penny stock that has several compounds in different stages of the trial process. SYN specializes in the treatment of gastrointestinal (GI) diseases with leading products such as SYN-004 (ribaxamase), a degrader of beta-lactam antibiotics, and SYN-020, a recombinant oral formulation. Recently, the company announced the completion of its Phase 1 study of SYN-020 intestinal alkaline phosphate. It stated that the drug was well tolerated and it can now move into a second Phase 1 trial.
“SYN-020 is a promising, versatile program that has the potential to become a multi-indication, platform therapeutic capable of addressing a considerable unmet need for innovative new therapies targeting disorders stemming from gastrointestinal (GI) inflammation, including celiac disease, NAFLD, and age-related metabolic and inflammatory diseases.”Steven A. Shallcross, CEO of Synthetic Biologics
The completion of a trial is always exciting as it means a company can move forward into the latter stages. While there is still a great deal of progress to be made, this is an encouraging sign for investors. Whether this makes SYN stock worth watching or not is up to you.
InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV)
InVivo Therapeutics Holdings Corp. is an interesting biotech penny stock that is seeing heightened popularity right now. As a leader in the biotech industry, one of its strong points is its financial standing. The company reports that it has no sizable debt obligations and a solid cash runway to fuel its near and long-term future.
Only a week or so ago, the FDA accepted NVIV’s preclinical module for the company’s humanitarian device exemption (HDE). This is one of three modules as part of the device that it will need for its Neuro-Spinal Scaffold implant to gain approval.
With this acceptance, the FDA essentially states that it has no more questions regarding the implant, and the company can move forward with its trials. It is no enrolling patients in its INSPIRE 2.0 study, which will test the Neuro-Spinal Scaffold to great degrees.
Richard Toselli M.D., CEO of InVivo, stated that “It is rewarding to see our continued progress in advancing the Neuro-Spinal Scaffold towards our complete HDE submission, and we value the FDA’s continued collaboration with use to help achieve this goal.” With a range of proprietary technology in its pipeline, NVIV stock remains an interesting biotech penny stock to watch.
Are These Biotech Penny Stocks Worth Buying?
Finding the best biotech penny stocks to buy is all about understanding the potential that a company has. With so many penny stocks to choose from, it all comes down to how much research and time you’re willing to put in.
In 2021, we are seeing a great deal of volatility in the stock market. But, this volatility can be used as an advantage if you know how to trade penny stocks. Considering all of this, do you think that these biotech penny stocks are worth buying?