3 Hot Biotech Penny Stocks to Watch in 2021
Biotech penny stocks are heating up, and it doesn’t look like the momentum is going anywhere anytime soon. The momentum around penny stocks in the biotech industry began early last year as the pandemic set in. And while it started with an emphasis on biotech companies working on a covid treatment or vaccine, it quickly spread to non-Covid related penny stocks as well.
And now, with the rise of the Delta variant, investors are once again looking at biotech stocks as a way to tease advantage. Right now, there are also rumors surrounding the production of a Covid-19 pill cure. This is a new development, but one that could again, fuel the fire around biotech penny stocks. It’s worth noting that there is a great deal of volatility in the stock market right now.
Today on July 26th, this includes small-caps such as SPAR Group Inc. (NASDAQ: SGRP) and Imv Inc. (NASDAQ: IMV), which both shot up in the high double-digit percentage points during morning trading. While SGRP stock and IMV stock are only two examples, they do illustrate how small caps can shoot up or down greatly in a given trading day. But, if you trade penny stocks, you likely know that large fluctuations and high volatility come with the territory. Considering this, let’s take a look at three biotech penny stocks that are heating up right now.
3 Biotech Penny Stocks to Watch Right Now
- Xenetic Biosciences Inc. (NASDAQ: XBIO)
- Chembio Diagnostics Inc. (NASDAQ: CEMI)
- AzurRx Biopharma Inc. (NASDAQ: AZRX)
Xenetic Biosciences Inc. (NASDAQ: XBIO)
Up by over 50% at midday, today are shares of XBIO stock. While many large gains like this often occur without news, XBIO made a big announcement during early morning trading. Shares of the biotech penny stock spiked on the news that it has entered into an agreement with an institutional investor for a $12.5 million private placement.
This private placement worth over 4.62 million shares of common stock, will exercise at a price of $3.30 per share and a purchase price of $2.70 per share. While fundraising deals like this are common, they are always exciting for investors and companies alike. For some context, Xenetic Biosciences is a biopharmaceutical company working on its XCART platform. This is a proprietary, personalized CAR T platform tech, that can deliver tumor-specific neoantigens.
In addition to this, Xenetic is working on a drug delivery platform known as PolyXen, which can improve the half life of certain biologic drugs. In regard to this, it currently has an exclusive license agreement with Takeda Pharmaceuticals Co. Ltd. and received royalties as a result. So, if you’re looking for an interesting biotech penny stock that is well funded, XBIO stock could be worth keeping an eye on.
Chembio Diagnostics Inc. (NASDAQ: CEMI)
Chembio is another biotech penny stock that is gaining attention right now. In addition to providing point of care diagnostic products, the company is also working on Covid-19 related detection devices. In addition to this, its novel DPP technology is one aspect that separates the company from the rest.
It sells all of its offerings directly and through distributors to hospitals, clinics, physician offices, government agencies and more. Ahead of its Q2 financial report which will be released on August 5th, 2021, let’s take a closer look at the company. Last week, Chembio announced that it received a $4 million order for HIV tests by the Global Fund.
“We are proud to continue our support of The Global Fund’s pursuit of UNAIDs’s 90-90-90 targets. We look forwards to working closely with PFSCM to continue the supply of our high-quality HIV tests to help the people of Ethiopia know their HIV status and obtain treatment.”Richard L. Eberly, CEO and President of Chembio
This is a big deal for the company, and follows its previous orders since 2018. The long-term nature of this order means that CEMI could be in an interesting position moving into the future. Considering this and its upcoming financial release, CEMI stock could be worth keeping an eye on.
AzurRx Biopharma Inc. (NASDAQ: AZRX)
AzurRx Biopharma Inc. is a clinical-stage biopharmaceutical company that focuses on GI disorders. The company has three gut-restricted assets. This includes its lead therapeutic candidate MS1819, which is for treating exocrine pancreatic insufficiency in patients with cystic fibrosis. In addition to this, it offers FW-1022, which is for treating GI disorders related to Covid-19.
Last week, news broke that the company increased its initial Bought Deal Offering to $5 million. The money will go toward milestone payments as well and manufacturing, clinical development, acquisitions and investments. In addition to this, last month, the company announced that it had dosed the first patient in a Phase 2 trial of niclosamide for treating Covid-19 related GI infections.
“Dosing the first patient in the Reservoir clinical trial marks a significant milestone for AzurRx and the development of niclosamide as a potential treatment for Covid-19 related GI infections. There are currently no approved treatments available for Covid-19 related GI infections.
If our development program is successful, we believe that FW-1022 could help prevent reinfection and the spread of Covid-19, as well as certain potentially severe complications that many people believe to be caused by…SARS-CoV-2.”James Sapirstein, CEO of AzurRx
This is a big milestone for the company and one that could payoff in the long term if all goes according to plan. Obviously, it will take some time before AZRX sees this drug become approved. But if it does, investors could pay close attention to AZRX moving forward. Considering this, will AZRX stock be on your watchlist next month?
Are Biotech Penny Stocks Worth It?
Finding the best biotech penny stocks to buy is all about understanding where to look. With so many moving parts in the stock market right now, it can seem difficult at times to keep up.
But, by staying up to date with all the latest news, investors can stay ahead and make decisions based on the near future. Considering this, do you think that biotech penny stocks are worth it or not?