These Penny Stocks May Turn Heads Next Month
A great thing about penny stocks and the market, in general, is that there isn’t one right or wrong way to research. Where some traders look at fundamentals and corporate growth, others seek out technical trends and market momentum. As we’ve seen, the uptick in attention on “short squeeze stocks” has placed a spotlight on low-priced stocks this month that have higher levels of short interest in them. Thanks to a spike in shares of companies including Support.com (NASDAQ:SPRT), AMC Entertainment (NYSE:AMC), and Vinco Ventures (NASDAQ:BBIG) this month, penny stocks are a hot topic.
It’s the latest trend we’re going to discuss today. Not the idea of another list of stocks with high short interest. But it’s this speculative thought process that has traders anticipating a potential move based on a certain set of criteria. As we turn the page on August this week and head into September, there’s a fresh month ahead to identify points of speculative interest in the market. One of the industries best-known for something like this is the biotech industry.
More times than not, companies will pre-announce important dates. These may relate to data readouts from phase trials, industry presentations, FDA events, and the like. In certain situations, these events become the center point for speculation and can be one of the reasons some biotech penny stocks experience higher-than-average volatility in the stock market. So with this in mind, here’s a quick list of penny stocks to watch for September & each company has pre-announced dates to know ahead of time.
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Penny Stocks To Watch For September
- BELLUS Health (NASDAQ:BLU)
- CTI BioPharma Corp. (NASDAQ:CTIC)
- Pieris Pharmaceuticals (NASDAQ:PIRS)
- ObsEva (NASDAQ:OBSV)
- Avalo Therapeutics Inc. (NASDAQ:AVTX)
BELLUS Health (NASDAQ: BLU)
BLU stock has been on our radar since it first became a penny stock last summer. At the time, the company reported that its Phase 2 RELIEF trial of BLU-5937 for chronic caught didn’t meet its primary endpoint. The result was a drop in share price from over $12 to as low as $2.01. A lot has happened since then, and shares have managed to recover. This week BLU stock tested highs of $3.83 for the first time since June.
What To Watch With BLU Stock
When it comes to BLU stock, September could be a busy month. That’s because BELLUS has a few different sets of data to report. First, this week the company anticipates reporting more data from its RELIEF study at the European Respiratory Society International Congress. Held September 5-8, the company will discuss its findings from the phase 2 trial using BLU-5937 in refractory chronic cough. Since the presentation isn’t until the weekend, it’s important to understand that speculation could play its part.
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Catherine Bonuccelli, M.D., Chief Medical Officer of BELLUS Health, said in a PR last week that “In our Phase 2a RELIEF trial, we observed improvements in cough severity and quality of life over a 16-day treatment period that favored our P2X3 antagonist, BLU-5937. These positive trends suggest that over a longer period of time, BLU-5937 may show greater treatment benefit. We are encouraged by these results, and based on the design of our ongoing Phase 2b SOOTHE trial, we are confident that we can demonstrate improvements in cough severity and quality of life.”
In addition to the RELIEF data, BELLUS also expects to conduct an administrative interim analysis in September of its ongoing Phase 2b SOOTHE trial of BLU-5937 in refractory chronic cough. No formal date was discussed in an August 11th update discussing this event. But it may be important to account for, nonetheless.
CTI BioPharma Corp. (NASDAQ: CTIC)
Another one of the penny stocks to watch for September with upcoming events is CTI BioPharma. CTIC stock saw a strong surge late last year. Since jumping from around $1 to over $3, the penny stock has held a relatively consistent channel between $2.25 and $3.25. One of the core points of focus for the market is on the company’s targeted treatments for certain blood-related cancers. Its lead treatment, pacritinib, is being developed for patients with myelofibrosis and severe COVID-19.
Last week, the company and DRI Healthcare Trust announced a deal worth up to $135 million in debt and royalties. Under the agreement, CTI will be funded to commercialize the treatment specifically for myelofibrosis patients. There’s a New Drug Application already under review with a PDUFA target date of November 30th. While that is something to keep track of down the road, there are more immediate dates to account for.
What To Watch With CTIC Stock
CTI is set to present more data “this quarter.” But considering September marks to end of Q3, it could be worth noting. In particular, the company plans on reporting interim analysis from a Phase 3 PRE-VENT trial in hospitalized patients with severe COVID-19. Once again, pacritinib is the treatment in focus, so with Q3 coming to an end, September could be an important month for CTI.
Pieris Pharmaceuticals (NASDAQ: PIRS)
This year has been a banner year for Pieris Pharmaceuticals. The biotech stock was rocked during the first 5 months of 2021 but has gone on to test new 2-year highs. The company’s Anticalin technology platform is in development for respiratory diseases, cancer, and other treatment indications. Most recently, Pieris reported an earnings and sales beat in its latest quarterly report.
The company explained that Q2 was very productive as it was able to beef up its cash balance with non-dilutive funding. The company also buttoned up a partnership with Genentech to further expand its respiratory and ophthalmology offerings. The company’s PRS-220 is built on the Aticalin platform and is an inhaled respiratory treatment being evaluated in post-COVID pulmonary fibrosis.
Aside from these highlights, Pieris has a slew of other line items to keep tabs on. Namely, its PRS-060 treatment in combination with AZD1402 from AstraZeneca is being developed for treating moderate-to-severe asthma. The company is also collaborating with Servier with its PRS-344/S095012 combination treatment for HER2-expressing cancers. Pieris will begin a phase 1 trial later this year.
What To Watch With PIRS Stock
Of course, the milestones to watch down the road this year aren’t to be pushed aside. However, there are more near-term things to take into account with PIRS stock. In particular, on September 5th, the company presents preclinical data for PRS-220 at the European Respiratory Society International Congress. In this presentation, data for PRS-220 will be presented on its potential treatment of idiopathic pulmonary fibrosis.
ObsEva (NASDAQ: OBSV)
The last few weeks have been big ones for ObsEva. This came as the company reported earnings and gave an important business update on current and upcoming milestones. ObsEva focuses on treatments to improve women’s reproductive health. Its Yselty (linzagolix) platform has been put through the paces in indications like uterine fibroids as well as endometriosis. ObsEva’s ebopiprant has also become a hot button for the market after securing a global license agreement with Organon.
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Brian O’Callaghan, CEO of ObsEva, said, “This partnership is an important validation of ObsEva’s ability to generate value, and we view Organon as the ideal partner for the development and commercialization of ebopiprant to address the significant unmet need in preterm labor. In parallel, we remain laser-focused on advancing linzagolix through the regulatory approval process and preparing for its commercialization. We look forward to providing additional updates in the near future.”
What To Watch With OBSV Stock
The company plans to file a New Drug Application in the US this quarter for linzagolix in uterine fibroids. The company is also working closely with the European Medicines Agency to gain marketing approval with an approval recommendation projected next quarter.
Avalo Therapeutics Inc. (NASDAQ: AVTX)
Formerly known as Cerecor, Avalo Therapeutics continues developing treatments for immunologic, oncologic, and rare genetic disorders. In a recent update discussing this change of structure and name, Michael F. Cola, President and Chief Executive Officer of Avalo Therapeutics, commented, “We are excited to continue the advancement of our programs, including our recent expansion of AVTX-002, a promising first-in-class monoclonal antibody, into moderate-to-severe ulcerative colitis refractory to anti-TNF alpha therapies. As we enter this exciting period of our corporate journey, we look forward to the numerous data readouts in the second half of 2021.”
With this as the backdrop to “what to watch,” understand that there may be more than just the immediate future to keep in mind. Data readouts can become a major driver for directional moves in the market. That goes for both breakouts and breakdowns, depending on the results. In this case, there is a near-term event to keep in mind heading into the new month.
What To Watch With AVTX
Cerecor’s CER-006 and CER-007 have data due this quarter. As announced earlier this month, CER-006, for instance, is being developed for lymphatic malformations. Initial data from a Phase 1b proof-of-concept clinical study is due out. Furthermore, CERC-007, in development for Still’s disease, among other indications. It also has top-line data from a Phase 1b trial due this quarter. With Q3 winding down, it could be an important month ahead for Avalo.
Are Penny Stocks Worth It?
It’s an easier question to answer if you know how to trade penny stocks in the first place. As they say, knowing is half the battle. But just because companies like these tell you when to expect updates, that’s no guarantee that the details will support a bullish market. Nevertheless, understanding what to look for and when to look for it can be very helpful when looking for more than just the latest round of short-squeeze stocks. Now that you’ve got a bit more info, will any of these biotech penny stocks be on your list in September?
