The stock market is getting smoked today, and many penny stocks haven’t been immune to this either. Shocking jobs figures reported during premarket hours added to growing concerns. On Friday, the November jobs report showed that just 210,000 jobs were added last month. This didn’t compare to estimates of over 500,000 that Wall Street had expected.
Meanwhile, the jobless rate fell to 4.2%, one of the best during the pandemic era. Now investors weigh comments from the Federal Reserve on its stance of easing bond-buying to help the economy. These latest concerns also weighed against an already fragile market.
Why The Stock Market Is Down Today
Thanks to the continued spread of the new Omicron variant, some of the market is getting a bit of PTSD from back in 2020. There are still insufficient data available. However, early reports suggest that this new variant isn’t as severe as previous versions seen during the last few years.
Against this backdrop, more questions have come about as to the hawkish comments from Fed Chair Powell. He has discussed removing the word “transitory” from the Federal Reserve’s discussion on inflation. One of the hardest-hit sectors in the stock market today was biotech. Look at the S&P Biotech ETF (NYSE: XBI), and you’ll see what I mean. Not only has this ETF slid for the last month, this week, but the XBI also reached new 2021 lows. How bearish is biotech right now?
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If you use the ETF as a reference, only 6 out of the 22 trading days between November and December 3 have seen XBI close higher than it opened. But if you look at a few penny stocks, you might not think it’s time to pull the fire alarm quite yet. Today we’ll take a closer look at 3 making a completely different move in the stock market today.
Biotech Penny Stocks To Watch
- CTI Biopharma Corp. (NASDAQ: CTIC)
- Cidara Therapeutics (NASDAQ: CDTX)
- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX)
CTI Biopharma Corp. (NASDAQ: CTIC)
You’ll hear people say, “The Trend Is Your Friend,” but in this case, going against the trend seems pretty friendly right now as far as CTI Biopharma is concerned. Shares of the biotech penny stock pulled a complete 180 on December 3. This came as a warm welcome from traders who’ve watched CTIC stock freefall the last few sessions.
Since the start of the week, shares dropped from over $2.80 to as low as $1.43 after CTI reported an extension for FDA review of its pacritinib in myelofibrosis patients with severe thrombocytopenia. The new Prescription Drug User Fee Act date was pushed to next February.
This year the FDA granted priority review for CTI’s New Drug Application with November 30 set as the original PDUFA date. This was taken as a bearish catalyst, and CTIC stock dropped heavily during the week. Now, heading into the second week of December, the market appears to be looking ahead.
If CTIC stock is on your list right now, December 6 will be an important date to keep in mind. This is when CTI presents at the JMP Securities Hematology & Oncology Summit. In light of this, it looks like some speculative bullishness has come into play, with shares rebounding more than 20% from Thursday’s lows.
Cidara Therapeutics (NASDAQ: CDTX)
Shares of Cidara haven’t bounced as much as CTI. However, it doesn’t change that the 5% move in CDTX stock today has outpaced the broader biotech sector. Cidara specializes in long-acting therapeutics for an improved standard of care for patients. In particular, its lead candidate, rezafungin, is in Phase 3 and is an antifungal treatment. Cidara is also developing a viral and oncology disease treatment platform, Cloudbreak.
It just so happens that the Cloudbreak platform has been used in developing drugs to treat influenza. Whether or not some speculation from COVID stocks has spilled over into companies developing influenza treatments is to be seen. However, with the uptick in Omicron cases globally, CDTX stock seems to have held a slight uptrend over the last week.
Heading into the rest of 2021, the company expects to report top-line data from its rezafungin Phase 3 trial by year-end. Furthermore, Cidara anticipates filing a New Drug Application by the middle of 2022. As far as its influenza treatment is concerned, there are also plans for submitting an Investigational New Drug application for its CD388 before 2022, with the first patient dosing in a Phase 1 trial during the first half of next year.
With several key milestones still to look forward to, CDTX stock could be one to watch in December.
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Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX)
Finally, Cumberland Pharmaceuticals remains on the list of penny stocks to watch. We’ve covered the company for the last few sessions thanks to moves made in the stock market this week. The initial movement began after Cumberland reported that the FDA approved expanded labeling of its Caldolor IV ibuprofen product.
Dr. Stephen Southworth, an orthopedic surgeon at the Orthopedic Institute of North Mississippi, explained that “Caldolor® administered pre-operatively should be considered in Enhanced Recovery After Surgery (ERAS) protocols for the management of postoperative pain including that of traumatic origin. When administered immediately prior to surgery, patients given Caldolor experience less postoperative pain and a decrease in their opioid use.”
This headline seems to have remained a focus for the market as CPIX stock continues gaining ground. Furthermore, in light of the new Omicron variant, it may be helpful to know that Cumberland’s Vibativ (telavancin) has some COVID-related success. In June, the company released a series of case studies. These outlined that Vibativ in treating secondary bacterial infections in infected patients was effectively and safely administered. Dr. Joseph Reilly, a clinical pharmacist specialist for infectious disease and critical care at AtlantiCare Regional Medical Center in Pomona, N.J., provided two COVID-19 patient cases for the dossier. He also explained in a June release that “These cases illustrate the clear need for an antibiotic like telavancin, which rapidly and effectively eradicates secondary bacterial pneumonia that can develop in patients with COVID.”
At the start of the week, shares of the biotech penny stock were trading below $2.30. As of Friday’s session, CPIX stock sits north of $4.
Is The Trend Always Your Friend?
More times than not, this saying holds. But as you see, it isn’t always the case. It’s important to dive deeper than broad trends to find opportunities. In light of this, CTI, Cidara, and Cumberland have all outpaced the biotech sector this week. Will that trend continue? Drop a comment below with your thoughts.
