3 Biotech Penny Stocks That Exploded During Today’s Trading Session
If you’ve traded penny stocks or blue chips in the past few months, you’re likely used to the high degree of volatility that we’re witnessing right now. Despite the day starting poor for the broader market with the Dow dropping by around 300 points, a small rebound is occurring right now. To understand why this is all happening, we have to take a closer look at the current state of the stock market and penny stocks specifically.
The main factor that is impacting all stocks is the rise of the Omicron variant. While initial studies are showing that this variant could be less severe than previous ones, the rate at which it is spreading is still alarming. As a result, some investors have turned to more conservative penny stocks and blue chips as a way to hedge bets against future uncertainty. On top of this, the pandemic has put a major focus on biotech stocks of all types. For that reason, we’ve seen the biotech industry receive a large amount of attention in the past year or so.
In addition to Covid, we also have to consider the current economic conditions that are plaguing the U.S. This includes high inflation and fear surrounding what the next few years could look like. Because of this, we see that the extreme volatility we’re witnessing is more than warranted. But, as penny stocks traders, volatility is something that can be used as an advantage. So, with all of this in mind, let’s take a look at three biotech penny stocks that exploded today and why.
3 Biotech Penny Stocks to Watch That Exploded Today
- Bellerophon Therapeutics Inc. (NASDAQ: BLPH)
- Genfit SA (NASDAQ: GNFT)
- X4 Pharmaceuticals Inc. (NASDAQ: XFOR)
Bellerophon Therapeutics Inc. (NASDAQ: BLPH)
One of the biggest gainers of the day is BLPH stock, which shot up by over 28% at midday. While many gains like this occur without news, BLPH made an exciting announcement during pre-market trading today. Before we get into that, let’s take a look at what Bellerophon does.
Bellerophon is as its name may suggest, a clinical-stage biotherapeutics company working on the development of new and innovative therapies for clinically unmet needs. This includes the field of cardiopulmonary disease and more. Right now, the majority of its products are in development in its INOpulse program. This is a pulsatile nitric oxide delivery system that is proprietary.
Why is BLPH Stock Up Right Now?
On Friday, December 17th, Bellerophon announced positive top-line data from its Phase 2 acute dose-escalation study of INOpulse. This study is evaluating the potential of this compound in treating pulmonary vascular resistance.
“We are pleased with the positive top-line data from this proof-of-concept study. Based on these results, Bellerophon is working with its steering committee, which is comprised of multiple pulmonary disease experts, to assess next steps for this program.”The Chairman of the Board at Bellerophon, Naseem Amin, M.D.
This is big news for the company and is a clear reason for today’s sizable uptick in price. Considering that, will BLPH be on your list of penny stocks to watch?
Genfit SA (NASDAQ: GNFT)
Another big gainer of the day so far is GNFT stock, shooting up by over 40% at midday. Again, gains like this can occur without news, however, GNFT put out an interesting press release before the market opened on December 17th. As another biotech penny stock, Genfit is working in the field of chronic liver diseases. It is considered a pioneer in nuclear-receptor-based drugs, and has a long history of researching and creating novel compounds. Currently, the company has offices in both the U.S. and Europe, vastly broadening its reach.
Why is GNFT Stock Up Right Now?
Today, Genfit announced that it has acquired the exclusive rights from Genoscience Pharma to develop and commercialize a compound known as GNS561 in those who have cholangiocarcinoma. This compound will be studied in the U.S., Canada, and Europe and is a part of its larger global pharma partnership strategy.
“This licensing agreement with Genoscience Pharma comes as an immediate follow-up to the global strategic partnership announced today. Proceeds from this strategic acquisition will strengthen the trajectory of our long-term growth and pipeline expansion, which is exemplified by the acquisition of GNS561’s rights in cholangiocarcinoma.”The CEO of Genfit, Pascal Prigent
While the fruits of this deal will likely not come for some time, there’s no doubting the excitement surrounding the announcement. And after some disappointing performance in the past YTD period, today’s move is a welcomed one. With that in mind, will GNFT be on your penny stocks watchlist moving forward?
X4 Pharmaceuticals Inc. (NASDAQ: XFOR)
After shooting up by over 26% any midday, shares of XFOR stock managed to correct by 1 PM EST. Despite this, the company has put out some exciting news in the past few days that is worth noting. Before we get into it, investors should understand that XFOR stock has not had the best year so far. But, some believe that at its current price, XFOR stock could be trading at value levels.
If you’re not familiar, X4 Pharma is a late-stage biopharmaceutical company working on the development of novel therapeutics for immune system-related issues. This includes its lead product candidate, mavorixafor, for the treatment of a wide range of diseases including immunodeficiencies and cancer.
Why is XFOR Stock Up Right Now?
On Monday, December 13th, X4 announced data highlighting the potential of mavorixafor in its ongoing Phase 2 open-label extension trial for WHIM syndrome. This was followed by a virtual seminar on Thursday, December 16th. In the study presentation, the company states that the compound is well tolerated and has durable increases in several key indicators of disease reduction.
Additionally, the company states that infection rates decreased substantially as the dose of mavorixafor increased. So, while this is not a be-all-end-all announcement, it is worth considering. Whether this makes XFOR stock worth buying or not, however, is up to you.
Which Biotech Penny Stocks Are You Watching Right Now?
If you’re making a list of the best biotech penny stocks to watch, there are plenty to choose from. However, because there is such a long list of penny stocks to buy, investors need to be picky and select the best ones for them.
Investing is a very individual task and involves understanding your tolerance for risk and the stocks you plan to buy and sell. Considering all of this, which biotech penny stocks are you watching right now?