Given the breakdown in the stock market this year, some of the “cutting edge” industries have taken it on the chin. But few have dropped as much as biotech has in 2022. But, as with most growth stocks, the latest bull market trend has given a nice boost to some of these names, and penny stocks are in focus. Whether it’s developing novel treatments for cancer or bringing commercializing nutraceutical products, the reach within this niche is broad. With that, it’s essential to know how to identify the right trends at the correct times, and I’ll explain what I mean in this article.
Biotech Penny Stocks To Watch
- Kiora Pharmaceuticals (NASDAQ: KPRX)
- Ra Medical Systems (NYSE: RMED)
- Humanigen Inc. (NASDAQ: HGEN)
- Bone Biologics Corp. (NASDAQ: BBLG)
How To Find The Best Penny Stocks To Buy Now
If you’ve identified a broad sector trend like biotech, the next step is putting together your watch list. Penny stocks are known for wild volatility and propensity to move in sympathy with other companies. For example, if a handful of cancer stocks are experiencing explosive gains, then retail traders may seek out companies using the same type of therapy.
Similarly, if the more significant trend involves low float biotech penny stocks, it may be worth looking at companies with smaller market caps and lower floats. Today, we look at the bigger picture in biotech and several penny stocks trading higher as the market attempts to rebound.
Kiora Pharmaceuticals (NASDAQ: KPRX)
Shares of KPRX stock shot up during the lunch hour on March 17th. Kiora Pharmaceuticals hit scanners after a surge of unusual volume triggered a mid-day move, seemingly without notice or any clear news headline. Kiora is a low float biotech penny stock, and the company specializes in treatments for ophthalmic diseases.
You might remember the company from earlier in the month when we discussed it after a new series of analysts weighed in on the company. In particular, Maxim Group initiated coverage on KPRX stock this quarter with a Buy rating. It also set a price target of $2.50. Since there weren’t any headlines prompting the move, a deeper look at a potential catalyst was warranted, and come to find out, KPRX stock may have jumped concerning new FDA findings.
A quick look at the FDA’s website shows that Kiora sponsored an Orpha Designation for Benzyl ethyl aminoazobenzene quaternary ammonium in the treatment of Retinitis Pigmentosa. On the form (below), you’ll see that “Orphan Designation Status” shows as “Designated” and is accompanied by today’s date (March 17th).
Ra Medical Systems (NYSE: RMED)
Since late February, Ra Medical Systems has been one of the top biotech penny stocks to watch, still trading below $1. Believe it or not, RMED stock has now managed to bounce back by more than 50%. The company develops vascular disease lasers and has been in focus after reports its approval from the FDA. This related to expanded enrollment from 100 to 125 subjects in its DABRA excimer laser system trial. It’s under evaluation as an atherectomy device in peripheral arterial disease.
In addition to this, upcoming catalysts could have also come into consideration. Specifically, next week marks when Ra releases its Q4 and full-year financials for 2021. Investors may look to see how the company has progressed, given in its previous quarterly update. In its Q3 report, management explained, “we advanced our engineering efforts to develop more robust, deliverable DABRA catheters, and we continue to expect to submit an application to the FDA next quarter seeking regulatory clearance for the first next-gen catheter…I continue to be excited about our research work showing the DABRA laser system can be utilized to create shockwaves of sufficient magnitude to fracture calcium in arteries, commonly referred to as intravascular lithotripsy, which we believe represents a potential to create significant shareholder value.”
Given the upcoming results (March 23rd), RMED stock could be one to watch right now.
Humanigen Inc. (NASDAQ: HGEN)
Like Ra, Humanigen has slowly but steadily bounced back from its earlier lows. The company’s specialty is treating “cytokine storm,” which is a frequent side effect of different immunotherapy treatments. The most recent focus of the market has been on the company’s lenzilumab (LENZ) treatment platform. Humanigen is developing it to address unmet needs in COVID patients. The company recently highlighted the milestones reached in its year-end update earlier this quarter.
Humanigen finished a phase 3 study of LENZ in COVID-19, LIVE-AIR, and published positive results from the study in The Lancet Respiratory Medicine journal. “We look forward to the announcement of the topline data from a second Phase 2/3 study of lenzilumab in COVID-19, the ACTIV-5/BET-B study conducted by the National Institutes of Health, in late Q1 or early Q2,” explained CEO Cameron Durrant in that update.
March has also become an active month for insiders. From the second through the 11th, management, including Humanigen’s CEO, CCO, CMO, and CSO, all purchased shares of HGEN stock. Average prices ranged between $2.32 and $3, with Humanigen’s CSO making the most notable purchase at 1 million shares.
Bone Biologics Corp. (NASDAQ: BBLG)
Finally, Bone Biologics joins this list of penny stocks as the lowest volume name of the bunch. However, Thursday’s uptick in price has placed it on the radar of some traders. As another low float penny stock, it hasn’t needed much volume to see significant momentum in the stock market today. With fewer than 1 million shares traded as of this article, BBLG stock is up over 20%. The company develops products for spine fusion. In particular, it is working on a bone graft substitute product.
Earlier this month, the company signed a supply agreement with MTF Biologics to provide material for a planned 30-patient pilot study. Commenting on the deal, Jeff Frelick, chief executive officer, explained that “This DBM supply agreement is an important milestone that allows us to advance rhNELL-1 for the $3 billion spine fusion market, with the goal of developing a product with compelling features and benefits versus existing commercial products.”
Thanks to more attention on both low float and biotech penny stocks, BBLG could be one to watch.
Best Penny Stocks To Watch Right Now
Ultimately the choice is yours whether or not stocks like these become part of your watch list. Emerging trends among retail traders have focused on industries including biotechnology this week. Furthermore, the low float trend remains a go-to for those looking to take advantage of high volatility. When it comes to finding the best penny stocks to buy, make sure you’ve got a good grasp on trading basics and know how to navigate these market trends properly.
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