If you’re trying to make sense of the stock market today, you’re not alone. July Fed meeting minutes came out. Though they echoed a somewhat dovish tone, investors took caution as the first move with the S&P, Dow, and Nasdaq all retreating from their recent highs. With more economic data out regarding employment, traders remain risk-off (for now).

Interestingly, penny stocks haven’t reacted that way at all. In fact, after a string of massive breakouts over the last month, thanks to companies like Bed Bath & Beyond, AMTD Digital, ToughBuilt, and many others, stocks under $5 are the flavor of the retail market.

Today we look at some of the most volatile in the biotech industry. Speculation is always at the top of mind. There are phase trials, interim data, topline results, and FDA headlines constantly fueling this market niche. With that comes plenty of reactions, both bullish and bearish. Thanks to attention on BBBY stock, new developments have emerged suggesting that a 20-year-old trader banked $100 million and now set sites in the biotech arena alongside his uncle.

Biotech Penny Stocks Get Boost From BBBY Stock $110 Million Windfall

In an update from Financial Times, the target company that this trader is looking at is MindMed Inc. (NASDAQ: MNMD). In an interview, Jake Freeman, a 20-year-old student, said, “I did not expect the price to soar as it did…I did expect that as BBBY better structured its balance sheet for value to be unlocked. I felt at those elevated levels, BBBY was not worth it from a risk/reward standpoint.”

According to the FT, Freeman and his uncle Dr. Scott Freeman, a former pharmaceutical executive, recently amassed an activist stake in pharmaceutical company MNMD stock. We discussed this activity stake specific to his uncle earlier this month in the article: 5 Penny Stocks To Buy For Under $5. Dr. Freeman, coincidentally, was a co-founder of MindMed.

This bullishness has placed an emphasis on biotech penny stocks to watch today.

Penny Stocks To Watch

  • Seelos Therapeutics Inc. (NASDAQ: SEEL)
  • Cybin Inc. (NYSEAMERICAN: CYBN)
  • Bright Minds Bioscienses Inc. (NASDAQ: DRUG)
  • Cyclacel Pharmaceuticals (NASDAQ: CYCC)

Seelos Therapeutics Inc. (NASDAQ: SEEL)

psychedelic penny stocks to buy Seelos Therapeutics SEEL logo

The theme so far has been psychedelic stocks to watch. Seelos Therapeutics is one that has steadily climbed for the last 3 months. Thanks, in part to new developments with its drug pipeline, SEEL shares are up more than 100% in that period.

This week, SEEL stock is on the radar following the MNMD stock news. What’s more, traders have circulated other details and progress in the company including the recent dosing of its first patient in a basket study of its SLS-005 platform. The candidate is being studied for the treatment of patients with amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease).

So where do psychedelics come into the picture? Its SLS-002 and SLS-003 are its ketamine-based treatments. In its own words, Seelos describes the treatments as follows:

  • SLS-002 Has the Potential to Transform the Treatment of Acute Suicidal Ideation and Behavior (ASIB) in Major Depressive Disorder (MDD) and Post-Traumatic Stress Disorder (PTSD)
  • SLS-003 (sublingual ketamine wafer) focus in chronic indication where sublingual delivery is better suited and continue developing SLS-002 (intranasal racemic ketamine) in the acute setting such as ASIB in MDD.

With growing interest in psychedelic stocks today, SEEL could be on the list of penny stocks to watch.

Cybin Inc. (NYSEAMERICAN: CYBN)

best penny stocks to buy Cybin Inc CYBN stock logo

Shares of Cybin have steadily climbed since hitting 52-week lows in May. The psychedelic treatment company was recently granted a license alongside Clinilabs for its CYB003 Phase 1/2a first-in-human clinical trial. This Schedule I DEA License allows the companies to obtain support for the study in using psilocybin analog for treating major depressive disorder.

“Obtaining a DEA license for our Phase 1/2a trial is the final step clearing the way to begin dosing participants in our first-in-human study of CYB003. Our rigorous recruitment and enrollment process is well under way, and we are excited to commence dosing of our first cohort of participants,” said Doug Drysdale, Chief Executive Officer of Cybin in an August update.

The update came at a time where psychedelic stocks have woken up thanks to the Freemans’ stake in MNMD stock.

Bright Minds Bioscienses Inc. (NASDAQ: DRUG)

best penny stocks to buy Bright Minds Biosciences DRUG stock logo

Bright Minds Biosciences exploded in the stock market today. The neuropsychiatric disorder treatment company has quietly traded sideways for the better part of the last few months. But this week shares surged following more attention on psychedelic stocks, thanks to MindMed.

The company specializes in drug development designed to leverage therapeutic aspects of psychedelics and serotonergic compounds. Its recent catalysts include a management shakeup and the departure of Dr. Alan Kozikowski as Chief Scientific Offer earlier this summer.

But it may be safe to say that the big move for DRUG stock has more to do with industry sentiment than anything else. In addition, the psychedelic stock is also a low float name as most outlets put this figure below 10 million shares. In this case, it isn’t a bad idea to know how to handle volatile trading trends. With low float penny stocks, the moves lower can happen just as quickly as the spikes higher.

[Read more] Cheap Penny Stocks to Buy Now? 3 To Watch in August

penny stocks to trade Cyclacel Pharmaceuticals (CYCC)

Cyclacel Pharmaceuticals (NASDAQ: CYCC)

Unlike SEEL, DRUG, and CYBN stocks, Cyclacel is working in another area of the biotech industry. The company develops medicines based on cancer cell biology and is currently enrolling in phase trials for some of its candidates.

CYCC shares have been on the move ever since Cyclacel released its latest round of earnings. Optimism has stemmed from the company’s outlook on its treatment pipeline. Spiro Rombotis, President and Chief Executive Officer of Cyclacel expanded on the company’s outlook in an August update.

“In the second half of 2022, we are optimizing the dosing schedule to maximize target coverage and determine recommended Phase 2 dose (RP2D). We then anticipate advancing into Phase 2 proof of concept stage of 065-101. We believe that daily dosing of oral fadraciclib targeting both CDK2 and CDK9 at efficacious doses without dose-limiting toxicities may represent best-in-class properties.”

Rombotis also explained that additional clinical and preclinical data will be reported at an upcoming R&D Day for both fadraciclib and CYC140, which is also in a Phase 1/2 study.

While no official date was mentioned, R&D day is planned for this fall. Keep that in mind if CYCC stock is on your watch list right now.

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