Penny stocks are shares of companies trading for less than $5, which makes them excellent targets for day traders. Their lower price also makes them ideal for some investors to want to leap at potentially grassroots opportunities. While the latter is few and far between, the former is something we see daily.
Trading penny stocks is standard and can be very lucrative if you know what you’re doing. The first step is putting together a watch list of some names you feel are interesting and some reasons why. This article looks at a few biotechnology penny stocks that have gained momentum in the stock market today.
Despite this being a shortened week for US stocks, it hasn’t stopped traders from hunting for opportunities. So let’s see what’s going on with these companies, recent catalysts, and any potential future catalysts to look for. Once we see the whole picture, you can decide if they earned a spot on your watch list or not.
5 Biotech Penny Stocks To Watch
- Ensysce Biosciences Inc. (NASDAQ: ENSC)
- CytomX Therapeutics (NASDAQ: CTMX)
- NeuroOne Medical Tech (NASDAQ: NMTC)
- Nexalin Technology Inc. (NASDAQ: NXL)
- Taysha Gene Therapies Inc. (NASDAQ: TSHA)
Ensysce Biosciences Inc. (ENSC)
Shares of Ensysce have gained a lot of momentum over the last week compared to weeks prior. This was thanks, in part, to FDA guidance on the clinical development pathway for its PF614 acute pain platform. According to CEO Dr. Lynn Kirkpatrick, the company plans to pursue clinical development as a competitive therapy to traditional drugs, including OxyContin.
PF614 is being developed using Ensysce’s Trypsin Activated Abuse Protection (TAAP) platform. TAAP is designed to be resistant to tampering and abuse and is a “unique chemical modification creating a new generation of opioid pain products,” according to the company.
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No other headlines were released this week, but shares of ENSC stock surged during Monday’s premarket session. However, a filing came out on Friday showing an amended S-1 registration to sell shares at an assumed combined public offering price of $2.37 per share. Whether or not this was the catalyst behind the recent bullishness is to be seen. But for now, ENSC could be on the list of penny stocks to watch this week.
CytomX Therapeutics (CTMX)
Another one of the biotech penny stocks to watch is CytomX Therapeutics. The oncology treatment development company’s shares have surged since its November 17th update. It announced a strategic research collaboration with Regeneron (NASDAQ: REGN) in bispecific therapeutics in treating cancer.
The deal will allow the two to develop immunotherapies leveraging CytomX’s Probody and Regenera’s Veloci-Bi platforms. CytimX also receives a $30 million upfront payment with the potential for up to $2 billion in R&D, regulatory, and sales-based milestones.
Commenting on the new collaboration, John Lin, M.D., Ph.D., Senior Vice President, Immuno-oncology and Head of Bispecifics at Regeneron, explained, “This collaboration will enable Regeneron and CytomX to combine our collective oncology expertise with two premier platforms – Probody and Veloci-Bi – to develop novel immunotherapies and research their potential to transform patient lives.”
Despite no further updates from CytomX or Regeneron, CTMX stock has been red hot the last few sessions.
NeuroOne Medical Tech (NMTC)
This week NeuroOne Medica shares jumped after company CEO Dave Rosa was featured on Fox Business Network’s Mornings with Maria. Rosa discussed the company’s outlook in building its neuroscience platform using thin film electrode technology.
A recent milestone to note is NeuroOne’s Evo sEEG Electrode received FDA 510(k) clearance to market for temporary use. As discussed above, we’re looking for current and future potential catalysts. In this case, NeuroOne outlined upcoming business catalysts in its latest update. Upcoming catalysts include the market launch of NeuroOne’s Evo sEEG diagnostic electrode line and progress on a new RF ablation system in development. This is the company’s first therapeutic electrode technology.
With this backdrop, NMTC has hit the scanners of some traders in the stock market today. Monday’s trading volume was significantly higher than average, and one-day price movement was much more robust following the Fox Business spot.
Nexalin Technology Inc. (NXL)
Days after announcing the publication of a white paper regarding its tACS device, Nexalin Technology shares have exploded. The white paper validated tACS for treating generalized anxiety disorder.
CEO Mark White also discussed the platform’s prospects in an update last week.
“The adoption of our medical device is poised to enhance mental healthcare as medical providers learn that our neurostimulation technology offers a proven alternative to psychiatric drugs…We intend to bring our expertise to treatment applications, such as substance use disorder (SUD), Alzheimer’s, and chronic pain. Our mission is to aggressively expand market awareness of our breakthrough technology around the world.”
Last year the device was approved in China by the National Medical Products Administration for insomnia and depression.
In addition to the recent milestone, NXL stock is on the watch of traders looking for low-float penny stocks. Considering the total outstanding share count is under 8 million, the float is considered very low, with some outlets pegging it around 5-6 million. If NXL stock is on your watch list for that reason, understand that low-float penny stocks can be significantly volatile.
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Taysha Gene Therapies Inc. (TSHA)
Gene therapy company Taysha Gene Therapies has maintained its gains for nearly a month. An initial pop in momentum came after an October update regarding a significant investment from Astellas Pharma.
In particular, Astellas agreed to invest $50 million to acquire 15% of the company to support progress in Taysha’s adeno-associated virus gene therapy programs. The programs are in development for treating patients with Rett syndrome and GAN.
The investment also allowed Astellas to license Taysha’s TSHA-102 for Rett syndrome and TSHA-120 for GAN. Naoki Okamura, Chief Strategy Officer at Astellas, pointed out in the October update that “Taysha is an industry leader in CNS gene therapies, and this partnership fits strategically with our long-term vision of expanding Astellas’ gene therapy capabilities, allowing the company to impact the lives of a broader range of patients with urgent unmet medical needs.”
Despite some jockeying in analyst price targets, most ratings remain high for Taysha. Chardan Capital maintains a Buy on TSHA with a price target of $16. Meanwhile, Needham and JMP Securities have Buy and Outperform ratings with targets between $16 and $20. It will be interesting to see how this strategic investment plays out for Taysha heading into the remainder of the year.
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