Penny Stocks, News, & Market Momentum This Week
This is the first full week of the New Year and one that many investors will be focused on. Not only will we see Federal Reserve Chair Jerome Powell’s first major speech of the year, but there’s also no time wasted for the first significant economic data readout.
This week will see the next round of CPI inflation data and global economic data, including Tokyo CPI and UK GDP. You also can’t discount central bankers speaking throughout the week as the market speculates how inflation and a looming recession will play out in 2023.
Regardless of what broader markets do, penny stocks remain a go-to for traders and some investors looking to take advantage of volatility. In the stock market today, there’s no shortage of wild swings. But even if the stock market goes down, you’re likely to find numerous stocks under $5 making big moves to the upside.
Finding Penny Stocks To Watch
If high-risk and high volatility doesn’t scare you, the next step is finding penny stocks for your watch list. One of the quickest ways that many use is by looking at PR wires in the morning and after the market closes. Some of the busiest times of the day are premarket when companies are scrambling to release their latest updates and report on new milestones.
This article looks at a handful of penny stocks with news gaining ground before Monday’s opening bell. We dive into what they announced and search for any future milestones (if any) that could be something to keep in mind if they’re on your radar.
Ocugen Inc. (OCGN)
Shares of gene and cell therapy company Ocugen shot up during Monday’s premarket session. The company made headlines in mid-December thanks to FDA-related news. Ocugen said that the FDA agreed to its proposed design of a Phase 3 trial for knee cartilage repair therapy. The company plans to file an Investigational New Drug amendment to begin clinical trials in late 2023/early 2024. But that isn’t the reason for this week’s early momentum.
OCGN Stock News
Ocugen started the week off by announcing positive top-line data. This was from its Phase 2/3 immuno-bridging and broadening study for its COVID-19 vaccine candidate COVAXIN. It was well-tolerated and didn’t result in any vaccine-related serious adverse events.
Dr. Shankar Musunuri, Chairman, Chief Executive Officer, and Co-Founder of Ocugen, explained, “Given that a portion of the public remains hesitant to receive mRNA vaccines, this investigational COVID-19 vaccine candidate, which relies on a well-established approach to vaccine development and manufacturing, may provide an important additional vaccine option.”
Context Therapeutics Inc. (CNTX)
Something you’ll find thematic of this list of penny stocks is that they’re all biotech-related companies. It’s typical of the industry, thanks to plenty of different aspects of the clinical development process and regulatory environment. Context Therapeutics is no different. The company focuses on developing treatment candidates for solid tumors and has been on the move since it posted last week’s corporate priorities update for 2023.
CNTX Stock News
This week continued the trend as Context announced a manufacturing agreement. Context and Lonza will collaborate to manufacture the company’s CTIM-76, designed for targeting CLDN6-positive tumors. Lonza will support the development and manufacturing of the drug and lean on the company for other things, including its regulatory competence and manufacturing network.
Sonnet Biotherapeutics (SONN)
Another one of the biotechnology penny stocks to watch at the top of the week is Sonnet Biotherapeutics. The company develops immunotherapies and also announced a collaboration agreement on Monday.
SONN Stock News
Sonnet and Roche will team up for the clinical evaluation of Sonnet’s SON-1010 with atezolizumab in ovarian cancer. Atezolizumab is better known by its trade name, TECENTRIQ, which is Roche member Genentech’s cancer treatment. According to the update, “Sonnet will sponsor the clinical study in patients with platinum-resistant ovarian cancer, scheduled to commence during the second calendar quarter of 2023, and Roche will supply atezolizumab.”
With more near-term timing considering a Q2 commencement, SONN stock has gained some added attention in the stock market today. Richard Kenney, M.D., Sonnet’s Chief Medical Officer, also mentioned, “The induced immune responses can make this relatively ‘cold’ tumor immunologically ‘hot’. Ovarian cancer patients who are resistant to platinum compounds have very few options for successful treatment. This combination provides a novel alternative that may improve their rate of response.”
Instil Bio Inc. (TIL)
TIL stock caught a much-welcomed boost of momentum in the stock market today. The jump comes after recently hitting fresh 52-week lows right before the New Year. Instil specializes in developing cancer therapeutics. Its “tumor-infiltrating lymphocyte” or ‘TIL’ platform is the centerpiece of its model.
TIL Stock News
This week, TIL stock pulled an about-face after announcing the resumption of a clinical trial. Its Phase 1 trial of ITIL-306 in multiple cancers re-opened enrollment after a volunteer pause. ITIL-306 will be studied in a trial targeting non-small cell lung cancer, ovarian cancer, and renal cell carcinoma. The company expects to release the first round of safety and efficacy data this year.
Kronos Bio Inc. (KRON)
Another cancer treatment development company, Kronos, caught some of the spotlights on Monday. The company is developing a drug candidate, KB-0742, to treat MYC-amplified solid tumors and develop lanraplenib for patients with relapsed/refractory myeloid leukemia.
KRON Stock News
This week Kronos announced a discovery collaboration with Genetech to advance small-molecule drug development targets selected by Genentech. This is said to allow Genentech to use Kronos Bio’s drug discovery platform for identifying different interactions and gene expressions to better understand and target oncogenic activity.
What’s more, this agreement gives Kronos Bio an upfront payment of $20 million. It is also eligible for more payments, which could total up to $554 million. The additional funds would be based on certain milestones, including discovery, preclinical, clinical, and commercial milestones. There’s also an option for Kronos to receive tiered royalties on any potential commercial products due to the collaboration.