Biotech Penny Stocks to Watch This Month
Penny stocks are well-known for their higher level of risk in the stock market today. The problem here is that the risk can quickly deter traders and investors from even exploring the topic. This is why research is so important. Just taking a dark, blindfolding yourself, and throwing it at the proverbial dartboard isn’t the best way to find top penny stocks to buy. In fact, following the herd or trying to find social media-fueled trades can increase that risk immensely.
There’s no substitute for strong research. Can you get lucky with some of the “Reddit penny stocks,” of course. But luck isn’t a strategy that allows you to profit consistently. So, where should you begin? You can look for news headlines from companies. You can also sift through all of the public filings. Identifying insider buying, material events, quarterly & annual reports are all ways to put together your thesis on why certain companies are worth watching.
Once you’ve got the fundamentals outlined, see what’s happening in the stock market. That means looking at the trend “today” as well as the previous trend leading up to it. Is there a strong uptrend, is there tons of volatility, has the penny stock been in a strong downtrend? These are basic technical analysis studies you can do before deciding which names to put on your penny stocks list.
Will you always be right about the stocks you’ve done in-depth research on? No, but the more you know about the stocks you want to buy, the easier it is to sift out the noise from things like social media.
Biotech Penny Stocks To Watch Right Now
Despite the lower volume in the overall market, it hasn’t put the brakes on the latest bull trend. Not only have the S&P and Dow reached fresh, all-time highs, you’ve also got individual sectors performing their best in history. Healthcare stocks, for instance, have been on a tear. Look at benchmark ETFs like SBI Healthcare ETF (NYSE: XLV), for instance.
The ETF hit new, all-time highs this week with a massive move on April 15th that helped accomplish that. The biotech ETFs like the XBI and IBB also saw strong rebounds this week. So with all of the positive momentum in the stock market today, especially in health-related names, it may not hurt to have some related companies on your list of penny stocks to watch right now.
- PharmaDrug Inc. (OTC: LMLLF) (CSE: BUZZ)
- Nabriva Therapeutics (NASDAQ: NBRV)
- Corbus Pharmaceutical Holdings (NASDAQ: CRBP)
Hot Penny Stocks To Watch #1: PharmaDrug Inc. (OTC: LMLLF) (CSE: BUZZ)
Usually, part of our list of psychedelic penny stocks, PharmaDrug, is on watch by some after a recent tweet from the company. PharmaDrug tweeted out on April 15th, “Potential anti-COVID-19 agents, cepharanthine and nelfinavir, and their usage for combination treatment,” along with a link to an abstract with data supporting its statement.
Why is this important if we’re talking about a company trying to advance DMT as a potential treatment for its potential role in normal, diseased, and altered states of consciousness? It has everything to do with its previous definitive agreement to acquire biotech company Sairiyo Therapeutics. Sairiyo is a biotechnology company focused on repurposing and developing improved formulations of naturally derived compounds for severe, rare, and life-threatening diseases to obtain European Medicines Evaluation Agency and U.S. Food and Drug Administration approval.
The biotech company is building upon the clinical development of its lead drug candidate, Cepharanthine. Now you start to connect the dots after the recent tweet. Thanks to new proof points on the potential of cepharanthine related to COVID-19 treatment, this could shed a different light on PharmaDrug, itself. We’re not just talking about a company solely focused on psychedelics but one with a diverse portfolio considering its relationship to Sairiyo and the potential for an anti-COVID platform.
#2. Nabriva Therapeutics (NASDAQ: NBRV)
Another one of the hot penny stocks to watch right now is Nabriva Therapeutics. The company focuses on anti-infective agents for serious infections. Its XENLETA is already approved by the US FDA, becoming the first systemic pleuromutilin antibiotic for community-acquired bacterial pneumonia. The company is also developing an injectable CONTEPO for treating urinary tract infections.
But this week, eyes are on a new advancement. Nabriva announced that it started exclusive distribution of SIVEXTRO® (tedizolid phosphate) in the United States. This is licensed by the National Drug Cod Directory under Nabriva’s label and is being marketed for treating acute bacterial skin and skin structure infections.
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Approved in 2014 by the FDA, SIVEXTRO has begun distribution by Nabriva as part of a deal it signed last year with subsidiaries of Merck & Co. Inc. (NYSE: MRK). That deal allows Nabriva to continue procuring SIVEXTRO from Merck and be solely responsible for marketing, sales, and distribution in the United States at least through December 31, 2023.
Given the timing of this and momentum in the biotech sector, this could be a name to know in April.
#3. Corbus Pharmaceutical Holdings (NASDAQ: CRBP)
Finally, Corbus Pharmaceuticals Holdings has followed a similar trend as Nabriva. Though there weren’t any headlines on April 15th, CRBP stock jumped during the early afternoon session. It appears that a bullish piece of commentary had come out at the time momentum began coming into the market. The commentary highlighted Corbus’ Lenabasum treatment.
This is the company’s treatment candidate for dermatomyositis. This is an autoimmune condition that causes skin changes and muscle weakness. Currently, there is a Phase 3 DETERMINE study evaluating 176 subjects in the safety and efficacy of lenabasum in adult patients with dermatomyositis. Topline data is expected to be reported this quarter following the final visit of the last subject. Lenabasum was granted Orphan Drug Designation to treat dermatomyositis from the U.S. FDA and the European Medicines Agency.
Aside from this, the company is also developing a CB1 inverse agonist program focusing on metabolic diseases. There’s also a CB2 agonist program focusing on oncology. Both of these, of course, get folded into the cannabis side of the market. The company was recently granted a U.S. patent titled “Cannabinoids and Uses Thereof.”
According to the patent documentation, “The invention relates to cannabinoid compounds, pharmaceutical compositions including one or more cannabinoid compounds, and the use of pharmaceutical compositions including one or more cannabinoid compounds for the treatment of a disease or condition (e.g., a fibrotic disease or an inflammatory disease) in a subject in need thereof.”
Given several potential catalysts, CRBP stock could be one to watch this quarter.