Biotech Stocks To Watch Right Now
One of the hottest sectors this year for penny stocks has been biotech. That hasn’t only been a result of new coronavirus cases. These companies have been working on life-changing treatments from the start. Honestly, the flood of COVID stocks was previously spread out across a number of indications.
This wasn’t just coronavirus indications. Things like pain management, anti-inflammatory control, diabetes, and, of course, cancer were in the pipeline. With large government support, companies took this as an opportunity to shift focus and potentially benefit from the millions and billions of dollars in funding that this could bring.
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Here we are, six months into the year and we’ve seen many penny stocks make explosive moves in the stock market. Now, will this always be the case? Most likely not. But for better or worse, biotech penny stocks won’t likely lose their luster far after COVID-19 leaves the headlines. The simple reason is that there’s no shortage of diseases that need cures. What’s more is that biotechnology stocks are inherently volatile.
They’re literally dealing with “the cutting edge” in most cases. When there is no cure, these companies have to create it. In line with this, biotech penny stocks are generally catalyst driven. These can be a company update, filing, peer review, or even a presentation at an industry meeting.
There are many different catalysts to consider than just what’s on a company’s newsfeed. Will these biotech penny stocks end up making new highs next month after the latest round of developments?
Biotech Penny Stocks To Watch #1: Revive Therapeutics Ltd.
Revive Therapeutics Ltd. (RVVTF Stock Report) (RVV) has been one of the coronavirus penny stocks to watch this year. But a deeper dive reveals that the company isn’t just a one-trick pony. One of the recent focuses in the stock market has been on novel treatments for neurological diseases. Things like PTSD, schizophrenia, etc. are being studied. What’s more is that something that would have been taboo a few years ago is now receiving real attention from the scientific community. I’m talking about psychedelics.
If you watch the show, “Billions” you may have come across an episode talking all about ayahuasca. This is an example of a psychedelic. You might have also seen Gwyneth Paltrow’s “The Goop Lab”. In one episode, the crew goes to a remote location to drink “magic mushroom tea” to experience enlightenment. While this isn’t necessarily a scientific setting it has brought attention to the masses. From a biological stance, companies like Revive are working toward solutions for numerous health concerns using psychedelics.
The company acquired Psilocin Pharma Corp., which has developed patent-pending formulation and production solutions for the active compound Psilocybin. The process encompassed with its intellectual property cover methods of production of Psilocybin-based formulations. Earlier this month, Revive expanded its sponsored research partnership agreement with the University of Wisconsin-Madison. They will evaluate novel formulations of psilocybin and a Phase 1 clinical study investigating the therapeutic application of psilocybin for an undisclosed addiction use disorder.
Biotech Penny Stocks To Watch #2: Tonix Pharmaceuticals Holding Corp.
For the most part, Tonix Pharmaceuticals (TNXP Stock Report) has been treading water for most of the year. If you look back in January, you can see the TNXP stock price holding above its 50-Day Moving Average. But once it broke below that level, TNXP has had a very difficult time breaking above it. We mentioned in an article earlier today about how things like the 50 and 200 Day Moving Averages are keep technical levels. These can act as major areas of support and resistance. Clearly, the 50-Day Moving Average is somewhat of a ceiling for TNXP so far this year. But could that change heading into July?
Tonix focuses on treating CNS (pain, neurology, psychiatry, addiction) and immunological conditions. So there’s a broad spectrum of applicable biological options. However, recently the company has been working toward a few specific treatments. First, the company is collaborating with the likes of Southern Research for a COVID-19 vaccine. The company is also working on advancing its TNX-1700. This is a treatment for treating tumors in patients with colorectal cancer.
In a poster presentation from earlier this year, the company showed that TNX-1700 was able to enhance anti-tumor activity of PD-1. This is a protein found on T cells that helps keep the body’s immune responses in check. “We believe these data warrant additional work to learn if TNX-1700 modifies the toxic tumor microenvironment in humans and will make colorectal cancer responsive to anti-PD-1 therapy,” added Dr. Seth Lederman, M.D., Chief Executive Officer of Tonix. With the 50DMA currently sitting around $0.70, will July mark the time TNXP stock finally breaks above resistance or will this be a longer-term sideways trend?
Biotech Penny Stocks To Watch #3: Zomedica Pharmaceuticals Corp.
While this might not be your typical biotech penny stock, Zomedica Pharmaceuticals Corp. (ZOM Stock Report) is working on biological treatments. In its case, however, the company focuses on animals. Specifically, it’s a veterinary diagnostic company and actually has found a place in the COVID conversation this year. We’ve been talking about Zomedica off and on for months now. While it hasn’t necessarily established a firm directional trend, ZOM stock has been volatile enough to offer those big swings traders typically like to see. They have also had a tendency the see multi-day moves, not just 1-day jumps.
An update came out from the USDA in an article titled, “Confirmation of COVID-19 in Pet Dog in New York”. It specifically stated, “It appears that people with COVID-19 can spread the virus to animals during close contact.” In light of this, it made sense that attention began building around the company’s TRUFORMA™ diagnostic device. The company has other things in its pipeline as well.
These include ZM-020, for example. It’s a point-of-care pathogen detection platform. The first tests Zomedica expects for release with the ZM-020 diagnostic platform will focus on the rapid detection of fecal parasites, potential UTI-associated urine bacteria and crystals, and leptospirosis. The company has also has partnered with Celsee, Inc. to develop its circulating tumor cell “liquid biopsy” platform. The first assay Zomedica expects for release with ZM-017 targets hard-to-diagnose canine cancers, such as hemangiosarcoma and osteosarcoma. Could this latest 4-day move confirm a real uptrend in the making or is this another short-term pop?
Biotech Penny Stocks To Watch #4: Cleveland BioLabs
Cleveland BioLabs (CBLI Stock Report) is another one of the high volume penny stocks to watch in biotech this year. Early on, shares broke out from $0.62 on January 2 to highs of $4.90 26 days later. After dropping back to $1.85, CBLI stock rallied to a high of $5 before finally settling out just above its 200-Day Moving Average. Since then, shares have traded in a relatively tight channel between $1.45 and $1.90 with a few exceptions.
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However, on Friday, CBLIC stock jumped again. This time it wasn’t a few percentage points but nearly 40% during the morning session. By the lunch hour, Cleveland BioLabs stock price hit a high of $2.42; a price not seen since mid-May. So what triggered this move in CBLI? That’s tough to say. There hasn’t been any news since the beginning of the month. This is when the company announced that it closed a $3.175 million offering done at $2.0945 a share.
Aside from that, there haven’t been any new updates from the company. What I was able to find was Cleveland BioLabs was mentioned in an industry report from Orion Research titled, “Global Biodefense Market 2020 by Company, Regions, Type and Application, Forecast to 2025.” Cleveland BioLabs was mentioned alongside companies like GSK and Sanofi.
Something to note, however, is who’s also investing in Cleveland BioLabs. In a 13-G filing, it was revealed that Armistice Capital took a larger position in the company. As of the filing, the fund showed a 3.9% stake in the company. Steven Boyd’s Armistice Capital has a track record of investing in biotech penny stocks; many of which we’ve discussed on this site. We’ll have to see if Q3 will be a big one for Cleveland BioLabs.