If you’re looking for penny stocks to buy, I’m sure you’ve got your particular set of criteria. Some investors like to find cheap stocks with high volume. Others are more concerned with a company that has strong fundamentals. Still, there are those who enjoy a mix of the two while also focusing on hot sectors.
No matter the case, you should at least have a basic strategy in you mind before jumping headfirst into the volatile world of penny stocks. One of these “hot sectors” has been biotechnology. While it’s true that early-stage companies are incredibly risky, as you’ll see, that risk can pay off handsomely. With that in mind, here’s a list of a few biotech penny stocks that have turned heads this week. Are they good to trade right now? That decision is up to you.
Penny Stocks To Trade: Lineage Cell Therapeutics, Inc.
Lineage Cell Therapeutics, Inc. (LCTX – Free Report) stock has climbed as much as 54% since the start of the year. This company has a novel therapy to be honest. It creates terminally-differentiated human cells from cell starting materials. These cells can then replace or support other cells that are dysfunctional or absent. This might be due to degenerative disease or traumatic injury, for example. They may also be administered as a way to help the body mount an effective immune response to cancer.
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Though shares have steadily risen for the last few weeks, LCTX stock skyrocketed on Thursday. The company reported big news. Its ongoing Phase I/IIa clinical study of OpRegen® produced strong preliminary data that warranted opening two new clinical sites to accelerate patient enrollment.
“With the removal of the enrollment stagger and clearance to dose patients with vision as good as 20/65, we believe we can significantly accelerate our rate of enrollment on the OpRegen study. Our objective is to complete patient enrollment in the Orbit SDS portion of our clinical study as soon as this quarter.”Brian M. Culley , CEO of Lineage
While the stock faded from Thursday highs, LCTX started to climb during post-market trading. Could this latest update help push the bullish surge as the company ramps up patient enrollment for its treatment?
Penny Stocks To Trade: Assertio Therapeutics Inc.
Next, Assertio Therapeutics Inc. (ASRT – Free Report) hasn’t had the best start to the year. In fact, since January 2, shares are down 20%. But that might all change after today. Currently, Assertio markets three FDA-approved products for various neurological conditions. But that isn’t the major catalyst right now. Late Thursday afternoon, the company came out with big news.
Assertio announced it has entered into a definitive agreement with Collegium Pharmaceutical, Inc. Based on the deal in place, Collegium will acquire the NUCYNTA® franchise of products from Assertio. Collegium will pay Assertio $375.0 million in cash at closing. What’s better yet is that according to the company, it intends to use cash proceeds to retire its outstanding debt.
Since this news came after the close, it will be interesting to watch how the market reacts on Friday. Shares began trading higher during the aftermarket session.
Penny Stocks To Trade: Aduro Biotech Inc.
Finally, one of the penny stocks to watch since early January, Aduro Biotech Inc. (ADRO – Free Report) reached new highs on Thursday after the closing bell. The company announced that it earned a $10 million development milestone payment under its worldwide licensing agreement with Merck. This was for the initiation of a Phase 2 clinical trial of MK-5890. The treatment is considered “an anti-CD27 agonist,” in non-small cell lung cancer or “NSCLC.”
Andrea van Elsas, Ph.D., chief scientific officer of Aduro said, “The achievement of this milestone would not be possible without the efforts of the exceptional team we built at Aduro Biotech Europe and the B-select technology that created several monoclonal antibodies, including MK-5890 and BION-1301, an anti-APRIL antibody we are currently developing for IgA nephropathy.”
This Phase 2 trial will focus on a few things. Initially, it will determine the effectiveness of the treatment. Furthermore, it will observe the safety of pembrolizumab in combination with MK-5890 in patients with advanced squamous or non-squamous NSCLC. These patients will have been previously treated with anti-PD-L1 therapy. It’s updates like this which have helped ADRO stock run over 150% since the start of the year.