Hot Biotech Stocks For Your Watch List Today
Penny stocks carry plenty of risks, and rightfully so. Considering that we’re talking about stocks under $5, volatility can play a larger role. As you’ll see with this list of penny stocks, however, some go on to rally much higher than this upper threshold. Industry sentiment and stock market momentum also play a part in trends.
Take, for instance, the biotech and healthcare niches of the market. While the S&P experienced higher levels of volatility recently, the SBI Healthcare ETF (NYSE: XLV) put in record high after record high. Furthermore, biotech ETFs like the Nasdaq Biotech Index Fund (NASDAQ: IBB) or the S&P Biotech ETF (NYSE: XBI) have enjoyed a strong rally over the last few sessions. They haven’t reached “record levels,” but there’s a clear trend suggesting an underlying bullishness in health-related companies.
Are Penny Stocks Worth It?
This is a question for the ages. Are penny stocks worth it? They’re high risk and many times high reward. Even a difference of a few cents can equate to a large windfall. Pair this with underlying market or industry momentum and it can make for an exciting situation, to say the least.
This having been said, whether or not you feel penny stocks are worth it, several biotech names have begun trending this week. Will this last into the new month ahead? We’ll see but in the meantime, 3 could be top penny stocks to watch right now.
Penny Stocks To Watch #1: GT Biopharma Inc. (NASDAQ: GTBP)
This list of penny stocks includes GT Biopharma Inc. With a price of more than $5 per share, it’s clearly no longer a penny stock. However, it is a clear example of a company that has progressed over the last few months to go from under $5 to much higher levels. It’s also a company that we’ve followed, watching it go from OTC and graduate to the Nasdaq in 2021.
The company is developing a novel treatment platform targeting multiple immunotherapies. GT Biopharma has designed its TriKE technology to bridge an immune cell and a tumor cell and then drive tumor cell killing power exponentially.
The company’s lead treatment candidate, GTB-3550. It has been initially studied for its potential to treat high-risk myelodysplastic syndromes and refractory/relapsed acute myeloid leukemia. Preliminary results from the first 9 patients in the Phase I/II Expansion trial have shown a significant reduction in bone marrow blast levels. Furthermore, all patients treated to the date displayed no signs of any grade of cytokine release syndrome across all dose cohorts.
This week, GT Biopharma announced Gregory Berk, M.D.’s appointment to the position of Chief Medical Officer. Jeffrey S. Miller, M.D., who has supported GT Biopharma as its Consulting Chief Medical Officer, was appointed as the Consulting Chief Scientific Officer. CEO Anthony Cataldo explained that “The addition of Dr. Berk with his extensive clinical trial background, helps advance our current GTB-3550 FDA trial and additional solid tumor TriKE programs currently in manufacturing…Dr. Miller’s move to “Consulting Chief Scientific Officer” further demonstrates his continued dedication to our advancement of TriKE product candidates in multiple solid tumor and hematologic cancer indications.”
Following these latest developments, GTBP stock has continued its bullish trend. In addition to this, two Wall Street firms have recently given Buy ratings and price targets between $21 & $25 (B. Riley & Roth Capital).
2. Asensus Surgical Inc. (NYSE: ASXC)
Shares of Asensus have been in rally mode for the last few sessions. After testing its 200 day moving average last week, the biotech stock has bounced more than 70%. The company hasn’t reported many new developments in tandem with this move. However, one of the points of interest for traders has been on the company’s medical device platform technology.
Asensus is a medical device company. It uses digitization of interfaces between surgeons and patients specifically for guided surgeries. The company’s Senhance Surgical System received an expanded 510(k) clearance for general surgery. Plans are to now file for FDA 510(k) clearance for articulating instruments and clearance for next-generation Intelligent Surgical Unit features.
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Last week Asensus filed a proxy statement that seems to have been a source of speculation in the market. The statement outlined the agenda for the company’s upcoming stockholder meeting scheduled for June 3rd. Among the topics to be discussed, the company seeks to elect several directors.
Among analysts right now, Raymond James has the most recent rating. The firm put a Hold on ASXC.
3. Zomedica Corp. (NYSE: ZOM)
Zomedica has been one of the more popular penny stocks on Reddit to watch this year. Shares have risen to extreme levels. They’ve also fallen considerably lower from their 2021 high. The recent trend is similar to that of Asensus, with a strong rebound off last week’s lows.
The initial move for ZOM stock came as speculation and anticipation built up. This had begun just a few months before the company made its first commercial product launch of TRUFORMA. This is Zomedica’s animal diagnostic device used at the point of care in the veterinary industry.
Since the commercial launch, however, traders have waited on “what’s next” in many cases. With a commercial product, the next steps involve more sales. Without much of this discussed in late March and early April, shares ended up sliding. However, Zomedica’s recent update has shed some light on its next steps. The company said it would expand its direct sales organization while phasing out its distributor-based sales efforts.
Management explained that this directive could slow initial sales of TRUFORMA but would provide a stronger foundation to build its marketing and sales platform. Brük Herbst, Chief Commercial Officer of Zomedica, explained in an April update that “A direct sales force will significantly improve our ability to serve our customers and to sell our products in the veterinary market in the longer term. We are fortunate that we have the financial strength at Zomedica to make this transition, and look forward to building a quality sales force to match the excellent quality of TRUFORMA®.”