Biotech Penny Stocks For Your Q2 Watch List
Biotech penny stocks have been some of the most consistently watched names over the past year. The pandemic definitely helped shed light on this industry. It also saw millions of new traders flock to buy the next big breakout stock working on a treatment. The pandemic also ignited a surge in new retail traders, with many opening accounts on popular apps like Robinhood & Webull.
The beauty of it all, especially for penny stocks in the biotech niche, is that this flood of action resulted in a new focus for traders. What was the focus?
“Biotech stocks aren’t just ‘vaccine stocks’; there’s more to this industry than just the virus.”
Seeing how novice traders reacted to trends last year, this “tunnel vision” is understandable. But now, it has evolved as the Robinhood traders have opened their eyes to new trends in biotech this year. In light of the recent market rebound, we’ve begun seeing more retail action focusing on popular growth niches once again. If you haven’t guessed by this article’s theme yet, one of those niches is biotech.
Biotech Penny Stocks On Robinhood For 2021
- T2 Biosystems Inc. (NASDAQ: TTOO)
- Zomedica Corp. (NYSE: ZOM)
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
T2 Biosystems Inc.
T2 Biosystems is a producer of detection devices for sepsis-causing pathogens. Its product pipeline includes T2Dx Instrument, T2 Candida Panel, T2SARS-CoV-2 Panel, and others. The last of these seems to be extremely important right now. While many companies are focusing on treatments for Covid, the diagnostic market could be just as important.
Companies like T2 have been working to develop faster and more accurate tests for identifying Covid-19 in patients. In its most recent fourth quarter, TTOO managed to drop its EPS loss from $0.30 a year ago to $0.07 in Q4 2020. Additionally, it brought in revenue of around $7.79 million, which is more than double what it did in 2019.
Right now, its most prominent technology, T2 Magnetic Resonance, is a panel that can detect a wide range of molecular targets using only blood. It is used in the enablement of its T2Dx system, which is focused on diagnosing bacterial and fungal infections that cause sepsis.
Back in August, T2 received EUA or Emergency Use Authorization from the FDA for its Covid panel. Since then, it has worked to commercialize this diagnostic test as much as possible. While the spread of Covid in select areas is on the decline right now, many believe that the need for testing will be strong into the future. Since there’s likely going to be a focus on preventing the virus, testing and diagnostics could take some of the spotlight. In this case, TTOO may be one of the penny stocks on Robinhood to watch.
If you read pennystocks.com often, you’ve probably heard of Zomedica Corp. We’ve covered ZOM stock many times in the past few months for its sizable gains and unicorn-business model. Zomedica is a producer of medical tech aimed at the veterinary market for those who don’t know.
Over the last few months, ZOM stock has made a huge move in the market. Is Zomedica Corp. still worth it? To understand this, let’s take a closer look at the company. Zomedica’s lead product, Truforma, is a device that can measure cortisol levels in animals. It utilizes acoustic wave detection technology to perform this task more cheaply and effectively than traditional methods.
If we look at Zomedica’s financials, we see little to no product revenue and an annual loss of more than $16 million. But, it does have a reported $90 million in assets. A bet on Zomedica is a play for the future of its Truforma technology first and foremost. Only a few months ago, it signed an agreement with Miller Vet Supply, the oldest veterinary supply company in the U.S.
Soon after, Zomedica sold its first device, which Miller claims to be groundbreaking and industry-changing. With over 70 patents for Truforma, Zomedica seems to be set on the intellectual property side. At almost $20,000 per device, the company has to find a value point for veterinarians to feel comfortable purchasing the product. With the company just beginning its commercial roll-out, it could be an important time to have Zomdica on the penny stocks watch list.
Tonix Pharmaceuticals Holding Corp.
Another popular biotech penny stock is Tonix Pharmaceuticals, which produces compounds to treat diseases affecting the central nervous system (CNS) and can be used in immunology. Its lead product candidate right now is TNX-102 SL. This compound is in a Phase-3 study to see if it can treat fibromyalgia. It states that it should have toppling data from this study by the fourth quarter of this year.
Additionally, Tonix is working on TNX-1800, a live replicating vaccine that uses a horse pox viral vector platform. TNX-1800 could have efficacy in protecting against Covid-19 infections.
A few months ago, Tonix showed highly positive data in early animal studies using the treatment But, there is a lot more research that needs to be done. Last week, Tonix announced the results of a Pre-IND meeting with the FDA regarding TNX-601 CR for treating major depressive disorders. Seth Lederman, CEO of Tonix states that “we are pleased with the results of the FDA meeting on developing TNX-601 CR for the treatment of MDD and we look forward to advancing its clinical development.”
What has also helped direct attention to the stock is insider action recently. Seth Lederman picked up 16,733 shares of TNXP stock at an average price of $1.32 last week. In cases like this, the market usually takes this as a sign of strength. How that will end up unfolding is to be seen. But with trials on deck, this could be a name to keep track of.
Atossa Therapeutics Inc.
Atossa Therapeutics Inc. is another frequently discussed biotech penny stock. On Wednesday, March 31st, Atossa announced its year-end 2020 financial results. Before we dive in, let’s take a broader look at the company.
Atossa is a clinical-stage biopharmaceutical company working in both oncology and, more recently, infectious diseases. This includes work on both breast cancer and Covid-19. In the fourth quarter, Atossa announced positive interim results on its Endoxifen compound. This drug is used to treat breast cancer in a “window of opportunity” between diagnosis and full disease.
Also, the company announced that its AT-301 drug candidate is considered to be safe and well-tolerated. AT-301 is a nasally administered spray that can be used at home in those recently diagnosed with Covid-19. Dr. Steven Quay, CEO of Atossa, states that “we believe that in 2020 Atossa rise to meet the challenges of a pandemic through innovation and rapid response to the global events impacting economies, institutions, and pharmaceutical research and development.”
Atossa’s pipeline could be something to keep track of right now, thanks to its recent advancements. Because it has shifted its focus to Covid-19, the company has gained more attention.
What’s Next For Penny Stocks?
This has been an interesting week for the market, in general. Wednesday’s session saw lower volumes yet major indexes raced to new weekly highs. It will be interesting to see if trading action picks up heading into April. Volume is one of the most important indicators you can follow. Without it, and you aren’t able to see supply and demand. In instances of lower volume and increasing prices, the could suggest that there isn’t more buying, just less selling. In this case, keeping your risk/reward in mind with each trade will be important.