Are These the Best Biotech Penny Stocks to Buy Today?
We’ve been covering the trend of biotech penny stocks for quite some time. And, with social media sites like Reddit only helping to push this industry up, the challenge to find the best ones is palpable. Many find it difficult to make a definitive list of penny stocks on Reddit or Robinhood, or wherever you find your penny stocks, because they are always changing.
But, this means that there is constant opportunity to find potential winners. As with any penny stocks to buy, investors need to complete their research to find which ones are right for them. With biotech stocks, in particular, this is even more important.
And, it’s worth noting that Reddit penny stocks are notoriously volatile. This is due to the speculative nature of these stocks usually trending, as well as them being penny stocks first and foremost.
It’s also important to consider that these penny stocks can rise and fall very quickly over a single trading day. However, with the right research and tools at your disposal, finding penny stocks on Reddit can be easy. As stated earlier, it’s important to understand your investing style.
Are you in it for short-term or long-term gains? This question alone can help to narrow down your penny stock watchlist significantly. Right now, there are factors such as the rise of cryptocurrencies like DogeCoin and Bitcoin, as well as the ongoing pandemic. These are all external aspects to consider.
Because biotech penny stocks tend to fluctuate heavily, adding the layer of Reddit makes them even more volatile. So understanding how to trade penny stocks takes a strong knowledge of both external and internal factors. With this in mind, let’s take a look at four biotech penny stocks you need to know about.
4 Reddit Biotech Penny Stocks to Watch
- Protagenic Therapeutics Inc. (NASDAQ: PTIX)
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- Precipio Inc. (NASDAQ: PRPO)
- iBio Inc. (NYSE: IBIO)
Protagenic Therapeutics Inc. (NASDAQ: PTIX)
Protagenic Therapeutics is considered to be a rather pure-play biotech stock. The company works in the development of pre-clinical compounds aimed at treating anxiety, depression, addiction, and other similar disorders. Because funding is one of the main aspects to consider about a biotech company, let’s take a look at PTIXs financial situation.
At the end of April, Protagenic announced the closing of a $13.2 million public offering. This also came alongside it announcing an uplisting to the NASDAQ exchange. While the $13.2 million in capital is a big deal, uplisting to a large U.S. exchange is arguably an even bigger deal.
This could be one of the main reasons that we’ve seen so much bullish action with PTIX stock in the past month or so. Before this, the company released information on its ongoing trial of PT00114 in volunteers and patients with PTSD.
“PT00114 has a unique mechanism of action, with robust effects in preclinical studies. Given the critical role stress plays in Post-Traumatic Stress Disorder, Major Depressive Disorder, and Generalized Anxiety Disorder, coupled with the need to develop new therapeutic options for these patients it is our hope that PT00114 will emerge as a new medicine for these conditions.”
Dr. Maurizio Fava, Psychiatrist-in-Chief at Massachusetts General Hospital
Now, this trial is still underway and should have results soon. But considering its current opportunities, is PTIX a penny stock to watch?
Obalon Therapeutics Inc. (NASDAQ: OBLN)
Obalon Therapeutics is a penny stock that we’ve covered several times in the past few months. After covering it last week, Obalon again shot up by over 71% on Monday, before dropping down to a modest 28% gain by 11:00 AM EST. While this is a large reflection of its volatility, it also shows that investors are very bullish on OBLN stock. And to understand why; we have to take a close look at its business and operations.
For those who don’t know, Obalon is a producer of medical tech aimed at the weight loss industry. This includes its swallowable, gas-filled intragastric balloon system for the treatment of obesity. This system is the first and only FDA-approved product of its kind and is the major reason behind the bullish sentiment for Obalon.
In mid-March, Obalon announced its fourth quarter and full-year 2020 results. Because the company had to suspend operations due to Covid, it only posted revenue of around $0.1 million However, it managed to decrease its net loss from $4.9 million in Q4 2019 to $1.3 million in Q4 2020.
This may not seem like much, but it shows major effort on Obalon’s part to get its debt under control. Despite no major announcements fueling today’s large rise in value, OBLN stock tends to fluctuate greatly on a regular basis. So, because of its groundbreaking technology, all it needs now is distribution. Considering all of this, will OBLN be on your penny stock watchlist?
Precipio Inc. (NASDAQ: PRPO)
Precipio is a tech company working in on utilizing cutting-edge tools to deliver cancer diagnostic products. The company states that it has built out a platform that can effectively eradicate misdiagnosis in cancer research by delivering high-quality diagnostics for both physicians and institutions globally.
On Monday, May 10th, shares of PRPO stock are up by as much as 34% during midday. This is due to an announcement made only an hour or so earlier. On Monday, Precipio stated that it has launched its new HemeScreen Panel for acute myeloid leukemia or AML. This panel can directly determine the genetic character of the disease which leads to rapid and precisely targeted therapeutics.
“With patient care at the center of our vision, our R&D team’s abilities to both identify clinically-important testing needs, and design products that address these needs are the backbone of the clinical and commercial success of HemeScreen.
These panels will enable POLs to rapidly identify patient disease and provide immediate, and subsequently better care to their patients in addition to having a positive financial and operational impact on their business. We are excited to see the rollout of the AML and future panels to the market.”
CEO of Precipio Inc., Ilan Danieli
Considering this exciting announcement, PRPO could be a penny stock to watch moving forward.
iBio Inc. (NYSE: IBIO)
At the end of last week, shares of iBio Inc. rocketed up by as much as 41% in midday before closing at a solid 17% gain. This major bullish rise is due to the company announcing plans to develop a new vaccine candidate for the coronavirus.
The vaccine, known as IBIO-202 uses a nucleocapsid protein or N protein, from Covid-19 to produce an immune response in the body. Early studies have shown that despite mutations in the virus, this vaccine platform could remain highly efficacious. Because of this, the goal of iBio is to produce a vaccine that would hopefully be a major tool in the fight against new and emerging strains of Covid-19.
One thing to consider is that there is a great deal of competition as it stands in the Covid-related vaccine industry. But, many existing vaccines are aimed at preventing early versions of the virus, rather than broadly defending against potential new ones. If it can successfully produce and commercialize a broad spectrum SARS-CoV-2 virus, it would without a doubt be a big deal.
“The N protein strategy of IBIO-202 is complementary to existing first-generation, S protein-directed vaccines and may be suitable as a more universal coronavirus vaccine.”
Martin Brenner, the Chief Scientific Officer at iBio
So in addition to this exciting news, iBio will be reporting its Q3 2021 financial results on May 17th, alongside a corporate update. So considering all of this exciting news, will IBIO stock be on your watchlist?
Are Biotech Penny Stocks Worth It?
At the end of the day, what makes a penny stock worth watching for you, may not be the same for someone else. However, to decide when making a list of penny stocks to buy, investors need to know their unique investing style. This information will help to make your portfolio aligned with your investing goals.
And, with so many biotech stocks to choose from, finding just one or two could be a difficult task. But, as any investor will tell you, it all comes down to research. Considering all of this, are biotech penny stocks worth it?
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