Biotech Penny Stocks For Your March Watch List
The market sell-off since mid-February could have opened new opportunities for certain penny stocks & certain industries. If you look at some of the niches that took the brunt of this drop, biotech is one of the sectors to give back its 2021 gains.
I took a look at some of the industry benchmark ETFs like iShares Nasdaq Biotechnology Index Fund (NASDAQ: IBB) and the SPDR Biotech ETF (NYSE: XBI). Both have mirrored this trend. Since reaching highs of around February 9th, the XBI has fallen more than 25%. The IBB reached highs of $174.04 on February 10th but has fallen to lows of $142.47 since then, a drop of 22%.
Despite this as the case, some traders are hunting for potential opportunities like this. The market was red hot at the start of 2021, to this correction has come as a warm welcome for some. In fact, both ETFs have attempted a rebound since pulling back. The last few sessions have seen higher highs, and some sector stocks have mimicked the move.
Is the biotech trade back in motion? We’ll have to see how things work out moving forward. But what we can see is that certain emerging trends in biotech have helped give some stocks a boost recently. With this in mind, some of these could be among the list of hot biotech penny stocks to watch in March.
The Science Of Psychedelic Penny Stocks
One of the emerging trends in biotech has been psychedelics and the study of multiple drugs. There’s even been the launch of the first-ever psychedelic ETF, PSYK. While this industry is still very new, and most treatments are still in the early stages, it doesn’t negate that traders are vying for position with breakthrough companies.
PharmaDrug Inc. is a unique player in the space. It focuses on natural medicine, in general. This includes not only psychedelic compounds but also cannabis. The company’s focus right now is on international markets. In psychedelics, PharmaDrug utilizes a two-pronged approach. The first targets markets in The Netherlands by consolidating legal adult-use psychedelic dispensaries or “Smart Shops.”
Secondly, the company looks to use its controlled substance import and distribution license to establish a pharmaceutical psychedelic business. Starting in Amsterdam, PharmaDrug will begin rolling out this model and duplicating it in 5 follow-on cities in the country. The company’s wholly-owned subsidiary Super Smart is the retail psychedelics arm specializing in the sale of psychoactive substances in the Netherlands.
One of the more unique aspects of PharmaDrug’s psychedelic platform is that it’s focusing on the use of N, N-Dimethyltryptamine, better known as DMT. The addition of world-renowned chemist and neuroscientist Dr. Steven A. Barker, Ph.D., could take this research initiative to a whole new level. It’s also one of the lesser-explored niches of the psychedelic arena right now.
Meanwhile, PharmaDrug holds a Schedule 1 Narcotics Distribution License, enabling the import of narcotics into Germany. The company is already importing cannabis from one of the largest medical marijuana companies globally, Bedrocan, allowing the company to sell Bedrocan’s brand in the German market. What’s more, the company has already begun expanding its offerings in Germany beyond Bedrocan. It brought on another line of medical cannabis, allowing PharmaDrug to build upon its sales volumes and expand its pharmacy network.
Believe it or not, unlike the cannabis industry early on, psychedelic companies are already listing on major exchanges. There’s also been the first big psychedelic stock IPO when Compass Pathways went public in 2020. In light of this, a handful of main listed companies are exploring this niche. Seelos Therapeutics is one of them. Though it has other treatments in its pipeline, the main point of interest for psychedelic stock traders is the company’s SLS-002 treatment. This is Seelos’ intranasal racemic ketamine for treating acute suicidal ideation and behavior in major depressive disorder patients.
This month the company completed open-label patient enrollment for part 1 of its SLS-002 proof of concept study. Seelos is planning to release key open-label data next quarter. This Part 1 includes a 16-day treatment period followed by a safety follow-up period to day-30. To give you a timeline, the final patient is expected to complete Part 1 of the study on April 1st.
Our first look at the potential efficacy of SLS-002 in depressed and imminently suicidal patients should provide valuable insights in this large unmet need. We look forward to initiating Part 2 of this study and are continuing to identify more trial sites,” said Raj Mehra Ph.D., Chairman, and CEO of Seelos.
This week, analysts at Benchmark raised their price target on SEEL stock. Formerly, the company had a $4 target but boosted that significantly higher to $6.
Healthcare & Biotech Penny Stocks Gain Steam
Aside from the fringes of psychedelics, traditional healthcare and biotech penny stocks have gained ground as well. This includes companies developing novel treatments as well as those designing medical devices.
Milestone Scientific Inc.
Shares of Milestone Scientific rose to fresh, 52-week highs on Wednesday. This now marks a run of over 100% since the beginning of 2021. While the company doesn’t have a novel treatment pipeline, it does develop drug delivery products. In this case, its designs injection products. It also offers a suite of diagnostics solutions as well as pending entry into markets like medical injuries, cosmetic surgery injections, and those which are self-administered.
This month the company began sales of its CompuFlo/CathCheck disposables to a nationally recognized medical university, the Medical University of South Carolina. MUSC Health owns and operates eight hospitals and provides patient care throughout the state of South Carolina.
“This decision by another leading U.S. medical center further illustrates the favorable response to both CathCheck and CompuFlo as we execute on our goal to become the new standard of care in epidural procedures.”
Arjan Haverhals , President of Milestone Scientific
Predictive Oncology Inc.
Shares of POAI stock continued rallying on Wednesday, which continued a 3-day move for the stock after its last pullback. Predictive focuses on artificial intelligence to personalize medicine and drug discovery. This week the company announced its Skyline Medical Division is renewing the development of a new Generation 3 STREAMWAY ® System for direct-to-drain fluid waste management. According to the company, the new device will see no change to its intended use and will not require a separate 501(k) submission with the Food and Drug Administration.
“Skyline Medical plans to follow shortly with a Generation 3 Plus machine which includes an integrated on board vacuum pump so the facility vacuum supply will not be required or at the least can be augmented if needed,” commented Dr. Carl Schwartz, CEO of Predictive Oncology.
This development came a few weeks after announcing the completion of data generation milestones in its study to build AI-driven models of ovarian cancer. This is being done in collaboration with UPMC-Magee Women Hospital. According to Predictive, these data will drive both its AI-models of ovarian cancer and internal ovarian cancer drug repurposing projects.