3 Biotech Penny Stocks on Reddit to Watch in 2021
When creating a penny stocks watchlist we first need to consider what penny stocks are and the risk associated. Typically, penny stocks trade at a faster pace and are cheaper than blue chips. Because of this, they have much larger price fluctuations based on recent news and other speculative occurrences.
This in turn, drives prices and is what makes them an attractive financial tool used by many incoming and experienced investors. However, this does not give the green light to put your life savings in penny stocks under $5. Doing research and making an informed penny stock watchlist is crucial.
In the stimulus driven bull market we have found ourselves in for the past year, many fields have seen tremendous growth. These include the technology, biotechnology, environmental sciences and healthcare sectors. All benefitting tremendously from the significant technological strides that have been made in the trailing decade.
In the past few months, the addition of the term ‘Reddit penny stocks’ has come into play. For those unfamiliar, this is a social media platform, allowing communities in diverse topics, to engage in discussion. If you invest in stocks frequently, you probably remember the Gamestop Corp. (NYSE: GME) fiasco that occurred a few months ago. This resulted in a triple digit percentage gain for the age old video game supplier in only a few trading days.
On its own, this is not an extraordinary case, however we have to look at why this occurred. A group of traders on the subreddit, r/Wallstreetbets, decided to bet against a massive hedge fund’s sizable short position in GME. They felt as though GME was unfairly targeted, and it was their responsibility to save the company based on an emotional connection to it. Whether this will result in a lasting change remains up to the future. However, there’s no doubting the paradigm shift that occurred.
Biotechnology is still in view as an emerging field. New companies seem to appear daily and old ones continue to grow through acquisitions and new product development. Due to their future implications many of these biotech companies are subject to large speculation. This is common in large market-caps and high volume trading. High speculation leads to high volatility and this is only amplified when considering biotech penny stocks under $5.
Let’s take a look into three biotech penny stocks that have key implications on our current state of medical care. This will include companies involved in cancer research as well as COVID-19 treatments. It is not only important to look at past growth when making a biotech penny stock watchlist, but just as important to consider future growth. Here are three biotech penny stocks to consider.
3 Biotech Penny Stocks Watch
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Aikido Pharma Inc. (NASDAQ: AIKI)
- Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN)
Atossa Therapeutics Inc. (NASDAQ: ATOS):
A company specializing in oncology and infectious disease, Atossa Therapeutics is a clinical-stage biopharmaceutical penny stock. Its objective is to develop novel medicines that treat previously unmet medical needs. Currently its focus is on breast cancer and COVID-19. Two of the most impactful health conditions we are facing today.
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In its pipeline, ATOS is currently developing Endoxifen. A drug meant to reduce mammographic breast density and for patients recently diagnosed with the most common type of breast cancer. It acts to slow tumor activity prior to surgery.
“Atossa recently expanded its development pipeline with the launch of its two COVID-19 Programs. While we are very encouraged with the recent progress with our breast cancer opportunities, in the midst of the COVID pandemic we are developing truly novel approaches to treating COVID patients that we believe have the opportunity to help people on a global scale and create tremendous shareholder value.”
Steven Quay, President and CEO.
Steven Quay, CEO of ATOS, is subject to participate on the panel for Cello Health’s Cancer Progress Virtual Conference on May 6th, 2021. Here, he will discuss progress being made in cancer treatments with other industry leaders from multiple well-known venture investment funds.
Aikido Pharma Inc. (NASDAQ: AIKI)
With a market rally already underway, we are beginning to see more bullish tendencies reemerge for penny stock biotech companies. One that has been seeing growth since late April is Aikido Pharma. AIKI is another biotech penny stock with a focus on anti-cancer therapeutics. It has a diverse portfolio consisting of a variety of patented technologies from leading researchers and universities. Along with this, it has a strong pipeline of therapeutics, including those for pancreatic and prostate cancer. Two of the most menacing forms.
With an objective to grow its pipeline to treat unmet medical conditions in the field of oncology, the company is also developing a broad-spectrum antiviral platform. This platform potentially could inhibit replication of multiple viruses including Influenza, SARS-COVID, MERS-COVID, Ebola and Marburg viruses.
CEO of AIKI, Anthony Hayes, recently announced Dr. Matthew Frieman as the newest addition to AIKI’s team of advisors. Dr. Frieman is a world-class inventor and scientist and is renown for his cutting edge work.
“We are honored to have him join our team of advisors and work more directly in our efforts to advance the development of this technology that we previously licensed. The coronavirus is still a notable issue that continues to impact society and we are very proud to be supporting Dr. Frieman’s work.” – Anthony Hayes, CEO of Aikido Pharma Inc.
Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN)
As a relatively new player in the biotechnology industry, Diffusion Pharmaceuticals is a company still in its infancy. We spoke briefly about speculation and future potential and DFFN is a prime example.
Without generating positive revenue and increasing its cash burn by 37% this past year some may fear the worst for DFFN. However, to understand growth one should not only consider sales. It could be considered that it is investing in future growth by allocating money to research and development rather than production.
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Based in Virginia, DFFN was founded in 2001 by entrepreneur David Kalergis and engineering professor John L. Gainer. Their number one drug, trans sodium crocetinate (TSC) is used to increase the rate of oxygen diffusion. Which is when oxygen moves through blood plasma. TSC treats conditions associated with hypoxia and recently has begun clinical trials in the U.S. and Eastern Europe. As of 2020, DFFN initiated phase 1b which treated patients with COVID-19, specifically those who suffer from respiratory distress.
Robert Cobuzzi, President and CEO of Diffusion has a positive outlook for the trajectory DFFN is on. He recently stated, “The momentum we gained exiting 2020 has continued into 2021. We have completed the study of TSC in hospitalized COVID-19 patients, designed a series of three clinical trials to be conducted during 2021 to evaluate the effects of TSC on oxygenation, and secured the company’s financial position by completing our $34.5 million equity raise.”
Because of the pandemic, biotech penny stocks have remained in focus. Whether this will be a lasting effect of Covid-19 remains to be seen. For now however, investors continue to search for the best biotech penny stocks to watch.