When it comes to biotech stocks, there’s plenty to take into account. This goes for biotech penny stocks as well. Considering that many of these companies are in the preclinical or clinical stages, there’s a higher chance that traders buy based on future potential than anything else. While this isn’t unusual, it does create a more speculative environment, in general. What’s more, is that you can think of these as constantly having an “earnings-style” catalyst.
Here’s what I mean. You’re probably familiar with “earnings season”. This is when companies report the quarterly or annual results of a given period. Depending on the outcome and one management’s commentary for the future, stocks will typically experience a more aggressive move. This accounts for moves in either direction. Obviously, “playing earnings” is a higher-risk situation because if you’re wrong in your speculative thesis, it could cost you big money. Then again, if you’re correct, it could mean a big windfall literally overnight.
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In the case of biotech stocks, these companies are constantly conducting clinical trials, giving data presentations at conferences, and offering interim information. Though there may be a single Phase 1 trial, there could be several key milestones associated with that. Each milestone has the potential to act as another “earnings-style” catalyst. This is one of the biggest reasons traders flock to healthcare and biotech stocks in my opinion. That and the fact that one small finding could be a life-changing discovery for humankind.Biotech Stocks To Watch
- Lipocine Inc. (LPCN Stock Report)
- Mustang Biotech (MBIO Stock Report)
- IMV Inc. (IMV Stock Report)
- Corvus Pharmaceuticals (CRVS Stock Report)
- Cocrystal Pharma Inc. (COCP Stock Report)
Keep in mind that when it comes to these upcoming events, there’s no guarantee of a positive outcome. In many cases, data can be positive on the surface but there could be more questions that agencies like the FDA have after that positive data is presented. Needless to say, it does mark exciting times for certain biotech penny stocks. Will any of these be on your list to buy or avoid this week?Biotech Penny Stocks To Buy [or avoid] #1: Lipocine Inc.
This year has been a big year of recovery for Lipocine Inc. Those of you who’ve been a reader or subscribed have seen this stock for the better part of the last 12 months. We first came upon the company last November. Its TLANDO therapy, a testosterone replacement therapy, was in line to receive what the company had hoped would be a positive response from the FDA. The actual result, however, was the FDA rejected the company’s TLANDO New Drug Application. The Administration explained that the trial didn’t meet several endpoints for “maximal testosterone concentrations.”
Following the design and acknowledgment of a reasonable path forward, LPCN stock was back in motion as we’ve seen. Since the start of the year, shares have risen by as much as 512% and are still up over 300% year-to-date. Once again the eyes are on TLANDO once again. Due to COVID, the FDA has pushed back certain dates. One, in particular, has been Lipocine’s New Drug Application resubmission.
This week could be an important one for the company. Reason being, the FDA told Lipocine that it’s working towards taking action on the TLANDO New Drug Application “on or about the week of November 30, 2020.”
Considering the fact that this is the week ahead, it will be interesting to see if or when there’s an update to this info. Similar to what we saw back in November 2019, this could pose a higher risk situation depending on the outcome.Biotech Penny Stocks To Buy [or avoid] #2: Mustang Biotech
Mustang Biotech and Fortress Biotech have been some of the more active biotech penny stocks to watch this year. While, overall, the trends are relatively flat from the start of the year, volatility throughout 2020 has attracted traders. The connection between the two is that Mustang was founded by Fortress Biotech, Inc. (FBIO Stock Report). In many cases, sympathy momentum from either can impact the markets as well. This week both will likely be on the radar ahead of the upcoming American Society of Hematology Annual Meeting (ASH Meeting).
Interim Phase 1/2 data on Mustang Bio’s MB-106, a CAR-T cell therapy for patients with certain non-Hodgkin lymphomas, will be presented by Mustang’s research partner Fred Hutchinson Cancer Research Center. Furthermore, Phase 2 data on Caelum Biosciences’ CAEL-101 will be presented by the Cleveland Clinic during oral and poster sessions. CAEL-101 is being developed in a collaboration between Caelum, a company founded by Fortress, and Alexion Pharmaceuticals, Inc., recently progressed into Phase 3 development. It’s for the treatment of relapsed or refractory amyloid light chain “AL” amyloidosis.Biotech Penny Stocks To Buy [or avoid] #3: IMV Inc.
IMV Inc. saw a big jump earlier this year. July saw the penny stock jump to highs of over $6 after IMV made a big update. The company reached an agreement with Health Canada on Phase 1 clinical study-design protocol for its Covid-19 vaccine program. Furthermore, the company said it would begin Phase 1 clinical trials during the summer, with results expected in the fall of 2020.
IMV said it also plans to begin Phase 2 clinical trials in the second half of the year, once results are published. Subject to Health Canada’s approval and after the completion and submission of the preclinical safety, GLP toxicology, and challenge studies, the Phase 1/2 trial is expected to be approved and initiated before the end of 2020.
This week, IMV is set to hold a key opinion leader event before the open on Dec. 3. The company will provide an update on the Phase 2 trial of its T cell therapy in patients with advanced ovarian cancer. IMV management will discuss trial results and their significance to DPX, the company’s delivery platform, as well its outlook on next steps. As of October 30th a total of 106 patients out of the planned 184 patients have been enrolled across all five indications at 19 clinical sites in Canada and the US.Biotech Penny Stocks To Buy [or avoid] #4: Corvus Pharmaceuticals
Corvus Pharmaceuticals is another thinly traded biotech penny stock on this list. However, during periods of positive milestone headlines, CRVS stock has a tendency to experience volatility. It’s also important to keep in mind that during these periods, CRVS stock doesn’t usually sustain gains. If you look back in October and prior to that in July, the penny stock jumped up big. What followed was an almost immediate pullback in the stock. Whether or not any of that is the case moving forward is to be seen. However, this week, Corvus is expecting some updates.
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Specifically, clinical data from the CPI-818 phase 1/1b clinical trial is planned to be presented at the ASH Meeting. CPI-818 is an oral, small molecule drug that has been shown to selectively inhibit ITK. The multicenter Phase 1/1b clinical trial is targeting patients with several types of T-cell lymphomas.
Aside from this, the company also has an experimental COVID treatment candidate, CPI-006. The pivotal study for the immunotherapy for COVID-19 is expected to begin enrolling patients by the end of the year.Biotech Penny Stocks To Buy [or avoid] #5: Cocrystal Pharma Inc.
Cocrystal Pharma has been one of the top biotech penny stocks to watch recently. While there isn’t an upcoming presentations to note, COCP stock has been a driving force among small cap stocks this month. Heading into the final session of November, shares have extended a strong 3-day move. Last week, the penny stock hit a low of $0.79 and by Friday afternoon had finished out the week at $1.89 following prior highs of $2.07. What’s more, is that even during the post market session of Friday’s half-day, COCP stock continued trading higher, reaching $2.09 by the time the after-market bell signaled the market’s final close.
Investors have followed the progress made in Cocrystal’s ongoing Merck (MRK Stock Report) collaboration to discover and develop influenza A/B antiviral agents. The company also reported continued advancement of its wholly-owned Influenza A development program and IND enabling studies towards Phase 1 clinical study in 2021. Considering the similarities between influenza and COVID-19, COCP stock has been one to watch recently.
Cocrystal has 2 programs targeting novel antiviral compounds for treating coronavirus infections. One program includes compounds licensed from Kansas State University Research Foundation. These have shown in vitro anti-SARS-CoV-2 activity, and in vivo efficacy in MERS-CoV-infected animal models. The company anticipates the selection of a lead preclinical molecule by the end of this year. So has we head into the final month of 2020, this could be a major point of focus for those watching COCP stock right now.