Are penny stocks worth it? Take a look at some of the names and charts on this list and I’ll let you be the judge. Needless to say, where some penny stocks break out big in a single day or a few days, others go on to run for weeks, months, or even years. Take a look at some of the vaccine stocks over the last year and you’ll see what I mean. Novavax )(NASDAQ: NVAX)and Cassava Sciences (NASDAQ: SAVA) are a few of the more popular names to look at when it comes to names in that niche.
Both SAVA stock and NVAX stock have surged from levels under $5 to over $100 in the last year. Do all penny stocks experience such explosive, sustained gains? The obvious answer to that is no. However, there are a few ways to look at these cheap stocks.
The first that most retail traders focus on is a stock that could jump quickly for short-term gains. The other side of the coin, however, is what we’ll focus on today. This is all about early-stage companies that have started small but have gone on to become big movers thanks to key, fundamental developments fueling momentum.Former Penny Stocks To Watch Right Now
With this theme in mind, industries can also become great catalysts. Biotech has become well-known for producing monsters. The underlying potential of these companies involves life-changing products. Whether it’s the next diagnostic medical device preventing diseases or the latest immunotherapy targeting cancer, big money is being spent to develop novel pipelines. With that has come big breakouts in the market and even bigger mergers and acquisitions.
While it’s well-known for its coronavirus treatment, BioNTech (NASDAQ:BNTX) has shifted from COVID to cancer earlier this month. This came after its latest treatment acquisition from Gilead’s (NASDAQ:GILD) Kite subsidiary. BioNTech acquired Kite’s neoantigen TCR cell therapy R&D platform along with its Maryland-based manufacturing facility. On top of that, other developments from the likes of Novartis (NYSE:NVS), Merck (NYSE:MRK), and Bristol-Myers Squibb (NYSE:BMY) have shed an even brighter spotlight on biotech stocks. Here’s a list of former penny stocks seeing explosive moves in the market this year:1. GT Biopharma (NASDAQ: GTBP)
GT Biopharma has been on our list of penny stocks to watch since the first quarter of the year. This is right around the time that things started to really build up in the company. An uplisting from the OTC to the NASDAQ as well as tens of millions in new funding to go along with it were just a few of the early highlights. Fast-forward to recently and now the market has become familiar with GT Biopharma’s novel oncology treatment pipeline and technology. The focus here isn’t on the typical “T-Cell” therapy or traditional chemotherapies. In GT’s case, the company is developing a targeted cancer treatment utilizing natural killer or “NK” cells.
In our article, “Biotech Stocks Are In Focus After Merck’s FDA Approval,” we discussed how cancer treatments have evolved from broad chemotherapy to individually customized medicines. NK cells can be created to trigger certain immune responses in various patients. These cells essentially “identify” cancer cells on their own or in combination with other treatment platforms. The early findings from companies actively creating NK cell pipelines have shown early potential. With GT Biopharma, the company has brought in one of the leading voices in NK cell research, Dr. Jeffrey S. Miller, M.D.
He is the company’s Consulting Chief Scientific Officer and Deputy Director of the University of Minnesota’s Masonic Cancer Center. Dr. Miller has been credited with pioneering NK cell therapies and initially found that these cells can induce remission in patients with refractory leukemia. He has also been a key component of developing GT Biopharma’s tri-specific killer engager (TriKE) treatment technology.What To Watch With GTBP Stock
The company signed a sponsored research agreement (SRA) with Dr. Miller last month focusing on the clinical development of GT’s TriKE product candidates. Based on his previous endeavors with NK cell candidates, this news has been circulating among those searching for new cancer stocks to watch. Dr. Miller has supervised over 400 NK cell products and sponsored more than 10 investigational new drug applications.
Something to keep in mind right now is that it isn’t just the pipeline as a whole that the market is focusing on right now. GTB-3550, the company’s first TriKE™ candidate, is under development for treating acute myeloid leukemia (AML), myelodysplastic syndrome (MDS), and other types of CD33+ hematopoietic malignancies. This treatment is currently in Phase I/II clinical trials and has already shown meaningful results in the first few handfuls of patients undergoing treatment. The Phase 1 safety portion of this trial is expected to finish up this month with a data publication scheduled for September.
It’s these two points of interest that have some analysts anxious to see results. Analysts from B. Riley explained, “Based on the press release and our subsequent conversation with management, we are encouraged by the mounting evidence of clinical activity and the emerging safety profile of lead asset GTB-3550…With the dose-escalation portion of the trial expected to complete towards the end of August 2021, we are raising our probability of success for GTB-3550 in CD33+ acute myeloid leukemia (AML) and higher-risk myelodysplastic syndrome (HR MDS) from 25% to 30%, with a commensurate increase in our 12-month price target.” Read Full Analyst Report Here. They also have a Buy rating on the stock with a $26 target.Inovio Pharmaceuticals (NASDAQ: INO)
Shares of Inovio traded around penny stock territory earlier this year. If you go back to pre-covid, you’ll see that INO stock was firmly below the $5 threshold. Since then, a lot has happened. I won’t get into the full history lesson here. But I will say that last year was one of the biggest that the company had seen. This was thanks to the company’s work in developing a vaccine candidate.
Fast-forward to this summer and INO stock remains well above $5 with the market continuing to focus on its coronavirus developments. In fact, in June, the company had expanded its partnership with Advaccine Biopharmaceuticals Suzhou to conduct a Phase 3 segment of a trial called INNOVATE. The goal is to evaluate the safety and efficacy of the company’s INO-4800 in COVID patients. The treatment was already shown to be well tolerated and immunogenic in tested age groups in a Phase 2 study.What To Watch With INO Stock
Toward the end of July, the company was granted a patent titled “Electroporation device with detachable needle array with lock-out system,” which spurred a bit of attention in the market. However, there are a few other potential catalysts to keep track of in the near term. The first could be the company’s upcoming earnings on the 9th. Aside from financials, Inovio will also give some color to its DNA medicines platform, which includes its vaccine developments.Annovis Bio Inc. (NYSE:ANVS)
On the higher end of the spectrum, Annovis Bio looks much different right now compared to where it was less than a year ago. In fact, November is when the former penny stock hit 52-week lows of $4.14 before going on to sprint as high as $132 earlier this quarter. One of the recent catalysts that sparked a mass exit from the stock was details on the company’s Alzheimer’s treatment. The company presented biomarker data at the 2021 Alzheimer’s Association International Conference in late July.
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Phase 2 studies of its lead compound ANVS401 failed to show statistically significant differences versus placebo. Despite this being the case, once footing was found in the market, ANVS stock has begun rebounding to start August. Shares have bounced from lows of $33.08 on Friday to early highs on Monday of over $40.What To Watch With ANVS Stock
What happened to ANVS stock is one of the examples of how drastically things can change when data is at the center of attention. While some biotech stocks greatly benefit from positive results, negative data can do the exact opposite. Since this is a Phase 2 study, the company could be looking for ways to adjust certain portions of its study to lead to better outcomes. The company has additional studies going on right now at 6 sites in a Phase 2 AD trial. These sites include Johns Hopkins, Indiana University, and the Cleveland Clinic among other locations. Final data from this isn’t expected until next year. So there is likely plenty to continue to watch when it comes to Annovis between here and there.Are Penny Stocks Worth It?
I asked this question earlier. After looking at just a few of the companies mentioned on this list, what’s your answer? Volatility, uncertainty, and speculation are all drivers of momentum when it comes to cheap stocks. Peeling away that layer of technical research, fundamentals also play a role when looking at the longer-term potential. With biotechnology stocks having plenty of moving parts, it’s important to do your research and keep track of important dates, studies, and ongoing trials to help determine potential catalysts or pitfalls that might come along the way.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from June 2, 2021, to July 1, 2021. This compensation is payment 4 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 2, 2021, to July 29, 2021. This compensation is payment 5 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 29, 2021, to September 2, 2021. This compensation is payment 6 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click here for full disclaimer.