It’s February 2021, and the markets are at all-time highs. Trading volumes remain strong, and penny stocks continue captivating retail traders. We also see several hot industries fanning the flames of this market rally. In taking a look at some of the benchmark ETFs for several industries, biotech stands out.
The iShares Trust Nasdaq Biotech ETF (NASDAQ: IBB) is up 13% since the start of the year and just made a fresh, all-time high on Monday. Compare this to other popular industries like the XLK tech ETF or event the Healthcare ETF, XLV and the move in biotech has outshined both in a big way.
We can even see the industry outpacing the broader markets. Since the beginning of 2021, the S&P SPY ETF and Invesco Nasdaq QQQ EF are each up 4% and 5.9%, respectively. While there’s no arguing with broad market gains like that, you also can’t argue with the fact that biotech is far outpacing the market in a big way. Not only do we see progress in many of the vaccine stocks, but in other areas as well.
One of the catalysts for this has been the flood of new retail traders flocking to the markets. I don’t have to detail how the GameStop short squeeze brought more strength to the retail community. I will say that since the event, many new traders are adding to the daily volume we see in countless penny stocks. The frequency of big breakouts is becoming greater. This month’s jump in shares of companies like Ocugen (NASDAQ: OCGN) demonstrated the ferocity of this retail buying spree.Biotech Penny Stocks To Buy [or avoid]
- Tyme Technologies Inc. (NASDAQ: TYME)
- Caladrius Biosciences Inc. (NASDAQ: CLBS)
- Precipio Inc. (NASDAQ: PRPO)
- Navidea Biopharmaceuticals Inc. (NYSE: NAVB)
Having experienced a volatile year in 2020, Tyme Technologies Inc. has been much more bullish this year. In fact, since the end of December, shares of TYME stock have jumped up from around $1.11 to highs of $4.99 this month. As with many companies that raise money, TYME shares dipped after the company announced a $100 million raise. Gross proceeds were earmarked for its clinical activities and potential investments, among other things.
However, now, with money in hand, it looks like the market is back in the swing of things. One of the big reasons was that Tyme announced the official closing of this offering late in the day on Monday. One of the core focuses for traders has been on the company’s potential Covid-19 vaccine. TYME announced on February 3rd that it received notification that the United States Patent and Trademark Office has granted additional patent claims related to its metabolomic technology platform. The patent, U.S. Patent No. 10,905,698, is directed to methods for treating COVID-19.Caladrius Biosciences Inc.
Caladrius Biosciences is another one of the biotech penny stocks to watch after a post-market surge on Monday. Momentum picked up just after the closing bell taking CLBS stock to highs of $2.57. For some context, the company focuses on cellular therapies designed to reverse disease. The month of February has been and will be full of presentations for Caladrius. Last week, the company presented at the LSX World Congress and the Charlotte CIO Executive Leadership Summit. Next week Caldrius is set to attend the BIO CEO & Investor Digital Conference.
One of the main topics of discussion right now related to the company is its Phase 2b FREEDOM trial of CLBS16. This is the company’s coronary microvascular dysfunction treatment. The 105-patient double-blind and placebo-controlled clinical trial is designed to evaluate the efficacy and safety of intracoronary delivery of autologous CD34+ cells (CLBS16) in subjects with CMD.
The company’s CLBS201 and CLBS14 may hold the most near-term prospects right now. First, Caladrius is hoping to gain clarity on the development plan for CLBS14 during the first half of this year. This is its angina treatment. As for CLBS201, the plan is to file an IND for this program in the second quarter of this year. Caladrius has explained that it will initiate a Phase 1/2 proof-of-concept study of CLBS12 in a moderate to severe chronic kidney disease thereafter.Precipio Inc.
Another one of the biotechs that we’ve covered several times recently is Precipio and for a good reason. If you look at the penny stock’s chart, you’ll see why. Since the end of December, PRPO stock has been on the move rising over 70%. One of the main points of interest is on the company’s diagnostics platform. In particular, Precipio created HemeScreen technology to help prevent misdiagnoses in certain cancers.
In fact, it recently signed agreements with two of the largest oncology practices in the US, West Cancer Center of Memphis, TN; and New York Cancer & Blood Specialists of New York. The goal is to improve turnaround time for molecular tests for diseases like Myeloproliferative Neoplasms, Chronic Lymphocytic Leukemia, and Acute Myeloid Leukemia.
But there are more things to discuss than “just cancer.” Obviously, I’m kidding when I say that, but we know the market’s thirst for Covid news. In light of this, following receipt of Emergency Use Authorization from the FDA by Nirmidas Biotech, Inc., the developer and manufacturer of a COVID-19 antibody test, Precipio has begun rolling out these tests to the market.
Precipio has gone after its low-hanging fruit, beginning with its installed oncology customer base. It will expand into the market via additional sales channels. According to the company, this is the first US-based product to receive EUA for point-of-care for its rapid COVID-19 antibody test.
While NAVB stock didn’t push up as much as other penny stocks on this list, it did see an 11% gain on Monday. During after-hours, shares of NAVB stock shot up to a high of $3.90 before ending the day at a respectable $3.12 per share. While many gains go without news, Navidea made an exciting announcement after-hours. Before we get into it, let’s take a look at what the company does.
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Navidea is a biopharmaceutical company focused on immunotherapeutics. It has several products that are based on its Manocept platform. With this platform, the company can enhance diagnostic accuracy and allow for more specific treatments. On Monday, Navidea announced that it submitted a formal Type B Meeting Request to the FDA, where it was then granted soon after.
Now, the FDA is reviewing the company’s results regarding its NAV3-31 Phase 2B study and how it is designing its Phase III trial. Michael Rosol, the Chief Medical Officer at Navidea, stated, “We are eager to receive feedback from the FDA on our NAV3-31 Phase III design, and we are excited to have opened up our first site in the important NAV3-32 trial. Throughout our RA program development, we have worked closely with expert rheumatologists, nuclear medicine specialists, and the FDA itself.”
If the trial is approved, the company could soon enroll patients to see whether its treatment works for Rheumatoid Arthritis. Obviously, this is exciting news for both the company and investors. Furthermore, the momentum after-market was definitely something to take note of. But even with this, is NAVB a penny stock to watch?Should You Have Biotech Penny Stocks On Your List Right Now?
This is a great question and one that only you can answer. Obviously, we see plenty of momentum in the market right now, and a lot of that stems from biotech. The sheer bullishness that these industry stocks have demonstrated makes it clear that it’s a hot one to watch. But as with all things, pull-backs happen. Will biotech remain hot, or is there some consolidation coming soon?