If You Like Biotech Penny Stocks, Check These 3 Out
Biotech penny stocks are some of the most popular securities in the stock market right now. Within the industry, many different companies are working on a large range of projects. Traders should understand that investing in biotech can be both a short and long-term opportunity. Very quickly, companies can see valuations change by massive amounts.
If a company receives approval from the FDA or a positive result from a clinical trial, this can often lead to high speculation and volatility. To differentiate biotech stocks by their volatility, investors should consider the difference between biotech penny stocks that play a role in Covid or those that don’t for right now. The former tend to be much more volatile based on broader market headlines and virus data.
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Biotech Penny Stocks to Watch
This year, however, the increased focus has resulted in billions in capital flowing into the biotech industry. So with scientific breakthroughs happening regularly, biotech stocks remain popular among a variety of investors. But, to find the most valuable biotech penny stock to watch, investors need to consider a few things.
For one, does the company have an established pipeline of compounds in the various stages of approval? Also, investors should consider a company's financial situation in contrast with its prospects in the works. So with April breezing by, here are three biotech penny stocks that you might want to check out.
- MannKind Corp. (NASDAQ:MNKD)
- Enveric Biosciences Inc. (NASDAQ:ENVB)
- CytoDyn Inc. (OTC:CYDY)
Penny Stocks To Watch: MannKind Corp.
A few weeks ago, analyst firm BTIG Research rated MNKD with a "Buy." Also, it added a price target of $8 for MannKind Corp. This represents over 83% above its April 6th trading levels. Because MannKind has had a strong 2021 so far, many investors are paying attention to it.
The company produces inhaled therapeutic products for some context, which have indications in treating those with both diabetes and pulmonary arterial hypertension conditions. Back in February, shares of MannKind jumped around from under $3.50 to highs of over $6. This type of volatility is commonly seen among biotech penny stocks.
One of the major reasons for the recent bullishness with MNKD is an announcement made a few weeks ago. MannKind stated that it would be participating in the 2022 Medicare Part D Senior Savings Model.
The goal of this project is to add a more affordable insulin product to the market. MannKind's Afrezza compound is a first-of-its-kind inhaled insulin for use in those with diabetes. In the savings model, MannKind will offer AfrezzaAssist, which will be a low-cost solution to current insulin forms. This can bring the copay to as little as $15 per prescription.
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MannKind also recently acquired QrumPharma. Now, it has access to a nebulized form of clofazimine in its pipeline to treat orphan lung diseases. Additionally, MNKD has entered into a collaboration agreement with Vertice to promote the compound, Thyquidity, for hyperthyroidism. All of these prospects make MNKD an interesting penny stock to watch.
Enveric Biosciences Inc.
Enveric Biosciences is another biotech company working in a unique area of the market. ENVB utilizes cannabinoid-based medicines to treat various forms of cancer. These novel medicines have indications in radiodermatitis and chemotherapy-induced neuropathy, among others. Only a few days ago, Enveric announced its full-year 2020 financial results and some accomplishments that occurred during the first quarter of 2021.
The company closed on two direct offerings, bringing in over $22.8 million in gross proceeds and $3.3 million from warrant exercises. Additionally, Enveric signed into a definitive agreement with Diverse Biotech to acquire an exclusive license to develop five novel cannabinoids. These are used in the treatment of both pain and dermatological issues as a result of cancer treatment.
CEO of Enveric, David Johnson, stated that "since the closing of our going public transaction in late December 2020, our team has achieved several critical milestones that have positioned our Company to accelerate the execution of our vision to extend and enhance the quality of life for cancer patients in need through researching and developing novel supportive care therapies."
Enveric plans to seek approval from the Israeli Ministry of Health, Center for Cannabis, to proceed in a Phase I/II trial to treat Glioblastoma Multiforme. This is in addition to several other trials it has that are ongoing right now. With this information, we see that Enveric Biosciences has a lot of opportunities in the works. Its clear roadmap for the next year or so could also help to inspire confidence amongst investors. It will come down to execution moving forward.
CytoDyn Inc.
We've covered CYDY stock a few times in the past for its innovations and continued progress. On April 5th, the biotech company announced a significant improvement in its first patient treated with leronlimab for Covid-19. A few weeks ago, it received FDA approval in the Philippines to use Vyrologix (leronlimab) in those suffering from the coronavirus.
Only 38 hours after administering the dose, the patient ‘significantly improved.' The company will reportedly provide a statement on this matter on April 7th in a webcast. To help accelerate the development and manufacturing of leronlimab, CytoDyn announced a $28.5 million convertible note financing deal on April 5th.
CEO of CytoDyn, Nader Pourhassan, PhD., stated that "we are very pleased with the institution's demonstration of confidence and their understanding of leronlimab's positioning on its regulatory trajectory. This infusion of capital will help ensure that we have sufficient quantities of leronlimab available upon any potential approvals for Covid-19 treatment. We believe leronlimab's power to help Covid-19 critically ill population is unmatchable."
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This is highly encouraging for the company and investors alike. Given that it has a product that works in treating Covid-19, CytoDyn could be worth watching. But, investors have to also consider two things. On the one hand, (hopefully) Covid won't be around forever. So investors need to know what else CytoDyn has in the works. On the other hand, there may be some time before regulatory approvals are completed. Despite this, there's no doubt that this is an exciting time for the company.