Biotech penny stocks have become some of the most popular investments throughout the pandemic. Prior to this, biotech stocks were also quite popular, but not to the extent that they are now in my opinion. Within the industry, there are two types of penny stocks to watch. On one hand, we have biotech penny stocks that have a place in the COVID-related subsector. These are companies that are producing or researching potential treatments to help in the fight against COVID. On the other hand, we have all of the other biotech penny stocks in the stock market.
While the latter may seem like it’s not worth watching, it turns out that it is quite the opposite. In the past few months, we have seen many biotech stocks have a high correlation with one another. This means that regardless of a company’s involvement with COVID, it could have the potential to see gains related to the industry momentum as a whole. This is in no way a guarantee, but rather a trend that has shown itself in the past ten months.
With a vaccine in distribution as we speak, it looks like the pandemic could soon become much easier on the world. In the meantime, however, cases around the U.S. and in other countries are continuing to grow. With this in mind, December 2020 could be a good time to take a closer look at certain biotech stocks.Biotech Penny Stocks to Watch Right Now
- Arca Biopharma Inc. (ABIO Stock Report)
- Hepion Pharmaceuticals Inc. (HEPA Stock Report)
- Iterum Therapeutics PLC (ITRM Stock Report)
- electroCore Inc. (ECOR Stock Report)
Arcaba Biopharma Inc. is a biopharmaceutical company with a long history in the industry. The company is considered to be a part of the COVID-related, subsector as it is producing novel therapies to aid in the treatment of the coronavirus. Its drug known as rNAPc2 is being studied for its efficacy in treating RNA viruses.
And, it just so happens that covid is one of these types. This means that the drug may have potential in treating those suffering from COVID-19. In addition to this, the company is also working on the production of a drug known as Gencaro. This drug is in use as a vasodilator in combination with its beta-blocking compounds. For this reason, it can be used to treat those suffering from cardiac illnesses.
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Recently, the company announced that it had enrolled its first patients in the 2B clinical trial of RNAPc2 as a treatment for covid. Dr. Michael Bristow, CEO of Acra, stated that “there is a critical need for safe, efficacious treatments in hospitalized covid-19 patients, and we believe this need will continue even with potentially effective vaccines available. We believe rNAPc2’s combination of anticoagulant, anti-inflammatory and antiviral effects may favorably impact the clinical recovery of patients hospitalized with Covid-19, and we look forward to completing the ASPEN-COVID-19 trial evaluating rNAPc2’s potential efficacy in this patient population.”Biotech Penny Stocks to Buy [or avoid] #2: Hepion Pharmaceuticals Inc.
Hepion Pharmaceuticals Inc. is one of the better gainers of the day on December 21st. By EOD, shares of HEPA stock shot up by around 9%, ending the day at $2.12 per share. The company operates as a clinical-stage biopharmaceutical company with a focus on treating liver diseases. Its main drug known as CRV431 inhibits the reproduction of cyclophilins.
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For those who aren’t biology professors, these are substances in the body that can act as disease-causing agents. In recent studies, CRV431 has shown efficacy in reducing debilitating liver illnesses such as fibrosis and hepatocellular carcinoma. In addition, the company has a proprietary platform known as AI-POWR, which utilizes artificial intelligence to predict how patients will respond to certain treatments.
Recently, the company announced that it has dosed its first patient in the Phase 2a trial of CRV431. Dr. Robert Foster, CEO of Hepion, stated, “we are pleased to complete dosing of all NASH patients in our 75 mg CRV431 cohort. All patients now go under observation for a 13-day follow up period. Thus far, CRV431 appears to be well-tolerated in patients. Importantly, we will also be examining fibrosis using multiple non-invasive measures.”
While it isn’t related to COVID per se, the company has seen increased popularity due to more investors focusing on biotech penny stocks.Biotech Penny Stocks to Buy [or avoid] #3: Iterum Therapeutics PLC
Iterum Therapeutics PLC is another pharmaceutical company working on several unique drugs for commercialization. The company states that its focus is on the development of anti-infective drugs. This includes drugs that are targeted at diseases that third world countries are facing in greater numbers. Iterum Therapeutics currently states that its main substance, Sulopenum, has shown efficacy in treating bacteria that are resistant to other antibiotics. This is a major benefit to the antibacterial pharmaceutical industry, as antibiotic resistance is increasing every year. On December 21st, the company announced that it has received approval to begin trading on the NASDAQ exchange. The transfer to the NASDAQ should occur as on Wednesday, December 23rd.
Last month, Iterum announced the submission of a new-drug application to the FDA. This application, which pertains to oral sulopenum, would offer doctors a new way to treat certain antibiotic-resistant bacterias. Corey Fishman, CEO of the company states that “oral sulopenum, if approved, would mean that physicians and patients have the opportunity to benefit from the proven efficacy and safety of penem antibiotics that, to date in the U.S., have only been available in IV formulations.”
Whether or not this drug gains approval remains to be seen. But, with its promising formulation of its antibiotic, Iterum Therapeutics could be on the watch list right now.Biotech Penny Stocks to Buy [or avoid] #4: electroCore Inc.
electroCore Inc. comes in as another biotech penny stock with some promising products in its pipeline. The company works in the bioelectronic industry. This niche involves the production of nerve stimulation therapies as well as preventative treatments for migraines. The company has a large focus on neurology. Its stimulation products target brain-related ailments. Recently, the company announced that its gammaCore Sapphire nerve stimulation technology will be available in Eastern Europe. This will be done through a contract, making Pro Medical Baltic, the exclusive distributor of gammaCore Sapphire.
Partnerships like these are quite common in the biotech industry. They allow for increased production and distribution of potentially life-changing medicines and technologies. The goal of this deal is to make electroCore’s nVNS product, be available to a wide range of new locations. Pro Medical Baltic, its distribution partner, has a long history of operating in these countries, and can hopefully provide a large distribution network. As a bioelectronics company, electroCore only has a small amount of competition in the market it works in. With all of this in mind, it’s up to individual investors to decide whether or not it is a penny stock to watch.