Unique Pipelines Could Have These Penny Stocks On The Radar Before 2021
We talked about some biotech penny stocks earlier today and several took flight early. As the markets race to all-time highs once again, it’s no wonder why this sector is on fire. Countless companies are not only designing COVID treatment candidates, the interest has spilled over into other types of biotech stocks. Everything from cancer treatments and heart disease, to nutraceuticals and lifestyle health products, are becoming a focus.
Meanwhile, on a more narrow focus the Biotech ETF – IBB – has leaped to new all-time highs on its own. Unfortunately, the Health Care ETF – XLV – has lagged a bit, it too has found itself a strong uptrend this week. Currently, all-time highs for the XLV sit around $114.41. The ETF currently sits just shy of $113 during Tuesday’s lunch hour. As they say, the trend is your friend. In this case, biotech stocks are performing well during the second week of the month so it might not be a bad idea to find some penny stocks to watch right now.
Penny Stocks To Watch: Havn Life Sciences
You might’ve never thought psychedelics would be on the menu alongside biotech stocks. But it’s 2020 and states are now legalizing and decriminalizing psychedelics. Some will call them magic mushroom stocks. Others will look for psychedelic stocks, in general. Havn Life Sciences (HAVLF Stock Report) is in a unique position among other “mushroom stocks” in that it’s pushing forward with an initiative to become a “go-to” for things like psychedelic research.
In early Q4 2020, Havn Life expanded its international footprint. The company joined the Drug Science Medical Psychedelics Working Group consortium. The working group was launched by Drug Science, UK’s leading independent scientific body on drugs that provides an evidence base, free from political or commercial influence, which creates a foundation for sensible and effective drug laws, by delivering, reviewing and investigating scientific evidence relating to psychoactive drugs.
Havn announced a new partnership with veterans mental health non-profit, Westwood Institute. The focus is to work with Havn in developing therapy using psychedelics for veterans. This came just a few days after joining the Conservative Drug Policy Reform Group becoming a voting role in policy reform specific to psychedelics in the UK. Something to also keep in mind is that after gaining Health Canada approval, Havn plans to launch the first 7 natural health products in the Canadian market in 2021. It’s also worth mentioning that Havn’s leadership team has been a big sticking point for the markets recently.
Executive Chairman Vic Neufeld was the CEO of Aphria for 5 years from 2014 to 2019. This was the heyday of the company and saw Aphria’s valuation explode significantly.
Penny Stocks To Watch: Trevena Inc.
Trevena Inc. (TRVN Stock Report) had a much stronger day on Tuesday. Since the end of November, there hasn’t been much from the company itself and share prices have slowly tip-toed lower following a filing for a shelf registration. The shelf is in place to raise up to $250 million and, as usual, traders have taken a cautious approach to the penny stock. Right now, the company may be looking to raise money to support operations and its treatment pipeline.
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The company’s OLINVYK was approved by the FDA in August 2020 and is indicated in adults for the management of acute pain. In October, The company said after the DEA made its classification of one of the ingredients, oliceridine, as a schedule II substance, it expected to make Olinvyk available for distribution in November.
Analysts have remained bullish on this penny stock in 2020. Guggenheim’s Buy rating and $5 price target puts the TRVN stock forecast just under 120% at current levels. While it’s still unclear as to the timing, if at all, of a potential capital raise, Tuesday’s action was noticable.
Penny Stocks To Watch: Sesen Bio Inc.
This clinical-stage company was one we discussed over the weekend. The company’s lead program, Viceineum is currently in Phase 3 trials for the treatment of invasive bladder cancer. One of the biggest reasons Sesen Bio (SESN Stock Report) is on the list of penny stocks to watch right now is what was announced earlier this week. The company reported a commercial manufacturing and supply agreement with its partner, Qilu Pharmaceutical. Sesen received a $2 million milestone payment upon completion of a technology transfer for manufacturing of Vicineum. The formal transfer is expected mid next year.
“Qilu has a large and experienced manufacturing team and currently supplies products for commercial sale around the world. The CMO Agreement represents an exciting expansion of our strong partnership with Qilu and will help Sesen Bio to reliably meet the projected global demand, while also creating an opportunity to reduce the cost of goods.”
Dr. Thomas Cannell, president and chief executive officer of Sesen Bio.
The company also recently signed a deal with Hikma to license Vicineum and register it for commercial use in the Middle East and North Africa. The deal opens up earn-out and milestone opportunities for Sesen as well as an upfront payment. Now, with these two latest deals to bring Vicineum onto a global platform in place, what will the next moves be for Sesen heading into 2021? If Cannacord Genuit is to be believed, the firm has a Buy rating and $5 target on the stock; over 200% higher than current levels.
Penny Stocks To Watch: Zosano Pharma Corp.
Zosano Pharma Corp. (ZSAN Stock Report) has been in recovery mode for most of the fourth quarter. It took a big hit in late September that carried into the first half of October. However, since the beginning of November, ZSAN stock has been one to watch as it has climbed from 52-week lows of $0.3275 to recent highs this week of $0.6428. Thanks to stronger earnings results, year over year, Zosano seems to have weathered the storm for now. There’s still a long way to go to reach its September levels. Though analysts appear to have a bullish stance on the company for now. HC Wainwright has a Buy rating on the stock. As far as its ZSAN stock forecast, it priced its target at $2.
“Our priority focus is obtaining resolution regarding the NDA for Qtrypta(TM),” said Steven Lo, President and CEO of Zosano in its Q3 business update.
Qtrypta is the company’s migraine treatment. The company plans on having a Type A meeting with the FDA to look for clarification on next steps on an NDA resubmission. In advance of a potential approval, the company also partnered with EVERSANA to commercialize and distribute Qtrypta(TM). So, while the markets await a decision, traders have continued speculating on a potential outcome.
Penny Stocks To Watch: Auris Medical Holdings
Auris Medical Holdings (EARS Stock Report) was one of the big winners to to start December. EARS stock jumped from $1.46 to highs of $6.60 within a single session. While the penny stock has since slid back down, it didn’t give up all of that move. In fact, EARS stock is still trading 163% higher than where it was trading for most of November. What’s got EARS on watch right now is the uptick in both price and trading volume on Tuesday. There weren’t any headlines to go along with the move however, some news on Monday may have helps trigger a bit of speculative action.
Following the closing bell, Auris announced that it would present at the LD Micro Main Event investor conference next week. As we know, COVID-19 has been a big point of focus in the biotech community. Auris has a potential treatment in the form of a drug-free nasal spray, AM-301, to protect against Sars-CoV-2 infection. Recent data from in vitro testing showed AM-301 reported a 99.4% reduction of viral titer in human epithelial cell cultures.
“We look forward to taking AM-301 through additional tests and advancing the program towards the submission of regulatory applications in 2021.”
Thomas Meyer, Auris Medical’s founder, Chairman and CEO
Considering this development earlier in the month and the upcoming presentation next week, EARS stock could be one to watch in December.