Are These Biotech Penny Stocks Worth Watching?
Over the past year and a half, biotech stocks and biotech penny stocks, in particular, have become extremely popular. While they were popular before the pandemic, many believe that we could be in a golden age for biotechnology as a whole.
But, it’s not enough to simply find a biotech company that looks interesting. Rather, investors need to do the proper due diligence to ensure that the company has several of the following attributes.
What to Look For In a Biotech Penny Stock
For one, does it have any products currently in commercialization or close to being sold? Many biotech companies have a lot going on in their pipelines, however, they have yet to get a product fully approved. This can take years and millions of dollars. And for this reason, it is an extremely important factor to consider.
The second thing to keep in mind is what type of financial situation the company is in. Does it have enough funding to keep its operations going into the foreseeable future? Did it just fundraise through a stock offering or other method? These are equally important as they can illustrate what share dilution may look like, and what the current state of the company is from a financial perspective.
While these are by no means the only aspects to look out for, they are quite important when searching for a penny stock to buy in the biotech industry. So, with all of this in mind, let’s take a look at three with high volume in 2021.
3 Hot Biotech Penny Stocks For Your 2021 Watchlist
Akebia Therapeutics Inc. (NASDAQ: AKBA)
Akebia Therapeutics Inc. is a biotech penny stock that develops and commercializes products for those with kidney diseases. Akebia’s main product is vadadustat which is in Phase III development to treat anemia caused by chronic kidney disease. The company also has Auryxia, which is for patients with CKD on dialysis. With the sizable pipeline that Akebia currently has, it’s no wonder that so many investors are following the company right now.
While shares of AKBA stock are moving right now, there doesn’t seem to be any company-specific news that is causing it. Rather, Akebia is slated to present its second quarter financial results on July 27th. This is the next update that we will likely get from the company.
And usually, prior to a balance sheet report, investors can show both excitement and nervousness regarding the future of a company. On July 27th, shares of AKBA stock shot up by around 4% or so by EOD. So, moving forward it will be interesting to see what the company reports in this new update. With this in mind, will AKBA stock be on your watchlist moving forward?
Seelos Therapeutics Inc. (NASDAQ: SEEL)
Seelos Therapeutics Inc. is a biotech company that creates therapeutics to treat central nervous system disorders as well as though that affect the respiratory system. Currently, Seelos is developing products for major depressive disorders, Sanfilippo syndrome, Parkinson’s disease, and more. The broad nature of the products that Seelos is developing means that many investors see potential long-term value with the company. While a lot of this is speculation, there is no doubt that SEEL has a lot going for itself right now.
On July 14th, Seelos announced that it will be participating in two separate investor conferences in August. The first of which is the BTIG Virtual Biotechnology Conference on August 9th and August 10th. Then directly after, Seelos will participate in the Canaccord Growth Conference on August 11th and 12th. The CEO and Chairman of the company, Raj Mehra, will present at these conferences to provide a corporate update and an overview of Seelos’s programs. Conferences like these are always exciting for investors as they allow for new insight into what a company is doing. For this reason, investors should pay attention to these upcoming events.
YTD, shares of SEEL stock have climbed by over 60%, indicating sizable bullish sentiment. At one point this year, SEEL exited penny stock status pushing above $6.30 per share. While the company is not near this high point right now, it is making solid progress in the market. Noting this info, will you be adding SEEL to your list of penny stocks to watch?
OPKO Health Inc. (NASDAQ: OPK)
Another trending biotech penny stock is OPKO Health Inc. This company creates pharmaceuticals and develops diagnostic products for a wide range of ailments. In addition, the company’s subsidiary, BioReference Laboratories, offers lab testing services to detect and treat diseases. One of OPKO’s main products is its Rayaldee treatment, which is used for those with stage 3 or 4 chronic kidney disease. This is a major breakthrough for the company and one that has yet to reflect onto its balance sheet.
Only recently, OPKO reported its balance sheet update for the latest quarter. Its senior management also provided a business update that is worth looking into. Ahead of this, there was a great deal of excitement with OPK stock, as shares pushed up by over 5% on Wednesday, July 28th.
Wall Street expects a year-over-year decline in earnings, with higher revenues in its results. This doesn’t necessarily mean that OPK stock is going to decline following these results being released. While earnings are important, investors should stay up to date with what the company is doing right now and what it could do in the longer term. This is especially true with biotech penny stocks as they can fluctuate greatly over a longer time frame. So with this information in mind, will OPK be on your biotech penny stocks watchlist next month?
Are These Biotech Penny Stocks Worth It?
Finding the best biotech penny stocks to buy is all about understanding the current trajectory of the market. With Covid still ongoing, there are plenty of opportunities for penny stocks investors to benefit.
However, it all comes down to what your trading strategy is and which penny stocks you choose for your watchlist. With all of this in mind, what do you think? Are these biotech penny stocks worth it or not?