Biotech penny stocks have seen extreme popularity throughout 2021. While the pandemic first had a detrimental effect on all stocks, penny stocks included, it quickly turned around. This meant that the companies benefiting from the pandemic such as reopening penny stocks, biotech stocks, and more, began to shoot up in value.
Now, a year and a half after the pandemic started, there is still a major emphasis on the biotech industry that investors can take advantage of. This includes both biotech companies that are working on a Covid treatment and those that are not. But, to understand how to find the best penny stocks to buy in the biotech industry, there are a few factors to consider.
First and foremost is what products they are producing. This could be the compounds in their pipeline and if it has any approved drugs or medical devices. The second factor to consider is what type of funding it has. This includes whether it’s done any recent fundraising rounds or if it has a large cash-on-hand balance.
These figures will help to show how long it can sustain its current business model and whether it can take on any new projects. Considering all of this, here are six biotech penny stocks to watch in July 2021.6 Biotech Penny Stocks to Watch Right Now
- Acasti Pharma Inc. (NASDAQ: ACST)
- Cellect Biotechnology Ltd. (NASDAQ: APOP)
- Check Cap Ltd. (NASDAQ: CHEK)
- Seelos Therapeutics Inc. (NASDAQ: SEEL)
- SCWorx Corp. (NASDAQ: WORX)
- Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
Up by a respectable 1.5% at midday is ACST stock. If you read pennystocks.com often, you’ve likely heard of Acasti Pharma. But if not, here’s some quick information on the leading biotech company. Acasti is a biopharmaceutical company developing and commercializing drugs that utilize OM3 fatty acids. These are derived from krill oil and have a long history of safety and efficacy profiles for lowering triglycerides in patients.
This concerns those suffering from hypertriglyceridemia or HTG. Acasti’s flagship drug is known as CaPre and is a phospholipid therapeutic for use in those with severe forms of HTG. In its latest financial report for the fiscal 2021 year-end, the company gave several key updates to its business. This includes updates regarding the acquisition of Grace Therapeutics which occurred in May.
“We are very excited about the planned acquisition of Grace, as we believe their product portfolio has the potential for delivering better patient solutions with enhanced efficacy, faster onset of action, reduced side effects, and more convenient delivery with the potential to increase patient compliance.”Jan D’ Alvise, CEO of Acasti
So, it’s clear that Acasti has a lot going on right now. And, YTD, shares of ACST stock are up by around 38%. With all of this in mind, will ACST be on your penny stocks watchlist?Cellect Biotechnology Ltd. (NASDAQ: APOP)
Up by almost 10% today are shares of APOP stock. In the past six months, APOP has shot up by a solid 52%, and YTD that number jumps to over 73% which is quite substantial. While no company-specific news came out today, we can look at some older announcements to deduce why APOP pushed up today.
Back in mid-June, Cellect announced a proposed strategic merger with Quoin Pharmaceuticals. It stated that with Quoin’s clinical programs and the investments it has of around $25.5 million, Cellect could potentially benefit greatly. Currently, Cellect is working on its breakthrough method for stem cell therapy. It can use stem cells from any tissue in the body, to produce highly targeted therapies. The indications for this include regenerative medicine and other cell-based treatments used across different ailments.
It seems as though the aforementioned merger is one of the most prevalent facts that investors are considering right now. While the timeline is slightly unclear, we likely will hear more data soon regarding this. Whether this makes APOP stock worth adding to your list of penny stocks to watch is up to you.Check Cap Ltd. (NASDAQ: CHEK)
Over the past twelve months, shares of CHEK stock have climbed by a very respectable 99% or so. And although trading in the shorter term has not been as positive, CHEK stock remains an interesting biotech penny stock to watch right now. Only a week or two ago, the company announced a sizable $35 million registered direct offering.
The company states that it will use the proceeds from this to continue advancing the clinical development of its C-Scan product. This includes a pivotal study that is currently underway. For some context, the C-Scan is known as the first and only preparation-free screening test that can detect polyps before they become colorectal cancer. This is a big deal as this type of cancer affects thousands in the U.S. alone. And like we mentioned earlier, proper capitalization is a necessity to getting any product off the ground, with this being no exception.
C-Scan utilities a low-dose X-ray capsule, that contains a control and recording system which maps the inside of the colon. While the goal is not to replace the traditional colonoscopy, it could be a great option in the doctor’s toolbox. So, with this sizable funding considered and Check Cap’s unique market position, is it worth watching right now?Seelos Therapeutics Inc. (NASDAQ: SEEL)
Seelos Therapeutics is a clinical-stage biopharmaceutical company developing central nervous system-based therapies. These can be used in those with rare disorders that affect the CNS. Last week, the company made headlines when it announced positive in-vivo data showing the down-regulation of SNCA mRNA and protein expression in a study concerning its drug SLS-004. One dose of the compound produced a 27% reduction in SNCA mRNA and a 40% drop in the SNCA protein expression.
“We are highly encouraged by these preliminary findings demonstrating downregulation of SNCA mRNA and SNCA protein expression in this in vivo model. Overexpression of alpha-synuclein has been implicated as a highly significant risk factor for Parkinson’s and the accumulation of this protein is a pathological hallmark of synucleinopathies for additional diseases such as dementia with Lewy bodies and multiple system atrophy.”The CEO of Seelos, Raj Mehra
This is great news for the company and investors alike. While it will without a doubt take time for this compound to be commercialized, initial studies are always a great sign for investors to consider. So, with an almost 82% gain in the past six months, SEEL stock could be worth keeping an eye on.SCWorx Corp. (NASDAQ: WORX)
Up by an incredible 59% during trading today and almost 12% after hours are shares of WORX stock. While it isn’t necessarily a pure-play biotech penny stock in the sense of the term, it does work in the healthcare industry. SCWorx provides software solutions geared toward health care provider management. This includes hospitals, doctors offices, outpatient firms and more.
While it’s difficult to fully explain todays massive gain, there is one reason that seems to outpace all others. That reason is the impact of social media. It appears as though WORX stock has gained a great deal of traction on social media platforms such as Reddit, Twitter, Stocktwits and more. And, while it may not seem like these websites have a large influence, it is quite clear that they do.
We see this quite often with penny stocks, and it has become a major trend in the past six months or so. And, last month, SCWorx announced that it had regained compliance with the NASDAQ listing requirements, furthering investor interest in the company. Additionally, leadership changed hands at the time, with Tim Hannibal, the previous President and COO, becoming the new CEO.
Hannibal stated that “we are pleased to jade regained compliance with the NASDAQ’s listing requirements. With this behind us, we can focus on executing our 2021 growth strategy.”
With Covid in focus right now, many investors are looking to take advantage in whatever way they can. While biotech stocks may seem like the obvious choice, ancillary players like SCWorx could be an interesting alternative. Considering its big move today, it does appear that WORX stock is quite volatile. But, if this is something you’re interested in, WORX could be worth watching.Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
Aerpio Pharmaceuticals is another popular biotech penny stock, working on novel compounds that activate Tie2 indications. A few weeks ago, it announced an update regarding a major merger agreement.
At the American Society of Clinical Oncology 2021 Annual Meeting, the company stated that it entered into an Agreement and Plan of Merger with Aadi Biosciences. Aadi is a biopharmaceutical company working on transformational therapies for cancer patients. It utilizes the mTOR pathway driver alterations to produce targeted drugs. This includes its FYARRO compound, which could have indications for reducing tumor growth. While Aerpio was an interesting company on its own, many believe that the merger with Aadi could make it an even better deal.
[Read More] 8 Top Tech Penny Stocks to Watch in July 2021
Last week, the analyst Robert Burns at H.C. Wainwright, upgraded ARPO stocks rating to a Buy and set a price target post-merger of around $22. This represents a massive upside from where ARPO stock sits at on June 12th at around $2.50 per share.
And in the past five days, shares of ARPO stock have climbed by around 50%. In the past six months, that number more than doubles to over 116% in growth. With all of this in mind, its up to you to decide if ARPO stock is worth adding to your penny stocks watchlist right now.Which Biotech Penny Stocks Are You Watching?
Finding the best penny stocks to buy in the biotech industry all comes down to knowing where to look. With a combination of research into a company’s pipeline and the funding it has, investors can put together a great picture of what a company may do in terms of price action. Considering all of this information, which biotech penny stocks are you watching.