Hot Biotech Penny Stocks To Watch This Month
Putting a list of penny stocks together? You might want to check for important dates. The biotech sector is well-known for giving the market plenty of lead time before releasing key information. Furthermore, the beauty of organizations like the Food & Drug Administration is that it will issue dates months in advance as to when it will give a final answer for things like New Drug Applications, phase trial design, and the like.
Since there are so many steps to each phase of a trial, for instance, there’s sure to be plenty of news and potential catalysts to be aware of. Take, for instance, Pfizer Inc. (NYSE: PFE). Back in December, the company announced that the Prescription Drug User Fee Act (PDUFA) goal date for a decision on its supplemental New Drug Application (sNDA) for LORBRENA by the FDA would be in April 2021.
That was nearly 4 months in advance of this event even happening. Those who have PFE on their list of stocks to watch right now know that April could be an important month for the company and, specifically, its LORBRENA treatment.
While your average public company will release dates related to things like earnings, biotech stocks have much more to factor in. Not only are we talking about earnings but also formal and interim data along with all other regulatory filing dates dealing with bodies like the FDA or European Medicines Agency.
Biotech Penny Stocks & Volatility
This also makes biotech penny stocks some of the most volatile. One positive update on phase data or one surprise miss of trial endpoints can trigger huge spikes or drops in certain stocks. While favorable data can send shares higher, even the slightest misstep can send biotech penny stocks into a free fall.
This is something that we covered when discussing Odonate Therapeutics (NASDAQ: ODT) last week. On March 19th, ODT shares were actively trading above $19. But at the start of the following week, on March 22nd, the stock had fallen to lows of $3.83. The massive drop came after the company had expressed that its treatment package was “unlikely to support FDA approval.”
Now, since making that update and sliding further, ODT as a penny stock has actually performed well over the last few weeks. But from a bigger picture, it has become one of the worst-performing biotech stocks in 2021.
Hot Penny Stocks To Watch For April 2021
Those who understand this can be a very real risk also tend to trade penny stocks in the niche a bit differently. Thanks to volatility, day traders continue focusing on the industry. Knowing that there are upcoming events can help condense your list of penny stocks even further. In this case, here are 3 companies that have previously announced important events coming this month.