April is Getting Off to a Great Start For These 5 Biotech Stocks
With only six days behind us in April so far, biotech penny stocks continue to lead the charge. Since they’re so cheap (stocks under $5, by definition), traders are on the hunt for the next breakout name. The obvious reason for this comes from the Covid-19 pandemic, which has put a massive focus on biotech companies of all types. While it may seem easy to choose from the hundreds of biotech stocks under $5, there are a few things to keep in mind before making a watchlist.
The most obvious is what does the company’s pipeline look like? Does it have drugs currently in the commercialization stage? Is it engaged in several clinical trials right now? What is its role in fighting Covid, if any?
These are all important questions to identify where value could be amongst biotech penny stocks. The second thing to keep in mind, and one that applies to all investments, is its financials. Does it have massive debt on the books? Is there enough capital to support ongoing trials? How diluted is the market from fundraising?
Penny Stocks to Buy [or avoid] In April:
These questions can be answered by looking at a biotech company’s filings and press releases. While this is not an all-encompassing list by any means, some of these biotech penny stocks have caught the attention of traders this month.
- Celsion Corp. (NASDAQ: CLSN)
- Titan Medical Inc. (NASDAQ: TMDI)
- Lipocine Inc. (NASDAQ: LPCN)
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- Astrotech Corporation (NASDAQ: ASTC)
Celsion Corp. (NASDAQ: CLSN)
Celsion Corp. is an interesting clinical-stage biotech company with a large pipeline, not compounds. This includes those used in cancer treatment, immunotherapies, and DNA-based therapies. Also, Celsion has been working on developing nucleic acid vaccines focused on SARS-CoV-2. Within its pipeline, Celsion produces GEN-1, which is a DNA-based treatment for ovarian cancer.
It also produces ThermoDox, which is under investigation for its ability to treat several types of cancer. On April 5th, Celsion announced the closing of a $15 million registered direct offering. The offering will consist of over 11.53 million shares sold at $1.30 per share.
Celsion will use the proceeds to further its R&D activities, among other things. In a recent update, Celsion highlighted that its immunotherapy, GEN-1, showed a 41% improvement in R0 Resection Rates among ovarian cancer patients. This demonstrated that 41% of patients saw no gross or microscopic tumor in the primary tumor bed.
The announcement of this data is highly encouraging because it shows commercialization of GEN-1 could be closer than previously imagined. So with its strong balance sheet and a large pipeline of promising compounds, CLSN could be worth watching.
Titan Medical Inc. (NASDAQ: TMDI)
Titan Medical is…