Top Penny Stocks For Your Biotech Watch List This Week
With 2021 well on its way, the time to find penny stocks to buy is now. But before making any large investment, it’s important to understand what is going on in the stock market today. Given that the pandemic is still rising in severity, investors seem to be intently focused on pharma and biotech penny stocks. Not all companies focus on vaccines for the pandemic, of course. But the early attention that the virus brought to this industry can’t be ignored.
With the millions of new traders opening accounts over the last year, one of the hottest topics was “coronavirus stocks”. In my opinion, this opened the door for these new traders to gain exposure to biotech stocks, in general. It also allowed them to see just how exciting this niche can be; not to mention risky. When it comes to stocks under $5, volatility is evident. However, certain industries, including biotech, tend to have a bit more of this volatility than others thanks to higher levels of speculation.
Although the pandemic has been a travesty for the world, it has also resulted in larger investments into the biotech and pharmaceutical companies. This has resulted in many pushing out new therapeutics as well as increasing the amount of research they are conducting. One thing to keep in mind with stocks in this niche is that it takes quite a long time for drugs to gain regulatory approval. While the steps in between this process often lead to speculative gains, it is important to consider the longer-term as well. With all of this in mind, the biotech industry continues expanding in popularity. For this reason, here are four biotech penny stocks to watch in the new year.
Biotech Penny Stocks to Watch
Aileron Therapeutics Inc.
As far as clinical-stage biopharmaceutical companies go, Aileron Therapeutics has captured a lot of attention. The company is currently working on several drugs to aid in the fight against cancer. This includes ALRN-6924, which is a chemo-protective agent that is currently in clinical testing. Chemotherapy is currently the main treatment for many types of cancer, and that isn’t gong anywhere soon.
But, Aileron is working on producing chemotherapy results with less side effects and without the risk of damaging healthy cells. The company states that ALRN-6924 could potentially mitigate certain side effects while also increasing quality of life for patients. On Monday, January 11th, shares of ALRN stock shot up by a staggering 42%. The main reason behind this is the announcement of a completed registered direct offering.
This offering, worth around $35.9 million, reflects the sale of around 32.6 million common shares at $1.10 per share. In addition to this, the company also completed an “at the market” offering for 9.89 million shares of common stock, adding around $12.7 million in gross proceeds…