Biotech Penny Stocks To Watch This Month
Are you making a list of penny stocks for the month? You might want to have some biotech names on it. This has become one of the most active sectors traders have put money in this year and for a good reason. Aside from the obvious implications that coronavirus treatment and presentation have had on biotech companies, many are developing novel treatments. Many of these treatments are designed to address unmet medical needs.
So when you talk about early-stage, biotech penny stocks are one of the truest forms. Is there a high risk? Of course, but that doesn’t come without the potential for high reward. One big finding in a phase trial can turn up the heat in a big way. Just look at companies like Novavax (NASDAQ: NVAX) or Greenwich LifeSciences (NASDAQ: GLSI) over the last year.
Both were traded as penny stocks at one point in 2020. Since then, NVAX stock reached highs of $331.68, and GLSI hit $158.07. Novavax’s move came over the course of several months. While Greenwich spiked up and dropped last year, this year has seen a bit more consistency in its trend.
Regardless of these moves, one thing holds for both. They were “emerging stage biotech companies” that scored big after key data was released. Now they are no longer penny stocks. But this clearly demonstrates how quickly things can change with trial results.
Biotech Penny Stocks To Watch For April 2021
Are all penny stocks with exposure to biotech these big breakout names? No, but more times than not over the last year, we’ve seen cheap stocks explode after companies report big news. Many have also stayed well above the $5 threshold of the penny stock definition. Whether it was a cancer treatment stock or one working on gene therapy, the biotechnology sector remains a core focus in the stock market today. Let’s take a look at four trending stocks today that could be worth watching in April.
Odonate Therapeutics Inc. (NASDAQ: ODT)
This has quickly become one of the more active penny stocks to watch for April. Odonate was something that we discussed earlier this week in light of recent market momentum.
Just like updates can trigger huge moves higher, they can also become a source of a massive sell-off. This was the case for Odonate a few weeks ago. The company went as far as saying it would wind down operations after discontinuing its tesetaxel platform for breast cancer treatment. Apparently, the clinical data for tesetaxel was “unlikely to secure approval” from the FDA, according to management.
The next focus for the company is on restructuring. In a company filing late last month, Odonate outlined its plan. The company said it estimates the restructuring will be complete by the end of June. Also, costs incurred in connection with the restructuring are roughly $14 million.
As the market watches and waits,…