Trading Biotech Penny Stocks? Check These 3 Out

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3 Biotech Penny Stocks to Watch in June 2021

Biotech penny stocks have remained in focus throughout the pandemic. This makes sense given the major emphasis on pandemic-related companies. However, a year and a half later, that emphasis now is on biotech penny stocks that have little to no relation to the pandemic. 

One of the great things about penny stocks working in biotech is how volatile they tend to be. Penny stocks investors are usually searching for large intraday fluctuations. This is because those fluctuations can lead to the potential to see large gains (and large losses). 

It’s worth noting that some investors are looking to create a watchlist of more stable penny stocks, however, this is not the norm. Most investors utilize the swing trading method when it comes to small caps. With biotech, news is released often, and companies are constantly evolving. This means that speculation is at an all-time high. And, if we do factor in the pandemic, we see that this is even higher. 

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So, the best course of action is to know exactly what you’re investing in and what your strategy is. This is the best way to make sure that the companies on your list of penny stocks to buy, align with your portfolio goals. With all of this in mind, let’s take a look at three biotech penny stocks to watch in June 2021. 

3 Biotech Penny Stocks to Watch in June

  1. Teligent Inc. (NASDAQ: TLGT
  2. Seelos Therapeutics Inc. (NASDAQ: SEEL
  3. Jaguar Health Inc. (NASDAQ: JAGX)

Teligent Inc. (NASDAQ: TLGT)

Teligent Inc. is a popular biotech company working in a rather broad area of the industry. It develops, manufactures, markets, and sells generic topical, branded, and generic injectable pharmaceutical products. It is involved in the manufacturing and development of topical, injectable, and complex dosage forms as well. The generics market is quite a good one for Teligent, as it allows it to produce and sell more pharmaceuticals than many similar companies. 

On May 25th the company reported its earnings and provided a business update. It announced that it is reiterating prior guidance of informing the FDA on inspection readiness during the third quarter of this year. It also stated that continued remediation progress is being made. This is an important step in debt reduction, and lowering debt is crucial to a companies success.

“As we prepare for the second half of 2021, we are pleased with the progress being made with respect to remediation, our strengthened capital position, and the recent additions to our senior management team and board of directors.

As noted on our fourth quarter call, we have reduced our debt by $118 million since June 30, 2020, and we continue to assess our cost structure so that we can maximize the value of our existing and future capital.” 

President and CEO of Teligent Inc., Tim Sawyer

The company’s stock price has gone up more than 6% since this announcement was made. Could this be the turning point for Teligent after a rather volatile year? Well, the hope is yes, but there is still a lot of uncertainty right now. But, as the pandemic lessens in severity, Seelos may have an easier time selling its pharmaceuticals. Considering this, will you add TLGT to your list of penny stocks to watch?

Seelos Therapeutics Inc. (NASDAQ: SEEL)

Another biotech penny stock to watch with high popularity right now is Seelos Therapeutics Inc. Seelos develops and commercializes novel technologies and therapeutics for treating the central nervous system, respiratory system, and more. One of its lead programs is SLS-002 which is intranasal racemic ketamine to treat acute suicidal ideation and behavior in patients with major depressive disorders.

It also has SLS-005 which is in studies to treat Sanfilippo syndrome. In addition, SLS-005 could treat a variety of other ailments and is in several trials that are going on at the moment. On June 1st the company announced its inclusion in the first U.S.-listed Exchange Traded Fund (ETF) focused on psychedelics. This new ETF is trading on the New York Stock Exchange under the symbol PSY. Its full name is the Defiance Next Gen Altered Experience ETF.

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This inclusion is based on SLS-002 which recently released positive top-line data from Part 1 of its registrational proof-of-concept study for those with major depressive disorder. All of this news comes after May 20th, when it announced the pricing of a $60 million public offering of common stock.

Amid all of this recent news, SEEL stock increased nearly 9% on June 1st. Its stock price has gone up overall by about 6% in the last 5 days. With all of this in mind, SEEL could be an interesting addition to your watchlist. 

Jaguar Health Inc. (NASDAQ: JAGX)

Jaguar Health Inc. is another biotech company primarily focused on pharmaceuticals using natural compounds. The company develops prescription medicines for people and animals with GI distress and chronic debilitating diarrhea. Its subsidiary Napo Pharmaceuticals Inc. develops and commercializes proprietary plant-based human gastrointestinal pharmaceuticals.

On June 1st, Napo provided updates on its plans to pursue conditional marketing authorization in the European Union. Additionally, Jaguar and Dragon SPAC S.p.A. announced the first private financing of about $10.8 million to be used in Dragon’s business combination with Napo. It is involved in COVID-19 related studies as well, addressing diarrhea in long-hauler COVID patients. 

“Napo EU has refined its business plan, and the terms of its contemplated license from Napo Pharma, to focus initially on conditional approval for SBS. Although our initial focus was on addressing diarrhea in COVID long-hauler patients, there is growing evidence that long-hauler symptoms may be ameliorated following vaccination against COVID-19.”

The President and CEO of Jaguar, Lisa Conte

While this is not an incredibly common aspect of Covid, any involvement in the pandemic means heightened attention for a company. Despite Covid cases being down, some scientists believe that it could be around for quite some time. Considering this, its work on this treatment could prove beneficial in the long term. 

On June 1st, JAGX increased by more than 12% in the market. Since May 13th, shares of JAGX stock have shot up by over 55%. This is quite a large gain, especially considering the high volatility in the stock market during that time. So, with this major bullish sentiment in mind, will JAGX be on your list of penny stocks to watch?

Will Biotech Penny Stocks Continue to See Momentum?

Biotech penny stocks are some of the most popular choices for investors of all types. There are a few reasons for this such as high volatility, long-term potential, and the frequency of news output. While it’s easy to lose money trading penny stocks if you don’t know what you’re doing, if you do have a trading education, the opposite is equally valid.

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Considering the extraordinary times we are living in right now, biotech penny stocks overall and the ones mentioned above could be worth keeping an eye on. But what do you think? Will biotech stocks continue to see momentum?

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