While March continues to be bullish for many penny stocks, investors are always looking toward the future. With over 70 million individuals in the U.S. who have received one dose of a vaccine, investors seem confident in the pandemic’s direction. Because of this, many believe that the future could show a stronger economy than before Covid.
Now, there are a few specific industries that are rebounding heavily as a result of this. These include entertainment, tech, biotech, and others. While trading was mostly sideways on March 16th, we still see a lot of volatility in the stock market. This includes both blue chip and penny stocks.
On Wednesday, Fed Chair Jerome Powell gave a speech. This followed the Fed’s March monetary policy decision in the afternoon. Before this, Treasury yields on the benchmark 10-year Treasury note hit as high as 1.65%. Jack Manley, an analyst at JPMorgan, stated that “certainly, we’re not going to see any immediate changes to policy, but I think markets are kind of anxious about the language that the Fed will be using to account for the fact that things have been a whole lot better than I think initially anticipated since at least their last meeting.”
So with this exciting development, there are a few penny stocks to watch as March comes to an end.Top Penny Stocks to Watch
- Zosano Pharma Corp. (NASDAQ: ZSAN)
- Aeterna Zentaris Inc. (NASDAQ: AEZS)
- Jaguar Health Inc. (NASDAQ: JAGX)
- Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
- Advaxis Inc. (NASDAQ: ADXS)
Zosano Pharma is a clinical-stage biopharmaceutical company advancing several novel therapeutics. In addition to producing compounds, Zonsano utilizes a transdermal microneedle system to deliver drugs rapidly and effectively. Its lead product candidate is its Qtrypta platform. This is a formulation of zolmitriptan and is used in the treatment of acute migraines. Because so many suffer from migraines around the world, Zosano sees a large opportunity in this niche.
A few days ago, the company released its fourth-quarter and full-year 2020 results. In the results, Steven Lo, CEO of Zosano, stated that “over the past year, we made important progress advancing Qtrypta towards the market. We expect to receive the FDA’s feedback on our pharmacokinetic study protocol shortly, and if supportive of our proposal, we are prepared to initiate this study quickly.”
The fourth quarter saw Zosano bring a net loss of $8.1 million or $0.08 per share. While this may not seem encouraging, the company also ended the quarter with more than $35.3 million in cash on hand. With any pharmaceutical company, losses are par for the course until the licensing or commercialization of a substance or technology. Because this is the case with Zosano, its most recent balance sheet makes sense. But, if it can gain approval for Qtrypta, ZSAN could be a top penny stock to watch.Aeterna Zentaris Inc.
AEZS is a penny stock that we’ve covered a few times in the past couple of months. Recently, the company announced that it entered into a worldwide sub-licensable patent for a Covid-19 vaccine candidate. Currently, this potential vaccine is being studied at the Julius Maximilians University Wuerzburg. This is one of the leading research institutions in Germany. The vaccine utilizes a well-known and well-studied platform that’s been used as an approved vaccine for typhoid.
Dr. Klaus Paulini, CEO of Aeterna, states that “over the last months, we learned that the original SARS-CoV-2 strain mutates rapidly, and these mutant strains continue to spread throughout the population. It has been reported that the currently available vaccines for Covid-19 are effective against the known mutant strains. However, we believe there is the potential to develop an improved vaccine which relies on several SARS-CoV-2 antigens in parallel with the goal of improving the immune response against mutated viruses.”
Also, the company states that this vaccine candidate could be a more effective product than existing ones. Also, this substance does not need to be refrigerated at similar temperatures as currently approved vaccines. This means that the logistical issues we’re running into right now could be avoided. Aeterna’s current leading product candidate is macimorelin. This is the only FDA and European Commission-approved oral test for identifying adult growth hormone deficiency. With its promising pipeline in mind, AEZS could be another penny stock to watch.Jaguar Health Inc.
Another frequently discussed penny stock is Jaguar Health Inc. For some context, this is a commercial-stage pharmaceutical company developing non-opioid-based treatments. This includes drugs that treat those with everything from GI disorders to chronic, debilitating diseases.
Its Mytesi product holds approval from the FDA to treat noninfectious diarrhea in those who have HIV/AIDS on antiretroviral therapies. It utilizes a plant-based platform and is the only oral plant-based prescription medicine with approval from the FDA Botanical Guidance. A few days ago, the company announced the incorporation of a new EU subsidiary in Italy. Known as Napo EU, the goal will be to form a merger with the Italian Dragon SPAC.
With this, it will be researching inflammatory diarrhea related to Covid-19. Lisa Conte, CEO of Jaguar, states that “we’re thrilled to have established Napo EU in Italy – a necessary step as the exclusive target in the anticipated merger with the Italian Dragon SPAC. Napo EU will serve as the foundation of our efforts to address the growing burden – particularly in Europe – of inflammatory diarrhea associated with long hauler syndrome in the post-Covid-19 patient population.”
This entrance into the Covid-biotech space has helped to push shares of JAGX up in several recent trading sessions. While this is just the beginning of this program, it is exciting for traders to notice.Citius Pharmaceuticals Inc.
Citius Pharmaceuticals is another pharmaceutical company, but one that is working on critical care products. This includes anti-infectives as well as cancer care products. Last month, Citius announced a sizable $76.5 million registered direct offering priced at-the-market. More recently, the company announced that it would be presenting at a conference on its lead product candidate known as Mino-Lok. This is a substance that is in Phase 3 trials currently. In addition to this, the company has other substances such as CITI-002 and CITI-101.
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CEO Myron Holubiak stated in a recent press release that “our important achievements against the Covid headwinds last year give us great confidence that 2021 will be a banner year for advancing our three product platforms in the clinic, and our corporate decision to commence the development of NoveCite next-gen cellular therapies further expands our goal as a specialty pharmaceutical company dedicated to the development and commercialization of therapeutic products for significant unmet medical needs.”
One thing to consider is that the company recently embarked on a program to find a treatment for ARDS associated with Covid-19. This treatment utilizes induced-mesenchymal stem cell therapy and could be a fervent enemy to certain aspects of Covid-19 infection. With all this in mind, CTXR could be a penny stock to watch.Advaxis Inc.
Another biotech penny stock making big waves right now is Advaxis Inc. Earlier in the week, Advaxis announced results from its first quarter of 2021. In addition to commencing a $9.2 million public offering, the company worked heavily to enroll patients in various studies and move through several trial processes.
This includes a Phase I/II trial currently occurring with its drug ADXS-503 in combination with Keytruda. CEO Kenneth Berlin stated that “we are encouraged by the growing body of evidence that suggests ADXS-503 has the potential to synergistically enhance and or restore sensitivity to checkpoint inhibitors.”
At the end of January, Advaxis reported having more than $33.3 million in cash on hand. It states that this should be enough capital to fund its obligations and business operations until May of next year. Additionally, the company managed to more than halve its R&D expenses from $4.9 million in Q1 2020 to $2.6 million in Q1 2021.
As we see, it looks like Advaxis is in an advantageous position in terms of its free-flowing cash. Because it has several large programs in the works, investors seem excited about the long-term with Advaxis and its pipeline. Since December, shares of ADXS have shot up by over 170%.