4 Biotech Penny Stocks Up Big in April: Will the Gains Continue?

biotech penny stocks

Biotech penny stocks are biotech stocks that sell for less than $5 per share. Most early-stage clinical biotech companies usually fall into the penny stock range. They are prone to market volatility and have large amounts of outstanding shares with risky fundamentals. Also, penny stocks attract limited institutional ownership, which can also enhance their volatility. However, in market conditions such as the recent equity market turmoil, penny stocks hold some potential—if you’re up for the challenge.

Here are four biotech penny stocks that have gained significantly in April:

4 Biotech Penny Stocks Up Big in April: Leap Therapeutics Inc. (NASDAQ:LPTX)

So far in April, Leap Therapeutics is up around 52% despite there being no recent news from the company. The stock has rallied more than 135% year to date. At the beginning of this year, Leap provided a positive update on the completion of its Phase 1/2 clinical study, KEYNOTE-731 (P102). The study was evaluating Leap’s DKN-01 in combination with Merck & Company Inc.’s (NYSE:MRK) Pembrolizumab, or paclitaxel, in refractory/relapsed esophagogastric cancer patients.

The results showed a positive effect, with the company observing significant treatment in the anti-PD-1/PD-L1 naïve gastroesophageal/gastric junction adenocarcinoma patient subgroup that had high DKK1-expressing tumors. The patients received DKN-01 and pembrolizumab. The company is planning to test the combination of DKN-01 with BeiGene Ltd’s (NASDAQ:BGNE) tislelizumba PD-1 inhibitor in a second-line high DKK1-expressing adenocarcinoma through the recently announced license agreement.

4 Biotech Penny Stocks Up Big in April: BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX)

biotech penny stocks

Since the beginning of this month, BioCryst Pharmaceuticals stock has climbed 80%. 

>> 4 5G Penny Stocks to Add to Your Watchlist

The company has one drug on the market already, following the FDA’s approval of Rapivab in 2014 for the treatment of influenza in adults and also in pediatricpatients above two years of age since 2017. The drug has been a commercial success, and in Q4 2019, the company reported sales of $13.9 million from Rapivab. Most interestingly, at the beginning of this year, BioCryst filed for approval to use the drug in preventing hereditary angioedema attacks in Japan and the US.

4 Biotech Penny Stocks Up Big in April: Protalix BioTherapeutics Inc. (NYSEAMERICAN:PLX)

Protalix Therapeutics is a biopharma company that focuses on developing and commercializing recombinant therapeutic proteins expressed through ProCellEx, its novel plant-based expression system. The company’s stock has rallied 75% since the beginning of this month.

Last week, Protalix filed a prospectus for the sale of 35,208,846 shares of its common stock by “Selling Stockholders.” This includes around 17.604 million shares that the stockholders hold, as well as another 17.604 million issueable shares to the selling stockholders once they exercise warrants to acquire Protalix’s common shares at an exercise price of around $2.36 per share. There is no timeline on when the sale will begin or whether it has commenced. The company will not receive any proceeds from the sale because it is selling stockholders who are already selling rather than its common shares.

4 Biotech Penny Stocks Up Big in April: Verastem Inc. (NASDAQ:VSTM)

biotech penny stocks

Verastem’s stock has gained 57% in April. The company has one drug currently on the market that is a FDA-approved leukemia and lymphoma medicine, Copiktra, which has been a disappointment. Even with high sales estimates of around $800 million annually, the company only reported net revenue of $12.3 million last year. This forced the cancer biotech company to consider restructuring by cutting costs and refocusing on its early-stage assets like VS-6766 and defactinib, which is for KRAS-mutated tumors.

It now appears that the change in strategy has boosted investor confidence, and the stock has rallied 198% year to date. The main reason for the surge is because KRAS-mutated tumors are an area with massive commercial potential. Although there is competition in the market, Verastem will likely nonetheless benefit significantly from this therapy.

What to Expect Now?

Although penny stocks are volatile, these four biotech penny stocks express massive upside potential. For investors willing to take the risk, they may be able to reap some good returns from penny stocks like this. As always, though, it’s important to do your own research before making any moves.

>> Read More Biotech News

>> Read More Penny Stock News

Featured image: Pixabay

Please See Disclaimer

If You Liked This Article Click To Share

Risks and Disclosure:

Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained on this website is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions made or suggested and the actual results.

All statements and opinions expressed are the opinions of the author and not of Microsmallcap.com or its officers. The author is wholly responsible for the validity of all statements. Microsmallcap.com was not involved in any aspect of the article preparation. The author was not paid by Market Jar Media Inc for this article. The author did not pay Microsmallcap.com to publish or syndicate this article.

This article does not constitute as investment advice. Each reader is encouraged to consult with his or her individual financial advisor; any and all actions taken by a reader as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Microsmallcap.com's terms of use and full legal disclaimer. This article is in no way a solicitation for investment. Microsmallcap.com does not render general or specific investment advice. Any information on Microsmallcap.com should not be considered a recommendation to buy or sell any security. Microsmallcap.com does not endorse or recommend the business, products, services or securities of any company mentioned on Microsmallcap.com.

Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment and possibly their entire investment. Any content on this website should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Please see our full disclaimer here for additional details before making any investment decisions.