Biotech has been one of the fastest-growing sectors over the past half a decade or so, garnering a lot of interest in things like biotech penny stocks. Moreover, the onset of the coronavirus pandemic has seen many of these stocks soar in recent days.
However, at a fundamental level, promising biotech penny stocks generally belong to companies that have the potential of generating explosive growth in the long-term.
Many stocks have tumbled in recent times owing to the panic in the markets about the coronavirus pandemic. The S&P 500 suffered its biggest drop since 1987; however, things seem to be turning around somewhat today. Speculation about a stimulus package from the government seems to have reignited the hopes of investors.
Despite any positive movement today, analysts maintain that the markets could remain volatile over the coming days. In such a situation, it could be worthwhile for investors to take a look at some of the promising biotech penny stocks. Here is a closer look at five biotech penny stocks that could be considered by investors today.
Biotech Penny Stock: TransEnterix (NYSE:TRXC)
The first biotech penny stock to have made significant gains this morning is the TransEnterix stock. The company announced this morning that the United States Food and Drug Administration has awarded its Intelligent Surgical Unit (ISU) the 510 (k) clearance. The product in question helps with vision capabilities for those using the Senhance Surgical System. It is a significant development for the company, and the stock soared on the back of the news.
The TransEnterix stock gained 30% in morning trading and has emerged as one of the major gainers this morning.
Biotech Penny Stock: Can-Fite BioPharma Ltd (NYSE:CANF)
In the middle of the coronavirus pandemic, Can-Fite BioPharma stock has emerged as another viable option for investors. Today, the company announced its research agreement with Lewis Katz School of Medicine of Temple University, Philadelphia.
By way of the agreement, the two entities will conduct a program to try and discover the anti-viral potency of Piclidenoson on the coronavirus. The research effort is going to be directed by Dr. Kamel Khalil, and it is certainly a major breakthrough for Can-Fite. The stock has rallied by as much as 15% this morning.
Biotech Penny Stock: La Jolla Pharmaceutical (NASDAQ:LJPC)
Another potential coronavirus play for investors today could be La Jolla Pharmaceutical. Italy has been suffering from a coronavirus epidemic, and La Jolla has decided to step in.
The company announced that it is going to provide the product Giapreza (angiotensin II) for compassionate use on people who suffer from coronavirus-induced septic shock. This is a major development for La Jolla considering the fact that there have been 44,672 confirmed cases of coronavirus in Italy so far. The news created a lot of positivity around the stock this morning, which went up by 27% in the early session.
Biotech Penny Stock: Chembio Diagnostics Inc (NASDAQ:CEMI)
Another biotech penny stock that has made significant strides this morning is Chembio Diagnostics. The reason behind the rally in the stock today is possibly linked to the fact that the company has teamed up with LumiraDx to create a test for the coronavirus. Together, the two companies will work on developing and commercializing a coronavirus test.
Chembio also announced that in the fourth quarter, it generated revenue of $6.9 million. This reflects a decline of 0.3%. The net losses for the period stood at $3.9 million, which reflects a significant decline of 21.9%.
Biotech Penny Stock: Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
Finally, investors could also have a look at Lexicon Pharmaceuticals, which soared 8% in opening trade on the back of positive data. The company announced positive data from 200 metastatic neuroendocrine tumor patients who had been treated with the product Xermelo.
The treatment had apparently been administered for an average period of 12 months on each patient. Most of the patients who had been treated did not show any progression in their tumors for a period of 6, 12, and 18 months since the start of Xermelo treatment.
The market is currently in a volatile period, but it goes without saying that there is still a lot of value to be had and especially so in the biotech penny stock space.
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