There’s a reason investors like penny stocks. Shares over $5 USD just don’t bring the same sudden explosive price jumps. For example, it’s a rare thing for a “regular” share to suddenly jump up 300% overnight. It’s not so rare for a penny stock to do that.
Take Midatech Pharma PLC (NASDAQ:MTP) for example; on February 25th, these shares were trading for $0.12 USD. A day later, they sold for $0.79 USD. That’s over 550% in gains in a 24-hour period. The MTP penny stock made some investors significant returns in that sudden jump.
Yes, penny stock prices are smaller (sometimes minute), but that doesn’t mean the accumulative return isn’t significant.
Now, a month on, the MTP penny stock has corrected and is selling for $0.37 USD.
About Midatech Pharma
Midatech Pharma is a research and development medical company searching for medicines for rare cancers. It runs in-house programs as well as partnered programs.
According to its website, the company develops “improved chemo~therapeutics or new immuno~therapeutics, using our proprietary platform drug delivery technologies.”
This penny stock received another boost only three days ago. The Spanish government conditionally approved a €6.6 million Reindustrialisation loan that Midatech will use to commercialize its flagship drug, MTD201 Q-Octreotide.
With the Reindustrialisation loan, Midatech is on its way towards an estimated €16 million needed to build a manufacturing plant in Bilbao. It is here where the company will develop and create this drug.
At present, the group has around €8.5 million raised.
Midatech has developed MTD201 using its polymer microsphere technology called Q-Sphere. This provides a sustained release method of delivery. MTD201 is a treatment for a hormonal disorder called acromegaly and neuroendocrine tumors such as carcinoid cancer.
The company plans on having the “commercial manufacturing scale-up scheduled over the next 18-24 months” in Bilbao.
With plans on the horizon to create and develop its flagship drug, the MTP penny stock could see bigger gains across 2019.
At the current price, it may be hard to look away from this one.
Featured Image: DepositPhotos © sementer