Investing in biotech penny stocks can often prove to be a tricky proposition for most investors, and it is understandable since many of these stocks are well known for being volatile by nature. That being said, it is also important for investors to keep in mind that penny stocks present a rare opportunity for investors to make a substantial return from a relatively small outlay.
While it is true that the markets are now in turmoil, there are some penny stocks that could still be of interest to investors. Here is a quick look at three promising penny stocks.
Top Biotech Penny stocks to Consider in May #1 Agenus
One of the penny stocks worth considering at this point is that of the immuno-oncology company Agenus (AGEN). AGEN stock has been beaten down this year due to the disappointment regarding the clinical update of its balstilimab (AGEN2034) and zalifrelimab (AGEN1884) combination meant for treating cervical cancer.
The company’s immunotherapy is experimental in nature, and hence it has to produce attention-grabbing results. However, that does not mean that it cannot be used to develop other medicines. For those looking at the bigger picture, it is likely that the combination could eventually become an important treatment for cervical cancer. Investors could do well to keep an eye on AGEN stock.
Top Biotech Penny stocks to Consider in May #2 Dynavax
The other penny stock that could be tracked by investors is that of the vaccine company Dynavax (DVAX), which only has a hepatitis B vaccine product named Heplisav B on the market at this point. The development of this product has been challenign for Dynavax since it had to shut down other divisions, and the stock price was also hammered over the past few years.
However, Wall Street analysts have now been making positive noises about DVAX stock. Analysts expect sales of Heplisav B to rise by as much as 85% next year, and in the longer term, it could bring in as much as $700 million worth of sales. That will be more than twice Dynavax’s current market cap.
Top Biotech Penny stocks to Consider in May #3 Verastem Oncology
Last but not least, it is the Verastem Oncology (VSTM) that ought to be in the watch lists of investors at this point. The only commercial product on the market for Verastem is the lymphoma and leukaemia medicine Copiktra. However, it has generated highly disappointing sales figures. Consequently, the company has had to cut costs and moved its focus to early-stage assets.
This change in strategy has been welcomed by the market, and VSTM stock has soared by 198% so far in 2020. The company’s KRAS mutated tumor medicine is also highly promising owing to the sheer size of the market. The company is also working on expanding the applications of Copiktra.
