Are These Biotech Stocks On Your Watchlist?
Are you constantly searching for small-cap stocks? Like it or not, small-cap stocks have been a popular asset class due to lower entry barriers and investors are drawn to the space due to their potentially massive breakouts. This year, the small-cap biotech stocks are making big moves like never before. Due to this reason, it is gathering a lot of investors and traders. And they are looking to find the next big thing to bet on. Either way, the increased participation in the top small-cap stocks space is increasingly evident.
It is no biggie that small-cap stocks can produce a few hundred percent returns. Some have even returned more than a thousand percent in a few days. If you look at some of the most active biotech stocks in the space, chances of you seeing overnight breakout is common. That said, if you do the research and studies, with excellent timing, you might gain a thousand percentage gains in a few days’ time. But in most cases, something so speculative might be another pump and dump scheme, where gains quickly become losses.
Biotech stock investors should know by now that clinical data announcement is a far more important metric than earnings report. While looking for biotech small-cap stocks, you’ll want to keep track of filings and dates of clinical trials. These will essentially give you the upper hand in trading before the press release. So if you find some biotech stocks you want to add to your watchlist, doing some research could help. That said, let us see if these are the best biotech stocks to buy in August 2020 after their recent developments.
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Top Biotech Stocks To Buy [Or Sell]: Trevena
Trevena Inc (TRVN Stock Report) has a bit of history with the FDA. This is with respect to its NDA for its pain drug OLINVYK (oliceridine). The drug is an opioid agonist for the management of moderate to severe acute pain in adults, where the pain is severe enough to require an intravenous opioid. The drug was once rejected by the agency on the premise of inadequacy of clinical data. It was finally approved by the FDA last week. TRVN stocks have soared more than 400% over the past three months.
“The approval of OLINVYK marks an exciting step forward in Trevena’s mission of translating cutting-edge scientific discovery into therapeutic benefit for patients in need. I would like to thank all of the patients, investigators, and our employees who helped us achieve this important milestone,” said Carrie L. Bourdow, President and Chief Executive Officer. “We will work quickly to bring this novel IV analgesic to patients and healthcare providers in need of alternative treatment options.”
Now that the company has received FDA approval after hours on Friday, the stock was up more than 80% on Monday’s pre-market trading. Can we expect the rally to continue over the course of this week?
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Top Biotech Stocks To Buy [Or Sell]: SinoPharm
There are only a handful of late-stage vaccine candidates in the market, six to be exact. And among the six, two of the vaccine candidates belong to Chinese drugmaker Sinopharm (SHTDY Stock Report). The company reported preliminary results in June from earlier clinical studies. Sinopharm stated that all participants in the phase 1/2 studies for its two late-stage vaccine candidates had neutralizing antibodies. SHTDY stock will remain one of the top biotech stocks to watch as the company enters its phase 3 study in Saudi Arabia.
Sure, being the first to reach the finish line helps. But that’s not all. Investors also have to take into account the manufacturing capacity of each vaccine maker. In Sinopharm’s case, since the company is owned by the Chinese government, there’s really not much limitation as long as the vaccine is proven safe and effective in late stage studies. As of now, the company has the capability to produce 200 million doses of COVID-19 vaccines. That’s thanks to its manufacturing facilities in Beijing and Wuhan.
Unlike the top biotech stock companies under the Operation Warp Speed Program, SHTDY stock is relatively less volatile. It has been trading in the $10-13 range for the past few months. Should Sinopharm indeed be the first to successfully develop a vaccine after the trials in Saudi Arabia, can we expect a major breakout in its stock price?
Top Biotech Stocks To Buy [Or Sell]: OpGen Inc.
Shares of OpGen Inc. (OPGN Stock Report) jumped more than 100% before retracing on Friday. This is after the tweet by the biotech company. The company is now offering COVID IgG/IgM rapid test kits with a 10-minute turnaround time for results. The test has received the Emergency Use Authorization by the FDA according to the company. Just to avoid any confusion, that’s not the same as FDA approval. Meaning, given the urgency, this could be used for now. But there is no guarantee on the accuracy of the tests.
The company expects to report their Q2 results and provide a business update on August 12th. OpGen has been offering test kits earlier this year through Curetis’ strategic partner BGI, which is based in Shenzhen, China. These kits have got the approval from the Chinese authorities and have obtained CE marking. To expand their testing capacity to help curb the spread of the virus, OpGen has commenced marketing and promotion COVID-19 related products. They are sold and distributed by Menarini Silicon Biosystems (MSB) on a non-exclusive basis.
OpGen is now authorized to market and promote such products in the United States, Canada, and Mexico under a strategic co-promotion agreement entered into by OpGen and MSB. With all these in mind, can OPGN stock continue its rally this week?