As bad as the past year has been, biotechs have been booming. Unless you’ve been living under a rock since December 2019, the reason is obvious – COVID-19. The sooner we get rid of this virus, the sooner we can get back to living our lives.
Despite the arrival of vaccines, this bug will likely be with us for years. So, while we’re trapped at home, we’ve been backing biotech firms crafting Coronavirus solutions. However, those with limited trading bankroll may find it hard to invest in players like Pfizer.
However, numerous biotech firms trade for less than $10 per share on OTC markets. In this post, we’ll talk about the ones that stand out to us.
CytoDyn (OTCMKTS: CYDY)
For almost 20 years, CytoDyn has fought against HIV and cancer. Their weapon of choice – an antibody known as Leronlimab. By targeting CCR5 cell receptors, this compound appears to stop HIV from invading cells and metastatic cancer from spreading.
Over the past year, though, CytoDyn scientists have turned their guns on COVID-19. While studying Leronlimab’s effects on the virus, researchers found it helped to down-regulate inflammatory effects responsible for cytokine storms.
CytoDyn is currently organizing additional studies to clarify their preliminary outcomes. However, Leronlimab’s initial positive results may pave the way for the granting of EUAs (Emergency Use Approval) in countries worldwide. Already, rumors that The Philippines may grant a EUA to Leronlimab are making the rounds.
CYDY’s recent work on COVID-19 therapeutics has driven much of the recent action surrounding this stock. Through 2020, its price has gone from 1.00 to as high as 10.01. After retracement from speculative highs, its price had settled in the 2.00-3.00 range. However, with the recent positive news from Leronlimab’s trials, CYDY has rallied to above 6.00.
Our thoughts? If subsequent studies cam confirm initial findings, more nations around the world may approve Leronlimab as a COVID treatment. As such, CYDY’s current bull run may just be getting started.
For further information about OTCMKTS: CYDY, check out the linked resource.
Revive Therapeutics (OTCMKTS: RVVTF)
6.00 stocks are accessible to many traders, but what if you want to make a really big bet? True penny stocks, meaning those trading under 1.00, are popular among speculative buyers. However, very few of these equities ever work out.
But RVVTF may be one of the exceptions. At press time, Revive Therapeutics experimental COVID drug isn’t just in phase 3 FDA trials – the agency has fast-tracked its development. Revive is investigating whether Bucillamine, an arthritis drug used in East Asia, is useful as a treatment for COVID-19 and the flu.
On top of this, Revive is pioneering drugs that make use of Psilocybin. Also known as “magic mushrooms”, this hallucinogen has potential applications in treating numerous cancers.
Despite these developments, though, the price of RVVTF has remained below 1.00. Right now, this equity is trading around 0.40-0.43. In December, there was a big run-up as Revive surged on the approval of their phase 3 trial by the FDA. Since January, profit-taking has pared gains, but no negative news has broken recently.
Positive or negative results from studies can make/break biotech stocks – it’s just the nature of the beast. So, the only thing that’s changed since January is that Revive is now on sale. RVVTF is not a sure thing, but we like this stock at a price point of 0.40-0.50. Buy if you have room in your speculative portfolio.
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Relief Therapeutics Holding SA (OTCMKTS: RLFTF)
It’s been quite the year for Relief Therapeutics. They’ve only been in business since 2013, but Relief has only been a public company since April 2020. At that time, they were investigating whether Aviptadil, a proprietary peptide noted for protecting lung tissue, could work as a COVID-19 treatment.
Aside from a few false starts, RLFTF remained mired in the 0.03-0.04 range until the end of July. At the start of August, though, reports broke concerning a double-lung transplant recipient. During their hospital stay, they caught the virus. However, after the administration of Aviptadil, a miraculous recovery ensued.
This info caused the price of RLFTF to spike to 0.62. For months after, RLFTF held in the 0.50-0.60 range before a bear run that brought the price down to 0.31 by year-end.
However, Revive has been on fire in 2021. The US Department of Health & Human Services has launched Operation Warp Speed to fast-track COVID-19 vaccines, treatments, and diagnostics. In January, a therapeutic trial sponsored by this program announced they were including Aviptadil. Because of this, RLFTF has rallied back into the 0.50-0.60 per share range.
Where will RLFTF go from here? Right now, Aviptadil is undergoing a phase 2b/3 clinical trial. Usually, these studies take years, but under COVID, researchers have cut timelines down to months. Given RLFTF’s current affordability, buying/holding this share may be a good short to mid-term play.
Effective COVID-19 Treatments Could Make Microcaps Rich
The biotech industry is notoriously volatile. Success can cause prices to skyrocket, while investors heavily punish failure. When buying the companies listed above, only use your speculative portion of your portfolio to purchase these equities.
That way, you’ll profit when you win, and limit losses if you lose.
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