Jul 30, 2020 (Penny Stocks via COMTEX) -- Should Biotech Penny Stocks Be Part Of Your Strategy Right Now?
Volatility is a big part of penny stocks. Then, when you pair it with a volatile sector, it could be the "perfect storm" for that high-risk, high-reward. Small- and micro-cap biotech penny stocks are some of the most volatile and for good reason. It has everything to do with the speculative nature of the companies themselves.
These are typically early-stage companies in pre-clinical stages working to develop novel treatments. Other companies may deal with medical devices too. We saw plenty of medical device penny stocks surge earlier this year with COVID-19 pushing demand for personal protective equipment. There were also companies benefiting from growing demand for coronavirus testing.
Whether it's healthcare settings or virtual settings, there are plenty of angles to play biotech and health care. It even folds in technology in the form of telehealth applications. With coronavirus cases climbing in the U.S., this is likely going to be a clear focus for quite some time.
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In addition, you can't help but to think that many of these companies have other treatments in their pipelines. Investors searching for coronavirus penny stocks at first could also gain exposure to traditional biotech as well. Things like cancer treatments and autoimmune therapies are all things to take into account. With that in mind, let's take a look at a few biotech penny stocks to watch for the upcoming month of August.
Biotech Penny Stocks To Watch: Revive Therapeutics Ltd.
Shares of Revive Therapeutics Ltd. (RVVTF Stock Report) (RVV) has been on a slow rise over the last few months. if you look at the chart, you'll obviously see big spikes, including the recent jump to highs of $0.50. But then if you look at some technical levels, you'll notice that RVVTF stock has followed along with its 50-day moving average since March. That has seen the biotech penny stock climb from around $0.04 at the time to recent trading levels of $0.19. A consistent move of 375% heading into August and after its last big update could be something to note.
At the end of June, Revive announced the submission of an Investigational New Drug application to the U.S. FDA. This was for a Phase 3 confirmatory study for Bucillamine. The trial is to see Bucillamine as a potential treatment in COVID-19. The company has also previously met with Health Canada in a Pre-Clinical Trial Application meeting. Revive also said that it intends to follow up with the submission of the complete CTA package for Health Canada around its Phase 3 study as part of the same multinational clinical strategy.
As far as the first Phase 3 study is concerned, once the U.S. FDA allows the IND to go into effect, Revive said it will initiate a randomized, double-blind, placebo-controlled study of Bucillamine in patients with mild-moderate COVID-19 in Q3-2020. With much more attention on coronavirus vaccine stocks, it's not surprising to see this momentum in July. Is August setting up to experience something similar?
