There’s a lot of big news out on Wednesday and that has some penny stocks racing higher. While the bigger focus is likely to be on economic data, we can’t ignore scientific updates. Gilead Sciences ( GILD Stock Report) reported early on Wednesday that its Phase 3 trial of Remdesivir in patients with severe COVID-19 cases showed positive results. While Gilead stock was halted for most of the morning session, the sentiment is clear as many coronavirus penny stocks have started to make a move higher.
In addition, to GILD stock breaking out, more attention will be on the next moves from the Fed. Early data on April 29th showed that the U.S. economy shrank by nearly 5% (4.8%) in the first quarter. This was the biggest drop since the Great Recession. But many analysts fear the worst is yet to come. The root cause points to when full-scale stay at home orders were implemented.
While many states started early during Q1, there are still many more that went into the lock-down mode for the entire month of April and likely into May. With compounded contraction from the first quarter, some analysts speculate that the second quarter could see a decline of more than 30%; a figure more akin to the Great Depression.
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So it will be important to understand the market landscape moving forward. Volatility is likely to be a big part of the daily grind for the time being. Luckily for us, penny stocks and volatility go hand in hand. Here’s a list of penny stocks to watch before the end of the month.
Top Penny Stocks To Watch: Algernon Pharmaceuticals
While the hunt is on with investors constantly scouring the web for any company with “coronavirus” or “COVID-19” as a keyword on major financial sites, Algernon Pharmaceuticals Inc. ( AGNPF Free Report) ( AGN) has just begun to gain exposure. Algernon is a clinical-stage pharmaceutical development company. Its lead compound is a repurposed drug called NP-120 (Ifenprodil). The orally delivered small molecule was originally developed by Sanofi to treat peripheral circulatory disorders.
The Company believes that Ifenprodil may reduce the severity and duration of a COVID-19 infection. And in mid-April, Algernon formally received positive feedback from the U.S. FDA for Ifenprodil. In addition to advancing Ifenprodil towards a human trial approval in Canada, the Company has also received approval from the Ministry of Food and Drug Safety in South Korea, as well as ethics approval.
This is for an investigator-led, Phase 2 COVID-19 clinical study of its re-purposed drug NP-120 (Ifenprodil). This 40-patient trial is designed to test the effect of Ifenprodil in COVID-19 infected patients with severe pneumonia. Enrollment in its phase 2 clinical trial is expected to begin on May 8, 2020. While shares have slightly pulled back earlier in the week, Algernon stock has reversed course on Wednesday. Since Tuesday morning, the penny stock has managed to bounce back by as much as 14%.
Top Penny Stocks To Watch: Vislink Technologies
Vislink Technologies ( VISL Stock Report) is another one of the penny stocks that broke out big earlier this month, pulled back, and then jumped again this week. Shares jumped to highs of $0.298 on April 27th. But just like earlier in April, there hasn’t been much by way of corporate news to suggest a potential catalyst at the moment. The most recent update found in a filing was with regard to being granted over $1 million through the government’s paycheck protection program.
Prior to this, Vislink was able to secure several contracts to supply communications and surveillance equipment. The company received a $400,000 contract to supply an airborne surveillance video downlink solution to a government agency located in the MENA (Middle East and North Africa) region. Vislink also announced receipt of a $180,000 order for satellite communications equipment for deployment in Asia.
While there haven’t been many new updates this month, what could be receiving the speculation right now? No one can say for sure but it appears as though certain tech companies are gaining traction for imaging solutions. Both penny stocks MARK and CREX caught investor attention for their imaging platforms that essentially scan people for certain attributes. The idea was that this could help when it comes to reopening the economy and scanning people for certain symptoms. It may seem like a stretch but one thing we do know is that the company has continued to operate as an essential business during the pandemic os COVID-19 may have not had as adverse an impact on the company compared to others.
Top Penny Stocks To Watch: Capricor Therapeutics
Capricor Therapeutics ( CAPR Stock Report) has become all-too-familiar this year among lists of popular penny stocks to watch. We first reported on the company back in March. At the time, the penny stock was trading around $1.20. On top of that, the company had just announced that it would host a Key Opinion Leader call during mid-April. Executive Consultant, Stephen Gould, Ph.D. discussed the plan to further develop the company’s platform technologies. He also talked about specifics on the potential application of the company’s exome platform as a COVID-19 vaccine.
At the beginning of the month after Capricor announced the initiation of compassionate use programs for severe COVID-19 patients using its CAP-1002. Fast-forward to the end of the month and this penny stock company has made another big update. Capricor announced new data reporting 100 percent survival in critical COVID-19 patients who were treated with its lead asset, off-the-shelf (“allogeneic”) cardiac cell therapy CAP-1002, at Cedars-Sinai Medical Center as part of six compassionate care cases.
Following a review of the available data, the U.S. FDA approved the Company’s expanded access protocol to treat up to 20 additional COVID-19 patients. There is also a randomized, placebo-controlled trial planned to treat patients with moderate and severe disease which is intended to be funded by non-equity capital. With the Gilead news propelling attention toward coronavirus stocks, CAPR’s update seemed to add more fuel to the blaze and shares have soared. Will this momentum continued?
Top Penny Stocks To Watch: Chimerix Inc.
This is one of the penny stocks we talked about on Tuesday. Chimerix Inc. ( CMRX Stock Report) was initially focused on cancer treatment and other serious diseases. This week, the company announced that it has received clearance from the U.S. FDA for a rolling submission of its New Drug Application.
This is for the approval of brincidofovir or “BCV” as a medical countermeasure for smallpox. Chimerix said that intends to begin the rolling NDA submission in May 2020 with completion targeted for mid-2020.
While that was big news for the company’s core treatments, Wednesday’s update could have caught some extra attention from the “COVID-19 crowd”. Chimerix announced the Company’s initiation of a Phase 2/3 study of dociparstat sodium (DSTAT) in COVID-19 patients with acute lung injury. A 1–2 punch of penny stock news from CMRX this week.
“Given the severity of the COVID-19 pandemic, we have evaluated many potential targets to address the clinical manifestations associated with severe COVID-19,”said Joseph Lasky , M.D., Professor of Medicine, Pulmonary and Critical Care Section Chief, John W. Deming , M.D. Endowed Chair in Internal Medicine at Tulane University Medical School . “Based on the literature, we believe DSTAT has the potential to reduce the excessive inflammation, immune cell infiltration and hypercoagulation associated with poor outcomes in patients with severe COVID-19 infection.”
Originally published at https://pennystocks.com on April 29, 2020.