The biotechnology sector is a booming one, and the right stocks within the sector have been known to generate significant gains for investors. Think about it. Could you imagine getting in on Gilead Sciences (NASDAQ: GILD), Abbvie (NASDAQ: ABBV), or even Biogen (NASDAQ: BIIB), when they were penny stocks?
Opportunities like this are born all the time on Wall Street.
Small companies, looking for ways to better serve patients with varying conditions often strike it big, and those that got in when those companies were small experience significant growth.
So, what opportunities should investors be paying attention to right now. Here are a few small biotech plays that have the potential to run with the big dogs in the relatively near future:
Plus Therapeutics (NASDAQ: PSTV)
Plus Therapeutics is a relatively small company focused on finding solutions for some of the world’s most pressing cancers. At the moment, the company’s flagship candidate, known as Rhenium NanoLiposome is in the early stages of clinical development, currently enrolling patients in a Phase 1/2 clinical trial.
The treatment is being assessed as a potential option for patients with glioblastoma, an aggressive type of cancer that occurs in the brain or spinal cord and comes with a significantly grim prognosis.
Nonetheless, Plus Therapeutics plans on changing that.
One of the most significant challenges in treating patients with glioblastoma is known as the blood-brain barrier. This barrier makes it incredibly difficult to target conditions in the brain as the human body naturally blocks therapeutics from being able to enter.
Nonetheless, Plus Therapeutics seems to have a quality treatment that’s capable of passing this barrier, and could lead to significantly better outcomes for this patient population with few effective treatment options.
As a result, an investment in the stock now, while it’s young could pay off in a big way in the long term.
Silo Pharma (OTCMKTS: SILO)
Silo Pharma is a company focused on the treatment of psychological and physiological conditions, but takes a differentiated approach to that treatment. Rather than looking for opportunities to develop new chemicals and delivery types, the company is looking to history as a way to treat conditions like Parkinson’s disease, fibromyalgia, and general anxiety disorder.
Throughout history, medicine men, from ancient times to today, used psychedelics, like magic mushrooms to treat a wide array of conditions just like these, and Silo Pharma sees an opportunity in that fact.
The company’s work surrounds the use of psychedelics like psilocybin, the active ingredient in magic mushrooms, as potential solutions for a wide array of medical problems, and the data greatly supports their work.
Moreover, this isn’t just a small team of experts hoping to make something big out of nothing. The company has entered into agreements with big partners like the University of Maryland, Baltimore, and Zylo Therapeutics, to expand their research and capabilities, all within the past year.
As the company continues to execute on its plan to bring psychedelic-based therapeutic options to patients with few options otherwise, the value proposition here continues to fly, making this yet another small biotech that’s worth a position on your watchlist.
Verastem (NASDAQ: VSTM)
Verastem is another clinical-stage biotechnology company that’s working to combat one of the biggest medical threats known to man, cancer. However, the company is taking a differentiated approach to treatment that seems to be having profound effects.
While the company does make an effort to treat malignancies directly, as is the case with chemotherapy and radiation, it’s also working on modulating tumor microenvironments.
Cancer tumors are surrounded by normal cells and blood vessels that allow them to eat and grow. By modulating this environment, the company’s hope is to essentially starve the tumor of the nutrients it needs to survive, ultimately causing cancer cell death.
The company has several ongoing clinical and preclinical trials focused on the treatment of both solid tumors and hematologic tumors, and the data coming out of these trials is promising.
Should the company continue on the path it’s on, there’s a strong chance that over the next several years, it will bring a therapeutic option to market, addressing some of the world’s most pressing cancers, and that would be an overwhelmingly profitable opportunity, making the stock one to watch closely.
Citius Pharmaceuticals (NASDAQ: CTXR)
Finally, Citius Pharmaceuticals is a specialty pharmaceutical company that’s working to bring better solutions to growing markets. The company has two core products under development, including:
- Mino-Lock. An antibiotic lock solution, Mino-Lock is being developed as a potential treatment for patients with catheter-related bloodstream infections. These are serious conditions and common complications of long-term catheter use. These infections are most commonly seen in hemodialysis patients and cancer patients receiving therapy through central venous catheters.
- CITI-002. A topical formulation fo halobetasol and lidocaine, CITI-002 is a candidate designed to provide anti-inflammatory and anesthetic relief to consumers with hemorrhoids. With hemorrhoids affecting nearly 5% of the population, and about 10 million patients reporting symptoms annually, this is a massive, and growing, market.
While the company’s approach to the development of therapeutic options for high-value indications is exciting in and of itself, there’s another layer of excitement to this one.
Recently, the retail investing community has been banding together behind the stock, showing their support for the work the company is doing. As more and more support the company, its potential for long term growth is becoming harder and harder to ignore.
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Disclosure: This article is not intended to be financial advise. This article was published as the result of a monetary relationship between CNA Finance and Silo Pharma. Trading in penny stocks can lead to significant losses.