This 13p penny stock’s on fire! Should I buy it?
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Earlier this week, I screened the UK inventory marketplace for penny shares (these with share costs underneath £1 and markets-caps underneath £100m) which have sturdy share worth momentum for the time being. It’s honest to say that some fascinating corporations appeared.
Right here, I’m going to take a look at a kind of – Poolbeg Pharma (LSE: POLB). Is that this AIM-listed inventory, which is presently buying and selling for simply 13.45p, price shopping for for my portfolio as a high-risk, high-reward funding?
An modern biopharmaceutical enterprise
Poolbeg Pharma is an under-the-radar biopharmaceutical firm that’s creating medicines to handle unmet medical wants.
Areas of focus embrace most cancers immunotherapy-induced Cytokine Launch Syndrome (CRS), infectious illness, and metabolic situations like weight problems (it’s presently creating an oral weight-loss drug).
On its web site, Poolbeg notes that it leverages modern applied sciences, reminiscent of synthetic intelligence (AI), to speed up drug discovery.
This all sounds fascinating to me, particularly the AI aspect of issues.
I’m additionally actually within the weight problems drug angle. Just lately, I’ve purchased a couple of weight-loss drug shares for my portfolio as I imagine that is prone to be an enormous funding theme over the following decade.
Large share worth positive factors
Now just lately, this inventory has been on fireplace. During the last six months, it has risen about 50%.
Most of those positive factors have been all the way down to information across the firm’s POLB 001 drug, which has been proven to scale back most cancers immunotherapy-induced CRS in an in vivo mannequin.
Earlier this month, the corporate introduced it had acquired approval from the US Patent Workplace for its product. This could strengthen the corporate’s mental property, enhancing the worth and attractiveness of POLB 001 to potential pharma companions.
We imagine POLB 001 holds immense promise in addressing unmet medical wants in most cancers immunotherapy-induced cytokine launch syndrome and extreme influenza, positively impacting sufferers and healthcare methods alike. Its spectacular information package deal and robust patent portfolio, coupled with the promising $10bn+ market alternative in most cancers immunotherapy-induced CRS alone, strengthens our confidence in its potential to positively affect international well being and generate worth for our shareholders.
Poolbeg Pharma CEO Jeremy Skillington
One other issue that’s helped the share worth is the appointment of co-founder and substantial shareholder Cathal Friel as Government Chairman. Friel has a superb monitor file within the capital markets, having beforehand been a co-founder of hVIVO (which is having numerous success at the moment) and Amryt Pharma, which was acquired for $1.5bn in 2023.
Ought to I purchase?
Taking a look at latest developments right here, my view is that is an thrilling firm. I believe it has numerous potential.
Having mentioned that, it’s actually dangerous from an funding perspective. Right this moment, the corporate doesn’t have revenues or earnings. And there aren’t any ensures it ever will. That’s the factor about drug improvement. It’s notoriously unpredictable.
For me personally, the penny inventory’s a bit too dangerous proper now. So I gained’t be shopping for it.
However I shall be holding it on my watchlist. When there’s a bit extra readability on the viability of its medicine, and its producing revenues and earnings, I could possibly be enthusiastic about investing right here.