In a meme frenzy, any positive news related to a company has a magnified impact on the stock price. In the euphoria of 2021, companies with ambitious growth plans skyrocketed. The markets didn’t wait to see if the company can execute the big plans. A good example is Plug Power (NASDAQ:PLUG) stock.
Biotech stocks are among the favorite targets during a meme stock rally. This holds particularly true for biotech companies that are still in the process of commercializing various molecular entities. Any positive news related to clinical trials can send the stock skyrocketing.
Novavax (NASDAQ:NVAX) stock was trading below $5 in the first week of May. In the last one month, the stock has skyrocketed by 328%! This is just one instance of the meme rally that was driven by the news of Novavax partnering with Sanofi (NASDAQ:SNY).
Now let’s identify similar biotech stocks that are likely to go ballistic in the meme frenzy.
Atossa Therapeutics (ATOS)
Atossa Therapeutics (NASDAQ:ATOS) is a clinical-stage biopharmaceutical company that develops oncology medicines for breast cancer and other conditions. The trend for ATOS stock seems bullish with an upside of almost 50% for year-to-date (YTD). With positive business developments, a bigger rally is impending.
In terms of the development pipeline, the biotechnology company is working on (Z)-endoxifen. The candidate is unique in the sense that it can work in all areas of breast cancer paradigm. This includes mitigation of breast cancer risk, reduce cancer cells and risk of recurrent or new breast cancer after the initial treatment. Therefore, if the clinical trials are successful, Atossa Therapeutics has a significant potential for growth.
From a stock price-action perspective, there is ample data from clinical trials that will be available in the second half of 2024. This includes mammographic breast density reduction data and the results for EVANGELINE. The mix shelf offering of $100 million in May boosts the company’s cash buffer for R&D investments.
Entera Bio (ENTX)
Entera Bio (NASDAQ:ENTX) is a clinical-stage biotech company that’s focused on orally delivered peptide and protein therapeutics for unmet medical needs. ENTX stock has surged by 137% in the last 12 months. However, in a meme frenzy, a bigger rally is possible.
Currently, the most advanced product candidate, EB613, is for the treatment of high risk, post-menopausal osteoporosis. Further, B612 is for the treatment of hypoparathyroidism. Entera has two more programs in the pre-clinical stage for short bowel syndrome and obesity.
An important point to note is that globally, osteoporosis impacts 200 million women. Therefore, the biopharma company’s most advance-stage candidate has a big addressable market. Further, no osteoporosis therapy has been approved since 2019. So, don’t be surprised if EB613 has blockbuster potential on commercialization.
Entera is already preparing to initiate a Phase three registrational study for EB613. However, this will be pursuant to the FDA’s qualification of a quantitative BMD endpoint that’s expected to occur by January 2025. Thus, upcoming catalysts can make ENTX stock soar.
Actinium Pharmaceuticals (ATNM)
Actinium Pharmaceuticals (NYSE:ATNM) stock has remained sideways in the last 12 month, but a big breakout rally seems imminent.
This firm is a clinical-stage biopharmaceutical company that develops targeted radiotherapies to deliver cancer-killing radiation. Notably, the company’s Iomab-B is in the third stage of clinical trials and is a first-in-class targeted radiotherapy. Actinium has five other products in the pipeline that remain in early stages of clinical trials.
In terms of catalysts, the phase three trials for Iomab-B have delivered positive data. With the company moving toward regulatory filings in the second half of 2024, big price-action seems likely. I don’t see any financial concerns with the current cash buffer likely to fund operations into the second half of 2026.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.