Onconova (NASDAQ:ONTX) Stocks Soar 75%. A Penny Stock To Buy?

Summary

• Stocks of Onconova Therapeutics Inc (NASDAQ:ONTX, ONTX:US) skyrocketed by 75 per cent to close at US$ 1.08 on Tuesday, May 18.
• ONTX stocks have been recording quite a rally on the equity market, swelling 107 per cent in the past week.
• A clinical-stage biopharmaceutical firm, Onconova focuses on developing drugs for people suffering from cancer.

Stocks of Onconova Therapeutics Inc (NASDAQ:ONTX, ONTX:US) skyrocketed by 75 per cent to close at US$ 1.08 on Tuesday, May 18. ONTX stocks have been recording quite a rally on the equity market, swelling 107 per cent in the past week.

A clinical-stage biopharmaceutical firm, Onconova focuses on developing drugs for people suffering from cancer. It recently developed a drug named Rigosertib to treat cases of chronic leukaemia.

In April, the company announced that a patient was administered Rigosertib to assess its efficacy on a patient with skin disorder RDEB (recessive dystrophic epidermolysis bullosa).

Let’s take a look at Onconova Therapeutics’ stocks and financial performance.

Onconova Therapeutics Inc (NASDAQ:ONTX, ONTX:US)

In the past year, Onconova stock recorded a significant growth of 190 per cent, beating the S&P 500-Pharmaceuticals (Sub Industry) sector. Its six-month stock price growth sits at 314 per cent.

As of Tuesday’s close, at US$ 1.08, the stock was 44 per cent down from its 52-week high of US$ 1.93 (February 18, 2021). Investors looking to invest in this stock might use this discounted price as an entry point.

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In Q1 FY21, the company recorded cash and cash equivalents of US$ 48 million. It also had net proceeds of US$ 35.2 million generated from two equity offerings.

Key Initiatives of Onconova Therapeutics Inc

While announcing its first quarter report for fiscal 2021, Onconova Therapeutics said that it is conducting Phase 1 trials of a solid tumour treatment in China. The company is studying the effects of ‘ON 123300’, a multi-kinase inhibitor that can reportedly reduce tumour growth.

Onconova Managing Director Steven M Fruchtman said that the third cohort of the Phase 1 study is expected to begin soon in China. He added that ON 123300 appears to be suiting the patients and no toxicities have been observed to date.

Meanwhile, the 'ON 123300 Phase 1' trial is open for enrolment in the US, and the biopharma company is actively looking for patients for the study.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.