2 pharma penny stocks returning 200% in a year: Buy call?

November 17, 2021 10:44 AM GMT | By Nidhi Gupta
 2 pharma penny stocks returning 200% in a year: Buy call?
Image source: Yuriy K, Shutterstock.com

Highlights 

  • Sareum Holdings’ SDC-1802 TYK2/JAK1 Kinase Inhibitor received approval from the US Patent and Trademark Office for cancer treatment.
  • SkinBioTherapeutics rolled out AxisBiotix-Ps™, a probiotic supplement for the treatment of psoriasis symptoms.

Pharmaceutical firms often serve as attractive investment options for investors. These stocks belong to healthcare firms focused on research and development, production as well as distribution of pharmaceutical products. The booming healthcare industry presents companies operating within the sector to make the most of the market opportunity.

Investing in pharmaceutical stocks is a popular investment concept, especially during political or economic turmoil. For instance, during the COVID-19 crisis, pharma companies were witnessing high demand, as they offered in-demand products and equipment, thereby increasing their value and share price. Pharma stocks thus present investors with attractive returns if invested at the right time. Let us review in detail two AIM-listed pharma stocks that have offered over 200% return to shareholders in a year – Sareum Holdings and SkinBioTherapeutics.

Sareum & SkinBioTherapeutics: One year return & market cap details

 (Data source: Refinitiv)

Sareum Holdings Plc (LON: SAR)

Sareum Holdings is a drug discovery firm with expertise in developing small molecule drug candidates to treat autoimmune diseases and cancer. Last month, Sareum Holdings’ SDC-1802 TYK2/JAK1 Kinase Inhibitor received approval from the US Patent and Trademark Office for cancer treatment.

2 pharma penny stocks returning 200% in a year: Buy call?

Sareum Holdings raised £2.37 million in June 2021 through two high net worth individuals (HNWI) subscriptions. The company reported a loss on ordinary activities of £1.5 million for 2021 compared to a loss of £0.99 million in 2020. It raised an additional £2.18 million in July and August 2021 through two additional subscriptions by high-net-worth individuals.

The shares of Sareum Holdings closed at GBX 5.15, down by 3.74% on 16 November 2021. In the last one year, the shares of Sareum Holdings returned 237.70% to shareholders, and the current market cap of the company is £180.34 million.

SkinBioTherapeutics Plc (LON:SBTX)

SkinBioTherapeutics is a skin health-focused life science firm. SkinBiotix®, the proprietary platform of SkinBioTherapeutics, is being leveraged to enhance the barrier effect of skin, speed up repair of skin tissues and lower bacterial load. Last month, SkinBioTherapeutics rolled out AxisBiotix-Ps™, a probiotic supplement for the treatment of psoriasis symptoms.

SkinBioTherapeutics’ overall expenditure during the six-month period ended 31 December 2020 remained lower than management’s expectation due to reduced activity at the University of Manchester, COVID-19 and a self-funded consumer study for AxisBiotix-Ps™. Its research and development expenditure during the period was £205k compared to £455k in H1 2019. SkinBioTherapeutics’ loss from operations stood at £628k in H1 2020 compared to £889k in the same period in 2019.

The shares of SkinBioTherapeutics closed at GBX 57.50 on 16 November 2021. In the last one year, the shares of SkinBioTherapeutics returned 278.29% to shareholders, and the current market cap of the company is £90.15 million.


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