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Highlights:
- REVB stocks were up by about 72 per cent as of 1.57 PM EST on Monday.
- GOVX stocks were up by roughly 109 per cent around the same time.
- On July 23, the WHO provided its highest alert level for the outbreak of monkeypox.
Stocks of Revelation Biosciences, Inc. (NASDAQ:REVB) and GeoVax Labs, Inc. (NASDAQ:GOVX) have been creating a buzz on the stock markets on Monday, July 25, amid multiple developments.
REVB stocks were up by about 72 per cent as of 1.57 PM EST on Monday, while GOVX stocks were up by roughly 109 per cent around the same time.
Let's explore the probable reasons that could have triggered the recent rally of the penny stocks.
Revelation Biosciences, Inc. (NASDAQ:REVB)
The health care firm recently posted the data for its Phase 1b CLEAR study, where it has reportedly been evaluating the efficacy of intranasal REVTx-99b on nasal challenge allergen.
After soaring in pre-market hours, REVB scrip went on to rise by 147.65 per cent to US$1.61 at 9:41 AM EST.
The US$23.37-million market cap firm posted a net loss of US$6.61 million in Q1 FY22 against that of US$2.61 million in the year-ago quarter.
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GeoVax Labs, Inc. (NASDAQ:GOVX)
GeoVax stock also took off in the pre-market hours on Monday and was trading about 97 per cent higher at US$0.51 at 2.18 PM EST. GeoVax posted a market cap of US$14.81 million at the time of writing.
While there is no corporate update, investors could have turned to GOVX stock in the wake of the World Health Organization's (WHO) declaration of monkeypox as a global health concern. On July 23, the WHO provided its highest alert level for the outbreak of monkeypox.
Several other health stocks, like SIGA Technologies (SIGA), Emergent Bio (EBS), etc., that are focused on monkeypox treatment soared following this development.
GeoVax's grant and collaboration revenue were US$82,000 in Q2 FY22 against that of US$110,000 a year ago. The healthcare player's net loss was US$2.42 million in the latest quarter compared to US$1.56 million in the same quarter of 2021.
Bottom line
These penny healthcare stocks increased significantly on Monday amid various contributing catalysts. Nonetheless, investors should ideally practise caution when it comes to penny stocks. In general, penny stocks tend to be riskier than other due to their lower market cap.
