The small cap biotech and biopharma complex has been very kind to everyone who has followed Bret Jensen’s picks over the past half year. Always trying to outdo himself however, here are two more recommendations that have the signature Bret Jensen “X” factors that make up a great small cap biotech investment.
Avanir Pharmaceuticals (NASDAQ: AVNR) more than tripled thanks to a predicted buyout offer since its inclusion in July’s inaugural edition of my Small Cap Gems portfolio. In addition, I have had great success highlighting some attractive small cap plays in these spaces right here on Investors Alley. Curis Inc. (NASDAQ: CRIS) has more than doubled since I highlighted this promising small cap biotech concern from my own portfolio on December 26th. Not to be outdone, ZIOPHARMA Oncology (NASDAQ: ZIOP) has almost tripled despite a big secondary offering recently, since I tagged this speculative recommendation for major upside back on October 25th.
Hoping to continue this recent scorching streak within these sectors I offer up two more speculative but attractive biotech stocks under $5 a share that could produce triple digit returns if everything falls nicely into place.
Let’s start with Threshold Pharmaceuticals (NASDAQ: THLD) an aptly named biotech company with under a $250 million market capitalization which is on the verge of substantial upside if events pan out in 2015. Threshold discovers and develops therapeutic agents that target tumor cells for the treatment of patients living with cancer in the United States. Its lead investigational small molecule, TH-302, is being evaluated in two pivotal Phase III clinical trials for the treatment of soft tissue sarcoma indication and pancreatic cancer.
The company has a partnership with Merck KGaA to co-develop and commercialize TH-302 which also is in early investigative trials for other indications. The company is in midst of raising just under $30 million for R&D efforts which will bring its total cash balance to almost $100 million.
