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Earlier this week, I screened the UK inventory marketplace for penny shares (these with share costs below £1 and markets-caps below £100m) which have sturdy share worth momentum in the mean time. It’s truthful to say that some attention-grabbing firms appeared.
Right here, I’m going to have a look at a type of – Poolbeg Pharma (LSE: POLB). Is that this AIM-listed inventory, which is presently buying and selling for simply 13.45p, price shopping for for my portfolio as a high-risk, high-reward funding?
An modern biopharmaceutical enterprise
Poolbeg Pharma is an under-the-radar biopharmaceutical firm that’s growing medicines to handle unmet medical wants.
Areas of focus embrace most cancers immunotherapy-induced Cytokine Launch Syndrome (CRS), infectious illness, and metabolic circumstances like weight problems (it’s presently growing an oral weight-loss drug).
On its web site, Poolbeg notes that it leverages modern applied sciences, similar to synthetic intelligence (AI), to speed up drug discovery.
This all sounds attention-grabbing to me, particularly the AI facet of issues.
I’m additionally actually within the weight problems drug angle. Lately, I’ve purchased a couple of weight-loss drug shares for my portfolio as I consider that is more likely to be an enormous funding theme over the subsequent decade.
Big share worth beneficial properties
Now not too long ago, this inventory has been on hearth. Over the past six months, it has risen about 50%.
Most of those beneficial properties have been right down to information across the firm’s POLB 001 drug, which has been proven to cut back most cancers immunotherapy-induced CRS in an in vivo mannequin.
Earlier this month, the corporate introduced it had obtained approval from the US Patent Workplace for its product. This could strengthen the corporate’s mental property, enhancing the worth and attractiveness of POLB 001 to potential pharma companions.
We consider POLB 001 holds immense promise in addressing unmet medical wants in most cancers immunotherapy-induced cytokine launch syndrome and extreme influenza, positively impacting sufferers and healthcare programs alike. Its spectacular knowledge bundle and powerful patent portfolio, coupled with the promising $10bn+ market alternative in most cancers immunotherapy-induced CRS alone, strengthens our confidence in its potential to positively affect international well being and generate worth for our shareholders.
Poolbeg Pharma CEO Jeremy Skillington
One other issue that’s helped the share worth is the appointment of co-founder and substantial shareholder Cathal Friel as Govt Chairman. Friel has a wonderful observe report within the capital markets, having beforehand been a co-founder of hVIVO (which is having plenty of success right this moment) and Amryt Pharma, which was acquired for $1.5bn in 2023.
Ought to I purchase?
Taking a look at current developments right here, my view is that is an thrilling firm. I feel it has plenty of potential.
Having stated that, it’s actually dangerous from an funding perspective. Right this moment, the corporate doesn’t have revenues or income. And there are not any ensures it ever will. That’s the factor about drug growth. It’s notoriously unpredictable.
For me personally, the penny inventory’s a bit too dangerous proper now. So I received’t be shopping for it.
However I might be retaining it on my watchlist. When there’s a bit extra readability on the viability of its medicine, and its producing revenues and earnings, I might be excited by investing right here.
