This 13p penny inventory’s on hearth! Ought to I purchase it?


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Earlier this week, I screened the UK inventory marketplace for penny shares (these with share costs beneath £1 and markets-caps beneath £100m) which have sturdy share value momentum for the time being. It’s truthful to say that some fascinating corporations 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 at present 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 deal with unmet medical wants.

Areas of focus embody most cancers immunotherapy-induced Cytokine Launch Syndrome (CRS), infectious illness, and metabolic circumstances like weight problems (it’s at present growing an oral weight-loss drug).

On its web site, Poolbeg notes that it leverages modern applied sciences, equivalent to synthetic intelligence (AI), to speed up drug discovery.

This all sounds fascinating to me, particularly the AI facet of issues.

I’m additionally actually within the weight problems drug angle. Not too long ago, I’ve purchased a couple of weight-loss drug shares for my portfolio as I imagine that is more likely to be an enormous funding theme over the following decade.

Large share value features

Now just lately, this inventory has been on hearth. Over the past six months, it has risen about 50%.

Most of those features have been all the way 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 imagine 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 techniques alike. Its spectacular information package deal and robust patent portfolio, coupled with the promising $10bn+ market alternative in most cancers immunotherapy-induced CRS alone, strengthens our confidence in its potential to positively influence international well being and generate worth for our shareholders.

Poolbeg Pharma CEO Jeremy Skillington

One other issue that’s helped the share value is the appointment of co-founder and substantial shareholder Cathal Friel as Government Chairman. Friel has a superb monitor report within the capital markets, having beforehand been a co-founder of hVIVO (which is having numerous success at the moment) and Amryt Pharma, which was acquired for $1.5bn in 2023.

Ought to I purchase?

Taking a look at latest developments right here, my view is that is an thrilling firm. I believe it has plenty of potential.

Having stated that, it’s actually dangerous from an funding perspective. In the present day, the corporate doesn’t have revenues or income. And there are not any ensures it ever will. That’s the factor about drug improvement. 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 will likely be retaining it on my watchlist. When there’s a bit extra readability on the viability of its medication, and its producing revenues and earnings, I might be considering investing right here.

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