Biotech stocks have been hammered back to back for two years in a row now. The last time the SPDR ETF suffered a drop of 15% or more was in 2018, and the fund followed it up with a 33% increase in 2019. It dropped more than 15% in 2016 and followed that up with a 44% rise in 2017. With the recent massive sell-off in the biotech sector, it seems that sector is now well into oversold territory and could very well see relative solid performance in 2022.
Some notable biotech stocks include AbbVie Inc (NYSE:ABBV), GH Research (NASDAQ:GHRS), Sundial Growers (NASDAQ:SNDL), Reata Pharmaceuticals (NASDAQ:RETA), Supernus Pharmaceuticals (NASDAQ:SUPN), Phibro Animal Health (NASDAQ:PAHC) and Cassava Sciences Inc (NASDAQ:SAVA).
One small-cap biotech stock that needs immediate attention is Lexston Life Sciences (OTC US:LEXTF). Some of the important points that make Lexston Life Sciences (OTCQB:LEXTF) a worthy candidate for discussion as per this Research report are as follows:
- The company’s Revolutionary Hybrid Business model is fueling organic growth from early revenue
- Newly DTC-Certified with a low float that could provide explosive moves on a daily basis when potential catalysts arise.
- Driven by Elite Management Team with years of experience successfully navigating Canada’s tough regulatory framework.
- Unrivaled Flexibility to Research and Develop new IP in Canada’s Rapidly-Growing Psy-che-delics industry.
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As per this research report, one of the most compelling arguments for Lexston Life Sciences comes from just looking at the company’s financials and stock structure. There are less than 60 million total shares, with the majority escrowed over the next three years. A full 20 million shares are presently restricted, limiting the maximum available float to just 36 million shares representing a cash total of less than $400,000 at today’s (1/6/22) prices. Even for a small and relatively new company, that’s a practically minuscule amount of available exposure for any publicly-traded company. If and when the company books more contracts and boosts its revenue, that could lead to a substantial and swift upward swing due to the limited float and extremely low share price (presently at $.01 on the OTCQB on 1/6/22).
Combined with the company’s already-steady revenues set to cover their expenses by the end of 2022, it’s a compelling argument to take a closer look at Lexston Life Sciences (OTCMKTS: LEXTF, CNSX: LEXT).
Source: https://www.otcmarkets.com/stock/LEXTF/security
https://simplywall.st/stocks/ca/pharmaceuticals-biotech/cse-lext/lexston-life-sciences-shares
