Earlier this week, I screened the UK stock market for penny stocks with strong share price momentum. One of the interesting companies that popped up is Poolbeg Pharma (LSE: POLB), currently trading at just 13.45p.
Poolbeg Pharma is a biopharmaceutical company focusing on developing medicines for unmet medical needs, such as cancer immunotherapy-induced Cytokine Release Syndrome (CRS), infectious disease, and obesity. The company utilizes innovative technologies like artificial intelligence (AI) to speed up drug discovery.
The stock has seen significant gains recently, with a 50% increase in the last six months. Most of these gains are attributed to positive news surrounding the company’s POLB 001 drug, which has shown promise in reducing CRS. The US Patent Office recently approved the product, enhancing its value and attractiveness to potential pharma partners.
The appointment of co-founder Cathal Friel as Executive Chairman has also contributed to the stock’s rise. Friel has a successful track record in the capital markets.
While Poolbeg Pharma shows promise, it is a high-risk investment as the company currently has no revenues or profits. Drug development is unpredictable, making it a risky venture. Personally, I find the stock too risky at the moment, but I will keep it on my watchlist for future developments. When the company starts generating revenues and earnings, I may consider investing.
In conclusion, Poolbeg Pharma is an exciting company with potential, but investors should be aware of the risks involved in investing in penny stocks.