Investors typically steer clear of penny stocks due to their unpredictable nature, but biotechnology company Chimerix (NASDAQ:CMRX) stands out as an exception. With a successful therapeutic track record and positive analyst sentiment, Chimerix is worth a closer look for patient speculators. The company specializes in developing medicines to improve the lives of patients with deadly diseases, such as cytomegalovirus (CMV) and smallpox.
Chimerix gained recognition for its research and development of Tembexa, a promising antiviral drug that was approved by the FDA to treat smallpox. Despite a setback in its Phase 3 trial for CMV prevention, the company’s scientific expertise has garnered interest, especially during the COVID-19 pandemic.
Following the sale of Tembexa to Emergent BioSolutions for $238 million in 2022, Chimerix now focuses on its pipeline of therapeutics, including ONC201 for H3 K27M-mutant glioma. This late-stage drug candidate has shown promise, with potential for orphan drug classification due to the rarity of the tumor it targets.
While investing in CMRX stock is a speculative gamble, analysts have a Strong Buy consensus rating with a price target indicating significant upside potential. It’s important to note that the success of ONC201 is key to the company’s future, making it a high-risk investment based on narrative rather than financial data.
In conclusion, Chimerix offers a compelling but risky opportunity for investors interested in the biotech sector. It’s essential to understand the speculative nature of the investment and the potential impact of ONC201’s success on CMRX stock.