The most undervalued pharma penny-stocks in Canada

Penny stocks can be a high-risk investment, but they can also offer great returns. Not all companies with shares being traded in this area of the stock market end up turning much profit, but some exceed the expectations of even experienced analysts. Penny stocks offer investors a unique opportunity to acquire shares at a low price and enjoy a great return if the companies succeed.

Here are 3 Canadian pharma penny-stocks to watch in the coming months.

VentriPoint Diagnostics (OTC: VPTDF)

Incorporated in 2004, Ventripoint Diagnostics, Ltd. is a medical device company headquartered in Toronto, Canada. The company specializes in the development and commercialization of diagnostic tools that monitor heart disease patients. The company’s flagship product is an imaging system that can be used to make 3D models featuring critical volume and functional measurements of a patient’s heart chambers.

VentriPoint has also recently expanded from the medical imaging systems and developed a suite of applications for various heart diseases and imaging modalities, including Covid-19 related heart issues. The company has managed to tough it out on the stock market with a market cap of 37.645 million. The 52-week range of the stock price is $0.06 to $0.55, with a closing price of $0.24. The upside of the stock depends on innovations at VentriPoint Diagnostics that are expected to be revealed in 2022. While the share value has declined since the previous year’s high of 0.55, some analysts are optimistic that the value will eventually surpass earlier resistance points.

Microbix Biosystems (OTCQX: MBXBF) (XTSE: MBX)

Microbix Biosystems is a life science company that has been around since 1988. The Canadian company develops and commercializes proprietary biological and technological solutions for health and wellbeing. The company primarily caters to North America and Europe and manufactures biological materials for the diagnostics industry.

Microbix received recognition and financial stability after manufacturing a critical range of antigens for immunoassays and its laboratory quality assessment and proficiency (QAPs) that support clinical lab testing, assay development, and validation. The company specializes in streamlining clinical workflows. Headquartered in Mississauga, Canada, Microbix Biosystems, Inc. is applying its biological expertise to develop other products, like a viral transport medium (DxTM), which stabilizes patient samples for lab testing. Microbix has earned revenue by selling QAPs to lab accreditation organizations, diagnostic companies, and clinical labs.

Microbix had a profitable year in 2021, with revenues increasing 77% from 2020. The company achieved record-high revenues of $18.6 million, with stronger sales and better gross margins leading to a net income of $3,233,390. The turnaround was significant, given the previous year’s net loss of $6,227,525. The news of 2021 earnings was reflected quickly in the stock market with the share value reaching an all-time high.

Microbix shares are currently traded at $0.5255 on February 8, 2022. The market cap of 68.29 million and a share volume of only 6,000 show some potential upside. Share values have shown a 52-week range of $0.40 - $0.72. The company is scheduled to release quarterly earnings on February 10, 2022, which will likely have an impact on the stock price.

InnoCan Pharma (OTCQB: INNPF) (CSE: INNO) (FSE: IP4)

Recent worldwide adoption and acceptance of Cannabidiol (CBD) infused treatments and products has opened many new doors in the pharmaceutical industry. One Israeli pharmaceutical technology company that is proving to be a rising star in medical technologies and the stock market is InnoCan Pharma. Founded in 2018, the company has made cutting-edge breakthroughs for the future of Cannabidiol (CBD) loaded delivery systems.

The company specializes in the research, development, and production of several different platforms to combine CBD with other pharmaceuticals, as well as the CBD-integrated pharmaceuticals themselves. The current lines of business at InnoCan include injections, exosomes, topicals, and healing cosmetic products. The company derives its early success from a novel combination of technologies with pharmaceutical breakthroughs that allow InnoCan to target specialized markets and gain first-mover advantages.  

InnoCan has already made significant accomplishments with research and development and commercial products. The company has achieved semi-commercial production of exosomes and has a total of 14 families of patent applications. InnoCan has launched a B2C sales platform and secured distribution agreements in more than seven countries. The products and technological advancements continue to stabilize the financial position of InnoCan, which has raised more than $28 million CAD by exercising warrants and fundraising.

InnoCan shows a current equity capital base of roughly $28 million, with an outstanding option to convert another $2 million of warrants. The Israeli company continued to invest resources into development during 2021, which translated very well for investors. In March 2021, the company entered the stock market through the Canadian Securities Exchange, listed at $0.37 per share. In its introductory year, the stock prevailed with a 52-week range of $0.30 - $1.65 and a share volume of 30,505.