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One factor I like about penny shares is how they often supply a sneak peek into the long run. Many of those small start-ups are on the slicing fringe of know-how, engaged on tasks which have but to realize mainstream media consideration.
From groundbreaking new AI implementations to life-saving drugs, they’re paving the best way for the way our future may look. On the similar time, many aren’t but worthwhile, counting on funding to maintain going till they make it.
Naturally, this provides an additional degree of threat to any penny inventory funding. When assessing penny shares, a key consideration is whether or not or not the corporate’s product (or service) has long-term viability.
With that in thoughts, I believe Defend Therapeutics (LSE: STX) is onto one thing large — and I just like the route it’s headed. After years of share worth declines, it’s been making spectacular strides in 2025.
Sure, substantial dangers stay. However trying on the numbers, I believe it has vital progress potential.
Spectacular progress
At present buying and selling at simply 6.6p per share, Defend Therapeutics is a commercial-stage pharmaceutical firm that specialises in iron deficiency remedy. Its flagship product, Accrufer, is used to deal with Pulmonary Arterial Hypertension (PAH) — a uncommon illness that causes hypertension within the lungs.
In H1 2025, income elevated by 72.4% year-on-year to £16.5m, with Accufer accounting for £14.6m. In Q2 2025, income doubled from the earlier quarter, with 47,000 new prescriptions promoting at a mean worth of £175.
For the yr, revenues are up 93.5% whereas earnings improved 51.2% year-on-year, boosted by accelerating industrial traction within the US. Money and equivalents stood at round £7.89m as of June, nearly all of which got here from fairness funding.
The enterprise is reportedly on observe to realize money move positivity by the tip of 2025. However that concentrate on might simply derail if issues don’t work out as deliberate.
A robust roadmap… with dangers
A recently-formed partnership with US pharma large Viatris has proved extremely profitable, giving it entry to a 100-person gross sales crew. Prescription volumes reached round 84,000 for the primary half, with the typical internet promoting worth growing 1.4 occasions from H1 2024. This pricing energy, alongside quantity progress, is a powerful indication of strengthening market acceptance.
In my view, it demonstrates the hallmarks of a possible millionaire-maker penny inventory: sturdy income acceleration, increasing market alternatives, and a path to profitability.
Nonetheless, the dangers can’t be ignored. It has a severely strained stability sheet with vital debt and unfavorable fairness, which is regarding. The corporate’s survival relies upon largely on reaching money move positivity by year-end and sustaining industrial momentum. Any setback — whether or not regulatory delays, aggressive pressures or execution missteps — might show catastrophic given the weak monetary basis.
My verdict
As a risk-averse investor, I don’t typically take into account penny shares, however Defend Therapeutics is compelling. With a product that’s already flying off cabinets amid speedy enlargement, I see a vivid future forward for the corporate.
On the similar time, the dangers are equally pertinent — as a lot because it might skyrocket, it might additionally go to zero. Total, I nonetheless suppose it’s one price contemplating for speculative buyers with excessive threat tolerance, albeit as a small portfolio place.
