But what caused all this? Why has the share price erupted over the past year, and should I be adding this business to my portfolio today?

What’s behind the share price surge?

Shield Therapeutics is a speciality commercial-stage pharma business focused on iron deficiency treatments and is the mastermind behind ACCRUFeR.

While ACCRUFeR isn’t a household name, the drug’s the first and currently only FDA-approved oral iron product that targets both iron deficiency and iron deficiency anaemia – something that over 20m people in the US suffer from. And just last month, the FDA extended approval for adolescents following positive results from phase three paediatric clinical trials.

The combination of regulatory approvals, widespread demand, and superior efficacy versus generic supplements has translated into impressive revenue growth. In the third quarter of 2025, the total number of active ACCRUFeR subscriptions reached 54,000, generating $13.1m in net revenue – an 82% year-on-year increase.

Despite barely scratching the surface of its target market, the business is already on the verge of turning free cash flow positive in 2026. And with losses shrinking rapidly, earnings are expected to follow as of 2027. And so it’s not surprising to see Shield Therapeutics’ share price surge on this critical inflexion point milestone.

Bull and bear cases

So 2026 looks to be an exciting year for this pharma enterprise. Shield Therapeutics has a first-mover advantage in a global market valued at around $5.6bn, on track to grow to $10.9bn by 2034. And the recent paediatric regulatory approval has only accelerated its trajectory, with similar approval expected in Europe later this year.

Combining this momentum with the expectation of positive free cash flows, the group’s risk profile has significantly been adjusted downward. However, that doesn’t mean Shield Therapeutics is a slam-dunk buy.

The business is almost entirely dependent on ACCRUFeR for its revenues, creating substantial single-product risk. If manufacturing is disrupted, a competing product enters the market, or health insurance companies refuse to cover the drug, revenue growth could become handicapped very quickly.

That’s particularly dangerous given the group’s continued cash burn rate. Its latest quarterly results show management still has $8.6m of cash & equivalents on its balance sheet as of last September. But that’s down from $10.8m in June. Therefore, if growth slows and consequently free cash flow generation fails to turn positive, the company could be forced to raise capital, likely through equity.

Time to buy?

There’s a lot to be excited about when looking at this business with a compelling bull case and ample room for substantial growth. However, there’s no denying the heightened degree of execution risk and limited financial margin of error.

It’s a classic high-risk/high-reward pharma stock. But with the company having already overcome the enormous challenges and barriers to pharma industry entry, I think Shield Therapeutics is definitely worthy of closer inspection for investors comfortable with volatility.

The post Shield Therapeutics’ share price is up 318% in 1 year! Should I buy now? appeared first on The Motley Fool UK.

One institutional analyst that constantly prowls the micro-cap space is Peel Hunt. And for 2026, its team of experts have highlighted two tiny companies with explosive potential: Jadestone Energy (LSE:JSE) and Shield Therapeutics (LSE:STX).

With market caps of £124m and £113m respectively, these businesses are just over the penny stock threshold of £100m. But with both shares trading for less than 25p, they’re still considered micro-cap opportunities for many investors.

So, why is Peel Hunt so bullish? And how much money could investors make if they buy shares today?

Oil & gas turnaround

Jadestone is a bit of a unique player within the oil & gas sector. Rather than try to find new discoveries, it acquires assets that are close to the end of their lifespan within the Asia-Pacific region. The goal is to buy projects cheaply and then extend their production life through operational efficiency improvements.

This strategy can be highly lucrative for a small player like Jadestone. And if the business hits its production target of 40,000 barrels of oil & equivalents per day, the team at Peel Hunt believes free cash flow could skyrocket, sending the stock price all the way to 50p by this time next year – a 122% gain from current levels.

However, to succeed, Jadestone will need to deliver solid operational execution. And in recent years, that’s proven to be quite challenging. Its flagship Montara project has been riddled with problems such as defects, corrosion, and multiple unplanned shutdowns.

Since repairing old production assets is expensive, the balance sheet has also come under strain, leaving many investors understandably sceptical. But if management can get operations back on track, Peel Hunt’s aggressive forecast might be spot on. Jadestone Energy is a classic high-risk, high-reward investment.

Turning iron into gold

The second near-penny stock on Peel Hunt’s list is Shield Therapeutics – a commercial stage pharma business focused on iron deficiency. Its flagship Accrufer oral iron supplement is already widely available throughout Europe. However, following a recent partnership with Viatris, Accrufer is going to the US healthcare market.

This culminated in the third quarter of 2025 being the strongest in the company’s history, with net revenues and average selling prices jumping by double-digits. And to top it off, free cash flow generation is also expected to turn positive before 2026 kicks off.

Considering the widespread issue of iron deficiency in the US, Shield Therapeutics is looking at an enormous growth opportunity. And it’s one that Peel Hunt thinks could send the share price flying to 15p – almost 35% higher than current levels.

But like Jadestone, performance next year will require good execution. Entering a new market is a lot more involved than simply making a product available. Shield Therapeutics now needs to convince US doctors to prescribe Accrufer to patients instead of existing therapies – something that’s far easier said than done.

Both of these near-penny stocks have impressive potential. But they also come with a single point of failure – a critical risk investors must consider carefully.

The post Prediction: these near-penny stocks could be among 2026’s big winners appeared first on The Motley Fool UK.

From groundbreaking new AI implementations to life-saving medications, they’re paving the way for how our future might look. At the same time, many aren’t yet profitable, relying on funding to keep going until they make it.

Naturally, this adds an extra level of risk to any penny stock investment. When assessing penny stocks, a key consideration is whether or not the company’s product (or service) has long-term viability.

With that in mind, I think Shield Therapeutics (LSE: STX) is onto something big — and I like the direction it’s headed. After years of share price declines, it’s been making impressive strides in 2025.

Yes, substantial risks remain. But looking at the numbers, I think it has significant growth potential.

Impressive growth

Currently trading at just 6.6p per share, Shield Therapeutics is a commercial-stage pharmaceutical company that specialises in iron deficiency treatment. Its flagship product, Accrufer, is used to treat Pulmonary Arterial Hypertension (PAH) — a rare disease that causes high blood pressure in the lungs.

In H1 2025, revenue increased by 72.4% year-on-year to £16.5m, with Accufer accounting for £14.6m. In Q2 2025, revenue doubled from the previous quarter, with 47,000 new prescriptions selling at an average price of £175.

For the year, revenues are up 93.5% while earnings improved 51.2% year-on-year, boosted by accelerating commercial traction in the US. Cash and equivalents stood at around £7.89m as of June, the majority of which came from equity funding.

The business is reportedly on track to achieve cash flow positivity by the end of 2025. But that target could easily derail if things don’t work out as planned.

A strong roadmap… with risks

A recently-formed partnership with US pharma giant Viatris has proved highly successful, giving it access to a 100-person sales team. Prescription volumes reached around 84,000 for the first half, with the average net selling price increasing 1.4 times from H1 2024. This pricing power, alongside volume growth, is a strong indication of strengthening market acceptance.

In my opinion, it demonstrates the hallmarks of a potential millionaire-maker penny stock: strong revenue acceleration, expanding market opportunities, and a path to profitability.

Still, the risks can’t be ignored. It has a severely strained balance sheet with significant debt and negative equity, which is concerning. The company’s survival depends largely on achieving cash flow positivity by year-end and sustaining commercial momentum. Any setback — whether regulatory delays, competitive pressures or execution missteps — could prove catastrophic given the weak financial foundation.

My verdict

As a risk-averse investor, I don’t often consider penny stocks, but Shield Therapeutics is compelling. With a product that’s already flying off shelves amid rapid expansion, I see a bright future ahead for the company.

At the same time, the risks are equally pertinent — as much as it could skyrocket, it could also go to zero. Overall, I still think it’s one worth considering for speculative investors with high risk tolerance, albeit as a small portfolio position.

The post At 6.6p, could this fast-growing penny stock be a millionaire-maker? appeared first on The Motley Fool UK.

But some of the best growth stocks aren’t the big household names. They’re often smaller businesses hiding in plain sight, waiting for a breakthrough moment. This week, two such companies caught my eye — and I’ll admit I’d barely heard of them until now.

Both Shield Therapeutics (LSE: STX) and Pantheon Resources (LSE: PANR) soared by more than a third in just five trading days. Let’s take a closer look.

Shield Therapeutics

Shield Therapeutics is a niche pharmaceutical firm that I first discovered earlier this week. It has a single on-market product called Accrufer, used to treat iron deficiency. Despite being a penny stock, it has just posted results that lit a fire under the share price.

Earnings doubled, while revenue surged 139% year on year. The stock jumped 40% in response — although it remains down 94% over five years.

The business is still unprofitable, posting a £9m loss in H2 2024. But that’s a meaningful improvement from the £16m loss in H2 2023. Debt sits at £21m with £5m in cash, although it recently raised £10m from its largest shareholder, AOP, and renegotiated a £20m debt facility.

It’s risky, of course. With only one marketable product, everything hinges on Accrufer’s success and future approvals. That makes the stock highly speculative.

Still, I like the direction of travel. Losses are narrowing, sales are growing rapidly, and funding has been secured to push growth forward. For those with the appetite for higher-risk penny stocks, I think Shield could be worth considering.

Pantheon Resources

Pantheon Resources is a rather different beast. This £388m market-cap company is focused on oil and gas exploration in Alaska’s North Slope.

The shares shot up 35% this week after the company announced the spudding of the Dubhe-1 well in the Ahpun field. The results exceeded expectations, with the gross hydrocarbon column thickness coming in 26% above pre-drill estimates. Management reckons the net present value of the project could be as much as $1.74bn.

Financially, Pantheon looks sturdier than many exploration peers. It has £13.6m of debt against £307m in equity, with a price-to-book (P/B) ratio of 1.46. Like Shield, it remains loss-making — £9m down in 2024 — but that’s an improvement from a £13.5m loss in 2020.

Still, oil and gas exploration is notoriously volatile and valuations are often based on estimates and best-case scenarios, which may not materialise. While the Dubhe news is exciting, I’ll admit I’m no expert in mining and drilling valuations. 

It could be one to consider for investors who know the sector well and can stomach the ups and downs.

My verdict

This week reminded me that not all growth stocks come wrapped in big brand names. Shield Therapeutics and Pantheon Resources are both high-risk, early-stage stories with plenty of uncertainty. But for investors seeking exposure to small-cap growth with big potential, they may be worth putting on the watchlist.

As for me, I’ll be watching from the sidelines — but I’ll admit, seeing them rocket nearly 40% in a week does pique my interest.

The post 2 growth stocks I’d never heard of — until they soared nearly 40% this week! appeared first on The Motley Fool UK.

For many investors, it has been a productive start to the year.

But one tiny penny stock is making those gains look pedestrian. Shield Therapeutics (LSE: STX), a £57.8m micro-cap pharmaceutical company, is up a staggering 108% year to date. That’s more than 10 times the growth of the broader market!

However, massive price jumps are not uncommon for micro-cap stocks. With a relatively small number of shareholders and limited liquidity, one small investment could make a big difference.

So I decided to find out if the gains are warranted.

A niche pharma stock

Shield is a speciality pharmaceutical firm focused on treating iron deficiency, with its lead product, Accrufer, already on the market. At the time of writing, the shares trade at just 5.6p — a remarkable leap from a low of 2p earlier this year.

Looking further back, the picture is less rosy. The share price has tumbled around 96% from its all-time high roughly five years ago. Since its inception in 2008, it has experienced several sharp rallies, including a climb from 28p to £1.84 in 2019.

But now, there are signs the business could be gearing up for another chapter of growth.

The company remains loss-making, but it is moving in the right direction. Its latest results showed a reduced loss of £21.3m in 2024, down from £40m the year before. Revenue surged 139% year on year, while earnings per share (EPS) improved from -4p to -2p. 

That’s not profitability yet, but it is progress.

A look under the bonnet

Shield’s balance sheet shows around £21m in debt against £45.9m of assets, with no free cash flow at present. A quick ratio of 0.99 suggests it can barely cover its short-term liabilities, but there isn’t much wiggle room.

The company has been active in shoring up its finances. It recently raised £10m in equity funding from its largest shareholder, AOP, and renegotiated a £20m debt facility on more favourable terms. It has also launched a new digital marketing campaign for Accrufer in the US, where it sees significant growth potential. 

Management’s ambition is to become cash flow positive by the end of 2025.

The verdict

This is an intriguing story: a beaten-down penny stock now sprinting ahead of the broader stock market thanks to surging sales and a renewed growth strategy. The market it operates in is niche but important — iron deficiency remains a widespread and often underdiagnosed condition, especially in certain patient groups.

Still, Shield is a high-risk proposition. It is concentrated on a single flagship product and its financial position leaves little margin for operational missteps. But for investors comfortable with micro-cap volatility and keen on the healthcare sector, it might just be one worth considering.

If the current momentum in sales continues, I think this could be one of 2025’s more memorable stock market comeback stories.

The post This 5p penny stock is crushing the stock market in 2025 appeared first on The Motley Fool UK.

There’s been a glimmer of light for the penny stock in more recent months. Precious stones prices have risen again as the economic recovery from 2020’s lows has kicked in. Fresh fundraising earlier this year, allied with an improvement on the production front, has also raised optimism over Petra Diamonds’ long-term future.

I’m still yet to be convinced to buy this stock however. I’m not just worried about how the recent resurgence of Covid-19 cases could impact the diamond market again. And especially what this would mean for Petra Diamonds, given that its balance sheet is still looking petty fragile. The patchy long-term outlook for the natural diamond market also gives me reason to be concerned.

Demand for lab-grown stones has been steadily increasing in recent years. And researchers at Statista expect the market to explode over the next decade. They reckon market volumes will stand at 19.2m carats in 2030. That compares with 6.2m last year and 1m carats in 2010.

It’s also possible that investor interest in Petra Diamonds’ shares will fall as the importance of responsible investing grows. Concerns over worker conditions in South African mines has, along with price, driven the popularity boom for artificial stones. These rising ethical concerns are something that could also drag the Petra Diamonds share price lower over the next decade. Today, the company trades at 1.7p per share.  

A better penny stock to buy

I’d much rather buy UK healthcare share Shield Therapeutics (LSE: STX) for my shares portfolio. This penny stock trades at 45p per share, and I think it could soar in value as the problem of iron deficiency explodes.

Shield Therapeutics’ leading product is Feraccru/Accrufer, a treatment for iron deficiency anaemia. Sales of the drug are rocketing in Europe, with volumes ballooning 51% in the first half of 2021 versus the final six months of last year.

Encouragingly, the pharma firm launched the product in the US on 1 July after getting regulatory approval there. And China has potentially opened the door to the drug being released in that gigantic growth market too, having recently received approved of a new drug application for Feraccru.

Remember that regulatory approval is, of course, by no means guaranteed in China (as is the case elsewhere). Thus, all the hard work Shield Therapeutics has carried out could fail to meet expectations. Still, I’m encouraged by the thumbs ups the penny stock’s product has received from European and American regulators.

I think the company’s work to treat a major global health problem could reap huge rewards.

The post Should I buy these 2 penny stocks? appeared first on The Motley Fool UK.

A breakout UK small-cap stock

Surface Transforms makes carbon-ceramic brakes. Its proprietary method produces brake discs that are more durable and conduct heat better than its competitors. Surface’s main competitor owns almost all of the market, but the owners of BMW own most of it. Surface presents a compelling alternative for carmakers concerned about this BMW connection. 

After many years of trying to crack the market, orders are starting to grow. Surface won several new contracts in 2020. One of them – to be a sole supplier to a global customer – is a huge deal. To be a sole supplier, the customer must have complete confidence in the product and its delivery. Others will take note, and this could be the key that unlocks a chunk of market share in the future.

These new orders should push the company into profitability by 2021, and profits should continue to grow in 2022 and onwards. And I think there is more to come. The carbon-ceramic brakes market is worth around £200m and is growing. A 10% market share equates to revenues of over £20m per year – a significant improvement on the £1m in revenue reported in 2019. I think a 10% market share is achievable. So if you are looking to buy shares in a UK small-cap company, I think you should consider Surface.

Stock therapy

Shield Therapeutics is a pharmaceutical company. Its lead product, Feraccru/Accrufer, treats iron deficiency anaemia. Regulators have approved Feraccru/Accrufer and it is now commercially available. Getting past the approval stage and onto marketing and selling a drug is a significant milestone and reduces the risk of failure. Now the company needs to focus on increasing sales volume.

Shield finds marketing and distribution partners for the markets it wants to enter. The partners pay upfront and milestone payments and royalties on sales. Shield’s European partner sold more of the product in the first half of 2020 than in the whole of 2019. A deal with a distributor covering China, Hong Kong, Macau and Taiwan has been agreed this year and sales could commence as early as 2023.

Finding a US partner would be a game-changer for Shield, and could happen before 2020 is out. The deal with the Asian distributor is worth around £35m in upfront and milestone payments, and 10%–15% of net sales for at least 10 years. I would expect the US deal to be more lucrative. Combining European, Asian and US upfront payments and royalties on sales is expected to tip Shield into positive cash flow and consistent profitability from 2022 onwards.

Owning shares in Shield looks a lot less risky now. Getting to the point of actually making sales of a drug is a huge milestone. The next step is to scale up in existing markets and break into new ones. I think Shield is a UK small-cap stock to buy right now.

The post Here are two UK small-cap stocks I’d buy right now appeared first on The Motley Fool UK.

A promising start

Small-cap Shield Therapeutics (LSE: STX) floated on the AIM market last year and currently has a market cap of £183m. Shield’s plans certainly sound promising. The group’s main product is Feraccru, a treatment for iron-deficiency anaemia. The company is actively marketing Feraccru in Europe and has secured patent protection until 2035 in a number of markets, including the US.

Today’s half-year results provide an insight into progress. H1 revenues were £142,000 and the group reported a net loss of £9.6m. However, the company had net cash of £21.5m at the end of June, so there’s no imminent risk of a cash shortage.

According to management, the group’s strategy is to licence Feraccru in non-core markets and market it directly in major markets such as the UK. The company currently has 20 sales staff “driving product recognition and sales” in Germany and the UK.

Pack sales are said to have increased by 375% in Germany between December 2016 and July 2017. In the UK, growth over the same period was 184%.

2.5m patients?

The company is looking forward to the results of a phase 3 clinical trial in early 2018. If the results are as expected the company hopes to gain regulatory approval in the US. According to chief executive Carl Sterritt, this could increase the potential market opportunity for Feraccru from 330,000 patients to “upwards of 2.5m patients”.

It all sounds promising. But as investors we also need to consider the firm’s valuation. In today’s results, Shield reiterated its guidance for annual sales of £20m-£25m in 2020. My concern is that the group’s current market cap is already £183m.

This guidance means that in three years from now, the stock may still be valued at more than seven times sales.

This sky-high valuation seems to carry a high risk of disappointment. I won’t be investing.

An unlikely double-bagger

Shield Therapeutics may strike it lucky and attract a takeover bid. But I’d rather put my money into a proven performer.

Shares of British American Tobacco (LSE: BATS) have doubled since 2010. During the same period, the group’s dividend payout has risen by 50%. Patient shareholders have enjoyed a market-beating capital return and a generous dividend income.

Big-cap stocks don’t always perform this well. But BAT’s share price has now fallen by 17% from the all-time high of £56.40 seen back in June. The shares are starting to look more reasonably valued, in my view.

Earnings are expected to climb by 14% to 282.4p per share this year, and by a further 11% in 2018. Dividend growth is expected to be around 9% in both years — well above inflation and average wage growth.

These forecasts put British American Tobacco on a 2017 forecast P/E of 16.5, with a prospective yield of 4%. The recently-completed acquisition of Reynolds is expected to result in cost savings that should support margins. For investors wanting real returns on their investments, I believe BAT could be a profitable buy.

The post Why I’d ditch this high-risk growth share to buy British American Tobacco plc appeared first on The Motley Fool UK.

A lucrative startup?

The question must have crossed a few minds when reading today’s first-half results from Shield Therapeutics (LSE: STX), which floated on AIM as recently as February 2016.

Shield describes itself as a “specialty pharmaceutical company focused on the development and commercialisation of late‑stage, hospital‑focused pharmaceuticals.” It reported its first revenues, of £240,000, from sales of its iron deficiency anaemia treatment Feraccru after it was approved in February. It’s a modestly-priced medication, but chief executive Carl Sterritt described its pricing agreements as attractive, and sales should also commence in Germany in October.

It’s hard to put any kind of valuation on Shield’s 159p shares at the moment, as there are no profits forecast yet, and consistent losses pencilled-in for this year and next. The firm did have £28.4m in cash on the books at 30 June but with pre-tax losses of £18m-£19m per year forecast for this year and next, there’s going to be some more fundraising needed before any profits start rolling in.

Where does this leave Shield Therapeutics as an investment possibility? It’s not a total blue-sky punt as it does have a marketable product and does actually have sales cash coming in, but other than that I see it as pretty much straight gambling if you invest right now — it looks like one of those companies that could make you a very big profit it it comes good, but could lose you your stake if it doesn’t.

Tried and trusted?

Are you better, then, to stick with an established blue chip pharmaceuticals company like AstraZeneca (LSE: AZN)? AstraZeneca was struggling against the expiry of patents and increased competition from generic drugs when Pascal Soriot took over as chief executive in October 2012.

Mr Soriot’s shake-up was severe, and it was always going to take a few years to rein in the firm’s falling earnings and return them to growth. I’d optimistically hoped for EPS growth by 2017, but that seems unlikely now, with falls of 2%-3% forecast for this year and next. Still, if we see EPS growth in 2018, that really won’t be a bad turnaround result at all.

I’m a little surprised that the price has spiked by a third since the middle of June to 5,164p. That’s taken the shares to a forward P/E multiple of 16.4 for 2017, though interim results on 28 July saw second-quarter falls across the board. It was all in line with expectations, mind, and there’s really nothing new that wasn’t known six months ago.

I suspect the price recovery is simply down to investors re-appraising the value of good old safe and solid shares like our big pharmaceuticals players, partly in the sobering light of the EU referendum result. And they’re realising that P/E ratings of around 16 or so aren’t at all stretching for dependable investments providing dividend yields in excess of 4% and which should be generating profits for decades to come.

At least, that’s the way I see AstraZeneca, and it would nice to think the market does too.

The post Is Shield Therapeutics plc a better bet than AstraZeneca plc? appeared first on The Motley Fool UK.