Biotech stocks are some of the most volatile securities on any day, but many of them have a lot of potential for growth. If you’re a penny stock trader looking to get in on the ground floor of burgeoning biotech, you’re in luck. Check out our picks for the best biotech stocks under 5 bucks.
Savvy small-cap day traders and long-term investors, however, are well aware of the profit potential of finding the right biotech penny stocks.
But where should you start your search?
Keep reading for our favorite biotech stocks trading under $5 and find out.
Best Biotech Penny Stocks Under $5
Atossa Therapeutics Inc. (NASDAQ: ATOS)
Atossa Therapeutics Inc. is a biopharmaceutical company in clinical development.
Its current focus is on breast cancer and COVID-19, two of medicine’s most well-funded disorders, which is why it’s one of our top picks for best biotech stock.
Recently, Atossa Therapeutics’s lead drug candidate, Endoxifen, has shown potential for reducing tumor cell activity.
These positive results may bode well for the future of the company and its ability to provide cutting-edge breast cancer treatments.
In addition, the company has a large market cap ($463 million) and a robust drug pipeline to help treat patients.
On September 30, Atossa Therapeutics announced it had begun enrolling patients in the AT-H201 clinical trial in Australia.
This ongoing study aims to develop a nebulized formulation for patients hospitalized with COVID-19 and “long haul” patients with post-infection pulmonary disease.
As a result of this year’s stock offerings, Atossa has amassed around $142 million, which may be enough to keep the company solvent through 2023.
Lineage Cell Therapeutics, Inc. (NASDAQ: LCTX)
Lineage Cell Therapeutics, Inc. is a company that specializes in the development of new cell treatments and prescription therapeutics.
In June, it was announced that the company had granted an exclusive option to Amasa Therapeutics Inc. to use its HyStem technology to create a localized therapeutic approach for solid tumors on pre-negotiated terms.
Its liquid assets of $68.7M are also expected to sustain its operations for the next two years.
Agenus Inc. (NASDAQ: AGEN)
Agenus Inc. is part of a hot section of the biotech business because of its focus on immunotherapy, especially immuno-oncology.
The firm has a robust pipeline of single-agent and combination medicines up and coming with a $600 million market valuation.
Agenus has a market capitalization of $934.79 million and has generated $88.17 million in 2020.
Sesen Bio Inc. (NASDAQ: SESN)
Sesen Bio Inc. develops next-generation antibody-drug combination therapies to treat cancer.
Its shares spiked after the company announced on October 20 that the FDA had granted its request to hold a Type A meeting to discuss issues raised in the complete response letter (CRL) for Vicineum.
VBI Vaccines (NASDAQ: VBIV)
Currently, vaccines are a popular topic within investing circles, and VBI Vaccines has benefited from this.
This immunology firm has promising preclinical vaccines in its pipeline.
It’s also waiting for results from a Hepatitis B vaccination Stage 3 study.
The potential of its Sci-B-Vac remains the biggest reason to consider buying shares of VBI.
If you’re new to investing in biotech, you might want to check out small-cap vaccine companies first, as this industry has withstood the test of time.
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More Top Biotech Stocks Under $5
Regulus Therapeutics Inc. (NASDAQ: RGLS)
Regulus Therapeutics Inc. is a biopharmaceutical company specializing in developing microRNA-targeting therapeutics to treat rare disorders and is currently advancing programs in renal and hepatic diseases.
This is a solid option if you want to give your penny stock portfolio exposure to the pharmaceutical industry.
Over the last four quarters, the company has surpassed the consensus of EPS estimates three times.
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In September, the company announced that the 2021 Lasker-Koshland Special Achievement Award in Medical Science had been awarded to one of its directors, David Baltimore, Ph.D.
Additionally, $15.4 million was raised by Regulus Therapeutics’ at-the-market (ATM) facility, extending its expected cash runway into the fourth quarter of 2022.
The company is currently focusing on developing RGLS8429, its newest treatment candidate for Autosomal Dominant Polycystic Kidney Disease (ADPKD).
Kintara Therapeutics, Inc. (NASDAQ: KTRA)
Kintara Therapeutics, Inc. is a clinical-stage biotechnology firm that focuses on developing and commercializing new cancer therapies.
The company is carrying out several clinical trials on brain tumors and solid tumors.
This year, it widened access to clinical trials in the U.S. by opening new centers for glioblastoma (GBM) patients.
With future dividends excluded, Kintara has around 18,382 outstanding shares of Series C Preferred Stock exchangeable into 15.8 million shares of common equity to date.
EntSera Bio Ltd. (NASDAQ: ENTX)
Entera Bio is a biotechnology company currently conducting clinical trials that attempt to enhance the absorption of large molecules and biologics in the GI tract using its proprietary technology.
Its stock price has risen 248% during the past year, resulting in solid gains for shareholders.
Entera Bio has a market capitalization of $133 million and spent $8.6 million last year, or 6.5 percent of its market value.
Given that this is such a low number, they can potentially fund another expansion.
The company can do this by issuing new shares or possibly taking out a loan.
Voyager Therapeutics (NASDAQ: VYGR)
Voyager Therapeutics Inc. is a clinical-stage gene therapy company working on therapies for severe neurological diseases.
A licensing and partnership agreement between the corporation and Neurocrine Biosciences Inc. covers the research, development, and commercialization of adeno-associated virus-based gene therapy products.
It also has strategic partnership agreements with ClearPoint Neuro Inc. and the University of Massachusetts as well as collaborations with Fujifilm Diosynth Biotechnologies and Thermo Fisher Scientific that help develop its gene therapy initiatives.
Voyager is now working on gene treatments using its unique AAV capsids, which have the potential to be more consistently on-target while reducing the danger of dose-limiting toxicities.
In addition, the company, which has a large preclinical pipeline of second-generation and innovative programs, recently signed an arrangement with Pfizer.
Pfizer will pay Voyager $30 million for transgene-specific access to their innovative AAV capsids, plus option exercise fees, milestone payments, and product royalties totaling up to $600 million.
This deal will almost certainly result in further investments and expansion prospects for the organization.
Enzolytics Inc. (OTC: ENZC)
Enzolytics Inc. is a biotechnology company that develops and commercializes medications based on proprietary proteins to treat a variety of severe infectious diseases, including HIV/AIDS.
The company is working to commercialize the IPF’s licensing rights for Hepatitis C and AIDS treatment.
In addition, Enzolytics has produced a cell line that creates human monoclonal antibodies that target and destroy the HIV virus, as well as clinically proven anti-HIV treatments.
The company recently announced a merger with BioClonetics Immunotherapeutics, which possesses the capability to generate completely human monoclonal antibodies against a variety of infectious diseases.
This move will allow the company to expand its reach while continuing to produce on a massive scale, which could help its value to rise.
What You Should Know About the Biotech Industry
It was innovation that kept biotech penny stock so profitable throughout the greatest economic downturn in decades.
Thanks to the confluence of biological and technological breakthroughs, the number of assets moving into clinical trials continues to rise, and further waves of innovation are on the way.
For example, many biotech companies and the pharmaceutical sector as a whole are now working to combat the COVID-19 pandemic.
Biotechs and pharmaceutical firms have a combined pipeline of more than 250 vaccine candidates and a similar number of medicines.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
Should You Buy Biotech Stocks?
The biotech sector is a growing industry, and for years to come, COVID-19’s biotech tailwinds will continue to blow.
As such, these biotech stocks under $5 can be great opportunities for all traders.
This field is extremely diverse and has a variety of applications worth investing in, including:
- Cell therapy
- Treating skin diseases
- And much more
Remember that if you’re looking for significant returns in the biotech industry, there’s a good chance you’ll stumble upon some investments that will leave you reeling from the losses along the way.
So you should only put up as much money as you can afford to lose and do your due diligence before investing in biotech penny stocks.
Where to Buy Biotech Penny Stocks
Most of the biotech stocks mentioned above can be bought and sold on the New York Stock Exchange and NASDAQ.
There are several excellent investing apps on the market, but Public.com takes a more community-focused approach than others.
In addition to commission-free trading, the platform’s robust social features let you follow other traders and see why they’re buying or selling a stock.
However, not all the stocks within the biotech industry may be available for purchase on these platforms, so you might need to trade over the counter.
Biotech Stocks Under 5 Bucks: Final Words
In the ever-changing world of biotechnology, it’s essential to stay on top of the latest industry news, developments, and trends so you don’t miss out on the next big innovation.
Demand for biotech products will continue to rise, and the companies on our list could potentially profit from it.
Regardless, make sure to do your due diligence before investing in any biotech shares on the penny stock market.
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