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The 10 Best Biotech Stocks Under $5 To Buy For June 2024! 

Best Biotech Stocks Under $5

Many biotechnology stocks trade for less than $5 per share but get little technical analysis from investors who focus on larger-cap 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

Biotech Penny Stock #1: Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)

Xeris Biopharma Holdings, Inc. (XERIS) is a biopharmaceutical company that develops and sells stable injectable and infusible drug formulations.

They use novel technology platforms to address unmet medical needs.

The company creates treatments for Cushing’s syndrome, hypoglycemia, hypercortisol, and paralysis. The firm is based in Chicago, Illinois.

 biotech stocks under $5

In its latest quarterly report, the company increased its full-year revenue guidance to $155M-$165M million. Its previous year’s closing was $110 million. 

The CFO also announced that the firm is on track to achieve cash flow breakeven by the end of this financial year.

The firm reported that it has received a $6 million milestone payment from Amgen, which is developing an ultra-concentrated, ready-to-use, subcutaneous injection of TEPEZZA.

TEPEZZA was developed as part of the product profile decided in the research collaboration and option agreement between the two firms, which was agreed on in November 2022.

Biotech Penny Stock #2: 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 December, the company connected with Swiss healthcare giant Roche Holding signing a collaboration deal with two of the latter’s units. 

The deal itself is to further push towards the management and commercialization of OpRegen, the company’s leading pipeline program for diseases such as advanced dry age-related macular degeneration (dry AMD) with geographic atrophy (GA).

This sudden surge created heavy interest in Lineage, which received a $50 million upfront payment for the deal and expects another $620 million if certain clinical milestones are met.

Roche is a big fish that is putting its money in a smaller penny stock company, giving Lineage a good potential for the years to come. Its liquid assets of $68.7M are also expected to sustain its operations for the next two years.

biotech stocks under $5

The main sources of income for Lineage include licensing fees, royalties, revenue from joint ventures, and research funding.

According to its most recent financial report, for the three months that concluded on June 30, 2023, total revenues were around $3.23 million, which is 30% lower than the quarterly revenue for the same period last year.

However, this is significantly higher than its first quarter revenue report of $2.39 million.

Additionally, as of June 30, 2023, marketable securities, cash, and cash equivalents totaled $45.9 million, which is anticipated to support ongoing operations through Q4 2024.

The cash runway will give Lineage ample time to achieve several near-term catalysts that could result in significant share price appreciation. For investors with a higher risk tolerance, LCTX stock could be a very compelling play.

Biotech Penny Stock #3: Geron Corporation (NASDAQ:GERN)

Geron Corporation is a biotechnology company that develops and sells cancer treatments for advanced cancer patients that inhibit telomerase. Its treatments fight the spread of stem cells in blood cancer such as hematologic myeloid malignancies. 

Geron’s telomerase inhibitor, imetelstat, uses Nobel Prize-winning science to alter the underlying drivers of disease. It focuses on patients whose anemia continues to grow even after other treatments. The drug has a market size of about $1.2 billion.

Phase 2 results for imetelstat show that its benefits can continue for upto 88 weeks. For comparison, the effects of the closest rival of the drug last for only 33 weeks.

Best biotech stocks under $5

Geron recently announced FDA acceptance of NDA for imetelstat for treating transfusion dependent anemia in patients with lower risk myelodysplastic syndromes (LR MDS) as well.

All of this action has led to a lot of investor interest in the drug and Geron. The stock is currently trading under $2 but could be a strong candidate for the future.

Biotech Penny Stock #4: Northwest BioTherapeutics (OTCMKTS: NWBO)

Northwest Biotherapeutics is a biotechnology company that develops immunotherapy products to treat cancer.

The company’s products are designed to be more effective than current treatments, without the toxicities associated with chemotherapies, and on a cost-effective basis. 

Its major product is DCVax, a proprietary technology platform used to develop therapeutic product candidates

It uses expertise in the biology of dendritic cells, which are a type of white blood cell that activates the immune system to treat cancer

Northwest Biotherapeutics has submitted Investigational New Drug (IND) applications for FDA approval to conduct clinical trials for prostate cancer, brain cancer, ovarian cancer, and multiple other cancers.

Best biotech stocks under $5

In recent clinical trials, 13% of all trial participants treated with DCVax lived more than 5 years after diagnosis, compared with 5.7% in the comparison group. 

This has piqued interest in the firm, and the stock has grown more than 50% in the last six months.

Biotech Penny Stock #5: Ardelyx, Inc. (NASDAQ:ARDX)

Ardelyx, Inc. develops several treatments for patients with IBS, heart diseases, kidney diseases, and metabolic acidosis. 

The firm is headquartered in Waltham, Massachusetts.

Ardelyx’s Ibsrela drug is the one that is making headlines. It is meant for treatment of patients with IBS.

The market for this drug is nearly $3 billion. 

Ibsrela works differently from its competitors and is being seen as the only option for patients for whom other treatments are not working.

biotech stocks under $5

The active ingredient of this drug is also useful for kidney patients, which is another big market in the US and has nearly 0.55 million patients

The stock has more than doubled itself this year and is still going strong. Its last three quarters have also seen strong positive revenue numbers.

More Top Biotech Stocks Under $5

Biotech Penny Stock #6: 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 pharm industry. Over the last four quarters, the company has surpassed the consensus of EPS estimates three times.

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.

 

biotech stocks under 5

 

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).

In May 2023, the firm advanced RGLS8429 to the second cohort in the Phase 1b MAD clinical trial for the treatment of ADPKD..

The Phase 1b MAD study is a double-blind, placebo-controlled trial evaluating the safety, tolerability, pharmacokinetics and pharmacodynamics (PK/PD) of RGLS8429 in adult patients with ADPKD.

The study will evaluate RGLS8429 treatment across three different dose levels, including measuring changes in polycystins, height-adjusted total kidney volume (htTKV), cyst architecture, and overall kidney function

Investors seem to be optimistic about the company’s prospects as well. With a market cap of just $24 million, this could be a biotech penny stock to watch in the coming months.

Biotech Penny Stock #7: 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.

In January 2022, Kintara received a grant from the National Research Fund and Cancer Foundation Luxembourg to support its research towards the mechanism of action of VAL-083 on glioblastoma.

VAL-083 is the top program in its pipeline, reaching Phase 2 in several clinical trials against its many cancer-related activities, including brain tumor and ovarian cancer.

 

Best biotech stocks under 5

 

The grant should give the company some leeway into its studies but it needs more than this to have its value move from its all-time low. Earlier in 2021, 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. 

Together with its recent Equity Purchase Agreement for Up to $20 Million with Lincoln Park Capital Fund, LLC, Kintara has some financial runway to keep executing on its plan.

Kintara’s focus on brain tumors gives it a clinical edge that could make it a key player in the industry if its drugs prove to be effective. For now, it is one of the best biotech penny stocks to watch.

Biotech Penny Stock #8: 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 stayed flat during the past year. Entera Bio has a market cap of $19 million and spent $13.51 million last year. 

The lead drug candidate of Entera’s EBP05 formulation, EB613 is currently being developed as the first once-daily oral anabolic therapy for the treatment of osteoporosis. 

In a 6-month, 161-patient, placebo-controlled Phase 2 study, EB613 produced rapid dose-proportional changes in biochemical markers and increased Bone Mineral Density (BMD) in postmenopausal women with low BMD osteoporosis.

Best biotech stocks under 5

 

Osteoporosis affects an estimated 200 million women worldwide and often leads to fractures, disability, and mortality. There are currently no approved oral treatments for the condition in the United States.

If you’re looking for biotech penny stocks with upside potential, Entera Bio Ltd. (NASDAQ: ENTX) is definitely worth considering.

Biotech Penny Stock #9: 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. 

 

biotech stocks under $5

 

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 its 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.

It also announced its priority treatment pipeline, concentrating on gene therapies for GBA1 Parkinson’s and SOD1 ALS as well as tau antibodies for Alzheimer’s disease.

During it’s recent Q2 report, pipeline treatment programs for Friedreich’s Ataxia and Huntington’s disease showed positive early data.

Voyager believes that its technology can cross the blood-brain barrier, making it unique in the gene therapy space. This is a significant advantage, as most other companies are working on ways to get around this obstacle.

This is an important step forward, as it means that the company is one step closer to starting clinical trials. With a market cap of $287 million, Voyager Therapeutics is definitely a biotech penny stock to watch in the coming months and years.

Biotech Penny Stock #10: Verastem, Inc. (NASDAQ:VSTM)

Verastem Oncology (Verastem Inc) is a clinical-stage biopharmaceutical company that develops medicines to treat certain cancers.

It develops novel small-molecule drugs that inhibit critical RAS signaling pathways that promote cancer cell survival and tumor growth.

In August 2023, Verastem announced that it had entered into a discovery and development collaboration with GenFleet Therapeutics.

Best biotech stocks under $5

The firm is currently in Phase II clinical development of Avutometinib potassium for ovarian cancer.

The company has a strong balance sheet, with the company’s cash balance totaling $183 million as of Q2 2023, bolstered by receipts of gross proceeds of $97.8 million from its June 2023 public offering

Its stock has grown by more than 20% in the current year.

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 pharma firms have a combined pipeline of more than 250 vaccine candidates and a similar number of medicines.

The Biotech industry changes in value according to the information that comes out regarding their products and pipelines. Much of their value relies on stock catalysts, especially how their collaborations and their clinical trials work.

Biotech companies live and die by FDA approvals and rejections, which can help spike stock value during approval periods and drop values deeply during trial rejections.

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

  • Biofuels

  • Agriculture 

  • 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.

Biotech companies are more prone to volatility compared to other stocks, mostly due to their stock catalysts. During periods of lull, biotech companies keep their values until stock market changes push them up or down.

So you should only put up as much money as you can afford to lose and do your due diligence before investing in biotech stocks.

biotech stocks under 5

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 stock market investing apps, 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. Alternatively, you can buy from investment apps like Robinhood or WeBull.

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: Final Words

In the ever-changing world of biotechnology, it’s essential to stay on top of the latest stock market 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 high risk biotech shares on the penny stock market.

 

Biotech Penny Stocks FAQ

Here are some of the most frequently asked questions online about biotech penny stocks.

What Is Biotech Stock?

A biotech stock is a stock related to a company that deals with the development of drugs and diagnostics technologies for disease treatment. Most biotech companies grow in value as they successfully develop treatment procedures, with stock growths reliant on breakthroughs, financial grants, and public-private partnerships.

Is It Good To Invest In Biotech?

Biotech is a great industry to invest in if you want a consistent stock that doesn’t need a lot of monitoring.  At the same time, you want to ensure that you get the freshest stock market news with biotech firms, as investors sell off at the first sign of trouble. 

What Is The Best Biotech Stock To Buy Right Now?

Among biotech penny stocks, Orgenesis Inc is the best on the list right now.  Orgenesis has promising potential because of having pipeline programs that are ready for partnerships with different healthcare providers. In fact, its second-quarter earnings report showed a revenue increase of $7.2 million.

Why Are Biotechnology Stocks Falling?

Biotech stocks can fall at a moment’s notice due to industry or company information known as stock catalysts. While most firms have investment growths, sales numbers, and year-on-year growth reports as their catalysts, biotechnology firms rely on clinical trial results and FDA INDs.

Is Biotech The Next Big Thing?

Publicly traded companies in the biotech industry are racing to resolve not only the COVID-19 virus but also many chronic issues that can provide long-term relief to sufferers, including age-related disorders, cancer, and regenerative therapies, making it one of the next big things in the market.

 

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Jessica is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock market education.