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The 9 Best Biotech Penny Stocks to Buy For May 2022! 

Noah Edis - March 24, 2022

Many breakthroughs in modern medicine are made available through developments in biotech, which is why investors want to add this sector to their portfolios. What are the best biotech penny stocks to help you tap into this volatile market? Read on to find out.

Biotech stocks are highly speculative in nature, meaning they’re prime candidates for penny stocks.

All it takes is some solid press on a breakthrough treatment to see these stocks surge in value.

That’s one of the reasons why many day traders in the penny stock market prefer the biotech industry over others.

If this all sounds like it could fit your investment style, check out our picks for the top biotech penny stocks to watch out for.

biotech penny stocks

Top Biotech Penny Stocks

Entera Bio Ltd. (NASDAQ: ENTX)

Entera Bio specializes in the oral delivery of large molecules, whereas previous means were only intravenous.

Most large molecules are unable to be absorbed through the gastrointestinal tract and are ultimately dissolved by stomach enzymes before adding any benefit.

Through its technology, the company introduces solutions to these two big problems with oral medication.

It currently has two medications in the pipeline, with one recently entering into phase III status.

Entera is an interesting prospect because it does what no other company has been able to do before.

Shares have ticked up slightly of late as its osteoporosis drug passed phase II testing, but the company still has a ways to go before products reach the market.

However, Entera is working hard to fast-track these drugs into production.

Mustang Bio, Inc. (NASDAQ: MBIO)

Mustang Bio, Inc. is a clinical-stage biopharmaceutical firm looking to develop treatments for hematologic cancers, glioblastomas, and rare genetic diseases.

The company hopes to do so by creating genetically produced therapies from medical breakthroughs.

Based in Massachusetts, Mustang Bio is placing its treatments under clinical-stage trials.

It uses a unique model of in-licensing potential therapies from different institutions to ensure it produces treatments with the best chances of success.

Because Mustang Bio, Inc. places its efforts in ensuring minimized risks for its therapies through in-licensing, the company’s products have the potential to be valuable once it goes past clinical trials.

As with most fledgling biotech enterprises, Mustang’s shares are down as investors wait for clinical results.

With a 34% higher cash burn rate in the previous year, it appears that the firm is increasing investment in the business over time.

Hoth Therapeutics Inc. (NASDAQ: HOTH)

Hoth Therapeutics looks to change the way diseases are managed and treated.

The company is a firm believer that no medication should ever make you sicker than the disease.

In an attempt to rattle the sector, Hoth has no less than ten drugs currently in its pipeline.

Most promising medications look to treat eczema, Alzheimer’s, asthma, acne, lupus, and even Covid-19.

A $16.3 million market cap is helping make all this possible.

Share prices are under $1 per share at present, making this a low-priced place to get involved with biotech.

Should Hoth make waves with even one of these products, share prices could take off overnight.

Acasti Pharma (NASDAQ: ACST)

Acasti Pharma identifies rare and orphan diseases before searching out ways to cure them.

These diseases are either poorly-served or have no currently approved treatments.

The company has three medications in its pipeline, with drugs to treat Subarachnoid Hemorrhage and Ataxia-telangiectasia heading into phase III of clinical testing.

A third treatment for Postherpetic Neuralgia is set to enter phase II shortly.

Acasti Pharma looks to surge ahead with a recent acquisition of Grace Therapeutics to put even more resources at its command.

Like most penny stock biotech firms, Acasti Pharma doesn’t yet have any revenue coming in.

However, the company has a clear path to see gains once one of its products hits the market.

Catalyst Biosciences, Inc. (NASDAQ: CBIO)

Based in San Francisco, Catalyst Biosciences, Inc. is a clinical-stage biotechnology company that develops protease candidates for hemostasis and complement regulation applications.

Specifically, Catalyst Biosciences produces medical products that aim to reorganize disorders in the complement and coagulation systems.

This means better coagulation and complement disorders treatments, which means better growth potential as these protease platforms become commercially available.

In September, the U.S. Food and Drug Administration granted fast track designation to the biopharmaceutical company’s treatment for episodic bleeding in factor VII deficiency.

This solitary event caused Catalyst Biosciences Inc.’s shares to increase for a portion of the fall.

Shares may be back down, but investors have a keen eye on Catalyst moving forward.

Eton Pharmaceuticals Inc. (NASDAQ: ETON)

Eton Pharmaceuticals searches the world over for meaningful products to introduce to patients with rare and often untreated diseases.

The company has a strong source of revenue through five products already on the market.

As a result, Eton Pharmaceuticals is one of the few biotech penny stocks actively making money.

Five more medications are brewing in the pipeline, with some already nearing product approval status.

Without a specific medical focus, Eton has a seemingly unlimited number of areas it can look to.

Share prices are starting to climb again after Eton saw huge financial gains in the fourth quarter.

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Best Biotech Penny Stocks Under $1

Cellectar Biosciences, Inc. (NASDAQ: CLRB)

Cellectar Biosciences is a New Jersey-based venture that pursues potential next-generation cancer treatments.

The company is currently trying to accomplish this through its proprietary phospholipid drug conjugate (PDC) platform.

As Cellectar Biosciences, Inc. continues to develop its PDC platform, the subsequent-generation cancer therapy will be a welcome addition to the market.

PDC could also be a boost for the firm to grow in the sector.

Cellectar Biosciences Inc. can be a solid investment option if you’re searching for stocks with high yields.

According to calculations, the stock price prediction for 2026 is $56 per share.

Its cash outflow has increased significantly over the last year as the company pushes toward approval.

biotech penny stocks

Brickell Biotech, Inc. (NASDAQ: BBI)

Brickell Biotech looks to create innovative prescription medications to treat autoimmune and inflammatory diseases.

The company already has one medication approved for use in Japan, targeting Primary Axillary

Hyperhidrosis.

Brickwell expects to submit this medication for approval in the United States in the first half of this year.

A revenue stream from Japan helps Brickwell invest in other technologies, and the company has three other medications in pre-clinical trials.

Share prices are low now, but approving a drug in the U.S. soon should be a boon across the board.

Ibio Inc. (NYSEAMERICAN: IBIO)

Ibio Inc. owns the FastPharming manufacturing system to enable speedy, scalable, and safe development of biopharmaceuticals.

This tech allows for faster protein production in plants, ultimately leading to quicker drug trials.

The company uses FastPharming in its endeavor to approve new treatments for fibrotic and infectious diseases alongside immuno-oncology.

Although medications are still in the pipeline, Ibio has generated revenue through sales of its manufacturing process.

With a market cap of over $110 million, Ibio is dealing with big figures to get its products approved as early as possible.

Share prices are just 50 cents at present but have plenty of room to grow from both technology and medications in the future. 

What You Should Know About Penny Stocks

Penny stocks are more volatile and less liquid than mid-cap or large-cap stocks, which means more price movement within the same period.

Also, biotech stocks can be even more volatile compared to other penny stocks with a similar market cap and trade volume.

Remember, though, while penny stocks can increase in price quickly, this also means that they can also lose value quickly.

Like any investment, make sure to perform proper due diligence before trading penny stocks.

Also, if you’re new to trading penny stocks, we recommend being extra cautious.

What You Should Know About Biotech

Biotechnology is a field of study that develops treatments and products by leveraging cellular and biomolecular processes.

Biotech encompasses a wide range of applications that extend beyond traditional pharmaceuticals, such as antibiotics and vaccines.

Other applications include plant-based biofuels, cosmetics, food processing technologies, and even microorganisms used for cleaning up oil spills.

Should You Buy Biotech Stocks?

There will always be a need for breakthrough treatments for untreatable diseases.

Even though penny stocks are characteristically volatile, the industry itself is relatively stable.

While the biotech penny stocks we’ve listed have shown potential and tested histories, no single investment provides guaranteed returns.

Where to Buy Biotech Stocks Under $1?

Most of the biotech penny stocks listed above are available on major exchanges like the NASDAQ or the NYSE.

If you’re looking for an online broker, our go-to platform is Public.com.

Other online brokers include Webull and Robinhood — you can even buy some biotech stocks through Cash App.

However, not all penny stocks are available on those platforms, so you may need to trade on an over-the-counter market to get your hands on them.

If you can find the right biotech penny stock, it might be worth the extra effort.

Biotech Penny Stocks: Final Words

Biotech stocks can be a lucrative investment if you know what to look for.

However, the volatility of penny stocks means you should do serious research before picking up any shares.

This is especially true for biotech stocks, as they are highly speculative, making them exceptionally volatile — even buy penny stock standards.

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Noah is a Canadian copywriter with interest in technology, AI, VR, and clean-tech. When he's not working, you'll likely find him playing sports or reading.