Many breakthroughs in modern medicine are made available through developments in biotech, which is why investors want to add this sector to their portfolios. But what are the best biotech penny stocks to help you tap into this explosive market? Read on to find out.
Biotech stocks are highly speculative in nature, which means 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.
Top Biotech Penny Stocks
- Sio Gene Therapies Inc. (NASDAQ: SIOX)
- Mustang Bio, Inc. (NASDAQ: MBIO)
- OPKO Health, Inc. (NASDAQ: OPK)
- Minerva Neurosciences Inc. (NASDAQ: NERV)
- Catalyst Biosciences, Inc. (NASDAQ: CBIO)
- NuCana plc (NASDAQ: NCNA)
Sio Gene Therapies Inc. (NASDAQ: SIOX)
Sio Gene Therapies Inc. is a company that develops medicinal treatments for neurodegenerative diseases through genetic therapy.
The company’s genetic therapy treatments are undergoing clinical trials to ensure efficacy and safety.
Sio Gene can tackle debilitating neurodegenerative diseases, such as gangliosidosis, Parkinson’s disease, and Tay-Sachs/Sandhoff disease.
Over the next five years, revenue is expected to rise at an annualized rate of 89.3%.
The company has grown its earnings by 29% per year over the last five years.
In the rest of the market, a Strong Buy analyst consensus rating for Sio Gene Therapies is expected, with a $7.67 average price target, according to The Street.
Mustang Bio, Inc. (NASDAQ: MBIO)
Mustang Bio, Inc. is a clinical-stage biopharmaceutical company that is looking to develop treatments for hematologic cancers, glioblastomas, and rare genetic diseases by creating genetically produced therapies from medical breakthroughs.
Based in Massachusetts, Mustang Bio is placing its treatments under clinical-stage trials.
This biotech company uses a unique model of in-licensing potential therapies from different institutions to ensure it’s producing 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.
The company has grown its earnings by 29% per year over the last five years.
In the next five years, revenue is expected to rise at an annualized rate of 89.38%.
With a 34% higher cash burn rate in the previous year, it appears that the firm is increasing investment in the business over time.
OPKO Health, Inc. (NASDAQ: OPK)
OPKO Health, Inc. offers diagnostics services and biomedical solutions for all aspects of the healthcare industry.
All the company’s offerings are distributed internationally — significant customers come from countries like the U.S., Ireland, Chile, Spain, Israel, and Mexico.
The company’s wide breadth of diagnostic services and biomedical products is expected to grow in value because it targets multiple diseases and treatment options needed by the healthcare industry.
On the back of solid prospects for RAYALDEE and BioReference platforms, as well as a substantial research and development (R&D) effort, OPK is well-positioned for growth.
The stock has risen to 16.3% compared to an industry increase of 9.2% in a year.
The S&P 500 Index increased 8.7% during the same period.
Minerva Neurosciences Inc. (NASDAQ: NERV)
Minerva Neurosciences Inc. is a clinical-stage biotechnology company that develops candidate therapies to treat central nervous system diseases.
The company has developed proprietary development-stage compounds that may be breakthrough ingredients for the diseases Minerva hopes to treat.
Its lead product is an organic compound called roluperidone — this is a neurologically active compound that can inhibit mood receptors in the brain.
It can mitigate the negative symptoms of patients who have schizophrenia.
The company’s stock soared after the biopharmaceutical firm reported results from a phase 3 study of roluperidone for the treatment of schizophrenia.
As more neurological products get ready for the market, the company can grow from commercial incomes and royalties of its cutting-edge neurological therapies.
Minerva is trading at a price below its estimated fair value ($102.15) by more than 20%.
Revenue is expected to rise at a compound annual growth rate of 68.28% from now until 2021.
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.
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Over five years, Catalyst Biosciences grew its revenue by 68% per year.
That’s well above most other pre-profit companies.
After the U.S. Food and Drug Administration granted fast track designation to the biopharmaceutical company’s treatment for episodic bleeding in factor VII deficiency, Catalyst Biosciences Inc.’s shares advanced.
NuCana plc (NASDAQ: NCNA)
A company headquartered in the United Kingdom, NuCana develops better treatment procedures for patients who have cancer.
NuCana’s innovative, transformative medicines are new cancer treatments currently under clinical trials.
The company uses proprietary medicinal technologies to turn common chemotherapy compounds — called nucleoside analogs — into safer medicines.
Several large stockholder groups control a smaller firm with a market capitalization of $235 million.
According to the Zacks Industry Rank, this medical, biomedical, and genetics company, which is in an excellent position, is seeing significant earnings estimate revision activity.
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Best Biotech Penny Stocks Under $1
- Cellectar Biosciences, Inc. (NASDAQ: CLRB)
- Ardelyx, Inc. (NASDAQ: ARDX)
- Matinas BioPharma Holdings, Inc. (NYSEAMERICAN: MTNB)
Cellectar Biosciences, Inc. (NASDAQ: CLRB)
If you’re looking for the top biotech penny stocks under $1, we recommend starting your search here.
Cellectar Biosciences, Inc. is a New Jersey-based company that pursues potential next-generation cancer treatments.
The particular treatment Cellectar is pursuing is targeted cancer therapies — an exact way of attacking specific kinds of cancers.
The company is currently trying to accomplish this through its proprietary phospholipid drug conjugate, or 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.
And it will 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 $56.523.
Its cash outflow has increased significantly over the last year, with 48% more spending.
This suggests that management is investing in future growth, which is why this biotech penny stock found its way on our shortlist.
Ardelyx, Inc. (NASDAQ: ARDX)
Ardelyx, Inc. is a biotechnology company that develops and markets medicines for kidney and cardiorenal diseases throughout the international healthcare markets.
With its unique drug pipeline development methods, the company has researched new biological mechanisms and drug pathways that have created promising drugs for existing diseases.
A notable example of the company’s drug candidates is called tenapanor.
This small molecule therapy shows potential as a foundational therapy for patients with chronic kidney disease.
Ardelyx, Inc. has a proven history of using scientific breakthroughs to develop practically applicable drugs.
These drugs are on their way to turning Ardelyx into a lucrative therapeutics company.
ARDX’s stocks are expected to rise faster (58.26% per year) than the U.S. biotechnology industry average (47.63%) in 2021.
This is positive news for investors who already have shares of this biotech penny stock.
Matinas BioPharma Holdings, Inc. (NYSEAMERICAN: MTNB)
Through the development of current intracellular therapy deliveries, Matinas BioPharma Holdings, Inc. is becoming a cutting-edge biotechnology company.
The company’s proprietary lipid nano-crystalline platform enables safe intracellular or oral administration of different drug therapies.
Matinas Biopharma Holdings, Inc. might be an intelligent investment following its recent upgrade to a Zacks Rank #2 (Buy).
This increase primarily reflects an improvement in earnings expectations, one of the most important drivers behind prices on the stock market.
What You Should Know About Penny Stocks
Penny stocks are more volatile and less liquid compared to 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.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?
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 we 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.
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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