Biotech or healthcare stocks are traditionally seen as potential defensive plays that help limit your losses or keep your profitability intact during a crisis in the market.
Given the market condition and the overstretched levels that we see now, biotech penny stocks can provide a comfortable corner to take refuge in.
However, in this context, we don’t only mean penny stocks sold via pink sheets or OTC but reasonable mid and micro caps that are in an oversold zone.
There are many such biotech penny stocks which the capability to deliver extraordinary gains when the market uptrend kicks off.
Here is a list of some of the hot biotech penny stocks that you could bet on.
These are not as risky as the typical penny stocks, but they can surely deliver double-digit returns.
Moreover, the list of biotech penny stocks to watch will help you create hedges to preserve capital.
In short, these are some of the best biotech penny stocks that can help you limit losses despite the discounted pricing given the high level of liquidity in these.
Unlike the typical penny stocks, these are not illiquid counters.
The valuations are incredibly cheap due to oversold market conditions.
In fact, these hot biotech penny stocks provide you the most interesting entry points in the market.
Though in the current market scenario, these stocks have gone down to penny stock valuation, you must remember that they have fairly strong business fundamentals.
As the economic condition improves and demand scenario becomes favorable, these low-priced biotech stocks can pretty much take the lead in the journey back to recovery.
Moreover, defensives, by nature offer better chances of preserving your capital and creating greater value for your investment in general.
What Are the Best Biotech Penny Stocks to Buy?
Here is the list and the analysis of 12 of the best biotech penny stocks to watch:
- Raptor Pharma
- Lifevantage Corporation
- Accelerate Diagnostics
- AEterna Zentaris
- Aastrom Bio
- Pluristem Therapeutics
- Opko Health
- Agenus Incorporated
Foremost in the list of hot biotech penny stocks that you could pursue, this is essentially a biodefense firm.
As the name suggests, PharmAthene is involved in the making of counter medications that can help tackle damages done by chemical/biological weapons.
One of the easiest examples to understand what this biotech penny stock does would be Anthrax.
Well, we all know that Anthrax is a biological weapon of mass destruction.
Now PharmAthene specializes in creating counter effective alternatives that can be used in defense against Anthrax and many other chemical weapons.
They also make countermeasures against nerve gases.
Now we come to the technicalities of the stock.
The question is why should this stock feature prominently in your list of biotech penny stocks to watch?
Well, just last year the stock has risen over 90% and jumped over 30% in a matter of three days last October.
Therefore, undoubtedly, this is one of those stocks that can bring in tremendous gains within a very short period.
To add icing to the already delicious cake, PharmAthene’s quarterly numbers are very encouraging.
The company’s net income went up over 100% on a sequential basis.
If you are looking for the best biotech penny stocks, there is no way you can miss this one.
The stock is trading at a considerable discount to its fair value levels, and the room for upside is seen significantly higher going forward.
One of the major catalysts helping the upmove in this biotech penny stock is undoubtedly the potential for success that its refined fill oil pill promises.
The fish oil pill, known as Vascepa, is slated to record steep upmove.
This is likely to be predominantly on the basis of the outcome of the trials being undertaken to ascertain the efficacy of Omega 3 treatment for patients with high triglycerides.
The hypothesis is whether Omega 3 is successful in reducing instances of cardiovascular attacks in patients who are also taking statins.
If the outcome is successful, its 130% growth trajectory recorded over last one year could pretty much take off on a northward ride.
What’s further interesting about this penny stock is that the potential of failure of Vascepa is already priced.
So compared to the upside if the results are favorable, the downside is almost non-existent.
The relative discount at which this biotech penny stock is trading is another major advantage.
3. Raptor Pharma
One of the best biotech penny stocks, Raptor Pharma, is among the top performers on Nasdaq.
With the market capitalization exceeding 767 million, the stock’s 52-week prices ranged between $4.03-9.01.
Essentially engaged in early development stage products, the stock has seen some massive movement in the recent past.
In the past one year this biotech penny stock has scaled up 80% higher, and in just 6 months, it has registered 24% gains.
Some positive rating by many leading rating agencies also has added to the upmove in the stock price.
However, the room for upside is significantly higher.
This is another much talked about biotech penny stocks to watch out for.
The company has specialization in cancer treatment, and the next growth catalyst is likely to the telomerase inhibitor, imetelstat.
This product is being developed jointly along with J&J.
Some trials of imetelstat have yielded encouraging results in treating conditions like myelodysplastic and myelofibrosis.
Both companies are now targeting taking forward its clinical trials forward.
However, the risk with buying this biotech penny stock is that Geron’s future stock movement is deeply associated with imetelstat’s future.
The stock is in focus because imetelstat is likely to report blockbuster sales once the trial phase is over.
5. Lifevantage Corporation
Vying for the top slot in the list of the hot biotech penny stocks, Lifevantage in predominantly associated with skin care products.
The company makes, conducts research and produces various types of skin care products and also nutraceutical supplements.
Their long line of anti-ageing creams is also quite popular.
Interestingly, the company has diversified its revenue flow.
Apart from this, the other source of its income is diametrically different.
They deal with canine health supplements.
Overall the stock price movement has been rather encouraging, and the opportunities going forward in the future show a northward bias.
So, this one can easily classify as a top biotech penny stock to bet on.
6. Accelerate Diagnostics
The next stock on our focus list of best biotech penny stocks would be Accelerate Diagnostics.
This company is working in a niche on a highly sensitive area, and that is the biggest growth driver.
Accelerate is working closely with the U.S. Center for Disease Control and Prevention.
The mission is to identify bio-pathogens as fast as possible to reduce the instances of antibiotic resistant bacteria.
They are also in the process of developing special and unique antimicrobial coatings for different kinds of devices used for bio-analytics.
The stock movement has been responding to the overall growth prospects of the stock.
Though valuations are at slightly depressed levels, it provides a very lucrative entry point in the stock.
As a sharp trader, you have to look at maximizing your profit and the amount of time and money that you are investing in it.
However, it is a low-risk stock but not completely without risk, so you must not hold the stock for long.
7. AEterna Zentaris
A biotech penny stock that is working towards drug development, the stock has risen over 100% in the past 1 year.
What is particularly interesting about this counter is that it has risen over 30% in just 6 months and clocked 4% plus gains in last one month.
These numbers clearly highlight the strong growth path that this drug developing major.
The stock price has corrected to some extent in the last few weeks, and this creates interesting and profitable entry points in the stock.
Not just that AEterna features very prominently in biotech penny stocks to watch for, but its valuations at the moment.
The next biotech penny stock on our radar is Inhibitex.
This is a biopharma company and is known for very volume based trade in the stock.
Even in the face of declining market trends, this stock rallied good 30% in just one month.
On a year on year basis, this penny stock has clocked over 100% gains and is currently trading close to its 52-week high above $3 level.
Irrespective of the company missing its EPS target in its financial results, volumes continue to be rather high.
This indicates that surely the investors and market know of some impending development that the stock is expected to gain from.
9. Aastrom Bio
This stock is essentially one of the most promising biotech penny stocks.
A prominent participant of this list of the hot biotech penny stocks, the company is mainly into developing regenerative treatment methodologies.
The focus is mainly on incorporating different types of cell repair therapies to help diseased and damaged cells to recuperate.
Given the promising business model and the niche segment that Aastrom is servicing into, the stock has clocked close to 80% gains in simply 12 months.
The contrast is well borne out when you now compare this with Nasdaq’s 1-year gain of 19%.
The stock has gained that much, almost 19% in just the past three months to be precise.
Strong business fundamentals, sharp northward movement of the stock price and inexpensive valuations makes it a top contender for hot biotech penny stocks that you must look at investing.
These types of stocks are not really penny stocks like the ones trading over OTC or with pink sheets.
There is relatively significant room for upside still in this stock.
10. Pluristem Therapeutics
This biotech penny stock has a 52-week low of 98 cents but let that not confuse you about the growth prospects in this counter.
A prominent contender of the best biotech penny stocks, its stock price has already grown 3 times the 52-week lows.
In less than a month, the stock has risen over 30%.
Compared to Nasdaq’s 19% 2016 gains, this counter is up a whopping 150% almost.
The extent of gains highlights some unique elements of this biotherapeutics company.
It highlights the investment potential and growth prospects of the company that is working towards commercialization of treatment for many degenerative, life-threatening and autoimmune diseases.
This biotech firm is based in Israel and is dependent o the adult stromal cells for its treatment procedure more than the stem cells.
11. Opko Health
Opko Health is a specialty healthcare firm, and the reason why it figures in the list of the hot biological penny stocks is the phenomenal growth fundamentals coupled with strong gains prospects that it brings forth your investment portfolio.
The company is engaged in multiple healthcare initiatives.
These include product discovery, development of vaccines and their commercialization and also the introduction of many diagnostic technologies and the various imaging systems.
The company is based in Miami, and its key markets are in South and Central America.
These include names like Mexico and Chile.
An extremely inexpensive stock, its 52-week low is around $2 and the 52-week high hovers close to $5.
Apart from the strong 50% + gains that the stock has clocked in the past 12 months, the company’s business fundamentals are also robust.
Opko has reported revenue growth of close to 10% on a quarterly basis.
It can well be a strong contender for quick gains in your investment portfolio.
12. Agenus Incorporated
The list of the biotech penny stocks to watch for is an extremely diversified one.
You have hardcore healthcare plays to research and development firms.
Broadly it covers almost kind of biotech penny stocks that you could bet in.
Therefore the last but not the least, interesting penny stocks that you could train your guns on is Agenus.
This is yet another biopharma company that is working tirelessly on immune-oncology.
Not only is this a noble initiative but also an extremely promising niche in the medical sector.
The company’s work in the field of heat shock protein vaccines for treating cancer and other infectious diseases is particularly noteworthy.
Overall we can conclude that the quest for hot biotech penny stocks to invest throws up a very dynamic mix of different kinds of biotech and biopharma plays.
Though these are not really penny stocks in the strict sense of the words, these are some of best biotech penny stocks because of the depreciated valuations and huge upside potential.
Most of the counters have already risen 100% in 12 months, and there is an expectation of further gains.
This is only possible when the gains in this biotech penny stocks are supported by robust business fundamentals.